Management

Introduction:
Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way. Management entails the co-ordination of human effort and material resource toward the organization to achieve its objectives. The objective of the any enterprise is accomplished through the use of resources. Management involves an organized effort to achieve the objectives. Management is the brain of the enterprises. Management helps in predicting what is going to happen in future that will influence the working of an enterprise.

Definitions of management:
According to Dalton E. Mc Farland: Management is the fundamental integrating and operating mechanism underlying organized efforts. According to Dr. William R.spriegel, Management is an executive function which is primarily concerned with carrying out the board policies laid down by the administration. It is that function of an enterprise which concerns itself with the direction and control of various activities to attain the business objectives. According To James A.E. Stone, Management is the process of planning, organizing, leading and controlling the efforts of organization members and using all other organizational resources to achieve stated organizational goals.

However, a precise definition of management is not so simple because the term management is used in a variety of ways, being a new discipline; it has drawn concepts and principles from a number of disciplines such as statistics, economics, sociology, anthropology and so on. The result is that each group contribution has treated management differently.

Nature of Management The nature of management has the following features. Universal process: - Management is universal in nature; it is applied in all types of process like commercial, social or political. Management exists everywhere in universe. The basic principles of management can be applied everywhere, whether they are business or non-business organization. Continuous Process: - Management is a never ending process. Management is a continuous process because it always carries the past decisions for the future course of action to achieve organization goals. Multi-disciplinary method: - Management is basically multi-disciplinary; it depends on the proper knowledge and skill of various disciplines such as economics statistics, anthropology, psychology, sociology etc. Group activity: - Management requires the use of groupefforts to achieve their goal. Management is a vital part of group activities. Management unites with their goal what they cannot achieve individually. Intangible force: - Management is intangible. It is an unseen force, but its presents seem in the form of results.

Social Management: - Management is a social process in nature, it essentially involves managing people, it concern to developing, retaining and motivating people at work place and also care of their satisfaction. Coordinating force: - Management cannot do anything by them. They should get their work done by organizations member. In the any organization, management coordinates the efforts of human recourse through orderly. Goal oriented: - Management is a goal oriented in nature. It works only to achieve particular goal which decide by the organization. Relative, not absolute principles: - Management principles are relative not absolute, because they should be applied according to need and condition of the organization. An integrative method: - Management integrated the living and non-living resources to achieve the desired goal.

Importance of Management
According to Trucker, "management is the dynamic life-giving element in every business. Without it the resources of production remain resources and never become production. Management is the catalyst without which no organization can survive and grow. According to Peter Druker, management is the crucial factor in economic and social development.

Thus the importance of management can be summarized as belowFormulate objectives and goals: - Management determines the objectives and main goals for the organization. Innovation: - Management encourages to using new technology and ideas. Innovation makes the organization more efficient. Guidance: - Management provides guidance to the workers to work properly and efficiently. Motivation: - Management motivates the workers to work hard by providing them various incentives. They also solve their personal problems.In this way they can boost the productivity and profitability of the organization. Reducing cost by increasing output: -Management does work through planning, organizing and controlling; thus, it reducing the cost and increasing the output. Optimum utilization of resources: - Management utilizes all the physical and human resourceeffectively; this leads to efficiency in organization. Management provides maximum utilization of scare resources by selecting its best possible alternate. It avoids wastage to utilize proper resources. Selection of well qualified human power: -Management selects well qualified and expert human power for different works. Establishes Equilibrium:- Management helps in serving an organization in its dynamic environment. It enables the organization to survive in changing environment. The environment of organization changes due to external complexities and hence management has to deal with it. To establish sound organizational structure is one of the objectives of management.

Useful for society: - Management provided good standard of living to his workers. And management provides useful and quality products to the consumers.

At the last, in the word of Peter Druker, Management is the dynamic life giving element in every business without it the resources of production remains resources and never become production.

Objectives of management
Managing an organization effectively requires the formulation of clear objectives. The objective is well defined, and the objective points (question) of making necessary efforts to achieve it. Objects and aims direct a man to proceed in a certain way for achieving organizational aims. Objective serves as guidelines or landmarks or road lines for action and efforts to achieve managerial goal. Well defined objective steers an organization to success. According to George R. Terry, "A managerial objective is the goal which prescribes definite scope and suggests the efforts of a manager." In the words of Peter F. Drucker, "Objectives in the key areas are the 'instrument panel' necessary to pilot the business enterprise. Without them the management flies by the 'seat of the pants' without landmarks, without maps and without having flow route before." Objective provides a direction for the organization goal and quality of work to be accomplished within a given period of time.

The main objectives of management: To increasing organizational effectiveness. To achieve optimum utilization of various resources. To have co-ordination between various department in the organization. To have co-ordination between various agencies, and company. To control the material quality. To reduces the execution time for various activities of the organization. To control the quality of workmanship. To manage and control economy execution.

Level of Management
Management has various activities in an organization. These activities are controlled by different people at different level. The term level of management refers to a lines of demarcation between various managerial position is an organization.The levels ofmanagement can be classified in these broad categories.Top level: Top management also called administrative level management. It is a central management. Top management of a company is constituted by its board of directors and the chief executive.

Functions: Top management formulates objectives and establishesgoals and policies of company. It determines the basic pattern of the organization structure. It prepares strategic plans and policies for organization. It prepares overall budgets and programs for short terms and long terms operations. It is responsible for the success or failure of the organization. It is responsible for maintain public relations with the outside world. It provides guidance and direction to all department of organization.

Middle Level:

In large organization is bifurcated into two parts upper middle or intermediate management. Middle management is constituted by branch managers, departmental and sectional managers.

Function: They receive orders from top level management. and develops derivative objectives and policies. They are responsible for co-coordinating the activities within the branch and department. They interpret policies and direction from top level management to lower level. They motivate the day to day function of the management. They affect co-ordination between top management and supervisory management. They linked the top level management to lower level management. They send progress report of their work to top levelmanagement.

Lower level:

Lower level is also known as supervisory or operative level. It is constituted by superintendents, foreman and inspectors.

Function:

They guide and direct the worker for daily activities. They arrange material required by the workers. They are responsible for the performance of workers. They supervise and guide the sub-ordinates. They ensure the quality of work completed in a given time. They are planning and completing day to day work. They direct contact with the workers.

Functions of Managers
Managers just don't go out and haphazardly perform their responsibilities. Good managers discover how to master five basic functions: planning, organizing, staffing, leading, and controlling.

Planning: This step involves mapping out exactly how to achieve a particular goal. Say, for example, that the organization's goal is to improve company sales. The manager first needs to decide which steps are necessary to accomplish that goal. These steps may include increasing advertising, inventory, and sales staff. These necessary steps are developed into a plan. When the plan is in place, the manager can follow it to accomplish the goal of improving company sales.

Organizing: After a plan is in place, a manager needs to organize her team and materials according to her plan. Assigning work and granting authority are two important elements of organizing. Staffing: After a manager discerns his area's needs, he may decide to beef up his staffing by recruiting, selecting, training, and developing employees. A manager in a large organization often works with the company's human resources department to accomplish this goal. Leading: A manager needs to do more than just plan, organize, and staff her team to achieve a goal. She must also lead. Leading involves motivating, communicating, guiding, and encouraging. It requires the manager to coach, assist, and problem solve with employees. Controlling: After the other elements are in place, a manager's job is not finished. He needs to continuously check results against goals and take any corrective actions necessary to make sure that his area's plans remain on track.

All managers at all levels of every organization perform these functions, but the amount of time a manager spends on each one depends on both the level of management and the specific organization. Managerial Roles: A manager wears many hats. Not only is a manager a team leader, but he or she is also a planner, organizer, cheerleader, coach, problem solver, and decision maker all rolled into one. And these are just a few of a manager's roles. In addition, managers' schedules are usually jampacked. Whether they're busy with employee meetings, unexpected problems, or strategy sessions, managers often find little spare time on their calendars. (And that doesn't even include responding to email!) In his classic book, The Nature of Managerial Work, Henry Mintzberg describes a set of ten roles that a manager fills. These roles fall into three categories: Interpersonal: This role involves human interaction. Informational: This role involves the sharing and analyzing of information. Decisional: This role involves decision making.

Table 1 contains a more indepth look at each category of roles that help managers carry out all five functions described in the preceding Functions of Managers section.

Management vs Administration
Management and administration are at times used interchangeably; however, they are two different levels of the organization. The administration is the top level of the organization with the decisive functions. They are responsible for determining the policies and objectives of the organization or the firm. Management, on the other hand is the middle level executive function. They implement the policies and objectives as decided by the administration. The administration includes the people who are either owners or partners of the firm. They usually contribute to the firms capital and earn profits or returns on their investment. The main administrative function is handling the business aspects of the firm, such as finance. Other administrative functions usually include planning, organizing, staffing, directing, controlling and budgeting. Administration must integrate leadership and vision, to organize the people and resources, in order to achieve common goals and objectives for the organization. Management usually incorporates the employees of the firm who use their skills for the firm in return for remuneration. Management is responsible for carrying out the strategies of the administration. Motivation is the key factor of a management. Management must motivate and handle the employees. It can be said that management is directly under the control of administration. Further comparison between management and administration: Management Definition Art of getting things done through others by directing their efforts towards achievement of predetermined goals. Nature executing function, doing function decision-making function, thinking function Scope Decisions within the framework set by the administration. Level of authority Status Middle level activity Group of managerial personnel who use their specialized knowledge to fulfill the objectives of an enterprise. Usage Used in business enterprises. Popular with government, military, educational, and religious organizations. Major decisions of an enterprise as a whole. Top level activity Consists of owners who invest capital in and receive profits from an enterprise. Administration Formulation of broad objectives, plans & policies.

Influence

Decisions are influenced by the values, opinions, beliefs and decisions of the managers.

Influenced by public opinion, government policies, customs etc.

Main functions Abilities

Motivating and controlling Handles the employees.

Planning and organizing Handles the business aspects such as finance.

Early Management Thoughts Scientific Management

Frederick Winslow Taylor was first person who gave Scientific Management in 1911. He also called the father of scientific management. Scientific Management was concerned to improving the operational efficiency at the shop-floor level. According to Taylor, scientific management means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way. Scientific management is based on the analysis, planning and control functions. And job accomplished by analyzing, and works can selected and trained scientifically. In this, management role is to determine the kind of work for which an employee suited and hire and assign workers accordingly. Management is not responsible for execution of work but they are responsible for how the work is done. Co-operation between management and workers can enhance the work and achieve the maximum output.

Taylor called it as Mental Revolution, because it creates the mutual understanding, trust and confidence between the management and workers for achieving goal (higher production).

Principles of scientific Management

Under scientific management, Taylor developed the following parameters for organization.

Scientific work study Task planning Tools and materials Selection and Training Standardization Worker management interrelationships Differential piece wage system

Objective of Scientific Management

Scientific utilization of various resources like human power, material etc.

 To provide trained and efficient work force. To provide standardize methods of work. To provide a scientific base for selecting material, and equipment. To provide extra wages to the worker for higher production. Replace old rule of thumbs to new scientific methods. To develop a good rapport between management and workers. To achieve higher production, with reduce costs and maximum efficiency. Less wastage.
Administrative Management Henri Fayol was real father of modern Management. Henri Fayol is the French industrialist in 1841-1925. He was a mining engineer in. Henri Fayol spent his entire working career in French industry; French cool and iron combine of commentary fourchambault. Henri Fayol developed a general theory of Business Administration. Henri Fayol was concerned the principles of organization and the function of management. Fayol laid the foundation of management as a separate body of knowledge. He always insisted that if scientific forecasting and proper methods are used in management than company can get satisfactory results. According to Fayol, management was not personal talent; it is a knowledge base skill.

Fayols fourteen Principles of management

Fayol derived the following fourteen principles.-

Division of work: Division of work means specialization. Each job and work should be divided into small task and should be assigned to specialist of it. Authority and responsibility: Authority means right to give order and command while responsibility means to accomplish objective. Discipline: Discipline is required at every level in every organization. Fayol stated discipline in terms of obedience, application, and respect to superiors. Unity of command: A subordinate should receive order from only one boss. Unity of direction: It means that all the works of an organization must work together to accomplish a common objective in under one plan and head. Subordination of individual interest to common interest: Worker follows the common interest of organization rather than individual. Remuneration: Remuneration should be fair and adequate. It includes both types of incentives financial as well as non financial. Centralization: There should be one central point in organization which exercises overall direction and control of all the parts. Scalar Chain: Scalar chain is the chain or line of command from superior to subordinates. Order: Only proper order can give an efficient management. Equity: Equity creates loyalty and devotion among the employees. Stability of tenure personnel: Security of job for an employee in an organization is very important and pre-requisite condition. Retaining productive employee should always a higher priority of management. Esprit de corps: Management should encourage harmony and proper understandings between workers. Fayol said that in union there is strength. Whole organization should work as a team. Initiative: Manager should be encouraged the employees Initiative for creative working.

Modern organizations theory

system theory contingency theory The system theory- concerned with total picture of interdependence and environmental influences. contingency theory concerned with inquires of each situation for managerial practice

The modern organizational theory is regarded as recent development in management theory. They represent integrative approach to management. There is no one best way of doing things under all conditions. Methods and techniques which are highly effective in one situation may not work in other situations. Situation plays an important role in application of management function. Functions are universal but their application is situational. Management takes a situational approach.

System approach:
System approach was developed inlate1960s. Herbert A. Simon is the father of system theory. A System is defined as a set of regularly interacting or inter dependent components that create as a whole unit. The system concept enables us to see the critical variables and constraints and their interactions with one another. According to Cleland and King; A system is composed of related and dependent elements which when in interaction from a unity whole.

Characteristics of system approach:

A system must have some specific components, units or sub units. A Change in one system affects the other subsystems. Every system is influenced by super system. All systems along their subsystem must have some common objectives. A system is a goal-oriented. A system cannot survive in isolation.

What is System approach theory of Management?

A system is a set of inter-connected and inter-related elements directed to achieve certain goals. This theory views organisation as an organic and open system composed of many subsystems. As a system organisation is composed of a number of sub-systems viz. production, supportive, maintenance, adaptive managerial, individuals and informal groups. All these sub-systems operate in an interdependent and interactional relationship. The various subsystems or parts of an organisation are linked with each other through communication, decisions,

authority responsibility relationships, objectives, policies, procedures and other aspects of coordinating mechanism. Organisations as systems have a variety of goals. The important among them are survival, integration and adaptation with environment and growth. The major features of the approach to the study of management may be summed up as under: 1. A system consists of inter-related and interdependent parts. (2) The approach emphasises the study of the various parts in their inter-relationships rather than in isolation from each other. (3) The approach brings out the complexity of a real life management problem much more sharply than any of other approaches. (4) The approach may be utilised by any of the other approaches. (5) The approach has been utilised in studying the function of complex organisations and has been utilised as the base for new kinds of organisation. The Systems Approach has an edge over the other approaches insofar as its closeness to reality is concerned. However the problem with the approach is its utter complexity particularly when it comes to a study of large and complex organisations. The conceptual framework of management provided by this approach is too abstract to be useful to practising managers. The approach recognises the input of environment but does not functionally relate it to management concepts and techniques.

Contingency approach
An assumption that no one theory or method for business management can apply to all businesses or to all circumstances. From a business perspective, using a contingency approach to problem solving would indicate that issues need to be understood and then addressed in ways that depend on the environment and context in which they occur.

In business management, the contingency approach believes that there's no single system that can apply to all workplace challenges. Managerial personnel work to determine specific solutions to handle workplace issues and satisfy client needs. This means assigning employees to a task based on relevant skills, developing situational strategies to meet deadlines, and integrating these efforts to provide a fully realized plan of action. Managers using the contingency approach only deals with challenges and risks as these situations occur for the business.

Contingency Approach:

Contingency Approach also knows as situational approach. In 1980s, it is recognized as a key to effective management. This approach accepts the dynamics and complexities of the organization structure. An organization is affected by its environment and environment is composed by physical resources, climate, persons, culture, economic and market conditions and their laws. This approach argues that there is no one universally applicable set of rules by which to manage organization.

Conclusion Modern management theory depends upon System approach and Contingency approach. Management is influenced by Internal and external environment. Appropriate techniques are determined by situation and Environmental factors of an organization. Thus the conclusion is that there cannot be any fixed universal principles of management and organizations.

Recent Developments:

Integrated Management System

An integrated management system is a management system that integrates all of an organization's systems and processes in to one complete framework, enabling an organization to work as a single unit with unified objectives. With an integrated system, your organization becomes a unified whole, with each function aligned behind a single goal: improving the performance of the entire organization. Instead of "silos", you have a genuinely co-ordinated system: one that's greater than the sum of its parts, and can achieve more than ever before. An integrated system provides a clear, holistic picture of all aspects of your organization, how they affect each other, and their associated risks. There is less duplication, and it becomes easier to adopt new systems in future. An integrated management system allows a management team to create one structure that can help to effectively and efficiently deliver an organization's objectives. From managing employees' needs, to monitoring competitors' activities, from encouraging best practice to minimizing risks and maximizing resources, an integrated approach can help an organization achieve their objectives. Who is it for? Integrated Management is relevant to any organization, regardless of size or sector, looking to integrate two or more of their management systems into one cohesive system with a holistic set of documentation, policies, procedures and processes.

Typically, organizations most receptive to this product will be those who have maturing management systems and who wish to introduce other management systems to their organization with the benefits that those bring.

Managing people and organizations in the context of new Era:

Effective Leadership Principles for Managing People

1. Set goals collaboratively with your employees. Youre more likely to get buy in from them because they were involved. 2. Follow through. Always do what you say youre going to do. Otherwise, your credibility is destroyed. As the saying goes, they remember your last act. 3. In managing people, be empathetic and compassionate when the situation calls for it. For example, when a good employee is experiencing personal problems. Remember, your employees are your most important asset. And, you are managing people. 4. Be honest, trustworthy, fair and respectful. In managing people, if your employees dont trust you, dont perceive you to have integrity, theyre less likely to want to follow you. 5. Lead by example. Be a good role model. If you are honest, trustworthy, respectful, and hardworking, youre training them to be the same.

Effective leadership in managing people = getting along with others.

1. Communicate clearly with your staff on a regular basis. This sounds like such common-sense, it shouldnt need to be mentioned! But over and over, I hear about managers who dont communicate effectively. 2. Take care of important issues. Dont procrastinate working on projects you dont want to do. And promptly address performance issues with a difficult employee. Otherwise, these problems only get worse. 3. Have goals and objectives clearly defined in writing for accountability. Include dates, deadlines, and numbers so its very clear whats expected. For example, if someone is in customer service they are to, Respond to all customer inquiries and complaints within 12 hours of receiving them. This way its also less likely the employee can say to you, Well, thats just your perception. Youre just picking on me. 4. In managing people, be available. Be approachable. 5. Empower and motivate the team not just in terms of completing tasks, but also in terms of good communication and managing conflict.

Effective leadership and managing people is all about communication and being able to successfully manage conflict. Learn to get along with others. Its not just what you know, or who you know, but how well you get along with others.

Managing a competitive Advantage:

Four Methods of Competitive Advantages

Businesses are constantly seeking competitive advantages in the marketplace. There are many different ways in which this can be done, but many will focus on a few tried and true methods of gaining a leg up on the competition. These methods can generally be classified into about four different primary categories. Both Stanford University and the University of Cambridge cite Michael Porter's broad and narrow categories of competitive strategies as the basis for understanding how businesses try to compete.

Cost Leadership
Cost leadership is the first competitive advantage businesses often attempt to gain. Cost leadership as an advantage occurs when a business is able to offer the same quality product as its competitors, but at a lower price. Cost leadership can occur when a company finds ways to produce goods at a lower cost through the perfection of production methods or by the utilization of resources in a more efficient manner than competitors. Other factors, such as proprietary technology, can also factor into this type of advantage. Cost leadership may be classified as an offensive strategy, whereby businesses attempt to drive competitors out of the market by consistently using price strategies designed to win over consumers.

Differentiation
Differentiation is a second strategy that businesses often use to set themselves apart from competitors. In a differentiation strategy, low cost is only one of many possible factors that may set aside a business from others. Business that differentiate themselves typically look for one or more marketable attributes that they have that can set them apart from their competitors. They then find the segment of the market that finds those attributes important and market to them. The process can also work in the other direction with businesses conducting research to determine which things consumers find most important and then developing a niche market for those products or characteristics.

Defensive Strategies
Another way for a business to gain a competitive advantage is to utilize a defensive strategy. The advantage gained by this type of strategy is that it allows the business to further distance itself from its competition by, in some sense, maintaining a competitive advantage it has gained. Therefore, this strategy is closely related to differentiation and cost leadership because it is a method used by businesses to keep those advantages in place once they have been attained. Whereas the other two strategies are more offensive in nature, this strategy becomes an actual advantage as it becomes increasingly difficult for so-called competitors to offer any real opposition to the business.

Alliances
Competitive advantages can also be gained by businesses that seek strategic alliances with other businesses in related industries or within the same industry. Businesses have to be careful not to cross the line between alliances and collusion, though. Collusion occurs when businesses within the same industry work together to artificially control prices. Strategic alliances, on the other hand, are more along the lines of joint ventures that businesses use to pool resources and gain themselves exposure at the expense of other competitors not in the alliance.

EMERGING CHALLENGES FOR MANAGEMENT

1. Globalilization: Managers need to think globally and act locally. 2. Technology: The new economy will base on digital revolution. The development in information technology will provide greater access to management. Management will need to manage changing technology effectively. 3. Quality: Quality assurance is getting important. 4. Social responsibility: Management will pursue long term goals that are good for society. 5. Empowerment: To empower worker is a challenge to management. 6. Human resource management: Management needs to deal with diversified work force, requires visionary leadership on the part of management. 7. Organization design: Organization will be lean flat and less hierarchical 8. Cultural sensitivity: Cultural value will change cross cultural influences. Organizations are emerging as cultural systems. 9. Change management: 10. Manager will face the challenge of managing change. They will need to aware specific changes and their likely impact on the practice of management. 11. Learning organization: Management needs to create learning environment. Organization of future will be predominantly knowledge based.