1. Principles of Management - Management – Overview

1.Management – Overview

In today’s volatile economies, every organization needs strong managers to lead its people towards achieving the business objectives. A manager’s primary challenge is to solve problems creatively and plan effectively. Managers thus fulfill many roles and have different responsibilities within the various levels of an organization. Management began to materialize as a practice during the Industrial Revolution, as large corporations began to emerge in the late 19th century and developed and expanded into the early 20th century. Management is regarded as the most important of all human activities. It may be called the practice of consciously and continually shaping organizations. 

What is Management?

Management is a universal phenomenon. Every individual or entity requires setting objectives, making plans, handling people, coordinating and controlling activities, achieving goals and evaluating performance directed towards organizational goals. These activities relate to the utilization of variables or resources from the environment − human, monetary, physical, and informational.

Human resources refer to managerial talent, labor (managerial talent, labor, and services provided by them), monetary resources (the monetary investment the organization uses to finance its current and long-term operations), physical resources (raw materials,physical and production facilities and equipment) and information resources (data and other kinds of information). Management is essentially the bringing together these resources within an organization towards reaching objectives of an organization. 

Management Defined 

Management has been defined by various authors/authorities in various ways. Following are few often-quoted definitions: 

Management guru, Peter Drucker, says the basic task of management includes both marketing and innovation. According to him, “Management is a multipurpose organ that manages a business and manages managers, and manages workers and work.” 

Harold Koontz defined management as “the art of getting things done through and with people in formally organized groups.” All these definitions place an emphasis on the attainment of organizational goals/objectives through deployment of the management process (planning, organizing, directing, etc.) for the best use of organization’s resources. Management makes human effort more fruitful thus effecting enhancements and development.

Management is the process of planning, organizing, leading, and controlling an organization’s human, financial, physical, and information resources to achieve organizational goals in an efficient and effective manner.

The principles of management are the means by which a manager actually manages, that is, get things done through others—individually, in groups, or in organizations. Formally defined, the principles of management are the activities that “plan, organize, and control the operations of the basic elements of [people], materials, machines, methods, money and markets, providing direction and coordination, and giving leadership to human efforts, so as to achieve the sought objectives of the enterprise.”

Is Management an Art or a Science? 

Like any other discipline such as law, medicine or engineering, managing is an art – at least that is what most people assume. Management concepts need to be artistically approached and practiced for its success. It is understood that managing is doing things artistically in the light of the realities of a situation. If we take a closer look at it, Management, when practiced, is definitely an art but its underlying applications, methods and principles are a science. It is also opined that management is an art struggling to become a science. 

Management as an Art 

The personal ingenious and imaginative power of the manager lends management the approach of an art. This creative power of the manager enriches his performance skill. In fact, the art of managing involves the conception of a vision of an orderly whole, created from chaotic parts and the communication and achievement of this vision. Managing can be called "art of arts" because it organizes and uses human talent, which is the basis of every artistic activity. 

Management as a Science 

Management is a body of systematized knowledge accumulated and established with reference to the practice and understanding of general truth concerning management. It is true that the science underlying managing is not as accurate or comprehensive as physical sciences (such as chemistry or biology) which deal with non-human entities. The involvement of the human angle makes management not only complex but also controversial as pure science. Nevertheless, the study of the scientific elements in management methodologies can certainly improve the practice of management. 

Management as a Science and Art 

Science urges us to observe and experiment a phenomenon, while art teaches us the application of human skill and imagination to the same. In order to be successful, every manager needs do things effectively and efficiently. This requires a unique combination of both science and art. We can say that the art of managing begins where the science of managing stops. As the science of managing is imperfect, the manager must turn to artistic managerial ability to perform a job satisfactorily.

Management --- Science or an Art 
What is science?
The following characteristics are essential for a subject to be recognized as a science.
o The existence of a systematic body of knowledge with array of principles.
o Based on scientific enquiry.
o Principle should be verifiable.
o Reliable basis for predicting future events.
Management as a discipline fulfills the science criterion. The application of these principles helps any practicing manager to achieve the desired goals. Management is a dynamic subject in that it has heavily from economic, psychology, sociology, mathematics and engineering. Management is multi disciplinary in nature.
Science classified in to two types. There are exact science and inexact science. Exact science where the results are accurate. In the case of management it is an inexact science.
Management is inexact science because
 Every organizations human resources are different attitudes, aspirations and perceptions. So standard results may not be obtained.
 Ready-made and standard solutions cannot be obtained.
 Management is complex and unpredictable.
 Every organization decisions are influenced by the environment. The environment is so complexes and unexpected changes.
What is an art?         
Art means application of skill in finding a desired result. Art is the way of doing things skillfully. Management is an art because of the following facts.
 Management process involves the use of practical knowledge and personal skills.  Management is creative.  Application of  practical knowledge and certain skills helps to achieve concrete results.

Management is both – science and an art:                   
Management is a science because it contains general principles. It is also and art because it requires certain personal skills to achieve desired results.

Is Management a Profession? 
According to McFarland, following are the characteristics of  profession:
1. Existence of an organised and systematic knowledge.
2. Formalized methods of acquiring training and experience
3. Existence of an association with professionalization as its goal.
4. Existence of an ethical code to regulate the behaviour of the members of the profession.
5. Charging of fees based on service, but with due regard for the priority of service over the desire for monetary reward.  Management, does not posses all the above characteristics of a  profession. Unlike medicine or law, Management does not have any fixed norms of managerial behaviour. There is no uniform code of conduct or licensing of managers. Further the entry to managerial jobs is not restricted to individuals with a special academic degree only. In  the light of this analysis we can conclude that management cannot be called a profession.

MANAGEMENT    AND     ADMINISTRATION                   
The two terms  „Management‟ and  „ Administration‟ are  used  interchangeably.There is a lot of controversy on the use of these two terms.
1. Administration is above management:                 
Many management experts like Oliver Shelton, Milward, Lansberg, etc  are view that  administration is higher-level activity. Administration is concerned  with decision making  and policy formulation, while management is concerned with the execution of what  has been laid down by the administrators.
2. Administration  is a part of management:                   
According  to E.F.L.Breech “management is the generic term for total process  of executive control involving responsibility  for effective planning and guidance of the operations of an enterprise.Administration is the  part  of management  which  is concerned  with the installation and  carrying out  of the procedure by which the programme is  laid down  and communicated and the progress  of activities is resulted and checked  against plans. This breech concerns administration as part  of management.
3. Administration  and  management  are the same:           
The third view is a more practical one, where there is no distinction between the two terms „management‟ and „administration‟. Management is used for  higher level  functions like plans, organizing, directions and controlling in a business organization where as administration is used for the same set  of  functions in government organizations.

Role of Managers 

Managers are the primary force in an organization's growth and expansion. Larger organizations are particularly complex due to their size, process, people and nature of business. However, organizations need to be a cohesive whole encompassing every employee and their talent, directing them towards achieving the set business goals. This is an extremely challenging endeavor, and requires highly effective managers having evolved people management and communication skills. 

The Top Management 

The top level executives direct the organization to achieve its objectives and are instrumental in creating the vision and mission of the organization. They are the strategic think-tank of the organization. 

Senior Management 

The General Manager is responsible for all aspects of a company. He is accountable for managing the P&L (Profit & Loss) statement of the company. General managers usually report to the company board or top executives and take directions from them to direct the business. 

The Functional Manager

The Functional Manager is responsible for a single organizational unit or department within a company or organization. He in turn is assisted by a Supervisor or groups of managers within his unit/department. He is responsible for the department’s profitability and success. 

Line and Staff Managers 

Line Managers are directly responsible for managing a single employee or a group of employees. They are also directly accountable for the service or product line of the company. For example, a line manager at Toyota is responsible for the manufacturing, stocking, marketing, and profitability of the Corolla product line. Staff Managers often oversee other employees or subordinates in an organization and generally head revenue consuming or support departments to provide the line managers with information and advice. 

Project Managers

Every organization has multiple projects running simultaneously through its life cycle. A project manager is primarily accountable for leading a project from its inception to completion. He plans and organizes the resources required to complete the project. He will also define the project goals and objectives and decide how and at what intervals the project deliverables will be completed. 

The Changing Roles of Management and Managers

Every organization has three primary interpersonal roles that are concerned with interpersonal relationships. The manager in the figurehead role represents the organization in all matters of formality. The top-level manager represents the company legally and socially to the outside world that the organization interacts with. In the supervisory role, the manager represents his team to the higher management. He acts as a liaison between the higher management and his team. He also maintains contact with his peers outside the organization.

Mintzberg’s Set of Ten Roles 

Professor Henry Mintzberg, a great management researcher, after studying managers for several weeks concluded that, to meet the many demands of performing their functions, managers assume multiple roles. He propounded that the role is an organized set of behaviors. He identified the following ten roles common to the work of all managers. These roles have been split into three groups as illustrated in the following figure. 

Interpersonal Role 

 Figurehead – Has social, ceremonial and legal responsibilities. 

 Leader – Provides leadership and direction. 

 Liaison – Networks and communicates with internal and external contacts.

Informational Role 

 Monitor – Seeks out information related to your organization and industry, and monitors internal teams in terms of both their productivity and well-being.

 Disseminator – Communicates potentially useful information internally. 

 Spokesperson – Represents and speaks for the organization and transmits information about the organization and its goals to the people outside it.

Decisional Role 

 Entrepreneur – Creates and controls change within the organization - solving problems, generating new ideas, and implementing them. 

 Disturbance Handler – Resolves and manages unexpected roadblocks. 

 Resource Allocator – Allocates funds, assigning staff and other organizational resources. 

 Negotiator – Involved in direct important negotiations within the team, department, or organization.

Managerial Skills 

Henri Fayol, a famous management theorist also called as the Father of Modern Management, identified three basic managerial skills - technical skill, human skill and conceptual skill. 

Technical Skill  Knowledge and skills used to perform specific tasks. Accountants, engineers, surgeons all have their specialized technical skills necessary for their respective professions. Managers, especially at the lower and middle levels, need technical skills for effective task performance.  Technical skills are important especially for first line managers, who spend much of their time training subordinates and supervising their work-related problems. 

Human Skill  Ability to work with, understand, and motivate other people as individuals or in groups. According to Management theorist Mintzberg, the top (and middle) managers spend their time: 59 percent in meetings, 6 percent on the phone, and 3 percent on tours.  Ability to work with others and get co-operation from people in the work group. For example, knowing what to do and being able to communicate ideas and beliefs to others and understanding what thoughts others are trying to convey to the manager. 

Conceptual Skill  Ability to visualize the enterprise as a whole, to envision all the functions involved in a given situation or circumstance, to understand how its parts depend on one another, and anticipate how a change in any of its parts will affect the whole. 

Creativity, broad knowledge and ability to conceive abstract ideas. For example, the managing director of a telecom company visualizes the importance of better service for its clients which ultimately helps attract a vast number of clients and an unexpected increase in its subscriber base and profits. 

Other Managerial Skills 

Besides the skills discussed above, there are two other skills that a manager should possess, namely diagnostic skill and analytical skill. 

Diagnostic Skill: Diagnose a problem in the organization by studying its symptoms. For example, a particular division may be suffering from high turnover. With the help of diagnostic skill, the manager may find out that the division’s supervisor has poor human skill in dealing with employees. This problem might then be solved by transferring or training the supervisor. 

Analytical Skill: Ability to identify the vital or basic elements in a given situation, evaluate their interdependence, and decide which ones should receive the most attention. This skill enables the manager to determine possible strategies and to select the most appropriate one for the situation. For example, when adding a new product to the existing product line, a manager may analyze the advantages and risks in doing so and make a recommendation to the board of directors, who make the final decision. 

Diagnostic skill enables managers to understand a situation, whereas analytical skill helps determine what to do in a given situation.