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CONCEPT OF MANAGEMENT

By:- Dharmender Sharma

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MANAGEMENT CONCEPT

The development of the concept and principles ofmanagement is relatively a modern phenomenon.However, this does not mean that management issomething very recent. In fact, since the pre- historic

times humans have managed groups, communities andorganisations. For example even in the hunting andgathering stage people did follow a leader or a group ofdecision makers responsible for their welfare. Theevolution from simple to complex societies alsowitnessed the emergence of specialised organisationsand departments of the governing authority. Whetherit was a city state, a kingdom or a republic, the needand role of managers increased. There is ample

historical evidence in this regard-We find the

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attributes of a worthy king or a minister; the merchant guilds ,and trading activities; the

management of workshops and artisans etc.

It was in the very recent past, say from the industrial revolution, that the need for a systematic

approach to management started gaining importance. Application of new technology,

increasing work force, mass production and distribution, etc. needed effective coordination.

Yet, management was not recognised as a "technology". Between 1890's and 1930's FredericW. Taylor and certain others formulated a management approach which is described as the

Scientific Management Theory. The four basic principles of Taylor's theory were:

i) the development of true science of management, so that the best method for performing

each task could be determined,

ii) the scientific selection of workers so that each worker would be given responsibility for

the task for which he or she was best suited, Iiii) the scientific education .and development of the worker, and

iv) intimate, friendly cooperation between management and labour. Taylor advocated that a

complete mental revolution on the part of management and workers

was required for the success of these principles. In fact Scientific Management was concerned

with increasing productivity of both, the shop as well as the individual worker. Soon there

grew another theory i.e. the Classical Organisations Theory.Henri Fayol (1841-1925), the founder of Classical Management School was of the view that

'both scientific forecasting and proper method of management, satisfactory results are

inevitable". He emphasised that management was not a personal talent but a skill like any

other . The general belief had been that "managers were born, not made: - that practice and

experience would be helpful only to those who already had the innate qualities of a manager.

However, Fayol was of the opinion that management could be taught once its underlyingprinciples were understood and a general theory of management was formulated.

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In order to develop a science of management Fayol divided buhess operations into six

activities:

1) Technical

2) Commercial

3) Financial

4) Security5) Accounting

6) Management

Further, he defined management in terms of functions like:

Planning,

Organising,

Coordinating, and

8 Controlling.

Another description of management, given by Mary Parker Follet, described it as "the art of

getting things done through people". Meaning thereby that a manager would attempt to

achieve the goals of an organisation by arranging for others to perform the required tasks and

not by performing these tasks himself or herself. However,it is not possible to give any one

simple definition of management. All existing definitions keep changing because of the

changes in the environment of organisations. Without going into the complexities of the

problem let us take a definition which has been more acceptable, i.e.: "Management is the

process of planning, organising, leading and controlling the efforts of organisation members

and of using all other organisational resources to achieve stated organisational goals".

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Management as a Noun

In general and popular usage, management refers

to a distinct group of people who direct the

activities of other people and material resources

toward the attainment of predetermined goals.Giving a broader meaning to it, one can look at

management as a resource, a system of authority,

and a class or elite.

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1. Management as an economic resource : The economist's

view of management is that it is a factor of production just

like entrepreneurship, capital and labour. The managerial

resource, to a large extent, determines orgaoisationaleffectiveness and efficiency. Hence in a dynamic environment

managerial development is more important and its use must

be more intensive.

2 Management as a system of authority : Management is asystem of authority in the sense that it consists of a team of

managers who are responsible for making decisions and

supervising the work of others. Managers at different levels

possess varying degrees of authority. Higher level managers ln

a large managers at middle levels. Middle and lower level

managers supervise and control their subordinate managers

and workers.

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Management as a Process

Interpreted as a process, management consists of a

series of inter-related managerial activities

classified into various functions like planning,

organising, staffing, leading and controlling.Managers undertake these functions with a

systematic approach, so as to integrate physical and

human resources into an effective operating unit.Management is, thus, regarded as the process by

which a co-operative group directs action towards

common goals.

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Management as a Discipline

Management is a separate discipline having a

systematised body of knowledge which managers

use in performing 'their jobs. As a separate field of

study, management includes the principles andpractice of general management as well as of the

various functions of management. It has developed

its own techniques and 'approaches. Thetheoretical foundations of management have

evolved on the basis of experience, observation

and scientific investigations.

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MANAGEMENT AND ADMINISTRATION

Management and Administration as Two Distinct

Terms

Distinction based on nature of

enterprises

Distinction based on

managerial levels

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Distinction based on nature of enterprises

According to one view, it is more appropriate that

the term management be used with respect to

enterprises having an economic orientation. In

other words, the term management should relateto economic enterprises (business enterprises)

whose primary goal is generation of surplus. The

term administration is preferred with respect togovernment enterprises pursuing social and

political activities and whose primary objective is

other than surplus generation.

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Distinction based on managerial levels :

Management and administration are used as twoseparate terms in the context of the single

enterprise keeping in view managerial functions

and hierarchy. Subscribing to this view, there aretwo schools of thought;

(i) American School of Thought and

(ii) British School of Thought.

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American School of Thought : According to this school.of thought,

administration is a broader concept than management. It sets objectives

which management strives to realise, and lays down policies under

which management operates. Management, on the other hand, is the

force that leads, directs and guides the organisation in theaccomplishment of predetermined objectives. Thus, according to this

school, administration is a thinking function or a top level function

involved in planning, setting objectives and policies. Whereas

management is a doing function or lower level function engaged inexecution of the plans.

ii) British School of Thought : According to this school of thought,

management is a wider concept than administration. Management is

the rule making and rule enforcing ,body. It performs top level functions

of the organisation. Whereas administration handles the current

problems which arises in carrying out the policies laid down by the

management. This school emphasizes that management

is an all-encompassing and comprehensive term and administration is

part of it.

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Reconciling the two Schools of Thought

In an attempt to solve the terminological problem,

management is categorised as administrative

management and operative management.

Administrative management is top management in

charge of planning function. Operative

management is middle and lower level

managements responsible for execution of theplans. Look nt Figure 1.1 which shows both

administrative and operative functions of the

management:

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NATURE OF MANAGEMENT

Management is universal ;-Management is

required in every from of group activity whether it

is a family, a club, a govt., an army or a business

enterprise.

Management is purposeful

The process is management is made up of some

interrelated elements- planning, organization,

leading and controlling.

i i l

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Management is a social process

The process of managements largely social one,because it involves the inter-relationships of people

at work. Group endeavor

Management is always associated with the efforts

of group. It works in cooperative groups, organizedendeavor.

Management is multi-disciplinary

Management has to deal with human behaviorunder dynamic condition. There for it dependsupon the wide knowledge derived from severaldisciplines like sociology, psychology, economics,

mathematics etc.

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Management is a continuous process

Management is a dynamic and on-going process.

The cycle of management continuous to operate so

long as there is organized action for the

achievement of group goals.

Management is intangible

Management is an unseen or invisible force. Itcannot be seen but its presence can be felt

everywhere in the from of result.

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Management is situational

Efficient management is always situational or contingency

management because there is no one best way to doing things.

Management is essentially an executive function

It deals with the achieve direction and control of the activity of

people to attain predetermine goals.

10. Management is an art

Management contains a systematic body of theoretical knowledge forachievement of common goals.

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Management is an science

Management provide some practical application of such

knowledge for achievement of certain goals

It is leadership

Management is leadership responsibility-not just an

activity. It provides active direction to human being toattain business objective. It is a leadership of ideas and

action.

It is dynamic

Management is not static activity. It adopts itself to the

new change in society.

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Management is practice

To manage effectively, individuals must have not

only the necessary abilities to lead but also a set of

critical skills acquire through time.

It is a system of authority

Modern management is a synthesis of official

authority, command, personal power arising from

moral worth and personality.

Oth

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Others

Management operates with in the context of theenvironment.

Management is an integrative force.

Management is creative.

Management is intangible.

Management is pervasive.

Management is people.

Management is profession.

Specific organ of the enterprises.

Separate identity. It involves Decision- making

It concerned with performance

It exerts real impact upon human life.

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