Management: An Overview

Management is the act of getting people together to accomplish desired goals and objectives using
available resources efficiently and effectively. Since organizations can be viewed as systems,
management can also be defined as human action, including design, to facilitate the production of
useful outcomes from a system. This view opens the opportunity to manage oneself, a pre-requisite to
attempting to manage others.

Definition of Management: The Management Process

Management functions include: Planning, organizing, staffing, leading or directing, and controlling an
organization (a group of one or more people or entities) or effort for the purpose of accomplishing a
goal.

There are several different resource types within management. Resourcing encompasses the
deployment and manipulation of:

 Human resources

 Financial resources

 Technological resources

 Natural resources

Characteristics of Management

It is safe to say that an effective manager is a key ingredient for business success. A manager’s job is to
ensure good management in an organisation. This is achieved by learning the ins and outs of
management. Thus gain deeper insights into management we need to learn about the basic
characteristics of management.

Goal-oriented process

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An essential aspect of management is to combine individual efforts and direct them towards achieving
organisational goals. These goals differ from organisation to organisation. For example, an organisation
can have a profit motive whereas a social work organisation might have a goal of eradicating illiteracy
among children. Management recognises these goals and aims to fulfil them.

Pervasive

Management is a requirement and essential for the functioning of all kinds of organisations- social,
economic or political. Without management, the processes of an organisation would be chaotic and
unordered. Further, it is equally essential for organisations across all countries. However, the only
difference lies in the how management is implemented within an organisation.

Multidimensional

Management has three dimensions:

Work management: Every organisation exists for completion of some work. This work varies from
producing clothes in clothing sector to treating patients in hospitals. Management looks at this work as
goals to be achieved and works towards these goals. Further, this is done in terms of problems to be
solved, decisions to be made, plans to be established, budgets to be prepared, responsibilities to be
assigned and authority to be delegated.

Management of people: Another dimension of management is concerned with getting work done from
people, by assigning work to worthy employees who can work effectively towards the realisation of
organisational goals. This is achieved by ensuring that the strength is highlighted and the weakness is
driven out of the equation. It further has two dimensions- a) dealing with people as individuals with
diverse needs and behaviours and b) dealing with individuals perceiving them as a part of a wider group
of people.

Management of operations: As every organisation aims at the completion of work, they also have a
particular product or service to provide with respect to their domain of operation. Note that this is met
with the help of a production process. Management also looks after a production process of an
organisation that transforms the input with the help of technology required into the output for
consumption. Interestingly, this is linked to both management of work and people.

Continuous Process

We now know that there are various functions of management. These are- planning, organising,
directing, staffing and controlling. As a matter of fact, a manager performs all these functions
simultaneously. Although these functions are separate, management is concerned with performing all of
them simultaneously all the time. Consequently, management is a dynamic and continuous process.

Group Activity

An organisation consists of a large number of individuals having different reasons and purposes to join.
Again these individual differ based on their needs and behaviours. However, it is important to realise

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that these diverse individuals work together towards the achievement of the organisational goals.
Management diverts the individual efforts towards the right direction. Further, effective management
enables all the individuals to grow and develop as their needs and opportunities change.

Dynamic Function

An organisation has to adapt to the environment in order to succeed. Thus management is dynamic in
nature and adapts to the ever-changing social, economic and political conditions. A famous example of
this is how McDonald’s had to change its menu to serve and emerge as a major fast food giant in the
Indian market.

Intangible Force

Management cannot be touched or it isn’t tangible. However effective management can be easily felt.
Evidently, if there is order instead of chaos within an organisation, the employees are happy and the
organisational goals are being organised it can be easily said that there exists good management.

Management Levels: An Overview

Most organizations have three management levels:

Low-level managers;

Middle-level managers; and

Top-level managers.

These managers are classified in a hierarchy of authority, and perform different tasks. In many
organizations, the number of managers in every level resembles a pyramid.

Below, you’ll find the specifications of each level’s different responsibilities and their likely job titles.

Top-level managers

The board of directors, president, vice-president, and CEO are all examples of top-level managers.

These managers are responsible for controlling and overseeing the entire organization. They develop
goals, strategic plans, company policies, and make decisions on the direction of the business.

In addition, top-level managers play a significant role in the mobilization of outside resources.

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Top-level managers are accountable to the shareholders and general public.

Middle-level managers

General managers, branch managers, and department managers are all examples of middle-level
managers. They are accountable to the top management for their department’s function.

Middle-level managers devote more time to organizational and directional functions than top-level
managers. Their roles can be emphasized as:

Executing organizational plans in conformance with the company’s policies and the objectives of the top
management;

Defining and discussing information and policies from top management to lower management; and
most importantly

Inspiring and providing guidance to low-level managers towards better performance.

Some of their functions are as follows:

Designing and implementing effective group and intergroup work and information systems;

Defining and monitoring group-level performance indicators;

Diagnosing and resolving problems within and among work groups;

Designing and implementing reward systems supporting cooperative behavior.

Low-level managers

Supervisors, section leads, and foremen are examples of low-level management titles. These managers
focus on controlling and directing.

Low-level managers usually have the responsibility of:

Assigning employees tasks;

Guiding and supervising employees on day-to-day activities;

Ensuring the quality and quantity of production;

Making recommendations and suggestions; and

Upchanneling employee problems.

Also referred to as first-level managers, low-level managers are role models for employees. These
managers provide:

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Basic supervision;

Motivation;

Career planning;

Performance feedback; and

Staff supervision.

Functions of Management

Management has been described as a social process involving responsibility for economical and effective
planning & regulation of operation of an enterprise in the fulfillment 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”.

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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’DONNEL 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.

Functions of Management

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.

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 its 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.

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,

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complexity of human behavior etc. The main purpose o staffing is to put right man 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.

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 inert-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
 Motivation
 Leadership
 Communication

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.

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

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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.

CURRENT ISSUES IN ENTREPRENEURSHIP

Corporate social responsibility (CSR) refers to strategies that companies put into action as part of
corporate governance that are designed to ensure the company’s operations are ethical and beneficial
for society.

Categories of CSR

Although corporate social responsibility is a very broad concept that is understood and implemented
differently by each firm, the underlying idea of CSR is to operate in an economically, socially, and
environmentally sustainable manner.

Generally, corporate social responsibility initiatives are categorized as follows:

1. Environmental responsibility

Environmental responsibility initiatives aim at reducing pollution and greenhouse gas emissions, and the
sustainable use of natural resources.

2. Human rights responsibility

Human rights responsibility initiatives involve providing fair labor practices (e.g., equal pay for equal
work) and fair trade practices, and disavowing child labor.

3. Philanthropic responsibility

Philanthropic responsibility can include things such as funding educational programs, supporting health
initiatives, donating to causes, and supporting community beautification projects.

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4. Economic responsibility

Economic responsibility initiatives involve improving the firm’s business operation while participating in
sustainable practices – for example, using a new manufacturing process to minimize wastage.

Business Benefits of CSR

In a way, corporate social responsibility can be seen as a public relations effort. However, it goes beyond
that, as corporate social responsibility can also boost a firm’s competitiveness. The business benefits of
corporate social responsibility include the following:

1. Stronger brand image, recognition, and reputation

CSR adds value to firms by establishing and maintaining a good corporate reputation and/or brand
equity.

2. Increased customer loyalty and sales

Customers of a firm that practices CSR feel that they are helping the firm support good causes.

3. Operational cost savings

Investing in operational efficiencies results in operational cost savings as well as reduced environmental
impact.

4. Retaining key and talented employees

Employees often stay longer and are more committed to their firm knowing that they are working for a
business that practices CSR.

5. Easier access to funding

Many investors are more willing to support a business that practices CSR.

6. Reduced regulatory burden

Strong relationships with regulatory bodies can help to reduce a firm’s regulatory burden.

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Social Concerns of an Entrepreneur

Protection of the environment

The environment has over the years become increasingly common within the business organization
agenda, promoted by a consumer interest in the environment impact of business actions.

 Business enterprises considers now they impact the environment (how their activities influence the
environment) and how the government influences their activities.

 Most business enterprises participate in activities that ensure the following

 That the environment is polluted as little as possible

 That they adopt preventive measures (gives due consideration to the environment in the early stages
of the activity)

 That raw materials are used economically.

Participation in community work: -

 The immediate areas play a very importance part in the creation of an organization, its reputation, and
its continued operation. The business enterprise are concerned with active participation in community
development programmes like welfare programmes for the aged, supporting of activities by providing
educational, recreational, cultural, health, transportation, welfare and housing facilities and welfare and
welfare programmer for the handicapped and undernourished in the community.

Gender issues

 Business organization also strive to participate in gender based issues which is a historical problem.
They do this by ensuring that they employ both men and women in their organization and that the
promotions at work are based on merits not on the fact that one is a woman or a man. Since women in
activities that will ensure that they ensure that hey are empowered i.e creating training programmes for
women and providing funds to the women to start small businesses. They also participate in programs
of gender based violence and female genital mutilation by funding such programmes.

Provision of quality goods and services.

 The business enterprises are also concerned with the quality of goods and services that they provide
to the market. They ensure the goods and services are safe and are of the correct standard and not
defective. They do this by conducting ample research before introducing the product into the market.

They also ensure that any complaints by the consumers are attendant to and remedies made. Most
business enterprise also educate consumers on their products and they also avoid misleading adverts.

Ethical Business Practices

 Ethics is a major factor in the social responsibility of business. Ethical philosophy if a branch of
philosophy that is concerned with the judgments of the rightness or wrongness of an act. The aim of

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professional or business ethics in the protection of professionalism, human rights, integrity of character,
and good service. In general, the issues considered in such code of ethics consists of;

a) Honest – in this respect, it is necessary that facts are presented fairly and accurately. Claims made
about products or services, even in the

b) Fairness – every one whom you deal with should be given appropriate consideration. This includes
workers, customers, suppliers and others with whom the organization interacts.

a. Loyalty- this is in terms of loyalty to other stakeholders i.e customers,

b. Workers, n suppliers’ e.g.

c) Confidentially – this is especially important for service industries such as banks. It is important that
transactions with customers are respected and protected so that they are not disclosed to third parties.

d) Trust- there should be a mutual trust where the owners of a business should have proper trust in
their customers, while the customers should also have enough trust in the organization. Without trust,
no meaning and lasting relationship can develop.

e) Courage- this refers to the need to treat others with respect, be incorruptible in business operations,
even when it means losing the business.

Technology issues

E-Commerce

 Communication – is the art of sending and receiving messages or information from one person to
another via a channel  Information- this is a product of data which has been given a structure and put
into a context. In order for people to design and make what is needed to solve a problem, they first
need information.

 Technology – this is the generation of knowledge and process to develop systems that solve problems
and extend human capabilities. Other words, people create technology to solve problems and to make it
possible to do new things. E.g people needed a way to keep cold during how weather so, they invested
the refrigerators

 Communication technology is the knowledge, tools, machines and skills that to into communicating. In
other words communication technology is all the things people make and do to send and receive
messages. Telephones, radios, television and computers are all examples of technologies that help us
communicate with one another. In addition to communicating with other people, communication
technology can be used to communicate with machines and to help machines communicate with each
other. Information is the knowledge and skill needed in order to take a particular action.

Globalization Trends

 Globalization is an international phenomena which sweeping across all continents and every sector of
business. The political barriers to business are being eliminated. The electronic media and
communication have reduced the distances putting the customer at the center of business.

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 Business is going global due to the reasons of globalization and development of state of art
technologies, infrastructural facilities and reducing time and every for transaction.

 Entrepreneurs are taking up new ventures in their quest from global size organization, profit and large
markets beyond the national boundaries of the entrepreneur. With the result, entrepreneur is also
going global size organizations; result entrepreneurship is also going global thus making manufacturing,
marketing and management that are represented by different nationalities. The situation calls for
different strategies in countries not as diverse as South Asia countries, USA, Kazakhstan, Uzbek or Kenya.

 The globalization process started worldwide in 80s, the entrepreneurs are moving to different
countries and starting new ventures. Many organizations are founded, organized and operated one the
principle that the globe is their field of operations. Modern communication and transport systems are
helping to go global; initially small business ventures were based on local domestic markets.
International business was consideration domain of large organizations. This perception is fast changing.
Trade has been conducted on international scale for many years. Establishment of manufacturing
organizations, and development of business by licensing, arrangements management contracts, joint
ventures, mergers, acquisitions, subsidiaries and strategic partnerships

 The availability of cheaper inputs for the production such as raw materials, infrastructure, trained
labour force are taking entrepreneurs to different counties to give global competitive advantage to their
proposed ventures. Large markets  Going global can generate greater revenue and greater operating
margins. With large funds, it is possible to purchase sophisticated equipment, update designs and adopt
global manufacturing qualities. An international entrepreneur would like to go to the countries where
there are economic developments and where the scale of economies can be attained.

Economic Trends

 Some of the economic factors which promotes and hinders entrepreneurship includes.

1, Capital: capital is the most important perquisite to establish an entrepreneur one, machine of another
to create his business enterprise. The stage of economic development in a country plays and important
role while considering establishment of new venture. To some capital refers to funds available for
investment; to others it refers to equipment and machinery used by entrepreneurs and managers to
produce goods and services; and others still, it refers to postponed consumption. All these refer to the
term capital.

2. land- according to economies the term land refers to all farm land and all natural resources provided
by nature. Therefore agricultural land, forests, rivers lakes, seas and all natural resources are according
to economists, land, forests, rivers, lakes, seas and all natural resources area according to economies to
economists land. It should be realized that the amount of land is finite and can, therefore, not be
appreciably increased.. Land as a factor of economic production explains the existence of a variety of
business including furniture business and food business.

3. Labour – this refers to all the physical and mental effort exerted in the production of goods and
services. Unlike land, labour can be substantially expanded by increasing both its quantity and or
improving its quality. Quantity of labour can be increased by higher birthrates and or/ improving its

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quality its quality. Quantity of labour can be increased by higher birthrates and / or from inflow of
people from other countries. The quantity on other had can be improved through better health of
labourers, better education and vocational training of people or combining labour with more and better
quantities of the other factors of production.

4. entrepreneurship – the process of combining land, labour and capital in some one way in order to
produce pertinent goods and services is called entrepreneurship. One factor that bothers many
potential business owners is how to determine in advance whether one has the qualities of a successful
entrepreneur. Although it is difficult to predict to predict whether a particular individual will succeed or
not if he ventures into business.

Consumer Trends

 A consumer is the end user of a product offered by an organization. Understanding consumer

behaviour is of paramount importance because and entrepreneur first have to identify consumer needs
and then develop a product that will satisfy those needs if the firm to succeed in the long –term. There
are certain factors that influence consumer behaviour that the present and future entrepreneurs have
to consider.

These factors are divided into;

o Internal influences

o External influences

Internal influences

 Needs and motives- a need is simply a deprivation of something of value. When a need is sufficiently
aroused it becomes a motive. That is, a motive is an inner state that directs and individual towards the
goals of satisfying a felt need.

 Perception- perception refers to the way an individual vies the world around him. An individual’s
perception of an object will determine how he or she will react towards that object or event.
Entrepreneurs acquire the purchase and consumption experience they apply to the future related
behaviour.

 Attitudes – an attitude is a leaned tendency to respond to product, brand of company in a way that is
consistently favourable or unfavorable. The more favorable a consumer’s attitude towards a product,
the higher the usage rate and vice-versa

 Personality- personality refers to rather enduring traits or factors that affect the manner in which an
individual deals with hi immediate environment.

Entrepreneurs are interested in personality because they believe it affects consumer behaviors

External factors

i) Culture- culture is a learned behaviour and results of behaviour whose component elements are
shared and transmitted by members of a particular society. The entrepreneurs who hope to avoid costly
mistakes should familiarize themselves with the culture and sub-cultures of people they plan to market
their products to.

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i) Social class- a social class is defined as an open aggregate of people with similar social ranking. Class
differences are important to entrepreneurs because certain product is more likely to appeal to one class
that another.

iii) Family- the family has an important influence on the consumption behaviour of an individual. Quite
often each consumption family member has specific roles in the buying process.

iv) Purchasing power- this is people’s ability to buy goods and services according to economists whether
people buy a product or not largely depends on their incomes. Price of the present product and prices of
substitute products and complimentary goods among others.

Challenges Posed by Emerging Trends

 There is a challenge in changing the type of business activity to engage in.

 It is also difficult to attract additional capital especially for those who want to venture in small
businesses due to the preference accorded to large enterprise owners by the loaning institutions

 Entrepreneurs also have the challenge of sustaining and maintaining their businesses

 Human resource is the one who can make best use of other resource to convert raw materials into
finished products. If no proper resource to convert raw materials into finished products. If not properly
managed, the enterprise may not be able to realize its objectives

 Marketing is also a challenge because if no proper marketing strategy is not formulated, then the
business enterprise may collapse. Marketing is the lifeline of any firm.

 Developing and entrepreneur culture is also very difficult due to difficult of many cultural activities
that inhibit entrepreneurship.

Management of the Challenges

 One should identify a business opportunity and develop a business idea and do several evaluation of
the business idea before engaging into business

 To sustain the business avoid excessive optimism, prepare good marketing plans, make good cash
projection, keep familiar with the market and be sensitive to stress points in the business

 To attract an additional capital ensures you have a proper business plan that can enable the lenders to
lend you money.

 An entrepreneur should ensure that there are effective measures to develop, maintain and motivate
his employees in order to manage his human resource effective

 The entrepreneur should find it necessary to update the technology processes and product as per the
need of that time.

 An entrepreneur should ensure he/she consider all the factors that affect consumer consumption
before establishing which marketing strategy to use.

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