MANAGEMENT

MANAGEMENT

It is the function that coordinates the efforts of people

to accomplish goals and objectives using available

resources efficiently and effectively.

Example:

Starting a supermarket with an initial budget of Rupees 2 crore.

Resources required:Goods to sell.

Worker

Building/ rented space.

Capital

Management in this case is the distinct process of planning, organizing, actuating and controlling a group a people i.e the workers and the available resources to obtain the pre- determined objective. i.e profit.

VARIOUS DEFINITIONS FOR MANAGEMENT HAVE BEEN PUT FORWARD BY DIFFERENT AUTHORS.

A FEW OF THEM ARE:

DEFINITIONS OF MANAGEMENT

Other defitions: It is the art of getting things done through

people. - Mary Parker

To manage is to forecast, to plan, to organize, to command, to coordinate and to control.

- Henry Fayol

Management is the art and science of decision making and leadership.

- Donald J Cough

Management is a multipurpose organ that manages a business and manages managers and manages workers and work. - Peter Drucker

Ten Roles Of A Manager(by MINTZBERG) Monitor Disseminator Spokesperson Figurehead Leader Liaison Entrepreneur Disturbance handler Resource allocator Negotiator

LEVELS OF MANAGEMENT

TOP LEVEL

MIDDLE LEVEL

LOW LEVEL

Three Levels of Management :Generally, there are Three Levels of Management, viz.,1. Administrative or Top Level of Management.2. Executive or Middle Level of Management.3. Supervisory or Lower Level of Management.At each level, individual manager has to carry out different roles and functions.

MANAGEMENT HIERARCHY

TOP LEVEL MANAGEMENT IS RESPONSIBLE FOR CONTROLLONG AND OVERSEEING THE ENTIRE ORGANISATION

MIDDLE LEVEL MANAGEMENT IS RESPONSIBLE FOR EXECUTING POLICIES WHICH COMPLY WITH THE COMPANY’S POLICIES

LOW LEVEL MANAGERS CONTROL THE JOB AND GET IT DONE

TOP LEVEL DECIDES THE TRAJECTORY THAT THE COMPANY TAKES

MIDDLE LEVEL MANAGEMENT INTERMEDIATES BETWEEN TOP LEVEL AND LOW LEVEL

LOW LEVEL MANAGERS ACT AS ROLE MODEL FOR THE WORKERS

THEY CONSIST OF BOARD OF DIRECTORS, GENERAL MANAGERS, CEO’s etc

THEY MAKE STRATEGIES, COMPANY POLICIES AND ASSESS THE COMPANY PERFORMANCE

THEY HAVE THE FINAL SAY IN THE FINANCIAL, MARKETING AND THE HUMAN RESOURCE ASPECTS OF THE COMPANY.

TOP LEVEL MANAGEMENT

TOP LEVEL MANAGERS POSSESS MORE CONCEPTUAL SKILLS THAN TECHNICAL SKILLS.

THEY ARE THE MOST RESPONSIBLE LEVEL OF AN ORGANISATION.

THEY ARE ANSWERABLE TO THE SHAREHOLDERS AND THE GENERAL PUBLIC

THEY ARE AT THE CENTRE OF THE HIERARCHY OF THE ORGANISATION

THEY PROVIDE MOTIVATION TO THE LOW LEVEL MANAGERS AND THE WORKERS

THEY HELP CHANNELISE THEIR OBJECTIVE TO A COMMON GOAL

MIDDLE LEVEL MANAGEMENT

THEY EXECUTE THE ORGANISATIONAL PLANS IN

COMPLIANCE WITH THE DECISIONS TAKEN BY THE TOP LEVEL

THEY HELP TO PENETRATE INFORMATION FROM THE TOP

LEVEL TO THE LOW LEVEL

THEY ALSO COMMUNICATE UPWARDS BY SENDING

FEEDBACKS TO THE TOP LEVEL FROM THE WORKERS.

THEY DEVOTE MORE TIME TO ORGANISATIONAL AND

DIRECTIONAL WORKS

◦TOP LEVEL MANAGERS

◦ CEO’S, MANAGING DIRECTOR’S , CHAIRMAN, STAKEHOLDERS etc

MIDDLE LEVEL MANAGERS

LIAISON OFFICERS, SALES MANAGERS, MARKETING MANAGERS ctc

Low-level managers focus on controlling and directing. They serve as role models for the employees they supervise.

Examples of low-level managers include supervisors, section leads, and foremen.

Functions of Lower Level Management:  The various functions of supervisor are as follows:1) To issue orders and instructions to the workers and to supervise and control their work2) To plan the activities of his section3) To classify and assign jobs to the workers4) To direct and guide the workers about work procedure

5) To arrange for the necessary tools, equipment, materials etc., for the workers6) To arrange for providing on the-job training to the workers7) To look after the proper maintenance of tools, machinery etc8) To solve the problems of workers9) To inform the management about the problems of workers which are not solved at this level.

10) To advise middle management about the working environment and to act as liaison between the middle management and the rank and file workers11) To maintain discipline among the workers and to develop in them the right approach to work.12) To maintain good human relations.13)  To build a high group morale among the workers.

 14) Low-level managers are role models for employees. These managers also provide:Basic supervision;Motivation;Career planning;Performance feedback; andStaff supervision.

MANAGERIAL SKILLS

Conceptual

Thinking

Planning

Deciding

Interpersonal

Coordinating

Communicating

Technical

Directing

Controlling

Creating morale

Conceptual skills revolve around generating ideas through creative intuitions and a comprehensive understanding of a given context.

Conceptual skills-"helicopter mind" meaning that one is able to rise above a problem and see it in context.

Conceptual Skills

It includes recognizing how the various units of the organization depend on one another and how changes in any one part affect all the others.

Also include the communicative capacity to discuss and debate in pursuit of a good strategy.

These skills are mainly required by top level managers; CEO, COO, President, Vice President, etc.

Human relations skills. It is a priority for all levels of

management. It is a manager’s ability to work effectively

as a team member and to build cooperative effort in the unit.

Leadership, liaison, figurehead. Middle level synchronizes top and lower

levels of management.

Interpersonal Skills

It is also known as Soft skills. Multiculturalism-the ability to work

effectively and conduct business with people from different cultures.

Human skills are used to communicate, motivate, lead, and inspire enthusiasm and trust.

Technical skill involves an understanding of and proficiency in a specific activity that involves methods, processes, procedures, or techniques.

Technical skill is a priority for middle level management.

Also referred to as Hard skills It includes the ability to:

Prepare budget Prepare a spreadsheet Developing a marketing campaign

Technical skills

ADMINISTRATION

The process or activity of running a business or an organization .It also deals with public affairs, government interests..

It is mainly concerned with laying down the objectives of the enterprise , formulating its policies , determining the broad organization structure , and overall control of the undertaking.

Administration comprises a group of individuals who are in charge of creating and enforcing rules and regulations, or those in leadership positions who complete important tasks. The individuals maybe owners who invest in and receive profits from the enterprise.

It’s a top level function that jots down goals and objectives of the enterprise.

Administration is also responsible for providing direction, guidance and leadership to the activities of the enterprise

Administration is popular with the government, military, educational, and religious organizations. Its decisions are influenced by public opinion, government policies, social, and religious factors.

Designations include- chairperson, commissioner, chancellor etc.

Functions of Administration include: Planning, Organizing, Staffing , Directing, Controlling, Budgeting

ORGANIZATION

Organizing involves the grouping of activities necessary to accomplish goals and plans, the assignment of these activities to appropriate departments and the provision for authority delegation and co-ordination.

It is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishment of relationships for enabling the people to work most efficiently together in accomplishing objectives .

STEPS IN ORGANIZATION

Determination of objectives.Division of objectives and appointing individuals or task forces to each.

Developing relationships between the various divisions.

Co-ordination of their activities.

FORMAL ORGANIZATION It is a fixed set of rules of intra-organization procedures and structures.

Clear-cut written out rules. Brings limitation on the activities of the individual.

Strictly followed in some societies; empty formalism in others.

INFORMAL ORGANIZATION It is the interlocking social structure that governs how people work together in practice.

Constantly evolving , dynamic and responsive.

Treats people as individuals and excellent at motivation.

MANAGEMENT VS ADMINISTRATION

MANAGEMENT

Art of getting things done through others by directing their efforts towards achievement of pre-determined goals.

Executing function, doing function

Decisions within the framework set by the administration.

Middle level activity

ADMINISTRATION

Formulation of broad objectives, plans & policies.

Decision-making function, thinking function

Major decisions of an enterprise as a whole.

Top level authority

MANAGEMENT

Group of managerial personnel who use their specialized knowledge to fulfill the objectives of an enterprise

Used in business enterprises.

Decisions are influenced by the values, opinions, beliefs and decisions of the managers.

Motivating and controlling Handles the employees.

ADMINISTRATION

Consists of owners who invest capital in and receive profits from an enterprise.

Popular with government, military, educational, and religious organizations.

Influenced by public opinion, government policies, customs etc.

Planning and organising Handles the business

aspects such as finance.

Characteristics of Management

1. Management is goal oriented process:

Management always aims at achieving the organisational objectives.

2. Management is pervasive:

Management is a universal phenomenon. The use of management is not restricted to business firms only it is applicable in profit-making, non-profit-making, business or non-business organisations; even a hospital, school, club and house has to be managed properly.

3. Management is Multidimensional:

Management does not mean one single activity but it includes three main activities:

i. Management of work ii. Management of people iii. Management of operations

(i) Management of work: All organisations are set up to perform some

task or goal. Management activities aim at achieving goals or tasks to be accomplished.

(ii) Management of people:

People refer to Human resources and Human resources are the most important assets of an organisation.

(iii) Management of operations:

Management of operations concentrates on mixing management of work with management of people, i.e., deciding what work has to be done, how it has to be done and who will do it.

4. Management is a continuous process: Management is a continuous or never

ending function. All the functions of management are performed continuously.

Managers perform ongoing series of functions continuously in the organisation.

5. Management is a group activity:

Management always refers to a group of people involved in managerial activities. The management functions cannot be performed in isolation.

6. Management is a dynamic function:

Management is a dynamic activity as it has to adjust itself to the regularly changing environment. It can be rightly said that nothing is eternal in management.

The external environment such as social, economical, technical and political environment has great influence over the management.

7. Management is intangible: Management function cannot be physically

seen but its presence can be felt. The presence of management can be felt by seeing the orderliness and coordination in the working environment.

8. Balancing effectiveness and efficiency:

Effectiveness means achieving targets and objectives on time. Efficiency refers to optimum or best utilisation of resources. Managements always try to balance both and get the work done successfully.