Management: Definition, Nature, Functions, Importance, Skills, Roles, Levels

 

Topics Covered Management: ·        Definition ·        Nature ·        Functions ·        Importance ·        Management and Administration ·        Skills ·        Roles ·        Levels

Definition of Management

•          Management is the accomplishment of results through the efforts of other people. (Lawrence. A. Appley).

•          Management is the art of getting things done through and with the people in formally organized groups. (Koontz. H).

 Introduction to Management

 •         Management is a process of planning, organising, actuating and controlling to determine and accomplish the objectives by the use of people and resources. (Terry G)

•          Management is the process by which managers create, direct, maintain and operate purposive organisations through systematic, coordinated, cooperative human effort. (Mc Fariand)

•          It is the coordination of all resources through the process of planning organising, directing and controlling in order to attain stated objectives. (Sisk)

Some authorities on the subject have defined management as a decision- making, rule-making, and rule-enforcing body.

According to Prof. Moore, management means decision-making. Others like Appley call it personnel administration. For the sake of simplicity and convenience, we can broadly define it as: "Management is concerned with resources, tasks and goals". It is the process of planning organising, staffing, directing and controlling to accomplish organisational objectives through the coordinated use of human and material resources.

 

Nature of Management

Management is related to regulating human and physical resources in order to achieve organisational goals.

The nature of management can be highlighted as:

1.                  Management is Goal-Oriented: The accomplishment of several management activities advances by its appearance of its planned aims or objective. Management is involved in descriptive action. It continues a facility which supports the operation of communal as well as corporal revenues to fulfil the pre-determined approaches. For simulation, the objective of a business is to claim maximum customer engorgement by developing specialty article additionally at feasible charges. This can be apprehended by exercising desirable persons furthermore bringing about favourable usage connectedly minimal reserves.

2.                  Management integrates Human, Physical and Financial Resources: In an organisation, communal presence functions with non-human reserves like instruments, components, financial inventories, frameworks etc. The entire establishment sticks together communal actions with those reserves. It carries about a conspicuous consonance among the communal, corporal as well as financial reserves.

3.                  Management is Continuous: Management is basically an on-going approach which encompasses responding of difficulties as well as handling various consequences. It exists while considering the determination of difficulties which will achieve adequate grades to recognize it. It is analysed that the objective of an establishment continues as utmost development mechanism. For arresting this destination, complex mechanisms are to be conveyed away furthermore which endures without conclusion. Marketing and broadcasting continues furthermore to be endeavoured for comprehension generally which instructions acquire to be arranged, so this is called as an on-going mechanism.

4.                  Management is all Pervasive: Management continues imperative in conclusive categories of organisations whether it continues political, communal and cultural or business which will handle and commands complex behaviours towards a perfect approach. We see that clubs, hospitals, political parties, colleges, hospitals, business firms all require management. If more that an individual person is engaged in common work, then under such situation, management plays an important role. It is immaterial of the small firm in trading or large firm, all requires management.

5.                  Management is a Group Activity: Management is not as concerned with individual efforts as it is about groups and team work. It involves the use of teamwork to achieve predetermined goal of management.

6.                  Principles are Dynamic in Nature: Principle is a fundamental truth, which establishes cause and effect relationships of a function within a set- up. Based on integration and supported by practical evidences, the management has framed certain principles. However, these principles are flexible in nature and keep changing with the environment in which the organisation exists. Because of the continuous development in the field, many older principles are replaced by new principles. Continuous researches are being carried out to establish principles in changing society and no principle can be regarded as a final truth. In fact, there is nothing permanent in the landslide of management.

7.                  Principles are Relative, not absolute: Management principles are relative, not absolute and they should be applied according to the need of the organisation. The organisational difference between organisations may exist because of time, place, socio-cultural factors, etc. However, individuals working within the same organisation may also differ. Thus, a particular management principle has different strengths in different conditions. Therefore, principles of management should be applied in the light of prevailing conditions. Allowance must be made for different changing environment.

8.                  Management is a Science, Art and Profession: There is a controversy whether management is science or art. However, management is both a science and an art because it follows principles of science and requires the skills of an art. Management has been regarded as a profession by many while many have suggested otherwise.

9.                  Management is Decision-Making: Management process involves decision- making at various levels. This usually includes delegation of work.. Decision-making basically involves selecting the most appropriate alternative out of the several alternatives available. If there is only one alternative, the question of decision-making does not arise. The quality of the alternative that a manager selects determines the organisation‟s performance and the future of the entire organisation rests on the degree of right decisions are made by this class of executives. Therefore, the success or failure of managers can be judged by the quality of decisions that they make.

10.              It is a multidisciplinary phenomenon.

11.              Its principles are flexible, relative and not absolute.

12.              It is both science and art.

13.              It can be taken as a profession.

14.              Finally, it is universal.

15.              It is an organised activity involving decision making, with existence of objectives.

16.              It is working with the people, through establishing goals by utilising available resources.

 

 

Management Functions

Management can be called off as a social process which is responsible for economic and accurate arrangement along with rules of operation for a particular organisation in fulfilling desired request. This is a dynamic way as it contains several constituents and activities that are different in terms of operations that could be in areas of marketing, finance, purchase, etc. Instead, such activities are similar among each other as per the different levels of manager status.

Logically, it is easy to bifurcate the function of management while practically such can place one above another in nature. Every function will take the shape into other and further will affect the performance.

 

1.         Planning: Planning is the foremost feature of a management which behaves with plans for future course of action and decides for the most correct course of actions in getting fixed goals. According to Koontz, planning is the advance preparation of action to be taken related to any work. This will link from the starting of a phase to the implementation phase. It is a future direction to be taken which could be worked in problem solving exercises and decision making. It is studied that planning shows related course of action to meet the required goals which involves straight and clear thinking about ways and means for doing fixed goals. Planning serves as a correct usage among human as well as non-human resources.

2.         Organising: Organising is related to involvement of physical, financial, human resources as well as development of productive relationships which appears amongst themselves for obtaining organisational criteria‟s. Henry Fayol relates organisation as arranging a business which will give everything required for working and functioning. Practically, organising a business needs finding and showing human and non-human constituents for organisational arrangements. The process of Organising includes:

•          Exploring activities

•          Classifying activity groups

•          Declaration of responsibilities

•          Delegating authority and responsibility

•          Functioning with authority and coordination

3.         Staffing: It involves association of manpower to support an organisation function. With the advent of new technologies and spreading of business avenues, staffing play an important role in catering services rendered by organisations. The idea of staffing is assign right job for right people. Kootz and O‟Donell explained staffing as manpower involvement in an organisation as per desired selection Staffing involves:

•          Recruitments after planning

•          Processes related to recruitment, selection along with placement

•          Activities related to Training and development

•          Basic remuneration to be offered

•          Appraisals

•          Promotions and transfers

 

4.         Directing: This is the sector of managerial function which allows organisational methods to work correctly and efficiently in obtaining organisational challenges. This is an inter-personnel concern of a management that influences, guide, supervise and motivate sub-ordinates for obtaining organisational parameters. Direction has the following elements:

•          Supervision: Inspecting the work of sub-ordinates with the help of superiors.

•          Motivation: This involves the work of a superior to inspire, stimulate and encourage with passion to work.

•          Leadership: It is the capability which shows the guidance given by mangers to his subordinate to work in certain direction.

•          Communications: This involves sharing, communicating and passing of related information from one person to another. This serves as a bridge of understanding.

 

5.         Controlling: It implies measurement of approach against particular standards with alterations in deflection, if any, will make sure the approach of organisational objectives. The idea behind controlling is to make sure that all will come in conformity with particular standards. A good effective mechanism will handle to think about deflection earlier at times when it actually occurs. Controlling, as per Theo Haimann is basically a mechanism of analysing progress that happens towards particular aims and objectives if required to correct any deflection. Koontz and O‟Donell explained controlling as mechanism that involves correction of activities of subordinates to ensure about enterprise objectives with related plans to get them arrived. Therefore, controlling has the following steps:

•          Establishing constant measures

•          Measure real performance

•          Comparing performances with standards and locating deviations

•          Corrective action

 

 

Importance of Management

 

The importance of management may be traced in the following contexts:

1.         Effective Utilisation of Resources: Management tries to make effective utilisation of various resources. The resources are scarce in nature and to meet the demand of the society, their contribution should be maximum for the general interests of the society. The management not only decides in which particular alternative a particular resource should be used, but also takes actions to utilise it in that particular alternative in the best way.

2.         Development of Resources: Management develops various resources. This is true with human as well as non-human factors. Lawrence Appley has emphasised that, management is the development of people. However, most of the researches for resource development are carried on in an organised way and management is involved in these organised activities. Thus, through the development of resources, management improves the quality of lives of people in the society.

3.         To Incorporate Innovations: Today, changes are occurring at a very fast rate in both technology and social process and structure. These changes need to be incorporated to keep the organisations alive and efficient. Business organisations are moving from primitive to sophisticated. Therefore, they require high degree of specialisation, high level of competence and complex technology. All these require efficient management so that organisations work in the most efficient way.

4.         Integrating Various Interest Groups: In the organised efforts, there are various interest groups and they put pressure over other groups for maximum share in the combined output. For example, in the case of a business organisation, there are various pressure groups such as shareholders, employees, government, etc. These interest groups have pressure on an organisation. In a more advanced and complex society, more such pressure is on the organisation. Management has to balance these pressures from various interest groups.

5.         Stability in the Society: Management provides stability in the society by changing and modifying the resources in accordance with the changing environment of the society. In the modern age, more emphasis is on new inventions for the betterment of human beings. These inventions make old systems and factors mostly obsolete and inefficient. Management provides integration between traditions and new inventions and safeguards society from the unfavourable impact of these inventions so that continuity in social process is maintained.

 

 

Management and Administration

 

Management & Administration  There are three views 1. Administration is above management. 2. Administration is part of Management  3. Management & Administration are same.   Distinction Between Management And Administration Administration is a higher-level function that focuses on policy-making and setting the organization's strategic direction, while management is the execution of those policies and plans to achieve goals. Administration determines what needs to be done and why, whereas management focuses on how it gets done by overseeing operations and coordinating resources.  Here's a breakdown of their distinctions: Scope: Administration is a broader concept, encompassing policy-making and strategic direction, often associated with top-level decision-making. Management is a narrower function, focused on the practical implementation of these policies and achieving specific operational objectives.  Function: Administration: is concerned with setting organizational objectives, defining policies, and making strategic decisions.  Management: is responsible for the execution of these policies, resource coordination, supervision of employees, and the day-to-day operations of the organization.  Focus: Administration: focuses on the "what" and "why" of an organization.  Management: focuses on the "how," "who," and "when" of operations.  Role: Administration: involves defining the overall structure and purpose of the organization.  Management: involves the actual process of planning, organizing, staffing, directing, and controlling to achieve these objectives.  Applicability: Administration is often associated with government, public sector, and educational institutions.  Management is more commonly associated with private, business-oriented organizations.  Level: Administration generally operates at the top or executive level of an organization.  Management functions at various levels, from top management to lower operational levels, to ensure efficient execution.

According to Theo Haimann, “Administration means overall determination of policies, setting of major objectives, the identification of general purposes and lying down of broad programmes and projects.” It refers to the activities of higher level. It lays down basic principles of the initiative. According to Newman, “Administration means guidance, leadership and control of the efforts of the groups towards some common goals.”

 

Management involves conceiving, initiating and bringing together the various elements and coordinating, actuating, integrating the diverse organisational components while sustaining the viability of the organisation towards some pre-determined goals. In other words, it is an art of getting things done with the help of others in formally organised groups.

The difference between management and administration can be summarised under two categories:

•          Functions

•          Usage / Applicability

Difference between Management and Administration on the basis of Functions.

Sr. No.	Basis	Management	Administration
1	Meaning	Management is an art wherein the efforts of others are redirected to achieve a particular goal via team work.	It is concerned with formulation of broad objectives, plans and policies.
2	Nature	Management is an executing function.	Administration            is            a decision-making function.
3	Process	Management decides who should do something and how he should do it.	Administration resolves what is to be done and when it is to be done. There is no questioning them.
4	Function	Management is a doing function because managers get all the work completed under their supervision.	Administration is a thinking function because plans and policies are determined under it.
5	Skills	Technical and Human skills	Conceptual      and            Human skills
6	Level	Middle and      lower   level function	Top level function

 

Difference between Management and Administration on the basis of Usage.

 

Sr. No.	Basis	Management	Administration
1	Applicability	It is applicable to business concerns i.e. profit-making organisations.	It is applicable to non- business concerns i.e. clubs, schools, hospitals etc.
2	Influence	The management decisions are predisposed by the values, opinions, and beliefs and decisions of the managers.	The administration is inclined to abide by public            opinion, government policies, religious organisations, customs etc.
3	Status	Management constitutes the employees       of         the organisation who are paid a fixed monetary remuneration (in the form of salaries and wages).	Administration represents owners of the enterprise who earn return on their capital invested and profits in the form of dividend.

 

Managerial Skills

Professional associations of practicing managers, have  identified important skills for managers. These are Technical Skills, Human Skills and Conceptual skills. Other skills important are communication, effectiveness, interpersonal and design aspects. These are briefly described below:

Primary

·                Technical skills: Adequate Knowledge of and proficiency in a certain specialised field, such as engineering, computers, financial and managerial accounting or manufacturing is essential.

·                Human skills: This includes ability to serve well individually or in group since the idea is that managers interact directly with people.

·                Conceptual Skills: This involves using logic to solve problems, locating opportunities, finding problems and locating faults. This skill will help in selecting critical information among a lots of data by understanding technology and business structure.

Secondary

·                Communication Skills: This skill involves transposing thoughts into words or action. It serves to improve image among colleagues and subordinates with interaction involved among various grounds.

·                Effectiveness Skills: This involves contribution or sharing missions or objectives with focus on customer relation, project management and setting and maintaining performance levels.

·                Interpersonal Skills: It involves regulation and mentoring with diversified factors related to people and culture, to help cultivate a network inside an establishment along with commitment and cooperation.

In today's demanding and dynamic workplace, employees who are invaluable to an organisation must be willing to constantly upgrade their skills and take on extra work outside their own specific job areas. There is no doubt that skills will continue to be an important way of describing what a manager does. An up gradation of individual skills helps in the overall improvement of the organisation as a whole. It gives it the cutting edge over all other contemporaries.

·                Design skill: Koontz and Weibrich added one more skill to the above list. Design skill is the ability to solve problems in ways that will help the organisation. At higher levels, managers should be able to move beyond perceiving a potential problem. They are expected to design a workable solution to a problem in the light of realities they face. If managers merely see a problem and become problem watchers, they will fail.

Role of a Manager 1.         Interpersonal Role •          Figurehead: This includes the traditional role akin to that of the head of a big family; these gestures go a long way in building a rapport with the employees. This role would expect the manager to perform duties of welcoming and felicitating dignitaries, going for business lunches and attending important functions of employees. •          Leader: As a leader, every manager must encourage and persuade his employee to work. He must try to bring together their interpersonal needs with the goal of organisation. He is the sole motivator of the employees working under him which means he must enjoy not just their trust but also their respect. •          Liaison: In his role as a liaison, every manager must develop contacts outside his perpendicular chain of command to collect information for his organization.   2.         Informational Role •          Monitor: As a monitor, the manager has to constantly scan his environment for information, debrief his contacts and his subordinates and decide on unsolicited information, where much of it a result of the network of personal contact developed. •          Disseminator: In the role of a disseminator, the manager passes some information openly to his subordinates who would otherwise have no access to it. •          Spokesman: In this role, the manager informs to satisfy various groups and people who influence his organisation. He assures his shareholders of financial performance. He assures consumer groups that the organisation is fulfilling its social responsibilities. He satisfies the government that the organisation is abiding laws.   3.         Decision Role •          Entrepreneur: In this role, the manager is an idea- seeker who seeks to improve his unit by adapting it to changing conditions in the environment. •          Disturbance Handler: In this role, the manager is expected to seek solutions of various unforeseen problems – for example if there is a strike, lockdown or a major customer goes bankrupt it is the duty of the manager to find a solution. •          Resource Allocator: In this role, the manager must divide work and delegate authority among his subordinates. He must decide who will get what. •          Negotiator: The manager has to spend considerable time in negotiation. As a representative of his company it is the duty of the manager to negotiate with the management for the welfare of the workers, he needs to negotiate with the union leader if there is a strike issue, or the foremen may negotiate with the workers on any grievances they may have.

Levels of Management

Levels of Management In an organisation, there are certain levels defined by the management wherein each level is confined with its nature and activities involved. The levels of management can be classified in three broad categories: •          Top level / Administrative level •          Middle level / Executor level •          Low level / Supervisory / Operative / First-line managers It is seen that different levels has different work area and functions. The role of managers at all the three levels is discussed below:   Top Management •          Determines objectives and policies. •          Designs the basic operating and financial structure of an organisation. •          Provides guidance and direction. •          Lays down standards of performance. •          Maintains good public relations.   Middle Management •          Interprets and explains the policies framed by the top. •          Issues detailed instructions. •          Participates in operating decisions. •          Trains other managers.   Lower Management •          Plans day-to-day operations. •          Assigns jobs to workers. •          Provides supervision and control over work •          Arranges material tools and equipment. •          Maintains discipline.

There are 3 levels of management in the ranking order of an establishment and they are:   Top-level management Middle-level management Lower-level management   Top Level Management They comprise of the senior-most executives of the company. They are normally regarded as the Chairman, the Chief Executive Officer (CEO), the Chief Operating Officer (COO), President and Vice-president (VP). Top management is a team consisting of managers from various operational levels, managing marketing, finance, etc., For instance, Chief Finance Officer (CFO), Vice President (marketing) etc. These top-level managers are accountable for the progress and continuation of the establishment.    Middle Level Management It is the connection between top and lower level managers. They are lower to the top managers and above to the first line managers. They have to: Understand the procedures outlined by the top management Guarantee that their staff has the required workers Designate certain tasks and duties to them, and drive them to accomplish the aspired objectives.   Lower Level Management Managers and supervisors make up the lower level of the management in the hierarchy of the business. Supervisors immediately manage the efforts of the workforce. Their power and ability are defined according to the maps drawn by the top management.   Supervisory management performs a significant task in the system since they coordinate with the genuine workforce and move in directions of the middle management to the employees.