Concept of Management

Management is a set of activities directed towards the accomplishment of an organizational goal. It is concerned with utilizing resources effectively and efficiently to ensure such a goal is achieved within time. It is a process of planning, organizing, staffing, directing and controlling for a smooth operation of the organization. It is the art of getting things done in the way that best fits the organization’s objectives, strategies, resources and system.

Management is supported by different disciplines such as sociology, psychology, anthropology, social science etc. Hence, it can be regarded as a multi-disciplinary function. It is a group activity as it comprises a group of superiors, subordinates and co-workers.

Management is a function that put together factors such as men, material, money, methods and machine to achieve organizational objective. It can be regarded as a dynamic function as it has to deal with different hierarchies, designations, cultures, classes of people and situations.

In precise, management is a multi-disciplinary discipline performed by a group of people utilizing different organizational factors as per the need of time and situation.

Key Definitions

Defined By	Definition
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”
George R. Terry	“Management is activating and controlling perform to determine and accomplish the objectives by the use of human beings and other resources”
Peter Drucker	“Management is a work to make people productive”
Mary Parker Follet	“Management is the art of getting things through people”
Harold Koontz	“Management is an art of getting things done through and with the people in a formally organized group. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals”

From the above discussion and definitions:

• Management is concerned with people
• It is both science and art of getting results
• Management is a continuous and dynamic process
• It Is supported by multiple disciplines such as mathematics, sociology, psychology, anthropology, social science,etc.
• Management has to deal with internal as well as the external environment
• Management is concerned with resources such as money, material and machines
• Management has clearly defined mission, vision, objectives and goals
• It is a distinct approach and situation-dependent
• Management is concerned with strategies and policies to achieve goals
• Management is pervasive and found in all levels of the organization
• All forms of an organization need management
• Planning, organizing, staffing and controlling are key functions of management

Characteristics of Management

Management is the process of effectively and efficiently utilizing organizational resources for attainment of pre-determined objectives. It is conduction of different activities in smooth manner for productivity and profitability of the organization. Moreover, management has different characteristics. Some of the characteristics of management has been discussed below:

1. Goal Oriented – All the functions of management such as planning, organizing, staffing and controlling are concentrated on achieving pre-determined goals and objectives of the organization.
2. Dynamic Activity – Management is dynamic as the type of management today might not suit tomorrow and hence it has to adjust according to time and situation.
3. Group Activity – Management requires a team or group of people involved in the performance of different activities in an organization.
4. Distinct Process – Management is a distinct process of performing different functions to ensure the attainment of pre-determined goals or objectives.
5. Social Process – It is a social process as it has to deal with social forces such as customers, government, environment etc. other than the organization itself.
6. Universal Activity – Management is required in all types of organizations despite their difference in terms of objectives and operating systems.
7. Multi-Disciplinary Function – Management is a multi-disciplinary function as it takes the support of multiple disciplines such as sociology, anthropology, social science, history etc.
8. Science and Art – Management is a science as it uses some universal principles and it is an art as it demands skill and the ability for the effective performance of managerial functions.
9. Profession – Management is a profession as it comprises special skill, ability,  knowledge, com petence and expertise .

Functions of Management

Management has to perform different activities. These include activities concerned with setting objectives, taking initiatives to achieve these objectives and finally ensure these activities are achieved. During such a course of action, it has to perform different functions. The key functions of management have been explained below:

1.    Planning

Panning is the process of identifying and selecting the best course of action to achieve organizational objectives. It is an intellectual process of thinking before doing. In other words, planning is deciding in advance what is to be done, when it is to be done, why it is to be done, how it is to be done and who is to do it. It is the bride between where we are and where we want to be. Planning is the primary function of management focused on the future course of action to achieve pre-determined objectives by selecting the best alternative course of action. Hence, planning is the blueprint of the future course of action identified through intellectual and paperwork for the timely accomplishment of organizational goals.

2.    Organizing

The process of maintaining structural relationships among various positions within an enterprise is called organizing. It is the process of arranging organizational resources and establishing relations among them to attain pre-determined organizational objectives. These resources include material, manpower, money, methods and machines. Organizing includes division of work, assigning a job to employees, formulation of rules and regulations, development of work procedures and systems. Similarly, it also involves defining the authority and responsibility of all employees of the organization. Apart from this, organizing also defines hierarchy from top to bottom, formal relationships among all the members and chain of command. In short, organizing can be said as the process of identifying, dividing and assigning work to employees along with the creation of a network of their relationships and arranging organizational resources for achieving pre-determined objectives.

3.    Staffing

Staffing is related to all the activities concerned with human resources. It involves activities such as the acquisition, development, motivation and maintenance of employees. Initially, staffing is recruiting, selecting, appointing and placing the right person in the right job. It also consists of employee empowerment and efficiency building through training and development, proper rewards and compensations, fair performance appraisal, employee welfares, promotion, transfer etc. In short, staffing is all about hiring the right person for the right job, their capacity building and ensuring job satisfaction through incentives and other motivation programs to make them loyal and reduce employee turnover.

4.    Directing

Directing is concerned with the implementation part of the managerial function. It brings organization into action. It is the process of providing guidance, instructions and suggestions to subordinates to direct their course of action to achieve organizational objectives. Directing brings a plan into action after planning, organizing, the appointment of competent employees and the accumulation of physical resources. It is the way of making a better working environment in an organization. Directing is the skill of mobilizing human and other physical resources. Directing consists of different elements which combinedly ensure better directing for the accomplishment of organizational goals. These elements are discussed below:

1. Leadership:

Leadership is the skill and ability to influence the behavior of others for the achievement of common objectives. It is the relationship between leader and followers. A leader must influence and inspire followers to work willfully towards the accomplishment of objectives. For this, a leader must have a clear vision of the objective and ways to achieve such objectives. Hence, leadership is the ability of the leader to influence the behavior of subordinates through his guidance, advice and suggestions for the achievement of organizational goals.

• Motivation:

Motivation is a human physiological aspect. It is the art of encouraging and stimulating the performance of subordinates to work for the achievement of organizational objectives. Motivation can also be said as the way of creating willingness among subordinates to work in the best way with the best level of efficiency. Willingness to do work can be created if the needs of employees are fulfilled. Such needs of employees can be fulfilled through financial and non-financial incentives. Motivation generated through such incentives helps in the timely and efficient achievement of organizational goals.

• Coordination:

The process of integrating and combining the activities of all the departments and units is called coordination. This brings unity of action to the organization. It is about maintaining close and productive relations among all the members of the organization. It is the orderly arrangement of a group effort to develop a practice of teamwork to achieve organizational goals.

• Supervision:

Supervision is the immediate and direct guidance given by the immediate superior to his/her subordinates. It is the process of observing and directing the activities of subordinates to implement a planned course of action to achieve organizational goals. It is the way of solving problems faced by employees as well as making them more responsible. It is focused on optimum utilization of human and physical resources through proper guidance in time to the subordinates. Supervision ensures effective implementation of the plan through observation of daily activities for effective and timely completion of tasks.

• Communication:

It is the process of transferring information from one person to another person having common objectives or interests. It is a written or verbal way of transmitting information to understand meaningfully any matter. It influences the decision-making and behavior of individuals. Different facts, ideas, opinions, suggestions and orders are transferred to concerned parties through communication. In an organization, communication is used at all levels by superiors and subordinates. Superiors use communication to guide, instruct and direct their subordinates. Similarly, subordinates use it to inform about their problems, work progress and achievements to superiors.

5.    Controlling

Controlling is the process of comparing actual and standard performance. It also ensures that corrective actions are taken in case of deviation in performance. It is the way of maintaining pre-determined standards at the time of planning. Corrective actions are taken through controlling facilitates the future course of action as per the set standards. It bridges the gap between planning and implementation. It compares planned performance and actual performance to know the deviation. In case of deviation of actual performance from standard performance, the reasons for such difference are searched. The reasons could be a shortage of materials, inefficient manpower, insufficiency of money, inefficiency of machines etc. After finding such reasons, necessary corrective actions are taken to guide performance in track as per set standards to achieve organizational objectives. 

Different Management Levels and Skills Required

Management Level	Who are Included?	Skills Required
Top Level	Board of Directors, Chief Executive Officer	Conceptual Skills
Middle Level	Department or Division Heads	Human Skills
Lower Level	Supervisor, Foreman and Account – in – Charge	Technical Skills