Management
Management in all business and organizational activities is
the act of getting people together to accomplish desired goals and objectives
using available resources efficiently and effectively. Management comprises
planning, organizing, staffing, leading or directing, and controlling an
organization (a group of one or more people or entities) or effort for the
purpose of accomplishing a goal. Resourcing encompasses the deployment and
manipulation of human resources, financial resources, technological resources,
and natural resources.
Since organizations can be viewed as systems, management can
also be defined as human action, including design, to facilitate the production
of useful outcomes from a system. This view opens the opportunity to 'manage'
oneself, a prerequisite to attempting to manage others.
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History
The verb manage comes from the Italian maneggiare (to
handle, especially tools), which derives from the Latin word manus (hand). The
French word mesnagement (later ménagement) influenced the development in
meaning of the English word management in the 17th and 18th centuries.[1]
Some definitions of management are:
Organization and coordination of the activities of an
enterprise in accordance with certain policies and in achievement of clearly
defined objectives. Management is often included as a factor of production
along with machines, materials and money. According to Peter Drucker
(1909–2005), the basic task of a management is twofold: marketing and
innovation. Nevertheless, innovation is also linked to marketing (product
innovation is a central strategic marketing issue). Peter Drucker identifies
Marketing as a key essence for business success, but management and marketing
are generally understood as two different branches of business administration
knowledge.
Directors and managers have the power and responsibility to
make decisions to manage an enterprise when given the authority by the
shareholders. As a discipline, management comprises the interlocking functions
of formulating corporate policy and organizing, planning, controlling, and
directing the firm's resources to achieve the policy's objectives. The size of
management can range from one person in a small firm to hundreds or thousands
of managers in multinational companies. In large firms, the board of directors
formulates the policy that the chief executive officer implements.[2]
Theoretical scope
At first, one views management functionally, such as
measuring quantity, adjusting plans, meeting goals. This applies even in
situations where planning does not take place. From this perspective, Henri
Fayol (1841–1925)[3] considers management to consist of six functions:
forecasting, planning, organizing, commanding, coordinating and controlling. He
was one of the most influential contributors to modern concepts of management.
Another way of thinking, Mary Parker Follett (1868–1933),
defined management as "the art of getting things done through
people". She described management as philosophy.[4]
Some people, however, find this definition useful but far
too narrow. The phrase "management is what managers do" occurs
widely, suggesting the difficulty of defining management, the shifting nature
of definitions and the connection of managerial practices with the existence of
a managerial cadre or class.
One habit of thought regards management as equivalent to
"business administration" and thus excludes management in places
outside commerce, as for example in charities and in the public sector. More
realistically, however, every organization must manage its work, people,
processes, technology, etc. to maximize effectiveness. Nonetheless, many people
refer to university departments that teach management as "business
schools." Some institutions (such as the Harvard Business School) use that
name while others (such as the Yale School of Management) employ the more
inclusive term "management."
English speakers may also use the term
"management" or "the management" as a collective word
describing the managers of an organization, for example of a corporation.
Historically this use of the term was often contrasted with the term
"Labor" referring to those being managed.
Nature of managerial work
In for-profit work, management has as its primary function
the satisfaction of a range of stakeholders. This typically involves making a
profit (for the shareholders), creating valued products at a reasonable cost
(for customers), and providing rewarding employment opportunities for
employees. In nonprofit management, add the importance of keeping the faith of
donors. In most models of management and governance, shareholders vote for the
board of directors, and the board then hires senior management. Some
organizations have experimented with other methods (such as employee-voting
models) of selecting or reviewing managers, but this is rare.
In the public sector of countries constituted as
representative democracies, voters elect politicians to public office. Such
politicians hire many managers and administrators, and in some countries like
the United States political appointees lose their jobs on the election of a new
president/governor/mayor.
Historical development
Difficulties arise in tracing the history of management.
Some see it (by definition) as a late modern (in the sense of late modernity)
conceptualization. On those terms it cannot have a pre-modern history, only
harbingers (such as stewards). Others, however, detect management-like-thought
back to Sumerian traders and to the builders of the pyramids of ancient Egypt.
Slave-owners through the centuries faced the problems of exploiting/motivating
a dependent but sometimes unenthusiastic or recalcitrant workforce, but many
pre-industrial enterprises, given their small scale, did not feel compelled to
face the issues of management systematically. However, innovations such as the
spread of Arabic numerals (5th to 15th centuries) and the codification of
double-entry book-keeping (1494) provided tools for management assessment,
planning and control.
Given the scale of most commercial operations and the lack
of mechanized record-keeping and recording before the industrial revolution, it
made sense for most owners of enterprises in those times to carry out
management functions by and for themselves. But with growing size and
complexity of organizations, the split between owners (individuals, industrial
dynasties or groups of shareholders) and day-to-day managers (independent
specialists in planning and control) gradually became more common.
Early writing
While management has been present for millennia, several
writers have created a background of works that assisted in modern management
theories.[5]
Some ancient military texts have been cited for lessons that
civilian managers can gather. For example, Chinese general Sun Tzu in the 6th
century BC, The Art of War, recommends being aware of and acting on strengths
and weaknesses of both a manager's organization and a foe's.[5]
Various ancient and medieval civilizations have produced
"mirrors for princes" books, which aim to advise new monarchs on how
to govern. Examples include the Indian Arthashastra by Chanakya (written around
300BC), and The Prince by Italian author Niccolò Machiavelli (c. 1515).[6]
Further information: Mirrors for princes
Basic functions
Management operates through various functions, often
classified as planning, organizing, staffing, leading/directing,
controlling/monitoring and motivation.
Planning: Deciding what needs to happen in the future
(today, next week, next month, next year, over the next five years, etc.) and
generating plans for action.
Organizing: (Implementation)pattern of relationships among
workers, making optimum use of the resources required to enable the successful
carrying out of plans.
Staffing: Job analysis, recruitment and hiring for
appropriate jobs.
Leading/directing: Determining what must be done in a
situation and getting people to do it.
Controlling/monitoring: Checking progress against plans.
Motivation: Motivation is also a kind of basic function of
management, because without motivation, employees cannot work effectively. If
motivation does not take place in an organization, then employees may not
contribute to the other functions (which are usually set by top-level
management).
Management skills
- Political: used to build a power base and establish connections
- Conceptual: used to analyze complex situations.
- Interpersonal: used to communicate, motivate, mentor and delegate
- Diagnostic: ability to visualize most appropriate response
Levels of management
Most organizations have three management levels:
first-level, middle-level, and top-level managers.[citation needed] These
managers are classified in a hierarchy of authority, and perform different
tasks. In many organizations, the number of managers in every level resembles a
pyramid. Each level is explained below in specifications of their different
responsibilities and likely job titles.[11]
Top-level managers
Consists of board of directors, president, vice-president,
CEOs, etc. They are responsible for controlling and overseeing the entire
organization. They develop goals, strategic plans, company policies, and make
decisions on the direction of the business. In addition, top-level managers
play a significant role in the mobilization of outside resources and are
accountable to the shareholders and general public.
According to Lawrence S. Kleiman, the following skills are
needed at the top managerial level. [12]
Broadened understanding of how: competition, world
economies, politics, and social trends effect organizational effectiveness .
Top management's role is:
Lay down the objectives and broad policies of the
enterprise.
Issues necessary instructions for preparation of department
budgets, procedures, schedules, etc.
Prepares strategic plans and policies for the enterprise.
Appoint middle level executives, i.e., departmental
managers.
Controls and coordinate activities of all departments.
Maintain contact with the outside world.
Provides guidance and direction.
Answer to shareholders for the performance of the
enterprise.
Middle-level managers
Consist of general managers, branch managers and department
managers. They are accountable to the top management for their department's
function. They devote more time to organizational and directional functions.
Their roles can be emphasized as executing organizational plans in conformance
with the company's policies and the objectives of the top management, they
define and discuss information and policies from top management to lower
management, and most importantly they inspire and provide guidance to lower
level managers towards better performance. Their functions include:
Design and implement effective group and inter-group work
and information systems.
Define and monitor group-level performance indicators.
Diagnose and resolve problems within and among work groups.
Design and implement reward systems that support cooperative
behavior.
First-level managers
Consist of supervisors, section leads, foremen, etc. They
focus on controlling and directing. They usually have the responsibility of
assigning employees tasks, guiding and supervising employees on day-to-day
activities, ensuring quality and quantity production, making recommendations,
suggestions, and up channeling employee problems, etc. First-level managers are
role models for employees that provide:
Basic supervision
Motivation
Career planning
Performance feedback
Source: wikipedia
