Management (or managing) is the administration of an organization, whether it is a business, a not-

for-profit organization, or government body. Management includes the activities of setting

the strategy of an organization and coordinating the efforts of its employees (or of volunteers) to
accomplish its objectives through the application of available resources, such
as financial, natural, technological, and human resources. The term "management" may also refer to
those people who manage an organization.
Social scientists study management as an academic discipline, investigating areas such as social
organization and organizational leadership.[1] Some people study management at colleges or
universities; major degrees in management include the Bachelor of Commerce (B.Com.) Bachelor of
Business Administration (BBA.) Master of Business Administration (MBA.) and, for the public sector,
the Master of Public Administration (MPA) degree. Individuals who aim to become management
specialists or experts, management researchers, or professors may complete the Doctor of
Management (DM), the Doctor of Business Administration (DBA), or the PhD in Business
Administration or Management.
Larger organizations generally have three levels of managers, which are typically organized[by whom?] in
a hierarchical, pyramid structure:

 Senior managers, such as members of a Board of Directors and a Chief Executive Officer (CEO)
or a President of an organization. They set the strategic goals of the organization and make
decisions on how the overall organization will operate. Senior managers are generally executive-
level professionals, and provide direction to middle management who directly or indirectly report
to them.
 Middle managers, examples of these would include branch managers, regional managers,
department managers and section managers, who provide direction to front-line managers.
Middle managers communicate the strategic goals of senior management to the front-line
managers.
 Lower managers, such as supervisors and front-line team leaders, oversee the work of regular
employees (or volunteers, in some voluntary organizations) and provide direction on their work.
In smaller organizations, an individual manager may have a much wider scope. A single manager
may perform several roles or even all of the roles commonly observed in a large organization.

Contents

 1Definitions
o 1.1Theoretical scope
 2Nature of work
 3History
o 3.1Etymology
o 3.2Early writing
o 3.319th century
o 3.420th century
o 3.521st century
 4Topics
o 4.1Basics
o 4.2Basic roles
o 4.3Skills
o 4.4Implementation of policies and strategies
 5Policies and strategies in the planning process
 6Levels
o 6.1Top
o 6.2Middle
o 6.3Lower
 7Training
o 7.1United States of America
 7.1.1Undergraduate
 7.1.2Graduate
o 7.2Good practices
 8See also
 9References
 10External links

Definitions[edit]
Views on the definition and scope of management include:

 According to Henri Fayol, "to manage is to forecast and to plan, to organise, to command, to co-
ordinate and to control."[2]
 Fredmund Malik defines it as "the transformation of resources into utility."
 Management included as one of the factors of production – along with machines, materials and
money.
 Ghislain Deslandes defines it as “a vulnerable force, under pressure to achieve results and
endowed with the triple power of constraint, imitation and imagination, operating on subjective,
interpersonal, institutional and environmental levels”.[3]
 Peter Drucker (1909–2005) saw the basic task of management as
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[by
whom?]
as two different branches of business administration knowledge.
Theoretical scope[edit]
Management involves identifying the mission, objective, procedures, rules and manipulation[4] of
the human capital of an enterprise to contribute to the success of the enterprise.[citation needed] This
implies effective communication: an enterprise environment (as opposed to a physical or mechanical
mechanism) implies human motivation and implies some sort of successful progress or system
outcome.[citation needed] As such, management is not the manipulation of a mechanism (machine or
automated program), not the herding of animals, and can occur either in a legal or in an illegal
enterprise or environment. From an individual's perspective, management does not need to be seen
solely from an enterprise point of view, because management is an essential function to improve
one's life and relationships.[citation needed] Management is therefore everywhere[citation needed] and it has a
wider range of application.[clarification needed] Based on this, management must have humans.
Communication and a positive endeavor are two main aspects of it either through enterprise or
independent pursuit.[citation needed] Plans, measurements, motivational psychological tools, goals, and
economic measures (profit, etc.) may or may not be necessary components for there to be
management. At first, one views management functionally, such as measuring quantity,
adjusting plans, meeting goals.[citation needed] This applies even in situations where planning does not take
place. From this perspective, Henri Fayol (1841–1925)[5][page needed] considers management to consist of
five functions:

1. planning (forecasting)
 2. organizing
3. commanding
4. coordinating
5. controlling
In another way of thinking, Mary Parker Follett (1868–1933), allegedly defined management as "the
art of getting things done through people".[6] She described management as philosophy.[7][need quotation to
verify]

Critics[which?], however, find this definition useful but far too narrow. The phrase "management is what
managers do" occurs widely,[8] suggesting the difficulty of defining management without circularity,
the shifting nature of definitions[citation needed] and the connection of managerial practices with the
existence of a managerial cadre or of a 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 broadly, every organization must "manage" its work, people, processes, technology,
etc. to maximize effectiveness.[citation needed] Nonetheless, many people refer to university departments
that teach management as "business schools". Some such institutions (such as the Harvard
Business School) use that name, while others (such as the Yale School of Management) employ the
broader 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.[9] Historically this use of
the term often contrasted with the term "labor" – referring to those being managed.[10]
But in the present era[when?] the concept of management is identified[by whom?] in the wide areas[which?] and
its frontiers have been pushed to a broader range.[citation needed] Apart from profitable organizations even
non-profitable organizations (NGOs) apply management concepts. The concept and its uses are not
constrained[by whom?]. Management on the whole is the process of planning, organizing,
coordinating, leading and controlling.

Nature of work[edit]
In profitable organizations, management's primary function is 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 great 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.

History[edit]
Some see management as a late-modern (in the sense of late modernity) conceptualization.[11] On
those terms it cannot have a pre-modern history – only harbingers (such as stewards). Others,
however, detect management-like thought among ancient Sumerian traders and 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 Hindu numerals (5th to
15th centuries) and the codification of double-entry book-keeping (1494) provided tools for
management assessment, planning and control.
 An organisation is more stable if members have the right to express their differences and solve
their conflicts within it.
 While one person can begin an organisation, "it is lasting when it is left in the care of many and
when many desire to maintain it".
 A weak manager can follow a strong one, but not another weak one, and maintain authority.
 A manager seeking to change an established organization "should retain at least a shadow of
the ancient customs".
With the changing workplaces of industrial revolutions in the 18th and 19th centuries, military theory
and practice contributed approaches to managing the newly-popular factories.[12]
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, a distinction between owners (individuals, industrial dynasties or groups
of shareholders) and day-to-day managers (independent specialists in planning and control)
gradually became more common.

Etymology[edit]
The English verb "manage" comes from the Italian maneggiare (to handle, especially tools or a
horse), which derives from the two Latin words manus (hand) and agere (to act). The French word
for housekeeping, ménagerie, derived from ménager ("to keep house"; compare ménage for
"household"), also encompasses taking care of domestic animals. Ménagerie is the French
translation of Xenophon's famous book Oeconomicus[13] (Greek: Οἰκονομικός) on household matters
and husbandry. The French word mesnagement (or ménagement) influenced the semantic
development of the English word management in the 17th and 18th centuries.[14]

Early writing[edit]
Management (according to some definitions) has existed for millennia, and several writers have
produced background works that have contributed to modern management theories.[15][need quotation to
verify]
Some theorists have cited ancient military texts as providing lessons for civilian managers. For
example, Chinese general Sun Tzu in his 6th-century BC work The Art of War recommends[citation
needed]
(when re-phrased in modern terminology) being aware of and acting on strengths and
weaknesses of both a manager's organization and a foe's.[15][need quotation to verify] The writings of
influential Chinese Legalist philosopher Shen Buhaimay be considered[by whom?] to embody a rare
premodern example of abstract theory of administration.[16]
Various ancient and medieval civilizations produced "mirrors for princes" books, which aimed to
advise new monarchs on how to govern. Plato described job specialization in 350 BC,
and Alfarabi listed several leadership traits in AD 900.[17] Other examples include the
Indian Arthashastra by Chanakya (written around 300 BC), and The Prince by Italian author Niccolò
Machiavelli (c. 1515).[18]
Further information: Mirrors for princes
Written in 1776 by Adam Smith, a Scottish moral philosopher, The Wealth of Nations discussed
efficient organization of work through division of labour.[18] Smith described how changes in
processes could boost productivity in the manufacture of pins. While individuals could produce 200
pins per day, Smith analyzed the steps involved in manufacture and, with 10 specialists, enabled
production of 48,000 pins per day.[18][need quotation to verify]

19th century[edit]
Classical economists such as Adam Smith (1723–1790) and John Stuart Mill (1806–1873) provided
a theoretical background to resource allocation, production, and pricing issues. About the same time,
innovators like Eli Whitney (1765–1825), James Watt (1736–1819), and Matthew Boulton (1728–
1809) developed elements of technical production such as standardization, quality-
control procedures, cost-accounting, interchangeability of parts, and work-planning. Many of these
aspects of management existed in the pre-1861 slave-based sector of the US economy. That
environment saw 4 million people, as the contemporary usages had it, "managed" in profitable quasi-
mass production.
Salaried managers as an identifiable group first became prominent in the late 19th century.[19]

20th century[edit]
By about 1900 one finds managers trying to place their theories on what they regarded as a
thoroughly scientific basis (see scientism for perceived limitations of this belief). Examples
include Henry R. Towne's Science of management in the 1890s, Frederick Winslow Taylor's The
Principles of Scientific Management (1911), Lillian Gilbreth's Psychology of
Management (1914),[20] Frank and Lillian Gilbreth's Applied motion study (1917), and Henry L.
Gantt's charts (1910s). J. Duncan wrote the first college management-textbook in 1911. In
1912 Yoichi Ueno introduced Taylorism to Japan and became the first management consultant of
the "Japanese-management style". His son Ichiro Ueno pioneered Japanese quality assurance.
The first comprehensive theories of management appeared around 1920.[citation needed] The Harvard
Business School offered the first Master of Business Administration degree (MBA) in 1921. People
like Henri Fayol (1841–1925) and Alexander Church (1866-1936) described the various branches of
management and their inter-relationships. In the early-20th century, people like Ordway Tead (1891–
1973), Walter Scott (1869-1955) and J. Mooney applied the principles of psychology to
management. Other writers, such as Elton Mayo (1880–1949), Mary Parker Follett (1868–
1933), Chester Barnard (1886–1961), Max Weber (1864–1920), who saw what he called the
"administrator" as bureaucrat,[21] Rensis Likert (1903–1981), and Chris Argyris (born 1923)
approached the phenomenon of management from a sociological perspective.
Peter Drucker (1909–2005) wrote one of the earliest books on applied management: Concept of the
Corporation (published in 1946). It resulted from Alfred Sloan(chairman of General Motors until
1956) commissioning a study of the organisation. Drucker went on to write 39 books, many in the
same vein.
H. Dodge, Ronald Fisher (1890–1962), and Thornton C. Fry introduced statistical techniques into
management-studies. In the 1940s, Patrick Blackett worked in the development of the applied-
mathematics science of operations research, initially for military operations. Operations research,
sometimes known as "management science" (but distinct from Taylor's scientific management),
attempts to take a scientific approach to solving decision-problems, and can apply directly to multiple
management problems, particularly in the areas of logistics and operations.
Some of the more recent developments include the Theory of Constraints, management by
objectives, reengineering, Six Sigma, the Viable system model, and various information-technology-
driven theories such as agile software development, as well as group-management theories such
as Cog's Ladder.
As the general recognition of managers as a class solidified during the 20th century and gave
perceived practitioners of the art/science of management a certain amount of prestige, so the way
opened for popularised systems of management ideas to peddle their wares. In this context
many management fads may have had more to do with pop psychology than with scientific theories
of management.
Business management includes the following branches:

1. financial management
2. human resource management
 3. information technology management (responsible for management information systems)
4. marketing management
5. operations management and production management
6. strategic management
21st century[edit]
In the 21st century observers find it increasingly difficult to subdivide management into functional
categories in this way. More and more processes simultaneously involve several categories. Instead,
one tends to think in terms of the various processes, tasks, and objects subject to management.[citation
needed]

Branches of management theory also exist relating to nonprofits and to government: such as public
administration, public management, and educational management. Further, management programs
related to civil-society organizations have also spawned programs in nonprofit management
and social entrepreneurship.
Note that many of the assumptions made by management have come under attack from business-
ethics viewpoints, critical management studies, and anti-corporate activism.
As one consequence, workplace democracy (sometimes referred to as Workers' self-management)
has become both more common and more advocated, in some places distributing all management
functions among workers, each of whom takes on a portion of the work. However, these models
predate any current political issue, and may occur more naturally than does a command hierarchy.
All management embraces to some degree a democratic principle—in that in the long term, the
majority of workers must support management. Otherwise, they leave to find other work or go on
strike. Despite the move toward workplace democracy, command-and-control organization
structures remain commonplace as de facto organization structures. Indeed, the entrenched nature
of command-and-control is evident in the way that recent[when?] layoffs have been conducted with
management ranks affected far less than employees at the lower levels.[citation needed] In some cases,
management has even rewarded itself with bonuses after laying off lower-level workers.[22]
According to leadership-academic Manfred F.R. Kets de Vries, a contemporary senior-management
team will almost inevitably have some personality disorders.[23]

Topics[edit]
Basics[edit]
According to Fayol, management operates through five basic functions: planning, organizing,
coordinating, commanding, and controlling.

 Planning: Deciding what needs to happen in the future and generating plans for action (deciding
in advance).
 Organizing (or staffing): Making sure the human and nonhuman resources are put into place.[24]
 Coordinating: Creating a structure through which an organization's goals can be accomplished.
 Commanding (or leading): Determining what must be done in a situation and getting people to
do it.
 Controlling: Checking progress against plans.
Basic roles[edit]
 Interpersonal: roles that involve coordination and interaction with employees
Figurehead, leader
 Informational: roles that involve handling, sharing, and analyzing information
Nerve centre, disseminator

 Decision: roles that require decision-making

Entrepreneur, negotiator, allocator

Skills[edit]
Management skills include:

 political: used to build a power base and to establish connections

 conceptual: used to analyze complex situations
 interpersonal: used to communicate, motivate, mentor and delegate
 diagnostic: ability to visualize appropriate responses to a situation
 leadership: ability to lead and to provide guidance to a specific group
 technical: expertise in one's particular functional area.
 behavioral: perception towards others.
Implementation of policies and strategies[edit]
 All policies and strategies must be discussed with all managerial personnel and staff.
 Managers must understand where and how they can implement their policies and strategies.
 A plan of action must be devised for each department.
 Policies and strategies must be reviewed regularly.
 Contingency plans must be devised in case the environment changes.
 Top-level managers should carry out regular progress assessments.
 The business requires team spirit and a good environment.
 The missions, objectives, strengths and weaknesses of each department must be analyzed to
determine their roles in achieving the business's mission.
 The forecasting method develops a reliable picture of the business' future environment.
 A planning unit must be created to ensure that all plans are consistent and that policies and
strategies are aimed at achieving the same mission and objectives.

Policies and strategies in the planning process[edit]

 They give mid and lower-level managers a good idea of the future plans for each department in
an organization.
 A framework is created whereby plans and decisions are made.
 Mid and lower-level management may add their own plans to the business's strategies.

Levels[edit]
Most organizations have three management levels: first-level, middle-level, and top-level managers.
First-line managers are the lowest level of management and manage the work of nonmanagerial
individuals who are directly involved with the production or creation of the organization's products.
First-line managers are often called supervisors, but may also be called line managers, office
managers, or even foremen. Middle managers include all levels of management between the first-
line level and the top level of the organization. These managers manage the work of first-line
managers and may have titles such as department head, project leader, plant manager, or division
manager. Top managers are responsible for making organization-wide decisions and establishing
the plans and goals that affect the entire organization. These individuals typically have titles such as
executive vice president, president, managing director, chief operating officer, chief executive officer,
or chairman of the board.
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.[citation needed]

Top[edit]
The top or senior layer of management consists of the board of directors (including non-executive
directors and executive directors), president, vice-president, CEOsand other members of the C-
level executives. Different organizations have various members in their C-suite, which may include
a Chief Financial Officer, Chief Technology Officer, and so on. They are responsible for controlling
and overseeing the operations of the entire organization. They set a "tone at the top" and
develop strategic plans, company policies, and make decisions on the overall direction of the
organization. In addition, top-level managers play a significant role in the mobilization of outside
resources. Senior managers are accountable to the shareholders, the general public and to public
bodies that oversee corporations and similar organizations. Some members of the senior
management may serve as the public face of the organization, and they may make speeches to
introduce new strategies or appear in marketing.
The board of directors is typically primarily composed of non-executives who owe a fiduciary duty to
shareholders and are not closely involved in the day-to-day activities of the organization, although
this varies depending on the type (e.g., public versus private), size and culture of the organization.
These directors are theoretically liable for breaches of that duty and typically insured under directors
and officers liability insurance. Fortune 500 directors are estimated to spend 4.4 hours per week on
board duties, and median compensation was $212,512 in 2010. The board sets corporate strategy,
makes major decisions such as major acquisitions,[25] and hires, evaluates, and fires the top-level
manager (Chief Executive Officer or CEO). The CEO typically hires other positions. However, board
involvement in the hiring of other positions such as the Chief Financial Officer (CFO) has
increased.[26] In 2013, a survey of over 160 CEOs and directors of public and private companies
found that the top weaknesses of CEOs were "mentoring skills" and "board engagement", and 10%
of companies never evaluated the CEO.[27] The board may also have certain employees
(e.g., internal auditors) report to them or directly hire independent contractors; for example, the
board (through the audit committee) typically selects the auditor.
Helpful skills of top management vary by the type of organization but typically include[28] a broad
understanding of competition, world economies, and politics. In addition, the CEO is responsible for
implementing and determining (within the board's framework) the broad policies of the organization.
Executive management accomplishes the day-to-day details, including: instructions for preparation
of department budgets, procedures, schedules; appointment of middle level executives such as
department managers; coordination of departments; media and governmental relations; and
shareholder communication.

Middle[edit]
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.
Middle management is the midway management of a categorized organization, being secondary to
the senior management but above the deepest levels of operational members. An operational
manager may be well-thought-out by middle management, or may be categorized as non-
management operate, liable to the policy of the specific organization. Efficiency of the middle level is
vital in any organization, since they bridge the gap between top level and bottom level staffs.
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. They also make
decision and share ideas with top managers.
Lower[edit]
Lower managers include supervisors, section leaders, forepersons and team leaders. They focus on
controlling and directing regular employees. They are usually responsible for assigning employees'
tasks, guiding and supervising employees on day-to-day activities, ensuring the quality and quantity
of production and/or service, making recommendations and suggestions to employees on their work,
and channeling employee concerns that they cannot resolve to mid-level managers or other
administrators. First-level or "front line" managers also act as role models for their employees. In
some types of work, front line managers may also do some of the same tasks that employees do, at
least some of the time. For example, in some restaurants, the front line managers will also serve
customers during a very busy period of the day.
Front-line managers typically provide:

 Training for new employees

 Basic supervision
 Motivation
 Performance feedback and guidance
Some front-line managers may also provide career planning for employees who aim to rise within
the organization.

Training[edit]
Colleges and universities around the world offer bachelor's degrees, graduate degrees, diplomas
and certificates in management, generally within their colleges of business, business schools or
faculty of management but also in other related departments. In the 2010s, there has been an
increase in online management education and training in the form of electronic educational
technology ( also called e-learning). Online education has increased the accessibility of
management training to people who do not live near a college or university, or who cannot afford to
travel to a city where such training is available.
While some professions require academic credentials in order to work in the profession (e.g., law,
medicine, engineering, which require, respectively the Bachelor of Law, Doctor of
Medicine and Bachelor of Engineering degrees), management and administration positions do not
necessarily require the completion of academic degrees. Some well-known senior executives in the
US who did not complete a degree include Steve Jobs, Bill Gates and Mark Zuckerberg. However,
many managers and executives have completed some type of business or management training,
such as a Bachelor of Commerce or a Master of Business Administrationdegree. Some major
organizations, including companies, not-for-profit organizations and governments, require applicants
to managerial or executive positions to hold at minimum Bachelor's degree in a field related to
administration or management, or in the case of business jobs, a Bachelor of Commerce or a similar
degree.

United States of America[edit]

Undergraduate[edit]
At the undergraduate level, the most common business program is the Bachelor of
Commerce (B.Com.). However to manage technological areas, you need an undergraduate degree
in a STEM area as preferred to Defense Acquisition University guidelines. This is typically a four-
year program that includes courses that give students an overview of the role of managers in
planning and directing within an organization. Course topics include accounting, financial
management, statistics, marketing, strategy, and other related areas. There are many other
undergraduate degrees that include the study of management, such as Bachelor of Arts degrees
with a major in business administration or management and Bachelor of Public Administration
(B.P.A), a degree designed for individuals aiming to work as bureaucrats in the government jobs.
Many colleges and universities also offer certificates and diplomas in business administration or
management, which typically require one to two years of full-time study.
Graduate[edit]
At the graduate level students aiming at careers as managers or executives may choose to
specialize in major subareas of management or business administration such
as entrepreneurship, human resources, international business, organizational
behavior, organizational theory, strategic management,[29] accounting, corporate finance,
entertainment, global management, healthcare management, investment management,
sustainability and real estate. A Master of Business Administration(MBA) is the most popular
professional degree at the master's level and can be obtained from many universities in the United
States. MBA programs provide further education in management and leadership for graduate
students. Other master's degrees in business and management include Master of
Management (MM) and the Master of Science (M.Sc.) in business administration or management,
which is typically taken by students aiming to become researchers or professors. There are also
specialized master's degrees in administration for individuals aiming at careers outside of business,
such as the Master of Public Administration (MPA) degree (also offered as a Master of Arts in Public
Administration in some universities), for students aiming to become managers or executives in the
public service and the Master of Health Administration, for students aiming to become managers or
executives in the health care and hospital sector.
Management doctorates are the most advanced terminal degrees in the field of business and
management. Most individuals obtaining management doctorates take the programs to obtain the
training in research methods, statistical analysis and writing academic papers that they will need to
seek careers as researchers, senior consultants and/or professors in business administration or
management. There are three main types of management doctorates: the Doctor of
Management (D.M.), the Doctor of Business Administration (D.B.A.), and the Ph.D. in Business
Administration or Management. In the 2010s, doctorates in business administration and
management are available with many specializations.

Good practices[edit]
While management trends can change so fast, the long term trend in management has been defined
by a market embracing diversity and a rising service industry. Managers are currently being trained
to encourage greater equality for minorities and women in the workplace, by offering increased
flexibility in working hours, better retraining, and innovative (and usually industry-specific)
performance markers. Managers destined for the service sector are being trained to use unique
measurement techniques, better worker support and more charismatic leadership styles.[30] Human
resources finds itself increasingly working with management in a training capacity to help collect
management data on the success (or failure) of management actions with employees.[31]