INTRODUCTION OF MANAGEMENT

What is Management

Management is a universal phenomenon. It is a very popular and widely used term. All
organizations - business, political, cultural or social are involved in management because it
is the management which helps and directs the various efforts towards a definite purpose.

According to Harold Koontz, “Management is an art of getting things done through and with
the people in formally organized groups. It is an art of creating an environment in which
people can perform and individuals and can co-operate towards attainment of group goals”.

According to F.W. Taylor, “Management is an art of knowing what to do, when to do and see
that it is done in the best and cheapest way”.

Management is a purposive activity. It is something that directs group efforts towards the
attainment of certain pre-determined goals.

“Management” is the process of working with and through others to effectively achieve the
goals of the organization, by efficiently using limited resources in the changing world. Of
course, these goals may vary from one enterprise to another. E.g.: For one enterprise it may
be launching of new products by conducting market surveys and for other it may be profit
maximization by minimizing cost.

Management involves creating an internal environment. It is the management which puts

into use the various factors of production. Therefore, it is the responsibility of management
to create such conditions which are conducive to maximum efforts so that people are able
to perform their task efficiently and effectively.

It includes ensuring availability of raw materials, determination of wages and salaries,

formulation of rules & regulations etc. Therefore, we can say that good management
includes both being effective and efficient. Being effective means doing the appropriate task
i.e., fitting the square pegs in square holes and round pegs in round holes. Being efficient
means doing the task correctly, at least possible cost with minimum wastage of resources.

Management can be defined in detail in following categories:

 Management as a Process
 Management as an Activity
 Management as a Discipline
 Management as a Group
 Management as a Science
 Management as an Art
 Management as a Profession

Roles and Skills of a Manager

Management roles may pertain to running a particular department, a group of departments

or a company as a whole. This is a list of 10 of the most common roles in management:
1. Leader: A manager may lead their staff by providing employees with a vision or long-
term goal to achieve. Employees rely on managers to provide direction and decide on
courses of action. An effective manager inspires team members to reach both short-
term and long-term goals, for their own professional development and for the growth
of the company.
2. Spokesperson: A manager may serve as an advocate of the company or
organisation's interests. By communicating positive messages about the company,
managers inform the general public about an organisation's overarching goals and
philosophy. Managers work to promote the organisation and may assist the public
relations team in marketing the company's products to potential stakeholders or
investors, while attending events and giving speeches.
3. Entrepreneur: Managers often solve problems and brainstorm new business ideas
for a company or a department. Using their vision, they engineer the change they
want to see in the company by developing new projects or modifying existing
projects. Managers may be passionate about their company and open to taking
calculated risks to develop better and effective business solutions.
4. Trainer: As a manager, you may help train new hires and existing employees. This
may involve facilitating on-site training and development opportunities, or leading
training sessions. Managers may also provide hands-on supervision to the
employees as they learn new skills. When there is an introduction or updates on new
technologies, managers help employees learn and adjust to changes.
5. Representative: A manager may be a representative of the company in formal
situations and meetings. This may require them to appear at community and social
events such as a lunch with a client, an employee's wedding or a charity fundraiser. It
is important for a manager to represent the company in a positive manner at such
events.
6. Liaison: A manager may serve as the connection between different departments in a
company and also with external organisations that affiliate themselves with a
company. Managers may also network on behalf of the company to build contacts in
the community or within an industry. Managers can act as messengers for executive
leadership, such as the Chief Executive Officer (CEO), and deliver information to
employees on their behalf.
7. Monitor: Managers may monitor the productivity and well-being of their employees.
They can keep track of what is being done and look for anything interfering with
productivity. Managers also stay up-to-date with news and information relevant to
the company and its employees.
8. Policy enforcer: A manager may implement company-wide policies and make
employees accountable for their actions. When violations occur, they may discipline
employees. This includes enforcing rules and regulations to ensure that similar
misconduct or deviations do not occur in the future.
9. Mediator: Managers can resolve and control internal or external conflicts. This may
include conflicts between two employees, a customer complaint or conflicts
between employees and administrators. Managers may act similar to a judge in
resolving problems and stopping minor issues from escalating.
 10. Resource allocator: Managers often allocate funds and resources within their office
or department, such as equipment, in the most efficient and cost-effective way. They
may plan the most effective way to complete projects within deadlines and set
budgets. Managers may assign projects to employees and monitor those projects to
see if they have to reassign work as specific needs arise.

Being a successful manager requires you to master a number of skills. Whether the role is
an entry-level supervisory job or an advanced one, managerial positions demand impeccable
technical skills and strong conceptual and interpersonal skills. While the importance of
various skills differs between job roles and organisations, the basic set of skills required to
perform well as a manager remain the same.

Throughout your managerial career, employers may expect you to communicate abstract
ideas clearly, use and manage time efficiently and help your team come up with solutions
and well-rounded decisions. A few skills you may use through your career as a manager are:

1. Technical skills: You usually learn these skills during your formal education in college
and may use them extensively depending on your job role. These skills help you
oversee the performance of other members on your team.
2. Interpersonal skills: As you move ahead in your career as a manager, you may rely on
other professionals to set and achieve goals for your organisation or company.
Interpersonal skills help you develop healthy professional relationships with people,
foster values such as trust and teamwork, encourage improvement and address
issues that arise along the course of various projects.
3. Communication skills: All managerial roles require good oral and written
communication skills that are fit for both formal and informal situations. To ensure
proper communication, you may require good command over languages and
grammar and the ability to draft error-free documents and messages.
4. Time management skills: As a manager, you may prioritise tasks for yourself and
your team members, to focus on important items first. While conducting meetings, it
is essential to stick to the agenda so that meetings start and end on time.
5. Decision making and problem-solving skills: Managers may analyse problems and
take important decisions to identify and select the best possible solutions. It is
essential to develop these skills so you can visualise different outcomes of a
business situation and advise your team or company on the best route to take.
6. Conceptual skills: Managers in top positions may be responsible for deciding what is
best for the company or organisation over the course of time. This requires the ability
to reason and analyse various situations and think creatively to arrive at solutions.

Universality of Management

Managing is necessary whenever one needs to get things done. It may be called the practice
of consciously and continually shaping organizations. Every organization has people who
are assigned the responsibility of serving the organization to achieve its goals. Those people
are called managers. No organization can carry on its business without management, which
is in turn supervised by managers.
Management is a universal phenomenon in the sense that it is a common and essential
element in all enterprises. Every group effort requires setting objectives, making plans,
handling people, co-coordinating and controlling activities, achieving goals and evaluating
performance directed towards organizational goals.

These activities relate to the utilization of 4 types of inputs or resources from the
environment—human, monetary, physical, and informational. Human resources include
managerial talent, labour, and so forth. Monetary resources are the financial capital
organization uses to finance both ongoing and long-term operations.

Physical resources include raw materials, office and production facilities, and equipment.
Information resources are data and other kinds of information utilized by the organization.
The job of the manager is to combine and coordinate these resources to achieve the
organization’s goals.

The concept of universality of management has several implications.

1. First, managerial skills are transferable from one person to another.

2. Secondly, management skills can be transferred from one organization to another.
3. Thirdly, managerial skills can be important and exported from one country to another.
4. Fourthly, this principle of universality serves as the basis of a general theory of
management -a set of common principles.

Some experts support the universality of management on the group that whatever the
situation and whatever the level of management, the management function is common. Any
manager must, one time or the other, perform the same managerial functions.

A set of common principles or a general theory of management underlies all organizations.

F.W. Taylor said that the fundamental principles of scientific management apply to all
human activities from our simplest individual acts to work of our great corporations.

Management - A Science or an Art

Management as a Science

Science is a systematic body of knowledge pertaining to a specific field of study that

contains general facts which explains a phenomenon. It establishes cause and effect
relationship between two or more variables and underlines the principles governing their
relationship. These principles are developed through scientific method of observation and
verification through testing.

Science is characterized by following main features:

1. Universally acceptance principles - Scientific principles represents basic truth

about a particular field of enquiry. These principles may be applied in all
situations, at all time & at all places. E.g. - law of gravitation which can be applied
in all countries irrespective of the time. Management also contains some
fundamental principles which can be applied universally like the Principle of Unity
 of Command i.e., one man, one boss. This principle is applicable to all type of
organization - business or non-business.
2. Experimentation & Observation - Scientific principles are derived through
scientific investigation & researching i.e., they are based on logic. E.g., the
principle that earth goes round the sun has been scientifically proved.
Management principles are also based on scientific enquiry & observation and
not only on the opinion of Henry Fayol. They have been developed through
experiments & practical experiences of large number of managers. E.g., it is
observed that fair remuneration to personal helps in creating a satisfied work
force.
3. Cause & Effect Relationship - Principles of science lay down cause and effect
relationship between various variables. E.g., when metals are heated, they are
expanded. The cause is heating & result is expansion. The same is true for
management, therefore it also establishes cause and effect relationship. E.g.,
lack of parity (balance) between authority & responsibility will lead to
ineffectiveness. If you know the cause i.e., lack of balance, the effect can be
ascertained easily i.e., in effectiveness. Similarly, if workers are given bonuses,
fair wages they will work hard but when not treated in fair and just manner,
reduces productivity of organization.
4. Test of Validity & Predictability - Validity of scientific principles can be tested at
any time or any number of times i.e., they stand the test of time. Each time these
tests will give same result. Moreover, future events can be predicted with
reasonable accuracy by using scientific principles. Principles of management can
also be tested for validity. E.g., principle of unity of command can be tested by
comparing two persons - one having single boss and one having 2 bosses. The
performance of 1st person will be better than 2nd.

It cannot be denied that management has a systematic body of knowledge but it is not as
exact as that of other physical sciences like biology, physics, and chemistry etc. The main
reason for the inexactness of science of management is that it deals with human beings and
it is very difficult to predict their behaviour accurately.

Since it is a social process, therefore it falls in the area of social sciences. It is a flexible
science & that is why its theories and principles may produce different results at different
times and therefore it is a behaviour science. Ernest Dale has called it as a Soft Science.

Management as an Art

Art implies application of knowledge & skill to trying about desired results. An art may be
defined as personalized application of general theoretical principles for achieving best
possible results. Art has the following characters -

1. Practical Knowledge: Every art requires practical knowledge therefore learning of

theory is not sufficient. It is very important to know practical application of
theoretical principles. E.g., to become a good painter, the person may not only be
 knowing different colour and brushes but different designs, dimensions, situations
etc. to use them appropriately. A manager can never be successful just by obtaining
degree or diploma in management; he must also know how to apply various
principles in real situations by functioning in capacity of manager.
2. Personal Skill: Although theoretical base may be same for every artist, but each one
has his own style and approach towards his job. That is why the level of success and
quality of performance differs from one person to another. E.g., there are several
qualified painters but M.F. Hussain is recognized for his style. Similarly, management
as an art is also personalized. Every manager has his own way of managing things
based on his knowledge, experience and personality, that is why some managers are
known as good managers (like Aditya Birla, Rahul Bajaj) whereas others as bad.
3. Creativity: Every artist has an element of creativity in line. That is why he aims at
producing something that has never existed before which requires combination of
intelligence & imagination. Management is also creative in nature like any other art. It
combines human and non-human resources in useful way so as to achieve desired
results. It tries to produce sweet music by combining chords in an efficient manner.
4. Perfection through practice: Practice makes a man perfect. Every artist becomes
more and more proficient through constant practice. Similarly, managers learn
through an art of trial and error initially but application of management principles
over the years makes them perfect in the job of managing.
5. Goal-Oriented: Every art is result oriented as it seeks to achieve concrete results. In
the same manner, management is also directed towards accomplishment of pre-
determined goals. Managers use various resources like men, money, material,
machinery & methods to promote growth of an organization.

Thus, we can say that management is an art therefore it requires application of certain
principles rather it is an art of highest order because it deals with moulding the attitude and
behaviour of people at work towards desired goals.

Management as both Science and Art

Management is both an art and a science. The above-mentioned points clearly reveal that
management combines features of both science as well as art. It is considered as a science
because it has an organized body of knowledge which contains certain universal truth. It is
called an art because managing requires certain skills which are personal possessions of
managers.

Science provides the knowledge & art deals with the application of knowledge and skills. A
manager to be successful in his profession must acquire the knowledge of science & the art
of applying it. Therefore, management is a judicious blend of science as well as an art
because it proves the principles and the way these principles are applied is a matter of art.
Science teaches to ‘know’ and art teaches to ‘do’. E.g., a person cannot become a good
singer unless he has knowledge about various ragas & he also applies his personal skill in
the art of singing. Same way it is not sufficient for manager to first know the principles but
he must apply them in solving various managerial problems that is why, science and art are
not mutually exclusive but they are complementary to each other (like tea and biscuit, bread
and butter etc.). The old saying that “Manager are Born” has been rejected in favour of
“Managers are Made”. It has been aptly remarked that management is the oldest of art and
youngest of science. To conclude, we can say that science is the root and art is the fruit.

Overview of Management Functions

1. Planning

It is the basic function of management. It deals with chalking out a future course of action &
deciding in advance the most appropriate course of actions for achievement of pre-
determined goals.

According to Koontz, “Planning is deciding in advance - what to do, when to do & how to do.
It bridges the gap from where we are & where we want to be”. A plan is a future course of
actions. It is an exercise in problem solving & decision making.

Planning is determination of courses of action to achieve desired goals. Thus, planning is a

systematic thinking about ways & means for accomplishment of pre-determined goals.
Planning is necessary to ensure proper utilization of human & non-human resources. It is all
pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties,
risks, wastages etc.

2. Organizing

It is the process of bringing together physical, financial and human resources and
developing productive relationship amongst them for achievement of organizational goals.

According to Henry Fayol, “To organize a business is to provide it with everything useful or
it’s functioning i.e., raw material, tools, capital and personnel’s”. To organize a business
involves determining & providing human and non-human resources to the organizational
structure. Organizing as a process involves:

 Identification of activities.
 Classification of grouping of activities.
 Assignment of duties.
 Delegation of authority and creation of responsibility.
 Coordinating authority and responsibility relationships.

3. Staffing

It is the function of manning the organization structure and keeping it manned. Staffing has
assumed greater importance in the recent years due to advancement of technology,
increase in size of business, complexity of human behaviour etc.
The main purpose of staffing is to put right man/woman on right job i.e., square pegs in
square holes and round pegs in round holes. According to Kootz & O’Donell, “Managerial
function of staffing involves manning the organization structure through proper and effective
selection, appraisal & development of personnel to fill the roles designed un the structure”.
Staffing involves:

 Manpower Planning (estimating man power in terms of searching, choose the person
and giving the right place).
 Recruitment, Selection & Placement.
 Training & Development.
 Remuneration.
 Performance Appraisal.
 Promotions & Transfer.

4. Directing

It is that part of managerial function which actuates the organizational methods to work
efficiently for achievement of organizational purposes. It is considered life-spark of the
enterprise which sets it in motion the action of people because planning, organizing and
staffing are the mere preparations for doing the work.

Direction is that inter-personnel aspect of management which deals directly with influencing,
guiding, supervising, motivating sub-ordinate for the achievement of organizational goals.
Direction has following elements:

 Supervision- implies overseeing the work of subordinates by their superiors. It is the

act of watching & directing work & workers.
 Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal
to work. Positive, negative, monetary, non-monetary incentives may be used for this
purpose.
 Leadership- may be defined as a process by which manager guides and influences
the work of subordinates in desired direction.
 Communications- is the process of passing information, experience, opinion etc.
from one person to another. It is a bridge of understanding.

5. Controlling

It implies measurement of accomplishment against the standards and correction of

deviation if any to ensure achievement of organizational goals. The purpose of controlling is
to ensure that everything occurs in conformities with the standards. An efficient system of
control helps to predict deviations before they actually occur.

According to Theo Haimann, “Controlling is the process of checking whether or not proper
progress is being made towards the objectives and goals and acting, if necessary, to correct
any deviation”.
According to Koontz & O’Donell “Controlling is the measurement & correction of
performance activities of subordinates in order to make sure that the enterprise objectives
and plans desired to obtain them as being accomplished”. Therefore, controlling has
following steps:

 Establishment of standard performance.

 Measurement of actual performance.
 Comparison of actual performance with the standards and finding out deviation (if
any).
 Corrective action.

Management Styles- Japanese, American, and Indian

In order to understand the members of a particular society, it is required to have some idea
of their daily lives, their tradition, their beliefs, their way of looking at the world, their value
system. Values determine what is right and what is wrong for an individual, for a group of
people, for the people living in a particular nation. Individual’s value system decides the dos
and the don’ts in their life. It forms the foundations of their characters. Depending on their
value system, in a given situation they behave in a particular manner.

The culture of various countries differs. There may be some similarity, but they are not the
same. The values, beliefs and   notions of Japan differ that of America, China or India. An
organization is a part of the society. Therefore, as far as an organization in a particular
nation is concerned, its value system also differs from another organization situated in
some other country.

Kola, Kaizen and Knowledge define the DNA of American, Japanese and Indian Management,
respectively.

Japan:

 Dedicated to service: Japanese believe in hard work being totally dedicated and thus
providing best quality products to the customers. It indicates that like Indians they
treat work as worship. They believe in kaizen i.e., continuous, small improvements.
 Macro vision: Japanese value system is such that they are more oriented to look at
things from macro perspective. Japanese are patriots by nature. They love their
country and are honest and dedicated towards it. Therefore, when a Japanese joins
an organization, he is totally dedicated and gives his best output because he knows
this output will help in nation building, will contribute in economic growth and
development of nation. Thus, individual priority, goals and objectives become the
second criteria for the Japanese.
 Emphasizes spiritualism: Another characteristic of Japanese is that they are inclined
towards spirituality. They practice meditation, attend lectures on spiritualism, believe
in intuition and six sense. Thus, they lead a peaceful life which enhances their
productivity level.
 Professional life kept away from personal life:  Japanese also believe not to carry
office work at home and external problems at home. They follow a custom. Before
entering their home, they keep their shoes outside and enter inside bare footed to
 indicate that external stress and strain should be kept outside. External disturbances
should not create disharmony in their personal life.
 Business ethics: Japanese believe in business ethics. They provide products and
services to the customers and never ready to cheat them. Thus, they provide service
to the community and fulfil social responsibility. They do business fairly. They earn
profit but not at the cost of quality.
 Team spirit: Japanese value system emphasizes on team spirit. In an organization or
in society team spirit needs to be developed. It creates harmony and positive
synergy. Therefore, team output becomes better compared to individual output. They
believe in joint decision making. It means employees should be involved in the
decision-making process along with management. Sometimes they might know
better than management. Therefore, joint decision making will lead to better
decision.
 Holistic approach: Japanese are ever ready to spend on the training of the
employees, as they believe that the employees will be with the organization for the
long time. They have holistic concern for employees.
 Self-management: Japanese culture also give importance on self-discipline and self-
control. The individuals are expected to control their ego, anger, hatred, greediness
and maintain service attitude. It emphasizes more to give then to take from
professional life.
 Japanese value system: They are courteous and generous people. Japanese value
system emphasizes not to express one’s opinion directly. Japanese have 2 concepts
about the opinion, one is ‘honne’ (real opinion) and other is ‘tatemae’ (public opinion).
It is flexible in approach and emphasizes in agreeing with people around as much as
possible.
 Non interruptions: Japanese also insist to avoid interrupting when someone is
thinking or speaking. They do not believe in using mobile phones in trains unless it is
allowed to do so as it disturbs the fellow passengers.
 Informal relationships: People in Japan believe in informal relationships. For
example, in an organization employees can communicate directly with higher
authorities.
 Long term relationships: Japanese look at things from long term perspective. They
give the best service not only to nation but also the whole world. They provide best
quality service to the customer. They believe in continuous improvement and ever
ready to work hard with sincerity and dedication. They know due to this attitude;
customers will be loyal to them. They employees also feel that they are not mere
employees, but a part of organization and work accordingly.
America:

 Materialistic: As compared to Japan, American value system differs to great extent.

American are more materialistic in their approach as compared to Japanese. Now a
days many Americans are getting attracted towards spiritualism, because they have
realized the emptiness of mere materialism. Generally, Americans are focused to
earn more and more money and enjoy all the luxuries in life. They are achievement
oriented, interested to attain challenging goals, ambitious and hard working.
  Relationship based in give and take:  American culture believes in developing
relationship of give and take in work life. They regard that relationship should be
mutually beneficial. They believe the relationship to be formal in professional life.
 Believe in non-interference: Americans are not much inclined to the family. After
becoming adult, individuals can take the decision on their own without bothering
about their parents.
 Equity and co-operation: They believe in equity and co-operation. They are focused in
building the team spirit to attain organization goals and objectives. But while
encouraging the team spirit, individual’s performance is also rewarded.
 Generally preferred top-down approach: As far as decision making is concerned,
generally major decisions are taken at the top and communicated at the lower level
to take action.
 No job security: Americans believe that if today, an employee’s performance is good,
he must be rewarded, if tomorrow he is not required or his performance is not up to
the mark he need to be sacked. It indicates they do value job security unlike
Japanese.
 Loyal to the profession: Americans are more loyal not to the organization but to the
profession. If they get better opportunity, they will leave the organization and join
somewhere else.
India:

 Co-operation: Indian philosophy instead of killer instinct and tough competition

focuses more towards co-operation.
 Family oriented, more emotional:  The value system of India is oriented towards
family. Even grownups while taking any decision consult with seniors. Indian ethos
emphasizes to respect the elders specially the parent and teachers
 Humility and respect for others: Indian ethos emphasizes on humility and respect for
others. Therefore, getting passes Sunil Gavaskar, Sachin Tendulkar commented
‘Heroes are heroes forever, you cannot really get passed them’. This in Indian value
system.
 Respect to others: It focuses to show respect to others. Others means not only the
fellow human beings but objects as well.
 Self-management: Indian Ethos believe that self-management is the essence of
management. Before managing others effectively, a person should know how to
manage himself. Then only he can manage others effectively.

Management as a Function

Functions of Management - Planning, Organizing, Staffing, Directing & Controlling

Management has been described as a social process involving responsibility for economical
and effective planning & regulation of operation of an enterprise in the fulfilment of given
purposes. It is a dynamic process consisting of various elements and activities. These
activities are different from operative functions like marketing, finance, purchase etc. Rather
these activities are common to each and every manger irrespective of his level or status.
Different experts have classified functions of management. According to George & Jerry,
“There are four fundamental functions of management i.e., planning, organizing, actuating
and controlling”.

According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, & to
control”. Whereas Luther Gullick has given a keyword ‘POSDCORB’ where P stands for
Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting
& B for Budgeting.

But the most widely accepted are functions of management given by Koontz and O’Donell
i.e., Planning, Organizing, Staffing, Directing and Controlling.

For theoretical purposes, it may be convenient to separate the function of management but
practically these functions are overlapping in nature i.e., they are highly inseparable. Each
function blends into the other & each affects the performance of others.