MANAGEMENT

MANAGEMENT

DEFINITION

Mary parker follet stated “Management is the art of getting things done through people.”

FEATURES OF MANAGEMENT

The main features of management are as follows:

1.      Management is a process: Management is a process undertaken by managers to achieve objectives of business. The management process involves:

·         Planning activities

·         Organizing resources

·         Directing employees, and

·         Controlling activities

The process of management is continuous in nature.

2.      Group activity: Proper management requires team work. The combined efforts of all the managers bring success to the organization.

3.      Involves getting things done through people: management involves getting things done through people in the organization. To get the work done , managers need to:

Lead the subordinates,

Motivate the subordinates,

Communicate effectively.

4.      Result oriented:  management places emphasis on results. The results can be in the form of : reduction in wastages, optimum use of resources, motivate workforce, higher efficiency, etc

5.      An art as well as science: In practice, Managing is an art, but manager can work better by using the organized knowledge (science). Therefore, management is both An art as well as science.

6.      Follows established Principles: management follow well established principles in managing their organization. The Principles are as follows: Division of work, authority –responsibility balance, Discipline, etc

7.      Dynamic in nature: management need to be creative and innovative. The success and survival of the organization largely depends upon innovation.

8.      All pervasive: management is an activity that touches all aspects of life. It is applicable not only to business organizations, but also to other organizations such as educational institutions, charitable trusts and individual activities.

9.      Intangible: Management as process or activity is not directly visible. the real presence of management  can be felt by the results.

10.  Adopts professional approach: now –a- days, managers adopt a professional approach in getting the work done through employees.

IMPORTANCE OF MANAGEMENT

The need and importance of management can be stated as follows:

1.      Innovation: management facilitates innovation in the organization. It is need to generate new ideas, new product, new technology, etc. Innovation helps to gain competitive advantages in today’s competitive business world.

2.      Corporate image: management enables the organization to enhance corporate image. A good corporate image creates confidence about the company in the minds of customer, employees, shareholders, etc.

3.      Team work: management develops team spirit in the organization. It is the team work that brings success to the organization.

4.      Optimum use of resources: management facilitates optimum use of resources in the organization. It brings good results in the organization.

5.      Motivation: management facilitates motivation of the employees in the organization by providing incentives. Motivated employees work with dedication and application.

6.      Customer satisfaction: effective management facilitates improvement in the quality and reduction in costs. Therefore customers get quality goods at lower costs, thus customer satisfaction takes place.

7.      Reduction in absenteeism: proper management facilitates reduction of absenteeism in the organization. Absenteeism takes place when employees remain absent without prior permission. Absenteeism creates several problems in the organization.

8.      Reduction in wastages: proper management ensures reduction of wastages in the organization. Reduction of wastages generates higher productivity in the organization.  

9.      Higher efficiency: management is required to generate higher efficiency in the organization.  Efficiency is relation between returns and costs.

10.  Better relation: management enables better relations in the organization. Good relation generate team work, and bring success to the organization.

MANAGEMENT V/S ADMINISTRATION

MANGEMENT	ADMINISTRATION
1.      Meaning: Management involves getting things done from employees in order to achieve the objectives.	Administration is concerned with framing plans and policies, rules and regulations so that the work is done systematically.
2.      Functions: the managers give more importance to directing and controlling of activities of their subordinates.	The administration gives more importance to planning and organizing.
3.      Usage in organization: the term ‘management’ is used for managerial functions in the business organization.	The term ‘administration’ is used for managerial functions in non business or government organization.
4.      Levels: lower level management is more concerned with ‘management’ and less with ‘administration’.	Top level management is concerned more with ‘administration’ and less with ‘management’.
5.      Thinking/Doing: management is concerned with doing (implementation) process.	Administration is concerned with thinking (planning) process.

LEVELS OF MANGEMENT

TOP LEVEL

LOWER LEVEL

MIDDLE LEVEL

 

FUNCTIONS OF LEVELS OF MANAGEMENT

1.      FUNCTIONS OF TOP LEVEL MANAGEMENT:

a)      Mission of statement: the top level management frames mission statement of the organization. The mission statement gives a clear direction to the activities of the organization.

b)     Plans and policies: top management frames plans and policies from long term point of view. The long term goals and objectives of the company are set by the top level.

c)      Organizing resources: the top level management make arrangement of important physical, financial and other resources of the company.

d)     Selection: the top level management has the responsibility of selecting departmental heads and other executives.

e)      Direction: the top management provides necessary direction to the middle level executives to implement the plans.

f)       Control of activities: the top management designs and develops a system of monitoring, measurement and evaluation of performance.

g)      Motivation: the top management has the responsibility to train and motivate departmental heads and executives in the organization.

h)     Reporting: the top management reports to the board of directors regarding the performance of the organization.

2.      FUNCTIONS OF MIDDLE LEVEL MANAGEMENT

a)      Planning: the middle level management frames plans and policies for the departmental activities. They get the plans approved by top management.

b)     Organizing resources: the middle level management make arrangement of important physical, financial and other resources for doing departmental activities.

c)      Selection: the middle level management has the responsibility of selecting lower level executives.

d)     Direction: the middle level management provides necessary direction to the lower level executives to do work efficiently.

e)      Control of activities: the middle level management monitors and evaluation of performance.

f)       Motivation: the middle management has the responsibility to train and motivate lower level executives so that they perform effectively in the organization.

g)      Reporting: the middle level management reports to the top level management regarding the performance of the organization.

3.      FUNCTIONS OF LOWER LEVEL MANAGEMENT

a)      Planning: the lower level management frames day to day plans in order to undertake day to day activities.

b)     Organizing resources: the lower level management make arrangement of resources like raw materials, spare parts and tools etc.

c)      Direction: the lower level management provides necessary direction to operating personnel and labours.

d)     Control of activities: the lower level management monitors and controls the activities of the operating personnel so that targets are achieved as per the plan.

e)      Motivation: the lower management motivates the operating personnel by providing necessary incentives.

f)       Reporting: the lower level management reports to the middle level management regarding the performance of the operating personnel.