UNIT 1 MANAGEMENT INTRODUCTION Management, as a concept, can mean a process (that is, a set of activities); a people (that is,

s, a group of managers); or a profession (that is, a special field of study. It is an art and a science. It is often interchangeably used as administration and whereas it is more involving and wider in scope than administration. Emphasis is much laid on management in modern organizational theory to achieve the desired results in an enterprise or establishment or institution. Hence institutional managers need to be exposed to at least, basic management concepts, principles and functions. CONCEPT Management, like most concepts in social sciences, has been defined in various ways/forms by different authors. There is no precise definition of management. This term is often interchangeably regarded or used as administration. In fact, the Concise Oxford Dictionary defines administration as management. This means that an administrator is a manager. The words management and administration, according to Appleby (1981), are defined by writers in accordance with their own needs and purposes. For instance, administration is that part of the management process concerned with the institution and carrying out of procedures by which the programme is laid down and communicated, and the progress of activities is regulated and checked against targets and plans (Brech, 1963). This term (administration) is succinctly explained by Appleby (1981) as being used to refer to the activities of the higher level of the management group who determine major aims and policies. In education, administration, in the broader sense, is often used to refer to the activities of the Ministry of Education while in the narrower sense, it is used to refer to the activities of the school head in the day to day running (management) of an educational institution. Management can mean a) A process Management is a process by which limited resources are assembled and used to achieve identified/predetermined goals. This is managing. b) A people Management refers to the people that carry out the activities of management. These people are managers.

c) A profession As a special field of study, management is regarded as a profession.

DEFINITION F.W. Taylor - Art of knowing what you want to do and then seeing that it is done the best and cheapest way. Henry Fayol To Manage is to forecast, to plan, to organize, to command, to co-ordinate and to control. Peter F.Drucker Management is work and as such it has its own skills, its own tools and its own techniques.

Management is the art of getting things done through and with people.

 NATURE AND IMPORTANCE OF EVOLUTION OF MANAGEMENT THOUGHTS AND PRINCIPLES Management is a recent discipline and it draws from the disciplines of Economics, Psychology, Sociology, Anthropology, etc. However, as we have seen earlier, management has evolved as an independent discipline. Let us now track how this progression has taken place. Scientific management theory The focus of this thought is increase in productivity and efficiency through applying scientific methods on the shop floor or workplace. It tries to

identify one best way of doing a job; however, emphasizes on workers cooperation, management-labour relations and developing workers and motivating. However, the focus is on shop floor efficiency through scientific methods and even motivation is proposed to be executed through piece rate system or paying based on the number of pieces of work produced. The thought was led by Fredrick W. Taylor, and he enunciated the principles of scientific management in 1911 after experimenting on the shop floor of a steel company as a supervisor. He was influenced by Frank and Lillian Gilbreth and their Time and Motion study (a study that identifies the least time required for a motion in workplace and make it scientific) of 1900 and that of Henry L. Gantt who propounded the idea of scientific selection of workers and harmonious cooperation in 1901. Scientific management in Taylors parlance means: Develop a science for each element of a mans work which replaces the old rule of thumb method Scientifically select and then train, teach, and develop the workman, whereas in the past, he chose his own work and trained himself as best as he could The workers heartily cooperate with the men so as to ensure that all of the work are done in accordance with the principles of science which has been developed There is an almost equal division of work and responsibility between the management and the workmen. The management takes over all work for which they are better fitted than the workmen, while in the past, almost all of the work and the greater part of the responsibility were thrown upon the men. Social scientist Max Weber, between the late 1980s and early 1990s, propounded the idea of bureaucracy. He was trying to find the systems that put order in a complex industrial economy. Weber's ideal bureaucracy envisaged hierarchical organization and delineated the lines of authority in a fixed area of activity, action on the basis of written rules, implementation by neutral officials, and career advancement based on the idea of primacy of the organization over the individuals. His thoughts are considered in the scientific school but transcends into behavioral science area also since he is talking about how people should behave in an

organization and how that should be structured. Operational management theory This thought was led by Henri Fayol. The thought identified six groups of activities in an organization, i.e., technical, commercial, financial, security, accounting, and managerial. He recognized the need for teaching management and identified 14 principles in 1916 which enabled the management to grow as a discipline and is therefore often called the father of modern management. We will see these principles in a separate section. Behavioral science theory The thought was originated by Vilfredo Pareto in 1896, and he researched on organization and management relationship. Later, Hugo Munsterberg applied psychology to increase industrial production in 1912 and around the same time, Walter Dill Scott applied psychology to advertising, marketing, and personnel in 1910 and 1911. But it was Elton Mayo and F.J Roethlisberger who made an impact on the behavioral science theory through their Hawthorne experiments in Western Electric Company in 1933. These experiments proved that good working relationship with the supervisor and colleagues and the idea of challenge in the job accounted for higher productivity. Challenge is created through setting high goals which cannot be normally achieved but which can be achieved with a little additional effort. These experiments brought to fore the importance of behavioral science in management. Extending the idea sometime in 1946 and 1947, Max Weber propounded the theory of bureaucracy.

Systems theory Though the systems theory can be traced to biology, where we have cardiovascular system, nervous system, etc which are fairly independent yet interdependent, it was Chester Barnard who extended this into management area through his writing Functions of the Executive in 1938. In systems theory, we perceive that organizations have a number of fairly independent systems such as purchase system, operations system, marketing system financial system, etc. The working of these are independent, but it has to be integrated by the manager. This theory,

perhaps, brings the idea of integration as a key component of management. Modern management thought Some of the modern management thoughts are discussed below: Peter Drucker Peter Drucker wrote on several management issues and is known for management by objective which implies that the management should lay down objectives to be achieved at every level including the individual worker and ensure that course correction is done from time to time through feedback to increase smoothness and productivity. He also propounded the idea of knowledge worker who uses primarily his intelligence for productivity in the workplace. Edward Deming Edward Deming extended his thoughts to the area of quality and how it can be improved without any significant increase in cost in many cases. William Ouchi After years of research on the reason for higher productivity in Japanese companies compared to the US companies, Professor Ouchi found that it was the way people were managed and connected and not technology that created the productivity. This style focuses on a strong company philosophy, a distinct corporate culture, long-range staff development, and consensus decision-making (Ouchi, 1981). Ouchi demonstrates that the results show lower turn-over, increased job commitment, and dramatically higher productivity. This is called Theory Z. Theory Z is not an independent theory but an intelligent fusion of several theories of motivation by Maslow et al combined with the writing on quality by Deming. Thomas Peters and Robert Waterman They reached on what creates excellence in companies and identified eight characteristics namely: 1) High/strong action orientation 2) High/strong customer orientation 3) High/strong managerial autonomy and entrepreneurship 4) High/strong employee orientation 5) High/strong c o m p a n y p h i l o s o p h y b a s e d o n t h e v a l u e s o f t o p leadership

 ROLE AND FUNCTIONS OF A MANAGER Functions of Managers Managers just don't go out and haphazardly perform their responsibilities. Good managers discover how to master five basic functions: planning, organizing, staffing, leading, and controlling.

Planning: This step involves mapping out exactly how to achieve a particular goal. Say, for example, that the organization's goal is to improve company sales. The manager first needs to decide which steps are necessary to accomplish that goal. These steps may include increasing advertising, inventory, and sales staff. These necessary steps are developed into a plan. When the plan is in place, the manager can follow it to accomplish the goal of improving company sales. Organizing: After a plan is in place, a manager needs to organize her team and materials according to her plan. Assigning work and granting authority are two important elements of organizing. Staffing: After a manager discerns his area's needs, he may decide to beef up his staffing by recruiting, selecting, training, and developing employees. A manager in a large organization often works with the company's human resources department to accomplish this goal. Leading: A manager needs to do more than just plan, organize, and staff her team to achieve a goal. She must also lead. Leading involves motivating, communicating, guiding, and encouraging. It requires the manager to coach, assist, and problem solve with employees. Controlling: After the other elements are in place, a manager's job is not finished. He needs to continuously check results against goals and take any corrective actions necessary to make sure that his area's plans remain on track.

All managers at all levels of every organization perform these functions, but the amount of time a manager spends on each one depends on both the level of management and the specific organization. Roles performed by managers A manager wears many hats. Not only is a manager a team leader, but he or she is also a planner, organizer, cheerleader, coach, problem solver, and decision maker all rolled into one. And these are just a few of a manager's roles. In addition, managers' schedules are usually jampacked. Whether they're busy with employee meetings, unexpected problems, or strategy sessions, managers often find little spare time on their calendars. (And that doesn't even include responding to e mail!)

In his classic book, The Nature of Managerial Work, Henry Mintzberg describes a set of ten roles that a manager fills. These roles fall into three categories: Interpersonal: This role involves human interaction. Informational: This role involves the sharing and analyzing of information. Decisional: This role involves decision making. Table 1 contains a more indepth look at each category of roles that help managers carry out all five functions described in the preceding Functions of Managers section

Not everyone can be a manager. Certain skills, or abilities to translate knowledge into action that results in desired performance, are required to help other employees become more productive. These skills fall under the following categories: Technical: This skill requires the ability to use a special proficiency or expertise to perform particular tasks. Accountants, engineers, market researchers, and computer scientists, as examples, possess technical skills. Managers acquire these skills initially through formal education and then further develop them through training and job experience. Technical skills are most important at lower levels of management. Human: This skill demonstrates the ability to work well in cooperation with others. Human skills emerge in the workplace as a spirit of trust, enthusiasm, and genuine involvement in interpersonal relationships. A manager with good human skills has a high degree of selfawareness and a capacity to understand or empathize with the feelings of others. Some managers are naturally born with great human skills, while others improve their skills through classes or experience. No matter how human skills are acquired, they're critical for all managers because of the highly interpersonal nature of managerial work. Conceptual: This skill calls for the ability to think analytically. Analytical skills enable managers to break down problems into smaller parts, to see the relations among the parts, and to recognize the implications of any one problem for others. As managers assume everhigher responsibilities in organizations, they must deal

with more ambiguous problems that have longterm consequences. Again, managers may acquire these skills initially through formal education and then further develop them by training and job experience. The higher the management level, the more important conceptual skills become. Although all three categories contain skills essential for managers, their relative importance tends to vary by level of managerial responsibility. Business and management educators are increasingly interested in helping people acquire technical, human, and conceptual skills, and develop specific competencies, or specialized skills, that contribute to high performance in a management job. Following are some of the skills and personal characteristics that the American Assembly of Collegiate Schools of Business (AACSB) is urging business schools to help their students develop.

Leadership ability to influence others to perform tasks Selfobjectivity ability to evaluate yourself realistically Analytic thinking ability to interpret and explain patterns in information Behavioral flexibility ability to modify personal behavior to react objectively rather than subjectively to accomplish organizational goals Oral communication ability to express ideas clearly in words Written communication ability to express ideas clearly in writing Personal impact ability to create a good impression and instill confidence Resistance to stress ability to perform under stressful conditions Tolerance for uncertainty ability to perform in ambiguous situations ELEMENTS OF MANAGEMENT

What

is

Management?

Five

elements

Fayol's definition of management roles and actions distinguishes between Five Elements: Prevoyance (Forecast & Plan)- Examining the future and drawing up a plan of action. The elements of strategy. To organize- Build up the structure, both material and human, of the undertaking. To command Maintain the activity among the personnel. To coordinate - Binding together, unifying and harmonizing all activity and effort. To control - Seeing that everything occurs in conformity with established rule and expressed command.

Origin

of

the

14

Principles

of

Management

History)

Henri Fayol (1841-1925) was a French management theorist whose theories in management and organization of labor were widely influential in the beginning of 20th century. He was a mining engineer who worked for a French mining company Commentry-Fourchamboult-Decazeville, first as an engineer. Then he moved into general management and became Managing Director from 1888 to 1918. During his tenure as Managing Director he wrote various articles on 'administration' and in 1916 the Bulletin de la Society de l Industrial Mineral, printed his "Administration, Industrials et Generable Prvoyance, Organization, Commandment, Coordination, Controls". In 1949 the first English translation appeared: General and Industrial Management by Constance Storrs. Usage Change Decision-making Skills. Can be used to improve the basic effectiveness of a manager. Understand that management can be seen as a variety of activities, which can be listed and grouped. FUNCTIONS Management is seen as the systematic process of getting things done through people. It is a social and economics process of coordinated activities. Such activities are referred to as management functions. These include : a) Planning This is a continuous process of projecting or forecasting future circumstances and requirements to achieve desired results. It is a set of decisions for future actions. b) Organizing Management involves determining and grouping activities and resources (human and material) in the most efficient manner for use to achieve the results. of the 14 Management and Principles: (Applications) Organization.

c) Staffing Management is concerned with employing and deploying the right type of personnel in quality and in quantity to do the job. This is human resource management or personnel management. d) Directing Management is concerned with the process of harnessing resources to ensure efficiency and effectiveness in an organization. This involves such activities as : i) Leading A manager influences other people to perform in such a way as to achieve results. This process is a function of the manager, other people (who are the followers) and the situation. It is motivating force in management (Carlisle, 1976) ii) Supervising This is the process of ensuring, that the policies and techniques established for achieving objectives of an organization are properly and successfully followed. e) Coordinating Management involves synchronizing and harmonizing individuals and groups efforts by translating the plan into activities to achieve results. f) Controlling Management involves a responsibility to adapt the organization to changing events in consonance with the plans established. Budgeting and reporting (communicating) are essential activities in control functions. i) Budgeting This is the main tool of control in an organization or enterprise. It is a process of distributing resources by translating plans into actions and fostering accountability. ii) Reporting Management is concerned with promptly intimating the appropriate authorities with the plans, progress, problems and prospects of the organization so that necessary actions could be initiated for improvement. This involves information management. g) Motivating Management is a systematic process of coordinating group efforts to achieve results. It involves peoples as the most dynamic resources of an organization. The idiosyncracies in people necessitate understanding human behavior for use to achieve the results. Hence, management is involved in motivating and rewarding people to perform in achieving organizational objectives. Resser (1973) enumerated the functions of managers (in concrete terms) are : i. ii. iii. Setting objectives for using available resources; Formulating plans for achieving these objectives; Identifying the activities to be performed;

iv. v. vi. vii. viii. ix. x. xi.

Organizing the activities into groups; Defining the tasks to be performed by each group; Grouping the tasks into jobs or programmes; Staffing the jobs with people; Initiating work activities; Supplying incentives to stimulate productivity; Setting up controls to measure achievements of objectives; Taking remedial actions if objectives are not being met.