Management, concept, Functions, theories

Management is the process of planning, organizing, leading, and controlling the efforts of organization members and of using all other organizational resources to achieve stated organizational goals.
A/c Peter f Drucker

" Management is a multi-purpose organ that manages the business and manages managers and manages workers and works"  this definition of management was given by Peter f Drucker in his book "The principle of management"

A/C Henry fayol

"To manage is to forecast and to plan, to organize, to command, to co-ordinate and to control." Henry fayol gave this definition of management in his book "industrial and general administration".

Features of management

• continuous and never-ending process
• Getting things done through people
• Result-oriented Science and arts
• Multi-disciplinary in nature
• A group and not an individual activity
• Follows established principles or rules
• Situational in nature
• Management is intangible
• Management is all-pervasive
• uses a professional approach in work
• Dynamic in nature

Objective of management

1.  Organizational objective
It refers to ascertain objective for the whole organization which is survival for long period, earn profit, and growth of the business.

2. Social objective: - it refers to assure health, safety and price control to the society. Main social objectives of management are as follow
3.  a. To have the environment from getting polluted
b. To contribute to improving living standard.
c. To make available good quality products at a reasonable price.
3.  Personal objective: - it refers to the ascertainment of the objectives in reference to the employees. While determining personal objectives, care must be taken that in no way there is a clash between organizational and personal objectives.
Main objectives of management towards employees are as follow:

• To give deserving remuneration
• To provide a good working environment
• To provide a share in the profit
• Importance of management

Level of management

1.  top-level: Board of director managing directors President and Vice President CEO come under top level. These senior managers are considered executives, responsible for the performance of an organization as a whole or for one of its significant parts.
2. Middle level. Middle managers develop and implement action plans consistent with company objectives, such as increasing market presence. plant managers, division managers, and branch sales managers in business comes under the middle level of management
3. Lower level. The initial management job that most people attain is typically a first-line management position, such as a team leader or supervisor.

Functions of management

Functions of management given by Henry fayol.
1.  Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling

Planning

planning is deciding in advance what is to be done, how and when it is to be done. It is concerned with projecting the future course of action for the business as a whole and the different sections within it.

Basically planning is concerned with the determination of the Objectives, policies, procedures, rules, program, budget and strategies.

Organizing

Division of work among people and the coordination of their efforts to achieve specific objectives are the fundamental aspects of organizing. Organizing is the process of establishing a harmonious relationship among the members of the enterprise.

Staffing

staffing involves the finding of the right person for the right job and placing him at the right place, doing the right job at the right time.

Directing

Directing involves communicating and providing leadership to the subordinates and motivating them to continue to the best of their capacity for the achievement for organizational objectives. It is concerned with influencing the behavior of human resource for the accomplishment of organizational objectives.

Controlling

Controlling is the process of checking whether the plans are being adhered to or not, keeping a record of progress, then taking corrective measures, if there is any deviation.

Organizational theory

Classical theory

• Scientific management theory
• Administrative theory
• Bureaucratic theory

NEO- Classical Theory

• Human Relation theory

Modern Theory

• Systems Approach 
• Contingency Approach 

Scientific management

• F.W. Taylor (1856-1915) - father of scientific management
• Scientific management (also called Taylorism or the Taylor system) is a theory of management that analyzes workflows to improve labor productivity.
• The core idea of the theory was developed by F.W. Taylor in the 1880s and 1890s and was first published in his monographs, shop management (1905) and the principle of scientific management (1911).

It emphasis on

• Increase the productivity of workers
• Improve worker efficiency
• Effective work standards

Principle of scientific management

1.  Scientific task planning:-

• Amount of work a worker can do
• Time and motion study
• Eliminate unnecessary and wasteful motions.
• Task to design scientifically

2.  Standardization:-

Work procedures, quality parameters, time schedules, working conditions, cost of productions, the efficiency of employees as well as workers.

3.  Scientific selection and training of workers

4. Functional foremanship:-

Production department: - four-person

• Speed boss: - maintaining the planned speed of production.
• Inspector: - matching that work done is according to the standards.
• Maintenance foreman: - maintenance of machines and equipment.
• Gang boss: - making arrangement of machines, material, and men for the job.

Planning Department: four persons

• Route clerk: - determining the process of the job
• Instruction card clerk: - laying down the instructions for the workers.
• Time and cost clerk: - setting the time table and cost budget for the job.
• Disciplinarian: - maintaining proper discipline in the factory

5.  Differential piece rate systemTo mosystemorkers

• Wage incentives
• Piece work distribution
• Gain between employees and employers

6.  Harmony and not discard

• Mutual cooperation

Other supporters of scientific management
Frank, Lillian gilbrath, GNATT, EMERSON
Frank and Lillian gilbraith advocated three positions plan apart from carrying on experiments on time, motion and fatigue studies.
Gnatt developed a Gnatt chart to be used in production control
Emerson suggested an improved method of wage payment as well as the concept of line staff relationship instead of functional foremanship.

Advantages of scientific management

1.  Enhanced production
2. Ability to control
3. Decrease inaccuracy
4. Cost of production is reduced
5. Quick decision making
6. Benefit to customer
7. Efficiency increased
8. Less production time
9. Work is carried out in a systematic manner
10. A proper atmosphere for working condition
11. Avoid labor and management disputes

Disadvantages of scientific management

1. Requires huge capital
2. Limited to bottom line workers
3. Applies to only production division of an organization
4. Does not work on management functioning
5. Not suitable for team

Administrative theory

Henry fayol 14 principle

1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interests into general interest
7. Fair remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure of personnel
13. Initiative
14. Esprit de corps

Other administrative theorists
Weber
Fayol
Gulick
Sheldon
Mooney
Reilay
Urwick

Gullick and urwick edited papers on the science of administration published by the institute of public administration at Columbia University in 1937.

Bureaucracy theory
It can be defined as the organizational structure with highly routine operating tasks performed under formalized rules and regulations with task assigned to various departments.
Max weber evolved bureaucratic theory in his work the theory of "social and economic organization"

Elements of bureaucracy theory

• Hierarchy
• Division of work
• Rule and regulation
• Departmentalization
• Narrow span of control
• Records
• Impersonal relationship
• Administrative class
• Rationality
• Expert training
• Promotion

Criticism of principles of classical theories

1. Lack of empirical research

2. Lack of universality:-  hierarchy structure, unity of command, the span of control, scalar functional principle

Bennis suggests that the focus of the classical theory is an organization without people
Katz and Kahn feel that this theory is inadequate in dealing with the complexities of organizational structure and functioning.

Neoclassical organization theory

• Focussed on activities of managers
• Also termed as human Relations theory or Hawthorne studies developed by Elton Mayo
• Human behavior is somewhat more than mere psychological variables.
• Principles
• Social factors affect people more than organizational factor.
• Existence of informal group
• The conflict between personal and organizational goals
• Man wants to fulfill different needs
• Irrational behavior
• Communication is necessary
• Friendly supervision should be there
• Leadership is important
• Goals of productivity and employee satisfaction

Impact

• Flat structure
• De- centralization
• Informal organization

Modern organization theory

It is developed the early 1950s
Features of classical and behavioral models
Organization as an open system
Differentiate it from early organizational theories

Features of modern organizational theory

1.  Open system view

• Internal as well as the external environment
• Element like input, transformation process, output, feedback
• External environment like customers, suppliers

2.  Adaptive system:

• Adjust itself to changing the environment
• Bringing out internal changes
• Check the impact and result by feedback

3.  Probabilistic model:

• Dynamic variables
• Not deterministic but probabilistic
• Forecasting
• The current situation does not remain same in future.

4. Dynamic

5. Multi-variable

6. Multidimensional and multi-level

7. An integrated approach

System approach

• Big-picture approach
• Composed of various subsystem
• One activity affect the activity of every part
• Department should work in coordination
• Follow unity of direction

Carzo and yanouzas identify 3 subsystem
1.  Technical subsystem: outputs, tools, equipment, employee skills, the job itself
2. Social subsystem: individuals, informal groups, social or group norms, status, role, norms, and values
3. Power subsystem: official authority, location, job importance, experience, and tenure.

Seiler has identified 4 components in organization systems
1. Human inputs
2. Technological inputs
3. Organizational inputs
4. Social structure and norms

Features of system approach

1. Several subsystems like

• Goals and value subsystem
• Psychological subsystem
• Technical subsystem
• Structural subsystem
• Managerial subsystem

2. Emergent behavior
3. Synergy between subsystem
4. Closed system or open system
5. The boundary that separates it from its environment
6. The flow of information, resources, and energy
7. Feedback is the central nerve
8. The system needs to be adaptive.

Linking process of various subsystem
SCOTT has identified three linking process communication, decision, and balance

LIKERT proposed two assumptions -
Linking pin for interlocking groups
Group to group relationship

Kahn suggested overlapping role set model

Implications of system theory

• Reforms in organizational design
• Coordination among superiors subordinates and peers
• Project organization, matrix organization and free from the organization
• Integrates linking process of both communication and control.

Managerial skills

Robert L Katz has classified skills into four category

1. Technical skills

• Ability to use specific tools, methods or techniques of a specialized field.
• Crucial for the effectiveness of a lower level of managers
• Direct contact with the employee

2. Human skill

• Interact, understand and motivate other people
• counsel, advice or get the work done
• Important for managers who interact with different people on the job.
• Also termed as interpersonal skill

3.  Conceptual skills

• Mental ability to coordinate and integrate the organization's interest and activities.
• Visualize impact of change
• Important for top-level management.

4. Design skill

• Introduce by koontz and weihrich
• Ability to solve problems in different ways
• Managers design a workable solution to a problem.