Modern business is very complex and complicated. It requires high degree of technical, professional and managerial ability. Specialisation of working force, mass scale production, continued technological advancements, complexities of human relationship, constant changing socio-economic situations and business opportunities, require an effective and efficient management to tackle these diverse problems.
Meaning
Traditionally management meant getting things done by others. In this context C.S. George said, “Management consists of getting things done through others, a managers is one, who accomplishes objectives by directing the efforts of other.” According to modern thinkers management is a process, an activity, a discipline and an effort to coordinate control and direct individual and group efforts towards attaining the cherished goal of the business.
Management may be viewed with the following approaches:
Management as an Activity
According to this approach management consists of those activities, which are performed by managers in attaining the predetermined objectives of the business. This approach may be referred to Henry Fayol, who classified management activities into the following six categories.
(i) Technical—Production
(ii) Commercial—Buying, selling and exchange.
(iii) Financial—Optimum use of capital.
(iv) Security—Protection of property and person
(v) Accounting—Maintenance, pre-sentation and statistics.
(vi) Managerial—Planning, orga- nising, commanding, co-ordinating and controlling.
According to another functional classification management activities are classified as: (i) Informational,
(ii) Decisional, and (iii) Interpersonal.
Informational Activities : It stresses the communicative part of managerial activities. Management has to receive and give information. He is a link between the subordinates and superiors. The management receives requests, explanations and statements from their subordinates. He also receives orders and instructions from his superiors. He passes the requisite information to both the subordinates and superiors. Management is also classified as top level, medium level and bottom level management.
Decisional Activities : Management has to take routine and important decisions, so that the organisational work may be performed smoothly. Management, being both administrative and executory, every manager has to take decisions regarding various activities under his command.
Interpersonal Activities : Management has to get things done, so the managers are always conscious of the fact that management is a team work and a group activity. This is why, the best possible efforts of every individual are integrated and channelised towards the achievement of the predetermined desired objective of the enterprise. A successful manager has to build cooperation, coordination and harmonious relationship between individuals and departments.
Interpersonal role of managers are as under:
Manager as a figurehand of the enterprise.
Manager as a liaison.
Manager as a leader.
Management as a Process
Management requires series of operations to achieve the desired result of the enterprise. These operations are planning, organising, staffing, directing and controlling. In order to achieve the best possible results of the business, these functions should be performed systematically in an orderly manner and proper sequence. It makes the management as a process. Management as a process is justified on the following grounds:
Management is an integrating process : Every organisation requires human, physical and financial resources to carry on its business activities.
Management is a continuous process : We know the business is a continuing activity, as such management functions must be performed continuously. Any lethargy on the part of management in the planning, organising, directing and controlling business operations will prove fatal to the organisation. Management is, therefore, required to be vigilant and active all the time.
Management is a universal process : Management functions are not restricted to business alone but performed in every organisation, whether it is social, religious, political or cultural. Every activity, which requires a group to perform needs to be routed through the managerial process of planning, organising, directing and controlling.
Management is a social process : The main function of the management is to deal with the human element in the business. Human factor is an essential, active and sensitive factor of production. It activates other factors of production also. It shows that the management should look into the interest of the employees and deal with them with a feeling of human touch.
Management as a Discipline
Management, these days is identified as separate field of study. It is now a systematic body of knowledge and formal discipline, studied in specialised institutions. It has got specialisd experts, thinkers and philosophers of the subject. Secondly, these experts are devoted for imparting their understanding and skill of the subject to learners of the discipline. It makes management a discipline.
No doubt, the management is a specialised body of knowledge, which is studied and practised in the specialised management institutions and enterprises. The managers have to follow the code of conduct, prescribed for them. The managerial functions are performed in the real situations of the business.
Management as Group
According to this approach human factor plays an important role in accomplishing business objectives. Management is concerned with those who have been managing the affairs of the business. Managers are assigned duties and also granted requisite authorities to perform their duties efficiently and thus management is effective direction, coordination and control of individual and group efforts to accomplish business objectives.
Features of Management
After taking into consideration the different approaches of management experts towards defining management we can establish the following characteristics of management:
Management is target oriented : Management executes the policies and decisions of the administration to achieve the objectives of the enterprise. Every business aims at maximum production at minimum cost, therefore the management has to concentrate and direct its activities to cherish this objective.
Management is group activity : It may perhaps be possible to succeed alone in very small enterprises, but in big enterprise it is not possible. The success of the management lies in getting the employees’ contribution and co-operation to full extent. It is not enough that a manager is highly qualified and trained but he should be capable of creating a sense of belongingness among his subordinates towards the enterprise and extract the maximum worth of employees.
Management is a pervasive activity : Management activities are not restricted to business units alone but in every organisation, whether it is religious, social or cultural, managerial functions are performed. Every activity which has to be performed by a group of persons requires effective planning, organising, coordinating and controlling.
Management can be felt not seen : Though the management is a constructive activity but it cannot be seen. The efficiency of the management can be judged by its all round achievement in the field of production, sales and earnings. The real success lies in the maximum satisfaction of shareholders, employees, consumers, investors and society as a whole.
Management is different from ownership : Both management and ownership are different from each other. The ownership gets profit or loss for its risk involved in the business, whereas the management gets remuneration for its services.
Management is multi-disciplinary : Modern management is the result of the growth of several disciplines like, Commerce, Economics, Sociology, Psychology etc. The principles from these disciplines have been absorbed in the management, which make it multi-disciplinary.
Management is intangible : Management is invisible and intangible. It has got no physical construction. The achievement of management can be judged by the sales, profit, production and its goodwill.
Management is a social process : The main function of the management is to deal with the human element in the business. All the employees of the enterprise are the members of the society. The management has to look after the interest of employees, shareholders, consumers, investors and community.
Management is a profession : Management is specialised body of knowledge. There is arrangement for its training in the specialised management institutions. The big enterprises make the selection of management trainees and after the successful completion of extensive training, candidates are appointed as executives. Managers are required to observe code of conduct.
Elements of Management Planning
In order to achieve the objective of the business it is necessary that every factor of production i.e., men, machine, material, money and methods should contribute their maximum worth. It is a must that every business activity must be well thought in advance as to who is to perform the specific task; when, why and how it is to be done.
A well conceived plan must be simple, flexible, balanced and should make the best possible use of all the resources available with the enterprise.
Organising
The management is required to make the arrangement of requisite human and physical resources.
The important elements of organisation are—(1) Grouping of activitiesm. (2) Assigning duties. (3) Fixing responsibility. (4) Delegation of authority and (5) Co-ordination of individual efforts.
Staffing
Staffing consists of the following functions:
Selection and Training of Employees : For every specific job the most suitable persons should be employed and they should be properly trained to meet efficiently the needs of the job in the real situations of the business.
Remuneration of employees : The management has to fix the reasonable remuneration of employees taking into consideration, the nature of job and the ability of the employees.
Development of employees : The management makes the proper arrangement for the professional growth of employees. There should be just and proper arrangement of the training, promotion and transfer of the employees. Efforts should be made to provide maximum satisfaction to employees.
Co-ordination
It is the harmonious combination of various activities and affairs of individuals and departments. Co-ordination consists of the following:
Co-ordination between different departments.
Co-ordination among the energies and efforts of different individuals.
Co-ordinating the efforts of subordinates and the management.
Controlling
It is the application of corrective measures to remove and prevent weaknesses in the operation after identifying them by comparison of desired performance with the actual performance.
Motivation
It is technique of creating a sense of belongingness towards the business among employees, who perform the desired task with zeal.
Levels of Management
The management has the following three levels:
1. Top level management.
2. Middle level management.
3. First line or supervisory level management.
Top level management
The level of management are designated as board of directors, managing directors, general managers and senior most managers. This level of management is responsible for framing policies of the business. Important decisions are made at this level. Top level management performs administrative functions more than the managerial functions.
Functions
Determining objectives of the business.
Formulating broad policies of the business.
Taking important decisions.
Deciding future line of action after taking into consideration Government economic policies, public opinion and other social, national and international factors.
Assembling the resources needed to put the plans into operation.
Issuing guidelines to medium level managers.
Middle level management
This level of management consists of different departmental heads. These managers receive orders and instructions from their superiors (top level managers) and pass it to their subordinates (low level managers). These managers supervise, direct and control the activities of foremen, inspectors and supervisors. They receive reports of actual performance from their low level managers, study the reports and issue necessary instructions. Medium level managers are the link between top level ad low level managers. They bridge the vast gap between the two, remove misunderstanding and create cordial relationship.
Functions
Interpreting and communicating the policies of the top level management.
Determining organisational set up of their departments.
Issuing instructions to low level managers.
Motivating subordinates for higher productivity and rewarding them for their outstanding performance.
Compiling statistical reports for top level management and preparing records of their departments.
Recommending revised and amended policies of their departments.
Low level management
This level of management includes foremen, supervisor and inspectors. Low level management is link between middle level management and workers. These managers are directly related to workers. They attend to their problems. They are also the source of inspiration.
Functions
Working as link between middle level management and workers.
Receiving instructions from middle level bosses and carrying out the instructions in the day-to-day affairs of the business.
Assigning duties to individual workers. Inspecting and supervising workers under their command at work. Attending to workers’ problems, removing their doubts.
Maintaining proper discipline and congenial atmosphere in the factory, so that productive activities could be performed smoothly.
Ensuing safety of workers, machines, tools and equipments etc.
Preventing wastages and misuse of raw material, machines, tools and equipments.
The success of the business lies in the effective combination and integration of men, machine, material, money and methods. It is the management who is responsible for this effective integration of factors of production. The important role of the management can be justified on the following grounds:
Achieving business objectives : The management makes the arrangement of the factors of production. He effectively integrates, leads and channelise them to the desired result.
Optimum use of business resources : An efficient manager achieves the maximum output at minimum cost by making the best possible use of men, machine, material, capital and equipments.
Effective leadership and motivation : The effective management is the source of stimulus to the employees. The subordinates are motivated to contribute their best efforts in their job. The management leads employees to the cherished goal and provides maximum satisfaction to employees.
Effective organisation and co-ordination : The management plays an important role by arranging and integrating the physical and human resources. It also coordinates the efforts of different employees and departments.
Establishing clear authority and responsibility : Management being a team work, clearly assigns duties, establishes authority and fixes responsibility for every employee and department. It eliminates overlapping, confusion and duplication of efforts and thus results in economy.
Solution of labour problems : Workers, these days are conscious of their precious contribution to the enterprise. They have been demanding not only fair wages but also bonus, improved working conditions and participation in the management. In these circumstances it is the management who does not allow the recurrence of disputes, if there arises any, it is solved immediately.
They co-ordinated and synthesised effort and energies of all the individuals at all levels will definitely achieve the maximum objectives of the enterprise at the minimum sacrifice.
Co-ordination
Co-ordination aims at achieving the desired objective of the business by directing individual activities and resulting in unified and harmonious action.
Timing : It requires adjusting time schedule of different departments.
Balancing : It ensures, sufficient and timely availability of different factors of production.
Integrating : Directing unified, co-ordinate and harmonious efforts of individuals and groups towards desired common objective of the business.
Importance
Unity of action : In modern large scale business, there are various different types of activities being performed by different groups and sub-groups, therefore in order to bring unity of action co-ordination at all levels is essential.
Integrated efforts : The specialisation and the corresponding division of work into very small parts has disintegrated efforts of all individuals, therefore co-ordination is needed to have balanced and integrated development of enterprises.
Semi-autonomous state of various departments : Every department is an autonomous body, as such the different departments are at the different stages of development. This results in the uneconomical use of resources. Co-ordination in these circumstances is required for balanced and integrated growth.
Source of co-operation : Co-ordination is the means to achieve co-operation, which enables the achievement of business objectives effectively.
Cordial atmosphere : Co-ordination brings employees nearer to each other. They understand and adjust with each other by developing mutual co-operatioin, confidence and brotherhood.
Qualities of a Good Manager
An efficient manager must have the following qualities.
Education : A manager must be well-educated and qualified. He should have both general education and specific education in business administration. The manager has to formulate policies, make decisions, correspond and to understand the different business matter so, in order to be capable to perform these activities efficiently, he must be well-educated.
Training: The manager must have the specific training for the job, he is required to perform. The training may be obtained before entering the service or it may be had in service. Refresher courses, if needed be also arranged.
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