Management: Definitions, Objectives, Roles, and Theories
Characteristics of Management
Management is a process that concentrates on reaching specific goals by working with and through people and other organizational resources.
Management – Definition
Management can be defined as the process of reaching specific goals by working with and through people and other organizational resources.
Objectives of Management
Organizational Objectives
- Reasonable profit
- Survival of business
- Growth & expansion of business
- Improve the reputation of the enterprise
Personnel Objectives
- Fair remuneration for work performed
- Reasonable working conditions
- Opportunities for training & development
Social Objectives
- Quality of goods & services at a fair price
- Honest & prompt payment of taxes to the government
Managerial Roles
Interpersonal Roles
Deals with interpersonal relationships both inside and outside the organization.
- Figurehead Role: Attending weddings of employees, greeting dignitaries, taking important customers to lunch, etc.
- Leader Role: Motivate and encourage workers.
- Liaison Role: A manager should cultivate contacts outside their vertical chain of command to collect information useful for the organization.
Organization, Administration, Management
Organization
A system consisting of man, money, material & machines working for a common goal.
Administration
Is mainly concerned with decision-making & policy-making. It consists of owners/administrators who invest capital in & receive profits from an enterprise.
Management
Carry out/execute the policies of administration & uses organization to achieve the goals set by the administrator.
Administration & Management
Many experts use the terms administration & management as synonyms. Practically, there is no difference between both.
However, the managers who are higher up in the hierarchy do more of the administration function & the lower level does more on directing & controlling workers’ performance (management).
Functions of Management
1. Forecasting 2. Planning 3. Organizing 4. Staffing 5. Decision Making 6. Controlling 7. Coordinating 8. Directing
Steps in Planning
- Determination of objectives
- Forecasting to assist planning
- Identifying alternative courses of actions
- Evaluating the alternative courses
- Selecting the best course of action
- Establishing the sequence of activities & implementation
- Reviewing the planning process
What is Management?
- F.W. Taylor: “Art of knowing what you want to do & then seeing that it is done in the best and cheapest way.”
- Henry Fayol: “To manage is to forecast, to plan, to organize, to command, to coordinate & to control.”
- J.N. Schulze: “Management is the force which leads, guides & directs an organization in the accomplishment of a predetermined object.”
- Harold Koontz: “Management is the art of getting things done through & within formally organized groups.”
Styles of Managers
- Entrepreneurial style
- Conservative style
- Methodical style
- Quasi-professional style
Characteristics of Excellent Organizations
- They are oriented towards action.
- Learned about the needs of their customers.
- Promoted managerial autonomy and entrepreneurship.
- Achieved productivity by customer satisfaction.
- Focused on the business.
- Simple organization with lean staff.
Role of Manager in an Organization
Management is regarded as a critical variable and important input for an organization.
The success and prosperity of an organization are shaped by the quality of managerial talent and abilities of managers.
It is the basic responsibility of a manager to get physical resources utilized through employees effectively and efficiently to achieve predetermined objectives.
The major roles of a manager are:
- Interpersonal roles
- Informational roles
- Decision-making roles
Challenges of Management
- The challenge of boosting/increasing the productivity of resources.
- The challenge of employing resources.
- The challenge of staying ahead and coping with change.
- The challenge of motivating knowledge workers cum disenchanted employees.
- The political challenge.
- The challenge of globalization.
- Educated Customers.
- Employees who are more Educated but less Knowledgeable.
- Workplace Stress.
- Increased Pace of Technology Change.
- Keeping up with technology.
- Interpreting data effectively.
Evolution of Management Theories
Classical Management Theory (1880-1930)
- Scientific Management by F.W. Taylor.
- Administrative Management by Henri Fayol.
- Bureaucratic Management by Max Weber.
Neo-Classical Management Theory (1930-1950)
- Human Relations Movement
- Behavioral Sciences Movement
Modern Management Theory (1950 Onwards)
- Quantitative Approach
- System Approach
- Contingency Approach
Classical Management Theory
Scientific Management
Frederick W. Taylor (Chief engineer in Bethlehem Steel Company, USA) – father of scientific management.