Functions of Managers Managers just don't go out and haphazardly perform their responsibilities.

Good managers discover how to master five basic functions: planning, organizing, staffing, leading, and controlling. For theoretical purposes, it may be convenient to separate the function of management but practically these functions are overlapping in nature i.e. they are highly inseparable. Each function blends into the other & each affects the performance of others.

Planning: This step involves mapping out exactly how to achieve a particular goal. Say, for example, that the organization's goal is to improve company sales. The manager first needs to decide which steps are necessary to accomplish that goal. These steps may include increasing advertising, inventory, and sales staff. These necessary steps are developed into a plan. When the plan is in place, the manager can follow it to accomplish the goal of improving company sales. 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: After a plan is in place, a manager needs to organize her team and materials according to her plan. Assigning work and granting authority are two important elements of 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 personnels. 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

1. 2. 3. 4. 5. 6.

Staffing: After a manager discerns his area's needs, he may decide to beef up his staffing by recruiting, selecting, training, and developing employees. A manager in a large organization often works with the company's human resources department to accomplish this goal. 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 & ODonell, 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: 1. Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place). 2. Recruitment, selection & placement. 3. Training & development. 4. Remuneration. 5. Performance appraisal. 6. Promotions & transfer. Leading: A manager needs to do more than just plan, organize, and staff her team to achieve a goal. She must also lead. Leading involves motivating, communicating, guiding, and encouraging. It requires the manager to coach, assist, and problem solve with employees. 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: 1. Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers. 2. 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. 3. Leadership- may be defined as a process by which manager guides and influences the work of subordinates in desired direction. 4. Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding. Controlling: After the other elements are in place, a manager's job is not finished. He needs to continuously check results against goals and take any corrective actions necessary to make sure that his area's plans remain on track. 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 & ODonell 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: 1. Establishment of standard performance. 2. Measurement of actual performance. 3. Comparison of actual performance with the standards and finding out deviation if any. 4. Corrective action. All managers at all levels of every organization perform these functions, but the amount of time a manager spends on each one depends on both the level of management and the specific organization. Roles performed by managers A manager wears many hats. Not only is a manager a team leader, but he or she is also a planner, organizer, cheerleader, coach, problem solver, and decision maker all rolled into one. And these are just a few of a manager's roles. In addition, managers' schedules are usually jam-packed. Whether they're busy with employee meetings, unexpected problems, or strategy sessions, managers often find little spare time on their calendars. (And that doesn't even include responding to e-mail!)

In his classic book, The Nature of Managerial Work, Henry Mintzberg describes a set of ten roles that a manager fills. These roles fall into three categories: Interpersonal: This role involves human interaction. Informational: This role involves the sharing and analyzing of information. Decisional: This role involves decision making.
Table 1 contains a more in-depth look at each category of roles that help managers carry out all five functions described in the preceding Functions of Managers section.
TABLE 1 Mintzberg's Set of Ten Roles

Category

Role

Activity

Informational Monitor

Seek and receive information; scan periodicals and reports; maintain personal contact with stakeholders.

Disseminator

Forward information to organization members via memos, reports, and phone calls.

Spokesperson

Transmit information to outsiders via reports, memos, and speeches.

Interpersonal Figurehead

Perform ceremonial and symbolic duties, such as greeting visitors and signing legal documents.

Leader

Direct and motivate subordinates; counsel and communicate with subordinates.

Liaison

Maintain information links both inside and outside organization via mail, phone calls, and meetings.

Decisional

Entrepreneur

Initiate improvement projects; identify new ideas and delegate idea responsibility to others.

Disturbance handler

Take corrective action during disputes or crises; resolve conflicts among subordinates; adapt to environments.

Resource allocator

Decide who gets resources; prepare budgets; set schedules and determine priorities.

Negotiator

Represent department during negotiations of union contracts, sales, purchases, and budgets.

Skills needed by managers

Not everyone can be a manager. Certain skills, or abilities to translate knowledge into action that results in desired performance, are required to help other employees become more productive. These skills fall under the following categories:

Technical: This skill requires the ability to use a special proficiency or expertise to perform
particular tasks. Accountants, engineers, market researchers, and computer scientists, as examples, possess technical skills. Managers acquire these skills initially through formal education and then further develop them through training and job experience. Technical skills are most important at lower levels of management.

Human: This skill demonstrates the ability to work well in cooperation with others. Human
skills emerge in the workplace as a spirit of trust, enthusiasm, and genuine involvement in interpersonal relationships. A manager with good human skills has a high degree of selfawareness and a capacity to understand or empathize with the feelings of others. Some managers are naturally born with great human skills, while others improve their skills through classes or experience. No matter how human skills are acquired, they're critical for all managers because of the highly interpersonal nature of managerial work.

Conceptual: This skill calls for the ability to think analytically. Analytical skills enable
managers to break down problems into smaller parts, to see the relations among the parts, and to recognize the implications of any one problem for others. As managers assume everhigher responsibilities in organizations, they must deal with more ambiguous problems that have long-term consequences. Again, managers may acquire these skills initially through formal education and then further develop them by training and job experience. The higher the management level, the more important conceptual skills become. Although all three categories contain skills essential for managers, their relative importance tends to vary by level of managerial responsibility. Business and management educators are increasingly interested in helping people acquire technical, human, and conceptual skills, and develop specific competencies, or specialized skills, which contribute to high performance in a management job. Following are some of the skills and personal characteristics that the American Assembly of Collegiate Schools of Business (AACSB) is urging business schools to help their students develop.

Leadership ability to influence others to perform tasks Self-objectivity ability to evaluate yourself realistically Analytic thinking ability to interpret and explain patterns in information Behavioral flexibility ability to modify personal behavior to react objectively rather than subjectively to accomplish organizational goals Oral communication ability to express ideas clearly in words Written communication ability to express ideas clearly in writing Personal impact ability to create a good impression and instill confidence

Resistance to stress ability to perform under stressful conditions Tolerance for uncertainty

ability to perform in ambiguous situations

Levels of Management
These management functions are common to all the managers irrespective of the business activity managed by them for example, procurement, manufacturing, marketing, finance, human resources management, and so on, or their level in organizational. However, the total time and effort devoted by individual managers to each of the management function as well as the total effort spent on all the management function in proportion to other non-managerial, technical and operational, tasks depends on many factors such as nature of business and organizations structure. A managers level within the organizational hierarchy has major influence on the proportion of efforts spent on managerial and non-managerial activities, and the proportion of different functions within managerial activities. Depending on size and structure, an organization may have half a dozen or more levels in the management hierarchy. However, for ease of understanding these are often grouped in three levels. 1. Top-management: This refers to the top one or two hierarchical levels in the organization structure. Managers at these levels have responsibilities for the total organizational performance covering multiple business activities. 2. Middle-management: These are the managers between the top- and first-level management. They generally do not have the responsibility for more than one type of business activity, and even within that may be responsible for only a segment of the total work in the organization. 3. First-level-management: They are at the lowest one or two levels of management hierarchy. They are the people responsible for directly supervising the work of operational staff, and form a link between them and the management. As we move from top to the first-level managers, the total proportion of effort on management work tends to decrease. Within management work, the effort spent on planning and controlling functions tends to decrease, and on leading function tends to increase, as we move down the organizational hierarchy. There is a drop in amount of organizing effort requirement also with decreasing level of organization hierarchy, but much less pronounced drop in comparison to that for planning and leading

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. The level of management determines a chain of command, the amount of authority & status enjoyed by any managerial position. The levels of management can be classified in three broad categories: 1. Top level / Administrative level 2. Middle level / Executory 3. Low level / Supervisory / Operative / First-line managers Managers at all these levels perform different functions. The role of managers at all the three levels is discussed below:

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. r. s. t. Assigning of jobs and tasks to various workers. They guide and instruct workers for day to day activities. They are responsible for the quality as well as quantity of production. 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

Principles of Management A principle refers to a fundamental truth. It establishes cause and effect relationship between two or more variables under given situation. They serve as a guide to thought & actions. Therefore, management principles are the statements of fundamental truth based on logic which provides guidelines for managerial decision making and actions. These principles are derived: a. On the basis of observation and analysis i.e. practical experience of managers. b. By conducting experimental studies

There are 14 Principles of Management described by Henri Fayol

Division of Labor
a. Henry Fayol has stressed on the specialization of jobs. b. He recommended that work of all kinds must be divided & subdivided and allotted to various persons according to their expertise in a particular area. c. Subdivision of work makes it simpler and results in efficiency. d. It also helps the individual in acquiring speed, accuracy in his performance. e. Specialization leads to efficiency & economy in spheres of business.

Party of Authority & Responsibility

f. Authority & responsibility are co-existing. g. If authority is given to a person, he should also be made responsible. h. In a same way, if anyone is made responsible for any job, he should also have concerned authority. i. Authority refers to the right of superiors to get exactness from their subordinates whereas responsibility means obligation for the performance of the job assigned. j. There should be a balance between the two i.e. they must go hand in hand. k. Authority without responsibility leads to irresponsible behavior whereas responsibility without authority makes the person ineffective.

Principle of One Boss

l. A sub-ordinate should receive orders and be accountable to one and only one boss at a time. m. In other words, a sub-ordinate should not receive instructions from more than one person because It undermines authority Weakens discipline Divides loyalty Creates confusion Delays and chaos Escaping responsibilities Duplication of work Overlapping of efforts

n. Therefore, dual sub-ordination should be avoided unless and until it is absolutely essential. o. Unity of command provides the enterprise a disciplined, stable & orderly existence. p. It creates harmonious relationship between superiors and sub-ordinates.

Unity of Direction
q. Fayol advocates one head one plan which means that there should be one plan for a group of activities having similar objectives. r. Related activities should be grouped together. There should be one plan of action for them and they should be under the charge of a particular manager. s. According to this principle, efforts of all the members of the organization should be directed towards common goal. t. Without unity of direction, unity of action cannot be achieved. u. In fact, unity of command is not possible without unity of direction. Basis Meaning Unity of command It implies that a sub-ordinate should receive orders & instructions from only one boss. It is related to the functioning of personnels. It is necessary for fixing responsibility of each subordinates. It avoids conflicts, confusion & chaos. Unity of direction It means one head, one plan for a group of activities having similar objectives. It is related to the functioning of departments, or organization as a whole. It is necessary for sound organization. It avoids duplication of efforts and

Nature

Necessity Advantage

wastage of resources. Result It leads to better superior sub-ordinate relationship. It leads to smooth running of the enterprise.

Therefore it is obvious that they are different from each other but they are dependent on each other i.e. unity of direction is a pre-requisite for unity of command. But it does not automatically come from the unity of direction.

Equity
a. Equity means combination of fairness, kindness & justice. b. The employees should be treated with kindness & equity if devotion is expected of them. c. It implies that managers should be fair and impartial while dealing with the subordinates. d. They should give similar treatment to people of similar position. e. They should not discriminate with respect to age, caste, sex, religion, relation etc. f. Equity is essential to create and maintain cordial relations between the managers and sub-ordinate. g. But equity does not mean total absence of harshness. h. Fayol was of opinion that, at times force and harshness might become necessary for the sake of equity.

Order
i. This principle is concerned with proper & systematic arrangement of things and people. j. Arrangement of things is called material order and placement of people is called social order. k. Material order- There should be safe, appropriate and specific place for every article and every place to be effectively used for specific activity and commodity. l. Social order- Selection and appointment of most suitable person on the suitable job. There should be a specific place for every one and everyone should have a specific place so that they can easily be contacted whenever need arises.

Discipline
m. According to Fayol, Discipline means sincerity, obedience, respect of authority & observance of rules and regulations of the enterprise. n. This principle applies that subordinate should respect their superiors and obey their order. o. It is an important requisite for smooth running of the enterprise. p. Discipline is not only required on path of subordinates but also on the part of management.

q. Discipline can be enforced if - There are good superiors at all levels. - There are clear & fair agreements with workers. - Sanctions (punishments) are judiciously applied.

Initiative
r. Workers should be encouraged to take initiative in the work assigned to them. s. It means eagerness to initiate actions without being asked to do so. t. Fayol advised that management should provide opportunity to its employees to suggest ideas, experiences& new method of work. u. It helps in developing an atmosphere of trust and understanding. v. People then enjoy working in the organization because it adds to their zeal and energy. w. To suggest improvement in formulation & implementation of place. x. They can be encouraged with the help of monetary & non-monetary incentives.

Fair Remuneration
y. The quantum and method of remuneration to be paid to the workers should be fair, reasonable, satisfactory & rewarding of the efforts. z. As far as possible it should accord satisfaction to both employer and the employees. aa. Wages should be determined on the basis of cost of living, work assigned, financial position of the business, wage rate prevailing etc. bb. Logical & appropriate wage rates and methods of their payment reduce tension & differences between workers & management creates harmonious relationship and pleasing atmosphere of work. cc. Fayol also recommended provision of other benefits such as free education, medical & residential facilities to workers.

Stability of Tenure
dd. Fayol emphasized that employees should not be moved frequently from one job position to another i.e. the period of service in a job should be fixed. ee. Therefore employees should be appointed after keeping in view principles of recruitment & selection but once they are appointed their services should be served. ff. According to Fayol. Time is required for an employee to get used to a new work & succeed to doing it well but if he is removed before that he will not be able to render worthwhile services. gg. As a result, the time, effort and money spent on training the worker will go waste. hh. Stability of job creates team spirit and a sense of belongingness among workers which ultimately increase the quality as well as quantity of work.

Scalar Chain

ii. Fayol defines scalar chain as The chain of superiors ranging from the ultimate authority to the lowest. jj. Every orders, instructions, messages, requests, explanation etc. has to pass through Scalar chain. kk. But, for the sake of convenience & urgency, this path can be cut shirt and this short cut is known as Gang Plank. ll. A Gang Plank is a temporary arrangement between two different points to facilitate quick & easy communication as explained below:

In the figure given, if D has to communicate with G he will first send the communication upwards with the help of C, B to A and then downwards with the help of E and F to G which will take quite some time and by that time, it may not be worth therefore a gang plank has been developed between the two. mm. Gang Plank clarifies that management principles are not rigid rather they are very flexible. They can be moulded and modified as per the requirements of situations

Sub-Ordination of Individual Interest to General Interest

nn. An organization is much bigger than the individual it constitutes therefore interest of the undertaking should prevail in all circumstances. oo. As far as possible, reconciliation should be achieved between individual and group interests. pp. But in case of conflict, individual must sacrifice for bigger interests. qq. In order to achieve this attitude, it is essential that - Employees should be honest & sincere. - Proper & regular supervision of work. - Reconciliation of mutual differences and clashes by mutual agreement. For example, for change of location of plant, for change of profit sharing ratio, etc.

Espirit De Corps (can be achieved through unity of command)

rr. It refers to team spirit i.e. harmony in the work groups and mutual understanding among the members. ss. Spirit De Corps inspires workers to work harder. tt. Fayol cautioned the managers against dividing the employees into competing groups because it might damage the moral of the workers and interest of the undertaking in the long run. uu. To inculcate Espirit De Corps following steps should be undertaken There should be proper co-ordination of work at all levels Subordinates should be encouraged to develop informal relations among themselves. Efforts should be made to create enthusiasm and keenness among subordinates so that they can work to the maximum ability. Efficient employees should be rewarded and those who are not up to the mark should be given a chance to improve their performance. Subordinates should be made conscious of that whatever they are doing is of great importance to the business & society. vv. He also cautioned against the more use of Britain communication to the subordinates i.e. face to face communication should be developed. The managers should infuse team spirit & belongingness. There should be no place for misunderstanding. People then enjoy working in the organization & offer their best towards the organization.

Centralization & De-Centralization

ww. Centralization means concentration of authority at the top level. In other words, centralization is a situation in which top management retains most of the decision making authority. xx. Decentralization means disposal of decision making authority to all the levels of the organization. In other words, sharing authority downwards is decentralization. yy. According to Fayol, Degree of centralization or decentralization depends on no. of factors like size of business, experience of superiors, dependability & ability of subordinates etc. zz. Anything which increases the role of subordinate is decentralization & anything which decreases it is centralization. aaa. Fayol suggested that absolute centralization or decentralization is not feasible. An organization should strike to achieve a lot between the two

Features of Principles of Management 1. Principles of Management are Universal a. Management principles are applicable to all kinds of organizations business & non business. b. They are applicable to all levels of management. c. Every organization must make best possible use by the use of management principles. d. Therefore, they are universal or all pervasive. 2. Principles of Management are Flexible a. Management principles are dynamic guidelines and not static rules. b. There is sufficient room for managerial discretion i.e. they can be modified as per the requirements of the situation. c. Modification & improvement is a continuous phenomenon in case of principles of management. 3. Principles of Management have a Cause & Effect Relationship a. Principles of management indicate cause and effect relationship between related variables. b. They indicate what will be the consequence or result of certain actions. Therefore, if one is known, the other can be traced. 4. Principles of Management - Aims at Influencing Human Behavior a. Human behavior is complex and unpredictable. b. Management principles are directed towards regulating human behavior so that people can give their best to the organization. c. Management is concerned with integrating efforts and harmonizing them towards a goal. d. But in certain situations even these principles fail to understand human behavior. 5. Principles of Management are of Equal Importance a. All management principles are equally important. b. No particular principle has greater importance than the other. c. They are all required together for the achievement of organizational goals

Features of Management Management is an activity concerned with guiding human and physical resources such that organizational goals can be achieved. Nature of management can be highlighted as: 1. Management is Goal-Oriented: The success of any management activity is accessed by its achievement of the predetermined goals or objective. Management is a purposeful activity. It is a tool which helps use of human & physical resources to fulfill the pre-determined goals. For example, the goal of an enterprise is maximum consumer satisfaction by producing quality goods and at reasonable prices. This can be achieved by employing efficient persons and making better use of scarce resources. 2. Management integrates Human, Physical and Financial Resources: In an organization, human beings work with non-human resources like machines. Materials, financial assets, buildings etc. Management integrates human efforts to those resources. It brings harmony among the human, physical and financial resources. 3. Management is Continuous: Management is an ongoing process. It involves continuous handling of problems and issues. It is concerned with identifying the problem and taking appropriate steps to solve it. E.g. the target of a company is maximum production. For achieving this target various policies have to be framed but this is not the end. Marketing and Advertising is also to be done. For this policies have to be again framed. Hence this is an ongoing process. 4. Management is all Pervasive: Management is required in all types of organizations whether it is political, social, cultural or business because it helps and directs various efforts towards a definite purpose. Thus clubs, hospitals, political parties, colleges, hospitals, business firms all require management. When ever more than one person is engaged in working for a common goal, management is necessary. Whether it is a small business firm which may be engaged in trading or a large firm like Tata Iron & Steel, management is required everywhere irrespective of size or type of activity. 5. Management is a Group Activity: Management is very much less concerned with individuals efforts. It is more concerned with groups. It involves the use of group effort to achieve predetermined goal of management of ABC & Co. is good refers to a group of persons managing the enterprise.

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 predetermined 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

Management and Administration The difference between Management and Administration can be summarized under 2 categories: 1. Functions 2. Usage / Applicability On the Basis of Functions: Basis Meaning Management Management is an art of getting things done through others by directing their efforts towards achievement of predetermined goals. Management is an executing function. Management decides who should as it & how should he dot it. Management is a doing function because managers get work done under their supervision. Technical and Human skills Middle & lower level function Administration It is concerned with formulation of broad objectives, plans & policies. Administration is a decisionmaking function. Administration decides what is to be done & when it is to be done. Administration is a thinking function because plans & policies are determined under it. Conceptual and Human skills Top level function

Nature Process Function

Skills Level

On the Basis of Usage: Basis Applicability Management It is applicable to business concerns i.e. profit-making organization. The management decisions are influenced by the values, opinions, beliefs & decisions of the managers. Management constitutes the employees of the organization who are paid remuneration (in the form of salaries & wages). Administration It is applicable to non-business concerns i.e. clubs, schools, hospitals etc. The administration is influenced by public opinion, govt. policies, religious organizations, customs etc. Administration represents owners of the enterprise who earn return on their capital invested & profits in the form of dividend.

Influence

Status

Practically, there is no difference between management & administration. Every manager is concerned with both - administrative management function and operative management function as shown in the figure. However, the managers who are higher up in the hierarchy denote more time on administrative function & the lower level denote more time on directing and controlling workers performance i.e. management.

The Figure above clearly shows the degree of administration and management performed by the different levels of management

Importance of the Principles of Management Following are the main importance of the Principles of Management. 1. 2. 3. 4. Improves Understanding. Direction for Training of Managers. Role of Management. Guide to Research in Management.

1. Improves Understanding - From the knowledge of principles managers get indication on how to manage an organization. The principles enable managers to decide what should be done to accomplish given tasks and to handle situations which may arise in management. These principles make managers more efficient. 2. Direction for Training of Managers - Principles of management provide understanding of management process what managers would do to accomplish what. Thus, these are helpful in identifying the areas of management in which existing & future managers should be trained. 3. Role of Management - Management principles makes the role of managers concrete. Therefore these principles act as ready reference to the managers to check whether their decisions are appropriate. Besides these principles define managerial activities in practical terms. They tell what a manager is expected to do in specific situation. 4. Guide to Research in Management - The body of management principles indicate lines along which research should be undertaken to make management practical and more effective. The principles guide managers in decision making and action. The researchers can examine whether the guidelines are useful or not. Anything which makes management research more exact & pointed will help improve management practice.