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INTRODUCTION TO MANAGEMENT c.

Management is multi-dimensional: Management does not mean one single


activity but it’s a complex process that includes three main activities: Management
Management is a universal phenomenon which helps and directs the various efforts of work, people and operations. 4. Management is a continuous process:
towards a definite purpose. Management can be considered as an activity, process, d. Management is a continuous or never-ending function: There is an ongoing series
practice, function or discipline, and involves responsibility for economical and of functions in which a manager is involved regularly.
effective planning and regulation of operations of an enterprise in the fulfillment of e. Management is a group activity: Management is very much less concerned with
a given purpose. individual’s efforts. It is more concerned with groups. It involves the use of group
Management is needed whenever people work together in an organization and it is effort to achieve predetermined goals.
also needed to achieve efficiency and effectiveness in organization processes and in f. Dynamic/Situational function: In order to be successful, management must
utilization of limited resources. Definition of management change its goals, plans and policies according to the needs of its environment. It
Management theorists and scholars have defined management differently; changes with the situation.
g. Intangible: Management function cannot be physically seen but its presence can
i. “The art of getting things done through and with people in formally
be felt and realized by its results.
organized groups. “(Harold Koontz)
h. Multi-Disciplinary: This implies that management has developed from different
ii. “The art of getting things done through people. “(Mary Parker Follett) III)
disciplines like physiology, sociology, etc. Management integrates Knowledge, idea
“A set of activities directed at the efficient and effective utilization of
& concepts from above discipline & present a newer concept which can be put in
resources in the pursuit of one or more goals.’ (Van Fleet and Peterson)
practice for managing the operation.
iii. “To manage is to forecast and to plan, to organize, to command, to co-
ordinate and to control. “(Henri Fayol)
IMPORTANCE/SIGNIFICANCE OF MANAGEMENT
UNIVERSALITY OF MANAGEMENT According to Peter F. Drucker (1970), “Management is the dynamic life-giving
The concept of management is considered universal on the following grounds; element in every organization. This means that all the development that has taken
1) Management is common in content and is needed in all forms of organizations, place around the world, is as a result of effective management, hence quality
business or non-business. management is associated with the following benefits;
2) Management is needed regardless of the size of organization, large or small.
1) Provides a sense of focus and direction: When an organization plans its activities,
The principles of management are standard and applicable to all types of
it is able to have a singular focus. Failure to plan can throw an entire business into
organizations regardless of context.
disarray because no one will understand where they are headed.
3) All managers regardless of managerial level perform the same basic functions;
2) Establishes equilibrium: Management assesses the state of the organization and
planning, organizing, staffing, directing & controlling.
adapts it to changing environment enabling it to survive.
4) Management skills are transferable from one person to person, and across
3) Encourages Innovation: managers have the responsibility of leading change in
countries and industries.
organizations.
FEATURES OF MANAGEMENT 4) Improve corporate image: it emphasizes on the need for best practices which
a. Management is goal-oriented process: Managers focus their attention and enhances reputation.
efforts on bringing about successful action. It is a tool which helps use of 5) Employee motivation: through interaction with workers, managers are able to
human & physical resources to fulfill the pre-determined goals. attend to their needs which boosts morale.
b. Management is Pervasive/Universal: Management is a requirement and 6) Teamwork: Emphasizes on the need for team spirit which leads to unity of
essential for the functioning of all kinds of organizations-social, economic or purpose. Optimum utilization of resources: enhances efficiency which improves
political. It is a must for all activities. productivity.
7) Improve relations: It mediates conflicting interests internally and externally Features of art
which promotes peaceful co-existence. Systematic body of knowledge: In art there exists organized study material to
8) Prosperity of society: provides effective stewardship which leads to creation and acquire the theoretical knowledge of the art. This is also the case with
retention of organizations delivering benefits to the society at large. management.
Personalized Skill: Every artist has his own style and approach towards his job.
MULTIDISCIPLINARY NATURE OF MANAGEMENT Similarly, every manager has his own way of managing things based on his
Though management has developed as a separate discipline, it draws knowledge knowledge, experience and personality.
and concepts from disciplines such as sociology, psychology, economics, statistics, Creativity: Art requires combination of intelligence & imagination. Management is
operations research etc. Management integrates ideas and concepts from these also creative in nature like any other art.
disciplines and uses them for improving the efficiency of the organization. Perfection through practice: Every artist becomes more and more proficient
through constant practice. Similarly, managers learn through an art of trial and
MANAGEMENT AS A SCIENCE, AN ART OR A PROFESSION error initially but application of management principles over the years makes them
The concept of management is so broad that it cannot be restricted to one of the perfect in the job of managing.
three, but cuts across all of them. Goal-Oriented: Every art seeks to achieve concrete results. In the same manner,
management is also directed towards accomplishment of pre-determined goals.
As a Science: Science is a systematic and organized body of knowledge based on
logically observed findings, facts and events. As a profession: A profession is an occupation that requires specialized knowledge
and intensive academic preparations to which entry is regulated by a representative
Features of Science body.
Systematic body of knowledge: In science, an organized and systematic study Features of a profession
material is available which is used to acquire the knowledge of the science, which is Specialized Knowledge: A systematic body of knowledge that can be used for
also the case with management. development of professionals. A similar body of knowledge exists to acquire
Experimentation & Observation: Scientific principles are derived through scientific expertise in the principles and techniques of management.
investigation & similarly management principles are also based on scientific enquiry Formal Education & Training: Professionals require personal and academic
& observation. qualifications, and so does managers.
Universal Validity: Scientific principles may be applied in all situations, at all time & Social Obligations: Professionals are primarily motivated by the desire to serve the
at all places, just like management principles. society. Similarly, managers owe a duty to society when making decisions.
Cause & Effect Relationship: Principles of science explain cause and effect However, some features of professions are not evident in management;
relationship between various variables, which is also true for management ✓ Restricted entry
principles. ✓ Code of Conduct
Test of Validity & Predictability – Scientific principles stand the test of time. Their ✓ Representative Association
validity can be tested at any time and each time these tests will give same result, NB: Management can therefore not be considered a true profession.
just like management principles.
MANAGEMENT FUNCTIONS AND ROLES
As an art: Art is a systematic body of knowledge which requires skill, creativity and
MANAGEMENT FUNCTIONS
practice to get perfection.
Managers perform 5 basic functions: -
Planning: Planning is concerned with the determination of the objectives to be
achieved and the course of action to be followed to achieve them.
According to KOONTZ, “Planning is deciding in advance what to do, when to do & iii. Spokesperson: Transmit information about the organization to outsiders.
how to do.
Organizing: It is the process of bringing together physical, financial and human Decisional roles:
resources and developing productive relationship amongst them for achievement of These deal with action. They translate the people and information into processes
organizational goals. It involves determination of tasks, structuring authority and with the purpose of moving the organization towards achievement of goals.
responsibility, provision of resources, and developing coordination mechanisms. i. Entrepreneur: Acts as an initiator, designer, and encourages change and
Staffing: Staffing is the function of hiring and retaining a suitable work-force for the innovation.
enterprise. It involves recruitment, selection, appraisal & development of personnel ii. Disturbance handler: Take corrective action when the organization faces
to fill the roles designed in the structure”. unexpected difficulties.
Directing: That part of managerial function which sets in motion the action of iii. Resource allocator: The resource allocator distributes required resources for goal
people, i.e., gets things started. It is concerned with leadership, communication, achievement.
motivation, and supervision so that the employees perform their activities in the iv. Negotiator: Defends the organization and interests of the groups they represent.
most efficient manner possible.
LEVELS & SKILLS OF MANAGEMENT
Controlling: Those activities that are undertaken to ensure that the events do not
deviate from the pre-arranged plans. Its purpose is to ensure that everything occurs
LEVELS OF MANAGEMENT
in conformity with the standards.
The term “levels of management’ refers to a line of demarcation between various
managerial positions in an organization. The levels of management can be classified
MAGERIAL ROLES
in three broad categories:
Managerial roles are specific behaviors associated with the task of management.
1. Top level/Administrative level
Managers adopt these roles to accomplish the basic functions of management. Dr.
2. Middle level/Executory level
Henry Mintzberg identified 10 roles of a manager which he categorized into 3:
3. Lower level/Supervisory/Operative/First-line managers
Interpersonal Roles:
Roles that involve interacting with other people inside and outside the organization.
Management jobs are people-intensive:
i. Figurehead: In this light, the manager is seen as a symbol of status and
authority. They perform symbolic, legal or social duties.
ii. Leader: The Leader builds relationships with employees and communicates with,
motivates, and coaches them.
iii. Liaison: They maintain a network of contacts outside the work unit to obtain
information for the benefit of the employees and organization.

Informational Roles
Informational roles are concerned with collecting, processing, and disseminating
information.
i. Monitor: They seek internal and external information about issues that can
affect the organization.
ii. Disseminator: Transmit information internally that is obtained from either
internal or external sources.
1. Top level/Administrative level e) Address and resolve the grievances of workers.
The ultimate source of power and authority in an organization. It is responsible for f) Supervising and guiding their subordinates.
controlling and overseeing the entire organization. g) Hiring and training of the subordinates.
h) Motivating workers.
Functions i) Providing the necessary resources for accomplishing organizational tasks.
a) Laying down the objectives and broad policies of the business enterprise. j) Preparing periodical reports regarding the performance of the workers.
b) Preparing strategic plans and policies for the organization. k) Upholding discipline and harmony within the workplace.
c) Mobilization of resources required by the enterprise.
d) Appointing the executives for middle-level management. MANAGEMENT SKILLS
e) Establishing controls of all organizational departments. Management skills can be defined as certain attributes or abilities that a manger
f) Communicating with the outside world. should possess in order to fulfill specific tasks in an organization.
g) Providing overall guidance & direction.

2. Middle level/Executory level


A level subordinate to the top level. It is responsible for executing the plans
formulated by the top level. These managers act at as an intermediary between top
level management and low-level management.

Functions
a) Executing the plans, policies and directives laid out by the top management
level.
b) Forming plans for the departments of the organization.
c) Hiring and training of lower-level management.
d) Interpreting and explaining policies to lower-level management.
e) Sending reports and data to top management in a timely manner.
f) Inspiring and providing guidance to low-level managers. Conceptual Skills
g) Defining and monitoring group-level performance. These involve the skills managers present in terms of the knowledge and ability for
h) Diagnosing and resolving problems within and among work groups. abstract thinking and formulation of ideas. Conceptual skills revolve around
i) Designing and implementing reward systems supporting cooperative behavior. generating ideas through creative intuitions and a comprehensive understanding of
a given context.
3. Low level/Supervisory level Diagnostic skills
A level tasked with the execution and coordination of day-to-day workflow. The managers ability to analyze and diagnose a problem, and find creative
Functions solutions.
a) Assigning jobs and tasks to various workers. Human or Interpersonal Skills
b) Guiding and instructing workers in day-to-day activities. Skills that present the managers’ ability to interact, work or relate effectively with
c) Overseeing both the quality and quantity of production. people. They enable managers to make use of human potential in the company and
d) Communicating the problems & suggestions of workers to the higher level of motivate the employees for better results.
management.
Technical Skills Move from employer to entrepreneur: Instead of being “a boss”, they should
Involve process or technique knowledge and proficiency. Skills required to perform assume an entrepreneurial role which is a mode of thinking which is important for
specialized tasks. They give managers the ability and the knowledge to use a variety finding new gateways for development.
of techniques to achieve their objectives.
Create New Leaders: Traditional managers are afraid of competition that may one
day cost their own job. However, the best managers always encourage others to
THE CHANGING ROLES OF MANAGEMENT AND MANAGERS
rise up the corporate ladder in the understanding that fresh blood is needed to
Management has long been associated with the five basic functions: planning,
keep it viable in the competitive market.
organizing, staffing, directing, and controlling. It was a well-defined set of actions
that provided managers with a comfort zone and was efficient in controlling a Look toward the Future: The role of today’s managers is no longer restricted to
stable market that operated within a confined territory. managing day-to-day issues but rather, they should be proactive to understand
Times have, however, changed dramatically. The market these days is no longer future challenges.
confined to specific territories; people are more knowledgeable in their own
domain than ever before and the market has become fiercely competitive. MANAGEMENT AND ADMINISTRATION
In order to survive in today’s cut-throat competition, companies, therefore, require Management can be understood as the skill of getting the work done from others,
managers who can re-model their role and shift their focus from the age-old while administration alludes to a process of effectively administering the entire
comfort zone to take on the challenges of the new, emerging markets and trends in organization.
management.
Today management is no longer confined to the top-down hierarchy model based The former is concerned with directing or guiding the operations of the
on authority. organization, whereas the latter stresses on laying down the policies and
Furthermore, managers also interact and build relationships with partners and establishing the objectives of the organization.
customers, hence the role of a manager is no longer a one-sided dictatorial one.
According to Theo Hamann, “Administration means overall determination of
Flexibility, adaptability and creativity are the new qualities that managers of
policies, setting of major objectives, the identification of general purposes and
modern times should inculcate rather than a strict hierarchy-based, authoritative
laying down of broad programs and projects”. According to Newman,
way of managing their tasks.
“Administration means guidance, leadership & control of the efforts of the groups
To help organizations meet today’s challenges, managers must thus: - towards some common goals”.

Focus on Learning, not Knowledge: today’s knowledge will no longer be relevant The difference between Management and Administration can be summarized
within the next few decades; hence a manager should focus on learning new things under 2 categories: -
to expand their knowledge rather than depend on his existing knowledge and skills.
I. Functions
Move from Restrictive to expansive: Too many managers micro-manage and don’t II. Usage / Applicability
delegate. Managers today need to draw out everyone’s best thinking.
Basis of Functions
Be Innovative rather than Repetitive: Businesses today require managers who are Basis Management Administration
not afraid to experiment, innovate and take on new challenges.
Meaning Management is an art of It is concerned with formulation
Change from problem solver to challenger: Rather than fixing problems, they
getting things done through of broad objectives, plans &
should focus on finding better ways to operate the firm by challenging people to others by directing their policies.
discover new and better ways to grow.
efforts towards achievement
of pre-determined goals.

Nature Management is an executing Administration is a decision-


function. making function.

Process Management decides who Administration decides what is


should as it & how should he to be done & when it is to be
dot it. done.

Function Management is a doing Administration is a thinking


function because managers function because plans &
get work done under their policies are determined under
supervision. it.

Skills Technical and Human skills Conceptual and Human skills

Level Middle & lower-level function Top level function

Basis of Usage

Applicability It is applicable to business It is applicable to non-business


concerns i.e., profit-making concerns i.e., clubs, schools,
organization. hospitals etc.

Influence The management decisions The administration is influenced


are influenced by the values, by public opinion, govt. policies,
opinions, beliefs & decisions of religious organizations, customs
the managers etc.

Status Management constitutes the Administration represents


employees of the organization owners of the enterprise who
who are paid remuneration (in earn return on their capital
the form of salaries & wages). invested & profits in the form of
dividend.

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