Over view of management

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 Definitions of Management

There is no single, comprehensive and universally

accepted definition of management. This holds
true due to the following major reasons among
others:
Different scholars view management from
different perspectives
It has many areas of applications. It is applied in
profit, not for profit, private, government, social
and business organizations.
Management as a discipline is recent in origin and
hence there are a number of theories being added
to the field.
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 It is so broad that is difficult to encompass all its aspects
in a single definition.
It has undergone changes because of the developments in
behavioral science and quantitative techniques.
There are different approaches to management, definitions
change as the environment changes. The environment of
an organization changes due to changes in the political,
social, economic, ethical and others factors.

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 Management is the organ of society speciacally charged with
making resources productive - Peter Drucker
Management is the process of designing and maintaining an
environment in which individuals, working together in groups,
efficiently accomplish selected aims - Koontz and Weihrich.
Management is a distinct process of planning, organizing,
actuating and controlling, performed to determine and accomplish
stated objectives with the use of human beings and other resources
- Terry and Franklin.
Management is the art of getting things done through people
effectively and efficiently - Mary Parker Follett.
Effectiveness: is a way that produces a desired result.
Efficiency: is being capable of achieving the desired result with
the minimum use of resources like time, effort and so on
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 Significance of Management

Encourages Initiative: do the right thing at the right

time without being told or influenced by the superior.
The employees should be encouraged to make their
own plans and also to implement these plans.
Encourages Innovation: Innovation brings new
ideas, new technology, new methods, new products,
new services, etc. This makes the organization more
competitive and efficient.
Facilitates Growth And Expansion: Management
makes optimum utilization of available resources.
This results in growth, expansion and diversification
of the organization.
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 Improves Life Of Workers: Management shares some of its
profits with the workers. It provides the workers with good
working environment and conditions. It also gives the workers
many financial and non-financial incentives.
Improves Corporate Image: If the management is good, then
the organization will produce good quality goods and services.
This will improve the goodwill and corporate image of the
organization.
Motivates Employees: Management motivates employees by
providing financial and non-financial incentives. These
incentives increase the willingness and efficiency of the
employees. This results in boosting productivity and
profitability of the organization.
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 Optimum Use of Resources: It makes optimum (best) use of
these resources. This brings best results to the organization.
Reduces Wastage: Management reduces the wastage of
human, material and financial resources. Wastage is reduced by
proper production planning and control. If wastage is reduced
then productivity will increase.
Increases Efficiency: Efficiency is the relationship between
returns and cost. Management uses many techniques to
increase returns and to reduce costs. Higher efficiency brings
many benefits to the organization.
Improves Relations: Management improves relations between
individuals, groups, departments and between levels of
management. Better relations lead to better team work. Better
team work brings success to the organization.

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 Reduces Absenteeism and Labor Turnover:
Absenteeism means the employee is absent without
permission. Labor turnover means the employee leaves the
organization. Labor absenteeism and turnover increases
the cost and causes many problems in the smooth
functioning of the organization.
Encourages Team Work: Management encourages
employees to work as a team. It develops a team spirit in
the organization. This unity brings success to the
organization.

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 Management functions are the activities that managers are
supposed to perform as result of the position held in the
organization.
Regardless of the type and size of firms, all managers
have certain basic functions-planning, organizing,
staffing, leading and controlling.
The scope and nature of these functions vary from one
management level to another and from firm to firm.
these functions are briefly described below.

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 Is Management Science, Art or Profession

The question whether management is a science, art or

profession is put to debate quite frequently. There are
arguments on both sides.

Ismanagement is science?
Properties of Science: Science is a systematized
body of knowledge based on certain principles,
capable of general application.
This knowledge is obtained through the process
of observation, experimentation and testing.
Science thus has four elements:

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A. Systematic body of knowledge: it is
systematized in the sense that it is based on the
cause and effect relationship between different
variables.
B. Scientific Inquiry: Scientific inquiry is unaffected
by the personal likes and dislikes of a scientist.
C. Experimentation: The principles of science are
derived after repeated observations and
experiments.
D. Universal truths: Scientific principles represent
basic truths; they are developed after a series of
experiments. They can be applied in all situations
and at all times.

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 Therefore management is science because it has
the characteristics of science namely:
a) Systematic body of knowledge: Management is
distinct discipline. It has a number of
principles which can be studied and put to
application.
b) Management is a social science: Management is a
social science, as it deals with human behavior
about which little is known at present. As we all
know, it is not possible to study human behavior
under controlled laboratory conditions.
c) Management is an inexact science: Management is
not an exact science like physics, chemistry or
biology. It can offer only flexible guidelines that
would be of use in solving problems.

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 Is Management Art?
Art is the use of know-how and skills like any other art such
as music, painting, sculpture, etc.
Art is the application of science in practice
Management is an art because of the following reason
Use of knowledge: Just as doctor uses the science of
medicine while diagnosing and treating the patients, a
manager uses the knowledge of management theory while
performing the managerial function.
Creative art: Management is creative like any other art. It
combines human and non -human resources in a useful way so
as to achieve results.
Personalized: Like any other art, management is
personalized activity. Every manager has his own way of
managing things and people, based on his knowledge and
experience.
Constant practice: Managers learn from mistakes. The
application of managerial principles over a period of time
enables them to tackle difficult problems with confidence.

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 Management is thus, an art as well as a science.
The art of management is as old as civilization but
the science of management is young and
developing.
Both are complementary and mutually supportive.
Managers need to acquire the knowledge of
management principles and practice in order to be
successful.

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 Over the last few decades, factors such as growing
size of business units, competition, and separation
of ownership from management have led to an
increased demand for professionally qualified
managers.
The tasks of management have become quite
specialized.

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 Management Levels and Types of Managers

Although all managers may perform the same basic duties

and play similar roles, the nature and scope of their
activities differ from level to level.
Here level refers to hierarchical arrangements of
managerial positions in an organization.
The number of managerial levels in an organization
depends on the size of the organization. The larger the
size, the more will be the number of levels and the smaller
the organization in size, the fewer will be its levels.
In most organizations, however, there are three distinct
levels as depicted in the figure below.

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 Top level

Middle level

First line/Lower level

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 FirstLine/ Lower Level Managers are managers who
are responsible for the work of operating
employees only and do not supervise other
managers.
They are the lowest level of management in the
organizational structure.
Typical titles in this level include office managers,
section chief, superintendents, foremen, chief
clerks, supervisors and the like.

First line managers often called supervisors.

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Duties and responsibilities of first line managers

Planning of day to day activities

Assigning operating employees to specific tasks
Keeping a watch on workers performance
Sending reports and statements to superiors
Maintaining close and personal contact with workers
Issuing instructions at the work place, following up,
motivating and evaluating workers.

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 Middle Level managers are managers who direct the activities
of lower level managers and sometimes extend to supervision
of operating employees.
The middle managers are known in many organizations as the
department managers, plant managers, or directors of
operations.
Duties and Responsibilities of Middle Level managers
Acting as intermediary between top and first line managers
Translating long term plans into medium term plans
Developing specific targets in their areas of responsibility
Coordinating inputs, outputs and productivity of operating
level managers
Developing specific schedules to guide action and facilitate
control
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 Top Level Managers are responsible to the overall management of the
organization.
They establish operating policies and guide the organizations interactions
with its environment. Typical titles include chief executive officers (CEOs),
president, senior vice president, general manager and the like.
Duties and Responsibilities of Top Level managers
Establishing broad objectives and designing major strategies and polices for
the achievement of long term objectives
Providing effective organizational structure that ensures integration

Providing overall leadership, direction and making overall control of the

organization
Dealing with external parties such as the government, community,
businesses by representing the organization
Analyzing the changes in the external environment and responding to them.

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 Planning is the first and foremost function in
management. Also it is one of the fundamental and
pervasive of all functions.
Planning is a process of establishing goals and a
suitable course of action for achieving these goals.
It is a decision making process that determines
what to do, how to do it, why it is done, when it is
to be done, by whom it is to be done and with what
resources.

It serves as a bridge that connects the present with

the future as; in planning what should be done in
the future is determined today.
It is a conscious determination of future actions.

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 Organizing is the process of distributing the work
among the group members and establishing the
relationships b/n them.
It involves identification of activities to be carried
out, grouping these activities into working units,
assignment of responsibilities to each unit with
corresponding authority.
It is also the process of combining and integrating
resources for achieving the objectives.

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 Staffing is the process of ensuring that employees are
recruited, selected, trained, and developed, and rewarded
for successful accomplishment of goals.
It is a continuous and vital function of management which
involves filling and keeping filled positions in a given
organizational structure.
It is placing right person for right position.
D. Leading/Directing
Leading involves directing, influencing and motivating
employees to perform essential tasks.
Leading is the action or implementation phase which
emanates from the planning and organizing steps.
Leading encompasses three essential elements: motivation,
leadership and communication and main function of leading
is producing other leaders by being role model.

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Controlling is the measuring and correcting of activities of
subordinates to ensure that events conform to plans or set
standards. It measures performance against goals and
plans. Controlling function involves the following
elements;
Establishing standards of performance
Measuring current performance
Comparing performance to the established standards
Taking corrective actions, if deviations are detected.

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A. Managerial Skills
Regardless of the level of management, managers
ought to possess and seek to further develop many
critical skills.
Skill is an ability or proficiency in performing
particular task.
Management skills are learned and developed.

There are three managerial skills, such as:

1. Technical skills
2. Human skills
3. Conceptual skills

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 1. Technical skills

Technical Skill is the ability to use specific

knowledge, techniques, and resources in performing
works.
It is knowledge and proficiency design & use
methods, processes, and procedures.
it involves working with tools and specific machines.
Normally technical skills are more important at lower
level of management and its importance decreases as
we go up the ladder.

This usually includes specialized knowledge and the

ability to perform with that specialty

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 Human skill is the ability to work with people.
It is cooperative effort, team work and creation of an
environment in which people feel secured and free to express
their opinions.
It is also the ability to resolve conflict.
Generally, human skill is the skill to motivate and create
enthusiasm/eagerness in the minds of followers. Because
managers must accomplish much of their work through the
efforts of other people, their ability to work with, motivate,
counsel and understand others is most important.
Therefore, this skill is equally essential at all levels of
management.
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 Conceptual skill is the ability to see the big picture, to
recognize significant element in a situation and to
understand the relationship among elements.
These skills are the abilities needed to view the
organization from a broad perspective and to see the
interrelationships among its components.

Therefore, they are more important to top level executives

than to middle managers and supervisors.
To conceptualize requires imagination, broad knowledge,
and the mental capacity to conceive abstract ideas.
Conceptual skills are important in strategic planning.

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 Conceptual skills
Top

middle
Human skills

Technical skills
Lower

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 One of the most frequently cited studies of
managerial roles was conducted by Henry
Mintzberg.
He stated that managers perform ten different but
closely related roles and he categorized them into
three broad groups.
1. Interpersonal role
2. Informational role
3. Decisional role

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 There are three interpersonal roles such as
figurehead, leader and liaison roles.
These roles grow from the managers formal
authority and focus on interpersonal relationships.
These roles require interaction with others in
regular basis.

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A. Figurehead role

This role is played by managers who are required to perform

duties of ceremonial and symbolic in nature.

It is the most basic and the simplest of all managerial roles. A

president who greets a touring dignitary/notable, a mayor who
presents a key of the city to a local hero, the supervisor who
attends the wedding of a machine operator, a sales manager
who takes an important customer to lunch, and a manager who
presents certificates to outperforming employees all are
performing ceremonial duties important to the organizations
image and success.

While these duties may not seem important, they are expected
of managers as they signify managements concern for
employees, customers and to the society at large.
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B. Leadership Role
the leadership role involves responsibility for directing and
coordinating the activities of subordinates in order to
accomplish organizational objectives.
Some aspects involve motivating subordinate to meet the
organizations goals and relate to creating a vision that a
companys employees identify with.

C. Liaison Role
There internal and external liaison role
this role refers to dealing with people outside the organization
such as clients, government officials, customers and suppliers;
it is called external liaison role
It also refers to dealing with managers in other departments,
staff specialists, and other departments employees; it is called
internal liaison role
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 Effective managers build networks of contacts for sharing
information. Because of these contacts, managers emerge
as the nerve center system of their organization.
The following three roles describe the informational
aspects of managerial work:
I. Monitor role
This role involves seeking out, receiving and screening
information. Just as a radar unit scans the environment,
managers scan their environment for information that
may affect their organization.
The information received is oral-gossip or hearsay,
formal meetings.
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II. Disseminator role
Here the manager shares information with
subordinates and other pertinent members.

Sometimes the manager may pass along special

or privileged information to certain
subordinates who would not originally have
access to it

In
practice, passing information along
subordinates is often difficult and time
consuming. Therefore, a manager must decide
which and how much information will be useful.

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III. Spokesperson Role
In the spokesperson role managers transmit information
to others, especially those outside the organization.
The manager is a person who speaks for his or her work
unit/organization or to people outside the work unit.
Here the manager represents the unit to other people.

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 Decisional roles are managers use information to
make decisions about when and how to commit
their organization to new objectives and actions.
Decisional roles are perhaps the most important of
the three categories of roles.
Managers are the core of the organizations decision
making system as they play the following four
decisional roles:

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 Entrepreneurial Role - this role involves designing
and initiating planned changes in order to improve
the organizations position. Managers play this role
when they initiate new projects, launch a survey,
test a new market, or enter into new business.
Disturbance Handler Role: this role is played by
managers when they deal with problems and
changes beyond their immediate control. Typical
problems include labor strikes, bankruptcy of major
suppliers, or breaking of contracts by customers.
Sometimes disturbances may arise because a poor
manager ignores the situation until it becomes a
crisis. However, even good managers cannot
possibly anticipate all the consequences of their
decisions or control the actions of others.

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 Resource Allocator Role: this role is about choosing
among competing demands for money, equipment,
personnel, and others demand on managers time. What
portion of the budget should be earmarked for advertising
and what portion for improving an existing product line?
Should the firm add a second shift or pay overtime to
handle new orders? Whether to automate certain plants or
close others requires performing such a role.

Negotiator Role: closely linked to the resource allocator

role is the negotiator role. In this role managers meet and
discuss their differences with individuals or groups for the
purpose of reaching an agreement. Negotiations are an
integral part of a managers job. They are especially tough
when a manager must deal with others like unions and
political action groups who do not share the managers
objectives.

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 Universality of Management

Universality of management refers to the transferability of

its principles, techniques, functions and skills from one
time, place or job to the other.
All these management practices are equally practicable
and applicable everywhere in the world irrespective of the
nature of the job, differences in customs, habits and
social laws.
Managerial functions and techniques can be practiced in
every organized effort. Whether it is a business, shop,
industry, government office, education institutions, social,
profit making and non-profit making organizations,
management principles, functions and techniques are
profitability and productively applied.
A successful manager of a company or a field can be
equally successful in the other. That is why a manager of
a company can be safely transferred from one
department, company or are to another.

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 Well-defined body of knowledge: A profession must have a
systematic body of principles, techniques and skills.
Formal education and training: Everybody cannot enter a
profession. An individual can enter a profession only after
acquiring knowledge and skills through formal education and
training.
Minimum Qualification: An individual can enter a profession
after obtaining a degree or diploma from recognized colleges,
universities or institutes.
Representative body: A representative body of professionals exists
to regulate and develop the professional activities.
Service above self: a profession must be committed to service.
Ethical code of conduct: Members of a profession are expected to
follow the code sincerely and honestly.
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Management is purposeful
Management makes things happen
Management is an activity
Management is accomplished by, with and through the
efforts of others
Management is associated with the efforts of a group
Management is aided by the computer
Management applies to any kind of organization

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