MANAGEMENT PROCESS – Mr. S. K. Rawat

What is Management? Management is, as is too well known, the art of getting things done through others. Stated differently, management is the social and technical process that utilizes resources, influences human actions and facilities changes in order to accomplish an organization's goals. The survival and success of an organization largely depends upon the quality of management. Competent Management will contribute to the success of the organization, but others fail, whatever the constraint is.

Definition George Terry defines “Management is a distinct process consisting of planning, organizing, actuating, and controlling, performed to determine and accomplish stated objectives with the use of human being and other resources.” Harold Koontz wrote, “ Management is the art of getting things done through and with people in formally organized groups.” Henri Fayol “To manage is to forecast and to plan, to organize, to command to coordinate and to control.” Peter Drucker writes, “ Management is a multi-purpose organ that manages a business, manages managers and manages workers and work.”

Concept of Management The following are the important features of management: Management is a Process. Management is an Art as well as a Science. Management follows Professional Approach. Management is Intangible. Management is Group Activity. Management is Result Oriented. Management follows Established Principles. Management is Dynamic in Nature.

Importance of Management The importance of management are as follows: Facilitates Optimum Utilization of Resources. Generates Efficiency. Motivates Personnel. Encourages Initiative. Develops Team Spirit. Facilitates Innovation. Improves Technology. Maintains Good Relations. Facilitates Growth and Expansion. Assists Society. Reduction of Employees Absenteeism and Turnover. Creates Corporate Image.

Management Level Pyramid Top Managers Middle Managers The organizing function will be discussed in detail in Chapter 7. In this chapter, however, we will discuss the three levels of a corporate hierarchy--top, middle, bottom--commonly known as the management pyramid. In general, top managers are the upper-level managers who have the most power and who take overall responsibility for the organization. An example is the chief executive officer (CEO). Top managers establish the structure for the organization as a whole, and they select the people who fill the upper-level positions. Top managers also make long-range plans, establish major policies, and represent the company to the outside world at official functions and fund-raisers. First-line Managers

Management Level Pyramid First-line Managers Middle Top President, CEO, VP Make long-range plans Establish policies Represent the company In general, top managers are the upper-level managers who have the most power and who take overall responsibility for the organization. An example is the chief executive officer (CEO). Top managers establish the structure for the organization as a whole, and they select the people who fill the upper-level positions. Top managers also make long-range plans, establish major policies, and represent the company to the outside world at official functions and fund-raisers.

Management Level Pyramid First-line Managers Middle Top Controller, Marketing Manager, Sales Manager Implement goals Make decisions Direct first-line managers Middle managers have similar responsibilities, but usually for just one division or unit. They develop plans for implementing the broad goals set by top managers, and they coordinate the work of first-line managers. In traditional organizations, managers at the middle level are plant managers, division managers, branch managers, and other similar positions. But in more innovative management structures, middle managers often function as team leaders who are expected to supervise and lead small groups of employees in a variety of job functions. Similar to consultants, they must understand every department’s function, not just their own area of expertise. Furthermore, they are granted decision-making authority previously reserved for only high-ranking executives.

Management Level Pyramid First-line Managers Middle Top Office Manager, Supervisor, Foreman, Department Head Implement plans Oversee workers Assist middle managers At the bottom of the management pyramid are first-line managers (or supervisory managers). They oversee the work of operating employees, and they put into action the plans developed at higher levels. Positions at this level include supervisor, department head, and office manager.

Levels of Management In an organization, all managers do not belong to the same level, just as all students of a college do not belong to the same class. Some managers belong to higher level, whereas, others belong to the lower level, and some others belongs to the middle level. Normally, management positions are ranked into three broad levels, i.e. (i) Top level (ii) Middle level and (iii) Lower level

Levels of Management….(continued) There are three basic managerial skills such as conceptual, human and technical. Managers at all levels carry on the functions of planning, organizing, directing, and controlling. 3 LOWER 2 MIDDLE 1 TOP

Levels of Management….(continued) Point of difference Top Level Middle Level Lower Level Designation CEO, GM, VP, MD, President and so on Divisional Heads, Department Managers, and so on. Assistant Managers, Supervisors, Foremen, and so on. Skills Required Conceptual skills More of human skills with some conceptual, and technical skills. Technical skills.

Levels of Management….(continued) Point of difference Top Level Middle Level Lower Level Concern for Determination of company goals. Framing of corporate policy. Mobilization of resources. Providing recommendations to top management. Interpretation of policies framed by the top mgt, etc. Guiding and directing employees. Developing morale. Acting as a link between the management and employees. Responsible to Shareholders Government and Public Coordinating between top & lower level. Getting work done from employees.

Administration and Management There are people who view the two terms differently, and yet, there are other who do not see any difference between the two terms. Some of the views expressed by noted authors are stated as follows: ‘Administration’ is concerned with the determination or planning of corporate policy, ‘Management’ is concerned with the execution or implementation of policy within limits set up by the administrators. -Oliver Sheldon ‘Administration’ is concerned with thinking (planning) process, ‘Management’ is concerned with doing (implementation) process. -Florence and Tead

Administration and Management…(contd.) E.F.L Brech considers ‘Administration’ as a part of management, and that ‘Management’ as a total process of getting things done. Spriegal and Lansburg viewed that top-level management is more concerned with ‘Administration’ and less with ‘Management’, whereas, lower level management is less concerned with ‘Administration’ and more with ‘Management.’ Henri Fayol sees no difference between the two terms and states that they are interchangeably used. He further states that ‘Administration’ is used for executive functions in government departments, while the term ‘Management’ is used for executive functions in business organizations.

What is Scientific Management? Management, which is distinguished by the use and application of science and the scientific methods in its various processes can be defined as “Scientific Management.” In other word, “Scientific Management deals with the problems of management in a systematic way, making use of scientific methods, viz., definition analysis, evolution, experiment and proof.”

Scientific Management by F.W.Taylor The scientific management movement was greatly influenced by the experiments of F. W. Taylor, who is known as “Father of Scientific Management”, which were conducted on varied work situations to find out how the performance of workers can be improved. The fundamental principle of Taylor theory are: The development of a true science for each element of an employee’s work. Scientific selection of Personnel. Scientific education and development of workers. Harmonious relations based on amity, goodwill and cooperation between the management and the employees.

Objectives of Scientific Management To determine industrial and market trends. To assure employment security to the employees. To obtain better gains. To improve the living standard of workers. To provide satisfactory working condition. To provide better opportunity. To motivate workers. To build workers character. To promote equity and justice. To create atmosphere of amity and mutual cooperation.

Henry Fayol’s Principle of Management In 1916, Henri Fayol (Father of Modern Management) provided a list of 14 principles in his book “Industrial and General Administration” based on his personal experience in industry. The 14 principles are as follows: 1. Division of work . 2. Authority and Responsibility. 3. Discipline. 4. Unity of Command. 5. Unity of Direction. 6. Subordination of Individual Interest. 7. Remuneration of Personnel. 8. Centralization. 9. Scalar Chain. 10. Order 11. Equity. 12. Stability of Tenure. 13. Initiative. 14. Esprit de Corps.

Functions of Management Planning Organizing Functions Of Management Controlling Directing

Functions of Management Henry Fayol’s list of managerial functions includes planning, organizing, commanding, coordinating and controlling. In 1930s, Luther Gullick, framed the functions of management in one word ‘POSDCORB’ – P for Planning, O for Organizing, S for Staffing, D for Directing, CO for Coordinating, R for Reporting, and B for Budgeting. In 1960s George Terry, emphasized planning, organizing, directing and controlling as function of management. The important functions of management are briefly explained as follows: PLANNING, ORGANISING, DIRECTING and CONTROLLING

Planning H. Koontz defines “Planning is deciding in advance what to do, how to do it, when to do it, and who is to do it.” The main steps in planning are stated as follows. Analyzing the internal environment to identify the strengths and weakness of the organization. Analyzing the external environment to identify the opportunities and threats. Setting of Objectives and Goals. Framing alternative plans. Studying and evaluating the alternative plans. Selection of best suitable plans. Implementation of the plans. Review of the plans.

Organizing “Organizing is a process of identifying & grouping of the work to be performed, defining & delegating authority and responsibility and establishing relations among the members of the organization, so that they work most effectively in accomplishing objectives.” –Louis Allen The main steps in Organizing is as follows: Setting Objectives and Goals. Identifying Activities to achieve Goals. Formation of Departments related to Activities. Arrangement of Resources. Assignment of Duties. Granting of Authority. Establishing Relationships. Provision of Coordination.

Staffing The selection, placement and assignment of more proficient and capable personnel in every levels of management for better and competent management in order to achieve success. The process of Staffing is listed below: Requirement of Employees. Determination of Sources. Recruitment & Selection of Employees. Placing the right person at right job. Performance Appraisal of the Employees. Promotion & Transfer of the Employees. Training & Development of Employees. Motivating & Rewarding the Employees.

Directing Directing means evoking the willing response of all subordinates to the work requirements and to make them do the assigned jobs to achieve the objective. Steps involved in Directing are: Analyzing the Directives (Instructions & Orders). Selection of Appropriate Directives. Effective Communication with Employees. Leading the Subordinates. Motivating the Employees. Proper Coordination with Employees. Complete Supervision of the Employees. Follow-up of the Performance.

Controlling George Terry defines “Controlling is determining what is being accomplished, i.e., evaluating the performance, and if necessary, applying corrective measures so that the performance takes place according to the plans.” Controlling involves the following steps: Setting of Standards or Targets. Implementation of Tasks. Assessment of Performance. Comparison of Performance with Plans. Finding out Deviations. Listing of various Corrective Measures. Selection of appropriate Corrective Measures. Review or Follow-up of the Performance.

Coordinating In words of Henry Fayol, “Coordinating is a process by which employees efforts are made in orderly sequence & unity of action is ensured in the pursuit of a common objectives of organization. Controlling involves the following steps: Maintaining Direct Contact with Employees. Creating Groundwork before Planning. Clarifying Authority & Responsibility. Controlling of Activities . Checking of Performance. Effective Communication with Employees. Developing Leadership Skills. Ensures Continuity of Process.