Management & Its Function

IPE 4101
What is Management?
"Management is a distinct process consisting of planning, organizing,
activating and controlling to determine and accomplish the objectives by
the use of people and resources."- G.R. Terry

"To manage is to forecast and plan, to organize, to command, to co-

ordinate and to control.” - Henry Fayol

"Management is simply the process of decision making and control over

the action of human beings for the express purpose of attaining pre-
determined goals.” - Stanley Vance

Sir Charles Reynold, "Management is the process of getting things done

through the agency of a community. The functions of management are
the handling of community with a view of fulfilling the purposes for
which it exists."
FUNCTIONS OF MANAGEMENT

 Planning
 Organizing
 Staffing
 Directing
 Coordinating and
 Controlling.
PLANNING
Planning : Planning is the most fundamental and the most pervasive of all
management functions. If people working in groups have to perform effectively,
they should know in advance what is to be done, what activities they have to
perform in order to do what is to be done, and when it is to be done. Planning is
concerned with 'what', 'how, and 'when' of performance. It is deciding in the
present about the future objectives and the courses of action for their
achievement. It thus involves:

(a) determination of long and short-range objectives;

(b) development of strategies and courses of actions to be followed for the
achievement of these objectives; and
(c) formulation of policies, procedures, and rules, etc., for the implementation of
strategies, and plans.
ORGANIZING
Organizing : Organizing involves identification of activities required for the
achievement of enterprise objectives and implementation of plans; grouping of
activities into jobs; assignment of these jobs and activities to departments and
individuals; delegation of responsibility and authority for performance, and provision
for vertical and horizontal coordination of activities.

Organizing thus involves the following sub-functions :

(a) Identification of activities required for the achievement of objectives and

implementation of plans.
(b) Grouping the activities so as to create self-contained jobs.
(c) Assignment of jobs to employees.
(d) Delegation of authority so as to enable them to perform their jobs and to command
the resources needed for their performance.
(e) Establishment of a network of coordinating relationships.
STAFFING
Staffing is the management process to procure suitable personnel for
managing the jobs. Since the efficiency and effectiveness of an organization
significantly depends on the quality of its personnel and since it is one of the
primary functions of management to achieve qualified and trained people to
fill various positions, staffing has been recognized as a distinct function of
management.
It comprises several sub functions:
(a) Manpower planning involving determination of the number and the kind of
personnel required.
(b) Recruitment for attracting adequate number of potential employees to seek
jobs in the enterprise.
(c) Selection of the most suitable persons for the jobs under consideration.
(d) Placement, induction and orientation.
(e) Transfers, promotions, termination and layoff.
(f) Training and development of employees.
DIRECTING
Directing is the function of leading the employees to perform
efficiently, and contribute their optimum to the achievement of
organizational objectives.

The function of directing thus involves the following sub-

functions :
(a) Communication
(b) Motivation
(c) Leadership
COORDINATING
Coordinating is the function of establishing such relationships among
various parts of the organization that they all together pull in the direction
of organizational objectives. It is thus the process of tying together all the
organizational decisions, operations, activities and efforts so as to achieve
unity of action for the accomplishment of organizational objectives.

Coordination, as a management function, involves the following sub-

functions:

(a) Clear definition of authority-responsibility relationships

(b) Unity of direction
(c) Unity of command
(d) Effective communication
(e) Effective leadership
CONTROLLING
Controlling is the function of ensuring that the divisional,
departmental, sectional and individual performances are consistent
with the predetermined objectives and goals.

Controlling involves the following process :

(a) Measurement of performance against predetermined goals.

(b) Identification of deviations from these goals.
(c) Corrective action to rectify deviations.
MANAGEMENT VS. ADMINISTRATION
 NATURE OF MANAGEMENT

 Management as a Science
 Management as an art
 Management as a Profession
 Universality of Management
 Principle of Management

• Authority and Responsibility are related

• Unity of Command
• Unity of Direction
• Scalar Chain of Command
• Division of Work
• Discipline
• Subordination of Individual Interest to General Interest
• Remuneration
• Centralization
• Order
• Equity
• Stability of Tenure of Personnel
• Initiative
• Esprit de Corps
MANAGERIAL SKILLS
THE MANAGER AND HIS JOB
2. Informational Roles
Monitor : As monitor, the manager has to perpetually scan his environment for
information, interrogate his liaison contacts and his subordinates, and receive
unsolicited information, much of it as result of the network of personal contacts he has
developed.
Disseminator: In the role of a disseminator, the manager passes some of his
privileged information directly to his subordinates who would otherwise have no
access to it.
Spokesman : In this role, the manager informs and satisfies various groups and
people who influence his organization. Thus, he advises shareholders about financial
performance, assures consumer groups that the organization is fulfilling its social
responsibilities and satisfies government that the origination is abiding by the law.
3. Decisional Roles
Entrepreneur : In this role, the manager constantly looks out for new ideas and seeks to
improve his unit by adapting it to changing conditions in the environment.
Disturbance Handler : In this role, the manager has to work like a fire fighter. He must seek
solutions of various unanticipated problems – a strike may loom large, a major customer may
go bankrupt; a supplier may renege on his contract, and so on.
Resource Allocator : In this role, the manager must divide work and delegate authority among
his subordinates. He must decide who will get what.
Negotiator : The manager has to spend considerable time in negotiations. Thus, the chairman
of a company may negotiate with the union leaders a new strike issue, the foreman may
negotiate with the workers a grievance problem, and so on.
In addition, managers in any organization work with each other to establish the organization’s
long-range goals and to plan how to achieve them. They also work together to provide one
another with the accurate information needed to perform tasks. Thus, managers act as channels
of communication with the organization.
 Characteristics of Professional Managers

1. Managers are responsible and accountable

2. Managers balance competing goals and set priorities

3. Managers think analytically and conceptually

4. Managers are mediators

5. Managers make difficult decisions

 SIGNIFICANCE OF MANAGEMENT

1. Achievements of group goals

2. Optimum utilization of resources
3. Minimization of cost
4. Change and growth
5. Efficient and smooth running of business
6. Higher profits
7. Provide innovation
8. Social benefits
9. Useful for developing countries
10. Sound organization structure
EVOLUTION OF MANAGEMENT THOUGHTS
FRAMEWORK FOR THE MANAGEMENT THOUGHTS
Classical School: The classical development of management thoughts can be divided into-
the scientific management, the organizational management, the behavioral management and
the quantitative management.
(A) Scientific Management School: Scientific management means application of the
scientific methods to the problem of management. It conducts a business or affairs by
standards established by facts or truth gained through systematic observation, experiments, or
reasoning.
TAYLOR’S FOUR PRINCIPLES OF SCIENTIFIC MANAGEMENT
Elements and Tools of Scientific Management: The features of various experiments conducted by Taylor are as
follows:
• Separation of Planning and doing: Taylor emphasized the separation of planning aspects from actual doing of the
work. The planning should be left to the supervisor and the workers should emphasize on operational work.
• Functional Foremanship: Separation of planning from doing resulted into development of supervision system that
could take planning work adequately besides keeping supervision on workers. Thus, Taylor evolved the concept of
functional foremanship based on specialization of functions.
• Job Analysis: It is undertaken to find out the best way of doing things. The best way of doing a job is one which
requires the least movement consequently less time and cost.
• Standardization: Standardization should be maintained in respect of instruments and tools, period of work, amount of
work, working conditions, cost of production etc.
• Scientific Selection and Training of Workers: Taylor has suggested that the workers should be selected on scientific
basis taking into account their education, work experience, aptitudes, physical strength etc.
• Financial Incentives: Financial incentives can motivate workers to put in their maximum efforts. Thus, monetary
(bonus, compensation) incentives and non monetary (promotion, up gradation) incentives should be provided to
employees.
Criticism of Scientific Management: The main grounds of criticism are given
below:
• Taylor advocated the concept of functional foremanship to bring about
specialization in the organization. But this is not feasible in practice as a worker
can’t carry out instructions from eight foremen.
• Scientific management is production oriented as it concentrates too much on the
technical aspects of work and undermines the human factors in industry. It
resulted in monotony of job, loss of initiative, over speeding workers, wage
reductions etc.
• Training was haphazard at best, with only minimal use of basic apprentice system.
• Tasks were accomplished by general rule of thumb without standard times,
methods or motion.
• Managers worked side-by-side with the workers, often ignoring such basic
managerial function of planning and organizing.
(B) Organizational School: The organizational school of management placed emphasis on the
development of management principles for managing the complete organization

WEBER’S IDEAL BUREAUCRACY

ECONOMIC MAN AND ADMINISTRATIVE MAN
(C) Behavioral School: The school of behavioral management
theory involved in recognition on the importance of human
behavior in organization

MASLOW’S HIERARCHY OF HUMAN NEEDS

(D) Quantitative School: With the revolutionary change in the application of information technology
came the quantitative school of thoughts, which finds its foundation in decision theory, the
application of statistics in decision making and the evolution of mathematical/econometric models
that are nurtured by computer technology. This approach is based upon the assumption that
mathematical techniques can help the manager in solution of problems. The features of quantitative
management school were:
• Primary Focus on Decision Making: The end result of problem analysis will include direct
implications for managerial action.
• Based on Economic Decision Theory: Final actions are chosen criteria as costs, revenue and rates of
return on investment.
• Use of Formal Mathematical Models: Possible solutions to problems are specified as mathematical
equations and then analyzed according to mathematical rules and formulas.
• Frequent Use of Computers: Heavy reliance is placed on computers and their advanced processing
capabilities.