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Management is an individual or group of individuals who accept the responsibility of leading an organization. They plan, organize, direct and control all the essential activities of the organization. Management does not do the work themselves. Motivate others to do the work and co-ordinate (i.e. gather) all work to achieve the objectives of the organization.(By Henri Fayol)
Features of Management
The nature, the main features or functions of management are:
Management is a continuous and endless.
This means that the work is done by people.
It is a results-oriented science and art.
It accesses and uses knowledge from multiple disciplines.
This is a group (team) and not an individual achievement (personal) activity.
It follows rules established for organizational problems.
It helped but not replaced by computers.
It works, fits or is adjusted according to the situation you face.
It is separated from itself and not as property.
It is both an art results-oriented and science-oriented research.
It is ubiquitous and essential in every activity.
You cannot see (intangible), but its impact can be felt.
A professional approach is used to carry out its task.
It is dynamic in nature, ie, keeps changing and improving.
History of Management
The first known management ideas were recorded in 3000-4000 BC One Pyramid built by Egyptian ruler Cheops require work to be performed by 100,000 men for over twenty years in the 2900 BC It covered 13 acres of land and measures 481 meters in height. The stone slabs had to be moved thousands of miles away. As folklore goes, even the sound of a hammer is not heard in the villages near the site of the pyramids. This monumental work could not be completed without adherence to the principles of good governance. The evolution of management theory in the last century is the story of the changing role of leadership in organizations. As leaders of the organization evolved from the carrot and the stick wielding owner-managers of the industrial age before Servant leaders of the 21st century, the impact of individual leaders in organizations became increasingly important. While the former managers could rely on the tactics of the authority and strong arm to reach their goals, service leaders in our time are challenged to set personal examples to live the values â€‹â€‹and principles they wish their followers to achieve.
History and Evolution of Management Thought
Theory and history are indispensable tools for managing contemporary organizations. A theory is a conceptual frame work for organizing knowledge that provides a blueprint for various courses of action.
Example: Car production has changed dramatically over the years as managers have applied different views or philosophies of management to organize and control work activities. This system, a type of small-batch production, was very expensive, assembling just one car took considerable time and effort and workers could produce only few cars, managers need better techniques to increase efficiency.
Henry Ford revolutionized the car industry. In 1913, he developed the system of mass-production manufacturing, each individual worker performs a single assigned task along a production line and the speed of the conveyor belt is the primary means of controlling their activities.
The result was that each worker performed one specialized task. Due to that ford's management approach increased efficiency and reduced costs so much that by 1920's he was able to reduce the price of a car by two -thirds and sell over two million cars a year. The technique of mass production revolutionised the company's production approach and became the leading car company in the world.
Early Approaches to Management
Robert Owen (1771-1858): Proposed legislative reforms to improve working conditions of labor.
Charles Babbage (1792-1871): Advocated the concept or 'division of labor.
Andrew Ure(1778-1857): Advocated the study of management.
Henry R.Towne (1844-1924): Emphasized the need to consider management as separated field of study and the importance of business skills for running a business.
The Evolution management theory
Organisational Environment Management Theory
Management Science Theory
Behavioural Management Theory
Scientific Management Theory
These are all different theory which is used in different organisation for various frameworks starting from 1890 to 2000. Historical management theory changes to modern management theory.
Behavioural Management Theory
The behavioural approach to management attitudes and behaviours emphasized individual and group processes, and recognized the importance of the process of behaviour in the workplace.
The contributions of the thinkers of Management Thought behaviour
Elton Mayo (1868-1933)
Job performance depends on the individual worker
The group is the key factors in the job performance
Fatigue is the main factor affecting output
Perceived meaning and importance of the work determining output
Management sets production standards
Workplace culture sets its own production standards
Most People dislike work
Work is a natural activity like play
Most people must be coerced and threatened before work
People are capable of self-direction and self-control
Most people prefer to be directed. They avoid responsibility and have little ambition
People become committed to organizational objectives if they are rewarded in doing so
Management Science Theory
Emphasizes the use of mathematical models and statistical methods for decision making and another name is Operations Research. The various branches of the administration science theory provide rigorous quantitative techniques which granted more control over the use of organization resources to produce goods and services.
Includes the application of statistics, optimization models, information models and computer simulations. More specifically, this approach focuses on achieving organizational effectiveness.
Includes two main branches:
Operation Management: It deals with the effective management of production processes and the timely delivery of products and services of an organization.
Management Information System: The information management system focuses on the design and implementation of computerized information systems for business organizations.
Organisational Environment Management Theory
The importance of consider external environment of the organization became apparent after the development open systems theory and contingency theory during the 1960s. A main management approach of contemporary research is to find ways to help administrators improve the way they use the resources of the organization and successfully compete in the global environment. Strategic management and total quality management are two major approaches to help managers make better use of the organization resources.
Organisational management theory has to approach:
Open Systems theory
Open Systems Theory
Management and Technological Abilities
Inputs Transformation Process Outputs
Profits and losses
Traditional viewpoint what managers do?
How parts fit together
Managers use other viewpoints to solve problems
Behavioural Viewpoint, How managers influence others
Scientific Management Theory
The evolution of modern management began in the last decades of the nineteenth century after the industrial revolution had swept through Europe, Canada, and the United States. In the new economic climate, managers of all types of organizations, political, educational and economic, were increasingly trying to find better ways to meet customer needs. Many important economic, technical and cultural changes taking place at this time.
While working at the Midvale Steel Company in Philadelphia, Taylor developed a new and radical approach to time management, known as scientific management. Conducted studies on how workers or machines performing tasks measure and analyse every measurable aspect of the work. It then determines the standard times and sequences to perform each task, with this information, administrators Taylor always realistic production standards by man and machine hours.
Taylor's scientific management changed the role of managers are run-of-the-mill men whip specialized foremen who were adequately equipped to monitor every stage of the production process. On a larger scale, revolutionized management thinking and established the basis for the formation of many other management systems in the coming decades.
The Administrative Approach
Together with scientists studying directors mix person the task of increasing efficiency, other researchers are focusing on the administrative, organizational structure is the system of relations between the tasks and authority that control how employees use resources to achieve organizational goals. Two of the most influential views regarding the creation of efficient organization administration developed in Europe. Henri Fayol, the French director who developed a management model.
The Bureaucratic Approach
System of written rules and standard operating procedure that specify how employees should behave.
Clearly hierarchy of authority.
Clearly specified system of task and role relationships.
A bureaucracy should have a:
Selection and evaluation system that rewards employees fairly and equitably.
Schools of Management Thoughts
Management Science School
One of the first schools of management thought, the classical management theory, developed during the Industrial Revolution when new problems related to the factory system began to appear.
This school of thought is made up of two branches: classical scientific and classical administrative.
Development of new standard methods to perform each task
Selection, training and development of workers instead of allowing them to choose their own tasks and train
The development of a spirit of cooperation between workers and management to ensure the work is carried out in accordance with procedures designed
The division of labor between workers and management in almost equal parts, with each group taking the job that is better equipped
Division of work: Division of labor and specialization produces more and better work with the same effort.
Authority and responsibility: Authority is the right to give orders and the power to exact obedience. A manager has formal authority because of his position and the personal authority on the basis of individual personality, intelligence and experience. Authority creates liability.
Discipline: Obedience and respect within an organization are absolutely essential. Good discipline requires managers to apply sanctions if violations are evident.
Control unit: An employee should receive orders from only one superior.
Unit address: Organizational activities must have a central authority and a plan of action.
As research continues management in the 20th century, questions began to arise concerning the interactions and motivations of individuals within organizations. Management principles developed during the classical period were simply not useful in treating many management situations and could not explain the behaviour of employees.
Broke Maslow's hierarchy of needs in five areas:
Physiological needs-Maslow groups all physical needs necessary for maintaining basic human welfare, such as food and drink in this category. After the need is satisfied, however, is no longer a motivator.
Security needs- These needs include the need for basic security, stability, security and freedom from fear. A normal state exists for a person to have all these needs generally satisfied. Otherwise, they become primary motivating.
Belonging and love needs- After the physical and safety needs are met and are no longer motivators, the need for belonging and love emerges as the main motivator. The individual strives to establish meaningful relationships with significant others.
Esteem needs- An individual must develop confidence and want to achieve the status, reputation, fame and glory.
Self-actualization needs- Assuming that all the above in the hierarchy needs are met, the person feels the need to find himself.
Roethlisberger May and concluded that the increase of productivity as a result of the control mechanism in place of the lighting changes or other benefits associated worker. Because experimenters became the primary supervisors of employees, the intense interest shown for workers was the basis for increasing motivation and resulting productivity. Essentially, the experimenters became a part of the study and influenced the outcome.
Human relations and social needs of workers are crucial aspects of business management. This principle of human motivation helped revolutionize theories and management practices.
Management Science School
Management science should not be confused with scientific management of classic theory. However, the management science approach also known as quantitative approach is evolved from early application of some scientific management techniques of classical theorists. Due to complexities of organisation, today's managers are required to have better information in order to take effective decisions. Data to be analysed and sophisticated computations to be done, a wide variety of quantitative tools have been developed and high-speed computers deployed in the analysis of information.
Tools such as linear programming, simulation models, CPM, PERT, inventory control and quality control tools were extensively used in this approach. Thus focus of management science is on making objective and rational decisions. Objective rationality implied an ability and willingness to follow a reasoned, unemotional, orderly and scientific approach in relating means with ends and in visualizing the totality of the decision environment. It is an attempt rationalizes and quantifies the managerial process. This approach facilitated disciplined thinking, achieving precision and perfection by expressing relationships among variables and facts in quantitative terms. The area such as organizing, staffing and leading which are more human than technical in nature, found this approach not so beneficial and this major limitation of these tools.
Functions of Management
The important functions of management are:
Planning involves tracing the process of achieving a particular goal. Seems ahead and prepares for the future. It is a process of sedimentation business objectives and designing the methods for achieving those goals.
Steps in planning function
Establishment of Local Planning
Choosing the alternative course of action
Formulation of derivative plans
Monitoring / Evaluation Plan
To organize a business is to fully equip. This includes operation, employees, raw materials, tools, etc. This capital can be divided into two main sections, organizing human and material organization. Once managers have set goals and developed plans for achieving them, shall be designed and develop a human organization that is capable of successfully carrying out plans.
Principles of Organising
Principle of specification
Functional definition Principle
Principles of Control Scale / Supervision
Principle of unity of command
Principle of Specification
According to this principle, all the work of a concern should be divided among subordinates on the basis of qualifications, skills and abilities. It is through the division of labour specialization can be achieved resulting in an effective organization.
Functional definition Principle
According to this principle, all functions in a concern must be complete and clearly defined managers and subordinates. This can be done through a clear definition of the roles, responsibilities, authority and relationships of people to each other.
Principle of Supervision
According to this principle, the scope of the monitoring is a space that represents the number of employees that can be effectively managed and controlled by a single manager. According to this principle, a manager must be able to handle whatever the number of employees under his command should be decided.
Principle of Unity of Command
It involves a subordinate-superior one. Each slave is responsible and accountable to a head at the same time. This helps avoid miscommunication and feedback and the response is immediate. The control unit also helps in effective combination of resources, i.e. the physical, financial, which helps in easy coordination and, therefore, effective organization.
The administrator must ensure that everything that goes in line with the plans, instructions and principles. The control element Management includes the following three elements:
• The establishment of performance standards
• Measure current performance and the juxtaposition with the standards set
• The rectification of actions that do not meet standards
Therefore, the control is a vital function of management.
Functions of controlling
Control should be tailored to plans and positions.
Control must be tailored to individual managers and their responsibilities.
Control should point up exceptions as critical points.
Control should be objective.
Control should be flexible.
Control should be economical.
Control should lead to corrective actions.
Technique of Controlling
Total Quality Management: TQM refers to view of quality of products, looking only at the quality of final product and services. Successful TQM are built through the dedicated and combined efforts of everyone in the organization, which will only through by ensuring that activities that are taking place in the organisation are providing desired results which will come through controlling function.
Quality products work the first time.
Points to focus for TQM:
Having a strategic approach to improvement.
Promote mutual respect and teamwork.
An administrator must also be a leader. He must be able to plan, organize, staff and lead. Leading involves motivating, communicating, guiding and stimulating. It requires the manager to train, assist and resolve the issue with employees.
Relationship to other management function
To inspire effort
Communicate the vision
Activate commitment hard-work
To set direction
To ensure results
To create structures
Functions of leadership
The effective group formation helps in the coordination.
There are number of theories and schools of management that will try to explain the reason for the evolution of management and the functions of management that are used in the organizations. The evolution happens when the time changes and there is more competition in the dynamic environment, to match up their competitor and to bring in the revolution in the economy for better product and profitability to the company. The management functions are just the standards which are being used by every organization to make their process of work more simplified and well-structured format of working. These management functions complement the evolution, because evolution is just the change in process to make it more standardize management functions are needed to follow up that change.
According to the functions and a plan to revolutionise these organization, the design is established with help different school of thoughts which is linked with various functions of management to outline the whole structure of management. This design includes the physical facilities, technology and various processes to carry out the production in a structured manner with the help of various functions of management.
Approach implies that the management values â€‹â€‹and concepts from different schools are not universal applications, these concepts and approach is already used my many organisation but in different forms of management functions. Proper management theory management practices have evolved in modern times, and look at the central concerns that have guided its development, which is also focused on the identification of principles leading to the creation of most efficient organization system and management.