MEANING OF MANAGEMENT

Management refers to the dynamic process of getting things done with the aim of achieving
goals of an organization effectively and efficiently. It is the act of creating and maintaining a
business environment, wherein, the members of the organization can work together to
achieve the business objectives effectively and efficiently.

The process in management refers to all the activities and functions that management
performs in getting things done. The functions include planning, organizing, staffing,
directing and controlling. Effectiveness in management is concerned with doing the right
task, completing activities and achieving goals. It is concerned with end results. Efficiency
means doing the task correctly at minimum cost. Efficiency is achieved when the more
benefit or output is obtained by using lesser amount of time, money and effort.

CHARACTERISTICS OF MANAGEMENT

The following are the important features or characteristics of the process of management:

1. Management is a Goal-oriented Process:

Management is meant for achieving organizational goals. Organizational goals vary between
different organizations. The goal of a trading concern is to earn maximum profit, whereas,
that of a service organization is to provide quality service. Management uses the efforts of all
individuals in the organization towards achieving these goals.

2. Management is all pervasive:

Management is a universal phenomenon. The activities involved in managing an enterprise
are common to all organizations, whether economic , social or political. Therefore, the
concept of management used in any business organization will be the same.

3. Management is multi dimensional: Management is a complex activity that has three

main dimensions. These are:

a. Management of work: Every organization exists to perform some Work. For example,
school provides education, whereas, factory produces goods. Management aims to
ensure that this work is performed effectively and efficiently.

b. Management of people: Human resource or workforce is the most important asset of

any organization. Management is ‘getting work done through people'. Managing
people has two dimensions of (i) dealing employees as individuals with diverse
needs; and (ii) dealing individuals as a group of people. The main task of
management is to make people work towards achieving the goals of the organization.

c. Management of operations: Inorder to survive, any business organization has to deal

with some basic products or services. This requires a production process in which
resource are used for getting the desired output. Management looks after this
production process. Hence, management of operations is linked to management of
work and people.
4. Management is a continuous process:
Management is a continuous or never ending function. It is concerned with constantly
identifying the problems and solving them by taking appropriate actions. Thus, managerial
functions such as planning, organizing, staffing, directing and controlling are performed by all
managers simultaneously on a continuous basis.

5. Management is a group activity:

An organization consists of diverse individuals with different needs. Every member joins the
organization for different purposes. But they have to work for achieving the common
organizational goals. This requires team work. Management helps people to realize their
individual as well as organizational goals through group efforts.

6. Management is a dynamic function: Management is a dynamic function and has to

adapt itself to the changing environment. An organization functions in social, economic,
political and legal environment. In order to survive in the market, an organization has to
change its goals according to the needs of the environment.

7. Management is an intangible force: Management cannot be seen, but its presence is

felt in the way the organization functions. The effect of good management is noticeable in an
organization where targets are met to plans. In such organizations employees are happy and
satisfied and there is orderliness instead of chaos.

8. Management is a composite process:

Management consists of a series of functions which must be performed in a proper
sequence. These functions are interdependent on each other.

DEFINITION OF MANAGEMENT
Management is a distinct process consisting of planning, organizing, actuating and
controlling, all of which are performed to determine and accomplish the objectives by the use
of human beings and other resources.
- defined by George R.Terry

LEVELS OF MANAGEMENT
The term “Levels of Management’ refers to a line of demarcation between various
managerial positions in an organization. The number of levels in management
increases when the size of the business and work force increases and vice versa.
Every organisation consists of number of persons, who are placed at different positions to
perform different responsibilities. To be able to fulfil these responsibilities they are assigned
a certain amount of authority or the right to take decisions. This authority - responsibility
relationship binds individuals as superiors and subordinates. It leads to the formation of
different levels of management. The hierarchy of management positions from top to bottom
is called levels of management.

There are 3 levels in the ranking order of an establishment and they are:
 1. Top-level management
2. Middle-level management
3. Lower-level management

1. TOP-LEVEL MANAGEMENT
Top level management consists of senior most executives of the organisation who are
responsible for framing business policies and taking major decisions. 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). It includes group of crucial persons essential for leading and
directing the efforts of other people. The managers working at this level have
maximum authority.

Functions of top-level management

1. Determining the objectives of the enterprise. The top level managers formulate
the main objectives of the organisation. They form long term as well as short term
objectives.

2. Framing of plans and policies. The top level managers also frame the plans and
policies to achieve the set objectives.
3. Organising activities to be performed by persons working at middle level. The
top level management assigns jobs to different individuals working at middle level.

4. Assembling all the resources such as finance, fixed assets etc. The top
level management arranges all the finance required to carry on day to day
activities.

5. Responsible for welfare and survival of the organisation. They make plan
to run the organisation smoothly and successfully.

6. Liaison with outside world, for example, meeting Government officials

etc. The top level management remains in contact with government,
competitors, suppliers, media etc.
 7. Welfare and survival of the organisation.

2. MIDDLE LEVEL MANAGEMENT

Middle level of management is subordinate to top level and superior to lower level
management. This level of management consists of departmental heads such as purchase
department head, sales department head, finance manager, marketing manager,
executive officer, plant superintendent, etc. People of this group are responsible for
executing the plans and policies made by top level. They act as a linking pin between top
and lower level management. They also exercise the functions of top
level for their department as they make plans and policies for their department,
organise and collect the resources etc.

Functions of Middle-level Management

1. Interpretation of policies framed by top management to lower level.

2. Organising the activities of their department for executing the plans and
policies.
3. Finding out or recruiting/selecting and appointing the required employees for
their department.
4. Motivating the persons to perform to their best ability.
5. Controlling and instructing the employees, preparing their performance reports
etc.
6. Cooperate with other departments for smooth functioning.
7. Implementing the plans framed by top level.

3. LOWER LEVEL OR SUPERVISORY OR OPERATIONAL MANAGEMENT

It is the lowest level in the hierarchy of management with limited authority and
responsibility. This level plays a very important role as it has direct contact with workers
Operational management consists of supervisors, foremen, superintendent, section officers,
inspectors etc. Managers of this group actually carry on the work or
perform the activities according to the plans of top and middle level management.
Their authority is limited. The quality and quantity of output depends upon the
efficiency of this level of managers. They pass on the instruction to workers and
report to the middle level management. They are also responsible for maintaining
discipline among the workers.

Functions of lower level Management

1. Representing the problems or grievances of workers before the middle level

management.

2. Maintaining good working conditions and developing healthy relations between

superior and subordinate.
 3. Helping the middle level management in recruiting, selecting and appointing
the workers.

4. Communicating with workers and welcoming of their suggestions.

5. They try to maintain precise standard of quality and ensure steady flow of
output.

6. They are responsible for boosting the morale of the workers and developing the
team spirit in them. They motivate ‘the employees and boost their morale.

7. Minimising the wastage of materials.

MANAGEMENT VS. ADMINISTRATION

Management and administration are closely related concepts within an organisation, but they
have distinct roles and functions.

MANAGEMENT
Management is defined as an act of managing people and their work, for
achieving a common goal by using the organization’s resources. It
creates an environment under which the manager and his subordinates
can work together for the attainment of group objective. It is a group of
people who use their skills and talent in running the complete system of
the organization. It is an activity, a function, a process, a discipline and
much more.
Planning, organizing, leading, motivating, controlling, coordination and
decision making are the major activities performed by the management.
Management brings together 5M’s of the organization, i.e. Men,
Material, Machines, Methods, and Money. It is a result oriented activity,
which focuses on achieving the desired output.

ADMINISTRATION
The administration is a systematic process of administering the
management of a business organization, an educational institution like
school or college, government office or any nonprofit organization. The
main function of administration is the formation of plans, policies, and
procedures, setting up of goals and objectives, enforcing rules and
regulations, etc.
Administration lays down the fundamental framework of an
organization, within which the management of the organization
functions.
The nature of administration is bureaucratic. It is a broader term as it
involves forecasting, planning, organizing and decision-making
functions at the highest level of the enterprise. Administration represents
the top layer of the management hierarchy of the organization. These top
level authorities are the either owners or business partners who invest
their capital in starting the business. They get their returns in the form of
profits or as a dividend.

DIFFERENCE BETWEEN MANAGEMENT AND ADMINISTRATION

BASIS MANAGEMENT ADMINISTRATION

Meaning Management encompasses Administration involves

the process of strategically overseeing an organisation’s
planning, organizing day-to-day operations,
resources, coordinating ensuring they run smoothly
efforts, directing activities, by implementing policies
and maintaining control and decisions set by
within an organization to management.
achieve its intended goals
and objectives.

Focus Management is primarily Administration focuses on

concerned with planning, establishing policies,
organizing, directing, and guidelines, and procedures
controlling resources to to ensure the smooth
achieve organizational operation of the
goals. organization.

Scope Management is a broader Administration is a narrower

term that encompasses term, often associated with
various functions such as the implementation of
planning, organizing, policies, rules, and
 staffing, leading, and regulations set by the
controlling. management.

Key Person Manager is the key person Administrator is the key

in the case of management. person in the case of
administration.

Decision-Making Managers make strategic Administrators make

decisions related to setting decisions related to
goals, formulating plans, implementing policies,
and allocating resources. procedures, and guidelines
set by the management.

Time Horizon Managers focus on both Administrators tend to have

short-term and long-term a longer-term perspective,
goals, with an emphasis on aiming to establish enduring
adapting to changing structures and processes.
circumstances.

Nature It is more dynamic, action- It is more concerned with

oriented, and focused on establishing a stable
achieving objectives through framework, ensuring
efficient resource utilization. adherence to rules, and
maintaining order within the
organisation.

Function Management involves Administration involves

guiding, directing, and establishing policies, rules,
leading employees toward and regulations that guide
achieving organizational the actions of employees
goals. and ensure organisational
efficiency.

Role The role of management is The role of administration is

executive in nature. decisive in nature.

DIFFERENCE ON THE BASIS OF FUNCTIONS

ADMINISTRATION MANAGEMENT

Administration is a decision taking function. Management is a executive function.

Administration is a thinking process. Management is a doing function.

Administration lays down broad objectives, Management gets things done through the
plans and policies. efforts of other people to attain the
objectives.

Administration decides what is to be done Management decides who should do it and

and when to be done. how it should be done.

Administration is performed at higher Administration is done at supervisory or

levels. lower levels.
DIFFERENCE ON THE BASIS OF USAGE

ADMINISTRATION MANAGEMENT

Administration is used in the case of non- The term management is commonly used in
business organizations. ex: government, business enterprises.
social, cultural organizations.

Administration refers to owners of the Management refers to the employees of the

organization who get a share in the profit. organisation who get remuneration in the
form of salary

Administrations are influenced by public Managers are influenced by their own

social and religious customs. opinions and beliefs.

NATURE OF MANAGEMENT
Management is as old as civilisation and it has developed gradually along with the
development of trade and commerce. Today management has different meanings in
different situations. Over a period of time, it has grown into a dynamic subject. It may be
considered as an art, science, both art and science or as a profession. Hence, the nature of
management may be explained through the following:

MANAGEMENT AS A SCIENCE
Science is a systematic body of knowledge pertaining to a specific field of study that
contains general facts which explains a phenomenon. It establishes cause and effect
relationship between two or more variables and underlines the principles governing their
relationship. These principles are developed through scientific method of observation
and verification through testing. In the words of Keynes, "Science is a systematised body
of knowledge which establishes relationship between cause and effect." The essential
features of science are as follows:
1. It is a systematised body of knowledge that uses scientific methods for
observation.
2. The principles are evolved on the, basis of continued observation.
3. The principles are exact and have universal applicability without any limitation
4. The principles establish a cause and effect relationship betweer various factors.
5. The validity of scientific principles can be verified and they provide a reliable
basis for predicting future events

Science is characterized by following main features:

● Systematised body of knowledge: Management is viewed as a science as it is

an organised body of knowledge built up by management practitioners, thinkers
and philosophers over a period of years "Management science is a body of
systematised knowledge accumulated and accepted with reference to the
understanding of general truths concerning management." The principles of
management make use of scientific methods for observation. Frederick W.
 Taylor, the Father of Scientific Management applied scientific techniques to
studies of planning. organising, staffing, motivating, etc.

● Principles based on experimentation: As applied to management, the

principles of management have been developed after continued observations.
The knowledge of management has been acquired through continuous and
vigorous efforts of many theorists and practitioners over a period of years.

● Universal validity: Scientific principles represent basic truths and can be applied
in all situations and at all times , i.e., `they have universal application. In the field
of management also, this knowledge has been accumulated and accepted with
reference to general truths. There are certain fundamental principles of
management which can be universally applied. In the words of Taylor, "The
fundamental principles of management are applicable to all human activities from
our simplest individual acts to the working of our great corporations.”

● Cause and effect relationship: Scientific principles establish cause and effect
relationship between various factors. When applied to management, the principles of
management also establish cause and effect relationship, .g, poor planning and plant
layout cause low productivity.

● Validity and predictability: Mere knowledge or collection of facts is not science. It is

only when the knowledge so gathered can be verified. it becomes science. The principles
of management can also be verified for their validity. The principles of management have
been put to several tests and found to be valid. For example, a subordinate put under
one boss will show better results, than subordinate who has to follow two or more e
bosses. Further, the principles of management by finding cause and effect relationship
can serve reliable basis for predicting further events.

MANAGEMENT AS AN ART
Art implies application of knowledge & skill to trying about desired results. An art may be
defined as personalized application of general theoretical principles for achieving best
possible result.
Art has the following characteristics:

● Personal Skill: Although theoretical base may be same for every artist, but each one
has his own style and approach towards his job. That is why the level of success and
quality of performance differs from one person to another. Every manager has his own
way of managing things based on his knowledge, experience and personality.

● Practical Knowledge: Every art requires practical knowledge therefore learning of

theory is not sufficient. It is very important to know practical application of theoretical
principles. A manager can never be successful just by obtaining degree or diploma in
management; he must have also know how to apply various principles in real situations
by functioning in capacity of manager.
● Result oriented approach: Every art is result oriented as it seeks to achieve concrete
results. In the same manner, management is also directed towards accomplishment of
pre-determined goals. Managers use various resources like men, money, material,
machinery & methods to promote growth of an organization.

● Regular Practice: Every artist becomes more and more proficient through constant
practice. Similarly managers learn through an art of trial and error initially but application
of management principles over the years makes them perfect in the job of managing.

● Creativity: Every artist has an element of creativity in line. That is why he aims at
producing something that has never existed before which requires combination of
intelligence & imagination.
Management is also creative in nature like any other art. It combines human and non-
human resources in useful way so as to achieve desired results. It tries to produce sweet
music by combining chords in an efficient manner.

● Personalized application: No amount of theoretical knowledge of art, no matter how

much money is spent on it, will ever be enough to meet the sector’s demands. Art is
80% practical, and every creator must have individual skill and imagination to put
knowledge into practice. The same holds true for management.

MANAGEMENT AS A PROFESSION
A profession is an occupation that demands specialized knowledge of a subject matter
alongside intense academic background. Moreover, competent authorities regulate the
entry in a particular occupation, and they look for experience, ethics, and formal training.
According to experts, a profession includes the following fundamentals:

1. Specialized knowledge: Management professionals need specialized

knowledge to work in their respective fields. They can gather their knowledge
from books and other study materials that are carefully curated. Therefore, in this
light one can say that management is a profession.

2. Formal education and training: Modern management science allows aspirants

to gain their necessary knowledge and training. There are many management
education and training institutions in this country that can help an individual in this
process. In the current market, companies prefer to hire individuals who have a
degree to manage certain positions.Thus, management professional meaning
refers to individuals with appropriate training and education, which qualifies them
as a profession.

3. Social Obligations: The social obligation of any job prevails in management as

well. Even though there are no such written norms, but in reality, the focus on
social responsibility exists.
 4. Code of conduct: Every professional working in this domain needs to abide by
specific rules and regulations or codes of conduct. Primarily, such norms are at
the discretion of the organization they are working for, and it alters from time to
time. However, professional morality, integrity, and honesty are some
fundamentals that individuals must abide by irrespective of their role. Keeping
this into consideration, one can quickly identify management as a profession.

5. Representation Association: There are professional management

association in almost every country, and their job is –
● To regulate the behaviour of the members
● Creating norms for the professionals
● To study and develop new ideas for the betterment of management as
a profession.

(Management is not a profession; by all means, it satisfies certain fundamentals of it.

The old saying of ‘managers are born, and not made’ holds no value in modern times. In
the contemporary world, individuals can get themselves trained via a dedicated course
of study to become a manager.)

IMPORTANTANCE / NEED / SIGNIFICANCE OF MANAGEMENT

1. Management helps in achieving group goals: Management of efforts is

required for achieving the goals of the organisation. Hence, the main task of a
manager is to give a common direction to individual efforts for achieving the
overall goal of the organisation.

2. Management increases efficiency: Manager tries to reduce the cost and

improve productivity with minimum wastage of resources. Management insists on
efficiency and effectiveness in the work through planning. organising, staffing,
directing and controlling.

3. Management creates a dynamic environment: An organisation operates in a

constantly changing environment. Effective management reduces employees
resistance to changes in the organisation. A good manager can persuade his
employees to cooperate with changes by explaining their benefits in the future.

4. Management helps in achieving personal objectives: A manager should

motivate his employees to achieve personal goals along with the organisational
objectives. Through motivation and leadership, the manager can develop team
spirit, cooperation and commitment for success.

5. Management helps in the development of society: An organisation has

multiple objectives towards different groups. While fulfilling these objectives,
management helps in the development of organisation, which also leads to
development of society. It helps to provide quality products and services, create
 employment opportunities, adopt new technologies, etc. which would lead to
growth and development of the society.

ROLE OF MANAGER
by Henry Mintzberg

In his work researching and writing about managerial roles, Henry Mintzberg described
three main categories of managerial types: interpersonal, informational, and decisional.
Each category contains different roles that a manager may play in order to complete
their job successfully.
There are ten managerial roles identified by Henry Mintzberg. They are known as the
figurehead, leader, liaison, monitor, disseminator, spokesman, negotiator, disturbance
handler, entrepreneur, and resource allocator roles.

Interpersonal roles: Interpersonal roles of managers revolve around the specifics of

working within a team and involve the behaviors associated with human interaction.

- Figurehead: Performs symolic duties like signing legal documents, welcome to

visitors. represents the organization as well as motivates the team.

- Leader: Motivation and direction to subordinates. Training, counseling and

communication with subordinates.

- Liaison: Develops and maintains internal and external relationships

Informational roles: The informational category involves creating, receiving, or sharing

information with coworkers. The manager collects information from sources both inside
and outside the organization, processes it, and delivers it to those who need it.

- Recipient: Receive information about changes opportunities and problems that

the organization may face.

- Disseminator: Forward information to subordinates, send memos and reports.

- Spokesman: Represent the organization and public through speeches and

reports.

Decisional roles: Interpersonal roles are about dealing with people, and informational
ones are about dealing with knowledge. Decisional roles are about action. By
communicating with people and using information, managers make decisions that lead
the organization to its goals.
- Entrepreneur: Identifying new ideas and seek innovative methods to improve the
performance of the organizations.

- Disturbance handler: Take corrective action in case of disputes. Resolve

conflicts among subordinates.

- Resources allocator: Allocation of various resources like money, material, time,

scheduling.

- Negotiator: Participate in direct or indirect negotiation situations. Host

negotiations with internal parties, such as other departments or your team
member.