What Is Management.

What Is Management? Definition, Functions and Levels

Every company and organization needs effective management to fulfil business goals. There are different levels of management that aim to organize and coordinate the business functions of a company. If you are interested to become a manager, you have to learn more about what a manager does. In this article, we are going to discuss meaning, definition, functions and levels of management.

What is management?

Management is the administration of an organization, whether it is a business, a non-profit organization, or a government body. It is the art and science of managing resources of the business. Efficiency in management refers to the completion of tasks correctly and at minimal costs. Effectiveness in management relates to the completion of tasks within specific timelines to yield tangible results.

What Is Management? Definition, Functions and Levels

v Characteristics of management

Characteristics of management are as follows:

1. Management is goal oriented process:

Management always aims at achieving the organizational objectives. 'What Is Management? Definition, Functions and Levels'

The functions and activities of manager lead to the achievement of organizational objectives; for example, if the objective of a company is to sell 1000 computers then manager will plan the course of action, motivate all the employees and organize all the resources keeping in mind the main target of selling 1000 computers.

2. Management is Pervasive:

Management is a universal phenomenon. The use of management is not restricted to business firms only it is applicable in profit-making, non-profit-making, business or non-business organizations; even a hospital, school, club and house has to be managed properly. Concept of management is used in the whole world whether it is USA, UK or India.

3. Management is Multidimensional:

Most management oversees and supervises a company or organization's service or production cycle. Managers work closely with and provide guidance to the members of their team. A manager considers a staff member both as an individual with diverse needs and as a component of the larger group. To be effective, managers influence their team members to apply their unique strengths toward achieving the organization's goals.

4. Management is a continuous process:

Management is a continuous or never ending function. All the functions of management are performed continuously, for example planning, organizing, staffing, directing and controlling are performed by all the managers all the time. Sometimes, they are doing planning, then staffing or organizing etc. Managers perform ongoing series of functions continuously in the organization.

5. Management is a group activity:

Management always refers to a group of people involved in managerial activities. The management functions cannot be performed in isolation. Each individual performs his/her role at his/her status and department, and then only management function can be executed. Even the result of management affects every individual and every department of the organization so it always refers to a group effort and not the individual effort of one person.

6. Management is a dynamic function:

Management has to make changes in goal, objectives and other activities according to changes taking place in the environment. The external environment such as social, economic, technical and political environment has great influence over the management. As changes take place in these environments, same are implemented in organization to survive in the competitive world.

7. Intangible:

Management function cannot be physically seen but its presence can be felt. The presence of management can be felt by seeing the orderliness and coordination in the working environment. It is easier to feel the presence of mismanagement as it leads to chaos and confusion in the organization.

8. Composite process:

Management consists of series of functions which must be performed in a proper sequence. These functions are not independent of each other. They are inter-dependent on each other. As the main functions of management are planning, organizing, staffing, directing and controlling; organizing cannot be done without doing planning, similarly, directing function cannot be executed without staffing and planning and it is difficult to control the activities of employees without knowing the plan. All the functions inter-dependent on each other that is why management is considered as a composite process of all these functions.

9. Balancing effectiveness and efficiency:

Effectiveness means achieving targets and objectives on time. Efficiency refers to optimum or best utilization of resources. Managements always try to balance both and get the work done successfully. Only effectiveness and only efficiency is not enough for an organization: a balance must be created in both. For example, if the target of an employee is to produce 100 units in one month time and achieving the target by wasting resources and mishandling the machinery, will not be in the interest of organization. On the other hand, if the employee spends lot of time in handling the machine carefully and managing the resources carefully and fails to complete the target on time, it will also not be in the interest of organization. Manager sees to it that this target is achieved on time-and with optimum use of resources.

v Objectives of management

Management can have mainly three types of objectives:

Organizational objectives

Management should consider the interests of all company stakeholders, including employees, customers and the government. Managers are responsible for setting and achieving goals for the organization. Typically, the primary aim of an organization is to achieve growth by utilizing its human, material and financial resources. There are three general organizational objectives for any company:

• Survival: An organization needs to generate enough revenues to cover its operational costs.
• Profit: Profit provides incentive and is essential for covering unprecedented costs and risks associated with running a business.
• Growth: We can measure the growth of a business organization in terms of increases in sale of goods, workforce and capital investment.

Social objectives

To an extent, the management is also responsible to become beneficial for the society through its work. Companies choose to do this in different ways. Some organizations may find and implement eco-friendly methods of production, while others implement fair wages and opportunities. Large scale companies usually maintain or fund initiatives that provide basic amenities like healthcare and education. Based on the scale of their operations, companies often initiate CSR (Corporate Social Responsibility) campaigns that will help society in different ways.

Personnel objectives

The management typically decides the financial incentives, salaries, dividends, bonuses, perks and social initiatives for their employees and shareholders. Activities that improve peer recognition and interaction like corporate outings and holiday bonuses cater to the personnel's social growth and development.

v Importance of management

Here are some reasons management is important:

• Helps in achieving group goals: Effective management gives a common direction to individual efforts and guides them towards achieving the overall goals of an organization.
• Increases efficiency: Management creates healthy atmosphere and tries to increase efficiency of employees and workers. Efficiency reduces cost and build an organization strong in all spheres.
• Creates a dynamic organization: Management helps its personnel in adapting to change so that the organization continues to maintain its competitive edge. How well an organization can respond and adapt to change can mean the difference between its success and failure.
• Helps in achieving personal objectives: Effective management helps in maintaining team spirit, co-operation and commitment to achieve the organizational goals as a group, which helps each term member achieve their personal objectives.

 

v Levels of management

Basically, there are three levels of management:

1. Top management

Typically, the senior-most executives in a company are the chairman, chief executive officer, chief operating officer, president and vice-president. Their role lies in integrating diverse components of the company and coordinating activities of different departments. They also analyse the business environment and its implications to formulate goals in order to ensure the survival of the company and the welfare of its stakeholders.

2. Middle level management

Mostly composed of division heads, the middle management links the operational management to the top management. Division/department heads receive guidance from top managers and are leaders to operational managers. Their job is to understand the policies framed by the top management and relay them to their respective divisions/departments to ensure that they follow through with company policies and decisions.

3. Operational management/ Lower level management

Supervisors, section leads or forepersons directly oversee the efforts of the workforce. They are responsible for quality control and ensure that the work meets deadlines. The top management draws out the plans that define the authority and responsibility of supervisors.

 

v Functions of management

The purpose of management is to unify the efforts of different individuals in an organization towards achieving predetermined goal. Following are some functions of management:

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 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 i.e. square pegs in square holes and round pegs in round holes. According to KOONTZ & O'Donnell, “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 inert-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- 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 Hayman, “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”.

Therefore controlling has following steps:

v  Establishment of standard performance.

v  Measurement of actual performance.

v  Comparison of actual performance with the standards and finding out deviation if any.

v  Corrective action.