MANAGEMENT

Management is how businesses organize and direct workflow, operations, and

employees to meet company goals. The primary goal of management is to create an
environment that empowers employees to work efficiently and productively. A solid
organizational structure guides employees and establishes the tone and focus of their
work.

Levels of management
In many organizations, management falls into one of three levels: top, middle,
and low. Managers in smaller companies may fill roles at more than one level,
while larger organizations may have several managers within each level.
 Top: Top-level management typically has an administrative role, and their
decisions affect the entire organization even though they sometimes aren’t
involved in the day-to-day operations. They may have the title of chief executive
officer (CEO) or serve on the board of directors.

 Middle: You find people with executive roles at the middle management level.
They work with both top-level management and supervisors to help workers meet
objectives and boost the company's productivity. At this level, they may be called
regional managers or general managers.

 Low: The final level of management often has a supervisory role. These
managers have titles like shift supervisor, branch manager, or team leader. They
work with individuals and teams to meet goals determined by upper management.
They typically have less influence over company policy compared to the other
management levels, but the most interaction with direct reports.

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.

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 of staffing is to put right man/woman on right job i.e. square pegs in
square holes and round pegs in round holes.

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 and action of people,
because planning, organizing and staffing are the mere preparations for doing the work.

Direction is that inter-personnel aspect of management which deals directly with influencing,
guiding, supervising, motivating sub-ordinate for the achievement of organizational goals.
Direction has following elements:

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:

a. Establishment of standard performance.

b. Measurement of actual performance.
c. Comparison of actual performance with the standards and finding out deviation if any.
d. Corrective action.

Meaning of Planning
Planning is ascertaining prior to what to do and how to do. It is one of the primary
managerial duties. Before doing something, the manager must form an opinion on how to
work on a specific job. Hence, planning is firmly correlated with discovery and creativity.
But the manager would first have to set goals. Planning is an essential step what
managers at all levels take. It requires making decisions since it includes selecting a
choice from alternative ways of performance.

Steps of Planning Process

The planning process involves several key steps that managers must
follow:

Setting Objectives:
This marks the beginning of planning, where clear goals are defined for
the organization. Objectives are specific, measurable end results that
the management aims to achieve. Each department sets its objectives
within the overall framework of the organization’s goals. For instance, a
mobile phone company might set a target to double its sales to
200,000 units next year.
Developing Planning Premises:
Planning is future-oriented and requires understanding external events
that could impact decisions. These events, known as planning
premises, are assumptions based on which plans are made. For
example, a mobile phone company might base its sales objective on
favorable government policies promoting digital transactions.

Identifying Alternative Courses of

Action:
After setting objectives and making assumptions, various ways to
achieve the goals are explored. Multiple alternatives, such as price
reduction, increased advertising, or improved after-sales services, are
identified.

Evaluating Alternative Courses of

Action:
Each alternative is carefully evaluated, considering both positive and
negative aspects. Factors like cost, risks, and returns are assessed
within the planning premises and available resources. The evaluation
helps in weighing the pros and cons of each option.

Selecting One Best Alternative:

The most profitable plan with minimal negative effects is chosen and
implemented. Managerial experience and judgment play a vital role in
this decision-making process. For instance, a mobile phone company
might opt for increased TV advertisements, online marketing, and
excellent after-sales service.

Implementing the Plan:

This step involves putting the chosen plan into action. Managers
communicate the plan clearly to employees, allocate resources,
organize labor, and procure necessary machinery. For example, a
mobile phone company might hire more salespeople, create TV
advertisements, initiate online marketing activities, and establish
service workshops.
 Follow-Up Action:
Continuous monitoring and feedback are crucial to ensure plans are on
track. Regular checks and comparisons against set standards are
performed. Feedback mechanisms, such as customer responses and
revenue collection, are utilized to evaluate the actual outcomes against
the planned objectives.

For instance, the mobile phone company establishes a feedback

system across its branches to assess customer responses, revenue,
and employee feedback.

Who is a manager?
A manager is an appointed leader of a team who helps achieve goals by
providing staff members with guidance and structure. Managers are prevalent in
every industry and in almost every company and organisation because they improve
accountability and increase productivity. Managers may have varying responsibilities
depending on the size of their team and the business they work within.

What is the Need for Management?

Management builds upon the foundation of organisation and adds a dynamic layer. It’s the process of
planning, directing, coordinating, and controlling resources to achieve organisational goals. Here’s
why effective management is essential.The management is considered important because:

1. Goal Achievement: Management is considered important because translates vision into actionable
plans and ensures everyone works towards achieving them.This gives importance of organizing in
management
2. Efficiency and Productivity: Management is considered important because while managers
optimize resource allocation and streamline processes for maximum output.
3. Motivation and Team Building: Management is considered important because They foster a
positive work environment that motivates employees and encourages teamwork.
4. Adaptation and Change Management: Importance of organizing in management guidesthe
organisation through changes in the market or industry.
5. Problem-Solving and Decision-Making: They identify and solve problems effectively while
making sound decisions for the organisation’s future. THis emphasises importance of organizing in
management
 What is the Role of a Manager?
 Leader: Motivating and inspiring employees to achieve their full potential.
 Planner: Developing strategies and creating action plans for organisational goals.
 Organizer: Delegating tasks, establishing clear communication channels, and ensuring
efficient workflows.
 Controller: Monitoring progress, evaluating performance, and making adjustments as
needed.
 Decision-Maker: Weighing options and making sound decisions that benefit the
organisation.
 Communicator: Effectively communicating with employees at all levels, building
trust and rapport.

Managerial Skills in Management

The specific roles and responsibilities of a manager can vary depending on the industry, organisation
size, and management level. However, some core managerial skills remain constant:-

 Communication skills: Managerial roles and skills are the ability to communicate clearly,
concisely, and effectively with all levels of an organisation.
 Leadership skills: Managerial roles and skills the ability to motivate and inspire employees,
fostering a positive and productive work environment.
 Problem-solving skills: Managerial roles and skills the ability to identify and analyze problems,
develop effective solutions, and make sound decisions.
 Delegation skills: The ability to delegate tasks effectively, empowering employees and ensuring
accountability.
 Strategic thinking skills: The ability to think critically, analyze situations, and develop long-term
plans that align with organisational goals.
 Interpersonal skills: The ability to build strong relationships with employees, foster trust, and
provide constructive feedback.

Henry Fayol 14 PRINCIPLES

1. Division of Work

Henri believed that segregating work in the workforce amongst the workers will enhance
the quality of the product. Similarly, he also concluded that the division of work improves
the productivity, efficiency, accuracy and speed of the workers. This principle is
appropriate for both the managerial as well as a technical work level.

2. Authority and Responsibility

These are the two key aspects of management. Authority facilitates the management to
work efficiently, and responsibility makes them responsible for the work done under their
guidance or leadership.

3. Discipline

Without discipline, nothing can be accomplished. It is the core value for any project or
any management. Good performance and sensible interrelation make the management job
easy and comprehensive. Employees’ good behaviour also helps them smoothly build and
progress in their professional careers.

4. Unity of Command

This means an employee should have only one boss and follow his command. If an
employee has to follow more than one boss, there begins a conflict of interest and can
create confusion.

5. Unity of Direction

Whoever is engaged in the same activity should have a unified goal. This means all the
people working in a company should have one goal and motive which will make the work
easier and achieve the set goal easily.

6. Subordination of Individual Interest

This indicates a company should work unitedly towards the interest of a company rather
than personal interest. Be subordinate to the purposes of an organisation. This refers to
the whole chain of command in a company.

7. Remuneration

This plays an important role in motivating the workers of a company. Remuneration can
be monetary or non-monetary. Ideally, it should be according to an individual’s efforts
they have put forth.

8. Centralization
In any company, the management or any authority responsible for the decision-making
process should be neutral. However, this depends on the size of an organisation. Henri
Fayol stressed on the point that there should be a balance between the hierarchy and
division of power.

9. Scalar Chain

Fayol, on this principle, highlights that the hierarchy steps should be from the top to the
lowest. This is necessary so that every employee knows their immediate senior also they
should be able to contact any, if needed.

10. Order

A company should maintain a well-defined work order to have a favourable work culture.
The positive atmosphere in the workplace will boost more positive productivity.

11. Equity

All employees should be treated equally and respectfully. It’s the responsibility of a
manager that no employees face discrimination.

12. Stability

An employee delivers the best if they feel secure in their job. It is the duty of the
management to offer job security to their employees.

13. Initiative

The management should support and encourage the employees to take initiatives in an
organisation. It will help them to increase their motivation and morale.

14. Esprit de Corps

It is the responsibility of the management to motivate their employees and be supportive

of each other regularly. Developing trust and mutual understanding will lead to a positive
outcome and work environment.
 DIFFERENCES BETWEEN ADMINISTRATION AND
MANAGEMENT

Key Differences Between Management and Administration The major differences between
management and administration are given below:

1. Management is a systematic way of managing people and things within the organization.
The administration is defined as an act of administering the whole organization by a group of
people.

2. Management is an activity of business and functional level, whereas Administration is a

high-level activity.

3. While management focuses on policy implementation, policy formulation is performed by

the administration.

4. Functions of administration include legislation and determination. Conversely, functions

of management are executive and governing.

5. Administration takes all the important decisions of the organization while management
makes decisions under the boundaries set by the administration.

6. A group of persons, who are employees of the organization, is collectively known as

management. On the other hand, administration represents the owners of the organization.

7. Management can be seen in the profit making organization like business enterprises.
Conversely, the Administration is found in government and military offices, clubs, hospitals,
religious organizations and all the non-profit making enterprises.

8. Management is all about plans and actions, but the administration is concerned with
framing policies and setting objectives.

9. Management plays an executive role in the organization. Unlike administration, whose

role is decisive in nature.

10. The manager looks after the management of the organization, whereas administrator is
responsible for the administration of the organization.

11. Management focuses on managing people and their work. On the other hand,
administration focuses on making the best possible utilization of the organization’s resources.