Management : Management is a process of planning, organising, staffing, directing and controlling the activities towards the achievement of goal.
Effectiveness : Effectiveness refers to achieving goal/objective within standard time ignoring cost.
Efficiency : Efficiency refers to achieving goal/objective within standard time and standard cost.
Functions of Management :
1. Planning : Planning is simply a blueprint of the things to be done in future towards the achievement of goal.
2. Organising : Organising refers to arrangement of resources/funds and defining authority-responsibility relationship.
3. Staffing : Staffing refers to choosing the right candidate for the right job.
4. Directing : Directing refers to instructing, leading, supervising, communicating and motivating employees towards the achievement of goal.
5. Controlling : Controlling is a process of finding out deviations while comparing standard performance with actual performance and taking corrective measures.
Coordination : Apart from above mentioned functions coordination is also a very important function to synchronise the efforts and resources towards the achievement of goal.
Characteristics of Management:
1. Management is intangible : Management is a intangible force as its presence can be felt but can’t be seen. Management is noticeable from the way an organisation perform their functions. While visiting to an organisation if no chaos is there and all the things are going smoothly, usually we say that management is there. But can’t be seen ! when it comes to the question where it is ?
Examples : Piyush Goyal, Minister of Railways visited to Varanasi railway station and observed that all the things are going on in well-mannered way. Here he felt the presence of management as all the activities are going on in a managed way but he can’t see the management physically.
2. Management is all pervasive : Management is all pervasive as it is applicable everywhere whether it is USA or India, any type of organisation whether it is profitable or non-profitable and every activity whether it is sports or household.
Example : Indian hockey team captain manages his team, a housewife manages her family, a production manager manages his production unit, Prime Minister manages his cabinet, a principal manages his school, a teacher manages her classroom.
3. Management is multi-dimensional : Management is multi-dimensional as it is not related to any specific aspect. Management manages all the three dimensions of an organisation popularly known as 3 M’s Men (Employees), Machine (Capital) and Material (Physical resources). It manages employees to ensure their best outcome, manages capital to ensure its optimum utilisation and also manages physical resources to minimise the wastage.
Example : Chinese firms are dominating Indian market while keeping prices low. Firms are capable of keeping prices low only because they are managing employees efforts, ensuring optimum utilisation of capital and physical resources to ensure minimum wastage, which ultimately results in reducing cost.
4. Management is goal oriented : All the activities in management are undertaken towards the achievement of goal. It simply means management is like a dog who follows the goal. While setting the goal it should be keep in mind that goal should be achievable.
Example : Ashok Leyland has set a goal to be a market leader in commercial vehicle sector. For the purpose company came to know about the trending demand of electric buses by conducting a market research and made a plan accordingly. Company has announced to launch more than 20 variants by the end of the year 2019.
5. Management is a continuous process : Management is never ending process as it follows goal. Because after achieving one goal a new goal is set and the same process continued till the firm exist. All the functions of management planning, organising, staffing , directing and controlling are done on regular basis to ensure the achievement of goal.
Examples : Leading automobile manufacturer company Maruti Suzuki set a goal to be market leader in Asia in budget car segment by the end of 2025. Thus make a comprehensive plan, organize the things, recruited the positions, directed the personnel and monitor the performances. It doesn’t mean these things has to be done once but has to be performed repeatedly and regularly.
6. Management is a dynamic process : Business is not a bed of roses as it has to deal with the so many ups and downs. In order to be successful firm has to change itself with the changes in environment. While setting the goals and making plans enterprise has some pre-defined assumptions. But at the same time if changes occurred management adapts the changes and modify their goal and plan accordingly.
Examples : Paytm, a E-wallet and digital payment app was expecting a normal demand before demonetisation hence set the target and managed the things accordingly. But when government announced to demonetise the currency, Paytm took it as an opportunity thus changed the target and plans to grab it. Only because of the quick and positive respond to the changing environment Paytm became the leader.
7. Management is a group activity : Management doesn’t believe in one man army. All the individual in organisation work as a team unit, synchronise their efforts towards the achievement of a common goal.
Examples : Arnab,a Sales manager in Nokia is given a target to sell 2,00,000 mobile phones in a year. Now he called a meeting of all his subordinates assign them authority and responsibilities to ensure that target is achieved on time. He can’t achieve his target until he and his subordinates work as a team.
Objectives of Management :
1. Economic Objectives : A firm is primarily responsible for its own objectives. No firm can think about their employees or society or any stakeholder until it doesn’t achieve its economic objectives. Economic objectives includes Survival, profit and growth.
* Survival : The first economic objective of any firm is to survive in market. In order to earn profit it is necessary to be in market and for the purpose sometimes goods are sold below the cost in short term. If a firm has managed to survive then only it will earn profit.
Examples : At the entry level Reliance JIO was aware with the fact that it has to compete with the leader of communication sector Airtel. In the situation JIO didn’t thought of making profit. So JIO made a plan to be in market even at a loss in short term.
* Profit : No firm can manage to operate business in loss for long term. For long term survival profit is required. A firm has to take care of all their stakeholders’ interest and shareholder, one of the most important stakeholder can’t be satisfied with a continuous loss.
Examples : Bhushan Steels , a leading steel manufacturer forced to shut down and sell off their business after posting continuous loss. Shareholders of the Bhushan Steel were not ready to continue with company with loss.
* Growth : After achieving the first two economic objectives survival and profit every firm make an objective to expand their business operation offering variant of products and entering in new markets.
Examples : Airtel, key player in Indian communication market decided to enter in global market after achieving survival and growth stage in Indian market. This company is continuously working on expansion of business and now it has a strong presence in African and Asian market.
2. Social Objectives : A business is not operated in isolation so it is the responsibility of business to create economic value for society. Social objective of management refers to the responsibility towards the society.
* Using eco-friendly techniques.
* Generating employment opportunities.
* Development of infrastructure.
* Charging fair price.
* Avoiding black marketing, malpractices and adulteration.
* Providing education and health facilities to society.
* Giving preference to weaker section in employment.
Examples :
1. Tata group is running so many hospitals across the country.
2. Infrastructural development in Tata Nagar (Jamshedpur) by Tata Steels.
3. Personal Objectives : Employees of any organisation are the back bone for any organisation. No organisation can grow ignoring employees interest. Personal objectives refers to the commitment of management towards their employees.
* Providing fair wages and salary.
* Providing healthy working environment.
* Job security.
* Using labour intensive techniques.
* Giving social security.
Examples :
1. The founder of Ford Motors Henry Ford once said that even if I lost everything I will build a new empire if our employees are with us.
2. Savji Bhai Dholkia, a diamond trader gifted maruti car to all their employees as Diwali gift.
Importance of Management :
1. It helps in achieving firms goal : Management helps in achieving firms goal through the functions of management. Management ensure the synchronisation of efforts through coordination. It also emphasize on work through efficiency towards the completion of task within time while minimising cost.
2. Management helps in achieving social objectives : No organisation can survive while ignoring the interest and expectations of society. Business is using the resources of the society so it is our responsibility to take care of interest of society. While fulfilling the aim of greater profits and goodwill build up, management provides quality products at reasonable price. It also contribute a significant part of their profit for charitable works, education and health.
3. It helps in achieving personal objectives : Having good employee relation is very crucial for every organisation. A satisfied employee work harder, produce better work and ultimately keep the customers happy and business thriving. Management ensure to boost employees morale while providing fair wages and salary, healthy working environment, job security and respect. Because employees are the most valuable asset of the company.
4. It creates a dynamic environment : A business is highly affected by the changes in in technologies, fashions, government. Management creates a dynamic environment which help an organisation to cope up with the rapid changes in environment.
5. Management increases efficiency : In the age of cut throat competition every firm want to minimise their cost of production. Cost reduction techniques help a firm to dominate the market while keeping prices low. Management defines the authority and responsibility well in advance which improves the efficiency level of employees.
Levels of Management :
1. Top Levels of Management :
Positions : Chief executive officer, President, Vice President, Chairman, Chief executive officer, Director, General Manager.
Functions :
* Setting the goal and objective of business.
* Formulation of rules and policies.
* Formulation of Plans.
* Human resource management.
2. Middle Level of management :
Positions : Sales Manager, Production manager, human resource manager, finance manager, operation manager, factory heads.
Function :
* Interpretation of plans formulated by top level.
* Interpretation of policies formulated by top level.
* Recruitment and selection of personnel.
* Motivating employees.
* Carry out the policies and plans formulated by top level to lower level.
* Carry out the complaints and suggestions to top level.
3. Supervisory Level of Management :
Positions : Supervisor, Superintendent, Foreman, Line manager.
Functions :
* Ensure to implement policies and rules set up by top level.
* Maintaining discipline.
* Taking care of employees interest.
* Ensuring healthy working environment.
* Supervising and monitoring.
Management as a profession :
1. Systematic body of knowledge- Each professional whether he is Chartered Accountant, Advocate or teacher gain the knowledge as well apply it in a systematic and pre defined way. In the same way a manager gain the knowledge from various sources but apply it in a systematic way.
2. Restricted Entry : To be a professional one should have knowledge as well as degree. A person with excellent communication skill and knowledge of law can't be a lawyer if doesn't have law degree. But it is not essential to have a management degree to be a manager. But now firms are expecting a management degree from managers apart from knowledge.
3. Professional Association : All the professionals are affiliated to their respective associations, which issue guidelines, certificates and code of conduct Ex. Bar council for lawyers, ICAI for Chartered Accountants. In the same way All India Management Association regulate and issue guidelines to managers but it is not compulsory to abide by.
4. Code of conduct : All the professionals are bound by the code of conducts issued by their respective professional associations. Similarly All India Management Association (AIMA) issue the common code of conduct for the managers.
5. Service motive : All the professionals provides services to with motive of earning royalty or fees. Similarly a manager provide services in return of fess or profit.
Management as a Science-
1. Systematic body of Knowledge- In science knowledge is applied in a hierarchy which is based on cause and effect relationship. In the same way management activities are done following a hierarchy. Towards the achievement of goal firm has to follow some certain guidelines and activities are performed in predefined way.
2. Universal Validity- Scientific principles are universally applicable and are applicable in same absolute form. Management principles are also applicable universally but it can be modified as per situation. This is the reason management is science but not pure science.
3. Based on Experiments- Scientific principles are result of regular observation and repeated experiments. Management principles are also derived on regular observation and repeated experiments. Henry Fayol has observed so many problems in organization and find a solution of the problems and derived principles.
Management as an art-
1. Systematic body of knowledge- An artist should always have knowledge of basics theories related to that particular field and that knowledge should be applied in a systematic way. In the same way a manager should have knowledge of functions, activities and principles of management in order to be successful.
2. Personalised Application- Every artist has same theoretical knowledge but applied it in personalised way. Every singer has a knowledge of sare ga ma…… but it doesn’t mean that every singer has same style of singing. In the same way every manager has basic knowledge of functions, activities and principles of management but applied it as per situation in personalise way.
3. Based on practice and creativity- It is rightly said that practice makes a man perfect. It is applied in case of arts as regular practice help an artist to get perfection. An artist should also be enough creative in order to be a successful artist. Kishore Kumar is considered as the greatest male singer of Indian cinema but the same singer was initially rejected during the 1950s . But because of regular practice and creativity he touches the heights of success.
