Concept of management

CONCEPT OF MANAGEMENT

Management is the process of getting things done through others with the help of some basic activities like planning,organiging,directing and controlling.

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Management is principally the task of planning , coordinating motivating and controlling the efforts of others towards specific objectivejames L lundyManagement consists of getting things done through others, a manager is one of who accomplish objectives by directing the effort of others. C.s George

Hence management is the art of getting things done through others in systematic and effective manner.

As activityThe activities of managers,like communicating information decision making and maintaining interpersonal relation to achieve goal is management.

Management conceptTheo Haimann

Features of managementGoal orientedUniversal activity Social processDynamic activity Distinct processBoth science and artA professionMultidisciplinary in natureBoth tangible and intangible

Management as science

science is the systematized body of knowledge,princ iple and truth which is experimentally proved. The basic principles of management are based on obserbation and experiment and are applied in all types of organizations,so it is a social science as it deals with the people and their behaviour.

Management as a scienceExistence of systematized body of knowledge Basic principles and truth of universally applicableUse of scientific methods of observationPrinciples based on experiment and researchEstablised cause and effect relationship

Management as an art

Management is the art of getting things done through and with people in formally organized group.Koontz and DonnelManagement is the art of getting things done through others. For this manager has to play the role of artist.

Management as an art

Existence of practical knowledgePersonal skillResult oriented approachCreativityImprovement through practice

Management as a profession

A profession may be defined as an occupation of a specialized and personal nature of service for which there is a fee called a professional charge is to be paid.

In corporate sectors ,where the management and ownership are different, it is necessary to appoint professional managers.

Management as profession

Specialized knowledgeFormal education and training Representative of associationsService elements/social obligationEthical standards

Management and administration Administration:-Administration is the function in the industry concerned with the determination of corporate policy, the co-ordination of finance, production and distribution and the settlement of the organization under the control of executive. thinking function

Management :- it is the executive function that is primarily concerned with carrying out the broad policies laid down by the administration.Doing function

Management and administration

Middle levelLower levelTop level

management

administrtion

Difference between management and administrationPoints of diffrenceManagementAdministrationNature of functionsOperational and executiveThinking and decision makingTypes of functionPlanning,Organizing,Staffing.directing,ControllingDetermination of obj. ..formulation of policiesLevel of authorityOperational level Top levelApplicableBusiness and social institutionGovernment, cultural and religious orgnisationAbilityAdministrative /technicalAdministrative

Decision makingInfluence by opinion ,value ,views, ethicsGovernment policies, public opinion, tradition , and cultureStatusEmployee for salaryInvestor for profitArea of importanceSupervisory or operational levelHigher or thinking level

Functions of managementThe major functions of management involve planing, organizing, staffing, direcing and controlling.oODScPORB..PODSCORB

PlanningPlanning is the process of thinking before doing any activity.

- Determination of organizational goal - Making forecast for future activity and events - Formulation of policies and procedures - Preparation of schedule , programme , budget of work.

Organizing is the process of identification of major activities, grouping them on the basis of nature, and assigning them to different departments. .Identifications of major activities-grouping them to manageable units-assignment of work to different departments and employees-development of rules and regulation and procedures-delegation of necessary authority

Staffing is the recruitment, selection, appointment and placement of right person to the right job.

-Determination of manpower required in department -Recruitment, selection ,appointment of right person -Management of developmental programme eg. Training -Development of evaluation , promotion and transfer procedure -Providing proper remuneration

Staffing

DirectingDirecting is concerned with providing instruction , guidance and inspiration to workers for achieving common goals. it also involve activities like supervision , coordinating , motivation ,leadership and communication.

i.SupervisionSupervision refers to the direct and immediate guidance to the subordinates to ensure the execution of assigned works.Optimum utilization human and physical resourceTo provide guidance to subordinateTo increase efficiencyTo reduce the cost

II. motivationMotivation is the process of developing feeling among workers to do their work in best efficiency.To stimulate subordinatesTo fulfill their basic and social needsTo achieve organizational goalsThey are either financial or non financial

iii. leadership Leadership is the art of influencing on the behaviour and performance of the subordinates.-to persuade subordinates to work together-to achieve the organizational goal-to influence the attitude of worker-to increase the beliefs

IV communication Communication is the transmission of information from one person to another or from one place to another place to achieve objectives.To exchange idea, facts opinionTo follow the informationTo achieve organizational goal

v. Coordination

Coordination is the process of orderly arrangement of group efforts to provide unity of action for the attainment of common goalTo integrate all the unitsTo bring uniformity of performanceTo achieve the objective of organizationTo build the team spirit

ControllingControlling is the process of comparing actual performance achieved with that of planned performance and taking corrective measure if there is deviation.Setting standard for the designed workMeasuring actual performance with the predetermined objectivesLocating deviation between actual and planned performanceAnalyzing the causes of deviationTaking corrective action to achieve goals

Levels of managementThe management hierarchy is divided into different level to bring smoothness and uniformity in different branches of organizational is called level of management. They are :-The upper level/top level managementThe middle level/intermediate level managementThe first/lower level management

Levels of management

Level of management

Level of management

Top Level of Management

The Top LevelManagementconsists of the Board of Directors (BOD) and the Chief Executive Officer (CEO). The Chief Executive Officer is also called General Manager (GM) or Managing Director (MD) or President. The Board of Directors are the representatives of the Shareholders, i.e. they are selected by the Shareholders of the company. Similarly, the Chief Executive Officer is selected by the Board of Directors of an organization.

The main role of the top level management is summarized as follows

The top level management determines the objectives, policies and plans of the organisation.They mobilises (assemble and bring together) available resources.The top level management does mostly the work of thinking, planning and deciding. Therefore, they are also called as the Administrators and the Brain of the organisation.They spend more time in planning and organising.They prepare long-term plans of the organisation which are generally made for 5 to 20 years.The top level management has maximum authority and responsibility. They are the top or final authority in the organisation. They are directly responsible to the Shareholders, Government and the General Public. The success or failure of the organisation largely depends on their efficiency and decision making.

Middle Level of Management

The Middle Level Management consists of the Departmental Heads (HOD), Branch Managers, and the Junior Executives. The Departmental heads are Finance Managers, Purchase Managers, etc. The Branch Managers are the head of a branch or local unit. The Junior Executives are Assistant Finance Managers, Assistant Purchase Managers, etc. The Middle level Management is selected by the Top Level Management.

The middle level management emphasize more on following tasks :-Middle level management gives recommendations (advice) to the top level management.It executes (implements) the policies and plans which are made by the top level management.It co-ordinate the activities of all the departments.They also have to communicate with the top level Management and the lower level management.They spend more time in co-ordinating and communicating.They prepare short-term plans of their departments which are generally made for 1 to 5 years.The middle Level Management has limited authority and responsibility. They are intermediary between top and lower management. They are directly responsible to the chief executive officer and board of directors.

Lower Level of ManagementThe lower level management consists of the Foremen and the Supervisors. They are selected by the middle level management. It is also called Operative / Supervisory level or First Line of Management

The lower level management performs following activitiesLower level management directs the workers / employees.They develops morale in the workers.It maintains a link between workers and the middle level management.The lower level management informs the workers about the decisions which are taken by the management. They also inform the management about the performance, difficulties, feelings, demands, etc., of the workers.They spend more time in directing and controlling.The lower level managers make daily, weekly and monthly plans.They have limited authority but important responsibility of getting the work done from the workers. They regularly report and are directly responsible to the middle level management.Along with the experience and basic management skills, they also require more technical and communication skills.