2. According to Koontz and O’Donnell, “Management is the art of getting things done through and with people in formally organised groups. It is the art of creating an environment in which, people can perform as individuals and yet, cooperate towards the attainment of group goals. It is the art of removing blocks to such performances, a way of optimising efficiency in reaching goals.”
3. According to Frederick Winslow Taylor, “Management is the art of knowing vvh|l you want to do and then, seeing that it is done in the best and cheapest way.”
4. Henry Fayol says “To manage is to forecast and to plan, to organise, to command, to coordinate and to control.”
In all the human activities, some goals have to be achieved. In this world, there can be three types of situations: (a) resources may be scarce; (b) resources may be equal to the needs: and (c) resources may be more than the needs. We need resources to achieve the objectives. All types of objectives can be considered in this context.
Every individual or organisation must have some objectives to achieve. In order to achieve these, there may be some constraints, like:
Now, besides profit, the social and ecological issues are prominent among all the objectives. We must earn good amounts of money but, not by such means as would put lives of millions of people at stake.
Further, the other elements of the ecology like birds, animals, vegetation, river systems, water bodies, parts of the atmosphere etc must also not suffer due to the greed of man. The Pharmaceutical industry is a lucrative business nowadays.
But, if a firm makes spurious drugs, the profits of this firm would soar to dizzy heights. Should this firm play with the lives of people to earn unimaginable profits? During the days of its infancy, management had nothing to do with morality.
Today, in the new millennium, its chief focus is on the protection of moral values at the individual, firm, social and environmental levels. They are more concerned about how worried about money; it flows into their pockets quite naturally.
They are more concerned about how they would satisfy their business associates, clients, vendors, employees, religious groups, NGOs, regional and national governments and all those institutions that are in favour of making the earth a green planet.
1. Nature of Management it is a Dynamic Process:
The principles of management are dynamic. These change with the changes in the environment in which, the organisation or firm operates. Thus, the principles of management are flexible. New principles replace old ones.
That is a trend the management practitioners have to accept. The principles of management are not as rigid as those of engineering. This flexibility poses problems for management practitioners.
Management draws its knowledge sets and basic tenets from various fields, namely, economics, sociology, psychology, statistics, history, operations research, ecology etc. Principles taken from these disciplines are adopted or modified according to the needs of the gargantuan gamut of management. The principles of these disciplines become more relevant and powerful when these are used (in their modified and more potent formats) in the field of management.
Since, Management uses the standard of scientific procedure to arrive at specific conclusions and principles, which is a science. It is, in fact, a social science. Many authors have also called it Pseudo Science or Inexact Science because; it is not an exact science.
Management is an art because, it advances by practice. Moreover, it feels, perceives and describes the phenomena; this is also a typical feature of all the arts. Management also opines and expresses, just like an art connoisseur.
2. Process of Management:
When the basic functions of management are applied or executed in any organisation in a never- ending sequence, a process results. This is a unique methodology that helps the organisation survive and grow. It uses the tenets of planning, organising, staffing, directing and controlling.
Thus, when these five basic functions are put in a sequence, these convert the organisation into an organism that delivers concrete results. And who is responsible for this? Of course, the linkages between these five functions.
Thus, a process evolves that propels the organisation towards new horizons of fortune and fame. Following figure shows the functions of management in a continuous dynamic rhythm. Thus, the management process is the never-ending dynamic of its 5 components-planning, organising, staffing, direction and controlling.
3. Functions of Management:
The 5 basic functions of management are as follows:
(a) Planning: Planning is to determine the future course of an action.
(b) Organising: Work is divided into tasks or duties and thus, made an organisational chart to define departments, divisions and sections.
(c) Staffing: It includes recruiting staff, inducting them in the firm, and training, managing and firing them.
(d) Directing: It includes giving instructions to juniors as well as leading and motivating them so that they could perform in their respective jobs.
(e) Controlling: Controlling compares the actual results with targeted ones and uses corrective actions to help employees generate the coveted output levels.
4. Levels of Management:
According to Litterer management has three levels:
(i) Institutional or trusteeship level of management.
(it) General or facilitating level of management
(iii) Departmental or integrating level of management.
According to Keith Davis, there are four levels of management:
(i) Trusteeship level of management
(ii) Departmental level of management
(iii) Middle level of management, and
(iv) Supervisory level of management.
EFL Brech, in his book ‘Principles and Practice of Management’, has given three levels of management which is all-accepted in modern organisational context. These three levels are
Top level of Management: This level includes Boards of Directors, Chairmen, Presidents, Chief Executive Officers (CEOs) and Chief Operative Officers (COOs) are also included. Many members of the top level work for the firm on a part basis; they are called Part Time Directives or Ad Hoc Directors. Responsibilities of top level member lie in
(a) Overall management
(b) Overall operations
(c) Overall relationship.
Middle Level of Management:
This level acts as a bridge between the top level and supervisory level of management. It is subdivided in two groups-(a) Upper middle level and (b) Lower middle level.
These two sublevels execute the policies defined and designed by the top management. Responsibilities of the members of this level lie in
(a) Following the plans of top level
(b) Making strategies and activating the plans of top level
(c) Satisfying the demand of top level
(d) Communicating and educating the members of supervisory level.
Supervisory Level of Management:
Members of this level are diploma holders in one stream or the other. They are technically trained in at least one field. Their communication abilities are poor. They are not willing to develop their careers. They plan the activities of their respective sections. They classify and assign jobs to workers.
They guide workers in technical operations of machines or commercial tasks of elementary nature. They ensure maintenance of machinery and other pieces of equipment. They give on-the-job training to workers. They supervise and control their juniors through carrot and stick policies.
They deal with factory workers, peons, sales boys, office staff and transport staff. We can add more cadres of lower level to this list. They are above the operatives and below the middle- level cadres.
There can be three sub-levels of this level-senior, intermediary and front-line. They execute the programmes of the middle-level management. They are also called Marginal Men. They explain the views of workers to the middle-level management and orders of the management to workers and operative staff.
5. Managerial Skills:
Managerial skill is the ability of a manager to manage the processes, people, equipment and resources at his command so that the objectives of his department or organisation could be achieved at the lowest possible costs and maximum possible efficiency.
1. Technical Skills:
The executive must be an expert in at least one technical or managerial field.
2. Decision Making Skills:
The executive should be able to take timely and accurate decisions to achieve the goals of his department or firm.
3. Leadership Skills:
The executive should be able to motivate and persuade his juniors to get the tasks (allocated td them) accomplished in a time-bound manner.
4. Adaptive Skills:
The executive should get assimilated in the organisation he works for. He should do so as quickly as is possible. We feel that a time of 8 to 12 months is sufficient to get assimilated (and accepted) in a firm.
Some executives may take more time to do so but, this is not a negative point of any executive. He starts thinking and taking actions according to the broad politics and procedures of his organisation. Hence, he may be late in adapting.
5. Managing Skills:
The executive should be well versed with latest skills as MBO, JIT planning, PPC, Kaizen, TQM, CRM, Situational Group Theory, Management by Exception and vital communication methodologies. Knowledge of these tools would enable him to become an effective and successful manager.
So, he would be able to achieve the goals of his section, division or firm at lowest possible costs. Participative management is an avant-garde technique nowadays. He can use this technique to carry his juniors along with his in the focus in most of the firms. So, he should use Participative management techniques to get results from his subordinates.
6. Social Skills:
The executive should be suave, affable, polite, empathetic and soft-at-heart in the context of his operations in the firm. But even outside the firm, he would do well if he were to display such abilities. His overall personality would be groomed that way. He must be courteous to strangers, ladies and children.
He must remain well dresses, healthy and agile at all the times. He must have a smiling face whenever he is on a business trip or in business meeting. He should smile as it increases his face value. He must also take success and failure with equal ease. He should not rejoice on being successful and become melancholic, if he is proves to be a damp squib.
6. Managerial Roles:
A member of the top management:
Defines the major and minor objectives of the organisation.
Arranges financial resources, land, plant, machinery and other facilities for the organisation
Recruits and promotes senior managers or the cadres of the middle-level management
Defines broad strategies and policies for the firm
Plays crucial roles in arranging long-term and short-term finances of the firm
Helps the firm grow; for this purpose, he looks for new markets of the products/services of his firm.
Tries to understand what is on the back of the mind of the competition. He takes adequate steps within and outside the firm, counters the moves of the competition
Tries to give an image to the firm. He wants that image to be everlasting and one of the best in the product lines or business the firm is in
Makes plans and policies. He does not think about the firm’s production, personnel or other operations. But, he does take care of the finances and marketing operations like an eagle. The accounts of the firm as well as the financial and outflows are always on his fingertips.
Can fire even his most trusted deputies. He is whimsical; this, he can make or mar the future of many a senior or junior manager. His meticulous behaviour, a knack for financial analysis and analytical (or engineering) skills may be used by the firm at many points of time in the life of the firm.
Is a generalist; he could be a specialist but when he becomes a COO, CEO, President or Director, he is forced to become a generalist. He faces many problems. He does not ask for more problems; he wants the solutions to the previous ones first
Is the life and soul of the organisation; this organisation is like a child for him and he can do anything within his control to make it successful entity
Not demand money; he has lots of money in his bank accounts. He wants prestige, ego satisfaction and something extraordinary for his firm and its employees
He is a go-getter.
A member of the middle management:
Translates the strategies and policies of the top management into such programmes as would run the organisation
Makes budgets, financial statements, resources allocation documents, procedures statements, personnel programmes, training programmes etc. for the organisation. He is guided by his colleagues and the top brass in these efforts
Recruits and promotes the supervisors or the cadres of the lower-level management
Plays very minor role in arranging long-term and short-term finances of the firm. At the most, be may play the role of a liaison man in these efforts
Helps the firm execute; for this purpose, he counts on the abilities of his juniors. He himself does not run around; he tells his deputies to do so
Executes plans and policies. He is worried about the firm’s production, personnel or other operations. He knows all the figures related to his department or division
Is ambitious but, not very ruthless. He cannot fire his deputies in most of the cases due to restriction imposed on him by the owners of the firm
Meticulous behaviour and skills which are used by the firm quite often
Is a generalist; he was a specialist but, becomes a generalist when he crosses the age of 40 years
Demand money and perquisites are demanded by him
Is a go-getter and very much ambitious to move up to the top of the ladder.
A member of the supervisory management:
Translates the program of the middle-level management into the procedures and actions at the lowest level. Such procedures actions are to be performed by workers (who are his juniors)
Makes production reports, elementary financial statements, QC records, dispatch reports and other replies related to the day-to-day operations of the firm. He is guided by his juniors in these exercises.
Helps workers deliver concrete results. He does the work of a worker (who may be absent), if the need arises. He is equally competent to take up the tasks of his juniors for small time periods. He knows how the product is manufactured; he knows more than his juniors in the context of the basic operation under his control
Executes basic procedures. He is not concerned about the output of the firm. He must take care of his small unit or cell.
Is not at all ambitious. He is ruthless towards his juniors at many points of time. He loves them too. Some firms allow him to fire his juniors. But, that happens when he works for the firm on a contract basis.
In that case, he is squarely responsible for managing, hiring and firing workers under him. He is not meticulous to the core; he may have to depend upon senior technical and managerial staff in many cases
Is a generalist of a poor grade; he would remain one throughout his life
Money is demanded by him in very small amounts. That is because, his needs are limited. Minor incentives are demanded by him during festival seasons
Is not a go-getter. He performs because; he wants to get money, perks and incentives from his superiors. He does not want to become a member of the middle management. He thinks that he is not educated or competent enough to rise to that level.
7. The External Environment:
An organisation is a subsystem of a broader societal system. It has to work in the framework provided by the society and its various components. The components of the society form the environment of the firm. But, the firm has an internal mechanism (or a set of mechanisms) as well.
According to Chester Barnard, “Environment consists of atoms of molecules, agglomeration of things in motion, of men and emotions, of physical and social law, social norms of actions, of forces and resistance. Their number is infinite and they are always present; they are always changing.”
These mechanisms help it work as an integrated unit and deliver results. Thus, the organisation has two types of environment-internal and external. All those elements that operate outside the organisation are collectively called External Environment. All those elements that are a part of the organisation are collectively called Internal Environment of the firm.
(a) Societal Environment:
It is also called General Environment, Economic; legal, political, technological, sociological, cultural, ecological and natural affect the working of every organisation.
These are a part of its societal environment. The organisation cannot remain all of from these vital parts of the societal (general) environment. If it ignores some or all of the components, it stands to lose its profits or prestige.
These forces make a framework for the organisations that are immersed in the societal environment. These determine the availability of resources, funds, organisational process and techniques that would be used by a firm to create products and/or services.
These forces also determine the acceptability of the outputs of the organisation. Some of the forces may be conducive for the growth of the organisation while, some others may not be. The top brass of the firm has to determine, which forces (of this societal environment) would help the firm achieve the coveted targets.
It has to counter the ill effects of those forces that are against the working and goals of the firm. The lower cadres of the organisation help the top brass in fighting the hostile forces and utilising the thrust or impact of the conducive forces.
(b) Task Environment:
It is also called Specific Environment. It refers” to the forces outside the organisation directly relevant to the decision making and transformation processes of the individual organisation.
It comprises groups and institutions beyond the boundaries of the organisation. These groups and institutions provide immediate inputs and exert pressures on the decisions of the organisation; some of these groups and institutions also use the inputs of the organisation.
All the management researchers opine that the environmental factors or components are intertwined with one another. They affect the performances and effectiveness of one another. Name of these can be studies in isolation.
According to Duncan, the components of the external environment are-consumer component, supplies component, competitor component, socio-political component and technological component.
Glueck has categorised external environment into 6 broad parts-economic, market/competitive, supplier/technological, government/legal, social and geographical.
8. Social Responsibilities and Ethics:
According to Kenneth R. Andrews, “By social responsibility, we mean the intelligent and objective concern for the welfare of society that restrains individual and corporate behaviour from ultimately destructive activities, not matter low immediately profitable and leads in the direction of positive contributions to human betterment, variously as the latter may be defined.”
Social Responsibilities of Business encompass 3 types of behaviour-positive, negative and neutral. All the equally important. Every person and firm has some social Responsibilities of Business. He or it must fulfill these carefully because; the resources of the mankind are scarce. Many groups are direct or indirectly linked with Social Responsibilities of Business.
The standards fixed for fulfilling the obligations to various parties must be decided in accordance with some social norms/expectations, such obligations can vary from society to society. Shareholders, workers, customers, creditors, debtors, vendors, union and state government, society and ecology are called the interest groups in the context of social responsibilities of business.
Milton Friedman has defied the concept of Social Responsibility of Business. He has states that the primary aim of any business is to earn profits. This doctrine goes against Social Responsibilities of Business, according to him.
Theodore Lewitt has stated that Social Responsibilities of Business would turn the corporation into a twentieth-century equivalent of the medieval church. We do not agree with the views of the management connoisseurs.
If the planet survives, we grow. If the planet and its components head for a doomsday, as these are already doing, we cannot expect any human being to walk on the earth, leave alone a businessman.
The components of society are being exploited by the powerful businesses of the present-day era. This trend must be given a U- turn, lest the world should witness reprisals from the poor undermined masses.
And the targets of their wrath would be business houses, big and small. All the humans have the right to breathe, eat, live decently and work under the best conditions.
Social Responsibilities of Business remind the haves that these cannot thrive without the blessings of the have-notes. Thus, Social Responsibilities of Business are very much relevant and useful in the new century. The business firm has to decide when it would accept their as the tenets of its operations. The sooner is does, the better.
All the individuals are inclined to display particular sets of behaviour, called Ethics. In the parlance of business operations, these are called Business Ethics. But, the primary aim of any business firm is earning maximum of profits.
Thus, business ethics are carefully sidelines by the firm. Even an individual, who indulges in business activity of any kind, conveniently forgets these ethics. As such, the human race has decayed beyond compare, through it has grown in materialistic terms.
Business ethics relate to the behaviour of a businessman of firm in the context of his or its operations. These are concerned with the effects of the decisions (taken by the businessman or the firm) on people within and without business organisations.
Every business must conform to the laws of ethical conduct while, it strives to make money. Others must not suffer due to its operations. If this business itself suffers due to unethical behaviours of others, it also has the right to get justice- social, economic and political.