Effective Industrial Management - Essay Example

Management Table of Contents Table of Contents 2 Introduction 2 2 Functions of Management 4 2 Planning 4 2.2 Organizing 4 2.3 Staffing 5 2.4 Directing 5 2.5 Motivating 6 2.6 Controlling 6 3 Co-ordination & Management 8 4 Communication 9 5 Management Policies and Environment Factors 10 6 Conclusion 11 References 13 1 Introduction Management has been defined as the guidance, leadership and control of the effort of a group of people toward some common objective. This concept of management points out the purpose of function of management but it tells us little about the nature of management processes, that is, how the manager achieves the results. One way to analyze management is to think in terms of what manager does (Ahuja 2005). Using this approach, one can arrive at the management process which describes the work of any manager. In an organization, the leader of the organization has purpose for the organization. The leader must communicate to its members so that as a group, they will know what to perform in order to achieve their goal. The leader will give a group of instructions that will guide the members of the organization. The instructions must be clear enough to understand well by the members. Decision theory is a general approach to decision making when the outcomes associated with the alternatives are often in doubt. It helps managers with decisions on process, capacity, location and inventory, because such decisions are about an uncertain future. Managers in other functional areas can also use decision theory (Lundy). According to Lundy, "Management is principally a task of planning, coordinating, motivating and controlling the efforts of others towards a specific objective".1 This definition covers the three major functions of management, viz., planning, implementing and controlling. It points out management is what management does, i.e., planning, executing and controlling group activities. Thus, managing is an art of creating favorable performance environment enabling the group to attain stated objectives and management is the body of organized knowledge, i.e., science which underlines the art. 2 Functions of Management "Management is what management does" - points out the functional approach to management and emphasizes the importance of distinctive managerial functions which together give us unified concept of the process of management. Functions of management are also called elements of management. An analysis of the functions of management points out what management does. It also provides the basis for defining precisely the word 'management' (Drucker). Broadly speaking, a manager is called upon to perform the following managerial functions: 2.1 Planning When management is reviewed as a process, planning is the first function is to be performed by a manager. The work of a manager begins with the setting of objectives of the organization and goals in each area of the business (Sherlker). This is done through planning. A manager proves the present to find where he is and he then forecasts future objectives which will indicate where he wants to be. The alternatives to achieve the objectives are evaluated and the selected alternatives become the plan of action. 2.2 Organizing Managing a business is not just planning. It includes putting life into the plan by bringing together the executive personnel, workers, capital, machinery, materials, physical facilities and other things or services to execute plans. When these resources are assembled the enterprise comes to life. Organizing involves determining and noting activities needed to fulfill the objectives, grouping these activities into manageable units or departments, and assigning such groups of activities to managers (Sherlker). Delegation of authority creates an organization. It determines authority - responsibility relationship. These relationships must be properly coordinated to secure unity of organization. 2.3 Staffing Staffing involves filling the positions needed in the organization structure by appointing competent and qualified persons for the jobs. This needs manpower planning and man-power management. There is scientific selection and training of personnel. All the staffs have to be provided with suitable methods of remuneration and performance appraisal. Much of the work relating to human resource planning and management" is delegated to a personnel manager (Sherlker). However, top management is ultimately responsible for all activities relating to staffing 2.4 Directing A manager by leadership and motivation has to direct and guide all subordinates and get the work done through people. Direction involves managing managers, managing workers and the work through the means of motivation, proper leadership, effective communication as well as co-ordination. A manager must develop the ability to command. He must know how to direct others, i.e., how to issue orders and instructions, without arousing resentment or offence and he must be able to secure willing obedience from his subordinates without destroying their initiative and creativity (Sherlker). 2.5 Motivating Motivation and leadership are the master keys to successful management of any enterprise. They are also responsible to ensure productivity of human resources. Motivation can set into motion a person to carry out certain activity Motivation assumes unique importance in modern business management. Democratic leadership heavily relies on motivation of employees, through financial and non-financial incentives. Human relations in industry have accorded special emphasis to this managerial function. Effective communication and participation increases the power of motivation (Sherlker). 2.6 Controlling Controlling is the last phase of the management process. Control is the process of measuring actual results or present performance, comparing those results to plans or some standard of performance, finding the reason for deviation of actual from desired result and taking corrective action when necessary. The end point of controlling is to achieve objectives (Sherlker). Some authors include staffing within organizing and consider coordinating and communicating as vital parts of direction, motivation and leadership. Thus functions of a manager can be pictured as bellow:- Figure: Functions of a Manager [Source : Drawn by me from the very concepts explained in the book "The Practice of Management" by P. Drucker] The sequence of a manager's functions begins with planning. However, a manager performs all six functions simultaneously or several times during the working day. Directing, motivating, and communicating constitute enacting-management-in-action. The work of a manager begins with the setting of objectives of the organization and goals in each area of the business. Leadership cum direction offers the real motive power to achieve the planned objectives. A manager directs his subordinates by telling what to do, and by issuing orders and instructions to them. Manager supervises, follows up and checks their performance. He leads them by acting as their guide, coach, counselor, teacher and interpreter of goals and objectives of an organization. He gets things them thoroughly willingly, and with a team spirit by motivation of his subordinates. Communication and co-ordination are the integral parts of management in action. A manager or leader needs all forms of communication in the management of an organization. A manager is also the coordinator of all the activities at all levels of management in order to ensure harmony in action and unity in objectives. 3 Co-ordination & Management Each managerial function is an exercise in co-ordination. It is said that co-ordination is the essence of management. It is an integral part of direction. Co-ordination is concerned with harmonious and unified action directed toward a common objective. It involves inter-relating various parts of the work of the organization. It is a separate activity but a condition that should diffuse itself through phases of the management process. Co-ordination is an orderly arrangement of group efforts to provide unity of action (Sherlker). It ensures that groups and persons work efficiently, economically and in harmony. Co-ordination can be accomplished automatically if the organization has sound objectives, policies, procedures and programmes and a sound organizational structure. A manager must co-ordinate the work for which he is accountable by balancing, timing, and integrating the work. Such efforts at co-ordination are required at all levels of management. Co-ordination requires effective channels of communication. Person-to-person communication is most essential for co-ordination. 4 Communication In its broadest sense, communication is the transmission of meaning to others. It means transmission of information and understanding from person to person - a flow of information from the bottom to the top as well as horizontal or sideways on the same level of organization. In formal communication there may be dissemination of information primarily. In inter-personal communication between two or more persons there will be transmission of information as well as flow of understanding based on two way traffic of communication Personal or face-to-face communication is the best form of communication. Managerial leadership depends upon upward communication to the leader in the form of feedback so that a manager can understand the feelings, emotions, motives and problems of subordinates and his/her power will have support and acceptance from below. Communication also leads to sharing of information, ideas and knowledge. Communication is the cement that makes organizations. It enables a group to think together, and act together. Society's very existence is dependent upon communication, i.e., passing of information and understanding from one person to another. An organization exists on the basis of good system of communication network. A manager spends more than eighty per cent of his time daily on communication in order to direct, motivate, lead and co-ordinate management activities. When communication breaks down, organized activity also fails. Hence the first function of a manager is to develop and maintain a good system of communication. Meaningful organizational decisions are based upon the effective communication of relevant information - facts, feelings, ideas, messages, etc. Understanding thoroughly the process of communication can enable a manager to improve a lot the performance of the organization. 5 Management Policies and Environment Factors Environments have a great impact on companies. Strategy is the reaction or response to these external and internal situations. Management policies are always depends on the environment factors in which the organization operates. In designing management policies and crafting strategies, there are several concepts that are organised to create a broader picture of the firm's situations. Without this, no organisation can achieve its objectives. Hence crafting policies in relation with the environmental factors are real need of the time to achieve the well defined goal of the organisation. The environment factors of the company plays a major role for constructing sound management policies. External environmental factors are beyond the control of the management but have a marked bearing on growth and strategy of an organisation. The decision making mechanism of an organisation much depends on these factors. Ddecision-making mechanism has some important assumptions. It assumes that; (i) all the alternatives of choice are completely known; (ii) all the consequences of choice are known; and (iii) the decision-maker has a complete utility ordering for all possible sets of consequences. These assumptions are seldom fulfilled in practice. Decision-maker just does not have full knowledge of all alternatives and their consequences. As such, he cannot be rational; at best he can be subjectively rational, not objectively rational. In such a situation, rather than considering all alternatives and listing those from most-preferred to least preferred, the decision-maker begins by searching for probable courses of action. The search continues until he finds an alternative that meets some personally determined minimum acceptable level. Once this level is attained, he rarely goes beyond to find a maximizing decision. The probable course of action to make a decision will be depends on the environmental factors of a firm. Management strategy and policy making involves a comprehensive analysis of a business in relation to its industry, its competitors, and the business environment in both the short- and the long-term. 6 Conclusion Directing phase of management is the heart of management. Directing means telling people what to do and seeing that they do it to the best of their ability. To get things done through others, a manager is called upon to direct, motivate and lead his workforce towards the well defined organizational goals. The integration of high-speed technologies, powerful software, and sophisticated, worldwide telecommunications structures is transforming the business climate all over the globe. There are various factors, which affect the outcome of a decision. Some of these are uncontrollable while others are controllable. It is virtually impossible to acquire knowledge about all these factors and to determine their effects upon the outcome of the decision. Since the outcome of a decision can be known only in future, the inability to make exact predictions of future events further limits one's knowledge about the consequences of various choices. As manager is the leader of an organization. He must be capable of leading the organization with effective policies based on the realities and management methods. The essence of management policies and other strategies is to understand the current forces and to use them to the organizations business advantage. However, merely understanding these factors correctly is not enough but it can be successful only when managers are able to behave appropriately in the light of these perceptions and understanding. Thus, "The successful manager of men can be primarily characterized neither as a strong leader nor as a permissive one. Rather he is one who maintains a high batting average in accurately assessing the forces that determine what his most appropriate behavior at any given time should be and in actually being able to behave accordingly. Being both insightful and flexible, he is less likely to see the problem of leadership as a dilemma."2 References Ahuja K. (2005) Organizational Behavior. Kalyani Publishers Calcutta Pp121-158 Hebert A Simon, Administrative Behavior, New York: The Free Press, 1976, p. 76 -77 J. Lundy; Effective Industrial Management, Paperback Peter F. Drucker "The Practice of Management" Harpet & Row Publishers Inc. Newyork. USA Prasad LM. (2006). Organizational Decision Making. Educational publishers. Daryaganj. P - 189-291 Sherlker S A, "Essentials of Business Organisation and Management" Himalaya Publishing House, New Delhi Sharma & Agarwal. (2005) Decesion Making Styles in an Organization Sulabh Publications. Agra. P.98-99 Stephen P. Robbins, The Administrative Process, New Delhi : Prentice- Hall of India 1978, p 167 Wilberforce, G., 2005. Achieving Effective Business Solution. Integrated Templates, MMS Sage and its Versatility. Hopkins University Press. Tannenbaum and Schmidt "How to choose a leadership pattern"; Harvard Business Review: May-June, 1993. Porter, M. E. (1985). Competitive Strategy. New York: The Free Press. Read More