Management Concepts – The Four Functions of Management For any kind of organization to run smoothly in achieving their set

goals and objectives they need to implement management concepts. To plan for it, there are four basic management concepts that allow any organization to handle planned, tactical and set decisions. What are those plans? The answer lies here…

Any organization, whether new or old, whether small or big need to run smoothly and achieve the goals and objectives which it has set forth. For this they had developed and implemented their own management concepts. There are basically four management concepts that allow any organization to handle the tactical, planned and set decisions. The four basic functions of the management are just to have a controlled plan over the preventive measure. The four functions of management are:

The base function is to: Plan It is the foundation area of management. It is the base upon which the all the areas of management should be built. Planning requires administration to assess; where the company is presently set, and where it would be in the upcoming. From there an appropriate course of action is determined and implemented to attain the company’s goals and objectives Planning is unending course of action. There may be sudden strategies where companies have to face. Sometimes they are uncontrollable. You can say that they are external factors that constantly affect a company both optimistically and pessimistically. Depending on the conditions, a company may have to alter its course of action in accomplishing certain goals. This kind of preparation,

The third function is to: Direct Directing is the third function of the management. establish and maintain relationships. opportunities and threats. Through this process. It is very important to maintain a productive working environment. Here they should have a study of strengths and weaknesses.arrangement is known as strategic planning. management ought to look at the different divisions or departments. While determining the inside directorial configuration. getting organized. The subsequent function is to: Organize The second function of the management is getting prepared. department dynamics. management analyzes inside and outside factors that may affect the company and so objectives and goals. In strategic planning. For management to do this efficiently. And this can be done . And here lies the reason why managers focus on motivating their employees. They come about with prize and incentive programs based on job performance and geared in the direction of the employees requirements. management will now determine the inside directorial configuration. building positive interpersonal relationships. and try to find out the best way to handle the important tasks and expenditure of information within the company. Management determines the division of work according to its need. and also assign required resources. It also has to decide for suitable departments to hand over authority and responsibilities. They also see to the harmonization of staff. communication. and problem solving. and department leadership. Management must organize all its resources well before in hand to put into practice the course of action to decide that has been planned in the base function. it has to be very practical and ample. Employees those which are highly provoked generally surpass in their job performance and also play important role in achieving the company’s goal. This helps them to assist the staff in achieving the company’s goals and also accomplishing their personal or career goals which can be powered by motivation. Working under this function helps the management to control and supervise the actions of the staff.

only with Effective communication. Management not only has to see the needs of accomplishing the goals but also has to look in to the process that their way is feasible for the company. the success where it attains the objectives and goals of the organizations. The finest technique of finding the areas that requires improvement is to ask themselves and others at regular intervals. Effective and efficient management leads to success. management should higher standards. The controlling processes as in comparison with other three. Management can also recognize any further developing problems that need corrective actions. the last of four functions of management. . This study on comparison of both decides further corrective and preventive actions. This leads to better relationship and helps the managers for better directing plans. Nature of management can be described as follows. The final function is to: Control Control. help managers to become more effective communicators. includes establishing performance standards which are of course based on the company’s objectives. With this management can make out any probable problems. is unending process or say continuous process. Continuous Process: Management is a never ending process. management had to lower their standards as per requirement. Management is an unending process as past decisions always carry their impact for the future course of action. On the contrary. When these points are studied by the management then it is necessary to compare both the things. It will remain the part of organization till the organization itself exists. Of course for achieving the ultimate goal and aim management need to work creatively in problem solving in all the four functions. It also involves evaluating and reporting of actual job performance. how well they are doing. They should straightforwardly speak to the employee or department having problem. Understanding the communication process and working on area that need improvement. It helps them in taking necessary preventive measures against the consequences. In an effort of solving performance problems. if there are inadequate resources or disallow other external factors standards from being attained.

Management also uses some principles and specific methods. Science tells about the causes and effects of applications and is based on some specific principles and procedures. experience and creativity for achievement of desired results.e. economics. techniques to mange business changes itself over a period of time. Management is a group activity. knowledge. Multidisciplinary: Management is basically multidisciplinary. Though management has developed as a separate discipline it draws knowledge and concepts of various other streams like sociology. Management is a vital part of group activity. Management can not perform in absence of authority. Dynamic: Management is dynamic in nature i. it exists everywhere in universe wherever there is a human activity. System of authority: Authority is power to get the work done by others and compel them to work systematically. Management links ideas and concepts of all these disciplines and uses them for good-self of the organization. he unites with his co-workers and work together as an organized group to achieve what he can not achieve individually. The basic principles of management can be applied any where whether they are business or nonbusiness organization. Authority and responsibility depends upon position of manager in organization. As no individual can satisfy all his needs himself. Management is considered as science.e. statistics etc. Management is goal oriented: Management is a goal oriented activity. Management is Science. psychology. These are formed by continuous observations. .Universal in Nature: Management is universal in nature i. It works to achieve some predetermined objectives or goals which may be economic or social. Management is an art: Management is considered as art as both requires skills.

money etc. who are superiors & who are subordinates. These resources are coordinated.Management utilizes all the physical & human resources productively. This helps in cost reduction. Essentials for Prosperity of Society . It makes use of experts. knowledge. it establishes effective authority & responsibility relationship i. All jobs should be cleared to everyone. With the change is external environment. If employees and machines are producing its maximum there is no under employment of any resources. Establishes Equilibrium . training and qualification. By defining objective of organization clearly there would be no wastage of time.It enables the organization to survive in changing environment. It is responsible for growth and survival of organization. It keeps in touch with the changing environment. and proper utilization and avoids wastage. the initial co-ordination of organization must be changed. Management uses physical.It gets maximum results through minimum input by proper planning and by using minimum input & getting maximum output. Reduces Costs . Management converts disorganized resources of men. This leads to efficacy in management. assembles and organizes the resources. professional and these services leads to use of their skills. machines. Optimum Utilization of Resources . Management fills up various positions with right persons. who is accountable to whom. human and financial resources in such a manner which results in best combination. integrates the resources in effective manner to achieve goals. money and effort. who can give instructions to whom. Establishes Sound Organization . having right skills.Efficient management leads to better economical production which helps in turn to increase the welfare of people.e. To establish sound organizational structure is one of the objective of management which is in tune with objective of organization and for fulfillment of this. directed and controlled in such a manner that enterprise work towards attainment of goals. into useful enterprise. So it adapts organization to changing demand of market / changing needs of societies. Management provides maximum utilization of scarce resources by selecting its best possible alternate use in industry from out of various uses. It directs group efforts towards achievement of predetermined goals.Importance It helps in Achieving Group Goals .It arranges the factors of production. Good management makes a difficult task easier by avoiding wastage of scarce .No overlapping of efforts (smooth and coordinated functions).

That is why he aims at producing something that has never existed before which requires combination of intelligence & imagination. Every artist becomes more and more proficient through constant practice.F. Creativity: Every artist has an element of creativity in line. Similarly management as an art is also personalized. Organization comes with new products and researches beneficial for society. 2. It combines human and non-human resources in useful way so as to achieve desired results. experience and personality. Hussain is recognized for his style. A manager can never be successful just by obtaining degree or diploma in management. Rahul Bajaj) whereas others as bad.resource. E. An art may be defined as personalized application of general theoretical principles for achieving best possible results. Art has the following characters 1. It tries to produce sweet music by combining chords in an efficient manner. that is why some managers are known as good managers (like Aditya Birla. situations etc to use them appropriately. It improves standard of living. Perfection through practice: Practice makes a man perfect. Art Art implies application of knowledge & skill to trying about desired results. That is why the level of success and quality of performance differs from one person to another. dimensions. E.g. he must also know how to apply various principles in real situations by functioning in capacity of manager. It increases the profit which is beneficial to business and society will get maximum output at minimum cost by creating employment opportunities which generate income in hands.g. to become a good painter. Personal Skill: Although theoretical base may be same for every artist. Every manager has his own way of managing things based on his knowledge. the person may not only be knowing different colour and brushes but different designs. there are several qualified painters but M. It is very important to know practical application of theoretical principles. Similarly . 3. 4. Management is also creative in nature like any other art. Practical Knowledge: Every art requires practical knowledge therefore learning of theory is not sufficient. but each one has his own style and approach towards his job.

. It is called an art because managing requires certain skills which are personal possessions of managers. Goal-Oriented: Every art is result oriented as it seeks to achieve concrete results. management is also directed towards accomplishment of pre-determined goals. A manager to be successful in his profession must acquire the knowledge of science & the art of applying it. Science provides the knowledge & art deals with the application of knowledge and skills. bread and butter etc. Same way it is not sufficient for manager to first know the principles but he must also apply them in solving various managerial problems that is why.managers learn through an art of trial and error initially but application of management principles over the years makes them perfect in the job of managing. The old saying that “Manager are Born” has been rejected in favor of “Managers are Made”. It has been aptly remarked that management is the oldest of art and youngest of science. a person cannot become a good singer unless he has knowledge about various ragas & he also applies his personal skill in the art of singing. The above mentioned points clearly reveals that management combines features of both science as well as art. To conclude. material. we can say that management is an art therefore it requires application of certain principles rather it is an art of highest order because it deals with moulding the attitude and behavior of people at work towards desired goals.). Management as both Science and Art Management is both an art and a science.g. Managers use various resources like men. 5. Therefore management is a judicious blend of science as well as an art because it proves the principles and the way these principles are applied is a matter of art. Science teaches to ’know’ and art teaches to ’do’. science and art are not mutually exclusive but they are complementary to each other (like tea and biscuit. It is considered as a science because it has an organized body of knowledge which contains certain universal truth. money. E. we can say that science is the root and art is the fruit. In the same manner. Thus. machinery & methods to promote growth of an organization.

they are expanded. Similarly if .e. They have been developed through experiments & practical experiences of large no.g.law of gravitation which can be applied in all countries irrespective of the time. therefore it also establishes cause and effect relationship. E. This principle is applicable to all type of organization . the principle that earth goes round the sun has been scientifically proved.e. 3.g.Scientific principles represents basic truth about a particular field of enquiry. These principles may be applied in all situations. Management also contains some fundamental principles which can be applied universally like the Principle of Unity of Command i.business or non business. lack of balance. of managers.Scientific principles are derived through scientific investigation & researching i. in effectiveness. when metals are heated.g. one boss. Universally acceptance principles . it is observed that fair remuneration to personal helps in creating a satisfied work force.g.Principles of science lay down cause and effect relationship between various variables. These principles are developed through scientific method of observation and verification through testing. lack of parity (balance) between authority & responsibility will lead to ineffectiveness.e. the effect can be ascertained easily i. Cause & Effect Relationship .e. The cause is heating & result is expansion.g. they are based on logic. at all time & at all places. . Management principles are also based on scientific enquiry & observation and not only on the opinion of Henry Fayol. Experimentation & Observation .Science Science is a systematic body of knowledge pertaining to a specific field of study that contains general facts which explains a phenomenon. E. E. If you know the cause i. 2. E. one man. It establishes cause and effect relationship between two or more variables and underlines the principles governing their relationship. Science is characterized by following main features: 1. The same is true for management. E.

4. Test of Validity & Predictability .A profession must have a systematic body of knowledge that can be used for development of professionals. Over a large few decades. Specialized Knowledge . Ernest Dale has called it as a Soft Science. Principles of management can also be tested for validity. Every professional must make deliberate efforts to acquire expertise in the principles and techniques. The performance of 1st person will be better than 2nd. Since it is a social process. Moreover future events can be predicted with reasonable accuracy by using scientific principles.workers are given bonuses. and chemistry etc. It is a flexible science & that is why its theories and principles may produce different results at different times and therefore it is a behavior science. they stand the test of time. A profession may be defined as an occupation that requires specialized knowledge and intensive academic preparations to which entry is regulated by a representative body.e.g. It cannot be denied that management has a systematic body of knowledge but it is not as exact as that of other physical sciences like biology. H2 & O2 will always give H2O. . therefore it falls in the area of social sciences. The essentials of a profession are: 1. reduces productivity of organization. growing competition etc have led to an increased demand for professionally qualified managers.g.one having single boss and one having 2 bosses. Each time these tests will give same result. The main reason for the inexactness of science of management is that it deals with human beings and it is very difficult to predict their behavior accurately. physics. separation of ownership from management. As a result of these developments the management has reached a stage where everything is to be managed professionally. Similarly a manager must have devotion and involvement to acquire expertise in the science of management. E. fair wages they will work hard but when not treated in fair and just manner. The task of manager has been quite specialized.Validity of scientific principles can be tested at any time or any number of times i. E. principle of unity of command can be tested by comparing two persons . factors such as growing size of business unit.

an institute of Charted Accountants of India establishes and administers standards of competence for the auditors but the AIMA however does not have any statuary powers to regulate the activities of managers. 5. 4. It does not restrict the entry in managerial jobs for account of one standard or other. Social Obligations . 3. A code of conduct is enforced by a representative association to ensure self discipline among its members. Code of Conduct . integrity and special ethics. For example. existance of a representative body is a must. . Many institutes of management have been set up for imparting education and training.2. Their actions are influenced by social norms and values. e. Representative Association . Competent education and training facilities do not exist. No one can practice a profession without going through a prescribed course. Similarly a manager is responsible not only to its owners but also to the society and therefore he is expected to provide quality goods at reasonable prices to the society. even then it is not a full fledged profession because: a. No minimum qualifications have been prescribed for managers. All managers are supposed to abide by the code formulated by AIMA. For example.Profession is a source of livelihood but professionals are primarily motivated by the desire to serve the society.Members of a profession have to abide by a code of conduct which contains certain rules and regulations. of institutes and universities to impart education & training for a profession. it is quite clear that management fulfills several essentials of a profession. MBA may be preferred but not necessary. c. a CA cannot audit the A/C’s unless he has acquired a degree or diploma for the same but no minimum qualifications and a course of study has been prescribed for managers by law. For example. b.There are no. d. The AIMA has prescribed a code of conduct for managers but it has no right to take legal action against any manager who violates it. Formal Education & Training . Any member violating the code of conduct can be punished and his membership can be withdrawn.For the regulation of profession. From above discussion. No management association has the authority to grant a certificate of practice to various managers. norms of honesty.

it is an art of getting things done through & with the people in formally organized groups. That is why Haymes has rightly remarked. setting of major objectives. initiating and bringing together the various elements. plans & policies. leadership & control of the efforts of the groups towards some common goals”. coordinating. actuating. employees and society. “Administration means guidance. Managers are responsible to many groups such as shareholders. A regulatory code may curtail their freedom. Whereas.f. It lays down basic principles of the enterprise. Management is an executing Administration It is concerned with formulation of broad objectives. In other words. “Administration means overall determination of policies. “The slogan for management is becoming . integrating the diverse organizational components while sustaining the viability of the organization towards some predetermined goals. Functions 2. Managers are known by their performance and not mere degrees. also profits most’. According to Newman.” According to Theo Haimann. The ultimate goal of business is to maximize profit and not social welfare.’He who serves best. the identification of general purposes and laying down of broad programmes and projects”. Usage / Applicability On the Basis of Functions: Basis Meaning Management Management is an art of getting things done through others by directing their efforts towards achievement of pre-determined goals. Nature Administration is a decision- . g. It refers to the activities of higher level. The difference between Management and Administration can be summarized under 2 categories: 1. management involves conceiving. h.

Administration represents owners of the enterprise who earn return on their capital invested & profits in the form of dividend. making function. Management constitutes the employees of the organization who are paid remuneration (in the form of salaries & wages). Administration decides what is to be done & when it is to be done. Conceptual and Human skills Top level function Function Management is a doing function because managers get work done under their supervision. opinions. clubs. Process Management decides who should as it & how should he do it. govt. policies. beliefs & decisions of the managers.administrative management function and .e.function. Every manager is concerned with both . The administration is influenced by public opinion. schools. The management decisions are influenced by the values. profit-making organization. there is no difference between management & administration.e. Administration is a thinking function because plans & policies are determined under it. hospitals etc. Influence Status Practically. religious organizations. Administration It is applicable to non-business concerns i. customs etc. Skills Level Technical and Human skills Middle & lower level function On the Basis of Usage: Basis Applicability Management It is applicable to business concerns i.

The Figure above clearly shows the degree of administration and management performed by the different levels of management .operative management function as shown in the figure. management. However. the managers who are higher up in the hierarchy denote more time on administrative function & the lower level denote more time on directing and controlling worker’s performance i.e.