What is Management?

Management is a universal phenomenon. It is a very popular and widely used term. All
organizations - business, political, cultural or social are involved in management
because it is the management which helps and directs the various efforts towards a
definite purpose.
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”.
Management is a purposive activity. It is something that directs group efforts towards
the attainment of certain pre - determined goals. It is the process of working with and
through others to effectively achieve the goals of the organization, by efficiently using
limited resources in the changing world. Of course, these goals may vary from one
enterprise to another. E.g.: For one enterprise it may be launching of new products by
conducting market surveys and for other it may be profit maximization by minimizing
cost.
Management involves creating an internal environment: - It is the management which
puts into use the various factors of production. Therefore, it is the responsibility of
management to create such conditions which are conducive to maximum efforts so that
people are able to perform their task efficiently and effectively. It includes ensuring
availability of raw materials, determination of wages and salaries, formulation of rules &
regulations etc.
Therefore, we can say that good management includes both being effective and
efficient. Being effective means doing the appropriate task. Being efficient means doing
the task correctly, at least possible cost with minimum wastage of resources.
Functions of Management
According to George & Jerry, “There are four fundamental functions of management i.e.
planning, organizing, actuating and controlling”.
According to Henry Fayol, “To manage is to forecast and plan, to organize, to
command, & to control”. Whereas Luther Gullick has given a keyword ’POSDCORB’
where
P stands for Planning,
O for Organizing,
S for Staffing,
D for Directing,
Co for Co-ordination,
R for reporting &
B for Budgeting.
But the most widely accepted are
functions of management given by
KOONTZ and O’DONNEL
i.e. Planning, Organizing, Staffing,
Directing and Controlling.
1. Planning
It is the basic function of management. 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.
2. 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.
3. 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 on right job. 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.
4. 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 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:
 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.
5. 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.