M&E Management &Entrepreneurship {chapter 1}INTRODUCTION Evolution of Management thought:

Ch 1-Introduction

Right from the beginning of the civilization and from the time people began to live in groups, the practice of management had began. As people started forming groups to achieve their goals even be it say for hunting they quickly realized that managing is necessary to ensure proper coordination of all the individuals in the group. Today if you look at the society you would realize that the society stands on group effort and hence the importance of management. Management is essential for any organization be it small or big and to profit or not-for profit enterprises. Currently Management is universally used to manage business organizations, educational institutions, military, and government to state a few. Management is same in all the form of organizations, although it varies widely in the complexity with the size of the organization.

Importance of Management:
The importance of Management can be put forth considering the following facts: Management is the dynamic, life giving element of every organization: Management very clearly is that process that -coordinates the current activities -plans the future course of action -settles disputes -provides leadership A strong management will shape the environment to suit the needs of the organization and helps the organization to have a competitive edge in the market over its rivals.

Management is a critical element in the growth of a country: The factors required for production are: -Men -Money -Material -Machine In short they are known as the 4 Ms. Along with this, the management helps in boosting the economy of the country, because the industries form the back bone of any country upon which the country becomes economically independent. This concept can be clearly understood by considering the economic growth of several Asian nations, inspite of having sufficient 4 Ms. Claude S George has commented that the central core of our nation as well as personal activities, and the way we manage ourselves and our institutions reflects with alarming clarity what we and our society will become.

Meaning of Management (Definition):

What is Management? This is a very good question and as well as difficult one to answer. This is because Management is understood and viewed by different people in different ways. Students view it as a discipline they are pursuing in their studies whereas the workers see it as group of people who manage their organization. Yet others such as scholars view it differently. The Australian Management tutor, Edmund Young has commented that Management has been one of the most ubiquitous and misused words in the 20th century English. Civil engineers discuss river basin management and coastal management, doctors discuss disease management and AIDS management, and garbage collectors are now waste management experts.

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Mary Parker Follett defines Management is the art of getting things done through people. The two major drawbacks of the definition are: i. It defines Management merely as an art. Art involves the application of knowledge, where as in Management apart from applying it also includes acquisition of knowledge. ii. It does not define other functions of Management apart from getting things done. The definition given by George R Terry is detailed one which states that The management is a process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish the objectives by the use of people and resources
Following are the Management definitions of a few scholars:

Frederick W Taylor, a man with a production background, where efficiency plays an important role
has defined it as the art of knowing what you want to do and seeing that it is done in the best and cheapest way.

Stanley Vance from the point of view of decision making has defined management as simply the
process of decision making and control over the action of human beings for the expressed purpose of attaining pre- determined goals.

John Mee defines management is the art of securing maximum results with minimum effort so as to
secure maximum prosperity and happiness for both employer and employee and giving the public the best possible service. From the above definitions, we can summarize the definition as follows: o Management is a continuous process; o Many different albeit inter related activities are performed by managers to achieve the stated goals; o The aim of managing is to create a surplus i.e. to be effective and efficient.

Management Functions or The Process of Management:

There are several methods of stating the different functionalities of the management. Several authors have stated it in several manners. Notable among them are listed here as follows: Newmann & Summer (The Process of Management): recognize 4 functions, viz, Organizing, Planning, Leading and Controlling. Henri Fayol (General and Industrial Management): recognize 5 functions viz, Planning, Organizing, Commanding, Coordinating and Controlling. Luther Gulick (Papers on the Science of Management): recognizes 7 functions viz, Planning, Organizing, Staffing, Directing, Coordinating, Reporting and Budgeting. Koontz & ODonnell (Principles of Management: An Analysis of Managerial Functions) recognize 5 functions viz, Planning, Organizing, Staffing, Directing and Controlling. For our discussion purpose, we can consider 4 functions of management: I. Planning II. Organizing III. Directing IV. Controlling Another 2 additional functions are also considered, viz, I. Innovation II. Representation I. Planning: Is that function that determines in advance the activities to be carried out.

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It is concerned with preparing for the future: deciding the business objectives and charting out the methods of achieving these objectives. The function is carried out at all levels of managements (i.e., from organizational level to the sub unit of organization levels such as departments or divisions) II. Organizing: It is concerned with providing the organization with all the resources: personnel, raw materials, tools, capitals. The process of organization can be further classified as Human & Material Organizing.

Staffing is also addressed by this functionality. The roles under staffing are as follows: o To recruit and maintain sufficient manpower. o Selection and training of future mangers.

III. Directing: This function is known by several other names- leading, motivating, actuating, etc. The function involves explaining the job to the employees and to see to it that they complete it It has three sub functions: Communication, Leadership and Motivation.

person.

Communication is the process of transferring information and knowledge from person to Leadership is the process of guiding and influencing the work of employees by the senior officer, like manager. Motivation involves arousing the desires of employees to do their best, inspiring the employees.

IV.

Controlling:

This function involves ensuring that the work is been carried out as per the plans adopted, as
per the instructions and following the established standards. It involves the following three elements: I. Establishing standards of performance. II. Measuring current performance and comparing it with the established standards.

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III. Taking action to correct any performance that does not meet with the standards.

Innovation: Representation:

In the present competitive market, for the organization to survive it has to grow better. For this endeavor, innovation is necessary. It involves either developing new products or finding new uses to the old products.

A manager has to represent the organization to the outside groups.

These groups can be government officers, labour unions, financial institutions, suppliers, customers, etc.

To summarize, the management process can be viewed as an operational process and its functions as its sub-processes, which act in a circular continuous manner.

These sub-processes have no clear cut separate entity or in another words there is no line of demarcation defining, where one sub-function ends and the other one starts.

Roles of Management:
Mintzberg, after a careful study has identified ten different roles of managers under three broad categories: Interpersonal Roles: 1. The figurehead role (performing ceremonial/social duties as the organizations chief) 2. The leader role (to motivate and encourage his team employees) 3. The liaison role (particularly communicating with the outsiders) Informational Roles: 1. The monitor role (receiving information about the organization) 2. The disseminator role (passing information to subordinates) 3. The spokesperson role (transmitting information to those outside) Decision Roles: 1. The entrepreneurial role (the manager should proactively look out for innovative ideas to improve the organization) 2. The disturbance-handler role (must seek solutions for various unanticipated problems)

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3. The resource allocator role (divide work and delegate authority) 4. The negotiator role (dealing with various persons and groups of persons)

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A note of caution is that though this entire material focuses on the various functions of the managers relevant to his organization, one must not forget that the managers also operate in the environment external to the organization. As stated earlier, management is essential for any organization and managers are responsible for decision making for obtaining maximum results for the organization from the individual members. In doing so the managers carry out different managerial functions as described above.

Levels of Management:
There are various levels of managers as shown below even though each of them performs the same functions of planning, organizing, directing and controlling.

The first level management consists of foremen and white collar supervisors- they are just one step above the rank and file. The middle level management is a vast and diverse group consisting of plant managers, sales managers, personnel managers and other department heads. The top level management consists of the board chairman, the presidents, the executive vice presidents etc. The top level management coordinates with all the specialties and makes policies for the whole organization. The managers carry out different managerial functions. The degree of each function differs and a rough idea of the possible time spent on each function is shown below:

Managerial Skills:
Skill can be defined as an individuals ability to convert knowledge into action. Technical skill is knowledge of and proficiency in the methods, processes and procedures of the job. For example the supervisor of a welder should have the ability to teach him how to weld. Human skill is the skill to work with people. Conceptual skill is the ability to see and recognize significant elements in a situation.

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M&E Management: Is it a Science or an Art or a Profession?

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To enable to answer this, one has to look at the nature of the management. Like all other practices such as engineering, medicine, accountancy, human resources, public relations or even cricket, management is an art. However, managers can be better of by using systematically collected vast body of knowledge. The very existence of the body of knowledge and principles evolved on the basis of constant research, study and examination makes it eligible to be called as a science. Managers, like other practitioners learn by trial and error, and for reference they can always turn to the body of knowledge the basis for their practice. It is this knowledge that makes the management as a science and its practice is an art. Now a days management is also termed as profession. The characteristics of a profession are: Existence of an organized and systematic body of knowledge, Formalized methods of acquiring knowledge and skills, Existence of an apex level body with Professionalisation as its goal, Existence of an ethical code to regulate the behaviour of the members of the profession, Charging of fees based on service and A concern for social responsibilities. A close scrutiny of management as a profession reveals that it has a long way to go to have a universally acceptance of management as a profession. Unlike other profession such as medicine, law etc., the practice of management is not restricted to individuals with a special degree. Any one can manage and to quote Peter Drucker, no greater damage could be done to an economy or to any society than to attempt to professionalise management by licensing managers, for instance, or by limiting access to management to people with a special academic degree. Though many factors are responsible for the growing demand for professional managers and management as a profession has gained a firm footing in India as stated earlier, it has still a long way to go for universal acceptance as a profession. However one views management, be it as an art, a science or a profession, managers are there to stay and must be productive. Even though there is no unanimity on the measure of productivity, Koontz et al in their Essentials of Management define it as the output-input ratio within a time period with due consideration for quality. It can be expressed as follows: Productivity = outputs/inputs (within a time period, quality considered) Productivity means both being effective and efficient. Being efficient is the skill of achieving the goals with the least amount of inputs and being effective is the art of achieving the

Various Approaches to Management:

Analysis of management from various view points have to led to different approaches. They have been summarized as the following:

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Systems Approach to Management

Just as human body is formed of different interdependent systems so is also an organization. A change in any one of these systems may affect all or some other systems to varying degrees. This ripple effect influences the effectiveness of the organization. To understand the interactions and the consequences between the various systems of the organization the managers should posses the ability to get a perspective view. Treating an organization as formed of different Systems is known as systems approach. Systems theory was first applied in the fields of science and engineering. It also has found wide acceptance in the practice of management. A system can be defined as essentially a set or assemblage of things interconnected or interdependent, so as to form a complex unity. Cars, computers, television and radio sets are some examples of systems. There are two major types of systems: closed and open. A closed system has definite boundaries; it operates relatively independently and is not affected by the environment outside the system. Stand by generator is an example of a closed system. With its different systems working together in perfect harmony the generator continues to supply power as long as it has sufficient fuel supply without much regard to the external environment. An open system as the name implies, is characterised by its interaction with the external environment. Clearly, any business or other organization must be described by an open-system model that includes interactions between the enterprise and its external environment.

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The above shown figure is self explanatory. One important mechanism which makes the system to adapt and adjust to the changing conditions of its environment and to exercise control over its operations is feedback. As explained thus far, systems approach of management provides an integral approach to management. It views management in its totality. It helps in seeing the problems of the organization in wider perspective. This approach is more useful in managerial decision-making. Based on the systems approach, Talcot Parsons has suggested three meaningful levels in the hierarchy of complex organisations: Technical, Organisational and Institutional. The Technical Level is concerned with the actual production and distribution of products and services. It also includes activities like research and development, operation research and accounting. The Organisational Level coordinates and integrates work performance at the technical level. It is concerned with obtaining the continued flow of inputs into the system and maintaining the markets for the outputs from the system. The Institutional Level is concerned with relating activities of the organization to environmental system. It involves relating the organization to the needs the environment.

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