Management And Professional Leadership. What is Management ?

 MEANING OF MANAGEMENT:-

The term ‘management’ has been used in different senses. Sometimes it refers to the process of planning, organizing, staffing, directing, coordinating and controlling, at other times it is used to describe it as a function of managing people. It is also referred to as a body of knowledge, a practice and discipline. There are some who describe management as a technique of leadership and decision-making while some others have analyzed management as an economic resource, a factor of production or a system of authority.

Definitions:

Mary Parker Follett:

“Management is the art of getting things done through others.” Follett describes management as an art of directing the activities of other persons for reaching enterprise goals. It also suggests that a manager carries only a directing function.

Harold Koontz:

“Management is the art of getting things done through and with people in formally organized groups.” Koontz has emphasized that management is getting the work done with the co-operation of people working in the organization.

Henry Fayol:

“To manage is to forecast and plan, to organize, to command, to co-ordinate, and to control.” Fayol described management as a process of five functions such as planning, organizing, commanding, coordinating and controlling. Modern authors, however, do not view co-ordination as a separate function of management.

Nature of Management:

• Universal Process: Wherever there exists human pursuit, there exists management. Without effective management, the intentions of the organisation cannot be accomplished.
• The factor of Production: Equipped and experienced managers are necessary for the utilization of funds and labour.
• Goal-Oriented: The most significant aim of all management pursuit is to achieve the purposes of a firm. The aims must be practical and reachable.

The most important goal of all management activities is to accomplish the objectives of an enterprise. 
The goals should be realistic and attainable. The success of management is measured by the extent 
to which the established goals one achieved. Thus, management is purposeful

• Supreme in Thought and Action: Managers set achievable goals and then direct execution on all aspects to achieve them. For this, they need complete assistance from middle and lower degrees of management.
• The system of Authority: Well-defined principles of regulation, the regulation of proper power and efficiency at all degrees of decision-making. This is important so that each self must perform what is required from him or her and to whom he must report.
• Profession: Managers require to control managerial expertise and education, and have to adhere to a verified law of demeanour and stay informed of their human and social responsibilities.
• Process: The management method incorporates a range of activities or services directed towards an object.

• Group Activity

All human and physical resources should be efficiently coordinated to attain maximum levels of combined productivity. Without coordination, no work would accomplish and there would be chaos and retention.

  Dynamic Function

Management should be equipped to face the changes in the business environment brought about by economic, social, political, technological or human factors. They must be adequate training so that they can enable them to perform well even in critical situations.

Management is an art as well as a science: Management is a science because it has developed certain principle which is of universal application. But the result of management depend upon the personnel skills of managers and in this sense management is an art.

Management is a social process: - Management is getting thing through others. This involves dealing with people. The efforts of the human beings have to be directed, co-ordinate andregulated by management in order to achieve the desired results.

Management is needed at all levels of the organization: - Another important feature ofmanagement is that it is needed at all levels of the organization, e.g. top level, middle level and supervisory level. The only difference is of the nature of task and the scope of authority.

It has a Distinct entity: -

It is intangible force: -

It is an Inborn and Acquired Ability: -

Significance of Management: 

• Achieving Group Goals: Management encourages collaboration and coordination amongst workers. A general control must be provided to the organizational and personal objectives in order to favourably accomplish the aims.
• Increases Efficiency: Management improves productivity by managing resources in a reliable conceivable way in order to decrease cost upscale potency. 
• Creates Dynamic organization: Management undertakes the conditions by assuring that these variations are well accepted privately and that objection to change is controlled.
• Achieving personal objectives: Management promotes leadership and furnishes motivation to the employees to operate effectively in order to accomplish their personal aims while working towards the organizational goals.
• Development of Society: Management helps in the enhancement of community by manufacturing reliable quality commodities, establishing employment chances and fostering innovative technologies.
• Ensuring maximum utilisation of resources
• Overcoming competition
• Maintaining a sound Organisational Structure
• Aiming at increasing profit

 Scope of Management

Although it is difficult to precisely define the scope of management, yet the following areas are included in it:  Subject-Matter of Management

Planning, organizing, directing, coordinating and controlling are the activities included in the            subject matter of management.

Functional Areas of Management

These include:

Financial Management includes accounting, budgetary control, quality control, financial planning and managing the overall finances of an organization.

Personnel Management includes recruitment, training, transfer promotion, demotion, retirement, termination, labor-welfare and social security industrial relations.

Purchasing management includes inviting tenders for raw materials, placing orders, entering into contracts and materials control.

Production Management includes production planning, production control techniques, quality control and inspection and time and motion studies.

Maintenance Management involves proper care and maintenance of the buildings, plants, and machinery.

Transport Management includes packing, warehousing and transportation by rail, road, and air.

Distribution Management includes marketing, market research, price-determination, taking market risk and 

advertising, publicity and sales promotion.

Office Management includes activities to properly manage the layout, staffing, and equipment of the office.

Development Management involves experimentation and research of production techniques, markets, etc.

Management is an Inter-Disciplinary Approach 

For the correct implementation of the management, it is important to have knowledge of commerce, economics, sociology, psychology, and mathematics.

Universal Application

The principles of management can be applied to all types of organizations irrespective of the nature of tasks that they perform.

LEVELS OF MANAGEMENT

 An organization is a group activity with few common objectives, The various people working together cannot be placed on the same status. Because, the organization needs to be managed. In order to manage, there should be directing, authority and responsibility.

                Hence, there is a creation of levels or positions among the organizational Personnel. This hierarchy is called levels of management; Management believes in getting things done through others. So, there is a need to create positions with superior- subordinate relationship. The authority flows from superior to subordinate and responsibility in reverse way.

There are three levels of management namely,

1.Top level management

2.Middle level management

3.Low level management

The following chart explains the three structure of the levels of management.

                       The structure creates different positions for all the people working in an organization. Each position is assigned with functions, authority and responsibility. The basic reason for such a demarcation is to fix the span of activities at each level. The following explanation is about the.

Functional areas of three levels

1. Top Management

The term Top indicates the 'apex' position in the arrangement. It is at the higher end of the pyramid structure. Top management consists of owners of company / organization. Board of Directors, Managing Directors, Chief Executive Officer and General Manager. The owners of the company are shareholders who contribute share capital. They are huge in number and cannot directly take part in management and day today activities.

      

          Hence, they elect their representatives to manage the affairs of an organization called directors. They are collectively known as Board of Directors. They are responsible for planning, determining objectives, framing policies, decision making etc.   

         The Board of Directors elect one of them as Chairman. In order to regulate the day to day activities, the managing director and manager are appointed.

Functions of Top Management

The following are the chief functions performed by top Level management;

a. Determining the Goals or Objectives: The basic purpose of establishing an organization is

defined through its objectives.

           They explain what an organization wishes to achieve. Usually the objectives are stated in the Memorandum of Association of Company. They include main and subordinating objectives. Objectives are to be specific and clear. The ultimate objective of business organization is wealth maximization.

         The whole structure struggles for the attainment of pre-determined objectives. The objectives speak of the height of top management.

b. Framing the Policies: The ways and means to attain the objectives are stated through policies. They are the outcome of management decision relating to various functional areas.

For example: If the company needs a machinery, the financial policy of company

spells whether to purchase it, lease it or go for instalment purchase. Similarly, the

production, pricing, distribution, product policies are framed by management.

c. Setting up an Organizational Framework: The top management plans for a suitable organization to execute the plans. An organization means the group of men and material with design at roles. The duties, responsibilities, authority are allocated among various

personnel. The total function of establishing relations is called organizing. It lays down

the boundaries within which everyone has to perform.

d. Assembling Resources: The management pools the resources such as men, material,

land, labour and capital through the use of resources. The management raises the

money through issue of shares, debentures, banks, financial intermediaries. The physical

resources are purchased according to the requirement of department.

e. Controlling: Finally, the top management is responsible to assess the performance of organization. The control over the activities is exercised through supervising staff. The actual performance of personnel is evaluated by comparing with the standards established.

Any variation between actual and standard is evaluated.

The reasons are traced and improvements are suggested. The supervisors act as a

source of inspiration to the subordinates.

Conclusion:-

Control over organization is indirectly exercised by top management. The techniques used by it include budgeting, standard costing, accounting policies and

statistical quality control.

2.Middle Management

         It is in - between Top and Lower management. It includes all departmental heads, divisional and sectional officers, deputy and branch managers.

       As linking officer, these are responsible for implementation of top management policies and plans.

       The management expert M.C.Niles states that "Middle management is always functioning under pressure from three corners i.e., - from above by his chief in the top management with those ideas, policies and attitudes he must agree- from below by the

supervisors who press for counsel, guidelines, decisions etc., and sideways by colleagues whose department or functions or activities are interrelated with his own”.

Among the various activities performed, the following are important One-

a. Execution of top management's plans, policies and objectives.

b. Keep ready the organizational setup to implement the policies.

c. Identification of suitable personnel to undertake and execute the responsibilities.

d. Co-ordination of various departments and sections of the organization.

e. To develop personnel to bear the responsibilities.

f. To motivate, build team spirit, to achieve higher productivity within the time and cost.

g. Collection of information, opinions from lower management and pass the same to top management.

h. Recommending to the top management on the referred issues based on their experiences.

Conclusion:-

The middle level management usually comprises of the active departments such

as production, engineering, personnel, stores, accounts, finance, general administration,

costing, sales etc. The goals are achieved by establishing harmony among departments.

3.Lower Management

At the lower end of pyramid is lower management. It is the level at which the goals are actively reached. It undertakes all basic activities It is broader in structure with number of work force. Lower management comprises foremen. Supervisor, sub￾departmental executives, workers, clerks etc. The performance of organization depends upon the quality of work force as they actuate the plans and policies.

The following are the functions performed at the lower management.

a. Supervisors issue orders to workers to undertake the work.

b. Plan suitable policies, course of action, pathways to perform easily.

c. Responsible to organize the staff, guide, supervise and control.

d. Receive complaints and pass on to the middle management.

e. Maintaining discipline, harmonious relations, cool temperaments, group

morale among the work force.

The organization of lower level is comparatively less complex than top management. The term lower level does not mean that it is less important. With a large

span of people, it is the operational level of activities. It is important to note that the lower management implements all functions of management such as planning,organising, directing staffing, controlling.

Conclusion:-

In the success story of an organization. all the levels have an important role toplay. Management is an organised force with different levels. There is a need of

harmonious effort from the persons placed at all levels. Hence, the levels of management indicate the gradation of functions, authorities and responsibilities in the

organization.

Managerial Skills

Managers at every level in the management hierarchy must exercise three basic types of skills: technical, human, and conceptual. All managers must acquire these skills in varying proportions, although the importance of each category of skill changes at different management levels

Technical skills:

• Technical skills refer to the ability and knowledge in using the equipment, 

techniques and procedure involved in performing specific tasks.

• These skills require specialized knowledge and proficiency in the mechanics of a 

particular.

• Technical skills lose relative importance at higher levels of the management 

hierarchy, but most top executives started out as technical experts.

Human skills:

• Human skills refer to the ability of a manager to work effectively with other people both as individual and as members of a group.

• Human skills are concerned with understanding of people.

• These are required to win cooperation of others and to build effective work teams.

Conceptual skills:

• Conceptual skills involve the ability to see the whole organization and the interrelationships between its parts.

• These skills refer to the ability to visualize the entire picture or to consider a situation in its totality.

• These skills help the managers to analyze the environment and to identify the opportunities.

• Conceptual skills are especially important for top-level managers, who must develop long-range plans for the future direction of their organization.

Managerial Roles

To meet the many demands of performing their functions, managers assume multiple 

roles. A role is an organized set of behaviours. Henry Mintzberg has identified ten roles 

common to the work of all managers.

The ten roles are divided into three groups:

• Interpersonal

• Informational

• Decisional

The performance of managerial roles and the requirements of these roles can be played 

at different times by the same manager and to different degrees depending on the level 

and function of management. The ten roles are described individually, but they form an 

integrated whole.

1. Interpersonal Roles

The interpersonal roles link all managerial work together. The three interpersonal roles 

are primarily concerned with interpersonal relationships.

• Figurehead Role: The manager represents the organization in all matters of 

formality. The top level manager represents the company legally and socially to 

those outside of the organization. The supervisor represents the work group to 

higher management and higher management to the work group.

 

•  Liaison Role: The manger interacts with peers and people outside the organization. The top level manager uses the liaison role to gain favours and 

information, while the supervisor uses it to maintain the routine flow of work.

 

•  The leader Role: It defines the relationships between the manger and employees.

2. Informational Roles

The informational roles ensure that information is provided. The three informational 

roles are primarily concerned with the information aspects of managerial work.

 

•  Monitor Role: The manager receives and collects information about the operation of an enterprise.

 

•  Disseminator Role: The manager transmits special information into the organization. The top level manager receives and transmits more information from people outside the organization than the supervisor.

 

•  Spokesperson Role: The manager disseminates the organization’s information nto its environment. Thus, the top level manager is seen as an industry expert, while the supervisor is seen as a unit or departmental expert.

3. Decisional Roles

The decisional roles make significant use of the information and there are four decisional 

roles.

•  Entrepreneur Role: The manager initiates change, new projects; identify new ideas, delegate idea responsibility to others.

 

•  Disturbance Handler Role: The manager deals with threats to the organization. The manager takes corrective action during disputes or crises; resolve conflicts among subordinates; adapt to environmental crisis.

  •  Resource Allocator Role: The manager decides who gets resources; schedule, budget set priorities and chooses where the organization will apply its efforts.

 

 •  Negotiator Role: The manager negotiates on behalf of the organization. The top level manager makes the decisions about the organization as a whole, while the supervisor makes decisions about his or her particular work unit.