113A Principles of Management (FYBCA)

Unit 1. Nature and Process of Management

1.1. Definition, Nature and Features of Management
What is Management?
Management is the process of planning, organizing, leading, and controlling an
organization's resources to achieve specific goals efficiently and effectively. It involves
coordinating human, financial, and physical resources to ensure that an organization operates
smoothly and meets its objectives. Key functions of management include:
1. Planning: Setting goals and determining the best course of action to achieve them.
2. Organizing: Arranging resources and tasks to implement the plan.
3. Leading: Motivating and directing team members to work towards the organization's
goals.
4. Controlling: Monitoring progress and making adjustments as needed to stay on track.
Effective management is crucial for the success of any organization, whether it's a business,
nonprofit, or governmental entity.
In simple word
Management is the way people work together to achieve goals. It involves planning what
needs to be done, organizing resources, leading and motivating a team, and checking
progress to make sure everything is on track. In simple terms, it's about getting things done
efficiently and effectively.
DEFINITION OF MANAGEMENT
According to Siswanto management is the art and science of planning, organizing,
motivating, and controlling other people and working mechanisms to achieve goals.
Meanwhile, according to Terry in Nawawi management is the achievement of
organizational or company goals that have been determined using the hands of others.
According to the Big Indonesian Dictionary (KBBI), management is the effective use of
resources to achieve goals. From these various opinions, it can be concluded that
management is everything that is done to measure and manage various sources to achieve
goals effectively and efficiently.
The nature of management
The nature of management refers to the key characteristics and features that define the practice
of managing an organization. Management involves the process of planning, organizing, leading,
and controlling resources (people, finances, materials, etc.) to achieve organizational goals. The
nature of management can be understood through the following key aspects:
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1. Goal-Oriented
Management is focused on achieving specific organizational objectives. These goals could range
from increasing profitability, enhancing productivity, improving customer satisfaction, to
ensuring growth and sustainability. The key role of management is to direct efforts towards the
achievement of these goals.
2. Universal
Management is a universal activity that applies to all types of organizations—whether in
business, government, non-profits, or other sectors. While the specific tasks may differ based on
the context, the principles of management are generally the same across all organizations.
3. Continuous Process
Management is not a one-time event but an ongoing process that involves constant planning,
organizing, leading, and controlling. Managers must adapt to changing environments, challenges,
and opportunities, making it a continuous cycle of improvement.
4. Multidisciplinary
Management draws upon knowledge from a variety of disciplines, including economics,
sociology, psychology, and law. It is an integrated practice that applies various tools and
techniques to address problems and optimize organizational performance.
5. Dynamic
Management must be flexible and adaptable to the changing internal and external environment of
the organization. This includes responding to shifts in technology, market conditions, and
consumer preferences. The dynamic nature of management requires managers to be proactive
and capable of making timely decisions.
6. Integrative
Management involves coordinating and integrating various departments, resources, and functions
within the organization. It requires effective communication and collaboration across different
levels of the organization to achieve common objectives.
7. Social Process
Management is a people-centered activity. It involves working with and through people to
achieve organizational goals. Effective management requires understanding human behavior,
motivating employees, fostering teamwork, and building strong relationships within the
organization.
8. Decision-Making
At its core, management involves decision-making at all levels. Whether it is strategic decisions
made by top-level managers or operational decisions made by lower-level managers, decision-
making is a crucial aspect of the management process.
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9. Leadership
Management involves leading people to ensure they are motivated, directed, and aligned with the
goals of the organization. Leadership in management means inspiring employees, fostering a
positive organizational culture, and guiding them toward success.
10. Efficiency and Effectiveness
A key objective of management is to balance efficiency (doing things right) and effectiveness
(doing the right things). Managers are tasked with making optimal use of resources while
ensuring the organization is moving toward its goals.
In conclusion, the nature of management is inherently dynamic, goal-driven, and integrative, and
it requires an understanding of both the technical and human aspects of organizational operations.
Managers must be skilled in decision-making, problem-solving, leadership, and adapting to changing
circumstances to drive organizational success.

Feature of Management

Post-learning a few definitions of management we come across some elements that can be
referred to as basic aspects of management

Management is a goal-oriented method: An establishment has a predefined set of

fundamental goals which are the primary basis for its being. These must be easy and
explicitly mentioned. Different establishments have various goals. For instance, the aim of a
retail market may be to improve sales, but the purpose of The Spastics Society of India is to
allow education to children with specific requirements. Management strengthens the energies
of different individuals in the company towards accomplishing these goals.

Management is all common: The activities associated with managing a firm are familiar to
all companies whether financial, cultural or civic. A petrol pump must be regulated as much
as a school or a hospital. What managers do in India, Japan, Germany, or the USA is
identical. How they achieve it may be considerably diverse. This variation is due to the
distinctions in tradition, history and culture.

Management is a perpetual process: The method of management is a set of consecutive,

composite, but distinct purposes (organizing, planning, staffing, controlling and directing).
These operations are concurrently executed by all managers. The responsibility of a manager
comprises a continuous series of duties.

Management is intangible energy: It is an intangible strength that can’t be seen but its
proximity can be felt in the form of the business operations. The outcome of management is
remarkable in an industry where targets are reached according to procedures, employees are
comfortable and content and there are arrangements rather than confusion.
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Management is a group activity: It implies that it is not a single person who completes all
the actions of the industry but it is always a group of people. Therefore, management is a
group endeavor

1.2. Management-Science or Art

Management as a Science
Science is a systematic body of knowledge pertaining to a specific field of study that contains
general facts which explains a phenomenon. It establishes cause and effect relationship between
two or more variables and underlines the principles governing their relationship. These principles
are developed through scientific method of observation and verification through testing.

Science is characterized by following main features:

1. Universally acceptance principles - Scientific principles represents basic truth about a

particular field of enquiry. These principles may be applied in all situations, at all time
& at all places. E.g. - law of gravitation which can be applied in all countries irrespective
of the time.

Management also contains some fundamental principles which can be applied

universally like the Principle of Unity of Command i.e. one man, one boss. This
principle is applicable to all type of organization - business or nonbusiness.

2. Experimentation & Observation - Scientific principles are derived through scientific

investigation & researching i.e. they are based on logic. E.g. the principle that earth goes
round the sun has been scientifically proved.

Management principles are also based on scientific enquiry & observation and not
only on the opinion of Henry Fayol They have been developed through experiments &
practical experiences of large no. of managers. E.g. it is observed that fair
remuneration to personal helps in creating a satisfied work force.

3. Cause & Effect Relationship - Principles of science lay down cause and effect
relationship between various variables. E.g. when metals are heated, they are expanded.
The cause is heating & result is expansion.

The same is true for management, therefore it also establishes cause and effect
relationship. E.g. lack of parity (balance) between authority & responsibility will lead
to ineffectiveness. If you know the cause i.e. lack of balance, the effect can be
ascertained easily i.e. in effectiveness. Similarly, if workers are given bonuses, fair
wages they will work hard but when not treated in fair and just manner, reduces
productivity of organization.

4. Test of Validity & Predictability - Validity of scientific principles can be tested at any
time or any number of times i.e. they stand the test of time. Each time these tests will
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give same result. Moreover, future events can be predicted with reasonable accuracy by
using scientific principles. E.g. H2 & O2 will always give H2O.

Principles of management can also be tested for validity. E.g. principle of unity of
command can be tested by comparing two persons - one having single boss and one
having 2 bosses. The performance of 1 st person will be better than 2nd.
It cannot be denied that management has a systematic body of knowledge but it is not as exact as
that of other physical sciences like biology, physics, and chemistry etc. The main reason for the
inexactness of science of management is that it deals with human beings and it is very
difficult to predict their behavior accurately.

Since it is a social process, therefore it falls in the area of social sciences. It is a flexible science
& that is why its theories and principles may produce different results at different times and
therefore it is a behavior science. Ernest Dale has called it as a Soft Science.

Management as an Art
Art implies application of knowledge & skill to trying about desired results. An art may be
defined as personalized application of general theoretical principles for achieving best possible
results. Art has the following characters -

1. Practical Knowledge: Every art requires practical knowledge therefore learning of

theory is not sufficient. It is very important to know practical application of theoretical
principles.

E.g. to become a good painter, the person may not only be knowing different color
and brushes but different designs, dimensions, situations etc. to use them
appropriately.

A manager can never be successful just by obtaining degree or diploma in

management; he must have also know how to apply various principles in real
situations by functioning in capacity of manager.

2. Personal Skill: Although theoretical base may be same for every artist, but each one
has his own style and approach towards his job. That is why the level of success and
quality of performance differs from one person to another. E.g. there are several
qualified painters but M.F. Hussain is recognized for his style. Similarly, management
as an art is also personalized.

Every manager has his own way of managing things based on his knowledge,
experience and personality, that is why some managers are known as good managers
(like Aditya Birla, Rahul Bajaj) whereas others as bad.

3. Creativity: Every artist has an element of creativity in line. That is why he aims at
producing something that has never existed before which requires combination of
intelligence & imagination.
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Management is also creative in nature like any other art. It combines human and non-
human resources in useful way so as to achieve desired results. It tries to produce
sweet music by combining chords in an efficient manner.

4. Perfection through practice: Practice makes a man perfect. Every artist becomes more
and more proficient through constant practice. Similarly, managers learn through an art
of trial and error initially but application of management principles over the years makes
them perfect in the job of managing.
5. Goal-Oriented: Every art is result oriented as it seeks to achieve concrete results. In
the same manner, management is also directed towards accomplishment of pre-
determined goals. Managers use various resources like men, money, material,
machinery & methods to promote growth of an organization.

Thus, we can say that management is an art therefore it requires application of certain principles
rather it is an art of highest order because it deals with moulding the attitude and behavior of
people at work towards desired goals.

Management as both Science and Art

Management is both an art and a science. The above mentioned points clearly reveals that
management combines features of both science as well as art.

It is considered as a science because it has an organized body of knowledge which contains

certain universal truth. It is called an art because managing requires certain skills which are
personal possessions of managers.

Science provides the knowledge & art deals with the application of knowledge and skills.

A manager to be successful in his profession must acquire the knowledge of science & the art of
applying it. Therefore, management is a judicious blend of science as well as an art because it
proves the principles and the way these principles are applied is a matter of art.

Science teaches to ’know’ and art teaches to ’do’. E.g. a person cannot become a good singer
unless he has knowledge about various ragas & he also applies his personal skill in the art of
singing. Same way it is not sufficient for manager to first know the principles but he must also
apply them in solving various managerial problems that is why, science and art are not mutually
exclusive but they are complementary to each other (like tea and biscuit, bread and butter etc.).
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The old saying that “Manager are Born” has been rejected in favor of “Managers are
Made”. It has been aptly remarked that management is the oldest of art and youngest of science.
To conclude, we can say that science is the root and art is the fruit.

Management as a Profession
Over a large few decades, factors such as growing size of business unit, separation of ownership
from management, growing competition etc. have led to an increased demand for professionally
qualified managers. The task of manager has been quite specialized. As a result of these
developments the management has reached a stage where everything is to be managed
professionally.

A profession may be defined as an occupation that requires specialized knowledge and intensive
academic preparations to which entry is regulated by a representative body. The essentials of a
profession are:

1. Specialized Knowledge - A profession must have a systematic body of knowledge that

can be used for development of professionals. Every professional must make deliberate
efforts to acquire expertise in the principles and techniques. Similarly, a manager must
have devotion and involvement to acquire expertise in the science of management.
2. Formal Education & Training - There are no. of institutes and universities to impart
education & training for a profession. No one can practice a profession without going
through a prescribed course. Many institutes of management have been set up for
imparting education and training.

For example, a CA cannot audit the A/C’s unless he has acquired a degree or diploma
for the same but no minimum qualifications and a course of study has been prescribed
for managers by law. For example, MBA may be preferred but not necessary.

3. Social Obligations - Profession is a source of livelihood but professionals are primarily

motivated by the desire to serve the society. Their actions are influenced by social norms
and values. Similarly, a manager is responsible not only to its owners but also to the
society and therefore he is expected to provide quality goods at reasonable prices to the
society.

4. Code of Conduct - Members of a profession have to abide by a code of conduct which

contains certain rules and regulations, norms of honesty, integrity and special ethics.
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A code of conduct is enforced by a representative association to ensure selfdiscipline

among its members. Any member violating the code of conduct can be punished and
his membership can be withdrawn. The AIMA has prescribed a code of conduct for
managers but it has no right to take legal action against any manager who violates it.

5. Representative Association - For the regulation of profession, existance of a

representative body is a must. For example, an institute of Charted Accountants of India
establishes and administers standards of competence for the auditors but the AIMA
however does not have any statuary powers to regulate the activities of managers.

From above discussion, it is quite clear that management fulfills several essentials of a
profession, even then it is not a full-fledged profession because: -

a. It does not restrict the entry in managerial jobs for account of one standard or other.
b. No minimum qualifications have been prescribed for managers.
c. No management association has the authority to grant a certificate of practice to various
managers.
d. All managers are supposed to abide by the code formulated by AIMA,
e. Competent education and training facilities do not exist.
f. Managers are responsible to many groups such as shareholders, employees and society.
A regulatory code may curtail their freedom.
g. Managers are known by their performance and not mere degrees.
h. The ultimate goal of business is to maximize profit and not social welfare. That is why
Haymes has rightly remarked, “The slogan for management is becoming - ’He who
serves best, also profits most’.”

1.3. Management as Profession

Management as a Profession:

The profession can be described as an occupation upheld by specific education and practice, in
which entry is limited. A profession has the following features:

• The well-defined theory of knowledge: All services are based on a well-defined form of
education that can be procured through education.
• Restricted entry: The entrance to a profession is defined through an examination or
through obtaining an educational degree. For instance, to become a chartered accountant
in India an aspirant has to clear a detailed examination regulated by the Institute of
Chartered Accountants of India (ICAI).
• Professional community: All professions are affiliated to a professional association
which controls entry, presents a certificate of training and expresses and supports a
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system of government. To be qualified to study in India, lawyers have to become

members of the Bar Council which monitors and regulates their actions.

Comparison to Other Professions

To clarify management's status as a profession, it is useful to compare it to traditional

professions like medicine or law:

• Specialized Knowledge: Like doctors or lawyers, managers need to master specific

knowledge, though it may be less standardized than in medicine or law.
• Code of Ethics: Management has ethical codes, but they might not be as universally
defined or as strictly enforced as in professions like law.
• Educational Qualifications: While management professionals often hold degrees or
certifications, the requirements are generally more flexible than those for doctors or
lawyers.
• Regulation: Management is not as heavily regulated as fields like medicine or law,
where licensing is mandatory.

Challenges in Recognizing Management as a Profession

While management is widely regarded as a profession, it faces challenges in being treated with
the same degree of formality and regulation as other professions:

• Lack of Uniform Standards: Unlike fields like law or medicine, which have strict
licensing requirements, management lacks universally enforced professional standards
across countries.
• Varying Education Requirements: There are no standard or compulsory qualifications
for managers, and the education system for management is highly diverse across
institutions.
• Wide Range of Responsibilities: Management encompasses various roles (strategic,
operational, human resource management, etc.), making it harder to define as a single
profession with universally applicable standards.

Management, while not as regulated as traditional professions, is increasingly viewed as a

distinct profession. With its specialized knowledge, ethical standards, professional development,
and recognition as a key driver of organizational success, management continues to mature into a
profession that plays a pivotal role in society. As businesses and organizations grow more
complex, the need for skilled, ethical managers will continue to reinforce the importance of
management as a profession.
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1.4. Functions of Management

Management has been described as a social process involving responsibility for economical and
effective planning & regulation of operation of an enterprise in the fulfillment of given purposes.

It is a dynamic process consisting of various elements and activities. These activities are
different from operative functions like marketing, finance, purchase etc. Rather these activities
are common to each and every manger irrespective of his level or status.
Different experts have classified 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.

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.
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1. 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.

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 nonhuman

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/woman on right job i.e. square
pegs in square holes and round pegs in round holes.
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According to Koontz & 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 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:
I. Supervision- implies overseeing the work of subordinates by their superiors. It is the act of
watching & directing work & workers.
Ii .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.
iii. Leadership- may be defined as a process by which manager guides and influences the work
of subordinates in desired direction.
iv. 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.
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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:
Establishment of standard performance.
a. Measurement of actual performance.
b. Comparison of actual performance with the standards and finding out deviation if any.
c. Corrective action.

1.5. Nature of Management Functions

The nature of management functions refers to the key activities that managers undertake to
effectively run an organization. These functions are foundational to the practice of management
and provide a framework for ensuring that an organization achieves its objectives. The main
functions of management are traditionally divided into five core areas: planning, organizing,
leading, controlling, and coordinating (in some models). These functions are interrelated and
not sequential, meaning they often occur simultaneously or in an iterative manner.

Here’s a detailed look at the nature of the management functions:

1. Planning

Nature: Planning is the first and most fundamental function of management. It involves
determining organizational goals, formulating strategies, and deciding the actions required to
achieve those goals. The planning function sets the direction for the entire organization.

• Characteristics:
o Goal-oriented: Planning focuses on identifying and achieving the organization's
objectives.
o Forward-looking: It requires forecasting and anticipating future challenges or
opportunities.
o Decision-making: It involves making decisions about what actions to take, when,
and how.
o Uncertainty and Flexibility: While planning is essential, it must be flexible
enough to adapt to changing circumstances.
• Types of Plans:
o Strategic Plans: Long-term and high-level plans that guide the direction of the
organization.
o Tactical Plans: Medium-term plans to implement parts of the strategy.
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o Operational Plans: Short-term, specific actions needed for day-to-day

operations.

2. Organizing

Nature: Organizing refers to arranging resources (human, financial, technological, etc.) and
tasks in a way that enables the organization to achieve its goals. This function involves defining
roles, assigning responsibilities, and structuring the organization in terms of hierarchy and
departments.

• Characteristics:
o Resource Allocation: It ensures that resources are distributed efficiently across
various tasks.
o Establishing Relationships: It defines the relationships between different roles
and departments within the organization.
o Building Structure: Organizing involves creating an organizational structure that
supports the overall goals.
• Key Elements:
o Division of Labor: Breaking tasks into manageable units to enhance efficiency.
o Delegation of Authority: Giving managers and employees the authority to carry
out their duties effectively.
o Coordination: Ensuring that the different parts of the organization work together
smoothly.

3. Leading (Directing)

Nature: Leading, also known as directing, is the function that involves guiding, motivating, and
inspiring employees to work towards organizational goals. It focuses on influencing people’s
behavior, improving their performance, and creating a positive work culture.

• Characteristics:
o Motivation: Leaders must understand the needs and aspirations of employees and
inspire them to achieve the organization's goals.
o Communication: Effective communication is critical in leading people, ensuring
that expectations are clear and feedback is given.
o Teamwork: Leading involves fostering teamwork, collaboration, and conflict
resolution to achieve collective objectives.
o Influence: Leaders use various techniques (such as leadership styles) to influence
and guide employees.
• Key Aspects of Leadership:
o Decision-Making: Leaders make day-to-day decisions, guide teams, and resolve
issues.
o Empowerment: Enabling employees to take ownership and make decisions,
creating a sense of responsibility.
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4. Controlling

Nature: Controlling is the function that ensures organizational activities are going as planned. It
involves monitoring performance, comparing actual results with the planned objectives,
identifying deviations, and taking corrective actions if necessary.

• Characteristics:
o Performance Monitoring: Tracking progress and performance against set goals.
o Feedback Mechanism: Providing feedback to individuals and teams to ensure
they stay on track.
o Corrective Action: When performance deviates from the plan, controlling
involves adjusting processes, reassigning resources, or revising strategies.
• Key Elements of Control:
o Setting Standards: Establishing performance benchmarks to guide operations.
o Measuring Performance: Using metrics and KPIs (Key Performance Indicators)
to assess performance.
o Taking Corrective Action: Implementing steps to correct discrepancies and
improve performance.

5. Coordinating (Some Models)

Nature: In some models of management, coordinating is considered a separate function. It

focuses on aligning all the activities and resources within the organization to ensure that different
departments and individuals work together harmoniously.

• Characteristics:
o Ensuring Harmony: Coordination ensures that activities in different departments
do not conflict and that all efforts align with the organization’s goals.
o Communication: Effective coordination requires clear communication channels
across all levels of the organization.
o Integrating Efforts: Managers must make sure that efforts in different areas of
the organization are integrated to achieve the common objectives.

Interrelationship Between Management Functions

The functions of management are interdependent and often overlap. For example:

• Planning is the foundation for organizing and leading because the organization’s
structure and direction depend on the plan.
• Leading is based on the plan and the structure created in the organizing phase. It requires
motivating employees to follow the set plan.
• Controlling ensures that the planning and organizing functions are being carried out
effectively and that leadership efforts are producing the desired outcomes.
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The nature of management functions is holistic and cyclical, meaning that all functions are
connected and work together to drive organizational success. Whether it’s setting the right
direction (planning), arranging resources effectively (organizing), motivating people (leading), or
ensuring results meet expectations (controlling), these functions ensure that managers can lead
an organization efficiently and effectively. These functions are not linear but are performed
simultaneously, often requiring adjustment and continuous improvement.

1.6 Functions at Various Management Levels

Meaning of Management
Management is the process of coordination and administration of tasks that is required to achieve
the goals of the organization. It is also referred to as the art of making things happen with the
help of resources.
Management is required for an established life and is essential for managing all types of
organizations. A sound management system is the fortitude of thriving companies. Managing life
implies getting everything done to accomplish the aspirations of life and maintaining an
establishment. This means getting things done with and by other people to fulfill its objectives.
To put it in other words, the organization and coordination of the pursuits of an industry for the
idea of accomplishing determined objectives efficiently and thoroughly are marked as
management.
This authoritatively obligatory association connects individuals as subordinates and superiors
and gives rise to distinct degrees in an establishment. There are 3 levels in the ranking order of
an establishment and they are:
1. Top-level management
2. Middle-level management
3. Lower-level management
Let us discuss these management levels in detail in the following lines.
Top Level Management
They comprise of the senior-most executives of the company. They are normally regarded as the
Chairman, the Chief Executive Officer (CEO), the Chief Operating Officer (COO), President and
Vice-president (VP). Top management is a team consisting of managers from various operational
levels, managing marketing, finance, etc., For instance, Chief Finance Officer (CFO), Vice
President (marketing) whose primary task is to combine various components and regulate the
actions of different units according to the overall objectives of the company.
These top-level managers are accountable for the progress and continuation of the establishment.
They investigate the trading atmosphere and its connections for the survival of the company.
They form the overall organizational aims and approaches for their accomplishment. They are
held responsible for all the pursuits of the company and for its influence on the society. The job
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of the top manager is difficult and stressful, necessitating long hours and dedication to the
company.
Middle Level Management
It is the connection between top and lower level managers. They are lower to the top managers
and above to the first line managers. They are normally called as division heads, for instance,
Production Manager. Middle management is accountable for executing and regulating systems
and manoeuvrings generated by the top management.
At the same time, they are liable for all the actions of the first-line managers. Their principal task
is to bring out the plans formed by the top managers. For this purpose, they have to:
Understand the procedures outlined by the top management
Guarantee that their staff has the required workers
Designate certain tasks and duties to them, and drive them to accomplish the aspired objectives.
Interact with other departments for the stable operation of the company. At the same time, they
are subject to all the actions of the first-line managers.

Lower Level Management

Managers and supervisors make up the lower level of the management in the hierarchy of the
business. Supervisors immediately manage the efforts of the workforce. Their power and ability
are defined according to the maps drawn by the top management.

a) Top level management

This level of management consists of the senior most executive level of an organization.
Their chief task is to lay down overall goals, policies, and strategies for the organization and to
communicate with the middle level of management.
Following are the main designations assigned to individuals working at this level:

1. Managing Director
2. Board of Directors
3. Chairperson
4. Chief executive Officers
5. Chief product Officers
6. Chief technology Officers
Functions performed at top level of management are:

1. Making strategies and goals for the organization.

2. Taking decisions regarding activities to be performed.
113A Principles of Management (FYBCA)

3. Framing policies for the organization.

4. Responsible for welfare and survival of the organization.
(b) Middle level management
This level of management consists of executives working between top-level and supervisory
level.
They interpret and implement the policies, coordinate all activities, ensure availability of
resources and execute the policies framed by top-level management.
They consist of:

1. Divisional heads and sub-divisional heads.

2. Departmental heads like purchase manager, sales manager, finance manager, personnel
manager etc.
3. Plant superintendent.

Functions performed at the middle level of management are:

1. Interpret the policies to lower management.

2. Taking decisions regarding the number of personnel in the department.
3. Assigning duties and responsibilities to employees in their department.
4. Convey suggestions and grievances of the supervisory level to the top level for the
overall smooth functioning of the organization.
5. Liable for the ultimate production of respective departments.
6. To act as a link between the lower level and the management.

(c) Lower level management Supervisory/Lower/Operational level management

This level of management operates between middle-level management and operative workforce.

This level consists of

1. Supervisors
2. Foremen
3. Inspectors

Functions performed at the lower level of management are:

1. Providing on the job training to the workers

2. Ensuring the good performance of the workers
3. Giving feedback to the workers
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4. Influence others to work more by setting an example

5. Responsible for group unity
6. Act as a link between the management and the workers

• Summary
• Each management level has distinct functions that contribute to the overall success of the
organization. Top-level management focuses on strategic direction, middle management
ensures that strategies are implemented effectively, and lower-level management is
concerned with operational execution and employee management.