Week 1: Introduction to Management

Students’ Learning Outcomes

● Understand the characteristics of management;

● Conceive the importance of management;

● Distinguish the levels and functions of management.

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Meaning and Characteristics of Management

Meaning of Management

The term ‘management’ refers to a set of functions, processes and techniques designed to get things done
in an organised setting through the efficient utilisation of resources to achieve organisational activities.
Here below are some basic definitions of management:

“Management is to forecast, to plan, to organise, to direct, to coordinate and to command others’

activities”. -Henri Fayol

“Management is a process by which managers create, direct, maintain and operate purposive
organisation through systematic coordinated and cooperative human efforts”. – McFarland

“Management is a social and technical process that utilises resources, influences human action and
facilitates change in order to accomplish organisational goals”. - Theo Haimann and William Scott

“Management is guiding human and physical resources into dynamic organisational units which attain
their objectives to the satisfaction of those survived and with a high degree of morale and sense of
attainment on the part of those rendering services”. - American Management Association

“Management is a function, a discipline, a task to be done and managers practice this discipline, carry
out the functions and discharge those tasks”. - Peter Drucker

“Management is the creation and maintenance of an internal environment in an enterprise where

individuals, working in groups, can perform efficiently and effectively towards the attainment of group
goals. It is the art of getting the work done through and with people in formally organised group”. -
Harold Koontz and Cyril O’Donnell.

“Management is the art of getting things done by others”: A critical evaluation

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 This statement is often made to define management. On the face of it, the statement seems to be correct
and sufficient because the purpose of management is to obtain performance by getting things done by
others, in the organisation (Hodgkinson & Sparrow, 2002). A careful analysis of this statement, however,
would point out its inadequacies and fallacies about management, especially the following:

a) that managers do not have an organisation; any work earmarked for them in the organisation;
b) that in order to get things done, managers use or may use objectionable methods and unethical
practices;
c) that things get done automatically, without utilising organisational resources; and
d) that management is an autonomous entity (or activity) and is not influenced by the environment.

In the modem context, therefore, management is no more a mere art of getting things done by others;
rather, management has developed as a body of systematised knowledge. Authors and thinkers of
management regard it as:

• Management is a set of activities performed by managers and may include decision-making,

communication, coordination, creation, and maintenance of interpersonal relations with other
working under their command (Dudin et al., 2019).
• Management is a process of getting things done by performing functions such as planning,
organising, staffing, directing, and controlling. In addition, the process of management also
involves the use of a variety of skills, approaches and techniques on the part of managers for
managing efficiently (Woods, 2017).
• Management is a force in an organisation which directs and coordinates the activities of its
members purposefully. It helps in creating a healthy internal environment so that everyone may
perform towards the accomplishment of organisational objectives (Kun, 2018).
• Management knowledge is scientific and systematic and consists of principles, concepts, and
techniques for managing an organisation. This knowledge has been developed through
observation, research and analysis, and experience of managers and has universal applicability
(Sumardi & Fernandes, 2020).

Characteristics of Management

Management has the following chief characteristics:

1. Management is a process. Management is a process of getting things done by others in an

organisation. As a process, management involves the performance of several functions, such as
planning, organising, staffing, directing, and controlling (Sumardi & Fernandes, 2020).
2. Management is goal-oriented. Management is a purposeful activity. Application of management
knowledge is to seek better and more economical results for realising organisational goals of
profitability, competitive advantage, and effectiveness. It is imperative that the organisational
goals are well-defined and properly understood by managers at the various levels of the
organisational hierarchy (Kun, 2018).
3. Management is a social process. Management is a social process because it deals with people. In
order to be effective, a manager must understand the behaviour of employees both as individuals

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 and as members of a group. The basic responsibility of a manager is to get things done by others.
To do so, a manager has to develop inter-personal relations with the subordinates working under
his command (Sumardi & Fernandes, 2020).
4. Management involves the use of authority. To get things done, the manager must perform many
functions. A manager can perform these functions efficiently only if he has enough authority. He
gets such authority from the managers working at higher levels. He can make plans, organise
activities and direct and control them by exercising authority (Dudin et al., 2019).
5. Management is multi-disciplinary. While managing human and physical. resources of the
organisation, a manager uses knowledge of disciplines such as economics, psychology, sociology,
mathematics and statistics, etc. knowledge of these allied disciplines helps him in getting better
results, making correct decisions and understanding human behaviour in an objective and holistic
manner (Dudin et al., 2019).
6. Management is a combination of science and art. Management has an organised body of
knowledge consisting of well-defined concepts, principles, functions, and techniques which have
universal applications. So, management is treated as a science. Application of the management.
knowledge requires skills and experience on the part of a manager. Since the skills acquired by a
manager are his personal possession, management is viewed as art also. Thus, management theory
relates to science and practice with art (Woods, 2017).
7. Management is a dynamic process. The knowledge of management is used to manage
organisations which operate in an extraordinarily complex and dynamic environment. In order to
be effective, a manager has to continuously study existing mechanisms and processes, modify
them or fine-tune them in accordance with the requirements of the organisational situations.
8. Management is a continuous process. An organisation is a continuing entity and has to deal with
problems and events on a continuous basis. This necessitates a continuous application of
management knowledge for solving recurring problems in an organisation (Woods, 2017).
9. Management involves the efficient utilisation of resources. Knowledge of management is applied
for seeking efficient and effective use of available; resources, reduce costs, improve productivity.
Thus, by using management knowledge, systems of production and distribution are made cost-
effective (Woods, 2017).
10. Management knowledge has universal application. The knowledge of management is universal in
the sense that it can be applied to business enterprises in as much as to military, governmental,
educational, cultural, and religious set-ups. It is, however, to be noted that results of such
applications vary from situation to situation depending on a variety of factors (Sumardi &
Fernandes, 2020).

Nature of Management

In order to understand the basic nature of management, one has to analyse it in terms of science, art,
profession and administration.

Management as a Science

As a science, management has the following characteristics (Sumardi & Fernandes, 2020):

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 a) Management has a body of systematised knowledge consisting of well-defined concepts,
principles, and techniques with-wide applications. Managers need this organised body of
knowledge for making decisions in complex and dynamic situations.
b) Management knowledge has been developed and formulated on the basis of observation,
experimentation, research and analysis.
c) Management knowledge is scientific because it is based on a cause-and-effect relationship.
d) Management knowledge is conditioned and well organised. It can be transferred and taught by
one person to another.
e) Management concepts, principles and techniques are general and have universal application.
These can be applied in every economy, society, and organisation. It is, however, to be noted that
management principles are not as rigid as the principles of physics and chemistry. This is because
management deals with human behaviour which cannot be predicted exactly.

Management as an Art

As an art, the knowledge of management has the following characteristics (Springborg, 2018):

a) Management knowledge is not abstract in nature. It has a practical application. The concepts,
principles and techniques of management are used to solve problems that arise in an organisation.
The quality of results from the application of management knowledge will, however, depend upon
the capability of a manager.
b) Application of management knowledge calls for innovativeness and creativity on the part of a
manager to get better results and higher efficiency. As an artist, a manager needs to discover new
ideas, to develop foresightedness, and use imagination.
c) Regular application and repetitive use of management knowledge give an opportunity to a
manager to gain a lot of experience about organisational behaviour. With the passage of time, the
experience so gained becomes the personal possession of a manager.
d) Management knowledge is an art because, in many situations, the theoretical knowledge of
management may be inadequate and irrelevant to solve a practical problem. To solve such unique
problems, a manager must rely on his experience, perception, intuition, and judgment. He may
also use ‘rule to thumb’ or trial-and-error method.

Combination of science and art. To become an efficient manager, one must have sufficient theoretical
knowledge of management. A manager can acquire it through formal education and training. This
knowledge is to be supplemented by his personal experience, creativity, foresightedness, and imagination.
Management is, therefore, a combination of science and art. “In the area of management, science and art
are the two sides of the same coin.

Management and Administration

The use of the terms’ management’ and ‘administration’ is controversial in nature. Some authors opine
that these terms are synonyms to each other’s and can be used interchangeably, while others differ. The
various viewpoints on this controversy may be put in three groups.

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 Management is the same as the administration. This view is endorsed by authors like Peter Drucker,
Chester Barnard, George R. Terry, Louis A. Allen, William Newman, etc. They believe that if there is
any difference between these terms, it arises out of their usage in practice. The term management is used
in connection with the performance of economic and business activities. The term administration applies
to non-economic and non-business activities like governmental and military activities.

The administration is wider than management. This view is advocated by American management scholars
like William Spiegel, Ordway Tead, Brook Adams, Theo Haimann, etc. According to this view,
administration means a determination of objectives, policies, and programmes for the organisation; and
management means their implementation.

Management is wider than the administration. This view is advocated by British and European
management authors like Brech, Richman, Kimball and Kimball, etc. According to this view,
management is a thinking, planning and decision-making activity; while the administration is concerned
with doing things, implementing decisions, and coordinating activities in a set pattern. Management seeks
to achieve both efficiency (doing things right) and effectiveness (doing the right thing), while the
administration is concerned with efficiency only. In other words, the functions of administration are
confined to a process of doing things in a routine manner, but management is a dynamic, innovative, and
creative process.

Levels of Management

The structure of the organisation is built through the process of delegation of authority. This process starts
from the top, and every manager delegates a part of his authority to his subordinates. As a result of the
delegation of authority, the chain of command is established, and managerial positions are created in the
organisation. These positions are marked by authority, responsibility, functions, and roles and represent
what may be called the ‘levels of management’ (Waldman, & Yammarino, 1999). A level of management
determines the amount of authority and status enjoyed by managers at that level of organisation. As one
moves upwards in the organisation, the amount of authority and status of a manager increases, and the
manager plays more important a role and makes a valuable contribution for achieving objectives. In a
smaller organisation, generally, managerial positions are kept at two levels: functional level and operative
level. At the functional level, objectives are determined, policies and plans are made, and the course of
action is developed. At the operative level, managers are mainly concerned with the implementation of
plans and carrying out courses of actions. In a big organisation such as a joint-stock company, however,
the chain of command has three important levels of management: top-level, middle-level, and lower-level
(or supervisory-level) (Waldman, & Yammarino, 1999).

Top-level Management

Ownership group occupies the top level of management. It consists of the Board of Directors, Managing
Director, Chief Executive Officer (CEO) and General Manager. The top-level managers enjoy higher
status and more authority, and, at the same time, are directly accountable for achieving organisational
goals. They perform the following functions:

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 a) They make a corporate plan for the whole organisation.
b) They decide upon the important matters and issues which directly affect profitability, survival,
development and competitive strength of the organisation-e.g. introduction of a new product,
changing technology, opening new plants, etc.
c) They determine objectives for the organisation as a whole.
d) They design the structure of the organisation and create various positions in it.
e) They exercise overall control over each, and every activity being performed in the organisation
and review financial and operative results every year.
f) They also assume responsibility for distributing and disposing of profits. They select key officials’
arid executives for the organisation.
g) They coordinate the functioning of various subsystems. They formulate basic policies and plans,
develop a vision about the organisation and determine the future course of action.

Middle-level Management

In order to fill the gap between functional and operative levels, managerial positions are created at the
middle level of the organisational hierarchy. Middle-level managers are connecting links between higher
and lower levels. Middle-level management consists of departmental managers, deputy and assistant
managers, administrative heads, etc. They are mainly concerned about the functioning of their respective
departments. The main functions performed by these managers are as under:

a) To prepare departmental plans covering all departmental activities within the framework of the
corporate plan.
b) To determine departmental goals and to decide about ways and means of achieving them, and
thereby contributing towards the overall objectives of the organisation.
c) To perform managerial functions of planning, organising, staffing, directing and controlling in
their respective departments.
d) To issue detailed orders and instructions for lower-level managers, and coordinate and control
activities being performed in different work units at lower levels of the organisational hierarchy.
e) To interpret policy decisions made at the top level so as to make them followed by lower-level
managers.

Lower-level Management

In the chain of command, lower-level management represents that ultimate point at which managerial
hierarchy terminates. This level consists of first-line supervisors, inspectors, section officers, etc. They
are in direct touch with ‘frontline workers’ or ‘core workers’ such as operators, assemblers, salesmen,
clerks, etc. The lower level managers supervise the work being done by workers, issue orders and
instructions of them, and provide them with technical assistance. They perform the following functions:

a) Getting work performed by the rank-and-file people.

b) Deciding the work timetable. Giving orders and instructions to workers for their work duties.
c) Assigning work to rank-and-file people, seek its completion within the given time, and ensure
compliance of quality specifications.

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 d) Arranging machinery, raw materials, and other facilities for work performance.
e) Presenting workers’ case to higher level managers for better working conditions, welfare schemes,
etc.
f) Maintaining team spirit among workers for better inter-personal relations.

Figure 1.1 – Levels of Management

Managerial Skills

To get things done, a manager performs various functions to the best of his abilities. The abilities of a
manager to carry out his managerial responsibilities are known as managerial skills. Managerial skills
help a manager in getting better results, more efficiency, and overall prosperity for the organisation
(Kacperczyk & Seru, 2007). Fund manager use of public information: New evidence on managerial
skills. The Journal of Finance, 62(2), 485-528.. The various skills of a manager include the following:

a) Conceptual skills. Conceptual skill is the ability of a manager to develop a vision for the
organisation and decide the future course of action for its realisation. Such skills are also required
for coordinating various subsystems of the organisation in a meaningful manner.
b) Analytical skills. Such skills refer to those abilities which a manager requires for studying
problems systematically, collecting necessary information, and establishing and describing the
relationship between two or more variables. It is also used for making the decision, breaking
complex problems into elements, evaluating the performance of subordinates, and solving a
variety of other problems in the organisation.
c) Human relations or behavioural skills. A manager must get things done by subordinates who are
after all human beings. To get work done, he must possess some behavioural skills so as to
understand the behaviour of subordinates and to make it desirable. In doing so, a manager has to

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 understand the needs, interests, beliefs and values of the subordinates. By using behavioural skills,
a manager may establish healthy interpersonal relations and guide, direct and motivate them to
produce better results. He may also use human skills for developing personal rapport, warm
relations, and a friendly attitude, and building team spirit among subordinates (Chen et al, 2018).
d) Administrative skills. Some of the managers might be working at the lower levels of the
organisation and are responsible for implementing and executing decisions and policies framed
by higher-level managers. The manager who implements decisions and plans must possess
administrative skills. Administrative skills refer to those abilities that are required to be used for
coordinating various activities, utilising resources, and getting things done by the employees
involved in implementation. By applying administrative skills, a manager adopts a practical
approach and investigates ground realities, takes them into account and finally behaves as an
‘Administrative Man’.
e) Technical skills. These skills refer to specialised knowledge and proficiency in using various
methods, procedures, and techniques for doing specific jobs. It also includes knowledge of the
manager about jobs and their elements and sequence in which the employees may perform them.
The manager who supervises jobs performed by employees use technical skills and solve technical
problems regarding the use of technology.

Functions of Management

Management is a result-oriented process. The basic responsibility of a manager is to get things done. In
this process, a manager performs a variety of functions. These functions constitute the core of managing
process. The various functions of management include the following (Dolechek et al, 2019):

1. Planning;
2. Organising;
3. Staffing;
4. Directing; and
5. Controlling.

In the process of management, the above-mentioned functions have to be performed in a particular

sequence. The process of management starts with the planning function and is followed by organising,
staffing, directing and terminates with the controlling function.

1. Planning. Planning is a primary function of management. All other functions of management are based
on it. To get things done, the manager must plan activities. Through the process of planning, a manager
decides: what is to be done, how it is to be done, when and by whom it is to be done, etc. In its simple
form, planning is a process of making these decisions in advance. But many authors of management
consider it as a process of visualising future. They believe that it is a process of evaluating the past,
assessing present, and thereby foreseeing the future. Planning is also considered forward-looking in its
approach because plans are prepared for the future. Thus, for preparing sound plans and ensuring their
smooth implementation, a manager has to look forward to estimating and analysing trends and problems
that may possibly arise in the future. Broadly speaking, planning may be regarded as a process of
determining objectives, discovering alternative courses of action, and selecting an appropriate course of

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 action for achieving objectives. Keeping in view the element of futurity, plans are kept flexible so that in
the event of any change in future, plans may be rearranged in terms of objectives and alternative courses
of action without much difficulty.

2. Organising. It is a process of establishing working relationships among employees of the organisation.

In the process of organising, work is assigned to employees, they are made responsible for doing it,
authority is delegated, and the relationship of superior and subordinate is created throughout the
organisation. It also aims at integrating and coordinating group efforts for the realisation of common
goals. The term organising has two interpretations: it may be considered as an organisational structure
and as an organising process. As a structure, it is a network of authority-responsibility relationships. And
as a process, it involves the following activities:

a) Determination of various activities which are essential for achieving objectives of the
organisation.
b) Dividing and subdividing these activities into small jobs and tasks.
c) Grouping these jobs and tasks into identifiable groups on the basis of common features.
d) Creation of various departments and assigning these groups to them.
e) Delegation of authority to the respective departments.
f) Coordination of the functioning of all departments for achieving objectives.

3. Staffing. Once plans have been made, and the structure of the organisation has been designed. A
manager makes all necessary arrangements for filling various positions created in the structure of the
organisation. This task is performed through the staffing function. Staffing is mainly concerned with an
effective procurement of human resources and managing them properly (Dolechek et al, 2019). Staffing
is regarded as a unique and particularly important function because it is only through the human force
that all other resources of the organisation are utilised optimally. The staffing process involves the
following elements:

a) Undertaking workforce planning and determining the quantity and quality of human force needed
in the organisation.
b) Making necessary arrangements for procuring required manpower through recruitment and
selection. Formulating and implementing suitable personnel policies for retaining people in the
organisation for a longer period of time.
c) Developing human resources to its maximum by providing training and conducting development
programmes.

4. Directing. In the process of management, the function of directing supports planning, organising, and
staffing functions. Every manager, to get things done by subordinates, has to direct their activities.
Directing involves guiding, leading, and motivating subordinates so that they contribute towards
achieving organisational objectives. It is done by giving necessary orders and instructions to them
regarding the assigned work and motivating them to perform in a satisfactory manner. Communication,
motivation, and leadership are the essential elements of directing function. Broadly, the process of
directing involves the following elements:

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 a) Issuing orders and instructions regarding the work to be performed by subordinates.
b) Guiding, counselling, and educating them and telling them the right method of doing the given
job.
c) Supervising the work of employees regularly.
d) Maintaining discipline among employees and rewarding those who perform their jobs efficiently.
e) Motivating and inspiring subordinates to follow given orders and instructions so that they perform
their work responsibilities in a satisfactory manner.

5. Controlling. The process of management begins with the planning function and concludes with the
controlling function. The controlling function of management involves a comparison between the actual
work performance and the planned standards and taking corrective steps when there is a difference
between the two. By exercising efficient control, a manager modifies the working behaviour of
subordinates. Broadly, controlling includes the following elements:

a) Determining standards of performance for the subordinates.

b) Measuring actual performance when subordinates complete assigned job.
c) Comparing actual performance with standards so as deviations. to discover
d) Finding out causes responsible for creating deviations and studying and analyse them.
e) Taking corrective measures to bring actual performance closer to standards.

References

Chen, F., Qian, M., Sun, P. W., & Yu, B. (2018). In search for managerial skills beyond common
performance measures. Journal of Banking & Finance, 86, 224-239.

Dolechek, R., Lippert, T., Lloyd, R., & Vengrouskie, E. (2019). Solving a Whale of a Problem:
Introducing the Four Functions of Management in a Management Principles Course. In International
Forum of Teaching and Studies (Vol. 15, No. 2, pp. 29-35). American Scholars Press, Inc.

Dudin, M. N., Ivashchenko, N. P., Gurinovich, A. G., Tolmachev, O. M., & Sonina, L. A. (2019).
Environmental entrepreneurship: characteristics of organization and development. Entrepreneurship and
Sustainability, (6), 4.

Hodgkinson, G. P., & Sparrow, P. (2002). The competent organization: A psychological analysis of the
strategic management process (Vol. 154). Buckingham: Open University Press.

Kacperczyk, M., & Seru, A. (2007). Fund manager use of public information: New evidence on
managerial skills. The Journal of Finance, 62(2), 485-528.

Kun, L. I. (2018). Multi-context research on strategy characteristics of knowledge sharing in organization

based on dynamic cooperative game perspective. Journal of Knowledge Management.

Springborg, C. (2018). Sensory Templates and Manager Cognition: Art, Cognitive Science and Spiritual
Practices in Management Education. Springer.

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 Sumardi, S., & Fernandes, A. A. R. (2020). The influence of quality management on organization
performance: service quality and product characteristics as a medium. Property Management.

Waldman, D. A., & Yammarino, F. J. (1999). CEO charismatic leadership: Levels-of-management and
levels-of-analysis effects. Academy of management review, 24(2), 266-285.

Woods, D. D. (2017). Essential characteristics of resilience. In Resilience engineering (pp. 21-34). CRC
Press.

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