top level management - e-CTLT

1) Management is goal oriented: - Management always aims at achieving
the organisationl objectives. The functions and activities of manager lead to
the achievement of organisational objectives. If the objective of a company
is to sell 1000 computers then manager will plan the course of action,
motivate all the employees and organise all the resources keeping in mind
the main target of selling 1000 computers.
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 .concept of management is used in the whole world whether it is
uk, usa,india.
3) Management is a group activity: - Management always refers to a
group activity of people involved in managerial activities. The management
cannot be performed in isolation. Each individual performs his/her role at
his/her status and department, then only management function can be
executed. Even the result of management affects every individual and every
department of the organisation so it always refers to a group effort and not
the individual effort of one person.
4) 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. It is easier to
feel the presence of mismanagement as it leads to chaos and confusion in
the organisation.
5) Management is a dynamic function: - Management has to make changes
in goal, objectives and other activities according to changes taking place in
the environment. The external environment such as social, economic,
technical and political environment has great influence over the
management. As changes take place in these environments.
6) Management is a continuous process: - Management is a continuous
process or never ending function. All the functions of management are
performed continuously, for e.g. planning; organising, staffing, directing
and controlling are performed by all the managers all the time. Sometimes,
they are doing planning, then staffing, or organising etc. managers
performs on-going series of functions continuously in the organisation.
Objectives of Management
Organizational/Economic objectives:
Organizational or economic activity involves optimal utilization of the
human resources available.These objectives aims at prosperity growth
of the organisation.The managers try to develop and attain variety of
objectives in all management areas which reduces cost and brings
maximum prisperity for organisation.
Survival: The basic purpose of every organisation is to survive
in the competition market for a long time and it is possible only
when it is able to cover its cost and earn profit.
Profit:The most important objective of every organisation is to
earn profits.Profit is essential for survival ,growth and
expansion of business.
Growth: To continue in the long run, an organization should
focus on growth in terms of sales, production, number of
employee, etc.
Social objectives
Social obligations such as adoption of environment –friendly
production methods, contribution to social causes such as
imparting education to children and providing employment to
unemployed, etc, should be considered.
The major social objectives of business are1) Supply of quality products at reasonable prices.
2) Contribution towards desirable civic activities.
3) Generation of common wealth.
4) Generation of employment opportunities.
5) Financial support to community.
Personal objectives
The personal objectives of the individuals (financial
objectives as well as social objectives) must be
The main individual objectives of management are1) Compettive salary.
2) Personal growth and development.
3) Social recognition.
4) Peer recognition.
5) Good and healthy working conditions.
Workers may lose interest in work if their objectives
are neglected.
The major importance of management are :
1. Management helps in achieving group goals:
Management tries to integrate the objectives of individuals
along with organizational goal. Management directs the efforts
of all the individuals in the common direction of achieving
organisational goals.
2. Management improves efficiency. Managers try to reduce
the cost and improve productivity with minimum
wastage of resources . Management insists on efficiency
and effectiveness in the work through planning,
organizing, staffing , directing and controlling.
3. Management creates a dynamic organization.
Organizations have to survive in dynamic environment so
managers keep making changes in the organization to
match the environmental changes. The employees in the
organization are generally resistant to change. Efficient
management motivate employees to adopt changes
willingly by convincing them that change is not only
beneficial for organization but it improve the employee’ s
work also in the competitive world.
4. Management helps in achieving personal objectives. An
efficient manager is the one who brings maximum
prosperity for employer as well as employees. Managers
lead the people in such a manner that along with
organizational goal individual goal of employees is also
achieved. As organizational goal and individual goal are
in one direction only. Individual wants to earn more and
organization wants maximum production. Employees can
earn more by producing more. This will fulfill the
objectives of both the groups.
5. Management help in development of society. Efficient
management always has multiple objectives, they give
due importance to social obligations , towards different
groups of people such as employees, customers ,suppliers
etc. it insists on providing quality goods, competitive salary
, create employment opportunity etc. by increasing
production management also contributes to increase in
GDP and leads to growth of nation.
6. Management brings harmony in work. In an organization
employees come from different backgrounds, they have
different attitudes and different styles of working and
if every one start following his own style , it can lead to
chaos and confusion in the organization. By giving
directions managers bring uniformity and harmony in the
action of employees.
Management is as old as civilization. Although modern
organisations are of recent origin, organized activity has
existed since the time of the ancient civilizations. In fact,
organisations may be considered the distinguishing feature that
separated civilised society from uncivilized ones. The earliest
management practices were a set of rules and regulations that
grew out of the experiences of governmental and commercial
activities. The development of trade and commerce gradually
led to the development of management principles and
practices. The term ‘management’ today has several different
connotations that highlight the different aspects of its nature.
The study of management has evolved over a period of time
along with the modern organisations; based both on the
experience and practice of managers and a set of theoretical
relationships. Over a period of time, it has grown into a
dynamic subject with its own special characteristics. However,
one question that needs to be addressed pertaining to the
nature of management is whether it is a science or an art or
both? In order to answer this let us examine the features of
both science and art to see how far management fulfills them.
What is art?
Art is the skillful and personal application of existing knowledge
to achieve desired results. It can be acquired through study,
observation and experience. Since art is concerned with
personal application of knowledge some kind of ingenuity and
creativity is required to practice the basic principles learnt. The
basic features of an art are as follows:
(i) Existence of theoretical knowledge: Art presupposes the
existence of certain theoretical knowledge. Experts in their
respective areas have derived certain basic principles which
are applicable to a particular form of art. For example, literature
on dancing, public speaking, acting or music is widely
(ii) Personalised application: The use of this basic knowledge
varies from individual to individual. Art, therefore, is a very
personalized concept. For example, two dancers, two speakers,
two actors, or two writers will always differ in demonstrating their
(iii) Based on practice and creativity: All art is practical. Art
involves the creative practice of existing theoretical knowledge.
We know that all music is based on seven basic notes.
However, what makes the composition of a musician unique or
different is his use of these notes in a creative manner that is
entirely his own interpretation.
Management can be said to be an art since it satisfies the
following criteria:
(i) A successful manager practices the art of management in
the day-to-day job of managing an enterprise based on study,
observation and experience. There is a lot of literature
available in various areas of management like marketing,
finance and human resources which the manager has to
specialise in. There is existence of theoretical knowledge.
(ii) There are various theories of management, as propounded by
many management thinkers, which prescribe certain universal
principles. A manager applies these scientific methods and body
of knowledge to a given situation, an issue or a problem, in his
own unique manner. A good manager works through a
combination of practice, creativity, imagination, initiative and
innovation. A manager achieves perfection after long practice.
Students of management also apply these principles differently
depending on how creative they are.
(iii) A manager applies this acquired knowledge in a
personalized and skillful manner in the light of the realities of a
given situation. He is involved in the activities of the
organisation, studies critical situations and formulates his own
theories for use in a given situation. This gives rise to different
styles of management The best managers are committed and
dedicated individuals; highly trained and educated, with
personal qualities such as ambition, self motivation, creativity
and imagination, a desire for development of the self and the
organisation they belong to. All management practices are
based on the same set of principles; what distinguishes a
successful manager from a less successful one is the ability to
put these principles into practice.
Science is a systematized body of knowledge that explains
certain general truths or the operation of general laws. The basic
features of science are as follows:
(i) Systematised body of knowledge: Science is a systematic
body of knowledge. Its principles are based on a cause and effect
relationship. For example, the phenomenon of an apple falling
from a tree towards the ground is explained by the law of gravity.
(ii) Principles based on experimentation: Scientific principles
are first developed through observation and then tested through
repeated experimentation under controlled conditions.
(iii) Universal validity: Scientific principles have universal
validity and application.
Based on the above features, we can say that management
has some characteristics of science.
i) Management has a systematized body of knowledge. It has its
own theory and principles that have developed over a period of
time, but it also draws on other disciplines such as Economics,
Sociology, Psychology and Mathematics. Like all other organised
activity, management has its own vocabulary of terms and
concepts. For example, all of us discuss sports like cricket and
soccer using a common vocabulary. The players also use these
terms to communicate with each other. Similarly managers need
to communicate with one another with the help of a common
vocabulary for a better understanding of their work situation.
(ii) The principles of management have evolved over a period
of time based on repeated experimentation and observation in
different types of organisations. However, since management
deals with human beings and human behaviour, the outcomes
of these experiments are not capable of being accurately
predicted or replicated. Therefore, management can be called
an inexact science. Despite these limitations, management
scholars have been able to identify general principles of
management. For example, scientific management principles
by F.W. Taylor and Functional Management principles by Henri
Fayol which you will study in the next chapter.
(iii) Since the principles of management are not as exact as the
principles of science, their application and use is not universal.
They have to be modified according to a given situation.
However, they provide managers with certain standardised
techniques that can be used in different situations. These
principles are also used for training and development of
managers. You must have understood from the foregoing
discussion that management has features of both art and
science. The practice of management is an art. However,
managers can work better if their practice is based on the
principles of management. These principles constitute the
science of management. Management as an art and a science
are therefore not mutually exclusive, but complement each
Some philosophers believe that management is neither science
nor art but it is combination of both - Science as well as an Art.
Management is both an art and a science. The above
mentioned points clearly reveal that management combines
features of both science as well as art. It is considered as a
science because it has an organized body of knowledge which
contains certain universal truth. It is called an art because
managing requires certain skills which are personal
possessions of managers. Science provides the knowledge &
art deals with the application of knowledge and skills.
To be successful manger, a person requires the knowledge of
management principles and also skills how the knowledge can
be utilized. Absence of either will result in inefficiency. So
management use both scientific knowledge and art in
managing the organization. According to Dr. Terry “if sciences
teaches one to know, art teaches one to do.” A manager to be
successful in his profession must acquire the knowledge of
science & the art of applying it. Therefore management is a
well-judged combination of science as well as an art because it
proves the principles and the way these principles are applied
is a matter of art. Science teaches to ’know’ and art teaches to
’do’. E.g. a person cannot become a good singer unless he has
knowledge about various ragas & he also applies his personal
skill in the art of singing. Same way it is not sufficient for
manager to first know the principles but he must also apply
them in solving various managerial problems that is why,
science and art are not mutually exclusive but they are
complementary to each other (like tea and biscuit, bread and
butter etc.). To conclude, we can say that science is the root
and art is the fruit.
The main levels of management are:1. Top level management
2. Middle level management
3. Supervisory level, operational level or lower level of
Top level management consists of Chairman, Board of
Directors, Managing Director, General Manager, President,
Vice-President, Chief Executive Officer (C.E.O), Chief
Financial Officer (C.F.O) and Chief Operating Officer. It
includes group of crucial persons essential for leading and
directing the efforts of other people. The managers working
at this level have maximum authority.
a. Determining the objectives of the enterprise The top level managers formulate the main objectives of
the organisation. They form long term as well as short
b. Framing of plans and policies–
The top level managers also frame the plans and policies
to achieve the set objectives.
c. Organising activities to be performed by persons working
at middle level -The top level management assigns jobs to
different individuals working at middle level.
d. Assembling all the resources such as finance, fixed assets
etc. –
The top level management arranges all the finance
required to carry on day to day activities. They buy fixed
assets to carry on activities in the organisations.
e. Responsible for welfare and survival of the organisation –
Top level is responsible for survival and growth of the
organisation. They make plan to run the organisation
smoothly and successfully.
f. Liaison with outside world The top level management remains in contact with
government, competitors, suppliers, media etc.
Middle level of management consists of departmental heads
such as purchase department head, sales department head,
finance manager, marketing manager, executive manager,
plant superintendent etc. People of this group are
responsible for executing the plans and policies made by top
level. They act as a linking pin between top and lower level
management. They also exercise the functions of top level
for their department as they make plans and policies for
their department, organize and collect the resources etc.
a. Interpretation of policies framed by top management to
lower level – Middle level management act as a linking
between top level and lower level management. They only
explain the main plans and policies framed by top level
management to lower level.
b. Organising the activities of their department –
Generally middle level managers are the head of some
department. So they organize all the resources and
activities of the department.
c. Recruiting and appointing the required employees –
The middle level management selects and appoints
employees of their department.
d. Motivating the persons to perform to their best
employees –
The middle level managers offer various incentives to
employees so that they get motivated and perform to
their best ability.
e. Controlling and instructing the employees –
The middle level managers keep a watch on the activities
of low level managers. They prepare their performance
appraisal reports.
f. Cooperates with other departments –
The middle level management cooperates with other
departments for smooth functioning.
g. Implementing the plans framed by top level – Middle
level makes sure that the plans formed by the top level are
This level consists of superintendents, supervisors, foreman,
sub-department executives, clerk etc.Managers of this group
actually carry on the work or perform the activities according
to the plans of top and middle level management. Their
authority is limited. The quality and quantity of output
depends upon the efficiency of this level of managers. They
pass on the instruction to workers and report to the middle
level management. They are also responsible for maintaining
discipline among the workers.
a. Representing the problems or grievances of workersThe supervisory level managers are directly linked with
subordinates so they are the right persons to understand
the problems and grievances of subordinates. They pass
these problems to middle level management.
b. Maintain good working conditions and developing
healthy relations between superior and subordinatesThe supervisory managers provide good working
conditions and create supportive work environment which
improve relations between supervisors and subordinates.
c. Looking to safety of workersSupervisory level managers provide safe and secure work
environment for workers.
d. Helping the middle level management in recruiting,
selecting and appointing the workers –
The supervisory level managers guide and help the middle
level managers when they select and appoint employees.
e. Communicating with workers and welcoming their
suggestions –
The supervisory level managers encourage the workers to
take initiative. They welcome their suggestions and reward
them for good suggestions.
f. They try to maintain precise standard of quality and
ensure steady flow of output –
The supervisory level managers make sure that quality
standards are maintained by the workers.
g. They are responsible for boosting the morale of the
workers –
The supervisory level management is responsible for
boosting the morale of the workers and developing the
team spirit in them.
h. Minimising the wastage of materials –
The supervisory or lower level of management is
responsible to minimize the wastage of resources during
day to day activities.
Functions of Management
Regardless of size, nature and type of organization, all the managers have to perform some basic
functions which are:
a) Planning. Planning is always the first function performed by
every manager. Planning refers to “deciding in advance what to
do, how to do, when to do, and who is going to do it. Planning
bridges the gap between where we stand today and where we
want to reach”. Every manager starts with deciding in advance
the objective of an enterprise and how to accomplish these
objectives. Planning is the base of all other functions of
b) Organizing. After setting up of plans next function of every
manager is to organize the activities and establishing an
organization structure to execute the plan. Setting up
organizational structure means deciding the framework of
working how many units and sub-units or departments are
needed, ho w many posts or designations are needed in each
department, how to distribute the authority and responsibility
among different people. Once these decisions are taken an
organizational structure gets set up.
c) Staffing. Staffing is the third step or function of a manager. It
refers to recruiting, selecting, appointing the employees,
assigning them duties, maintaining cordial relations and taking
care of grievances of employees. It also includes training and
developing the employees, deciding their remuneration,
promotion, increments, etc., evaluating the performance,
maintaining personal records of employees.
d) Directing. Once the employees are appointed there is need to
instruct them and get the work done. Directing refers to giving
directions or instructions to employees by motivating them,
supervising the activities of employees, communicating with
them. Managers act as leaders and guide them to right direction,
so directing function includes, supervising, motivating,
communicating and leadership.
e) Controlling. This is the last function of managers. In this
function managers try to match the actual performance with the
planned performance and if there is no match between both
then managers try to find out the reasons of deviation and
suggest corrective measures to come on the path of plan.
Controlling functions refers to all the performance
measurements and follow up actions that keep the actual
performance on the path of plan.