Management Concepts and Practices

Management is the process of designing and maintaining an environment in which individuals working together in groups to efficiently accomplish selected aims.

Management refers to all those persons who has got a team under them or to all those who has to get the things done with the help of others.

According to Stanley Vance: Management is simply the process of decision making & control over the action of Human Beings for the express purpose of attaining predetermined goals.

Henry Fayol Says: To manage is to forecast and plan, to organize, to command, to coordinate and to control.

Peter Drucker Says: Management is an organ and organs can be described and defined only through their function

 Management is a set of activities which includes planning, organizing, decision making, leading & controlling and these activities are directed at an organizations resources (human, financial, physical and information), with the aim of achieving organizational goals in an efficient and effective manner.
Eg. Toyota Motors

EFFICIENTLY
Using resources wisely and in a cost-effective way

EFFECTIVELY
Making the right decisions and successfully implementing them

Characteristics of Management
1. It is a Process: - As a process mgnt. Involves those techniques by which the managers coordinate the activities of the other people. 2. It is a Social Process: - as its functions are basically concerned with relations among the people. 3. Group Efforts: - Mgnt. always refers to a group efforts and does not apply to an individual. 4. Attainment of Predetermined Objectives: - All the efforts are directed towards the achievement of some pre determined objectives. 5. It is a distinct entity: - Mgnt. is a separate entity from the various functional activities. Use of Knowledge, skills and Experience. 6. A System of Authority: - Authority to accomplish work from others. 7. Universality of Management: - The principles & techniques of management are equally applicable in the field of business, education, hospitals etc.

8. It is needed at all levels: - It applies at all levels of an organization. 9. It is a discipline: - Mgnt. Today has its organized body of knowledge, principles & techniques.

10. It is an integrative process: - The essence of Mgnt is to integrate all the resources for effective performance.
11. It is an art and science as well: - It has an element of art and characteristics of science.

12. It is a profession: - It possesses all the attributes of profession.

Levels of Management
Levels of management refer to a line of separation between various managerial positions.

Broadly there are three levels of management, namely:-

1. Top management: -It consists of owner/s, Chairman, Managing

Director, CEO, CFO, COO, BODs.

2. Middle Management: - It consists of Functional head, general

managers, senior managers and other divisional officers of the company.

3. Lower Management or Operating Management: - It consist

of junior executives, first line managers, supervisors etc.

Top Management: They are relatively small group of executives who manages the overall organizations. They officially represent the organization to the external environment. They establish the objectives or goals of the organization.

They exercise effective control on all the operations.

They provide overall leadership to the organization. To assemble the resources like money, men, materials etc.

Middle Management: They are primary responsible for implementing the policies & plans developed by top managers. To assign activities, duties and responsibilities to lower management for timely implementation of the plans. They supervise & coordinate the activities of lower-level management. Middle managers work as a bridge between upper & lower levels of the organizations. To recruit and select suitable operative and supervisory staff.

To make suitable recommendations to the top management for the better execution of plans and policies.

Lower Management: These people are responsible for actual operations. They allot various jobs to the workers, evaluate their performance and report it to middle management. These are in direct touch with workers, & have to get work done through the workers.

They are more concerned with direction of the management.

They interpret and divide the plans of the management into short-range operating plans.

Branches of Management
1. Production Management

2. Materials Management
3. Purchase Management 4. Financial Management

5. Personnel Management
6. Office Management 7. Marketing Management

Management in Profit Seeking Organizations: In Large Businesses. In Small and New Businesses. International Management.

Management in Not-for-Profit Organizations: Government Organizations. Educational Organizations. Healthcare

Functions Of Management
Following are the functions of management: 1. 2. 3. 4. 5. 6. Planning. Organizing. Staffing. Directing. Coordinating Controlling.

Planning: Planning function is the primary activity of management. The first step in planning is the selection of goals for the organization. Planning involves selecting mission and objectives and the action to achieve them. It requires decision making i.e. choosing future courses of action from various objectives. Planning is performed in all kinds of organization by all managers at all hierarchy. As a whole organizations plans are the primary tools for preparing & for dealing with changes in the organizations environment.

Organizing: Once objectives & plans are ready then one has to design & develop an organization in order to achieve objectives. It includes identification of activities required for the achievement of objectives and implementation of plans. It is the process of arranging and allocating work, authority and resources among organizations member so they can achieve the organizations goals. In other words it is the basic process of combining & integrating human, physical and financial resources in productive inter relations for the achievement of enterprise objectives.

Staffing: -

It is a continuous function of management. Once strategies and policies are framed and ground into jobs, the next step is to procure suitable personnel for managing the jobs. As efficiency and effectiveness of any organization depends on the quality of its manpower so this is a distinct function of the management.

Staffing also includes: Induction Placement

Transfer
Promotions Increments Training & Development

Directing: This function leads the employees to perform efficiently and effectively.

It involves communicating, motivating & leading the team of subordinates.

This function also deals in providing proper working conditions to the team. Here jobs assigned to the staff is explained & clarified, proper guidance is also provided. Here managers make sure that their team is fully motivated and contribute their optimum performance with full enthusiasm.

Coordinating: It refers to establishing relations among various parts of organization in order to achieve organizational objectives.
This process is of tying all the organizational activities, operations, decisions for the accomplishment of organizational objectives.

Many management researcher believes that coordinating is the essence of management.

Controlling: This function ensures that the divisional, departmental, sectional or individual performances are consistent with predetermined goals and objectives. This function states that goals and standards of performance exist and are known to employees and their superiors. This function helps managers to keep the organization on track. Without this function other function loose their application. This function helps managers in knowing the deviation & allows them to understand the reason for this deviation.

Types of Management
1. Authoritarian Management 2. Centralized Management

3. Unified Management
4. Decentralized Management 5. Bottom up Management

Principles of Management
1. Authority and responsibility are related Authority flows from responsibility. 2. Unity of command One boss. 3. Unity of direction One head one plan.

4. Scalar chain of command - Gangplank

5. Division of work. 6. Discipline. 7. Subordination of individual interest to general interest Top mgnt. To set an example of honesty, integrity & justice. 8. Remuneration Employees should be paid fairly. 9. Centralization 10. Order Right person on the right job. 11. Equity Subordinates should be treated with justice. 12. Stability of tenure of personnel Sense of Job security. 13. Initiative. To create an environment to encourage subordinates to initiate.

14. Esprit de Corps Cohesiveness & team spirit should be encouraged.

Social Objectives of Management

The social environment is made up of the attitudes, desires, expectations and beliefs and customs of people in a given society. 1. Provision of Employment 2. Productions of goods of proper quality

3. Proper use of Natural Resources.

4. Proper liaison the Government. 5. Welfare of workers. 6. Respect for the individual, regardless of race, caste or religion.

The External Environment: 1. Economic

Capital Labor

Price Levels
Government Tax Policies Customers

2. Technological
Impact of technology Its benefits & problems. Types of technological change.

3. Social
4. Political and Legal

Ethics in Business
Ethically responsible company is one which has developed a culture of caring for people, environment, society. It is a Top-Down approach. i.e. it flows from top management. Globalization has brought about greater involvement with ethical considerations and most importantly achieving competitive advantage through business ethics. In todays scenario It is the necessity of being ethically proactive company rather than being ethically reactive company.

Following are the pre-requisite of Human Guidelines.

Physical Security. Minimal Education. Freedom of speech. Freedom from torture. Nondiscriminatory treatment.