Definition

• According to George R. Terry, “Management is a distinct process consisting of planning, organising, actuating and controlling, performed to determine and accomplish stated objectives by the use of human beings and other resources”. 

• According to Henry Fayol, “To manage is to forecast and to plan, to organise, to command, to coordinate and to control”.

• According to Peter Drucker, “Management is a multi-purpose organ that manages business and manages managers and manages workers and work”.

• According to Harold Koontz, “Management is the art of getting things done through and with people in formally organized groups”.

• According to Mary Parker Follett, “Management is the art of getting things done through people”.

• According to Ross Moore, “Management means decision-making”.

• According to F. W. Taylor, “Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way”.

Thus, management can be defined as a dynamic process of utilizing the organizational resources to achieve organizational goals in an effective and efficient manner. There are certain terms which require elaboration. These are (a) process, (b) effectively, and (c) efficiently.

The organizational resources that act as inputs in the process of management are: Men, Money, Materials, Machines, Methods and Markets. These are the six M’s of management.

The management process is effective when the desired goal is achieved within the time. It is efficient if the desired goal is completed by using minimum resources or minimum cost. Management is said to be poor if it is effective but inefficient. Management is said to successful if it is effective as well as efficient. Management should be efficient otherwise it is useless.

Nature of Management

1. Universal Process

Wherever there exists human pursuit, there exists management. Without effective management, the intentions of the organization cannot be accomplished.

2. The factor of Production

Equipped and experienced managers are necessary for the utilization of funds and labor.

3. Goal-Oriented

The most significant aim of all management pursuit is to achieve the purposes of a firm. The aims must         be practical and reachable.

4. Supreme in Thought and Action

Managers set achievable goals and then direct execution on all aspects to achieve them. For this, they need complete assistance from middle and lower degrees of management.

5. The system of authority

Well-defined principles of regulation, the regulation of proper power and efficiency at all degrees of decision-making. This is important so that each self must perform what is required from him or her and to whom he must report.

6. Profession

Managers require to control managerial expertise and education and have to adhere to a verified law of demeanor and stay informed of their human and social responsibilities.

7. Process

The management method incorporates a range of activities or services directed towards an object.

Nature of Management

1. Management as a Science

Science as a discipline has the following characteristics:

a) Systematic body of knowledge
b) Principles based on experimentation
c) Universal validity of the laws and principles

Management satisfies these requirements to a certain extent:

1) Management is a systematic body of knowledge with its own theories and principles.
2) The principles of management also evolved through repeated experimentation. But since management deals with humans, the outcome of the experiments is significantly unpredictable.
3)  The principles of management do not have a universal applicability and need modification under different circumstances.

Thus, it can be said that management is not an exact science. It is a social science as it deals with humans or in the words of Ernest Dale – ‘Management is a soft science’.

2. Management as an Art

Art implies application of knowledge. It is highly personalized activity to achieve desired goals. Since, art varies from person to person it is prone to failure.

Just like any other art:

1) management is also application of knowledge in different situations.
2)  management is a highly personalized activity and varies from manager to manager. Thus, management is also prone to failure.
3) management is action-oriented to achieve organizational objectives.

Thus, management is a perfect art or rather a fine art.

3. Management as a Profession

According to McFarland, various characteristics of a professional activity are:

1) based on special skills and knowledge
2) formal methods of acquiring these skills.
3) an apex body which issues guidelines for professionalization of the occupation.
4) a uniform code of conduct to regulate the members.
5)  providing service for a fee.
6)  social responsibility.

Management is a professional activity like doctors and lawyers. Although every organization tries to design their ethical codes of behaviour individually, there is absence of a uniform code of conduct.

Thus, management can be considered as a developing profession.

Objectives of Management

Objectives can be classified into organizational objectives, social objectives and personal or individual objectives

1. Organizational Objectives

Management is responsible for setting and achieving objectives for the organization. It has to achieve a variety of objectives in all areas considering the interest of all stakeholders including, shareholders, employees, customers and the government. The main objective of any organization should be to utilize human and material resources to the maximum possible advantage, these are survival, profit and growth.

2. Social objectives

It involves the creation of benefit for society. As a part of society, every organization whether it is business or non-business, has a social obligation to fulfil.

3.Personnel objectives

Organizations are made up of people who have different personalities, backgrounds, experiences and objectives. They all become part of the organization to satisfy their diverse needs. These vary from financial needs such as competitive salaries and perks, social needs such as peer recognition and higher-level needs such as personal growth and development. Management has to reconcile personal goals with organizational objectives for harmony in the organization.

Characteristics of management

The salient features which highlight the nature of management are as follows: 

1. Management is goal-oriented

Management is not an end in itself. It is a means to achieve certain goals. Management has no justification to exist without goals. Management goals are called group goals or organizational goals. The basic goal of management is to ensure efficiency and economy in the utilization of human, physical and financial resources. The success of management is measured by the extent to which the established goals one achieved. Thus, management is purposeful. 

2. Management is universal

Management is an essential element of every organized activity irrespective of the size or type of activity. Wherever two or more persons are engaged in working for a common goal, management is necessary. All types of organisations, e.g., family, club, university, government, army, cricket team or business, require management. Thus, management is a pervasive activity. The fundamental principles of management are applicable in all areas of organized effort. Managers at all levels perform the same basic functions. 

3. Management is an Integrative Force

The essence of management lies in the coordination of individual efforts into a team. Management reconciles the individual goals with organizational goals. As unifying force, management creates a whole that is more than the sum of individual parts. It integrates human and other resources. 

4. Management is a Social Process

Management is done by people, through people and for people. It is a social process because it is concerned with interpersonal relations. Human factor is the most important element in management. According to Appley, “Management is the development of people not the direction of things. A good manager is a leader not a boss. It is the pervasiveness of human element which gives management its special character as a social process”

5. Management is multidisciplinary

Management has to deal with human behavior under dynamic conditions. Therefore, it depends upon wide knowledge derived from several disciplines like engineering, sociology, psychology, economics, anthropology, etc. The vast body of knowledge in management draws heavily upon other fields of study. 

6. Management is a continuous Process

Management is a dynamic and an on-going process. The cycle of management continues to operate so long as there is organized action for the achievement of group goals. 

7. Management is Intangible

Management is an unseen or invisible force. It cannot be seen but its presence can be felt everywhere in the form of results. However, the managers who perform the functions of management are very much tangible and visible. 

8. Management is an Art as well as Science

It contains a systematic body of theoretical knowledge, and it also involves the practical application of such knowledge. Management is also a discipline involving specialized training and an ethical code arising out of its social obligations. On the basis of these characteristics, management may be defined as a continuous social process involving the coordination of human and material resources in order to accomplish desired objectives. It involves both the determination and the accomplishment of organizational goals. 

Importance of Management

Importance of management to an organization can be gauged through the activities it performs. These activities can be listed as:

1. Optimum utilization of resources

Management helps to utilize the resources in best possible manner thereby reducing the wastage ensuring maximum possible profitability. This gives business a competitive edge in the market and also helps in growth and expansion of business.

2. Cordial industrial relations

It motivates employees to perform the assigned job to their potential level. This increases productivity and results in higher satisfaction level among the employees. The employee turnover and absenteeism is also reduced. Thus, management and workers have cordial relationship.

3. Adapting to changed environment

Management keeps a track of the changes in business environment. This helps organization to adapt to the changed situations of the market. Bringing about changes in the organization, including introduction of new technology, becomes easier with the efforts of the managers.

4. Develops team spirit

Management brings about unity of direction in the organization as it guides all the efforts towards the achievement of a common objective. This helps develop team-spirit in the organization.

5. Effective communication

Management brings about an effective communication – both upwards and downwards. This helps in smooth functioning of the organization.

Levels of Management

In an organization managers differ in their status and power. There is a line of demarcation that distinguish managers on the basis of powers and authority they enjoy. There are generally three levels of management in any organizations.

1. Top Level Management

They comprise of the senior-most executives of the company. They are normally regarded as the Chairman, the Chief Executive Officer (CEO), the Chief Operating Officer (COO), President and Vice-president (VP). Top management is a team consisting of managers from various operational levels, managing marketing, finance, etc., For instance, Chief Finance Officer (CFO), Vice President (marketing) whose primary task is to combine various components and regulate the actions of different units according to the overall objectives of the company.

These top-level managers are accountable for the progress and continuation of the establishment. They investigate the trading atmosphere and its connections for the survival of the company. They form the overall organizational aims and approaches for their accomplishment. They are held responsible for all the pursuits of the company and for its influence on the society. The job of the top manager is difficult and stressful, necessitating long hours and dedication to the company.

• Top level management, also called functional management or strategic management,

• It is the topmost decision-making body in the organization.

• It is the ultimate source of power and authority.

• Planning & Decision Makings are main function of top-level management. which includes formulating of basic policies, making corporate plan, deciding the corporate goal and take decisions regarding survival, growth and profitability of the organization as a whole.

• They decide the structure or the organization and appoint various executives.

• It comprises of directors selected by the owners or shareholders of the organization along with chief executives officer (CEO), general managers, managing directors, chairman etc.

2. Middle Level Management

It is the connection between top and lower-level managers. They are lower to the top managers and above to the first line managers. They are normally called as division heads, for instance, Production Manager. Middle management is accountable for executing and regulating systems and maneuverings generated by the top management.

At the same time, they are liable for all the actions of the first-line managers. Their principal task is to bring out the plans formed by the top managers. 

• The managers in the middle level are appointed to act as a channel of communication between the top level and lower-level management.

• They are responsible for communicating and interpreting the policies made at the top level to the lower management along with coordination between various units at the lower level.

• Their main function is concerned with overall functioning of their respective departments which includes departmental plans, establish departmental goals and perform various activities for smooth functioning of their department.

• This level comprises of departmental heads, deputy managers etc.

3. Lower-Level Management

Managers and supervisors make up the lower level of the management in the hierarchy of the business. Supervisors immediately manage the efforts of the workforce. Their power and ability are defined according to the maps drawn by the top management.

Supervisory management performs a significant task in the system since they coordinate with the genuine workforce and move in directions of the middle management to the employees. Through their efforts the worth of the output is reported, wastage of substances is reduced, and security measures are affirmed.

• Lower-level management, also called operative management or supervisory management

• consists of supervisors, foremen, superintendents etc.

• They are responsible for taking decisions which are of routine nature.

• They directly guide, instruct and supervise the job of workers.

• The managers at lower level responsible to ensure discipline among the workers, evaluate their performance and report to the higher authorities.

• They are also entrusted with communication of workers’ grievances to the higher management. They act as a link between the middle management and the workers at the lowest level.

Managerial Skills

1. Conceptual, Human and Technical Skills

According to Robert Katz, successful management of an organization depends on application of three skills by the managers. These are:

a. Conceptual Skills

Conceptual skills refer to the problem-solving ability of managers. This requires managers to treat the organization as a whole, understand the functioning of various sub-systems of the organization and foresee any changes that may affect the organization.

b. Human Skills

Human skill or interpersonal skill is related to manager’s attitude towards others. It refers to the ability of a manager to understand and empathise with his superiors, peers and subordinates. Thus, human skill reflect the ability to work as a group member and encourage team work.

c. Technical Skills

Technical skill refers to the ability to use special skills, understand the techniques and handle materials, tools and equipment. It is primarily concerned with the methods and procedures related to various activities of the organization.

A manager requires Conceptual, Human as well as Technical skills to perform his functions but the degree of skill various at different levels.

At the top level, the main task of management is policy making which requires a high degree of conceptual skills and relatively low degree of technical skills.

At the lower level, the main task of management is supervision and guidance of the workers which requires a high degree of technical knowledge and relatively low degree of conceptual skills.

The human skill holds equal significance at all levels.

2. Hard and Soft Skills

a. Hard Skills

Hard skills represent the special skills required to perform a job. These are acquired and developed through studying and training. For example: proficiency in accounting or a software such as Tally is acquired by study, practice and training.

b. Soft Skills

These skills are not job-specific and can be applied to a wide range of activities. These are self-taught and self-developed through experience and do not require any kind of training. For example: communication skills, problem-solving skills, ability to lead etc.

Role of Manager

Professor Henry Mintzberg, a great management researcher, after studying managers for several weeks concluded that, to meet the many demands of performing their functions, managers assume multiple roles.

He propounded that the role is an organized set of behaviors. He identified the following ten roles common to the work of all managers. These roles have been split into three groups as illustrated in the following figure.

Interpersonal Role

• Figurehead − Has social, ceremonial and legal responsibilities.

• Leader − Provides leadership and direction.

• Liaison − Networks and communicates with internal and external contacts.

Informational Role

• Monitor − Seeks out information related to your organization and industry, and monitors internal teams in terms of both their productivity and well-being.

• Disseminator − Communicates potentially useful information internally.

• Spokesperson − Represents and speaks for the organization and transmits information about the organization and its goals to the people outside it.

Decisional Role

• Entrepreneur − Creates and controls change within the organization - solving problems, generating new ideas, and implementing them.

• Disturbance Handler − Resolves and manages unexpected roadblocks.

• Resource Allocator − Allocates funds, assigning staff and other organizational resources.

• Negotiator − Involved in direct important negotiations within the team, department, or organization.