MANAGEMENT

DEFINITION:
o Management is concerned with seeing that the job gets done: its task is
all centered on planning and guiding the operations that are going on
in the enterprise. E.F.L. Brech
o Management may be defined as the art of securing maximum results
with a minimum of effort so as to secure maximum prosperity and
happiness for both employer and employee and give the public the best
possible service. John F. Mee
o Management is the art of getting things done through and with people
in formally organized groups. It is the art of creating the environment
in which people can perform as individuals yet cooperate towards
attainment of a group goal. It is the art of removing blocks to such
performance, a way of optimizing efficiency to reach goals. Harold
Koontz
o Management is the development of people and not the direction of
things Management is personnel administration. Lawrence A.
Aplley
Management is the act or skill of controlling and making decisions about business,
department, sports team, etc.

EVOLUTION OF MANAGEMENT
Pre-Scientific Management Era
Pre-Scientific Management School
Management in some form or the other has been practiced in all organized
efforts of man ever since the dawn of civilization. Evidence of the use of
principles of management id to be found in the organization of public life in
ancient Greece, the organization of the Roman Catholic Church, and the
organization of military forces.
Classical Management Era
Classical management theory consists of a group of similar ideas on the management
of organizations that evolved in the late 19th century and early 20th century. The
Classical school is sometimes called the traditional school of management among
practitioners. This school, evolved because of the industrial revolution, in response to
the growth of large organizations and in contrast to the handicraft system that existed
until then.
Scientific Management School
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Frederick Winslow Taylor (1856-1915) is considered to be the father of

scientific management. Taylor was supported in his efforts by Henry Gantt,
Frank and Lillian Gilberth and Harrington Emerson. All these disciples of
Taylor became famous in their own right. Together with Taylor they
revolutionized management thinking. Scientific management is the name
given to the principles and practices, that grew out of the work of Frederick
Taylor and his followers and that are characterized by concern for efficiency
and systematization in management.
Process Management School
Process management school is also called the traditional or universalist school.
Henri Fayol is regarded as the father of this school. He defines management
which have universal applicability.
The process school sees management as a process of getting things done
through and with people operating in organized groups. It builds a theory of
management and looks at management as a process remain the same in all
kind of group activities. It also looks upon the management theory as a way of
organizing experience so that practice can be improved through further
research.
Neo-Classical Management
The Traditional classical theory and its principles are attacked on the ground that they
are contradictory, pay little attention to motivation, and make hasty pronouncements
on what should be done, without examining the assumptions Management
Perspectives underlying such pronouncements. As such, these principles do not
represent the heart of knowledge of management but a small part of the total body of
administrative management. As a reaction to schools of classical theory, which over
emphasized the mechanical and physiological characters of management, came up the
schools of neoclassical theory, with a more human-oriented approach and emphasis on
the needs, drives, behaviors and attitudes of individuals. Another impetus was the
development of the concepts of industrial psychology around the same time. Two
important groups, namely, human relations school and behavioral schools emerged
during 1920s and 1930s under the neoclassical theory. Names of two persons, often
mentioned, from the period earlier to neoclassical theory, are Robert Owen and
Andrew Ure. As Young Welsh factory owner, Robert Owen was first one to emphasize
human needs of employees as early as 1800. Andrew Ike has incorporated human
factors in his book `The Philosophy of Manufactures' published in 1835. The human
relations movement of the 1940s and the 1950s filled many gaps in knowledge. About
business organizations, but it did little to fill major gaps in management theory, or to
create a new and viable theory of management.
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 Human Relation School

Elton Mayo is considered as the father of the human relations movement,
which 'later become organizational behavior. The other two important coresearchers of this school are F.J. Roethlisberger and William J Dickson. They
believed that organizations always involve interrelationships among members
and that it is the manager's role to see that relationships are as conflict-free as
possible, in order to accomplish the organizations objectives. They believed
that the human aspect of business organizations had been largely ignored.
They felt that satisfaction of psychological needs should be the primary
concern of the management.
Behavioral Science School
The human relations approach has evolved into modem behaviourism. The
term modern behaviourism refers to the current stage of evolution of the
behavioural school of management, which gives primacy to psychological
considerations, but treats fulfillment of emotional needs mainly as a means of
achieving other primary economic goals. Much of the discussions under
behavioural schools can as well be considered under organisational (modern)
humanism in modern management theory. Important behavioural scientists,
who contributed to gain insight in ways to achieve managerial effectiveness
and developing techniques to utilize people more effectively in organisations,
are Abraham Maslow, Douglas McGregor,.. Chris Argyris, Frederick
Herzberg, Rensis Likert, Kurt Lewin, Chester Barnard, Mary Parker Follest,
George- Homans and Warren Bennis. They had rigorous training in various
social sciences and used sophisticated research methods. They regard the
classical management theory as highly mechanistic, which tends to degrade
the human spirit and is non-responsive to the human needs. As against overly
specialised jobs, under-utilised people, too much control over employees with
no scope to make decisions, and little concern about subordinates needs for
recognition and self-fulfillment, the behaviourists preferred more flexible
organisation structures, with jobs built around the capabilities and aptitudes of
average employees.
Modern Management Era
Modern management theory highlights, the complexity of the organization as well as
individuals and the diversity of their needs, motives, aspirations and potentials. As a
result, one time status or universal management principles are impracticable. The
complexities require intricate managerial strategies for dealing with people and
organization. As against the rational economic man of the classical theory and the
social person view of neoclassical theory, the complex employee view is the premises
of modem management theory.
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The complex employee view holds that people are both complex and variable. They
have many motives, learn new motives through experience and motives vary from
organization to organization and department to department. Complex interactions
relate the employee and the organization. There is no single managerial strategy that
works for all people at all times. Managers can employ different strategies at different
times and for different persons. Analytical tools may be useful while applying
managerial strategies. Four important modern management theories arising out of the
complex employee view, are systems theory, contingency theory, organizational
humanism, and management science.
Empirical School
Ernest Dale, the founder of this school, identified management as a study of
experience. The intention of studying experience is to draw generalizations
and to develop means of teaching experiences to other practitioners and
students. As such, it is also called the case approach or management
experience approach. The unique features of this schools are as follows:
1. Managerial experience can be passed from one person to another.
2. Management can be taught best by the case method.
3. Theories of management can be developed by studying a large number
of experiences.
4. It is a study of success and failures in the application of management
techniques by managers in their practice.
Although the case method helps in developing diagnostic and analytical
skills in management students in classroom situations, it may not be useful
in dynamic situations.
Social System School
The social school stems from the application of behavioral sciences to
management. Vilfredo Pareto, a sociologist is the real pioneer of the social
system, i.e. a system of cultural interrelationship. His ideas were later
developed by Chester Barnard who is regarded as the founding father of the
social system school. For the adherants of this school, an organization is
essentially a social-cultural system composed of groups of people who work in
cooperation with one another. The broad features of this school are as follows:
1. An organization is a social system- a system of cultural relationship.
2. Relationships exist among the external and internal environments of
the organization

3. Cooperation among group members is necessary for the achievement

of organizational objectives
4. For effective management, efforts should be made for establishing
harmony between the goals of the organization and the various groups
functioning there in.
Decision Theory School
Herbert Simon, Luther Gulick and Lyndall Urwick are the major contributors
to this school of thought. Decision Theory concentrates on rational approaches
to decision makingthe selection of a course of action from various possible
alternatives. The manager is a decision maker and the organization is a
decision-making unit. Hence the basic problem in managing is to make
rational decisions. The main features of his theory are as follows:
1. Decision making is central to the study of management.
2. The members of the organization are decision makers and problem
solvers. Thus, management is the study of the process of decision
making and the personalities and behavior of the decision makers.
3. The organizational effectiveness depends on the quality of decisions.
4. All factors affecting decision making are the subject matter of the
study of management.
Although the decision theory school contributes the sharpening of
managerial tools especially for making suitable decisions in the
organization, it does not take yhe total view of management. Decision
making is significant in every school of management. This significant
aspect cannot be denied, but management is more than mere decisionmaking.
Quantitative Management School
This approach gained momentum during the Second World War, when
interdisciplinary groups of scientists, called Operations Research Teams, were
engaged to seek solutions to many complex problems of war. These teams
constructed mathematical models to simulate real life problems, and by
changing the values of variables in the model, analyzed the effect of changes
and presented a rational basis for decision makers. Tools such as linear
programming, queuing theory, simulation models, CPM, PERT, inventorycontrol and quality control tools were extensively used in this approach. Thus
the focus of management science or quantitative approach is on making
objective and rational decisions. Objective rationality implied an ability and
willingness to follow a reasoned, unemotional, orderly and scientific approach,
in relating means with ends and in visualizing the totality of the decision
environment. It is an attempt to rationalize and quantify the managerial
process.
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 System Management School

The classical theory emphasized the `task', `structure' and `efficiency' and the
neoclassical theory emphasized 'people'. Systems theory has come up as via
media with an integrated and holistic approach to management problems. This
has emerged as a way of looking at the organization as a whole. Chester
Barnard, George Homans, Philip Selznick and Herbert Simon are some of the
advocates of the systems theory.
A system is an entity made up of two or more interdependent parts that interact
to form a functioning organism. An organization, human body, a flower and a
tree are examples of a system (anything and everything is a system). The
phrase `interdependent parts' is very important and means that a manager
should not look for a single cause of a problem. A system can be either open or
closed. An open system interacts with its environment. All biological, human
and social systems are open systems and many physical and mechanical
systems are closed systems. Traditional organization theorists regarded
organization as closed systems, while modern view is to treat it as an open
system, having constant interaction with its environment. In other words, an
organization is an open system that interacts regularly with external forces
such as government agencies, customers and suppliers. These external forces
have an impact on organization practices.

Contingency Approach School

The contingency approach stresses the absence of a single best way to manage
and emphasizes the need for managerial strategies based on all relevant fact.
In other words, each manager's situation must be viewed separately. Wide
range external and internal factors must be considered and then the focus
should be on the action that best fits the given situation. This approach, in a
way attempts to integrate the various schools of management thought,
otherwise it is obvious that the principles and concepts of various schools have
no general and universal applicability under all conditions. The contingency
approach suggests that managers need to be developed in skills, that are most
useful in identify in the important situational factors. They should be able to
identify which technique, in a particular situation, will best contribute to the
attainment of management goals. In other words, managers should develop a
sort of situational sensitivity and practical selectively. Contingency approach
is most applied in the activities of motivating, leading and structuring the
organization. The other potential areas of application include employee
development and training, decisions of decentralization, establishment of
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communication and control systems, and planning information decision

systems.
LEVELS OF MANAGEMENT
Top Level. They are responsible for the overall management of the organization. They set
long-term goals for the organization by studying and forecasting the external environment.
Managers can also be classified on the scope of activities they manage. For example, a
functional manger. He is responsible for one functional area, i.e. production, or marketing, or
finance. A general manager is responsible for all the activities of a unit namely, production,
marketing, sales and finance.
Middle Level. They can be of more than one level in the managerial hierarchy. They manage
and direct first-level managers and other operating employees. Their major activities involve
implementing the policies of the organization.
Lower Level. They are the lowest level of managerial hierarchy. Foreman, supervisors, junior
managers are all referred to as first-level managers. They supervise and direct non-managerial
employees.
SKILLS OF MANAGEMENT
Katz (1974) identifies three basic skills that a manager must have: technical, human and
conceptual.
Technical skill. This is the ability to use tools, procedures, techniques and knowledge of a
specialized field, for example: accountants, engineers, and doctors.
Human skill This is the ability to work with, understand, and motivate other people as
individuals or groups.
Conceptual skill. This is the ability to see organization as a whole, to recognize significant
elements in a situation, and to understand the relationships among the elements. It is a
cognitive ability to coordinate and integrate all of an organizations activities.
ROLE OF MANAGEMENT
In the late 1960s, Henry Mintzberg conducted a precise study of managers at work. He
concluded that managers perform 10 different roles, which are highly interrelated.
Management roles refer to specific categories of managerial behavior. Overall there are ten
specific roles performed by managers which are included in the following three categories.
1. Interpersonal roles include figurehead, leadership, and liaison activities.
2. Informational roles include monitoring, disseminating, and spokesperson activities.
3. Decisional roles include entrepreneur, disturbance handler, resource allocator, and
negotiator.
Although the functions approach represents the most useful way to describe the managers
job, Mintzbergs roles give additional insight into managers work. Some of the ten roles do
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not fall clearly into one of the four functions, since all managers do some work that is not
purely managerial.
FUNCTIONS OF MANAGEMENT
1. Planning. Planning is a mental process requiring foresight and sound judgments. It
involves the laying of objectives and determining the course of action to achieve the
objectives. Objectives have to be clarified before taking any other decisions. They
provide the basis for the future and for evaluating the performance with
predetermined standards.
Planning is based on future situations and is a must at all levels of management. The
success of a plan, therefore, lies in the managers ability to forecast future situations
correctly and accurately. Thus planning implies, deciding in advance what to do, when
to do, and how the results are to be evaluated.
Planning is a continuous process. It is required to ensure effective utilization of
human and non-human resources to accomplish the desired goals. The process of
planning thus involves the following activities:
a. Laying down objectives
b. Developing planning premises
c. Searching alternative courses of action
d. Evaluation of various alternatives and formulation of a plan
e. Formulating policies and procedure
f. Preparing schedules, programs and budgets.
2. Organizing. Once planning is effected, the people in the organization have o be
organized. It is an important activity by which management brings together the
manpower and material resources for the accomplishment of predetermined goals.
Organizing is the process of establishing relationships among the members of the
organization. This relationship is created in the form of authority and responsibility.
Each member in the organization is assigned a specific duty to perform and is granted
the corresponding authority to do it.
In the words of Louis A Allen, Organization is the process of identifying and
grouping the work to be performed and dividing it among the individuals and creating
authority and responsibility relationships among them for the accomplishment of
objectives. The process of organizing thus involves the following activities:
a. Identifying the activities involved in achieving the objectives
b. Grouping the activities into a logical pattern
c. Assigning the activities to employees
d. Delegating authority and fixing responsibility
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e. Coordinating the authority-responsibility relationships of various activities

3. Staffing. Staffing is considered as a separate function in view f the need to employ
the right types of people and develop them for the well-being of the organization.
Thus staffing involves manning the positions created by the organization process. It is
concerned with the human resources of an organization.
In the words of Harold Koontz and Cyril O Donnell. The managerial function of
staffing involves manning the organizational structure through proper and effective
selection, appraisal and development of personnel to fill the roles designed in the
structure. Staffing function, thus involves the following:
a. Manpower planning i.e. determining the number and the kind of personnel
required
b. Recruitment of personnel
c. Selection of the most suitable personnel
d. Placement and orientation of employees
e. Training and development of employees
f. Proper evaluation of employees
g. Transfer, promotion, termination, and lay off of employees
4. Directing. Directing is otherwise called management in action. It is concerned with
the actuating of the members of the organization for the accomplishment of the
enterprise goals. In the words of George R. Terry, Directing means moving to action
and supplying simulative power to the group. Directing thus involves issuing
instructions (or communication) to subordinates, guiding, motivating and supervising
them.
5. Controlling. Controlling is the process of seeing whether the activities have been
performed in conformity with the plans. It helps the management to get its policies
implemented and take corrective actions if performance is not in accordance with the
planned objectives. In the words of E.F.L. Brech, Controlling is the process of
checking actual performance against the agreed standards with a view to ensuring
satisfactory performance. The process of controlling thus involves the following:
a. Determination of standards for measuring work performance
b. Measurement of actual performance
c. Comparing actual performance with the standard
d. Finding variance between the actual and the standard and the reasons for the
same
e. Taking corrective action to ensure attainment of objectives.