What is Management?

Getting things done through and with the people. Management is the development of people and not the direction of thing. Management is personnel administration.
Lawrence A. Appley

Management is the process of decision making and control over the actions of human being for achieving predetermined goals.
R. C. Davis

 POSDCORB, including planning, organizing, staffing, directing, coordinating, reporting and budgeting.
By Luther Gulick

Management is a social process as it takes its inputs from and exports its outputs to society.

Management is the social process of planning, organizing, staffing, directing, coordinating and controlling for the determination and achievement of organizational objectives in a dynamic environment.
By Koontz and ODonnel

Management Functions
Planning Predetermined course of action Concern with what how and when of performance Determination of long and short range objectives Development of strategies and action to be followed for achievement of objectives. Formulation of policies, procedures and rules for strategies and plans.

Management Functions
Organizing: is basic process of combining and integrating human, physical and financial resources in productive interrelationship for achievement of objectives. It includes:
Identification of activities required for the achievement of objectives. Implementation of plan. Grouping of activities into job Assign job and activities to department and individuals. Delegation of responsibility and authority. Provision for vertical & horizontal coordination.

Management Functions
Staffing Manpower planning involves determination of number and the kind of personnel required. Recruitment for suitable employees. Selection of most suitable persons. Placement, induction and orientation. Transfers, promotions, termination and layoff. Training & development of employees.

Management Functions
Directing: is the function of leading the employees to perform efficiently and effectively and contribute their optimum to the achievement of organization objectives.
Job Assigned to subordinates have explained and clarified. Provide guidance whenever required Supervise employees accordingly Motivation Communication Leadership to be

Management Functions
Coordinating: Coordinating is the function of establishing such relationships among various parts of the organization that they all together pull in the direction of organization objectives. According to Koontz and ODonnel it is an integral part of all other functions.
Clear definition of relationship Unity of Command Unity of Direction Effective Communication Effective Leadership authority-responsibility

Management Functions
Controlling: Controlling is the function of ensuring that the divisional, departmental, sectional and individual performance are consistent with predetermined objectives and goals. It includes:
Measurement of performance against goal. Identification of deviation from the goals Corrective Actions to rectify deviations.

Principles of Management
Developed by Henri Fayol, the father of modern management. According to him, activities of an enterprise can be grouped in six categories, Technical (Production), Commercial (buying, selling and exchange), Financial (search for and optimum use of capital), security (protection of property and persons), accounting (including statistics) and ultimately Managerial. He developed the principles understanding management in all kind of organization.

 Authority and Responsibility are related

Authority flows from responsibility Authority is official and personal
Official is derived from manager position in organization hierarchy Personal is combination of intelligence, experience, moral worth and past services etc.

This aspect is relevant in India where authority tends to be concentrated.

 Unity of Command
One employee should have one boss and receive instructions from him only.

Unity of Direction
There should be one head and one plan for a group of activities having the same objectives. All related activities should be directed by one person.
Example: All marketing activities like product strategy, advertising, sales promotion, distribution channel policy, product pricing etc. should be under the control of one Marketing Manager and directed by an integrated plan.

 Scalar Chain of Command

Chain of superiors and subordinates from top to bottom. All are linked with each other in superiorsubordinates relationships. Fayol also says that, where necessary, Gangplanks should be thrown to prevent the scalar chain of command from blocking the smooth and efficient functioning of the organization.

Division of Work
It is the principle of specialization which applies to all kinds of work such as managerial and technical. Change in work reduces the output. Division of Work has its limits.

 Discipline
Member of organization perform their functions and conduct according to rules, norms and customs. Discipline (Obedience, application, energy and mark of respect) is absolutely essential for the smooth running of business. Discipline is what leader make it. Discipline can be maintained by:
Good superior at all levels Agreements with the individual employee are clear and fair as possible

 Subordination of Individual Interest to General Interest

According to this principle the interest of the organization is above the interests of the individual and the group. It can be achieved only when manager set the example of honesty, integrity,fairness and justice. It also involve an attitude and a spirit of sacrificing their own personal interest.

 Remuneration
Employee should be paid fairly and equitably. Difference should be in terms of quality of employee, application, responsibility, working conditions and difficulty to the job. Profit Sharing plan particularly for Managers. He also suggested some non financial incentives like good working conditions, housing etc. although these could be afforded only by large scale organizations

 Centralization
Fayol believed centralization. Fayol suggested that centralization and decentralization is a question of proportion. Small Firm Owner Manager give orders directly to everyone whereas large firm workers is separated from the CEO through long scalar chain, the decision making authority has to be distributed among various manager. Decentralization with centralized control.

 Order
Right person on the right job and everything in its proper place. Order depends on precise knowledge of human requirements and concerned resources and balance between these two.

Equity
Subordinates should be treated with justice and kindliness. It is the duty of CEO to encourage the sense of equity to all levels of scalar chain. It also involves the devotion and loyalty towards the organization.

 Stability of Tenure of Personnel

Managerial policy should provide a sense of job security. Hiring & Firing depend on the policy not on the whims of the superiors. Under this policy those found unsuitable should be removed and those found competent should be promoted.

Initiative
It focus on the ability, attitude and resourcefulness (act without prompting from others) of the individual. Manager must create the environment which encourages their subordinates to take initiative and responsibility.

 Esprit de Corps
Cohesiveness (Unity) and team spirit should be encouraged among employees. Environment should be created in the organization which will induce people to contribute to each others efforts in a way that efforts promotes the achievement of the overall objectives of the enterprise. Fayol warns against two enemies of esprit de corps i.e. a. divide and rule b. abuse of (neglect) written communication. It may benefit organization to divide its enemy but it will surely be dangerous to divide ones own workers. Written communication, where necessary, should always be supplemented by oral communication because face-to-face contacts tend to promote speed, clarity and harmony.

Nature of Management
Management as a Science
Significant contribution was made by Fredrick W. Taylor in the field of Scientific management. Scientific methods of analysis, observation and experimentation were used to manage production functions. Mathematical Models can be used for decision making. Management possess a systematized body of knowledge and uses scientific methods of research. Management is a social science and deals with the behaviour of people in organization.

 Management as an Art
Applications to the solutions is Art. Principles of Management are the guideline for manager.

 Management as a Profession
According to McFarland a profession possess the following characteristics: A body of principles, technical skills and specialized knowledge. Formalized methods of acquiring training and experience. Establishment of an organization with professionalism as its goals. Formation of ethical codes for guidance of conduct. Charging the fees based on the nature of work. Examples: Administrative Staff College of India, Institute of Management Development and Research, All India Management Association and University Department of Management offers a variety of short term management training programs.

The Scientific School of Management

Frederick W. Taylor It replaces the rule of thumb. Observation, Experimentation, Analysis, Rationality and Reasoning are the chief instruments for developing managerial system. The basic components of scientific management are:
Determination of Standards of Performance Functional Foremanship Responsibility of Management Differential piecework system of wage payment Mental Revolution

 Determination Performance

of

Standards

of

Fixation of standards of performance on the basis of amount of work done by an average worker. Time and Motion should be studied which involve analysis of all the operations and motion of each process must be recorded with the help of stopwatch. Standard of Performance are determined on the basis of time taken on the performance of each job together with the time taken for rest and unnecessary delays.

Functional Foremanship
Taylor observed that in most of the organizations each man customarily planned his work which caused to reduce the efficiency and wastage of time and money.

 He emphasized on separation of planning from doing and functional foremanship.

One person should responsible for planning and others for executing the same. Functional foreman planned various aspects of each workers job and issued him instructions on their specialty. If a worker performed a job involving 6-7 operations, he would receive instructions from as many functional specialists. Taylor held that one type of man was needed to plan and an entirely different type to execute the work. For example planning function has shifted from workers and supervisors to functional specialists like industrial engineers, quality control experts etc. It increases the costs of managing but reduced the costs of operations.

 Responsibilities of Management
Manager should accept responsibility of planning, Directing and organizing. Management should analyze all operations and develop scientific methods of operations. Workers should be scientifically selected and trained. Management should cooperate with workers. To ensure that work is done according to the scientifically developed methods.

Differential piecework system of Wage Payment

Motivate workman to attain the highest possible level of efficiency.

 Give each worker the highest grade of work for which his ability and physique fits him. Expect each workman to produce the maximum amount of work which a first class man can do. Pay each workman who work at the best pace of a first class man from thirty to hundred percent beyond the average of his class.

Mental Revolution
It involves the complete mental revolution in the attitudes of workers towards their work, managers towards their supervisor and workers due to determining work standards, differential piecework system of wage payment. With this exercise management and worker can develop the cooperative attitude with each other.

The Human Relations School

Hawthorne Human Relations School was introduced by Hawthorne in early 1930s. It focus on motivation to work Morale and productivity are related to social relations among the workers & supervisors. Workers perceived themselves as a work group. The group developed norms relating to production as well as personal conduct among themselves and with the supervisor. Organization is a social system Focus on people - part of management Manager can effectively manage people and get things done with and through the people.

 Manager should be effective leader and most appropriate style of leadership i.e. democraticparticipative should be used. Satisfactory and fruitful human relations can be attained through management theory Employee participation in decision making resulted greater job satisfaction and productivity Individual behaviour Communication Team work : common agreement on goals Employee motivation is based not only on the satisfaction of physiological needs but also social and psychological needs. Managerial skills in human being can be developed through training.

The Contingency Theory School

Developed in 1970. It shows the relationship between an organization and its environments Contingency approach is an approach where behaviour of one subunit is depend on its environmental relationship to other units. Contingency theory emphasizes that there is no one best way to design organization. Management is situational and managers should design the organizations, define objectives and formulate strategies, policies and plans according to the situations.

 Management policy and practices, to be effective, must respond to change in environmental forces. Management success significantly depends on its ability to cope with its environmental changes. Manager should have adequate human relation skills to accommodate change and abilities to manage transition as well as stabilize change. Management should use the contingency model in designing organization, developing its information and communication system, adopting effective leadership styles and formulate suitable objectives, strategies, policy and practices. Contingency theory provides a method of analysis as well as a way of integrating organization with its environment.