Management concept free essay sample

Management is a worldwide phenomenon and is therefore a popular and widely applied term. Management involves all kinds of organizations, whether they are political, business, social or cultural because it aids and provides directions for reaching a specific goal through the efforts of the people working in an organization. Management is an activity with a definite purpose or aim. It is an activity which gives direction to the people’s endeavors for accomplishing specific set aims in an organization. It is a method of working jointly with your own efforts and through others in an organization in order to accomplish its goals by utilizing minimum reserves in this transforming world. There are plenty of chances that these goals may change from one organization to another. For instance, new products may be launched by one enterprise through market analysis whereas the other enterprise may try to maximize their profits by reducing their rates. Management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way. Management involves creating an internal environment and hence, it makes use of different aspects of production. Hence, it is the management’s duty to make the environment favorable so that the people can put in their best efforts in order to do their jobs effectively and capably. This involves the easy access of raw materials, resolving the issue of wages and salaries, forming certain rules and regulations and so on. Hence, good management involves working effectively and efficiently too. To work effectively denotes doing the task properly i. e. , matching the square pegs and round pegs in their respective holes. To be efficient signifies ensuring the task is done properly with minimum cost and wasting resources. Management as a Process Generally, those processes which are performed by managers are called management processes. Management refers to a sequence of functions which are related with each other. It is the procedure through which management can operate, direct and also create a goal-oriented organization by carrying on human efforts systematically, in a synchronized manner and through great cooperation with each other. Managers are commonly involved in planning, organizing, directing, motivating, controlling and decision-making. These processes are also termed as organizational processes because they go beyond an individual manager and affect the entire organization. The term management is explained in different ways. For example, it is said that management is what management does. Here, management is explained with reference to its basic functions which include planning, organizing, coordinating and controlling. Similarly, management is described as a process which involves various elements. Management process is a continuous one and is run by the managers functioning at different levels. Management is now recognized as a distinct process in which managers plan, organize, lead, motivate and control human efforts in order to achieve well defined goals. In fact, process means a series of activities/operations undertaken/conducted for achieving a specific objective. Process is a systematic way of doing things. For example, in a factory there is a production process. Similarly, in the management process, resources and human efforts are used in an orderly manner for achieving specific objectives. The management process suggests functions to be performed by the managers. Definition of Management Process 1. According to D. E. McFarland, Management is the distinct process by which the managers create, direct, maintain and operate purposive organization through systematic, co-coordinated and cooperative human efforts†. 2. According to George R. Terry, â€Å"Management is a distinct process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish stated objective by the use of human beings and other resources† 3. According to Henry Fayo, To manage is to forecast and plan, to organize, to command, to co-ordinate and to control. 4. According to Lawrence A. Apply, Management is the development of people and not the direction of things. Management is the personnel administration. 5. According to Horold Kanontz, Management is the art of getting things done through and with the people in formally organized groups. 6. According to Stanley Vance, Management is simply the process of decision making and control over the action of human beings for the express purpose of attaining pre-determined goals. Functions of Management The essential elements/components of Management Process are- a. Planning and decision making b. Organizing c. Staffing d. Motivating e. Leading f. Controlling management in organization. The elements in the management process are actually the basic functions of management these functions constitute the management process in practice. Management process is in fact, management in practice. This process suggests what a manager is supposed to, do or the basic functions that he has to perform while managing the job assigned to him. The following figures show the management process and the elements involved: Planning in Management Planning is deciding in advance what to do, how to do, why to do, where to do and who will be responsible for doing is planning. Determination of the objectives of business, splitting of objectives into goals for each department of the organization and formulating policies, programs, procedures rules and regulations and budget are the important steps involved in planning. Planning is a process which involves the determination of future course of action, i. e. why an action, how to take an action, and when to take action are main subjects of planning. Planning Definition Planning bridges the gap from where we are to where we want to go. It makes it possible for things to occur which would not otherwise happen. -Koontzon and ODnel. Planning may be broadly defined as a concept of executive action that embodies the skill of anticipating, influencing, and controlling the nature and direction of change. McFarland Importance of Planning 1. Planning increases the organizations ability to adapt to future eventualities: The future is generally uncertain and things are likely to change with the passage of time. The uncertainty is augmented with an increase in the time dimension. With such a rise in uncertainty there is generally a corresponding increase in the alternative courses of action from which a selection must be made. The planning activity provides a systematic approach to the consideration of such future uncertainties and eventualities and the planning of activities in terms of what is likely to happen. 2. Planning helps crystallize objectives: The first step in planning is to fix objectives which will give direction to the activities to be performed. This step focuses attention on the iesults desired. A proper definition and integration of overall and departmental objectives would result in more co-ordinate inter-departmental activities and a greater chance of attaining the overall objectives. 3. Planning ensures a relatedness among decisions: A crystallization of objectives as mentioned above would lead to a relatedness among the decisions which would otherwise have been random. Decisions of the managers are related to each other and ultimately towards the goals or objectives of the enterprise. Creativity and innovation of individuals is thus harnessed towards a more effective management of the company. 4. Planning helps the company to remain more competitive in its industry: Planning may suggest the addition of a new line of products, changes in the methods of operation, a better identification of customer needs and segmentation and timely expansion of plant capacity all of which render the company better fitted to meet the inroads of competition. 5. Adequate planning reduces unnecessary pressures of immediacy: If activities are not properly planned in anticipation of what is likely to happen, pressures will be exerted to achieve certain results immediately or a in a hurry. Thus adequate planning supplies orderliness and avoids unnecessary pressures. 6. Planning reduces mistakes and oversights: Although mistakes cannot be entirely obviated, they can certainly be reduced through proper planning. 7. Planning ensures a more productive use of the organizations resources: By avoiding wasted effort in terms of men, money and machinery, adequate planning results in greater productivity through a better utilization of the resources available to the organization. 8. Planning makes control easier: The crystallization of objectives and goals simplify and highlight the controls required. Planning enables the identification of future problems and makes it possible to provide for such contingencies. 9. Planning can help the organization secure a better position or standing: Adequate planning would stimulate improvements in terms of the opportunities available. 10. Planning enables the organization to progress in the manner considered most suitable by its management: Management, for example, may be interested in stability and moderate profits rather than huge profits and risk of instability. In terms of its objectives, the plan would ensure the actions are taken to achieve such objectives. 11. Planning increases the effectiveness of a manager: As his goals are made clearer, adequate planning would help the manager in deciding upon the most appropriate act. Features of planning Planning is a primary function of management Planning is pervasive Planning is continuous Planning is a mental exercise Planning focuses on achieving objectives Planning is futuristic Planning involves decision making Planning Process Setting objectives: Objectives may be set for the entire organization and each department or unit within the organization. Developing premises: Planning is concerned with the future which is uncertain and every planner is using conjecture about what might happen in future. Identifying alternative courses of action: Once objectives are set, assumptions are made. Then the next step would be to act upon them. Evaluating alternative courses: The next step is to weigh the pros and cons of each alternative. Selecting an alternative: This is the real point of decision making. The best plan has to be adopted and implemented. Implement the plan: This is concerned with putting the plan into action. Follow-up action: Monitoring the plans are equally important to ensure that objectives are achieved. Management Planning Principles Planning is a dynamic process, it is very essential for every organization to achieve their ultimate goals, but, there are certain principles which are essential to be followed so as to formulate a sound plan. They are only guidelines in the formulation and implementation of plans. These principles are as follows: 1. Principle of Contribution: The purpose of planning is to ensure the effective and efficient achievement of corporate objectives, in-fact, the basic criteria for the formulation of plans are to achieve the ultimate Objectives of the company. The accomplishment of the objectives always depends on the soundness of plans and the adequate amount of contribution of company towards the same. 2. Principle of Sound and Consistent Premising: Premises are the assumptions regarding the environmental forces like economic and market conditions, social, political, legal and cultural aspects, competitors actions, etc. These are prevalent during the period of the implementation of plans. Hence, Plans are made on the basis of premises accordingly, and the future of the company depends on the soundness of plans they make so as to face the state of premises. 3. Principle of Limiting factors : The limiting factors are the lack of motivated employees, shortage of trained personnel, shortage of capital funds, government policy of price regulation, etc. The company requires to monitor all these factors and need to tackle the same in an efficient way so as to make a smooth way for the achievement of its ultimate objectives. 4. Principle of Commitment: A commitment is required to carry-on the business that is established. The planning shall has to be in such a way that the product diversification should encompass the particular period during which entire investment on that product is recovered. 5. Principle of Coordinated Planning: Long and short-range plans should be coordinated with one another to form an integrated plan, this is possible only when latter are derived from the former. Implementation of the long-range plan is regarded as contributing to the implementation of the short-range plan. functional plans of the company too should contribute to all others plans i. e. implementation of one plan should contribute to all the other plans, this is possible only when all plans are consistent with one another and are viewed as parts of an integrated corporate plan. 6. Principle of Timing: Number of major and minor plans of the organization should be arranged in a systematic manner. The plans should be arranged in a time hierarchy, initiation and completion of those plans should be clearly determined. 7. Principle of Efficiency: Cost of planning constitute human, physical and financial resources for their formulation and implementation as well. Minimizing the cost and achieving the efficient utilization of resources shall has to be the aim of the plans. Cost of plan formulation and implementation, in any case, should not exceed the organizations outputs monetary value. Employee satisfaction and development, and social standing of the organization are supposed to be considered while calculating the cost and benefits of plan. 8. Principle of Flexibility: Plans are supposed to be flexible to favor the organization to cope-up with the unexpected environments. It is always required to keep in mind that future will be different in actuality. Hence companies, therefore, require to prepare contingency plans which may be put into operation in response to the situations. 9. Principle of Navigational Change: Since the environment is always not the same as predicted, plans should be reviewed periodically. This may require changes in strategies, objectives, policies and programmers of the organization. The management should take all the necessary steps while reviewing the plans so that they efficiently achieve the ultimate goals of the organization. 10. Principle of Acceptance: Plans should be understood and accepted by the employees, since the successful implementation of plans requires the willingness and cooperative efforts from them. Communication also plays a crucial role in gaining the employee understanding and acceptance of the plans by removing their doubts and misunderstanding about the plans also their apprehensions and anxieties about consequences of plans for achievement of their personal goal. Types of Plans Objectives: Objectives are very basic to the organization and they are defined as ends which the management seeks to achieve by its operations. They serve as a guide for overall business planning. Strategy: strategy is a comprehensive plan for accomplishing an organization objectives. This comprehensive plan will include three dimensions, (a) determining long term objectives, (b) adopting a particular course of action, and (c) allocating resources necessary to achieve the objective. Policy: They are guides to managerial action and decisions in the implementation of strategy. Procedure: Procedures are routine steps on how to carry out activities. Procedures are specified steps to be followed in particular circumstances. Method: Methods provide the prescribed ways or manner in which a task has to be performed considering the objective. It deals with a task comprising one step of a procedure and specifies how this step is to be performed. Rule: Rules are specific statements that inform what is to be done. They do not allow for any flexibility or discretion. Programmer: Programmers are detailed statements about a project which outlines the objectives, policies, procedures, rules, tasks, human and physical resources required and the budget to implement any course of action. Budget: It is a plan which quantifies future facts and figures. It is a fundamental planning instrument in many organizations. Organizing in Management Organizing is the process of defining and grouping activities and establishing authority relationships among them to attain organizational objectives. Organizing Definition Organization is the process of identifying and grouping of the works to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most efficiently. Louis A. Allen Importance of Organizing Organizing is generally followed after the planning stage and is considered an important function of management. Management involves synchronizing and using the physical, human and fiscal resources effectively in order to succeed in an organization. Hence, in order for a concern to function properly, it is important that the organization functions well too. The organizational functions are performed well by a manager by the following methods: Specialization: The work of an organization is separated into units and departments through an organizational network of associations. This helps in getting specialization in different areas of work in an organization. Well-defined jobs: Organizational structure aids in getting the right people to do the job by choosing people in accordance with their skills, knowledge and qualifications for working in different departments of the organization. This aids in properly defining the work of an organization which further aids in explaining the responsibilities of each person. Clarifies authority: Organizational structure aids in helping the manager to understand each person’s role. This can be achieved in the manager being able to understand clearly how he has to use his powers. This aids in an increase in production as jobs and responsibilities that are well defined make the manager’s jobs much more efficient. Co-ordination: Organization is a process of establishing co-ordination amongst various departments and it also aids in defining relations amongst various positions and individuals assisting each other. If the managers at a higher level implement their power over the network of activities of managers at lower levels, it can bring about efficiency in work. Effective administration: The organizational structure aids in clarifying the positions of the jobs. The roles and responsibilities of different managers are well-defined and by dividing the work it is easy to achieve specialization. This further aids in an organization that is well-organized and efficient. Growth and diversification: A company’s development depends largely on its smooth functioning and efficiency. This can be achieved by defining clearly the roles to all the managers, achieving co-ordination between power and duties and focusing on specialization. Additionally, a company can expand if its capability increases and this is possible only through a well-defined organization and a formal pattern. Sense of security: Organizational structure defines the positions of the job and the manager’s roles. Only then, it is possible to achieve co-ordination. Hence, well-defined powers aid in inevitably augmenting mental fulfillment and a concern’s safety and this factor is very vital for fulfillment of any job. Scope for new changes: A manger can flourish his experience and knowledge only when the person’s roles and responsibilities are well-defined and he becomes independent. A manger can decide independently and this can effectively lead to adapting new methods of production. New changes in the working of an organization can be brought about only through a pattern of its structure. Organizing Process Division of work: The first process of Organizing includes identification and division of work which shall be done in accordance with the plans that are determined previously. Departmentation: Once the work of identifying and dividing the work has been done those are similar are to be grouped. Linking departments: When the process of departmentation was completed, linking of departments has to be done so that those departments operate in a co-ordinate manner which gives a shape to overall organization structure. Assigning Duties: On completion of departmentation process assigning duties i. e. defining authority and responsibility to the employees on the basis of their skills and capabilities has to be done, which in consequence magnifies efficiency with regard to their work. Defining hierarchal structure: Each employee should also know from whom he has to take orders and to whom he is accountable/responsible. Organization Structure Organization structure is the pattern of relationships among various components or parts of the organization which prescribes the relations among various activities and positions. An effective structure will result in increased profitability of the enterprise. whenever an enterprise grows in size or complexity it needs an adequate organization structure. Line Organization Structure: Hierarchy derived from a scalar process. Organization is quite simple in understanding and implementation. this does not offer scope for specialization. Line and Staff Organization Structure: Staff personnel generally specialists in their fields advice line managers to perform their duties. Staff personnel have right to recommend, but have no authority. Functional Organization: Grouping of activities on the basis of functions required for the achievement of ultimate objectives. Divisional Organization Structure: Several fairly self-contained autonomous units were created. Each unit was headed by a manager and is directly accountable to the organization. Staffing in Management Staffing is that part of the process of management which is concerned with acquiring, developing, employing, appraising, remunerating and retaining people so that right type of people are available at right positions and at right time in the organization. In the simplest terms, staffing is ‘putting people to jobs’. Staffing Definition Staffing is the function by which managers build an organization through the recruitment, selection, and development of individuals as capable employees McFarland Importance of Staffing Filling the Organizational positions Developing competencies to challenges Retaining personnel professionalism Optimum utilization of the human resources Staffing Process Analyzing Manpower requirements: It is making an analysis of work and estimating the manpower requirement to accomplish the same. Recruitment: It is identifying and attracting capable applicants for employment. it ends with the submission of applications by the aspirants. Selection: It is choosing the fit candidates from the applications received in the process of recruitment. Placement: This may be on probation and on successfully completion of the same the candidate may be offered permanent employment. Training and Development: It is concerned with imparting and developing specific skills for a particular purpose. Performance Appraisal: Systematic evaluation of personnel by superiors or others familiar with their performance so as to rank employees to ascertain their eligibility for promotions. Staffing Principles Principle of the purpose of Staffing: Qualified personnel who are able and keen to carry on organizational roles is the main purpose of managerial staffing. It is proved that lack of the said qualities leads to failure. Principle of Staffing: High managerial quality depends on clarity of defining organizational roles and human needs, good methods of managerial assessment and the training given to employees. Organizations without recognized job descriptions, efficient appraisals or any methods for training and development have to depend on outside resources to fill the managerial positions. Alternatively, organizations using individual’s potentials effectively in the enterprise are doing so by utilizing the systems methodology of staffing and human resource management. Principle of job definition: Precise identification of the managerial results is needed to define the magnitude of their positions. Organizational roles of people have different features such as pay, status, power, direction and the likelihood of achievement that makes managers to function well. Principles of Managerial Appraisal: Identification of the managerial activities and clarity of various objectives are needed for precise managerial appraisal against these criteria. The principle implies that the performance of managers is determined by the measurement of verifiable goals against the standards of managerial performance. Managerial appraisal takes into account the main managerial jobs such as planning, organizing, staffing, directing and controlling. Principle of Open Competition: Encouragement of open competition amongst candidates for management positions depends entirely on the full commitment of an enterprise on quality management. Many firms have chosen managers with insufficient abilities because of breach of these principles. Good candidates who can be chosen from outside must be preferred rather than promoting candidates within the enterprise because of social pressures. Simultaneously, by using this principle, the enterprise is obliged to correctly evaluate its people by providing them with chances for growth. Principle of Management Training and Development: For achieving effective development programs and activities, it is important to integrate more managerial training and development with the management methods and objectives. According to the systems approach, the managerial functions, goals of the enterprise and the managers’ professional requirements are correlated with the training and growth efforts. Principle of Training Objectives: The training objectives must be stated correctly in order to achieve them. To aid the effectiveness of training efforts, it is necessary for analyzing training needs as the foundation for giving direction to development. This principle focuses on the importance of training for the needs of the enterprise and individual development. Principles of Ongoing Development: Managers must practice self-development as an ongoing process for fulfilling the commitment of an enterprise towards managerial excellence. This principle states that managers must continuously learn in the present day competitive environment. Managerial knowledge and approaches must be continuously updated and reexamined and their skills must be enhanced in order to get positive results in an enterprise. Motivation in Management Motivation is a means of inspiring people to perform in order to achieve their targets. In relation to work, some emotional factors that affect people’s attitude are the need for money, fame, appreciation, success, team work etc. The need to create eagerness in employees to perform well in their tasks is of utmost importance. Hence a leader’s job is to create performance related interest in employees to accomplish their tasks. Motivation in management describes ways in which managers promote productivity in their employees. It is the process through which managers build the desire to be productive and effective in their employees. Motivation Definition â€Å"Motivation is something (as a need or desire) that causes a person to act† -Websters dictionary Importance of Motivation Motivation is a very important for an organization because of the following benefits it provides:- Puts human resources into action Every concern requires physical, financial and human resources to accomplish the goals. It is through motivation that the human resources can be utilized by making full use of it. This can be done by building willingness in employees to work. This will help the enterprise in securing best possible utilization of resources. Improves level of efficiency of employees The level of a subordinate or a employee does not only depend upon his qualifications and abilities. For getting best of his work performance, the gap between ability and willingness has to be filled which helps in improving the level of performance of subordinates. This will result into- a) Increase in productivity, b) Reducing cost of operations, and c) Improving overall efficiency. Leads to achievement of organizational goals The goals of an enterprise can be achieved only when the following factors take place :- a) There is best possible utilization of resources, b) There is a co-operative work environment, c) The employees are goal-directed and they act in a purposive manner, d) Goals can be achieved if co-ordination and co-operation takes place simultaneously which can be effectively done through motivation. Builds friendly relationship Motivation is an important factor which brings employees satisfaction. This can be done by keeping into mind and framing an incentive plan for the benefit of the employees. This could initiate the following things: a) Monetary and non-monetary incentives, b) Promotion opportunities for employees, c) Disincentives for inefficient employees. In order to build a cordial, friendly atmosphere in a concern, the above steps should be taken by a manager. This would help in: a) Effective co-operation which brings stability, b) Industrial dispute and unrest in employees will reduce, c) The employees will be adaptable to the changes and there will be no resistance to the change, d) This will help in providing a smooth and sound concern in which individual interests will coincide with the organizational interests, e) This will result in profit maximization through increased productivity. Leads to stability of work force Stability of workforce is very important from the point of view of reputation and goodwill of a concern. The employees can remain loyal to the enterprise only when they have a feeling of participation in the management. The skills and efficiency of employees will always be of advantage to employees as well as employees. This will lead to a good public image in the market which will attract competent and qualified people into a concern. As it is said, â€Å"Old is gold† which suffices with the role of motivation here, the older the people, more the experience and their adjustment into a concern which can be of benefit to the enterprise. From the above discussion, we can say that motivation is an internal feeling which can be understood only by manager since he is in close contact with the employees. Needs, wants and desires are inter-related and they are the driving force to act. These needs can be understood by the manager and he can frame motivation plans accordingly. We can say that motivation therefore is a continuous process since motivation process is based on needs which are unlimited. The process has to be continued throughout. We can summarize by saying that motivation is important both to an individual and a business. Motivation is important to an individual as: 1. Motivation will help him achieve his personal goals. 2. If an individual is motivated, he will have job satisfaction. 3. Motivation will help in self-development of individual. 4. An individual would always gain by working with a dynamic team. Similarly, motivation is important to a business as: 1. The more motivated the employees are, the more empowered the team is. 2. The more is the team work and individual employee contribution, more profitable and successful is the business. 3. During period of amendments, there will be more adaptability and creativity. 4. Motivation will lead to an optimistic and challenging attitude at work place. Types of Motivation Some of the important types of motivation are as follows: Achievement Motivation: It is the drive to pursue and attain goals. An individual with achievement motivation wishes to achieve objectives and advance up on the ladder of success. Here, accomplishment is important for its own sake and not for the rewards that accompany it. This motivation is more important for professionals. Affiliation Motivation: It is a drive to relate to people on a social basis. Persons with affiliation motivation perform work better when they are complimented for their favorable attitudes and co-operation. This motiv