Management Concepts, Functions, and Roles

Posted on Feb 23, 2025 in Business Management

Management

What is Management?

Management is a process involving planning, organizing, directing, and controlling an organization’s resources.

Concepts of Management

There are five key concepts of management:

  • Function Concept: Management is what a manager does (planning, executing, and controlling).
  • Human Relation Concept: Management is the art of getting things done through and with people in organized groups.
  • Leadership and Decision-Making Concept: Management is the art and science of preparing, organizing, and directing human efforts to control forces and utilize materials for the benefit of mankind.
  • Productivity Concept: Management is the art of securing maximum prosperity with minimum effort.
  • Integration Concept: Management is the coordination of human and material resources to achieve organizational objectives.

Functions of Management

The core functions of management are: Planning, Organizing, Staffing, Directing, and Controlling.

  • Planning: The basic function of management; determining what should be done.
  • Organizing: Bringing together physical, financial, and human resources and developing productive relationships to achieve organizational goals.
  • Staffing: Manning the organizational structure and keeping it staffed.
  • Directing: Actuating organizational methods to work efficiently to achieve organizational purposes.
  • Controlling: Ensuring that everything occurs in conformity with established standards.

Levels of Management and Managerial Skills

  • Top Level: Consists of the board of directors, chief executive, or managing director.

    • Sets objectives and broad policies.
    • Prepares strategic plans and policies.
    • Controls and coordinates departmental activities.
    • Maintains contact with the outside world.
    • Provides guidance and direction.

  • Middle Level: Branch and departmental managers.

    • Executes plans in accordance with top management’s policies.
    • Makes plans for sub-units.
    • Participates in employment and training of lower-level management.
    • Sends reports and data to top management.
    • Evaluates junior managers’ performance.

  • Lower Level: Supervisors, section officers, etc.

    • Assigns jobs and tasks.
    • Guides and instructs workers.
    • Responsible for quality and quantity of production.
    • Supervises and guides subordinates.
    • Provides training.
    • Motivates workers.

Mintzberg’s Managerial Roles

  • Interpersonal Category: Providing information and ideas.
    • Figurehead – Performing social, ceremonial, and legal responsibilities.
    • Leader – Providing leadership for the team, department, or organization.
    • Liaison – Communicating with internal and external contacts.
  • Informational Category: Processing information.
    • Monitor– Seeking out information related to the organization and industry.
    • Disseminator– Communicating useful information to colleagues and the team.
    • Spokesperson– Transmitting information about the organization and its goals externally.
  • Decisional Category

Basic Elements of Management

  • Process: The primary function; a set of activities performed to get things done.
  • Effectiveness: Completing the given work on time, focusing on end results.
  • Efficiency: Focusing on optimal resource utilization.
  • Organizational Objectives: Refers to the goals of the organization.

Nature and Characteristics of Management

  • Goal-Oriented
  • Continuous Process
  • Balance between Effectiveness and Efficiency
  • Pervasive
  • Intangible Force
  • Coordinative Force

Importance of Management

  • Accomplishes Goals and Objectives
  • Quality Work Life
  • Reduction in Cost
  • Optimum Utilization of Resources
  • Development of Resources
  • Encourages Innovation

Fayol’s Contributions to Management

Fayol identified fourteen principles of management applicable in any organizational setting. He emphasized the importance of administrative processes, arguing that management was a distinct, universally applicable process. Fayol believed organizational goals should take precedence over individual interests and recognized the importance of fair compensation, stability, and innovation.

Findings of Taylor’s Theory

F.W. Taylor, known as the Father of Scientific Management, introduced scientific methods in management.

Taylor’s Principles:

  • Science, Not Rule of Thumb: Use scientific investigation for managerial decisions, not opinions or intuition.
  • Harmony, Not Discord: Obtain harmony in group action.
  • Cooperation, Not Individualism: Foster cooperation between management and workers, requiring mutual change in mental attitudes.
  • Equal Division of Responsibility: Ensure equal division of responsibility between managers and workers.

The Planning Process

The planning process involves setting goals, defining strategies, and outlining steps for effective implementation. Key processes include:

  • Establishing Objectives: Defining the organization’s goals.
  • Environmental Analysis: Overviewing the SWOT analysis.
  • Formulating Strategies: Developing plans based on objectives and analysis.
  • Communicating the Plan: Ensuring effective communication to all stakeholders.
  • Implementation: Putting plans into action.

Importance of Planning

  • Increases Efficiency
  • Provides Direction
  • Aids in Decision Making
  • Facilitates Coordination
  • Reduces Business Risks

Organizational Behavior (OB)

OB refers to the behavior of individuals and groups within organizations and their interaction with the external environment.

Levels of OB

  • Individual Level: Studies individual behavior and how it changes in different situations.
  • Group Level: Refers to individual behavior within a group.
  • Organizational Level: Analyzes how the organization works, helping managers understand individuals and groups.

Contributions of OB with Other Disciplines

  • Psychology: Deals with human behavior, aiding in learning, motivation, and personality understanding.
  • Sociology: Focuses on people’s influence on one another, contributing to behavior change, communication, and decision-making.
  • Anthropology: Studies human beings and their activities, contributing to organizational systems and group dynamics.

Types of Variables

  • Independent Variable: Does not depend on another factor.
  • Dependent Variable: Depends on another factor or an independent variable.

Points of Dependent Variable:

  • Productivity
  • Turnover
  • Absenteeism
  • Organizational Citizenship Behavior (OCB)
  • Deviant Workplace Behavior
  • Job Satisfaction

Nature and Characteristics of OB

  • A Field of Study, Not a Discipline
  • Inter-disciplinary Approach
  • Applied Science
  • Normative Science
  • Humanistic and Optimistic
  • Oriented towards Organizational Objectives
  • Total Systems Approach

Importance of OB

  • Understanding of Self and Others
  • Controlling and Directing Behavior
  • Better Communication
  • Good Human Relations
  • Attainment of Individual and Organizational Objectives

Models of OB

  • Autocratic Model: Management decides what is best for employees.
  • Custodial Model: Focuses on job security, with management playing a paternal role.
  • Supportive Model: Leadership focuses on employee participation in decision-making.
  • Collegial Model: Management and employees share a common objective.

Challenges and Opportunities for OB

Challenges:

  • Improving People Skills
  • Improving Customer Service
  • Empowering People
  • Improving Ethical Behavior
  • Improving Quality and Productivity

Opportunities:

  • Working in Networked Organizations
  • Stimulating Innovation and Change
  • Working with People from Different Cultures
  • Embracing Diversity
  • Increased Foreign Assignments