MANAGEMENT FEATURES OF MANAGEMENT 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 accommodated. 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. NATURE OF MANAGEMENT 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. MANAGEMENT AS AN ART 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 recognised. (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 art. (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. MANAGEMENT AS A SCIENCE 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 other. MANAGEMENT AS BOTH – SCIENCE AND ART 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. LEVELS OF MANAGEMENT The main levels of management are:1. Top level management 2. Middle level management 3. Supervisory level, operational level or lower level of management. LEVELS OF MANAGEMENT TOP LEVEL MANAGEMENT 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. FUNCTIONS – 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 objectives. 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 MANAGEMENT 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. FUNCTIONS – 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 implemented. SUPERVISORY LEVEL 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. FUNCTIONS 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. 7. 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 management. 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.