Management Concepts)
Management Concepts)
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”.
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”.
LEVELS OF MANAGEMENT
a. Top management lays down the objectives and broad policies of the
enterprise.
b. It issues necessary instructions for preparation of department budgets,
procedures, schedules etc.
c. It prepares strategic plans & policies for the enterprise.
d. It appoints the executive for middle level i.e. departmental managers.
e. It controls & coordinates the activities of all the departments.
f. It is also responsible for maintaining a contact with the outside world.
g. It provides guidance and direction.
h. The top management is also responsible towards the shareholders for the
performance of the enterprise.
The branch managers and departmental managers constitute middle level. They
are responsible to the top management for the functioning of their department.
They devote more time to organizational and directional functions. In small
organization, there is only one layer of middle level of management but in big
enterprises, there may be senior and junior middle level management. Their role
can be emphasized as -
i. They execute the plans of the organization in accordance with the policies
and directives of the top management.
j. They make plans for the sub-units of the organization.
k. They participate in employment & training of lower level management.
l. They interpret and explain policies from top level management to lower
level.
m. They are responsible for coordinating the activities within the division or
department.
n. It also sends important reports and other important data to top level
management.
o. They evaluate performance of junior managers.
p. They are also responsible for inspiring lower level managers towards
better performance.
OBJECTIVES OF MANAGEMENT
IMPORTANCE OF MANAGEMENT
FUNCTIONS OF MANAGEMENT
Planning
It is the basic function of management. It deals with chalking out a future course
of action & deciding in advance the most appropriate course of actions for
achievement of pre-determined goals. According to KOONTZ, “Planning is
deciding in advance - what to do, when to do & how to do. It bridges the gap from
where we are & where we want to be”. A plan is a future course of actions. It is
an exercise in problem solving & decision making. Planning is determination of
courses of action to achieve desired goals. Thus, planning is a systematic thinking
about ways & means for accomplishment of pre-determined goals. Planning is
necessary to ensure proper utilization of human & non-human resources. It is all
pervasive, it is an intellectual activity and it also helps in avoiding confusion,
uncertainties, risks, wastages etc.
Organizing
It is the process of bringing together physical, financial and human resources and
developing productive relationship amongst them for achievement of
organizational goals. According to Henry Fayol, “To organize a business is to
provide it with everything useful or its functioning i.e. raw material, tools, capital
and personnel’s”. To organize a business involves determining & providing
human and non-human resources to the organizational structure. Organizing as a
process involves:
• Identification of activities.
• Classification of grouping of activities.
• Assignment of duties.
• Delegation of authority and creation of responsibility.
• Coordinating authority and responsibility relationships.
Staffing
Directing
• Supervision
• Motivation
• Leadership
• Communication
Controlling
Management Skills
There are three basic management skills: technical, human and conceptual. A technical
skill is the ability to use tools, techniques, and specialized knowledge to carry out a
method, process, or procedure. Human skills are used to build positive interpersonal
relationships, solve human relations problems, build acceptance of one's co-workers, and
relate to them in a way that their behavior is consistent with the needs of the organization.
Conceptual skills involve the ability to see the organization as a whole and to solve
problems in a way that benefits the entire organization. Analytical, creative and intuitive
talents make up the manager's conceptual skills.