CHARACTERISTICS OF MANAGEMENT
The various characteristics of management are:
(a) Management is universal: It means that management is required for every type of
organisation. It may be a business organisation or social or political. It may be a small
firm or a large one. Management is required by a school or a college or university or
a hospital or a big firm like Reliance Industries Limited or a small variety store in your
locality. Thus, it is a universal phenomenon and is common and essential element in all
organisations.
(b) Management is goal directed: Every organisation is created to achieve certain
goals. For example, for a business firm it may be to make maximum profit and/or to
provide quality products and services. Management of an organisation is always aimed
at achievement of the organisational goals. Success of management is determined by
the extent to which these goals are achieved.
(c) Management is a continuous process: Management is an ongoing process. It
continues as long as the organisation exists. No activity can take place without
management. To perform all activities like production, sale, storage, operation etc.
management is required. So, as long as these activities continue the process of
management also continues to operate.
(d) Management is an integrating process: All the functions, activities, processes and
operations are intermixed among themselves. It is the task of management to bring
them together and proceed in a coordinated manner to achieve desired result. In fact,
without integration of men, machine and material and coordination of individual efforts
to contribute successfully as a team, it will be difficult to achieve organisational goals.
(e) Management is intangible: Management is not a place like a graphic showing Board
meeting or a graphic showing a school Principal at her office desk which can be seen.
It is an unseen force and you can feel its presence in the form of rules, regulation,
output, work climate, etc.
(f) Management is multi-disciplinary: Management of an organisation requires wide
knowledge about various disciplines as it covers handling of man, machine, material
and looking after production, distribution, accounting and many other functions. Thus,
we find the principles and techniques of management are mostly drawn from almost all
fields of study like – Engineering, Economics, Sociology, Psychology, Anthropology,
Mathematics, Statistics etc.
(g) Management is a social process: The most important aspect of management is
handling people organised in work groups. This involves developing and motivating
people at work and taking care of their satisfaction as social beings. All managerial
actions are primarily concerned with relations between people and so it is treated as a
social process.
(h) Management is situational: The success of management depends on, and varies
from, situation to situation. There is no best way of managing. The techniques and
principles of management are relative, and do not hold good for all situations to come.
IMPORTANCE OF MANAGEMENT
The existence and success of any organisation largely depends on the kind of management
it has. No amount of quality resources is going to help unless they are put to productive
use by efficient management. It is because of this reason that management is studied as a
subject in almost every discipline of study. In today’s scenario with globalisation, job
specialisation, changing technologies, new responsibilities of business, consumerism,
competition and emphasis on research and development, the role of management has
grown multifold. Its importance is reflected in the positive result that the organisation can
get in respect of the following.
(a) Attainment of Goals
Every organisation has a goal to achieve and each employee in the organisation also has
his own goals that he wants to achieve. Even at operational level each department, each
unit or even each group has a goal that it wants to achieve. It is only through proper
management – by well thought of planning, good direction and proper coordination and
control that effectiveness to the efforts of each group to achieve given goals can be ensured.
(b) Stability and Growth
Management strives to utilise the available resources of the organisation effectively and
efficiently. It controls the activities and operations, integrates the functions, motivates the
employees, maintains the health of the organisation in the ever changing environment. It
thus, ensures stability to the working of the organisation and contributes to its growth.
(c) Change and Development
Management keeps itself in touch with the changes in the environment and foresees
development in the future. Accordingly, plans are made to keep the organisation ready to
meet the challenges. The technologies, operations, process as human factors are developed
on a continuous basis keeping an eye on the future.
(d) Efficiency and Effectiveness
By proper planning, staffing, organising, coordinating, directing, and its controlling activities,
the management helps in achieving efficiency and effectiveness to human efforts and
operations.
NATURE OF MANAGEMENT
The nature of management can be better appreciated by looking at it
• as a process
• as a discipline
• as a group of individuals
• as a profession, and
• as a science as well as an art.
(a) Management as a Process
Management consists of a series of inter-related activities of planning, organising and
controlling. All activities are undertaken in a proper sequence with a systematic approach
so as to ensure that all actions are directed towards achievement of common goals. Thus,
it is regarded as a process of organising and employing resources to accomplish the
predetermined objectives.
(b) Management as a Discipline
Management is a systematised body of knowledge that has developed, grown and evolved
over the years through practice and research. The knowledge so cumulated is disseminated
to successive generations of managers and used by them in performing their jobs. Thus, it
has become a separate field of study with its own principles and practices and thus, evolved
as an independent discipline with its own techniques and approaches.
(c) Management as a Group
Management normally refers to a group of managers working in an organisation. It includes
the top executive as well as the first line supervisors. These managers perform their functions
jointly as a group. The success of business does not depend on the efficiency of one, but
of all manages taken together. Managers work as a team so that objectives of the business
are fully achieved. However, in every organisation there are certain levels of managementwith varying degree of the nature of authority and responsibilities. You will learn about
these later in this lesson.
(d) Management as a Science as well as an Art
Management is regarded as a science as well as an art. Science refers to a systematic
body of knowledge with reference to understanding of some phenomenon or subject or
object of study. It establishes a cause and effect relationship between variables. It is based
on systematic explanation, experimental analysis, critical evaluation and logical consistency.
In science we learn the ‘why’ of a phenomenon. For example, two molecules/atoms of
hydrogen and one molecule/atom of oxygen makes water (H2O). Similarly we can say
earth moves round the sun. Any subject of study to be called a science should have the
following characteristics:
(i) There must be a systematised body of knowledge that includes concepts, people and
theories.
(ii) We should be able to establish a cause and effect relationship.
(iii) Its principles should be verifiable.
(iv) Its should ensure predictable results.
(v) It should have universal application.
Management as a subject of study fulfils almost all the above characteristics. Theories and
techniques like scientific management, PERT and CPM, break even analysis, budgeting
etc. are all scientific in nature. However, since it deals with human beings, we cannot
predict a definite cause - effect relationships. Hence management is not treated as a pure
or full-fledged science.
As for the art, you know that it refers to bringing about the desired result through application
of skill. It is a personalised process and states that there is no best way of doing a thing.
Thus, it is creative and it improves by practice. In art we learn about the ‘how’ of a
phenomenon. For example, take the case of painting. There is nothing called the best
way of painting. More one paints, the more he improves and learns how to paint. Now
look at management. Here also we apply a lot of skill (like technical, conceptual, human
etc.) and it is also creative in nature. Nobody can say that this is the best way of managing.
It varies from one manager to another. The more one manages, the more experienced and
expert he becomes.
Thus, management is a combination of both science and art.
(e) Management as Profession
In the first lesson you had learnt that profession is an occupation. To be precise, any
occupation that satisfies the following requirements is called a profession.
(i) It must be an organised and systematised body of knowledge. Take for example
professions like engineering or chartered accountancy. These require a specialised
knowledge.
(ii) There is always a formal method of acquisition of such knowledge. In other words,
individuals, to pursue a specific profession, must acquire the specialised knowledge
through some formal institutions. For example, you need to get a degree in law or
engineering to pursue the profession of a lawyer or engineer.
(iii) There exists an association to devise certain code of conduct for the professionals.
This code of conduct lays down norms to be observed by the professionals while
doing their job. Violation of the prescribed code can lead to derecognising the
professional to practise.
(iv) A profession is no doubt an occupation to earn one’s livelihood but the financial reward
is not the main measure of their success. The professional use their specialised
knowledge to serve the long-run interests of the society and are also conscious of their
social responsibility.
Though management may not meet all the requirements of a profession in strict sense of
the term, but it meets most of the above requirements and is, now a days, regarded a fullfledged
profession. A number of institutions have come up to teach management in a
formal way and train future managers. Various associations like American Management
Association in USA, All India Management Association in India have been functioning as
representative bodies of managers and have duly devised codes of conduct for managers.
Many more organisations have come up in the specialised fields of management.
LEVELS OF MANAGEMENT
As stated earlier, there are certain levels of management with varying degree of authority
and responsibilities. Some managers decide about the objectives of the business as a
whole; some managers perform functions to achieve these objectives in different
departments, like production, sales, etc, and some of the managers are concerned with
the supervision of day-to-day activities of workers. Managers performing different types
of duties may, thus, be divided into three categories:
• Top-Level Management
• Middle-Level Management
• Lower-Level Management
the top level management includes Board of Directors and the
Chief Executive. The chief executive may have the designation of Chairman, Managing
Director, President, Executive Director or General Manager. This level determines the
objectives of the business as a whole and lays down policies to achieve these objectives
(making of policy means providing guidelines for actions and decision). The top management
also exercises an overall control over the organisation.
The middle-level management includes heads of various departments, e.g., production,
sales, etc., and other departmental managers. Sometimes senior departmental heads are
included in the top management team. The objectives of the business as a whole are
translated into departmental objectives for the middle level management. The heads of the
departments then work out their own strategies so as to achieve these objectives. Middlelevel
managers are particularly concerned with the activities of their respective departments.
The lower-level management consists of foremen and supervisors who look after the
operative workers, and ensure that the work is carried out properly and on time. Thus,
they have the primary responsibility for the actual production of goods and services in the
organisation.
These three levels of management taken together form the ‘hierarchy of management’. It
indicates the ranks and positions of managers in the hierarchy. It shows that the middlelevel
management is subordinate to the top-level and that the lower-level is subordinate to
the middle-level management.
the number of people at each level increases as one moves from top to bottom. Workers including crafts persons, manual labourers, engineers, scientists, etc. form the bulk of the organisation membership.
Within the managerial ranks, the number of managers at each level decreases as one
moves from lower-level to top-level management. At the top of the organisation, there is
usually one person.
FUNCTIONS OF MANAGEMENT
In every organisation, the managers perform certain basic functions. These are broadly
divided into six categories viz., planning, organising, staffing, directing, coordinating and
controlling. These are discussed basically hereunder. You will learn about all these functions
in detail in the lessons to follow.
(a) Planning
Planning is deciding in advance what is to be done, when it is to be done, how it is to be
done. It is basically concerned with the selection of goals to be achieved and determining
the effective course of action from among the various alternatives. This involves forecasting,
establishing targets, developing the policies and programming and scheduling the action,
procedure, etc., Thus, planning requires decisions to be made on what should be done,
how it should be done, who will do it, where it will be done, and why it is to be done. The
essential part of planning consists of setting goals and programmes of activities.
(b) Organising
After the plans have been drawn, management has to organise the activities, and physical
resources of the firm to carry out the selected programmes successfully. It also involves
determining the authority and responsibility relationships among functions, departments
and personnel at various levels to ensure smooth and effective function together in
accomplishing the objective. Thus, the organising function of management is primarily
concerned with identifying the tasks involved and grouping them into units and departments,
and defining the duties and responsibilities of people in different positions within each
department for well coordinated and cooperative effort in the organisation.
(c) Staffing
Staffing is concerned with employing people for the various activities to be performed.
The objective of staffing is to ensure that suitable people have been appointed for different
positions. It includes the functions of recruitment, training and development, placement
and remuneration, and performance appraisal of the employees.
(d) Directing
The directing function of management includes guiding the subordinates, supervising their
performance, communicating effectively and motivating them. A manager should be a good
leader. He should be able to command and issue instruction without arousing any resentment
among the subordinates. He should keep a watch on the performance of his subordinates
and help them out whenever they come across any difficulty. The communication system,
i.e., exchange of information should take place regularly for building common understanding
and clarity. The managers should also understand the needs of subordinates and inspire
them to do their best and encourage initiative and creativity.
(e) Controlling
This function of management consists of the steps taken to ensure that the performance of
work is in accordance with the plans. It involves establishing performance standards and
measuring the actual performance with the standards set. If differences are noticed,
corrective steps are taken which may include revision of standards, regulate operations,
remove deficiencies and improve performance.
(f) Co-ordinating
Management has to ensure that all the activities contribute to the achievement of the
objectives of the business as a whole. This requires integration of activities and
synchronisation of efforts. The heads of different departments should not treat each other
as competitors but should work as organs of one body. As the proper functioning of every
organ of a human body is important for a healthy body, the work of every department is
important for the organisation as a whole. Managers should, therefore, see that everybody
in the organisation understands its objectives and works in co-operation with others to
achieve these objectives. This function of management is called co-ordination. It consists
of harmonising group effort so as to achieve common objectives.
CONCEPT OF SCIENTIFIC MANAGEMENT
F.W. Taylor, well-known management expert, worked as an apprentice, machinist, foreman
and ultimately as the chief engineer of a steel company in U.S.A. Taylor suggested a new
approach to management early in the twentieth century. This is known as ‘Scientific
Management’. The basic principles developed by Taylor as principles of scientific
management were:
1. Development of a true scientific approach to management replacing the old rule of
thumb method, which would enable managers, among other things, to determine the
best method of performing each task;
2. Scientific selection and placement of workers so that each worker could be assigned
the task for which he is best suited;
3. Scientific training and development of workers so as to achieve the highest level of
efficiency; and
4. Close co-operation between management and labour to ensure that work is carried
out in accordance with the scientific principles which are developed.
A number of techniques like time study, motion study, standardisation of equipment and
working conditions, and differential piece rate of wages were also developed to facilitate
scientific management.
GENERAL PRINCIPLES OF MANAGEMENT
Scientific management was primarily concerned with increasing the efficiency of individual
workers at the shop floor. It did not give adequate attention to role of managers and their
functions. However, around the same time Henry Foyal, Director of a coal mining company
in France made a systematic analysis of the process of management. He strongly felt that
managers should be guided by certain principles, and evolved 14 general principles of
management which are still considered important in management. These are:
1. Division of Work: This principle suggests that work should be assigned to a person
for which he is best suited. Work should be divided into compact jobs to be assigned
to individuals. This facilitates specialisation and improves efficiency.
2. Authority and Responsibility: Responsibility means the work assigned to any person,
and authority means rights that are given to him to manage people and things to ensure
performance. In other words, authority should go hand in hand with the responsibility
for effective results.
3. Discipline: This principle emphasises that subordinates should respect their superiors
and obey their orders. On the other hand, superiors’ behaviour should be such that
they make subordinates obedient. If such discipline is observed, there will be no problem
of industrial disputes.
4. Unity of Command: A subordinate should work under the supervision of one superior
only from whom he gets instructions and to whom he is accountable. It avoids confusion
in authority and instructions.
5. Unity of Direction: Each group of activities having the same objective must have
one head and one plan of action. Otherwise, there may be wastage, over expenditure
and useless rivalry among the managers.
6. Subordination of Individual Interest to General Interest: While taking any
decision, the collective good and collective interest of the organisation as a whole
should be preferred to individual interests. The individual’s interest should be
subordinated to the overall interest of the organisation. This ensures welfare of the
organisation as well as its individual members.
7. Remuneration: Management should try to give fair wages to the employees so as to
ensure reasonable satisfaction of workers and productivity for the organisation.
8. Centralisation: When a single person controls the affairs of an organisation, it is said
to be complete centralisation. In small concerns, a single manager can supervise the
work of the subordinates easily, while in a big organisation, control is divided among a
number of persons to facilitate operational decision making at various levels. Fayol’s
opinion was that there should be a proper balance between centralisation and
delegation of authority in an organisation.
9. Scalar Chain: This is the chain of authority relationship from the highest to the lowest
ranks. This implies that subordinates report to their immediate supervisors who, in
turn, report directly to their own boss. The order of this chain should be maintained
when some instructions are to be passed on or enquiries are to be made.
10. Order: Placement of men and materials should be properly made. Proper space
should be made available where materials can be kept safely. Each man should be
provided the work for which he is best suited.
11. Equity: This principle requires the managers to be kind and just to workers. This
promotes a friendly atmosphere between superiors and subordinates and motivates
them to perform their duties efficiently.
12. Stability of Tenure: Employees should be provided stability and continuity of their
tenure of employment. There should not be frequent termination of employees. This
could be achieved through attractive remuneration and honourable treatment of
personnel.
13. Initiative: This implies encouraging initiative among its personnel to chalking out and
execution of a plan to achieve the desired results.
14. Esprit de Corps: These French words mean team spirit. Managers should infuse the
spirit of team work and cooperation among the employees. It helps in developing an
atmosphere of mutual trust and a sense of unity.
Fayol made it clear that these principles can be applied to most organisations, but these
are not absolute principles. Organisations are at liberty to adopt those which suit them or
to delete a few according to their needs.
The various characteristics of management are:
(a) Management is universal: It means that management is required for every type of
organisation. It may be a business organisation or social or political. It may be a small
firm or a large one. Management is required by a school or a college or university or
a hospital or a big firm like Reliance Industries Limited or a small variety store in your
locality. Thus, it is a universal phenomenon and is common and essential element in all
organisations.
(b) Management is goal directed: Every organisation is created to achieve certain
goals. For example, for a business firm it may be to make maximum profit and/or to
provide quality products and services. Management of an organisation is always aimed
at achievement of the organisational goals. Success of management is determined by
the extent to which these goals are achieved.
(c) Management is a continuous process: Management is an ongoing process. It
continues as long as the organisation exists. No activity can take place without
management. To perform all activities like production, sale, storage, operation etc.
management is required. So, as long as these activities continue the process of
management also continues to operate.
(d) Management is an integrating process: All the functions, activities, processes and
operations are intermixed among themselves. It is the task of management to bring
them together and proceed in a coordinated manner to achieve desired result. In fact,
without integration of men, machine and material and coordination of individual efforts
to contribute successfully as a team, it will be difficult to achieve organisational goals.
(e) Management is intangible: Management is not a place like a graphic showing Board
meeting or a graphic showing a school Principal at her office desk which can be seen.
It is an unseen force and you can feel its presence in the form of rules, regulation,
output, work climate, etc.
(f) Management is multi-disciplinary: Management of an organisation requires wide
knowledge about various disciplines as it covers handling of man, machine, material
and looking after production, distribution, accounting and many other functions. Thus,
we find the principles and techniques of management are mostly drawn from almost all
fields of study like – Engineering, Economics, Sociology, Psychology, Anthropology,
Mathematics, Statistics etc.
(g) Management is a social process: The most important aspect of management is
handling people organised in work groups. This involves developing and motivating
people at work and taking care of their satisfaction as social beings. All managerial
actions are primarily concerned with relations between people and so it is treated as a
social process.
(h) Management is situational: The success of management depends on, and varies
from, situation to situation. There is no best way of managing. The techniques and
principles of management are relative, and do not hold good for all situations to come.
IMPORTANCE OF MANAGEMENT
The existence and success of any organisation largely depends on the kind of management
it has. No amount of quality resources is going to help unless they are put to productive
use by efficient management. It is because of this reason that management is studied as a
subject in almost every discipline of study. In today’s scenario with globalisation, job
specialisation, changing technologies, new responsibilities of business, consumerism,
competition and emphasis on research and development, the role of management has
grown multifold. Its importance is reflected in the positive result that the organisation can
get in respect of the following.
(a) Attainment of Goals
Every organisation has a goal to achieve and each employee in the organisation also has
his own goals that he wants to achieve. Even at operational level each department, each
unit or even each group has a goal that it wants to achieve. It is only through proper
management – by well thought of planning, good direction and proper coordination and
control that effectiveness to the efforts of each group to achieve given goals can be ensured.
(b) Stability and Growth
Management strives to utilise the available resources of the organisation effectively and
efficiently. It controls the activities and operations, integrates the functions, motivates the
employees, maintains the health of the organisation in the ever changing environment. It
thus, ensures stability to the working of the organisation and contributes to its growth.
(c) Change and Development
Management keeps itself in touch with the changes in the environment and foresees
development in the future. Accordingly, plans are made to keep the organisation ready to
meet the challenges. The technologies, operations, process as human factors are developed
on a continuous basis keeping an eye on the future.
(d) Efficiency and Effectiveness
By proper planning, staffing, organising, coordinating, directing, and its controlling activities,
the management helps in achieving efficiency and effectiveness to human efforts and
operations.
NATURE OF MANAGEMENT
The nature of management can be better appreciated by looking at it
• as a process
• as a discipline
• as a group of individuals
• as a profession, and
• as a science as well as an art.
(a) Management as a Process
Management consists of a series of inter-related activities of planning, organising and
controlling. All activities are undertaken in a proper sequence with a systematic approach
so as to ensure that all actions are directed towards achievement of common goals. Thus,
it is regarded as a process of organising and employing resources to accomplish the
predetermined objectives.
(b) Management as a Discipline
Management is a systematised body of knowledge that has developed, grown and evolved
over the years through practice and research. The knowledge so cumulated is disseminated
to successive generations of managers and used by them in performing their jobs. Thus, it
has become a separate field of study with its own principles and practices and thus, evolved
as an independent discipline with its own techniques and approaches.
(c) Management as a Group
Management normally refers to a group of managers working in an organisation. It includes
the top executive as well as the first line supervisors. These managers perform their functions
jointly as a group. The success of business does not depend on the efficiency of one, but
of all manages taken together. Managers work as a team so that objectives of the business
are fully achieved. However, in every organisation there are certain levels of managementwith varying degree of the nature of authority and responsibilities. You will learn about
these later in this lesson.
(d) Management as a Science as well as an Art
Management is regarded as a science as well as an art. Science refers to a systematic
body of knowledge with reference to understanding of some phenomenon or subject or
object of study. It establishes a cause and effect relationship between variables. It is based
on systematic explanation, experimental analysis, critical evaluation and logical consistency.
In science we learn the ‘why’ of a phenomenon. For example, two molecules/atoms of
hydrogen and one molecule/atom of oxygen makes water (H2O). Similarly we can say
earth moves round the sun. Any subject of study to be called a science should have the
following characteristics:
(i) There must be a systematised body of knowledge that includes concepts, people and
theories.
(ii) We should be able to establish a cause and effect relationship.
(iii) Its principles should be verifiable.
(iv) Its should ensure predictable results.
(v) It should have universal application.
Management as a subject of study fulfils almost all the above characteristics. Theories and
techniques like scientific management, PERT and CPM, break even analysis, budgeting
etc. are all scientific in nature. However, since it deals with human beings, we cannot
predict a definite cause - effect relationships. Hence management is not treated as a pure
or full-fledged science.
As for the art, you know that it refers to bringing about the desired result through application
of skill. It is a personalised process and states that there is no best way of doing a thing.
Thus, it is creative and it improves by practice. In art we learn about the ‘how’ of a
phenomenon. For example, take the case of painting. There is nothing called the best
way of painting. More one paints, the more he improves and learns how to paint. Now
look at management. Here also we apply a lot of skill (like technical, conceptual, human
etc.) and it is also creative in nature. Nobody can say that this is the best way of managing.
It varies from one manager to another. The more one manages, the more experienced and
expert he becomes.
Thus, management is a combination of both science and art.
(e) Management as Profession
In the first lesson you had learnt that profession is an occupation. To be precise, any
occupation that satisfies the following requirements is called a profession.
(i) It must be an organised and systematised body of knowledge. Take for example
professions like engineering or chartered accountancy. These require a specialised
knowledge.
(ii) There is always a formal method of acquisition of such knowledge. In other words,
individuals, to pursue a specific profession, must acquire the specialised knowledge
through some formal institutions. For example, you need to get a degree in law or
engineering to pursue the profession of a lawyer or engineer.
(iii) There exists an association to devise certain code of conduct for the professionals.
This code of conduct lays down norms to be observed by the professionals while
doing their job. Violation of the prescribed code can lead to derecognising the
professional to practise.
(iv) A profession is no doubt an occupation to earn one’s livelihood but the financial reward
is not the main measure of their success. The professional use their specialised
knowledge to serve the long-run interests of the society and are also conscious of their
social responsibility.
Though management may not meet all the requirements of a profession in strict sense of
the term, but it meets most of the above requirements and is, now a days, regarded a fullfledged
profession. A number of institutions have come up to teach management in a
formal way and train future managers. Various associations like American Management
Association in USA, All India Management Association in India have been functioning as
representative bodies of managers and have duly devised codes of conduct for managers.
Many more organisations have come up in the specialised fields of management.
LEVELS OF MANAGEMENT
As stated earlier, there are certain levels of management with varying degree of authority
and responsibilities. Some managers decide about the objectives of the business as a
whole; some managers perform functions to achieve these objectives in different
departments, like production, sales, etc, and some of the managers are concerned with
the supervision of day-to-day activities of workers. Managers performing different types
of duties may, thus, be divided into three categories:
• Top-Level Management
• Middle-Level Management
• Lower-Level Management
the top level management includes Board of Directors and the
Chief Executive. The chief executive may have the designation of Chairman, Managing
Director, President, Executive Director or General Manager. This level determines the
objectives of the business as a whole and lays down policies to achieve these objectives
(making of policy means providing guidelines for actions and decision). The top management
also exercises an overall control over the organisation.
The middle-level management includes heads of various departments, e.g., production,
sales, etc., and other departmental managers. Sometimes senior departmental heads are
included in the top management team. The objectives of the business as a whole are
translated into departmental objectives for the middle level management. The heads of the
departments then work out their own strategies so as to achieve these objectives. Middlelevel
managers are particularly concerned with the activities of their respective departments.
The lower-level management consists of foremen and supervisors who look after the
operative workers, and ensure that the work is carried out properly and on time. Thus,
they have the primary responsibility for the actual production of goods and services in the
organisation.
These three levels of management taken together form the ‘hierarchy of management’. It
indicates the ranks and positions of managers in the hierarchy. It shows that the middlelevel
management is subordinate to the top-level and that the lower-level is subordinate to
the middle-level management.
the number of people at each level increases as one moves from top to bottom. Workers including crafts persons, manual labourers, engineers, scientists, etc. form the bulk of the organisation membership.
Within the managerial ranks, the number of managers at each level decreases as one
moves from lower-level to top-level management. At the top of the organisation, there is
usually one person.
FUNCTIONS OF MANAGEMENT
In every organisation, the managers perform certain basic functions. These are broadly
divided into six categories viz., planning, organising, staffing, directing, coordinating and
controlling. These are discussed basically hereunder. You will learn about all these functions
in detail in the lessons to follow.
(a) Planning
Planning is deciding in advance what is to be done, when it is to be done, how it is to be
done. It is basically concerned with the selection of goals to be achieved and determining
the effective course of action from among the various alternatives. This involves forecasting,
establishing targets, developing the policies and programming and scheduling the action,
procedure, etc., Thus, planning requires decisions to be made on what should be done,
how it should be done, who will do it, where it will be done, and why it is to be done. The
essential part of planning consists of setting goals and programmes of activities.
(b) Organising
After the plans have been drawn, management has to organise the activities, and physical
resources of the firm to carry out the selected programmes successfully. It also involves
determining the authority and responsibility relationships among functions, departments
and personnel at various levels to ensure smooth and effective function together in
accomplishing the objective. Thus, the organising function of management is primarily
concerned with identifying the tasks involved and grouping them into units and departments,
and defining the duties and responsibilities of people in different positions within each
department for well coordinated and cooperative effort in the organisation.
(c) Staffing
Staffing is concerned with employing people for the various activities to be performed.
The objective of staffing is to ensure that suitable people have been appointed for different
positions. It includes the functions of recruitment, training and development, placement
and remuneration, and performance appraisal of the employees.
(d) Directing
The directing function of management includes guiding the subordinates, supervising their
performance, communicating effectively and motivating them. A manager should be a good
leader. He should be able to command and issue instruction without arousing any resentment
among the subordinates. He should keep a watch on the performance of his subordinates
and help them out whenever they come across any difficulty. The communication system,
i.e., exchange of information should take place regularly for building common understanding
and clarity. The managers should also understand the needs of subordinates and inspire
them to do their best and encourage initiative and creativity.
(e) Controlling
This function of management consists of the steps taken to ensure that the performance of
work is in accordance with the plans. It involves establishing performance standards and
measuring the actual performance with the standards set. If differences are noticed,
corrective steps are taken which may include revision of standards, regulate operations,
remove deficiencies and improve performance.
(f) Co-ordinating
Management has to ensure that all the activities contribute to the achievement of the
objectives of the business as a whole. This requires integration of activities and
synchronisation of efforts. The heads of different departments should not treat each other
as competitors but should work as organs of one body. As the proper functioning of every
organ of a human body is important for a healthy body, the work of every department is
important for the organisation as a whole. Managers should, therefore, see that everybody
in the organisation understands its objectives and works in co-operation with others to
achieve these objectives. This function of management is called co-ordination. It consists
of harmonising group effort so as to achieve common objectives.
CONCEPT OF SCIENTIFIC MANAGEMENT
F.W. Taylor, well-known management expert, worked as an apprentice, machinist, foreman
and ultimately as the chief engineer of a steel company in U.S.A. Taylor suggested a new
approach to management early in the twentieth century. This is known as ‘Scientific
Management’. The basic principles developed by Taylor as principles of scientific
management were:
1. Development of a true scientific approach to management replacing the old rule of
thumb method, which would enable managers, among other things, to determine the
best method of performing each task;
2. Scientific selection and placement of workers so that each worker could be assigned
the task for which he is best suited;
3. Scientific training and development of workers so as to achieve the highest level of
efficiency; and
4. Close co-operation between management and labour to ensure that work is carried
out in accordance with the scientific principles which are developed.
A number of techniques like time study, motion study, standardisation of equipment and
working conditions, and differential piece rate of wages were also developed to facilitate
scientific management.
GENERAL PRINCIPLES OF MANAGEMENT
Scientific management was primarily concerned with increasing the efficiency of individual
workers at the shop floor. It did not give adequate attention to role of managers and their
functions. However, around the same time Henry Foyal, Director of a coal mining company
in France made a systematic analysis of the process of management. He strongly felt that
managers should be guided by certain principles, and evolved 14 general principles of
management which are still considered important in management. These are:
1. Division of Work: This principle suggests that work should be assigned to a person
for which he is best suited. Work should be divided into compact jobs to be assigned
to individuals. This facilitates specialisation and improves efficiency.
2. Authority and Responsibility: Responsibility means the work assigned to any person,
and authority means rights that are given to him to manage people and things to ensure
performance. In other words, authority should go hand in hand with the responsibility
for effective results.
3. Discipline: This principle emphasises that subordinates should respect their superiors
and obey their orders. On the other hand, superiors’ behaviour should be such that
they make subordinates obedient. If such discipline is observed, there will be no problem
of industrial disputes.
4. Unity of Command: A subordinate should work under the supervision of one superior
only from whom he gets instructions and to whom he is accountable. It avoids confusion
in authority and instructions.
5. Unity of Direction: Each group of activities having the same objective must have
one head and one plan of action. Otherwise, there may be wastage, over expenditure
and useless rivalry among the managers.
6. Subordination of Individual Interest to General Interest: While taking any
decision, the collective good and collective interest of the organisation as a whole
should be preferred to individual interests. The individual’s interest should be
subordinated to the overall interest of the organisation. This ensures welfare of the
organisation as well as its individual members.
7. Remuneration: Management should try to give fair wages to the employees so as to
ensure reasonable satisfaction of workers and productivity for the organisation.
8. Centralisation: When a single person controls the affairs of an organisation, it is said
to be complete centralisation. In small concerns, a single manager can supervise the
work of the subordinates easily, while in a big organisation, control is divided among a
number of persons to facilitate operational decision making at various levels. Fayol’s
opinion was that there should be a proper balance between centralisation and
delegation of authority in an organisation.
9. Scalar Chain: This is the chain of authority relationship from the highest to the lowest
ranks. This implies that subordinates report to their immediate supervisors who, in
turn, report directly to their own boss. The order of this chain should be maintained
when some instructions are to be passed on or enquiries are to be made.
10. Order: Placement of men and materials should be properly made. Proper space
should be made available where materials can be kept safely. Each man should be
provided the work for which he is best suited.
11. Equity: This principle requires the managers to be kind and just to workers. This
promotes a friendly atmosphere between superiors and subordinates and motivates
them to perform their duties efficiently.
12. Stability of Tenure: Employees should be provided stability and continuity of their
tenure of employment. There should not be frequent termination of employees. This
could be achieved through attractive remuneration and honourable treatment of
personnel.
13. Initiative: This implies encouraging initiative among its personnel to chalking out and
execution of a plan to achieve the desired results.
14. Esprit de Corps: These French words mean team spirit. Managers should infuse the
spirit of team work and cooperation among the employees. It helps in developing an
atmosphere of mutual trust and a sense of unity.
Fayol made it clear that these principles can be applied to most organisations, but these
are not absolute principles. Organisations are at liberty to adopt those which suit them or
to delete a few according to their needs.
