Definition of Management
Management has been defined by various authors/authorities in various ways. So, the definitions of management are numerous. A few often-quoted definitions are:
“The process of planning, organizing, leading and controlling the work to reach stated organizational goals (James A. F. Stoner, et. al., 1997).”
“Management is the process of planning, organizing, leading and controlling the work to an organization’s human, financial, physical, and information resources to achieve organizational goals in an efficient and effective manner” (Griffin, 1984).
"Management is a distinct process consisting of activities of planning, actuating, and controlling, performed to determine and accomplish stated objectives with the use of human beings and other resources."
All these definitions put emphasis on the attainment of organizational goals for the best use of the organization’s resources. Many of us act to define management as “getting things done through other people in an efficient manner.” The most acceptable definition of management could be the act of “designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.”
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Nature and Scope of Management
Nature
Encyclopaedia of the social sciences states that there are three dimensions of the nature of management:
(i) Methods, through which some pre-determined objectives can be reached.
(ii) Combined effect of human effort.
(iii) Some total of all those managers and employees who are associated with these efforts.
Joseph A. Lister has identified the nature of management as the co-ordination of:
(i) Transformation, i.e., turning some factors and elements into products.
(ii) Social system, which satisfies employees’ needs through motivation, communication, and leadership.
(iii) Administrative system, through which activities of the employees are controlled.
In a nutshell, the nature of management can be stated as follows:
Management is a system comprising planning, organizing, staffing, leading, and controlling.
Elements of production of an organization such as labor, capital, land, equipment, etc., are used efficiently and effectively through management for achieving organizational goals.
Management applies to any organization.
Management identifies a special group of people whose job is to direct the effort and activities of the people towards common objectives.
It applies to managers engaged at all levels of the organization.
Management is gradually turning towards professionalization.
Management has to pay attention to fulfilling the objectives of the interested parties.
It has to render social responsibilities.
Management is both science and art.
The aim of all managers is to create a surplus.
Managing is concerned with productivity, thereby implying efficiency and effectiveness.
Scope
Harbison and Myers offered a classic threefold concept of management for emphasizing a broader scope for the viewpoint of management. They observed management as:
(i) An economic resource: As viewed by the economist, management is one of the factors of production together with land, labor, and capital.
(ii) A system of authority: As viewed by specialists in administration and organization, management is a system of authority.
(iii) A class and status system: As viewed by sociologists, management is a class-and-status system.
Purpose and Importance of Management
No enterprise can run without management. Some people may say that the main purpose of management is to make a profit. For most business firms, an important purpose of management is the creation of a surplus. Management is to establish an environment in which people can accomplish organizational goals with the least amount of time, money, materials, and personal dissatisfaction or in which they can achieve as much as possible of a desired goal with available resources.
(i) Management can greatly affect not only an organization but also the socioeconomic and political goals of a country.
(ii) Management makes human effort more productive.
(iii) Nature has given us enormous resources. Most of these resources require managerial attention so that they can be used for the benefit of society.
(iv) Moreover, it is often heard that there are huge natural resources in countries like Bangladesh but it is due to the absence of proper management that they are being wasted.
Features/Characteristics of Management
For a clear understanding of management, its features/characteristics may be discussed as below:
(1) Management is usually associated with group efforts: It is usual to associate management with a group. Although people as individuals manage many personal affairs, the group emphasis of management is universal. Each and every enterprise entails the existence of a group to achieve goals. It is now established that goals are achieved more readily by a group than by any one person alone.
(2) Management is accomplished through the efforts of others: Management is sometimes defined as “getting things done through others’ efforts.” Besides the manager of a firm, there may be accountants, engineers, system analysts, salesmen, and a host of other employees working, but it is the manager’s job to integrate all their activities. Thus it can well be said that participation in management necessitates relinquishing the normal tendency to perform all things oneself and getting tasks accomplished through group efforts.
(3) Management is purposeful: Wherever there is management, there is a purpose. Management, in fact, deals with the achievement of something definite, expressed as a goal or objective. Management success is commonly measured by the extent to which objectives are achieved. Management exists because it is an effective means of getting the necessary work accomplished.
(4) Management is action-oriented: Managers focus their attention and efforts on bringing about successful action. Successful managers have an urge for accomplishment. They know when and where to start, what to do for keeping things moving, and how to follow through.
(5) Management is intangible: Management is often called the unseen force, its presence being evidenced by the results of its efforts - motivation among employees, discipline in the group, high productivity, adequate surplus, etc. Conversely, the identity of management may also be felt by its absence or by the presence of its direct opposite – mismanagement. The consequence of mismanagement is anybody’s guess.
(6) Management is indispensable: Management can neither be replaced nor substituted by anything else. Even the computer, which is the wonderful invention of the twentieth century, can only aid but not replace management.
(7) Management can ensure a better life: A manager can do much to improve the work environment, stimulate people to perform better, achieve progress, bring hope, and accomplish better things in life.
Organisation, Administration, and Management
The terms organisation, administration, and management are often used interchangeably. Sometimes, they are considered synonymous. However, for the student of management, it is essential to draw a distinction between these terms and understand their specific meanings.
Organisation
Organisation refers to the "collection, preservation, and co-ordination of the elements of an enterprise in an integrated manner." It involves bringing together various resources of an enterprise into a harmonious whole. This is primarily the role of an entrepreneur, as no enterprise can exist without proper organisation. Scholars highlight that proper organisation is a pre-condition for the success of any venture. It ensures the employment of resources to achieve enterprise goals. The task of organisation is typically performed by the promoters or entrepreneurs themselves.
Administration
Administration acts as the driving force of an enterprise. It sets objectives and formulates plans to achieve them. Additionally, administration determines principles to ensure the effective performance of various divisions and branches of the enterprise. In essence, administration is responsible for planning and providing leadership to achieve organisational goals. It is often equated with top-level management. For example, the board of directors of a company or the syndicate of a university can be considered the administrative body, performing planning and leadership functions.
Management
Management is responsible for executing the plans and policies set by the administration to achieve pre-determined goals. The success of an enterprise depends significantly on how efficiently management executes these plans and policies. Management requires the co-operation of employees, ensuring they work towards the goals established by the administration. Thus, administration and management are interdependent, and the effectiveness of one relies on the other.
Managing: Art or Science?
Managing, like many other practices (e.g., engineering, law, medicine), is both an art and a science. While artistic application is evident in managerial practices, scientific knowledge, methods, and theories also play a crucial role.
Managing as an Art
Managing involves the personal creativity and skill of a manager. It requires envisioning order from chaos and effectively communicating and achieving this vision. Managers use human talent to organise resources and drive performance, making managing the "art of arts."
Managing as a Science
Management as a science is a body of systematised knowledge, involving concepts, principles, and theories. It uses observation and analysis to develop principles that predict outcomes in similar situations. However, management is not an exact science due to the unpredictability of human behaviour. Despite this, the scientific elements in management significantly enhance its practice.
Managing as Both Science and Art
Science teaches us to know, while art teaches us to do. Successful managers blend scientific knowledge with artistic application, relying on creativity where scientific methods may fall short. This combination is essential for effective management.
Elements of Science in Managing
Management science is built on organised knowledge and employs a scientific approach:
Concepts: Generalisations derived from observations.
Principles: Fundamental truths predicting relationships between variables (e.g., the principle of unity of command).
Theories: Systematic groupings of interdependent concepts and principles that provide a framework for understanding management (e.g., theories of motivation and leadership).
Though management principles and theories may evolve with socio-political and economic changes, they remain valuable tools for managers.
Types of Managerial Skills
Henri Fayol, the father of modern management, identified three essential managerial skills:
Technical Skill: The ability to use specialised knowledge and techniques for specific tasks. It is crucial for lower and middle-level managers.
Human Skill: The ability to work with, understand, and motivate individuals and groups.
Conceptual Skill: The ability to visualise the organisation as a whole and understand how changes in one part affect the entire system.
Additional skills, such as diagnostic and analytical skills, are also important for managerial success.
Functions of Management
Management involves a systematic process comprising the following functions:
Planning: Deciding in advance what needs to be done. It involves setting objectives and determining the best course of action to achieve them.
Organising: Arranging resources and allocating work to achieve organisational goals.
Staffing: Filling positions in the organisational structure, including recruitment, training, promotion, and dismissal.
Leading: Directing, influencing, and motivating employees to perform essential tasks.
Motivating: Encouraging employees to achieve organisational goals by satisfying their individual needs and aspirations.
Co-ordinating: Ensuring harmony among individual efforts to achieve group targets.
Controlling: Monitoring performance to ensure conformity to plans and correcting deviations as necessary.
Principles of Management
Taylor’s Principles
Frederick Taylor’s concept of "mental revolution" introduced the following principles:
Replacing rules of thumb with science.
Achieving harmony in group actions.
Encouraging co-operation over individualism.
Striving for maximum output.
Developing workers to their fullest potential.
Fayol’s Principles
Henri Fayol outlined 14 universal principles of management:
Division of Labour: Enhances efficiency through specialisation.
Authority: Grants the right to give orders, with corresponding responsibility.
Discipline: Enforces respect for rules and agreements.
Unity of Command: Ensures employees receive orders from one supervisor.
Unity of Direction: Aligns efforts towards a common goal.
Subordination of Individual Interest: Prioritises organisational goals over personal interests.
Remuneration: Provides fair and satisfactory wages.
Centralisation: Balances decision-making authority based on situational needs.
Scalar Chain: Establishes clear lines of authority.
Order: Ensures resources and personnel are properly arranged.
Equity: Treats employees fairly to elicit loyalty.
Stability of Tenure: Minimises unnecessary turnover.
Initiative: Encourages employees to generate and implement ideas.
Esprit de Corps: Fosters teamwork and a sense of unity.
