NATURE AND FUNCTIONS OF MANAGEMENT

Definition of Management:
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources and natural resources. Since organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. Traditionally management was defined as the art of getting things done through and with the people in formally organized groups (Koontz 1961). A modern definition would be like It is a process of utilization of human resources and physical resources to achieve the organizational objectives effectively and efficiently.

Features of Management:
1. 2. 3. 4. 5. Organized Activities. Existence of Objectives. Relationship among Resources. Working with and through People. Decision Making.

Roles of Manager:
A manager is also defined as one who handles, controls, or directs, especially: a. One who directs a business or other enterprise. b. One who controls resources and expenditures, as of a household. => A manager is a person who accomplishes organizational objectives by directing the efforts of others. Roles of a manager include:
1.

Interpersonal: roles that involve coordination and interaction with employees.

2. 3.

Informational: roles that involve handling, sharing, and analyzing information. Decisional: roles that require decision-making.

1. Interpersonal Roles of a Manager: Role Figurehead Description Symbolic head; required to perform a number of routine duties of a legal or social nature Responsible for the motivation and direction of subordinates Examples Ceremonies status, requests.

Leader

Virtually all managerial activities involving subordinates.

Liaison

Responsible for the motivation and direction of subordinates

Acknowledgment of mail external board work

2. Informational Roles of a Manager: Role Description Receives wide variety of information; serves as nerve center of internal and external information of the organization Transmits information received from outsiders or other subordinates to members of the organization Transmits information to outsiders on organizations plans, policies, actions, and results; serves as expert on organizations industry Examples Handing all mail and contacts categorized as concerned primarily with receiving information Forwarding mail into organization for information purposes; verbal contacts involving information flow to subordinates such as review sessions Board meeting; handling contacts involving transmission of information to outsiders

Monitor

Disseminator

Spokesperson

3. Decisional Roles of a Manager: Role Description Searches organization and its environment for opportunities and initiates projects to bring about change Examples Strategy and review sessions involving initiation or design of improvement projects

Entrepreneur

Disturbance Handler

Responsible for corrective action when organization faces important, unexpected disturbances

Strategy and review sessions involving disturbances and crises

Resource Allocator

Making or approving significant organizational decisions

Scheduling ; requests for authorization; budgeting, the programming of subordinates work

Negotiator

Responsible for representing the organization at major negotiations

Contract negotiation

Management Process:

Management operates through various functions, often classified as planning, organizing, staffing, leading/directing, controlling/monitoring and motivation.
1. 2. 3. 4. 5. 6.

Planning: Deciding what needs to happen in the future (today, next week, next month, next year, over the next five years, etc.) and generating plans for action. Organizing: (Implementation) pattern of relationships among workers, making optimum use of the resources required to enable the successful carrying out of plans. Staffing: Job analysis, recruitment and hiring for appropriate jobs. Leading/directing: Determining what needs to be done in a situation and getting people to do it. Controlling/monitoring: Checking progress against plans. Motivation: Motivation is also a kind of basic function of management, because without motivation, employees cannot work effectively. If motivation does not take place in an organization, then employees may not contribute to the other functions (which are usually set by top-level management).

Importance of Management:
1. Accomplishment of Goals a) Determining the goals b) Communicating the goals to employees c) Directing the activities towards the goal 2. Effective Utilization of Goals a) Optimum utilization of resources b) Eliminating all types of wastages c) Motivating the employees 3. Sound Organization a) Clarifying authority-responsibility relationship b) Hiring the persons with proper qualifications and training c) Providing proper work environment 4. Providing Vision and Foresight a) Keeping update on external world. b) Predicting activities that may affect the working of enterprise c) Adapting the organization with changing environment 5. Personal Objectives of Employees a) Coordinating employees of different backgrounds b) Motivating the employees to achieve personal goals c) Developing team spirit , cooperation and commitment 6. Development of Society and Nation a) Contributing in economic and social development of country b) Helping in increasing the national income and standard of living.

Management - a Science or Art:

Characteristics of Science: a) b) c) d) e) Systematized Body of Knowledge Defined Concepts , Principles and Rules Experimentation- Cause and Effect relationship Verifiable Principles Results should be same each time Universal Application

Characteristics of Art: a) Theoretical Knowledge of concepts, principle and rules b) Personalized application of knowledge and skills in a field e.g. music, painting. c) Learnt and refined through continuous practice d) Creative in nature

We can deduce that Management is both Science and Art as i) it involves Organized body of knowledge, ii) Requires personal skills to achieve the goals. iii) Manager must acquire the knowledge of management and learn to apply this knowledge Thus we can say management is oldest of arts and youngest of sciences.

Management A Profession:
Characteristics of a Profession: a) b) c) d) e) f) Specialized field of knowledge Restricted entry based on education and training Representative or professional association Ethical code of conduct Social Responsibilities Professional fee

Regarding Management: i) It is Supported by well defined body of knowledge ii) It involves Several Association of Managers e.g.. All India Management Association (AIMA) iii) Mangers are aware of their social responsibilities towards customers, suppliers, employees and government etc. iv) Entry to management is not restricted v) No ethical code of conduct for managers Thus Management cant be fully regarded as a profession.

For detailed study refer to Principles of Management by T. N. Chabra or Principles and Practice of Management by L. M. Prasad.