MANAGEMENT

According to Harold Koontz, “Management is an art of getting things done through and
with the people in formally organized groups. It is an art of creating an environment in
which people can perform and individuals and can co-operate towards attainment of
group goals”.

According to F.W. Taylor, “Management is an art of knowing what to do, when to do and
see that it is done in the best and cheapest way”.

LEVELS OF MANAGEMENT

Top Level of Management

It consists of board of directors, chief executive or managing director. The top

management is the ultimate source of authority and it manages goals and policies
for an enterprise. It devotes more time on planning and coordinating functions.

The role of the top management can be summarized as follows -

a. Top management lays down the objectives and broad policies of the
enterprise.
 b. It issues necessary instructions for preparation of department budgets,
procedures, schedules etc.
c. It prepares strategic plans & policies for the enterprise.
d. It appoints the executive for middle level i.e. departmental managers.
e. It controls & coordinates the activities of all the departments.
f. It is also responsible for maintaining a contact with the outside world.
g. It provides guidance and direction.
h. The top management is also responsible towards the shareholders for the
performance of the enterprise.

Middle Level of Management

The branch managers and departmental managers constitute middle level. They
are responsible to the top management for the functioning of their department.
They devote more time to organizational and directional functions. In small
organization, there is only one layer of middle level of management but in big
enterprises, there may be senior and junior middle level management. Their role
can be emphasized as -

i. They execute the plans of the organization in accordance with the policies
and directives of the top management.
j. They make plans for the sub-units of the organization.
k. They participate in employment & training of lower level management.
l. They interpret and explain policies from top level management to lower
level.
m. They are responsible for coordinating the activities within the division or
department.
n. It also sends important reports and other important data to top level
management.
o. They evaluate performance of junior managers.
p. They are also responsible for inspiring lower level managers towards
better performance.

Lower Level of Management

Lower level is also known as supervisory / operative level of management. It

consists of supervisors, foreman, section officers, superintendent etc. According
to R.C. Davis, “Supervisory management refers to those executives whose work
has to be largely with personal oversight and direction of operative employees”.
 In other words, they are concerned with direction and controlling function of
management. Their activities include -

q. Assigning of jobs and tasks to various workers.

r. They guide and instruct workers for day to day activities.
s. They are responsible for the quality as well as quantity of production.
t. They are also entrusted with the responsibility of maintaining good
relation in the organization.
u. They communicate workers problems, suggestions, and recommendatory
appeals etc to the higher level and higher level goals and objectives to the
workers.
v. They help to solve the grievances of the workers.
w. They supervise & guide the sub-ordinates.
x. They are responsible for providing training to the workers.
y. They arrange necessary materials, machines, tools etc for getting the
things done.
z. They prepare periodical reports about the performance of the workers.
aa. They ensure discipline in the enterprise.
bb. They motivate workers.
cc. They are the image builders of the enterprise because they are in direct
contact with the workers.

OBJECTIVES OF MANAGEMENT

The main objectives of management are:

1. Getting Maximum Results with Minimum Efforts - The main objective of

management is to secure maximum outputs with minimum efforts & resources.
Management is basically concerned with thinking & utilizing human, material &
financial resources in such a manner that would result in best combination. This
combination results in reduction of various costs.
2. Increasing the Efficiency of factors of Production - Through proper utilization
of various factors of production, their efficiency can be increased to a great extent
which can be obtained by reducing spoilage, wastages and breakage of all kinds,
this in turn leads to saving of time, effort and money which is essential for the
growth & prosperity of the enterprise.
3. Maximum Prosperity for Employer & Employees - Management ensures
smooth and coordinated functioning of the enterprise. This in turn helps in
providing maximum benefits to the employee in the shape of good working
 condition, suitable wage system, incentive plans on the one hand and higher
profits to the employer on the other hand.
4. Human betterment & Social Justice - Management serves as a tool for the
upliftment as well as betterment of the society. Through increased productivity &
employment, management ensures better standards of living for the society. It
provides justice through its uniform policies.

IMPORTANCE OF MANAGEMENT

1. It helps in Achieving Group Goals - It arranges the factors of production,

assembles and organizes the resources, integrates the resources in effective
manner to achieve goals. It directs group efforts towards achievement of pre-
determined goals. By defining objective of organization clearly there would be no
wastage of time, money and effort. Management converts disorganized resources
of men, machines, money etc. into useful enterprise. These resources are
coordinated, directed and controlled in such a manner that enterprise work
towards attainment of goals.

2. Optimum Utilization of Resources - Management utilizes all the physical &

human resources productively. This leads to efficacy in management.
Management provides maximum utilization of scarce resources by selecting its
best possible alternate use in industry from out of various uses. It makes use of
experts, professional and these services leads to use of their skills, knowledge,
and proper utilization and avoids wastage. If employees and machines are
producing its maximum there is no under employment of any resources.

3. Reduces Costs - It gets maximum results through minimum input by proper

planning and by using minimum input & getting maximum output. Management
uses physical, human and financial resources in such a manner which results in
best combination. This helps in cost reduction.

4. Establishes Sound Organization - No overlapping of efforts (smooth and

coordinated functions). To establish sound organizational structure is one of the
objective of management which is in tune with objective of organization and for
fulfillment of this, it establishes effective authority & responsibility relationship
i.e. who is accountable to whom, who can give instructions to whom, who are
superiors & who are subordinates. Management fills up various positions with
right persons, having right skills, training and qualification. All jobs should be
cleared to everyone.
 5. Establishes Equilibrium - It enables the organization to survive in changing
environment. It keeps in touch with the changing environment. With the change is
external environment, the initial co-ordination of organization must be changed.
So it adapts organization to changing demand of market / changing needs of
societies. It is responsible for growth and survival of organization.

6. Essentials for Prosperity of Society - Efficient management leads to better

economical production which helps in turn to increase the welfare of people.
Good management makes a difficult task easier by avoiding wastage of scarce
resource. It improves standard of living. It increases the profit which is beneficial
to business and society will get maximum output at minimum cost by creating
employment opportunities which generate income in hands. Organization comes
with new products and researches beneficial for society.

FUNCTIONS OF MANAGEMENT

Planning

It is the basic function of management. It deals with chalking out a future course
of action & deciding in advance the most appropriate course of actions for
achievement of pre-determined goals. According to KOONTZ, “Planning is
deciding in advance - what to do, when to do & how to do. It bridges the gap from
where we are & where we want to be”. A plan is a future course of actions. It is
an exercise in problem solving & decision making. Planning is determination of
courses of action to achieve desired goals. Thus, planning is a systematic thinking
about ways & means for accomplishment of pre-determined goals. Planning is
necessary to ensure proper utilization of human & non-human resources. It is all
pervasive, it is an intellectual activity and it also helps in avoiding confusion,
uncertainties, risks, wastages etc.

Organizing

It is the process of bringing together physical, financial and human resources and
developing productive relationship amongst them for achievement of
organizational goals. According to Henry Fayol, “To organize a business is to
provide it with everything useful or its functioning i.e. raw material, tools, capital
and personnel’s”. To organize a business involves determining & providing
human and non-human resources to the organizational structure. Organizing as a
process involves:
 • Identification of activities.
• Classification of grouping of activities.
• Assignment of duties.
• Delegation of authority and creation of responsibility.
• Coordinating authority and responsibility relationships.

Staffing

It is the function of manning the organization structure and keeping it manned.

Staffing has assumed greater importance in the recent years due to advancement
of technology, increase in size of business, complexity of human behavior etc.
The main purpose o staffing is to put right man on right job i.e. square pegs in
square holes and round pegs in round holes. According to Kootz & O’Donell,
“Managerial function of staffing involves manning the organization structure
through proper and effective selection, appraisal & development of personnel to
fill the roles designed un the structure”. Staffing involves:

• Manpower Planning (estimating man power in terms of searching, choose

the person and giving the right place)
• Recruitment, selection & placement
• Training & development
• Remuneration
• Performance appraisal
• Promotions & transfer

Directing

It is that part of managerial function which actuates the organizational methods to

work efficiently for achievement of organizational purposes. It is considered life-
spark of the enterprise which sets it in motion the action of people because
planning, organizing and staffing are the mere preparations for doing the work.
Direction is that inert-personnel aspect of management which deals directly with
influencing, guiding, supervising, motivating sub-ordinate for the achievement of
organizational goals. Direction has following elements:

• Supervision
• Motivation
• Leadership
• Communication

Supervision- implies overseeing the work of subordinates by their superiors. It is

the act of watching & directing work & workers.
 Motivation- means inspiring, stimulating or encouraging the sub-ordinates with
zeal to work. Positive, negative, monetary, non-monetary incentives may be used
for this purpose.

Leadership- may be defined as a process by which manager guides and

influences the work of subordinates in desired direction.

Communications- is the process of passing information, experience, opinion etc

from one person to another. It is a bridge of understanding.

Controlling

It implies measurement of accomplishment against the standards and correction of

deviation if any to ensure achievement of organizational goals. The purpose of
controlling is to ensure that everything occurs in conformities with the standards.
An efficient system of control helps to predict deviations before they actually
occur. According to Theo Haimann, “Controlling is the process of checking
whether or not proper progress is being made towards the objectives and goals
and acting if necessary, to correct any deviation”. According to Koontz &
O’Donell, “Controlling is the measurement & correction of performance activities
of subordinates in order to make sure that the enterprise objectives and plans
desired to obtain them as being accomplished”. Therefore controlling has
following steps:

α. Establishment of standard performance.

β . Measurement of actual performance.
χ . Comparison of actual performance with the standards and finding out
deviation if any.
δ . Corrective action.

Management Skills

There are three basic management skills: technical, human and conceptual. A technical
skill is the ability to use tools, techniques, and specialized knowledge to carry out a
method, process, or procedure. Human skills are used to build positive interpersonal
relationships, solve human relations problems, build acceptance of one's co-workers, and
relate to them in a way that their behavior is consistent with the needs of the organization.
Conceptual skills involve the ability to see the organization as a whole and to solve
problems in a way that benefits the entire organization. Analytical, creative and intuitive
talents make up the manager's conceptual skills.