LECTURE No – 9

MANAGEMENT

Meaning of Management

Management is the art of getting things done by a group of people with the effective utilization of
available resources. An individual cannot be treated as a managing body running any organization.
A minimum of two persons are essential to form a management. These persons perform the
functions in order to achieve the objectives of an organization.

Definition of Management

Peter F. Drucker defines, “Management is an organ; organs can be described and defined only
through their functions”.

Henry Fayol, “To manage is to forecast and plan, to organise, to compound, to coordinate and to
control”.

F.W. Taylor, “Management is the art of knowing what you want to do and then seeing that it is
done in the best and cheapest way”.

The American Management Association, “The art of getting things done through other people”.

Knootz and O’Donnel, “Management is the creation and maintenance of an internal environment
in an enterprise where individuals, working in groups, can perform efficiently and effectively
towards the attainment of group goals. It is the art of getting the work done through and with
people in formally organized groups”.

Ordway Tead, “Management is the process and agency which directs and guides the operations of
an organization in the realizing of established aims”.

Management is the group of activities which drafts plans, prepares policies and arranges
men, money, machine and materials required to achieve the objectives. Management is the process
consisting of the functions of planning, organizing, staffing, directing and controlling the
operations to achieve specified objectives.

Features or characteristics of management

1. Art as well as science: Management is both an art and a science. It is an art in the sense of
possessing of managing skill by a person. In another sense, management is the science
because of developing certain principles or laws which are applicable in a place where a
group of activities are coordinated.
2. Management is an activity: Management is the process of activity relating to the effective
utilization of available resources for production. The term ‘resources’ includes men,
money, materials and machine in the organization.
3. Management is a continuous process: The process of management mainly consists of
planning, organizing, directing and controlling the resources. The resources (men and
money) of an organization should be used to the best advantages of the organization and
the objectives to be achieved. The management function of any one alone cannot produce
any results in the absence of any other basic functions of Management. So, management is
a continuous process.
4. Management achieving pre-determined objectives: The objectives of an organization
are clearly laid down. Every managerial activity results in the achievement of objectives
fixed well in advance.
5. Organized activities: Management is a group of organized activities. A group is formed
not only in a public limited company but also in an ordinary club. All the organizations
have their own objectives. These objectives will be achieved only by a group of persons.
These persons activities should be organized in a systematic way to achieve the objectives.
The objectives cannot be achieved without any organized activities.
6. Management is a factor of production: The factors of production includes land, labour,
capital and entrepreneurs. Here, land refers to a place where production is carried on.
Labour refers to the paid employees of the organization who are working in different levels
as skilled, unskilled, semi-skilled manager, supervisor and the like. Capital refers to the
working capital as in the form of cash, raw materials and finished goods and fixed capital
as in the form of plant facilities and production facilities. These land, labour and capital
could not realize the organization’s goals. The organization goals are achieved only when
these are effectively coordinated by the entrepreneur. An individual can do such type of
job as in the case of small businesses. In the case of big sized business units, coordination
job is done by the management. So, management is also treated as one of the factors of
production.

7. Management as a system of activity: A system may be defined as a set of component

parts working as a whole. Authority may be defined as a right to command others for
getting a particular course of organizational work done.
 Individuals are the foundation stones of the management. An individual has some goals as
a member of the organization. There may be a conflict between his own goals and the
management’s expectations from that individual. Such conflict is resolved by the
management by ensuring balance between individual goals and organizational
expectations.
8. Management is a discipline: The boundaries of management are not exact as those of any
other physical sciences. It may be increased by the continuous discovery of many more
aspects of business enterprise. So, the management status as a discipline is also increased
in the same manner.
9. Management is a purposeful activity: Management is concerned with achievement of
objectives of an organization. These objectives are achieved through the functions of
planning, organizing, staffing, directing, controlling and decision-making. The
organizational objectives are clearly defined and explained to every employee.
10. Management is a distinct entity: Management is distinct from its functional activities.
The functions have the nature of “to do” but the management has the nature of “how to get
things done”. A manager requires some amount of skill and knowledge to get work done.
11. Management aims at maximizing profit: The available resources are properly utilized to
get desired results. The results should be the maximizing profit or increasing profit by the
economic function of a manager.
12. Decision – making: There are a number of decisions taken by the management every day.
Decision making arises only when there is availability of alterative courses of action. If
there is only one course of action, need for decision-making does not arise. The quality of
decision taken by the manager determines the organizations performance. The success or
failure of an organization depends upon the degree of right decision taken by the manager.
13. Management is a profession: Management is a profession because it possesses the
qualities of a profession. A fund of knowledge is imparted and transferred in this profession
and the same is followed by management. The established principles of management are
applied in practice.
14. Universal application: The principles and practices of management are applicable not to
any particular industry alone but applicable to every type of industry. The practice of
management is different from one organization to another according to their nature.
15. Management is getting thing done: A manager does not actually perform the work but
he gets things done by others. According to Knootz and O’Donnel, “management is the art
of getting things done through and with people in formally organized groups”.
16. Management as a class or a team: A class may be defined as a group of people having
homogenous characteristics to achieve common objectives. Engineers and doctors are
grouped as a class in a society. Each and every doctor has the same objectives in life. Just
like engineers and doctors, the management people have got similar aspirations to achieve
corporate objectives.
17. Management as a career: now-a-days, management is developed as a career focused on
certain specialization. Financial Management, Cash Management, Portfolio Management,
Marketing Management, Personnel Management, Industrial Management and Business
Management are some of the specializations of management. Specialists are appointed in
the key posts of top management.
18. Direction and control: A manager can direct his sub-ordinates in the performance of a
work and control them whenever necessary. If the available resources are not utilized
properly by him, he fails to achieve the corporate objectives in the absence of direction and
control. Generally, the direction and control deals with the activities of human effort.
19. Dynamic: The management is not static. In the fast developing business world, new
techniques are developed and adopted by the management. Management is changed
according to the social change. The social change is the result of the changing business
world.
20. Management is needed at all levels: The functions of management are common to all
levels of organization. The top executives perform the functions of planning, organizing,
directing, controlling and decision making. The same functions are also performed by the
lower level supervisor.
21. Leadership quality: Leadership quality is developed in the persons who are working in
the top level management. According to R.C. Davis, “Management is the function of
executive leadership everywhere”.

Functions of Management

1. Planning:
 Planning is the primary function of management. Nothing can be performed without
planning. Writing a book starts with planning.
 In short, planning refers to deciding in advance that which will be done in the near
 future.
 In the business world, the organization should achieve the objectives.
 In order to achieve objectives, the organization plans what is to be done, when it is to be done, how
it is tobe done, and by whom it is to be done.
 Messie says, “Planning Pervades Management”.
 George R. Terry has rightly said “Planning is a constructive reviewing of future needs so that
present actions can be adjusted in view of the established goal. It is deliberate conscious research
used to formulate the design and orderly sequence of actions through which it is expected to reach
objectives.
 Planning should take place before doing; most individual or group efforts are made by detraining
before any operative action takes place, what shall be done, where, how and who shall do it”.
2. Organizing:
 Organizing is the distribution of work in group wise or section wise for effective
performance.
 Organization provides all facilities which are necessary to perform the work.
 The business developed, the organization takes responsibility to create some more
departments under different managers. Hence, the organization divides the total work and
coordinates all the activities by authority relationship.
 Besides, organizing defines the position of each person in the organization and determines
the paths through which communication should flow. The manager would determine who
should report to whom and how.
 According to Henry Fayol, “Organization is of two kinds i,e. organization of the human
factor and organization of the material factor.
 Organization of the human factor coversthe distribution of work to those who are best
suitable along with authority and responsibility.
 Organization of the material factor covers utilization of raw materials, plant and machinery
etc”. According to Knootz and O’Donnell, “Organizing consist of conscious coordination
of people towards a desired goal.”
3. Staffing:
 Staffing function comprises the activities of selection and placement of competent
personnel. In other words, staffing refers to placement of right persons in the right jobs.
Staffing includes selection of right persons, training to those needy persons, promotion of
best persons, retirement of old persons, performance appraisal of all the personnel and
adequate remuneration of personnel. The success of any enterprise depends upon the
 successful performance of staffing function.
According to Harold Knootz and Cyril O’Donnell, “the managerial function of staffing
involves manning the organizational structure through proper and effective selection,
appraisal and development of personnel to fill the roles designed into the structure”.

4. Directing:
 The actual performance of a work starts with the function of Direction. Planning,
organizing and staffing functions are concerned with the preliminary work for the
achievement of organizational objectives.
 But the direction deals with making the workers learn techniques to perform the jobs
assigned to them.
 Direction includes guidance, supervision and motivation of employees.
 According to Joseph Massie, “Directing concerns the total manner in which a manager influences
the action of his subordinates. It is the final action of a manager in getting others to act after all
preparations have been completed”.

5. Coordinating:
 All the activities are divided group wise or selection wise under organizing function.
 Now such grouped activities are coordinated towards the accomplishment of objectives of
an organization.
 The difficulty of coordination depends upon the size of organization. The difficulty of
coordination is increased withthe increasing of the size of the organization.
 According to Knootz and O’Donnell, “the last coordination occurs when individuals see how
their jobs contribute to the dominant goals of the enterprise. This implies knowledge and
understanding of enterprise objectives”.

6. Motivating or actuating:
 The goals are achieved with the help of motivation.
 Motivation includes increasing the speed of performance of a work and developing a
willingness on the part of workers. This is done by an resourceful leader. The workers
expect favourable climate conditions to work, fair treatment, monetary or non- monetary
incentive, effective communication and gentlemen approach. According to Earl P. Strong,
“Motivating is the process of indoctrinating personnel with unity of purpose and the need
to maintain a continuous, harmonious relationship.
7. Controlling:
 Controlling function ensures that the achieved objectives conform to preplanned
objectives.
 Necessary corrective action may be taken if there is any deviation.
 The control is very easy whenever the organization has a fixed standard. A good system of
control has the characteristics of economy, flexibility, understanding and adequacy to
organizing needs”.
8. Innovation:
 Innovation refers to the preparation of personnel and organization to face the changes made
in the business world.
 Continuous changes are being made in the business. Consumers are satisfied through
innovation. Innovation includes developing new material, new products, new techniques in
production, new package, new design of a product and cost reduction.
9. Representation:
 A manager has to act as a representative of a company. He has dealings with customers,
suppliers, government officials, banks, financial institutions, trade unions and the like. It is
the duty of every manager to have good relations with others.

10. Decision making: Every employee of an organization has to take a number of decisionsevery
day. Decision making helps in the smooth functioning of an organization.

11. Communication: Communication is the transmission of human thoughts, views or

opinions from one person to another person. Workers are informed about what should be
done, where it is to be done, communication helps the regulation of job and coordinate the
activities.

Role of a Manager

Manager is responsible to integrate all the activities which are performed in an

organization. In otherwords, he has to coordinate the talents of people working under him
for the purpose of achieving the organizational goals. The role of a manager gets much
important than other executive in an organization. Hence, a manager’s job is very much
complex and requires some special qualities to be head.

1. Director: Managers gives direction to people working under him. Direction includes
instructions. Manager has to direct the executives towards achieving organizational
goals.

2. Motivator: Manager understands likes and dislikes of executives and motivate tham
accordingly. Motivation stimulates the performance of job. Here, the manager
 stimulatesthe executive through motivation.

3. Human being: Manager treats all the people working under him equally and no
personal bias. He has to mingle with others and understand the feeling of other
executive.

4. Guide: Manager should be well aware of using the equipment, techniques and
proceduresinvolved in performing specific tasks. If so, he can guide others whenever
a need arises.

5. Friend: Unnecessary misunderstanding may be arised among the executives. Now, the
manager should come forward voluntarily and eliminate the misunderstanding at the
earliest. Here, the manager is acting as a friend.

6. Planner: Day-to-day requirements of the organization has to be identified and arranged

by the manager. He has to plan the work and assign the same to the executives
according to their position held

7. Supervisors: Manager has to supervise and control, executives performance and

maintainpersonal contacts with them. He has to perform this work along with the work
to be performed by him.

8. Reporter: The feedback information is provided by the manager to the top

management people. Sometimes, workers’ problems have not been solved by the
manager. If so, the same should be communicated to the top authorities.