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Friday, January 7, 2011

Meanings of Management

The term ‘management’ encompasses an array of different functions undertaken to accomplish a task successfully. In the simplest of terms, management is all about ‘getting things done’. However, it is the way and the process of how one achieves ones target or goals and it is in this respect that management is considered an art and a science as well.

The term management may be recently defined, but it existed at a time when men started learning the art of organizing, strategizing (during wars) and/or simply planning. At the core of it, management was quintessentially considered as an art of ‘managing men’ and hence the term “manage-men-T.”
Management in all business and organizational activities are the acts of getting people together to accomplish desired goals and objectives efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources.
Rousseau (1972) pointed out “A real knowledge of things may be a good thing in itself, but the knowledge of men and their opinions is better, for in human society.”
Peter Drucker (1993) defined management as “Supplying knowledge to find out how existing knowledge can best be applied to produce results is, in effect, what we mean by management. But knowledge is now also being applied systematically and purposefully to determine what new knowledge is needed, whether it is feasible, and what has to be done to make knowledge effective. It is being applied, in other words, to systematic innovation.”
Management today combines creative, business, organizational, analytical and other skills to produce effective goal-oriented results! Some of the key functions in management includes learning to delegate, planning and organizing, communicating clearly, controlling situations, motivating employees, adapting to change, constantly innovating and thinking of new ideas, building a good team and delivering results which are not just figure -bound but results that also focus on overall growth and development.
Management focuses on the entire organization from both a short and a long-term perspective. Management is the managerial process of forming a strategic vision, setting objectives, crafting a strategy and then implementing and executing the strategy.
Approaches
In general terms, there are two approaches to management:

-The Industrial Organization Approach: This approach is based on economic theory which deals with issues like competitive rivalry, resource allocation, economies of scale. This approach to management assumes rationality, self interested behavior, profit maximization.

- The Sociological Approach: This approach deals primarily with human interactions. It assumes rationality, satisfying behavior, profit sub-optimality.

Management theories can also be divided into two sets. One is the set that concentrates mainly on efficiency and another is the set that concentrates mainly on effectiveness. Efficiency is about doing things the right way. It involves eliminating waste and optimizing processes. Effectiveness is about doing the right things.
Basic functions
Management operates through various functions, often classified as planning, organizing, staffing, leading/directing, and controlling/ monitoring, Motivation .i.e
  • Planning: Deciding what needs to happen in the future (today, next week, next month, next year, over the next 5 years, etc.) and generating plans for action.
  • Organizing: (Implementation) making optimum use of the resources required to enable the successful carrying out of plans.
  • Staffing: Job analyzing, recruitment, and hiring individuals for appropriate jobs.
  • Leading/Directing: Determining what needs to be done in a situation and getting people to do it.
  • Controlling/Monitoring: Checking progress against plans.
  • Motivation: Motivation is also a kind of basic function of management, because without motivation, employees cannot work effectively. If motivation doesn't take place in an organization, then employees may not contribute to the other functions (which are usually set by top level management).
Hierarchy of Management
The management of a large organization may have about five levels:
  1. Senior management (or "top management" or "upper management")
  2. Middle management
  3. Low-level management, such as supervisors or team-leaders
  4. Foreman
  5. Rank and File
Top-level management
  • Require an extensive knowledge of management roles and skills.
  • They have to be very aware of external factors such as markets.
  • Their decisions are generally of a long-term nature
  • Their decisions are made using analytic, directive, conceptual and/or behavioral/participative processes
  • They are responsible for strategic decisions.
  • They have to chalk out the plan and see that plan may be effective in the future.
  • They are executive in nature.
Middle management
  • Mid-level managers have a specialized understanding of certain managerial tasks.
  • They are responsible for carrying out the decisions made by top-level management.
  • finance, marketing etc comes under middle level management
Lower management
  • This level of management ensures that the decisions and plans taken by the other two are carried out.
  • Lower-level managers' decisions are generally short-term ones.
Foreman / lead hand
  • They are people who have direct supervision over the working force in office factory, sales field or other workgroup or areas of activity.
Rank and File
  • The responsibilities of the persons belonging to this group are even more restricted and more specific than those of the foreman.

1 comment:

  1. very comprehensive work, it is appreciable. :)

    ReplyDelete