The Primary Role of Any Management - Coursework Example

?Management Management is an essential activity, which is an intricate part of every organization. It almost pervades with every aspect of the organization. Management might be described as the specific group of formally formed individuals who tend to carry out the process of organizing, planning, directing and controlling the activities of the organization. According to Henry Fayol, To manage is to forecast and to plan, to organize, to command, to co-ordinate, to control, to foresee and provide means to examine the future and drawing up the plan of action. (Bagad 2009). The primary role of any management is to motivate the individuals or employees of the organization through coordination and cooperation, so the allocated work is done. The definition of management is viewed in varied perspectives. Initially, it was viewed as an art of getting the work done. But this view has evolved in course of time as management is seen as something more than just getting things done. It was strongly believed that a good management should pave the way for the growth and development of the organization rather than merely focusing on job done by the employers. Harold Koontz sees "management as the art of getting things done through and with people in formally organized groups." (Akrani 2011). It is an art of creating an environment where employees perform their allocated tasks optimally as separate individuals yet cooperate among themselves with a view of attaining the organizational objectives. Later, management was seen as a process by which managers create, direct, maintain and operate purposive organizational goals through systematic coordination and cooperation. It is the distinct process by which managers plan and carry out all the activities of the organization in order to accomplish the goals by the efficient use of the manpower and other resources in hand. When we refer to the management, we not only refer the group of managers who organize and plan, but also the continuous set of processes that aids the managers to develop different strategies for the organization. Although, Steve Jobs was not alive when iPhone 5 was released this year, the pre-set processes developed by him and his management only facilitated its launch. Better handling of the process with cooperation will ensure better management. At the same time, strategy formulation is not the end of the task of the management, they have to aptly implement or operationalize it. This indeed improves the organizational as well as the managerial abilities of the concern. “The failure to balance the tensions between strategy and operations is pervasive: Various studies done in the past 25 years indicate that 60% to 80% of companies fall short of the success predicted from their new strategies.” (Kaplan and Norton 2008). A complete analysis of the strategies as well as its implementation process by the management will bring out better operational goals by the organization. Overall, management brings together all the resources of any business concern such as the manpower, money, machines, methods and market as a whole, and uses it optimally for success. Thus optimum utilization of the resources by the management will ensure better results in achieving the organizational objectives. In short, the term management is concerned with the goal determination, policy formulation, strategic planning and overall control of the organizational activities. Characteristics of Management “Management is the art of getting things done through and with people in formally organized groups, the art of creating an environment in such an organized group where people can perform as individuals and yet cooperate toward attainment of group goals” (Koontz 1961). Thus, management consist of a group of individuals or an individual who keenly analyze all the resources, formulate ideas, utilize the existing abilities and take the strategic decision that would serve for the betterment of the organization. Thus managerial ability is not a technical skill to be attained but involves a systematic process of efficient decision making. Management is a distinct activity and consists of certain salient characteristics that are briefly discussed below. Goal-Oriented: The primary purpose of any management is to achieve the organizational goals. Thus the concept of Management by Objectives(MBO) was developed by Peter Drucker in which he states that “manage by objectives, calculate risks, make strategic decisions, build an integrated team, communicate information fast and clearly see business as a whole” (Drucker 1955) Integrative force: Management is encompassed with the basic five functions namely, Planning, Organizing, Staffing, Directing and Controlling. The collection of all these functions lets a management to perform with efficiency. Continuous process: With the set of ongoing processes, a management is a never ending phenomenon in an organization. Once a goal is attained, the work of a management does not end there; it extends with a new goal or continues to work in maintaining the current objective for a longer term. Intangible: The ‘force’ of management is unseen but the presence of it could be felt with the outcome of the results. This is a social skill that could be evidenced by the quality and importantly the fate of the organization. Social Obligation: Management aims at the optimum utilization of resources for the benefit of not only the organization, its employes but the community as a whole. Coordination: Since management is a group activity, it requires good coordination of actions from all the individuals, irrespective of their educational background, experience, skills, etc. Thus it is the science and art of making things happen with effectiveness. “Management is a science because it has developed certain principle which is of universal application. But the result of management depend upon the personnel skills of managers and in this sense management is an art.” (Kumar 2009) Dynamic: Management is a dynamic function that adapts to the changes that happens because of social, economic, political, technological and human factors. Success of a management widely depends on how well it makes suitable forecasts and changes in policies pertaining to the changing environment. Thus, an efficient management comprises of all these characteristics to serve well for the organization. Among these characteristics, the characteristics of Integrative force, Continuous Process and Intangible Force assume a lot more importance. Integrative force is crucial because the essence of management is to integrate the human and other resources to accomplish the desired objectives. Managers for their part integrate and apply their knowledge, experience and managerial principles to obtain the results. Although, management is the system of authority and hierarchy of control comprising of different levels of management, it is important that all these levels coordinate. This integration and the resultant interaction make the employees more productive and contribute optimally for achieving the organizational goals. The next characteristic of Continuous process is also key because management activities have to continue without break irrespective of the social, economic and political concerns. Absence of management or even drop in their performance will definitely show up in the outcome of the company. For instance, absence of management at Ford was the reason that caused the fall of the company in early 20th century, with the revival happening around 1944. It was clear that the key to Ford’s revival has been the building and organization of management – just as the stifling and destruction of management was the key for its earlier decline. (Drucker 1955). Levels and Functions of management Management, being the hierarchy of authority, has to perform in different levels. Large organizations break down their management into different levels with different designations holding different purposes and authorities. A typical management falls into Three main category levels. (Govindarajan and Natarajan 2005). The figure shows a structure of management level in an organization. Fig: (Govindarajan and Natarajan 2005). Top level management: It includes the Founder, Chairman, CEO, Board of Directors, Managing Directors, General Managers, etc. The significant job of the top level management is to set the basic objectives, and guide the organization towards achievement of those objectives. They monitor performances, shoulder financial responsibilities, redesign the organizational structure and much more. Middle Level management: This includes the functional executives for various departments including Sales, R&D, Finance, Accounts, HR and Production. In addition, managers who supervise each department or section like superintendents, branch managers, general foremen, etc., also come under this category. Their primary functions are recruitment of employees, training them, designing operational policies, assigning duties to their subordinates, etc. In addition, they have to actualize coordination with the lower level and the top level, and thereby build an efficient team spirit within the company. Lower level management: This level is the basic level comprising of employees, sales personnel, foremen, inspectors, production supervisors, etc. Their basic function is to accomplish the allocated task by arranging the materials, by coordinating with the other workers, etc. Functions of Management: There are five basic functions of management. They are Planning, Organizing, Staffing, Directing and Controlling. Planning is the process requiring the use of intellectual ideas, foresights and sound judgment. Planning actually bridges the gap between where we are and where we want to go. It is the prerequisite activity that serves as the basic platform for all the other functions of management. An efficient planning requires few steps: determination of goals, forecasting, search of alternatives, evaluation and formulation of plan, formulation of policies and finally preparation of schedules, programmes and budgets. Organizing involves the grouping of manpower and the material resources in order to achieve the pre determined objectives. “Through the process of getting organized, management will determine the internal organizational structure; establish and maintain relationships, as well as allocate necessary resources.” (Rane 2007) Organizing involves basic steps such as identification of activities, grouping of jobs, assigning jobs to appropriate employees, delegation and establishment of authority. Staffing is the process of recruiting, selecting and training the employees. In addition, it involves appraisal of the personnel, and giving apt salaries and other rewards. Though staffing is viewed as a controversial function to the management, every manager indeed performs these functions in his activities. Directing is taking the plan into action by giving orders and instructions to the subordinates. It involves guiding, motivating, communicating and supervising the employees. The sub functions include good communication. “Effective communication is vital in maintaining a productive working environment, building positive interpersonal relationships, and problem solving.” (Rane 2007). An effective flow of communication within all levels of organization ensures better results. This serves as the criterion for the Walmart’s success. It is normally said that the Walton family always delegates maximum responsibilities to their lower level management employees, communicates with them and oversee them to know how they are faring. (O’Toole) Controlling is the measurement and the correction of the employees’ performance according to the pre-determined or expected standards. It leads to corrective action if the results are not satisfactory. Thus, controlling process involves establishment of standards, measurement and appraisal of performance and taking corrective action. Principles of Scientific Management and Fayol’s principles F. W. Taylor described the term scientific management in 1911. His solution was to separate planning from execution. Taylor’s Scientific Management consists of four major principles. 1. A science is developed for each work which replaces the traditional old rule. 2. Every planning is done with scientific selection and training of workman. 3. Good cooperation with the coworkers ensures that the work is being done with the developed scientific method. 4. There must be an equal and apt alliance of work and responsibility between the management and the workers. Scientific Management was firstly applied in the manufacturing sector, with American car manufacturer General Motors being one of the first to apply it in 1930s. As part of that application, they started viewing business administration departments including accounting, human resources, etc., as part of production line, and gave them deadline, specializations, etc., to elicit effective output. “Although the Taylor system originated in the factory production departments, the concept of separating planning from execution was universal in nature and, hence, had potential application to other areas: production support services offices operations service industries.” (Juran 1992) Fayol’s principles: Henri Fayol listed out 14 principles of management from his experience for the soundness and good working of the management. From his experience, he also indicated that managers needed to know how to communicate with the outside world, knowing about agreements, legal requirements, and other external factors affecting the firm.” (Wren, Bedeian and Breeze 2002) 1. Division of work implies dividing of work among the different employees ensuring that the right person gets the right job to do. Work specialization is essential for the success of any organization. With the division of labor, there was an increase in production, efficiency of the workers as well as the quality. It also had certain disadvantages like monotonous workplace. 2. Authority and responsibility must go together hand in hand. 3. For efficient functioning of an organization, discipline is essential one to consider. Respect for superiors as well as subordinates, and also other way around promotes discipline. 4. Unity of command has to be practiced that each employee receives instruction from a single supervisor to avoid confusion and faulty instructions. 5. Unity of direction implies there has to be one plan and one structure to accomplish objectives. 6. Subordination of the individuals to organizational interest is necessary to maintain unity among the employees 7. Remuneration for the employees has to be fair and up to their satisfaction 8. There must be a centralization of authority to ensure overall performance of the enterprise 9. There should be an unbroken scalar chain of superiors for better performance 10. Everything and everyone has to be in order i.e. one should have the right materials in the right place. 11. Managers have to treat the subordinates with kindness and justice, and there must be equity of treatment among all the employees. 12. Stability of employees will ensure reduced attrition rate. 13. Managers have to encourage initiatives, ideas, feedbacks, etc., from the subordinates 14. Esprit de corps is referred as the team spirit that has to prevail among the employees. “The principles of management emphasizes the need for teamwork i.e. harmony and proper understanding among the employees” (Anbuvelan 2007). References: Akrani, G., 2011. What is Management? [Online] Available from http://kalyan-city.blogspot.in/2011/04/what-is-management-definitions-meaning.html (Accessed on October 21, 2012) Anbuvelan, K., 2007. Principles of Management. Laxmi publications. Bagad, VS., 2009. Principles of Management. Technical Publications. Drucker, P., 1955. The Practice of Management. Elsevier ltd. Govindarajan, M and Natarajan, S., 2005. Principles of Management. PHI Learning Pvt. Ltd. Juran, JM., 1992. Departmental quality planning. National Productivity Review, Vol. 11, No.3, pp.287–300 Kaplan, RS and Norton, DP., 2008. Mastering the Management System. Harvard Business Review, Vol. 86. No. 1, pp. 62-77 Kumar, K., 2009. Nature and Characteristics of Management. [Online] Available from http://www.indiastudychannel.com/resources/92717-Nature-characteristics- management.aspx(Accessed on October 21, 2012) Koontz, H., 1961. The Management Theory Jungle. The Journal of the Academy of Management, Vol. 4, No. 3, pp.174-188. O’Toole, J. Ethical Challenges in Human Resources. [Online] Available from http://www.scu.edu/ethics/practicing/focusareas/business/ethics-human- resources.html(Accessed on October 21, 2012) Rane, S., 2007. The Four Functions of Management: Foundation for All Management Concepts. [Online] Available from. http://voices.yahoo.com/the-four-functions-management-foundation-all- 538016.html?cat=3(Accessed on October 21, 2012) Wren, DA and Bedeian, AG and Breeze, JD., 2002. The Foundations of Henri Fayol’s Administrative Theory. Management Decision, Vol. 40, No. 9, pp. 906-918. Read More