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What is management ?
Good management is the backbone of successful organizations. Managing life means
getting things done to achieve life’s objectives and managing an organization means
getting things done with and through other people to achieve its objectives.
Definition of management:
Steps in Management:
PLANNING:
It is the ongoing process of developing the business's mission and objectives and
determining how they will be accomplished. Planning includes both the broadcast view
of the organization, e.g. it's mission, and the narrowest, e.g. a tactic for accomplishing a
specific goal.
ORGANIZING:
STAFFING:
It is function in which qualified people are appointed to different posts relating to their
skills and strengths. The activities included in this function are recruiting, hiring, training,
evaluating and compensating.
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DIRECTING:
Directing is a function that comes after staffing of the organization, it is the function in
which the management is supposed to lead, direct to a specific goal and motivate the
employees for the achievement of any objective, big or small.
CONTROLLING:
COORDINATING:
Coordinating function acts with the help of the following key-tools: communication,
motivation, supervision, and leadership.
Nature of Management:
1. It is both art and science: Science teaches us to know while art teaches us to
do. In order to be successful, managers have to know and do things effectively
and efficiently. This requires a unique combination of both science and art of
managing in them.
2. Universal: Management is a universal process because it does not apply only to
modern major corporations but is a process practised in all spheres of life
including homes and is even found practised in primitive societies and among
other living beings of the earth.
3. Goal oriented Process: The process of management comes with the purpose of
achieving the organizational goals correctly and meaningfully. Hence, it is a goal
oriented process.
4. Social Process: Management is a social process because it deals with people.
To make the best use of human efforts,managers have to create close
co-operation among employees in a organisation.they have to look after the
interests of employees, customers, investors, shareholders and community.
5. Multidimensional: Management covers all aspects of an organization ranging
from work, people and operations. Different mechanisms and systems are set up
for each aspect.
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Objectives of Management:
The most important objectives of the management are to use various resources of the
enterprise in a most economic way.
The proper use of men, materials, machines, and money will help a business to earn
sufficient profits to satisfy various interests i.e. proprietor, customers, employees and
others. All these interests will be served well only when physical resources of the
business are properly utilised.
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The aim of the sound management has always been to produce the better quality
products at minimum cost. Thus, it tries to remove all types of wastages in the business.
The management maintains the discipline and boosts the morale of the individuals. It
motivates the employees through monetary and nonmonetary incentives. It helps in
creating and maintaining better work culture.
The employment of experts in various fields will help in enhancing the efficiency of
various factors of production. There should be a proper environment which should
encourage good persons to join the enterprise. The better pay scales, proper amenities,
future growth potentialities will attract more people in joining a concern.
Management undertakes the research and development to take lead over its
competitors and meet the uncertainties of the future. Thus, it provides the benefits of
latest research and technology to the society.
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Management involves the function of forecasting. Though the exact future can never be
predicted yet on the basis of previous experience and existing circumstances,
management can minimise the element of risk. Management always keeps its ears and
eyes to the changing circumstances.
9. Improving performance:
Management should aim at improving the performance of each and every factor of
production. The environment should be so congenial that workers are able to contribute
their maximum to the enterprise. The fixing of objectives of various factors of production
will help them in improving their performance.
Division of Work
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This principle implies that every employee should be assigned only one type of work. It
aims at the maximum production with least efforts. It also helps in securing the
maximum efficiency.
Authority is the right to give orders to the subordinates. Responsibility means the duty
which the subordinates is expected to perform. Sufficient authority should be delegated
to a subordinate to enable him to discharge his duties.
Discipline
Unity of Command
A subordinate should receive orders from one supervisor only. If he gets orders from
two or more officers at the same time, he gets confused. He cannot discharge his
duties properly. Unity of command is related to functioning of personnel.
Unity of Direction
Unity of direction means that each group of persons having same objects must have
one head and one plan. It will help in establishing the coordination and uniformity in the
activities. It is related to the functioning business as a whole.
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The interests of the organization must prevail upon the personal interests of individuals.
General interest must be given more attention in comparison to the personal interests.
Remuneration of Personnel
The remuneration of personnel must be fair and satisfactory. The wage system must
motivate the employees, to do better and more and may ensure safety and security of
the employees. The wage system must be satisfactory to both the employees and
employer.
Centralization
Scalar Chain
This principle is related to the arrangement of things and the placement of people. This
principle emphasizes that there must be a clear line of authority right from the top
management to the bottom. Orders of management and feeling of subordinates must
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pass through the proper channels of authority. Such types of channels must be short
cut only when it is essential to do so.
Order
Equity
Personnel must be treated with kindness and equity if loyalty is expected of them. This
principle does not mean that all the employees of the organization are equal and must
be treated and paid equal.
Stability of Tenure
This principle requires that there must be stability in the service of the employees. The
employees should not be transfer from one place to another very quickly in business
activities because it lower the progress of activates. Management should remove the
feelings of insecurity of job from the minds of personnel. If the job of a person is not
secure, he will be on lookout for the job else where and his work will not be satisfactory.
Incentives
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The subordinates should be given an opportunity to take some initiatives in making and
executing the plans. The employees should be provided proper incentives in planning
an activities schedule for the enterprise.
Esprit de Corps
This principle means the harmony and understanding among the personnel. The
management and workers must work together as a team for the accomplishment of the
targets of the enterprise. This principle is based upon two theories – “union is strength”
and “unity of the staff is the foundation of success in any organization”.
1. Time Study: is the technique of observing and recording the time required by a
workman of reasonable skills and ability to perform each element of the tasks in
a job. Through time study, the precise time required for each element of a man’s
work is determined. It helps in fixing the standard time required to do a particular
job.
2. Motion Study: The purpose of motion study is (i) to find and eliminate wasteful
motions among the workers, and (a) to design the best methods of doing various
operations. It leads to increase the efficiency of workers by reducing fatigue and
manual labour. It results in higher production and productivity.
3. Functional Foremanship: Functional foremanship is a form, of organisation
which involves supervision of a worker by several specialist foremen. For
instance, matters relating to speed of work and repairs of machinery will be
supervised by the speed boss and the repair boss respectively.
4. Standardisation: Efforts should be made to provide standardised working
environment and methods of production to the workers. Standardisation would
help to reduce spoilage and wastage of materials, improve quality of work,
reduce cost of production and reduce fatigue among the workers.
5. Differential Piece-Wage plan: This plan was suggested by Taylor to attract
highly efficient workers. Under this plan, there are two piece work rates, one is
lower and another is higher. The standard of efficiency is determined in terms of
number of units during a day or standard same. The worker who produces more
than standard output within the standard time.He will be given higher piece rate.
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On the other hand, if a worker is below the standard, he shall be given lower rate
of wages. The slow worker is thus penalised as he gets wages at a lower piece
rate. Thus Taylor’s scheme of wage payment encourages the workers to attain
higher standard of performance and earn wages at higher rate.
Management is a Science:
One of them is that scientific principles are universally accepted. In other words,
scientific laws are the same throughout the world and in every situation. Management,
on the other hand, has its fundamental principles which are universally accepted and
Another feature that indicates that science and management are the same is the
generally accepted, it has to pass through certain scientific investigation and research.
Before management principles are arrived at, scientific inquiry and observation are
carried out. And this might also include practical experiences drawn from a large
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The cause and effect relationship is another feature that defines management and
science as one. In scientific principles, the relationship between cause and effect is vital.
For example, the heating of metal will cause it to expand. The cause is the heat applied
while the effect is the expansion experienced. The same thing applies in management.
For example, it has been established that in companies where there is no balance
Management is an art:
These are features of art that apply to management. It clearly shows that calling it art is
Art is learned and applied. The learning process comes before the application. There is
a vast amount of resources to learn and develop industry knowledge on art which
includes study materials and books available to help artists acquire a better
acquired through learning. In other words, managers can learn about management
operations and principles provided in study materials. It’s also a feature in art.
Personalized Application
One can learn and acquire theoretical knowledge while studying art, but it doesn’t end
there. The knowledge gained must be applied efficiently to yield results. And as a result,
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every artist is expected to possess personal skills and creativity so he or she can put
The same thing applies to management. Learning management principles and theories
isn’t enough. One needs to have the required skills and creativity to use the knowledge
gained to achieve positive results. As with art, two or more managers can learn the
same thing, but the result produced might be different because of their skill and
creativity.
Every artist needs constant practice to reach perfection. Without regular training, the
artist in question will also not improve. After learning their theoretical aspect, the artist
process of getting things done through people. Here importance is given to groups and
not to individuals.
1. Division of Labour
2. Authority and Responsibility
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The scientific management theory focused on improving the efficiency of each individual
in the organization. The major emphasis is on increasing the production through the use
of intensive technology, and the human beings are just considered as adjuncts to
4. Division of Responsibility
5. Mental Revolution.
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Benefits Criticism
1. Replacement of traditional 1. Theory confined to production
techniques system only.
2. Proper selection and Training of 2. Violates the Unity of command
Employees through Functional foremenship.
3. Good Relations between 3. No Trade Unions.
employees and management
4. Standardization of work methods.
5. Incentives for higher production
6. Better utilization of resources
Demerits:
1. Rigidity: Rules and regulations in a bureaucracy are often rigid and inflexible. Rigid
compliance with rules and regulations discourages initiative and creativity. It may also
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things. Organizational rules and regulations are given priority over an individual’s needs
and emotions.
people from performing tasks that they are capable of performing. It also encourages
put into writing. All documents have to be maintained in their draft and original forms.
6. Empire Building: People in bureaucracy tend to use their positions and resources to
perpetuate self interests. Every superior tries to increase the number of his
7. Red Tape: Bureaucratic procedures involve inordinate delays and frustration in the
performance of tasks.
The behavioral management theory is often called the human relations movement
because it addresses the human dimension of work. Behavioral theorists believed that a
better understanding of human behavior at work, such as motivation, conflict,
expectations, and group dynamics, improved productivity.
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The knowledge drawn from behavioral sciences namely psychology, sociology and
anthropology, is applied to explain and predict human behavior.
Features:
● An Interdisciplinary Approach
● An Applied science
● Focus on people from humanistic point of view
● Goal- oriented
● Normative science
Contributions:
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2. Informal organizations: Barnard was of the opinion that both formal and informal
organisations co-exist in every enterprise. Informal organisation refers to those social
interactions which do not have consciously co-ordinated joint purpose.
3. Authority: in the classical view authority comes from the top. Bernard has given a
new concept of authority, which is called ‘Acceptance Theory of Authority’ or ‘Bottom-up
authority’. In his opinion person should obey an order not because it has given by the
superior but he will take it as a communication. This is possible only when:
4. Functions of the executives: Barnard postulated three types of functions for the
executives in forma! organisational set up. These functions are:
5. Organizational Equilibrium: This means the matching of the individual efforts and
organizational efforts to satisfy individuals.
Decision Theory
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choice making activity and choice determines our activity. Whatever a manager does,
he does through making decisions. Hence, decision making is central to managing.
The manager who seeks to take logical and rational approach to decision can follow the
following six steps:
Contributions:
● Concept of Organization
● Decision Making
● Bounded Rationality
● Management by Objectives
● Organizational Communication
This approach to management tries to unify the prior schools of thought is commonly
known as ‘Systems Approach’.
Features of Systems Approach:
(i) A system consists of interacting elements. It is set of interrelated and interdependent
parts arranged in a manner that produces a unified whole.
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(ii) The various sub-systems should be studied in their inter-relationships rather, than in
isolation from each other.
(iii) An organisational system has a boundary that determines which parts are internal
and which are external.
(iv) A system does not exist in a vacuum. It receives information, material and energy
from other systems as inputs. These inputs undergo a transformation process within a
system and leave the system as output to other systems.
(v) An organisation is a dynamic system as it is responsive to its environment. It is
vulnerable to change in its environment.
Contributions:
● Examines the interrelationship and interdependency
● Balanced thinking on organization and management
● It stresses the dynamic, multi-dimensional and adaptive nature of organization.
Limitation:
● Lack of Unification
● Abstract Analysis
● Limited view of organization-environment interface
● Limited Application
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2. Contingency Theory of leadership says that a leader must be able to identify which
management style will help. achieve the organization's goals in a particular situation.
3. The main component of Fiedler's Contingency Theory is the least preferred co-worker
(LPC) scale which measures a manager's leadership orientation.
LIMITATION:
● Inadequate Literature
● Complex
● Difficult empirical testing
● Reactive not Proactive
Types/Style of Management
The essence is conservation of what has worked in the past and has demonstrated
survival value. The principle of survival is at the core of the conservative style of
management. Conservatism does not necessarily mean refusal to change. It means
instead, caution in changing.
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While conservatism facilitates survival, enterprise facilitates conquest and the unfolding
of opportunities for growth. The entrepreneurial style has emerged from this spirit of
adventure, probing and innovation. Entrepreneurship not only creates new industries,
opens up new markets and transforms old or mature industries, it also builds
civilizations.
A scientific approach, high level of formal expertise, reasonable consensus about do’s
and don’ts and formal training are traits of a professional approach to management.
Management as a Profession
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● Communication: Managers are the main line of contact between the frontline
staff, senior management and clients. They are responsible for keeping
everybody informed.
● Problem-solving: Managers may encounter problems in their work. They have
to be able to think on their feet and solve problems as soon as they happen. To
do this they will need to be experts in their field and be able to remain calm and
focused while they come up with solutions.
● Administrative and financial skills: Managers will usually be expected to set
budgets, manage them and carry out other admin such as writing reports. For
this, they will need good numeracy, literacy and computer literacy skills.
● Leadership: Being a leader involves persuading others to follow the direction
you want to go in. As such managers lead by example, have reasonable
expectations of their staff and are excellent persuaders.
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