Management

Management is the coordination and administration

of tasks to achieve a goal. Such administration activities
include setting the organization’s strategy and
coordinating the efforts of staff to accomplish these
objectives through the application of available resources.
Management refer to the seniority structure of staff
members within an organization. To be an effective
manager, to develop a set of skills, including planning,
communication, organization and leadership.
 CONCEPTS:
A manager needs to understand a few simple ideas to
employ the five basic operations. These concepts are
essential to ensure their team comes together to reach the
business’ goals:
Control: Employees of an organization need to
understand the goals that they are aiming for as well as the
measurement that will be used to determine whether they
have been successful. Different staff members in a company
have different roles that entail separate levels of
responsibility. A manager must have control over what the
members do, how they do it and how to measure their
progress. Control over these factors helps a manager reach
success.
Planning: 
The best managers know that planning is critical before
the implementation of any strategy, but it is also an
ongoing activity. Planning does not end when
implementation begins. Rather, management needs to
be prepared to answer the questions of who, what,
when and where a team is working to implement the
organization’s mission. Planning should include
selecting objectives as well as implementing them.
 Staffing: Staffing is an underappreciated
but crucial function of management. Managers
need to ensure that they have the right people
for the job, but they also need to pay attention
to issues like organizing workplace policies.
The company needs to retain the best talent by
providing incentives such as benefits, paid time
off and a thorough training program.
 DEFINITIONS
Harold Koontz:

“Management is the art of getting things done

through and with people in formally organized
groups.” Koontz has emphasized that management is
getting the work done with the co-operation of people
working in the organization.
 Henry Fayol:

“To manage is to forecast and plan, to organize, to

command, to co-ordinate, and to control.” Fayol
described management as a process of five functions
such as planning, organizing, commanding,
coordinating and controlling.
 George R. Terry
“Management is a distinct process consisting of
activities of planning, organizing, actuating and
controlling, performed to determine and accomplish
stated objectives with the use of human beings and
other resources.” Though Terry has described four
functions to be a part of management process but
managerial functions are classified into five categories.
 Stanley Vance:

“Management is simply the process of decision-

making and control over the action of human beings
for the express purpose of attaining pre­determined
goals.” Stanley Vance has emphasized decision-making
and control over the actions of employees for reaching
the enterprise goals.
IMPORTANCE OF MANAGEMENT
Management for every business organization are:
1. Management helps in Achieving Group Goals
2. Management Increases Efficiency
3. Management Creates a Dynamic Organization
4. Management helps in Achieving Personal Objectives
5. Management helps in the Development of the Society.
 Achieving Group Goals
Organization consists of number of persons who
work as a group. Management helps in achieving
group goals by giving a common direction to the
individual effort.
For example, an employee’s objective is to earn
maximum wages whereas the organizational objective
is to maximize output. Employees can achieve their
objectives by maximizing output which helps in the
achievement of organizational goal too. 
Management Increases Efficiency:
The main aim of every manager in any organization is
to minimize the cost and to increase the output
through effective planning, organizing, directing,
staffing, controlling etc. Efficiency increases when we
use fewer resources (i.e. inputs) and achieve more
benefit or output.
In any organization, input resources are men, money,
material and machinery. Management uses these
inputs efficiently by properly allocating them to reduce
the wastage which ultimately decreases cost and thus
leads to higher profits.
Management Creates a Dynamic Organization:

The environment in which an organization works is

subject to continuous changes and the people working
in the organization resist change because they don’t
want to move from a familiar and secure environment
to a new environment.
 Personal Objectives:

Management not only helps in achieving the

organizational objectives but also the personal
objectives of the employees. With the help of self
motivation and leadership techniques, management
helps individuals to develop spirit of cooperation,
commitment and team spirit etc. that help them to
achieve their personal goals as well.
 Development of the Society:

An organization has many obligations towards

different groups that constitute it. The process of
fulfilling all the objectives must help in growth and
development of the organization as well as society.
Levels of Management
The term “Levels of Management’ refers to a line
of demarcation between various managerial positions
in an organization. The number of levels in
management increases when the size of the business
and work force increases and vice versa. The level of
management determines a chain of command, the
amount of authority & status enjoyed by any
managerial position.
 Middle 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.

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.

It also sends important reports 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 of Management

Lower level is also known as supervisory / operative level of management. It consists of supervisors,
foreman, section officers, superintendent etc. “Supervisory management refers to those executives
whose work has to be largely with personal oversight and direction of operative employees”. They are
concerned with direction and controlling function of management. 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 the higher level
and higher level goals and objectives to the workers.

They help to solve the grievances of the workers. 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.
 Objectives:
Getting Maximum Results with Minimum Efforts:
  The main objective of management is to secure
maximum outputs with minimum efforts & resources.
Management is basically concerned with thinking &
utilizing human, material & financial resources in
such a manner that would result in best combination.
This combination results in reduction of various costs.
Increasing the Efficiency of factors of Production:

Through proper utilization of various factors of

production, their efficiency can be increased to a great
extent which can be obtained by reducing spoilage,
wastages and breakage of all kinds, this in turn leads to
saving of time, effort and money which is essential for the
growth & prosperity of the enterprise.
Maximum Prosperity for Employer & Employees:

Management ensures smooth and coordinated

functioning of the enterprise. This in turn helps in
providing maximum benefits to the employee in the shape
of good working condition, suitable wage system, incentive
plans on the one hand and higher profits to the employer
on the other hand.
Human betterment & Social Justice - Management
serves as a tool for the upliftment as well as betterment
of the society. Through increased productivity &
employment, management ensures better standards of
living for the society. It provides justice through its
uniform policies.
 Functions of Management
“Management is a set of principles relating to the
functions of planning, organizing, directing, and
controlling, and the applications of these principles in
harnessing physical, financial, human, and
informational resources efficiently and effectively to
achieve organizational goals”.
functions of management
Planning: Planning is future-oriented and determines an
organization’s direction. It is a rational and systematic way
of making decisions today that will affect the future of the
company. It is a kind of organized foresight as well as
corrective hindsight. It involves predicting of the future as
well as attempting to control the events. It involves the
ability to foresee the effects of current actions in the long
run in the future.
 An effective planning program incorporates the effect of
both external as well as internal factors. The external
factors are shortages of resources; both capital and
material, general economic trend as far as interest rates and
inflation are concerned, dynamic technological
advancements, increased governmental regulation
regarding community interests, unstable international
political environments, etc.
The internal factors that affect planning are limited growth
opportunities due to saturation requiring diversification,
changing patterns of the workforce, more complex
organizational structures, decentralization, etc
 Organizing

Organizing requires a formal structure of authority

and the direction and flow of such authority through
which work subdivisions are defined, arranged and
coordinated so that each part
relates to the other part in a united and coherent
manner so as to attain the prescribed objectives.
Henry Fayol “To organize a business is to provide it
with everything useful or its functioning i.e. raw
material, tools, capital and personnel’s”.
Thus the function of organizing involves the
determination of activities that need to be done in
order to reach the company goals, assigning these
activities to the proper personnel, and delegating
the necessary authority to carry out these activities
in a coordinated and cohesive manner.
 Staffing
Staffing is the function of hiring and retaining a
suitable work-force for the enterprise both at
managerial as well as non-managerial levels. It
involves the process of recruiting, training,
developing, compensating and evaluating
employees and maintaining this workforce with
proper incentives and motivations. Since the
human element is the most vital factor in
the process of management, it is important to
recruit the right personnel.
Koontz & O’Donnell, “Managerial function of
staffing involves manning the organization
structure through the proper and effective
selection, appraisal & development of personnel
to fill the roles designed in the structure”.
This function is even more critically important since
people differ in their intelligence, knowledge, skills,
experience, physical condition, age and attitudes, and
this complicates the function. Hence, management
must understand, in addition to the technical and
operational competence, the sociological and
psychological structure of the workforce.
 Directing

The directing function is concerned

with leadership, communication, motivation, and
supervision so that the employees perform their
activities in the most efficient manner possible, in
order to achieve the desired goals.
The leadership element involves issuing of
instructions and guiding the subordinates about
procedures and methods.
The communication must be open both ways so that
the information can be passed on to the subordinates
and the feedback received from them.
Motivation is very important since highly motivated
people show excellent performance with less direction
from superiors.
Supervising subordinates would lead to continuous
progress reports as well as assure the superiors that the
directions are being properly carried out.
 Controlling

The function of control consists of those activities

that are undertaken to ensure that the events do not
deviate from the pre-arranged plans. The activities
consist of establishing standards for work
performance, measuring performance and comparing
it to these set standards and taking corrective actions
as and when needed, to correct any deviations.
Koontz & O’Donnell, “Controlling is the measurement
& correction of performance activities of subordinates
in order to make sure that the enterprise objectives and
plans desired to obtain them as being accomplished”.
The controlling function involves:
a. Establishment of standard performance.
b. Measurement of actual performance.
c. Measuring actual performance with the pre-
determined standard and finding out the deviations.
d. Taking corrective action.