Management as a process

Management process comprise of several intertwined elements or functions by which managers

determine and accomplish definitive organisational objectives. These elements or functions may
be classified as planning (preparing for the future), organising and staffing (assembling resources
and creating interrelationship among them), directing (guiding, supervising and inspiring people)
and controlling (keeping activities on the right track). The true character of management can be
seen only as a process composed of managerial functions.

Characteristics of Management
The salient features which show the nature of management are as follows:-

1. Management is universal - The basic principle of management is universal in character.

Henry Fayol pointed out that the fundamentals of management are equally applicable in
different organisations, business, government, military and others. Management is
applicable all over the world using the same principles of management. The functions of
management are required at all levels of organisation and in all areas of business.
2. Management is purposeful - Management exists for the achievement of specific
objectives. The success of management is measured by the extent to which the desired
objectives are attained.
3. Management is a social process - Management is done by people, through people and
with people. It is a social process because it is concerned with interpersonal relations.
4. Management is an integrative force - Its essence lies in the coordination of individual
efforts into a team effort. As a unifying force, management creates a whole that is more
than the sum of individual parts (synergy). It integrates human and physical resources to
achieve organisational goals and objectives.
5. Management is multidisciplinary - It deals with behaviour under dynamic conditions.
Therefore, it depends upon wide knowledge derived from several disciplines like
psychology, statistics, engineering, sociology, and economics and so on.
6. Management is a continuous process - It is dynamic and on-going.
7. Management is intangible - Management is an untouchable and invisible force. It
cannot be seen but its presence can be felt everywhere in the form of results.
 8. Management is an art as well as a science - It contains a systematic body of theoretical
knowledge and it also involves the practical application of such knowledge. It is also a
discipline involving specialised training and an ethical code arising out of its social
obligations.
1.5 Importance of Management
The following facts prove the importance of management:

1. Accomplishment of group goals

Management is concerned with conversion of diverse resources – The 4 Ms that is: Men,
Machines, Money, Materials, time, and space into a useful enterprise.

2. Efficient running of organisation.

Efficiency of an organisation will depend on how far its management has been successful in
providing leadership to the subordinate workers, and in involving them mentally and
economically in the accomplishment of organisational objectives.

3. Sound organisational structure

Management establishes a sound organisation that is in accordance with the desired
objectives and the work to be done to accomplish them.

Universality of Management
Management is vital for group effort to ensure coordination of individual efforts and to create an
environment where the group can accomplish its goals efficiently and effectively. Management
is a function that is present in all human activities.

a) It is found in all human societies regardless of the race and nationality.

b) It is important in all organisations, businesses and non-business organisations.
c) It is important in all organisational functions such as production, marketing, finance,
personnel, etc.
d) It is important in group activities as well as in individual activities.
e) It is important in the 21st Century as it will be in the 22 nd and as it was in the beginning of
life.
f) Management is practised consciously as well as unconsciously by people.
g) It is as important to that man out there in the street as it is to that manager in a big and well-
furnished office.
The Seven Types of Managers—Where Do You Stand?
Even with all the efforts employees may put forth to salvage a once positive work environment,
at the core of every toxic working environment is the toxic boss, manager, or supervisor. All
roads go back to the manager. And if the manager isn’t willing to change, then it’s a safe bet that
nothing will.
That’s why to impact long-lasting change, managers need to upgrade their style and approach.
1. The Problem-Solving Manager
This boss is task-driven and focused on achieving goals. These problem solvers are constantly
putting out fires and leading by chaos. The paradox here is this: It is often the manager who
creates the very problems and situations that they work so hard to avoid. Continually providing
solutions often results in the lackluster (boring) performance that they are working so diligently
to eliminate.
2. The Pitchfork Manager
People who manage by a pitchfork (push) are doing so with a heavy and often controlling hand:
demanding progress, forcing accountability, prodding and pushing for results through the use of
threats and fear tactics. This style of tough, ruthless management is painful for people who are
put in a position where they are pushed to avoid consequences rather than pulled toward a
desired goal.
3. The Pontificating Manager
These managers will readily admit they don’t follow any particular type of management strategy.
Instead, they shoot from the hip, making it up as they go along, often generating sporadic,
inconsistent results. As a result, they often find themselves in situations that they are unprepared
for. Interestingly, the Pontificating Manager thrives on situations like this. Often adrenaline
junkies themselves, these managers are in desperate need of developing the second most
essential proficiency of a coach: masterful listening. The Pontificating Manager is the type of
manager who can talk to anyone and immediately make people feel comfortable. This character
strength becomes a crutch to their leadership style, often blinding them to the need to further
systemize their approach. As a matter of fact, the only thing consistent about these managers is
their inconsistency.
4. The Presumptuous Manager
Presumptuous Managers focus more on themselves than anything else. To them, their personal
production, recognition, sales quotas, and bonuses take precedence over their people and the
value they are responsible for building within each person on their team. Presumptuous
Managers often put their personal needs and objectives above the needs of their team. As you
can imagine, Presumptuous Managers experience more attrition, turnover, and problems relating
to managing a team than any other type of manager. Presumptuous Managers are typically
assertive and confident individuals. However, they are typically driven by their ego to look good
and outperform the rest of the team. Presumptuous Managers breed unhealthy competition rather
than an environment of collaboration.
5. The Perfect Manager
Perfect Managers possess some wonderful qualities. These managers are open to change,
innovation, and personal growth with the underlying commitment to continually improve and
evolve as sales managers, almost to a fault. This wonderful trait often becomes their weakness.
In their search for the latest and greatest approach, like Pontificating Managers, Perfect
Managers never get to experience the benefit of consistency. This manager is a talking spec
sheet. Their emphasis on acquiring more facts, figures, features, and benefits has overshadowed
the ability of Perfect Managers to recognize the critical need for soft skills training around the
areas of presenting, listening, questioning, prospecting, and the importance of following an
organized, strategic selling system. Perfect Managers rely on their vast amount of product
knowledge and experience when managing and developing their salespeople. Because of this
great imbalance, these manager often fall short on developing their interpersonal skills that
would make them more human than machine.
6. The Passive Manager
Also referred to as Parenting Managers or Pleasing Managers, Passive Managers take the
concept of developing close relationships with their team and coworkers to a new level. These
managers have one ultimate goal: to make people happy. While this is certainly an admirable
trait, it can quickly become a barrier to leadership efforts if not managed effectively. Although
wholesome and charming, this type of boss is viewed as incompetent, inconsistent, and clueless,
often lacking the respect they need from their employees in order to effectively build a
championship team. You can spot a Passive Manager by looking at their team and the number of
people who should have been fired long ago. Because all Passive Managers want to do is please,
they are more timid and passive in their approach. These managers will do anything to avoid
confrontation and mistake holding people accountable with confrontation and conflict.
7. The Proactive Manager
The Proactive Manager encompasses all of the good qualities that the other types of managers
possess, yet without all of their pitfalls. Here are the characteristics that this ideal manager
embodies, as well as the ones for you to be mindful of and develop yourself. The Proactive
Manager possesses the
 Persistence, edge, and genuine authenticity of the Pitchfork Manager
 Confidence of the Presumptuous Manager
 Enthusiasm, passion, charm, and presence of the Pontificating Manager
 Drive to support others and spearhead solutions like the Problem-Solving Manager
 Desire to serve, respectfulness, sensitivity, nurturing ability, and humanity of the Passive
Manager
 Product and industry knowledge, sales acumen, efficiency, focus, organization, and
passion for continued growth just like the Perfect Manager
The Proactive Manager is the ultimate manager and coach, and a testimonial to the additional
skills and coaching competencies that every manager needs to develop in order to build a world-
class team.
Following are some definitions of management given by eminent authorities:-

Management is the art of getting things done through and with people in formally organized
groups. It is the art of creating the environment in which people can perform and
individuals could cooperate towards attaining of group goals. It is the art of removing
 blocks to such performance, a way of optimizing efficiency in reaching goals. Harold
Koontz:

Management is principally the task of planning, coordinating, motivating and controlling the
efforts of others towards a specific objective James L. Lundy

"Management is a social and technical process which utilizes resources, influences human
action, and facilitates changes in order to accomplish organizational goals". Theo Haimann
and William G, Scott.

Management is a distinct process consisting of planning, organising, actuating, and controlling,

performed to determine and accomplish stated objectives by the use of human beings and
other resources George R. Terry

"Management is a social process entailing responsibility for the effective and economical
planning and regulation of the operation of an enterprise, in fulfillment of a given purpose
or task, such responsibility involving :

Judgment and decision in determining plans and in using data to control performance and
progress against plans; and

The guidance, integration, motivation, and supervision of the personnel composing the
enterprise, and carrying out its operations E.F.L. Brech.

Management as an Art
Management can be an art in the sense that it has the following characteristics:
 Just like other arts it has to be practiced and performed. The knowledge should be learned
and practiced, just as medical or legal practitioners practice their respective sciences.
 The manager gains experience by continuous application of management knowledge and
facing new experiences. This helps to develop more skills and abilities for translating
knowledge into practice.
 Application calls for innovativeness and creativity.
 The fourth reason is that in many situations, theoretical knowledge of management
may not be adequate or relevant for solving the problem. It may be because of
complexity or unique nature of the problem.
The art is in knowing how to accomplish the desired results. This implies that there exists a body
of knowledge which management uses to accomplish the desired results in organization
Management as a Science
Management as a science has the following characteristics:
 Its principles, generalizations and concepts are systematically . In this case the manager
can manage the situation or organization in a systematic and scientific manner.
  Its principles, generalizations and concepts are formulated on the basis of observation,
research, analysis and experimentation, as is the case with the principles of other
sciences.
 Like other sciences, management principles are also based on relationship of cause and
effect. It states that same cause under similar circumstance will produce same effect.
Suppose if workers are paid more (cause), the produce more (effect).
 Management principles are codified and systematic, and can be transferred from one to
another and can be taught.
 Management principles are universally applicable to all types of organizations.
there is no tailor - made answer to a question- Is management a science or art? To ascertain the
nature of management with respect of science or art, there is a need to know the exact meaning
of the words 'science' or 'art' and subsequently, their application to management.
Management: A profession?
The following criteria identifies the statues of a profession to management:
 Profession is a body of specialized knowledge.
 Professional knowledge in systemized and codified form can be learned through formal
education system.
 A profession emphasizes on having a central body to formulate a code of behavior for its
members.
 A profession calls for rendering competent and specialized services to clients.
 A profession maintains the scientific attitude and commitment for discovering new ideas
and upgrading in order to improve quality of service and level of efficiency provided to
clients.
 A profession requires members to exercise restraint and self-discipline.
Management knowledge meets the first two criteria because it has grown into a systematic body
of knowledge and also it can be acquired and learned through the formal education.
There is no minimum qualification prescribed either for getting entry in the management
profession or for becoming members of it. In practice, whosoever manages in known as
manager, irrespective of qualifications. Peter Drucker in support of this view says that "no
greater damage could be done to our economy or to our society than to attempt to professionalize
management by licensing managers, for instance, or by limiting access to management to people
with a special academic degree."
Regarding professional approach, a manager has to continuously strive for discovering new
ideas, relationships and concepts and act in a dynamic and innovative manner to cope with the
changing environment. Even so, managers are not respected as other professionals like doctors,
advocates and chartered accountants.
Professional vs. Family Management
Professionalization of management
The following reasons are in a support of the professionalization of management:
 In joint stock company, ownership has been separated from its management and
control. This situation has really contributed to the development of management as a
profession.
 Rapid expansion and growth of management universities and institutions is an
indicative of management professionalization trend.
  In a high-tech industrial society, manifold changes have occurred in the role of
managers.
 In the context of globalization of economic operations, many strategic areas have been
developed which require professional expertise and specialized knowledge (e.g.
strategic planning, etc).
 Increased utilization of specialized management services (e.g. consultancy, human
resource development, etc) requires a team of professional managers.
Family management
Family management implies management and control of business operations by a group of
members belonging to a particular family, regardless of their knowledge about management.
Thus the decisions and policies are largely influenced by family interest. Disputes and
disagreements relating to family matters also tend to have a direct bearing on the functioning of
the business organization. But in a professionally-managed enterprise, ownership is separated
from management and control. Authority to manage and control business operations is delegated
to professionally-qualified managers.
A study covering 30 nations around the world points out that 75% of all firms in the world are
family firms. In some of which, family inheritance has been continuing for centuries. The
phenomenal progress of Ford Motors, IBM, etc, bears testimony to their quality of leadership
and management. In the words of K.K. Birla, "if people like Sir Jamshedji Tata or Rai Bahadur
Gujarmal Modi were to start their business career again, I would any day put my rupee on them
than on the best of the professionals."
Management and Administration
There has been a controversy regarding the interpretation of these two terms. There are different
views in this regard:
According to first view (William Newman, Peter Drucker, etc), there is no basic difference
between the two terms, and they are interchangeable. If there is any difference, it may perhaps be
in their usage in practice. The term administration is used for non-business activities, and
management is used for business activities.
According to second view (Kimball, Brech, other British writers, etc), management is a more
comprehensive term which includes administration. Management involves "thinking" and
administration involves "doing". Management is responsible for planning and organizing, and
administration is responsible for directing and controlling. Whereas management refers to a high
level of managerial activities such as goal-setting, policy formulation and strategy making,
administration refers to an operative part concerned with lower level management activities such
as execution of policies.
According to third view (Sheldon, Speriegal, Milward, etc), administration is a more
comprehensive term which includes management. Administration involves "thinking" and
management involves "doing". Administration is a top level function which concentrates on
determination of plans, policies and objectives, whereas management is a lower level function
which deals with the execution and direction of policies and operations. It doesn't mean that we
need two separate sets of personnel, but each manager performs both the managerial as well as
administrative functions. At top level more time is spent in administrative activity and as one
moves down, more time is spent in management activity.
Difference between Administration and Management. 1. Management is the act or function of
putting into practice the policies and plans decided upon by the administration. 2. Administration
is a determinative function, while management is an executive function. 3. Administration makes
the important decisions of an enterprise in its entirety, whereas management makes the decisions
within the confines of the framework, which is set up by the administration. 4. Administrators
are mainly found in large and multi-layered enterprises such as governments, military, religious
and educational organizations or corporations. Management, on the other hand, is used by mid-
size to small enterprises and may take administrative functions or even be labeled as
administration but granted mostly a management function. For example the administration of a
condominium is mostly a managerial body that is needs to convey an assembly to reach most
decisions.
Levels of Management
Top Level of Management
It consists of board of directors, chief executive or managing director. The top management is
the ultimate source of authority and it manages goals and policies for an enterprise. It devotes
more time on planning and coordinating functions.
The role of the top management can be summarized as follows -
Top management lays down the objectives and broad policies of the enterprise.
It issues necessary instructions for preparation of department budgets, procedures, schedules
etc.
It prepares strategic plans & policies for the enterprise.
It appoints the executive for middle level i.e. departmental managers.
It controls & coordinates the activities of all the departments.
It is also responsible for maintaining a contact with the outside world.
It provides guidance and direction.
The top management is also responsible towards the shareholders for the performance of the
enterprise
Middle Level of Management
The branch managers and departmental managers constitute middle level. They are responsible
to the top management for the functioning of their department. They devote more time to
organizational and directional functions. In small organization, there is only one layer of middle
level of management but in big enterprises, there may be senior and junior middle level
management. Their role can be emphasized as -
They execute the plans of the organization in accordance with the policies and directives of the
top management.
They make plans for the sub-units of the organization.
They participate in employment & training of lower level management.
They interpret and explain policies from top level management to lower level.
They are responsible for coordinating the activities within the division or department.
It also sends important reports and other important data to top level management.
They evaluate performance of junior managers.
They are also responsible for inspiring lower level managers towards better performance.
Lower level
Lower Level of Management
Lower level is also known as supervisory / operative level of management. It consists of
supervisors, foreman, section officers, superintendent etc. According to R.C. Davis,
“Supervisory management refers to those executives whose work has to be largely with personal
oversight and direction of operative employees”. In other words, they are concerned with
direction and controlling function of management. Their activities include -
Assigning of jobs and tasks to various workers.
They guide and instruct workers for day to day activities.
They are responsible for the quality as well as quantity of production.
They are also entrusted with the responsibility of maintaining good relation in the organization.
They communicate workers problems, suggestions, and recommendatory appeals etc. to the
higher level and higher level goals and objectives to the workers.
They help to solve the grievances of the workers.
They supervise & guide the sub-ordinates.
They are responsible for providing training to the workers.
They arrange necessary materials, machines, tools etc. for getting the things done.
They prepare periodical reports about the performance of the workers.
They ensure discipline in the enterprise.
They motivate workers.
They are the image builders of the enterprise because they are in direct contact with the
workers.
Skills and Functions of a manager
Skills the five functions of management ensures the organization runs smoothly.these five
functions are :
 planning
 organizing
 staffing
 coordinating
 controlling
The basic skills needed are:
 Calmness
 Maturity
 Friendliness
 Tolerance
 Appreciable
 Tolerable
 Adorable
 Frank
 Determined
 Neutral towards means & end etc.
Evolution of management Thoughts
Early Classical approach
It bears the existing and newly developed theories and methods of the relevant social sciences
upon the study of human behavior ranging from personality dynamics of individuals to the
relations of culture.
As management is the process of getting things done by people, managers should understand
human behaviour. Emphasis is put on increasing productivity through motivation and good
human relations. Motivation, leadership, communication, participative management and group
dynamics are the central core of this approach.
It suggests how the knowledge of human behaviour can be used in making people more effective
in the organization. An individual’s behaviour is not determined by organization factors alone
but also by his attitude, pressure, conflicts of cultural environment etc. Hence these factors must
be taken into account.
Managers can be better placed by understanding human behaviour but equating management
with human behaviour is untenable.
Neo-Classical approach
Levels of Management
A part of an organization that maintains responsibility for the productivity and the work
performance of employees. There are generally three levels of management within an
organization including top-level, middle-level, and first level that are tiered in numbers with
more first level managers, a smaller amount of middle managers, and less top-level managers
within one organization. Each level possesses certain job responsibilities within their position to
ensure the effective overall operation of the organization.

Top Level of Management

The Top Level Management consists of the Board of Directors (BOD) and the Chief Executive
Officer (CEO). The Chief Executive Officer is also called General Manager (GM) or Managing
Director (MD) or President. The Board of Directors are the representatives of the Shareholders,
i.e. they are selected by the Shareholders of the company. Similarly, the Chief Executive Officer
is selected by the Board of Directors of an organisation.
The main role of the top level management is summarized as follows :-
1. The top level management determines the objectives, policies and plans of the
organisation.
2. They mobilises (assemble and bring together) available resources.
3. The top level management does mostly the work of thinking, planning and deciding.
Therefore, they are also called as the Administrators and the Brain of the organisation.
4. They spend more time in planning and organising.
5. They prepare long-term plans of the organisation which are generally made for 5 to 20
years.
6. The top level management has maximum authority and responsibility. They are the top or
final authority in the organisation. They are directly responsible to the Shareholders,
Government and the General Public. The success or failure of the organisation largely
depends on their efficiency and decision making.
7. They require more conceptual skills and less technical Skills.
Middle Level of Management

The Middle Level Management consists of the Departmental Heads (HOD), Branch Managers,
and the Junior Executives. The Departmental heads are Finance Managers, Purchase Managers,
etc. The Branch Managers are the head of a branch or local unit. The Junior Executives are
Assistant Finance Managers, Assistant Purchase Managers, etc. The Middle level Management is
selected by the Top Level Management.
The middle level management emphasize more on following tasks :-
1. Middle level management gives recommendations (advice) to the top level management.
 2. It executes (implements) the policies and plans which are made by the top level
management.
3. It co-ordinate the activities of all the departments.
4. They also have to communicate with the top level Management and the lower level
management.
5. They spend more time in co-ordinating and communicating.
6. They prepare short-term plans of their departments which are generally made for 1 to 5
years.
7. The middle Level Management has limited authority and responsibility. They are
intermediary between top and lower management. They are directly responsible to the
chief executive officer and board of directors.
8. Require more managerial and technical skills and less conceptual skills.
Lower Level of Management
The lower level management consists of the Foremen and the Supervisors. They are selected by
the middle level management. It is also called Operative / Supervisory level or First Line of
Management.
The lower level management performs following activities :-
1. Lower level management directs the workers / employees.
2. They develops morale in the workers.
3. It maintains a link between workers and the middle level management.
4. The lower level management informs the workers about the decisions which are taken by
the management. They also inform the management about the performance, difficulties,
feelings, demands, etc., of the workers.
5. They spend more time in directing and controlling.
6. The lower level managers make daily, weekly and monthly plans.
7. They have limited authority but important responsibility of getting the work done from
the workers. They regularly report and are directly responsible to the middle level
management.
8. Along with the experience and basic management skills, they also require more technical
and communication skills.
9. Top Level of Management
It consists of board of directors, chief executive or managing director. The top
management is the ultimate source of authority and it manages goals and policies for an
enterprise. It devotes more time on planning and coordinating functions.
The role of the top management can be summarized as follows -
1. Top management lays down the objectives and broad policies of the enterprise.
2. It issues necessary instructions for preparation of department budgets, procedures,
schedules etc.
3. It prepares strategic plans & policies for the enterprise.
4. It appoints the executive for middle level i.e. departmental managers.
5. It controls & coordinates the activities of all the departments.
6. It is also responsible for maintaining a contact with the outside world.
7. It provides guidance and direction.
8. The top management is also responsible towards the shareholders for the
performance of the enterprise.
10. Middle Level of Management
The branch managers and departmental managers constitute middle level. They are
responsible to the top management for the functioning of their department. They devote
more time to organizational and directional functions. In small organization, there is only
one layer of middle level of management but in big enterprises, there may be senior and
junior middle level management. Their role can be emphasized as -
1. They execute the plans of the organization in accordance with the policies and
directives of the top management.
2. They make plans for the sub-units of the organization.
3. They participate in employment & training of lower level management.
4. They interpret and explain policies from top level management to lower level.
5. They are responsible for coordinating the activities within the division or
department.
6. It also sends important reports and other important data to top level management.
7. They evaluate performance of junior managers.
8. They are also responsible for inspiring lower level managers towards better
performance.
11. Lower Level of Management
Lower level is also known as supervisory / operative level of management. It consists of
supervisors, foreman, section officers, superintendent etc. According to R.C. Davis,
“Supervisory management refers to those executives whose work has to be largely with
personal oversight and direction of operative employees”. In other words, they are
concerned with direction and controlling function of management. Their activities
include -
1. Assigning of jobs and tasks to various workers.
2. They guide and instruct workers for day to day activities.
3. They are responsible for the quality as well as quantity of production.
4. They are also entrusted with the responsibility of maintaining good relation in the
organization.
5. They communicate workers problems, suggestions, and recommendatory appeals
etc to the higher level and higher level goals and objectives to the workers.
6. They help to solve the grievances of the workers.
7. They supervise & guide the sub-ordinates.
8. They are responsible for providing training to the workers.
9. They arrange necessary materials, machines, tools etc for getting the things done.
10. They prepare periodical reports about the performance of the workers.
11. They ensure discipline in the enterprise.
12. They motivate workers.
13. They are the image builders of the enterprise because they are in direct contact
with the workers.