What Is The Management Commerce Essay

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Management is a universal phenomenon. It is a very common and extensively used term. All political, business, social and cultural organizations are involved in it because it is the management which helps in supporting and directing the different efforts towards a certain purpose. According to F.W. Taylor, "Management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way". According to Harold Koontz, "Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals".

Management is a purposive or wilful activity. Management is something which directs or leads group efforts towards the achievement of a certain pre - determined goal. Management is the process of working with others in an efficient and effective manner to accomplish the goals of the organization and also achieve those goals by efficiently using the limited resources in the fluctuating world. These goals might differ from one initiative to another. Example: For one initiative, it may be launching of new products by doing market analysis and for other, it might be maximising profit by cost minimization.

Management involves constructing an internal environment: - It is the management which puts the numerous factors of production into use. Thus, it is the responsibility of management to create such situations and environments which are beneficial to maximum efforts so that people are able to perform their task effectively and efficiently. It includes determination of salaries and wages, confirming availability of raw materials, formulation of rules and regulations, etc.

Hence, good management includes both being efficient and effective. Being efficient means performing the task properly and correctly at a minimum possible cost with least wastage of resources. Being effective means performing a suitable task, i.e, fitting the square pegs in square holes and round pegs in round holes.

Management can be defined as following:-

Management as a Process

Management as an Activity

Management as a Discipline

Management as a Group

Management as a Science

Management as an Art

Management as a Profession

History of Management

The verb 'manage' originates from the Italian term 'maneggiare' (to handle - especially tools), which in turn comes from the Latin manus (hand). The French term 'ménagement' influenced the improvement in meaning of the English term management in 17th and 18th centuries. According to Peter Drucker (management consultant, author and educator), the basic task of management is dual: marketing and innovation.

Traditionally, the term ''management'' refers to the activities involved in the four general functions: planning, organizing, leading and controlling of resources. These four functions re-occur throughout the organization and are highly combined and inter-related. Emerging trends in management involve affirmations that leading is different than managing, and the nature of how the four functions are carried out must change to accommodate a new paradigm in management.

Management in Hospitality Industry

A hotel is an organization, with its own sustainable environment. The resources are used appropriately and efficiently to deliver products and services for customer satisfaction. Any hotel, just like a company shows systematic arrangement of employees on different levels of management. There are top level managers, middle level managers and front line managers handling operative level employees.

Taking an example of a leading hotel chain in India, the Indian hotels Company Limited (IHCL) was selected. Indian Hotels Company Limited is headed by a board of directors called Group Corporate Centre (GCC), which is the decision making body and chief planning committee. The GCC comprises Chairman Ratan N Tata, RK Krishna Kumar, R Gopalakrishnan, Ishaat Hussian and Arunkumar Gandhi. They analyse the performance data presented to them by the hotels and make decisions on operational and functional matters. The corporate decides the hotels budget, the hotels staffing or even the guest amenities to be placed in the room to ensure brand standard. The Corporate ,makes most of the hotels decision for it and communicates them down to the hotel level. Raymond Bickson, Managing Director and CEO of Taj Hotels, Resorts and Palaces. At the hotel, the General Manager of the hotel works under the Chief Operating Officer and ensures that the required tasks are carried out efficiently and effectively. He/She in turn communicates the decision down to the head of departments (HODs), who then ensure the task and policy formulated by the corporate are efficiently carried out. The corporate plans out policies and future goals to be achieved by the hotel, which is communicated throughout the organization. The suitable staffing ensures that a competent leader can understand the guidelines placed by the corporate and will be able to communicate it correctly to the front level managers. The front level managers, will then ensure that the hotel staff works to ensure that these goals are accomplished. The goals that are in process have to be monitored, so the corporate before making new policies will monitor/control the already in progress process. And also the challenges faced by them.

Definition of Management Theory

A collection of ideas which set forward general rules on how to manage or run a business or organization. Management theory shows how managers and supervisors relate to their organizations in understanding its goals, the application of effective means to achieve the goals and how to motivate and encourage employees to perform to the highest standard, and showcase their talent, skill and creativity.

Historical Theories of Management

Scientific Management Theory (1890-1940)

At the end of the century, the most prominent organizations were huge and industrialized. Frequently, they included continuing or current routine tasks which manufactured a range of products. The United States highly focused and valued scientific and technical matters, comprising careful measurement and specification of activities and results. Management have a tendency to be the same. Frederick Taylor established the scientific management theory which encouraged this careful specification and measurement of all organizational tasks. And the tasks were systemized as much as possible. Employees were rewarded with bonus, and punished also. This method seemed to work well for organizations with systematic, routinized activities.

Bureaucratic Management Theory (1930-1950)

Max Weber elaborated the scientific management theory with his bureaucratic theory. He concentrated on distributing organizations into hierarchies, creating strong lines of authority and control. Max Weber advised organizations develop broad and comprehensive standard operating procedures (SOPs) for all routinized duties or tasks.

Human Relations Movement (1930-today)

Finally, the unions and government guidelines responded to the rather degrading effects of these theories. More consideration was given to individuals and their distinctive skills in the organization. A key belief involved that the organization would flourish and succeed, if its staff and employees prospered as well. Human Resource departments were added to organizations. The behavioural sciences had a major role in helping to understand the requirements of employees and how the necessities of the organization and its employees could be better aligned and designed. Various new theories were introduced, many of them based on the behavioural sciences (some had name like theory "X", "Y" and "Z").

Contemporary Theories of Management

Contingency Theory

Mainly, the contingency theory states that when managers make a decision or choice, they must take into account all traits of the current situation and act on those traits that are vital to the situation at hand. Ultimately, it's the method that "it depends." For example, the current effort to find the best management or leadership style might now determine that the best style depends on the situation. If one is leading soldiers in the Persian Gulf, an autocratic style is possibly the best (but, many might argue here). If one is leading a university or hospital, a more facilitative and participative leadership style is possibly the best.

Systems Theory

Systems theory has had a major effect on management science and understanding organizations. The effect of systems theory in management is that educators, consultants, writers, etc. are helping and assisting managers to look at the organization from a wider perspective or view. This theory has got a new outlook for managers to understand patterns and happenings in the workplace. The managers distinguish the different parts of the organization and the inter-relations of the different parts, e.g., the coordination of central administration with its programs, supervisors with workers, engineering with manufacturing, etc. This is a major improvement. Earlier, the managers usually took one part and concentrated on that. Then they focused on another part. The difficulty was that an organization could, e.g., have a brilliant central administration and wonderful set of instructors, but the departments didn't coordinate at all.

Chaos Theory

As random and messy as world events appear today, they appear as chaotic in organizations, too. So far for years, managers have performed on the basis that organizational events can every time be controlled. A new theory (or some say "science"), chaos theory, identifies that events or happenings indeed are hardly controlled. Many chaos theorists (as do systems theorists) refer to biological systems when describing their theory. They suggest that systems logically go to more difficulty, and as they do so, these systems turn into more volatile (or susceptible to unpredictable events) and must spend more energy to preserve that complexity. As they spend more energy, they look for more structure to retain stability. This movement lasts till the system splits, combines with another complex system or falls apart completely. This development is what many see as the development in organizations, in life and the world in general.