Introduction to management:
Meaning of Management: Management is the keyword of today. Everywhere activity is center around management.
However, management is not a new concept. In fact, it is an age-old activity. It is in existence since ancient times.
In the process of evaluation, the man left his nomadic life and started settling down at some permanent place.
He formed groups and started activities like cultivation, fishing, cattle rearing, etc. Management has been present since then. Whenever there is a group activity management is required.
We find the dresses of management in the old days in all civilizations. Egyptians build the pyramid using management techniques in the old days.
Buddhist monasteries use management fundamentals to teach their students. Chinese or Arabian traders used management while trading.
Thus, for so many years people from all parts of the world are using management to perform various activities.
The modern world cannot function without management. Management plays the most important role in any activity of today. It may be a business activity, sports activity, etc.
Therefore it is essential to study the concept of management in detail.
Definition of management:
The word management is derived from the Latin word ‘manus’ which means hands. It means management is handling some activity.
In the old days, people use management for completing the activity only. Has the days passed more features were added to management.
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The modern concept of management is exhaustive it not only includes handling but many other aspects also.
Definitions of Management given by different management thinkers
Management is an art of getting things done through others
This definition is one of the traditional definitions. It means management is done to get the work completed from people. However, it does not consider other factors of Management like management of materials, finance, etc.
To manage is to forecast, to plan, to organise, to command, to co-ordinate and to control.
Henry fayol has emphasized mainly on the functions of Management. According to fayol, it includes how to do the work in a systematic manner, plan and organizes, giving directions to people and coordinating all the activities.
Managements co-ordination of resources through the process of planning, organising, directing and controlling in order to attain stated objectives.
Taylor goes one step ahead and thinks management as a course of action (process). It includes certain activities like planning, organizing, etc.
J.D. Mooney and A.C. Reiley says:
Management is the art of directing and inspiring people
This definition goes beyond functions and considers management as giving inspiration to people to work.
The role of a manager is very important in motivating people to achieve the objectives. He died then and motivates them without pressurizing them.
Features of Management:
Management is goal oriented:
Management is done to attain a certain goal. It is a purposeful activity.
Every activity is done to accomplish a certain objective example a business is carried on to get profit, a cricket match is played to win, a government functions to look after the overall administration of a country, etc.
These goals are decided before conducting any activity. Management is done to attend these goals. Managers take the efforts to achieve the objective. Management is not possible without any objective.
Management is a group activity:
Management is always done by a group and for a group. The definition of management also emphasizes on getting things done through people.
It is clearly indicated that management is conducted to carry on an activity of people in a proper manner. Management is teamwork.
Management is done at all the levels in any organization eg board of directors take the policy decision for the company collectively.
It means the decision is taken by a group (i.e. Board) for a group (i.e. employees of the company).
Management is universal:
This is an important feature of management. It means management is applicable to all.
Management covers all areas wherever collective activities of people take place. It is not restricted to business but it includes non-business activities also.
It means management is done for commercial, educational, political, social, religious and other activities.
E.g. management is done to sell a new mobile phone model and management is done to conduct a rally for raising funds for tsunami-affected areas.
Management is a continuous process:
Continuity is an essential part of management. Management is done constantly throughout the activity.
It is because management is required at every stage of the activity. Management is necessary to begin the activity.
It is also required to run the activity constantly and smoothly. Just like breaking is essential to survive, management is essential for the survival of the activity.
Management is intangible:
Even though management is inevitable in every collective human activity, it cannot be seen as an object. In fact, it is an abstract term.
However, management can be felt by its unseen force. It can be experienced by the results such as increased profits, the success of the event, smooth working of the organization, good employee-employer relations, etc.
Management is dynamic:
Since olden days, management has changed to suit the changed situation. Management is not static but it is dynamic in character.
It adopts suitable changes to achieve the goals. Example after the adoption of liberalization policy around in 1991 by the majority of the countries, the management pattern of the business organization of those countries changed drastically.
The business organization started finding out the possibilities of trade with different countries. That food their management started making policies suitable to the liberalization policy.
Management is Situational:
Managerial decisions are taken to handle a particular situation.
No doubt they are based on the principles, theories, and techniques but they are applicable in certain situation. while taking the decision situational priorities and conditions are taken into consideration.
The management techniques used in one situation may not be used in other similar situation.
Various levels of Management
Management exists everywhere. It is universal.
Management is required in every organization. However, the size of every organization is not the same. Some are small scale organizations. some are medium scale and some are large scale organizations.
The style of Management for different scales is different. The management of the small organization is simple
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e.g. management of a grocery shop is simple than management of a bank or a car manufacturing company.
In a large scale, organization management is complicated. Therefore it is done by making different parts of the level of in the organization.
The levels are made according to the size and requirement of the organization. Usually, there are three levels of Management.
Three levels of Management are
- Middle level
- Lower (supervisory) level
Top level management:
Top level management is the ultimate authority in the organization. No one works above the top level management. top-level management frames the objectives and decides the policies to achieve the objectives.
Board of directors, managing directors or CEO’s (chief executive officer) of the organization are in the top level management.
Functions of top-level management:
- Who decide the objectives of the organization.
- To frame the plans and policies to achieve the objective.
- To see that the policies are properly implemented.
- To create various position to do different activities.
- to appoint leaders at middle-level management and give them directions to carry out different activities.
- To evaluate (check) the performance of various departments.
Middle-level management box under top-level management. it is a level between the top level and lower level of management.
It mainly is concerned with the implementation of plans and policies in the organization. it consists of the heads of various department example finance, production sales, marketing, etc.
Function of middle-level management:
- To link the top and lower level management.
- To understand the policies framed by top level management.
- To decide the plan of action in the department to achieve the targets given.
- To assign specific duties to the staff in the department.
- To help top management to coordinate the activities of various departments.
- To train people from the department of carrying out different activities in the future.
- To appoint lower or supervisory level staff.
Lower (supervisory) level management:
lower level management works under middle-level management. It is also called the operational or supervisory level of management.
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The lower level of management consists of supervisors, foremen, superintendents, and other junior executives.
Functions of lower level management:
- To get the instructions from middle-level management and act accordingly.
- To assign work to the subordinates.
- To give instructions and direct the subordinate to complete the task.
- To guide the subordinates wherever necessary.
- To look after the maintenance of the machinery, equipment, tools, etc.
- Solve the problems and settle the disputes of the subordinates.
- Conduct quality check of the product or service from time to time.
Nature of principles of management:
Management principles are universal:
Management principles are universally applicable.
They cannot be applied everywhere and in all situations of business.
Not only that, they are applicable to all types of business organizations, irrespective of the size of the business, nature of the business, etc.
Similarly the applicable to all levels of Management.
Cause and effect relationship:
Principles of management are the base for taking decisions.
They Determine the cause or reason for a particular effect.
E.g. payment of wages and incentives helps in increasing the output of workers or making effective advertisement increases the sale of a product.
Management principles are flexible:
Management principles are flexible in nature. It means that they can be changed or modified according to the situation.
Managers can band this principle to suit the requirement. The situations in a business organization keep on changing continuously.
No two circumstances are the same. Management principles can be adjusted or modified and used in the organization according to the needs.
Management principles are aimed at influencing human behavior:
Management aims at achieving a certain goal through a group of human beings
Management principles are designed to influence members. Best musicals control a group of persons and direct them to achieve the objective.
Management principles are relative in nature:
Management principles are the principles of social science. They are not absolute like the principle of science.
It means this principle is applied in different ways in different situations. They are to be changed or modified according to the situation to get the correct and desired result.
All principles are of equal importance:
All the principles of management are equally important. All are to be practiced simultaneously to get a perfect result.
No one principle is more important than other if any single principal does not practice for followed by the managers, it affects the working of the organization.
Henry fayol’s principles of management:
Henry fayol (1841-1925): Henry fayol was a French mining engineer. He worked as the director of mines also.
After conducting many experiments in management, he develops 14 principles of management.
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These principles are explained in his famous book ‘General and Industrial Administration’.
due to his contribution to management, he is called ‘the Father of modern management’.
14 principles of management by Henry Fayol’s
Principle of the division of work:
According to his principle, the total work should be divided into small subparts.
The divided work should be assigned to different employees, as per their capacities, skills, and interests.
Fayol’s says the division of work leads to specialization.
When the work is assigned to a person, he should be given proper authority to carry out that work.
Example a manager should be given authority to take managerial decisions on his own.
Then only he can function properly however, authority is always accompanied by responsibility.
When a person is given the authority, he should be held responsible for the same task. Authority and responsibility always go hand in hand.
If the manager is given the authority to complete a task within a given time, he should be held responsible if he does not do that on time.
Principle of discipline:
According to fayol, discipline is the most essential aspect of the organization.
The employee must obey and respect the rules that govern the organization. Discipline helps to achieve the goals set in the organization.
Good discipline is the result of effective leadership. For that, there must be a clear understanding between the management and workers regarding the organization’s rules.
Principle of unity of command:
In an organization, every employee should receive orders from one superior boss only.
this is applicable for top management to bottom. The principle of unity of command tries to avoid confusion.
If any employee receives orders from more than one superior he will be confused and no work will be of formed properly.
whereas if he gets an order from only one person, he will finish his work accurately.
Principle of subordination of individual interest to general interest:
According to this principle, the interest of an individual must be given less important than the interest of the whole organization.
While taking decisions in the organization, the manager should always consider the interest of the whole group rather than the interest of a single employee.
Similarly, the employee should also protect the interest of the organization and consider his interest subordinate.
If the organization prospers, automatically the employee will prosper.
Principle of unity of direction:
unity of command explains about a single person getting directions from a single person.
But the unity of direction explains about a group working with the same objective under the directions of a single person.
According to the principal, Eid group in the organization should have the same objective.
The group should be directed by one manager using one plan.
Principal of scalar chain:
Usually, in the organization, there is a particular system of communication. It is through a chain.
Example the manager will inform about a decision to the department head, the department head will inform the supervisor, the supervisor will inform the foremen and the foremen man will inform the workers.
On the other hand, communication can flow from the worker to the manager in the upward direction also.
It is known as a scalar chain. However, this type of communication at times is very consuming.
Therefore sometimes cross communication i.e. communication not exactly following the chain, should be allowed.
This is known as Gang Plank. It avoids delays.
Gang plank must be done with a proper permission of the authorities.
Principle of remuneration:
This principle states that the employees must be paid fair wages for their services.
while paying remuneration, skill, expertise, knowledge, tenure, etc. The employee should be taken into account.
When the employees are paid fair remuneration, they show greater productivity and give more output.
Principle of equity:
This principle is about fair and equal treatment for all employees.
Managers should be kind and fair to their subordinates.
Best should not be any discrimination between the employees.
e.g. The employees working on the same level but in different departments should be paid the same wages.
Their wages should not depend on the department but the level at which they are working.
While distributing work between people and the departments, this principle should be followed by the manager.
As far as possible, there should be an equal division of work.
This avoids conflicts in the organization.
Principle of centralization:
Centralization refers to the concentration of power or authority.
In some organizations, this power is wasted in one hand or a few hands.
The situation of girls in small organizations.
but if the size of the organization is large then centralization becomes difficult.
Then there is decentralization of power or authority.
The power is given to different people example in large scale, there are departmental heads for managers handling the different task or line supervisors.
According to this principle, there must be a proper balance between, centralization and decentralization in the organization.
This is to be done according to the size of the organization, nature of the activity, etc.
Principle of Esprit de Corpse (Teamwork):
Esprit de Corpse means the union is a strength.
Management is a group activity.
Human resource is a great asset of the organization.
The manager should create a spirit of teamwork among the employees.
A manager should build a sense of togetherness among the employees.
If the workers work with unity, the goal can be achieved easily.
Principle of initiative:
The initiative refers to taking the first step. It also means thinking of new ideas.
According to this principle, the manager should encourage the employees to take the initiative.
The employees should come with the new ideas and the manager should welcome their ideas.
This approach helps the organization to grow.
It also creates a sense of belonging for the organization in the minds of the employees.
Principle of order:
According to this principle, people and materials should be in the right place at the right time.
It means there must be a proper arrangement of material.
It must have the right place.
Similarly, there must be proper placement of personnel.
They must be appointed to do the right work at the right place.
The principle emphasizes the proper utilization of physical and human resources.
Principle of stability of tenure:
While appointing an employee the managers should assure the stability of tenure or job security to the employee.
This creates a sense of belonging among the employees.
There should not be any uncertainty in the mind of the employees regarding the stability of the job.