INTRODUCTION TO MANAGEMENT INTRODUCTION TO MANAGEMENT

INTRODUCTION TO MANAGEMENT

MEANING AND CONCEPT OF MANAGEMENT

Human being has several needs but limited resources. To fulfill those unlimited wants through limited resources, management is essential. Some needs can be fulfilled individually whereas some requires group effort. Therefore the task of achieving goal through coordination and controlling the effort resources and activities of people is called management.

In most simple term management may be described as an art of making arrangement of 6 ms i.e. men, material, money, machine, method and market. Similarly the word management can also be expressed as manage + men + t which means managing human tactfully. Since management deals with human being and behavior of human beings is highly unpredictable. So they should be dealt tactfully. Management has been described differently by various management researcher, experts and scholars.

According to Mary Parker Follet, “management is an art of getting things done through others.”

According to George Terry, “management is a distinct process consisting 0f planning, organizing, activating and controlling the performance to determine and accomplish the objective through the use of human and other resources.”

Theo Haimann and Farland has attempted to describe management as a noun, process, and as a discipline

1. Management as a noun: It refers to be a managerial personnel working in the organization who exercises leadership, supervision and controlling for achieving goal. In fact, it is a collective noun comprising of board of director, general manager, departmental heads, supervisors etc.

2. Management as a process: Management when described as a process involves a series of interrelated activities which follows a particular pattern. All the functions of the management are performed systematically i.e. planning, organizing, leading and controlling.

3. Management as discipline: A discipline is a separate body of knowledge and practice. When used as discipline management is a specialized branch of knowledge which involves the study of its principles and practice. It is an organized formal discipline research and taught in different institutions or in worldwide basis as a part of higher studies.

Features of management: 

The following are the features of management:

1. Universal activity: Management is regarded as a universal activity because all its theories and principles are widely applied all over the world as guidelines by management personnel. Similarly all types of organizations no matter big or small, public or private, business or social, requires management to carry out its operation.

2. Management is a distinct process: Management when described as a process involves a series of interrelated activities which follows a particular pattern. All the functions of the management are performed systematically i.e. planning, organizing, leading and controlling.

3. Management is a separate discipline: A discipline is a separate body of knowledge and practice. When used as discipline management is a specialized branch of knowledge which involves the study of its principles and practice. It is an organized formal discipline research and taught in different institutions or in worldwide basis as a part of higher studies.

4. Group activity: Management is regarded as a group activity which cannot be performed in isolation. It requires collection of people so that they can be utilized for performing various functions in order to achieve the goal of the organization.

5. Goal oriented: Every organization is established in order to achieve certain goal. In order to achieve the goal a manager has to perform various activities i.e. the function of management. These functions include the task of planning, organizing, leading and controlling through which the goal of the organization is achieved. Thus, management is always goal oriented.

6. Management is both science and art: Management is a science because all its principles and theories are developed on the basis of continuous research experiments and observations carried out by various management researchers at different point of time. It is due to this reason management has universal application. Similarly it is an art where a manager uses his skills and abilities to make other people work in order to achieve the goal.

7. Management is a profession: Management is a profession because it is a systematic body of knowledge which can be acquired to formal schooling and used as guidelines for management related issues. With the establishment of corporate culture and multinational companies, the work of management has been entrusted into the hands of professional managers.

8. Management is intangible: Management is intangible by its nature which does not have any physical presence. All the activities of management are performed on the basis of certain principles. However the result of management can be failed or realized through the achievement of goal.

9. Dynamic in nature: Organization operates within dynamic environment which itself keeps on changing. In response to the change in the environment, it is essential to adjust with in gain environmental adaption. A manager also needs to change his plans, policies and strategies according to the environment. Thus, management is regarded as dynamic in nature.

10. Social process: Management is a social process which is concerned with dealing with the human being. Similarly social activities and the surrounding affect the operation of management. As a process it is concerned with dealing human being socially to achieve the goal.

Functions or Process of management:

A manager needs to perform various activities in order to achieve the goal of the organization. These activities actually are the various function to be performed through which one can successfully achieve the goal of the organization. Given below is a brief description of the various functions of management.

1. Resource analysis: Resource analysis involves the task of analyzing and evaluating the availability of resources. Under the planner of resources analysis first up all one has to evaluate the required amount of resources, current position of resources and identification of surplus or deficit of resources. If it is found that there is surplus of resources one should identify those areas where it can be utilized and in case of deficit, one must be able to find out the sources from where it can be collected.

2. Planning: After analyzing the resources based on it necessary planning should be done. Planning means thinking before. In other words anticipating the future course of action is called planning. As a function of management, planning involves determining the goal and developing necessary strategies to achieve the goal.

3. Organizing and staffing: The function of organizing is related with making arrangement of resources in order to implement the plan. Similarly, the other dimension of organizing is related with creation of organizational structure. This involves dividing authority and responsibility among people according to their hierarchy.

4. Leadership: A leader is a person who leads a mass group of people. The quality and ability of a leader is to lead, guide and control his work group (employees) is leadership. Leadership function is associated with utilization of available resources under the leadership of a manager according to the plans and policies of the organization. 

Leadership function includes several other functions i.e. 

a.) Communication: Communication refers to the exchange of ideas, emotions, information and messages in between two or more than two parties i.e. sender and receiver.

b.) Motivation: Motivation includes the task of encouraging people to perform work through the application of reward and punishment.

c.) Supervision: It involves monitoring and observing employees while they perform work.

d.) Direction: It involves issuing instructions and making employees perform work with the best of their ability.

e.) Co-ordination: The task of balancing and harmonizing all organizational activities towards achievement of a common goal is Co-ordination. 


5. Controlling: The function of controlling is related with evaluation of performance in order to find out whether work has been performed according to plan or not. As a function it consists of various steps i.e. determining the standard , measurement of performances , comparing performances with standard to find out deviation and taking necessary corrective action (if needed) .


Administration and management

Both the term management and administration is widely used in management literature however there is a lot of confusion and contradiction regarding the use of both these terms. In order to clarify its concept we find the following three approaches which is as follows:-

1. Administration is wider than Management: This concept is widely followed by American Scholars thus it is regarded as the American Concept. Also called as “Policy Approach” , it states that administration is wider than management. Experts like Theo Haimann, Oliver Shelton etc have supported this approach. Under this approach the task of administration is formulation of plans and policies whereas management is concerned with the implementation of plans and policies formed by administration.

2. Management is wider than Administration: This approach is widely followed by British and European writers and is also popularly regarded as “Functional Approach”. Experts like Kimball, Berry Richman and others have come forward etc support this approach. According to them management is a comprehensive which in itself includes administration. Thus, being a superior body management formulates plans and policies whereas administration simply performs work according to the guidelines issued by management.

3. Both Administration and management are same: Also referred as the modern concept and organizational approach, this concept is widely followed by modern scholars. Scholars like George terry, Henry Fayol, Chester Bernard, Louis Allen etc has ruled out any controversy regarding administration and management. They have stated that both of them are same and the difference only lies in the use of terminology. If the organization is government and non- profit making, the term administration is used and the term management is used for profit making private organizations. In order to clarify , they have classified it into two classifications as administrative management and operative management. Administrative management is concerned with policy formulation whereas operative management is just its implementing body.

This concept of administration and management can also be shown through the help of a diagram which looks like the following:
administration and management

Difference between administration and management :

Although the word administration and management sounds to be similar, there is a vast difference between them which can be presented as follows:

Basis of

function

Administration

Management

Nature  of

function

It thinks and makes policies for any

Organizations.

It implements the ideas and policies for development.

Types of

work

The task of administration is formulation of plans and policies.

It is concerned with the implementation of plans and policies formed by organization.

Level of authority

It has the higher level of authority.

It has lower level of authority.

Status

It Consist of board of directors, shareholders, managers…etc thus its status is high for making plans and policies.

It consist of Accountant, supervisor, clerk…etc for implementation of plans that it has low status in comparison to administration.

Skill and ability

The body of administration requires administrative skills and ability.

The body of management requires technical skill and ability.

Use

It is used in non profit making organizations.

It is used in profit making organizations.

Major functions

Policy making and organizing are its major functions.

Leadership and controlling are its major functions.

Influences

It is influenced by external environment.

It is influenced by internal environment.



Management as Science, Art and Profession

1.) Management as a Science: Science is a body of knowledge ascertain by observation and experiment critically tested, systematized and brought under general principal. A surgeon for doctor without having knowledge of medical science is just a quack. Thus, behind all scientific activities there are certain principles which the scientist unfolds and then brings into practice in a systematic way which has universal application. For example: anything which is thrown up is sure to fall down due to the effect of gravitation which can be experimentally prove thus is a science. Science has certain features which are as follows:

a.)Systematized body of knowledge: Science and management both is a systematized body of knowledge. Management is an organized body of knowledge built of by management researcher, scholars and observers over a period of years. It is a body of systematic knowledge accumulated and accepted with reference to the general truth which has universal application.

b.)Continued observation: The various principles of management that has been developed is only basis of continuous research and observation. Based on the observations, one derived certain conclusion and then was developed as a principle. Therefore these principles are critically tested and can be proven experimentally.

c.) Universally applicable:  all the principles of management are universally applicable just like the principles of science. The fundamental principles of management can be applied in all situations and at all times. These principles can be used while performing work in the personal life of a person and even while running an organization.

d.) Cause and effect relationship:
Another feature of science is that it helps to establish the cause and effect relationship. Cause is the reason and the effect is its consequences. For example: poor planning can be taken as the cause and increase in cost and decrease in productivity can be taken as its effect.

e.) Validity and predictability: All the principles of management which were developed long ago are still valid and used even today by professionals managers as guidelines. Similarly, these principles help to predict the future on the basis of certain assumption.

Based on all these analysis we can say by the way of conclusion is that management is a science however it is not an exact science instead it is a social science which deals with human beings and their behavior.

2.) Management as an Art: An art is a practical skills which involves using knowledge into action. Thus, it indicates how an objective can be achieved and know how it is guided by certain principles. Therefore an art is an application of knowledge to produce certain output i.e. goods and services. For example: a carpenter taking a piece of wood involves art. An art also has the following features:

a.) Personal skills and ability: In order to perform certain work one requires certain skills and abilities which is inherent within a person and thus differs from person to person. To perform the work of management, a manager also requires certain managerial skills which he or she uses in order to carry out his respective work. These skills needed to perform the work of management are managerial skills which in itself depend upon the type of work he or she performs.

b.) Practical knowledge: only having knowledge is not sufficient. One should utilize that knowledge in order to carry out his or her work. A person who does not utilize his or her skills can never become a successful manager. Thus the skill should be utilized in a creative way so that the intended result is produced.

c.) Result oriented: A manager utilizes his or her skills in order to achieve the desired goal. However he uses others to perform work in order to produce the output. Result for the manager can be maximization of profit, achieve the sales target, customer satisfaction, market expansion.

d.) Regular practice: A manager should regularly practice the different principles in order to perform the work of management. Regular practice helps in gaining specialization and perfection which in return improves his performance and productivity.

e.) Creativity: The quality of being creative is called creativity. A manager must be creative enough and should promote the test of new ideas, methods and ways of doing work. Creativity shows the level of intelligence of a person.

From the above description we can say that management is an art as managers apply judgment based on scientific knowledge in the light of the situational reality and such practice or implementation of knowledge into practical life is what we call an art.

3.) Management as a profession: Profession is an economic activity in which personal service is provided in return of certain fee. The question whether management is a profession or not is completed by the fact that some part of management is profession whereas some is not. A profession needs to fulfill the following criteria:

a.) A profession is a systematic body of knowledge which requires intellectual training.

b.) A profession maintains an experimental attitude towards information thus requires search for new ideas

c.) A profession provides service in return of certain fee.

d.) It entry into a particular profession is restricted by certain code of conduct which has to be followed by all the members usually i.e. formed by an association.

A profession also has certain features and characteristics which are as follows:

1.) Specialized knowledge: A profession requires specialized knowledge. Thus in order to become a professional one must have specialized knowledge in a respective field. Such knowledge can be acquired by obtaining respective degrees provided by academic institutions which offer professional courses.

2.) Formal education and training: The specialized knowledge which is needed by a professional can be obtained through formal education and schooling. Different professional institutions offer different types of professional courses to the learner or students. Likewise through appropriate training programs also these skills and ability can be developed among the professionals.

3.) Social obligation: Every professionals is a socially responsible person. He has to fulfill social obligation, values and norms. Likewise a manager also has to bear corporate social responsibility towards various stakeholders like shareholders, employees, customers, society etc.

4.) Code of conduct: The professionals have to maintain and follow certain code of conduct. These code of conduct are basic understandings and rules formed by its association which guides its operation. A manager is also bound to follow various managerial and business ethics.

5.) Association: An association is a group of professionals belonging to a particular profession. This association is formed in order to protect the right and interest of its members and for sharing knowledge and experiences. In Nepal also professionals managers has formed an association named MAN i.e. Managers Association of Nepal.

All these points discussed above proves that management is a profession but is taken as a emerging profession because nowadays organizations are being lead by professional managers and this trend has been increasing day by day.

Levels of management or managerial hierarchy

Levels of management refer to a series of superior subordinate relationship. It is also popularly known as managerial hierarchy. There are different types of jobs to be performed in the organization which are arranged systematically according to its status in the organizational structure. As far as the different levels of management is concerned, the whole organizational structure can be classified into 3 levels namely top level management, middle level management and lower level management. These levels of management can also be shown as follows:
level-of-management



1.) Top level management: Top level management as it name suggest lies at the peak of the managerial hierarchy. That senior executive who has the responsibility to lead and guide the whole organization lies at the top level management. Therefore Top level management is also called as executive management. Board of directors, chairman, chief executive officer, general manager etc belongs to top level. These executives provides overall leadership to the entire organization and thus all major decisions, formulation of long terms plans and policies is done by the top level managers. Thus they mostly require conceptual skills in order to perform their work. A part from these top level managers has to perform several other functions which are as follows:

a.) To maintain control and provide leadership to the whole organization.
b.) To issue order and instruction to middle and lower level management.
c.) To formulate goal, plans and policies of the organization.
d.) To make arrangement of all necessary resources needed to establish and operate the organization.
e.) To maintain supervision over the lower levels and to solve problems faced by them.
f.) To create organizational structure and divide work among the staff.

2.) Middle level management:
In the managerial hierarchy middle level management lies in between top level and lower level management. Middle level management therefore creates a link between top level and lower level managements. Those executives who are responsible to look after a particular activity or an area of operation belongs to the middle level management. All departmental and functional managers like production manager, sales manager, finance manager, branch manager, and departmental heads belongs to the middle level management. The order and instructions given by the top level to lower level and any kind of suggestions, request, complain of the lower level to the top level passes through the middle level management. Since it acts like a linking pin in between top and lower level it mostly requires human skills to carry out its work. Some of the major duties and responsibilities of middle level management includes the following:

a.) Follow the order and instruction given by the top level management.
b.) To issue order and instruction to the lower level management.
c.) To make arrangement of necessary resources regarding their area of operation.
d.) To create link between top level and lower management.
e.) To make necessary arrangement of training programs needed to upgrade the skills of its employees .
f.) To evaluate the performance of employees working in their department and report it to the higher authorities.

3.) Lower level management: Lower level management in the organizational structure lies at the bottom of the managerial hierarchy. Those general staff who has the responsibility to carry out the day to day operation of the organization belongs to the lower level. Therefore lower level is also called as operative management. Section heads, supervisors, foremen, clerk, workers etc belongs to lower level management. Since these staff are concerned with performing the work in a specialized manner, they mostly require technical skill to perform their work. Some of the major function of lower level management includes the following:

a.) To follow the order and instructions given by top level and middle level management.
b.) To ensure proper utilization of resources and minimization of wastage.
c.) To maintain discipline at the work place.
d.) To coordinate with each other in order to create good working environment.
e.) To make arrangement of necessary tools and equipments needed during work.
f.) To report any kind of problems or grievances they have relating to work to the higher authorities etc.

As mentioned above different levels of management has to perform different types of work so they require different types of skills i.e. conceptual, human and technical skills. These skills needed at the different levels can also be shown through the help of a figure as shown below:
managerial skills

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