1.

MANAGEMENT

Definition: Henry Fayol Defines “To Manage is to forecast and to plan, to organize, to
command, to coordinate and to control.”

LEVELS OF MANAGEMENT

1. TOP LEVEL.
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2. MIDDLE LEVEL.

3. LOWER LEVEL.

There are three types of management Classified as Top Level, Middle Level, and Lower
Level.

1.Top Level Management;

At Top Level, the managerial personnel are few in number. The Top level executives
report to the board of Directors. The title allotted to Top Level managerial personnel
includes:

 Chief executive office(CEO) or General Manager.

 President of the organization. The CEO may hold the position of the President as
well.
 Vice Presidents of the functional area such as marketing, production, finance and
personnel.
 Managing Director. In same firm, the managing director and the CEO are one and the
same.
2.Middle Level Management:
 The organisation has more managerial personnel as compared to the Top level. The
managerial personnel at the middle level report to the Top level Management. The
managerial personnel at the middle level includes;

 Divisional heads of a multi divisional organization.

 Special Business Unit (SBU) heads in organization where there are special business
units to manage separate units or divisions.
 Regional and Area Managers in a large national or international organization.
 Departmental heads such as marketing manager, finance manager, production
manager, human resource manager, etc.

3.Lower Level Management:

The organization as more managerial personnel as compared to the second level.

It includes:

 Assistant managers.
 Supervisors(foremen)
 Junior executives.

2. Managerial skills

What is a managerial skill?

A skill is an individual’s ability to translate knowledge into action. Hence it is seen in

individual’s performance. A manager occupies executive position and needs certain
managerial skills so as to perform his duties in an efficient manner. The skills, which a
manager requires, can be termed as managerial skills.the intensity of skills varies from
organisation to organization and also as per the levels of management .the concept of
managerial skills was initially suggested by Henry Fayol and was made popular by
Prof.R.L.Katz.

The managerial skills include three major skills. These are:

a)Conceptual Skills. (b) Human Skills. (c) Technical Skills.

The following figure indicates skill mix at different levels of management

Top level Conceptual
management skills

Middle level Human

management Skills (a) Conceptual Skills :
Conceptual skills is a
Lower level combination of vision ,
Management Technial imagination and
skills intelligence that assures
perspective in viewing the
organization and its
future .It deals with the ideas. This skill indicates the ability of a manager to think
about the future of his organisation, his ability to do abstract thinking and his
ability to assess the environmental changes. The Conceptual skill is particularly
necessary in the case of managers working at the top level.

(b)Human Skills: It refers to the ability of the manager to interact with the
subordinates and to build team spirit at all levels . It creates favourable atmosphere
and willing cooperation of employees.The middle level managers need human
relation’s skills .This skill is useful:
 to recognize the feelings and sentiments of others;
 to judge reactions of various courses of action;and
 to undertake self-evaluation.
(c) Technical Skills : Technical skills involves specialized knowledge and competence
in the use of distinctive managerial tools and techniques .In the case of managers
working at the supervisor is mainly concerned with directing and controlling
subordinates and needs technical skills. A professional manager develops these
skills during his management training.

(a)Diagnostic Skills: This skill identifies key factors and understand how they inter
relate to one another. A manager can effectively use this skills with a proper blend
of analytical ability with common sense and intelligence.

(b)Analytical Skills : This skill uses scientific techniques to solve management

problems. Analytical skill is actually an ability to diagnose and evaluate. Without
analytical skill, there is little hope of long-term success.

(c)Administrative Skills: Managers working at top management levels have to

contribute towards framing plans and policies. They are expected to co ordinate
 various activities and ensure conflict-free working of the business.they install and
carry out procedures to check progress of activities against plans.

(d)Behavioural Skills: Behavioural skills are necessary to coordinate, control and

direct the activities of the subordinates. There is improved communication with
subordinates who are motivated to put in their best efforts .Better team work is
prepared and conflicts are settled amicably.

(e)Miscellaneous Skills : Communication skills , leadership skills, problem-solving

skills, etc.

3. 14 Principles of Management

The 14 Management Principles from Henry Fayol (1841-1925) are:

1. Division of Work. Specialization allows the individual to build up experience, and

to continuously improve his skills. Thereby he can be more productive.
2. Authority. The right to issue commands, along with which must go the balanced
responsibility for its function.
3. Discipline. Employees must obey, but this is two-sided: employees will only obey
orders if management play their part by providing good leadership.
4. Unity of Command. Each worker should have only one boss with no other
conflicting lines of command.
5. Unity of Direction. People engaged in the same kind of activities must have the
same objectives in a single plan. This is essential to ensure unity and coordination in
the enterprise. Unity of command does not exist without unity of direction but does
not necessarily flows from it.
6. Subordination of individual interest (to the general interest). Management must
see that the goals of the firms are always paramount.
7. Remuneration. Payment is an important motivator although by analyzing a number
of possibilities, Fayol points out that there is no such thing as a perfect system.
8. Centralization (or Decentralization). This is a matter of degree depending on the
condition of the business and the quality of its personnel.
9. Scalar chain (Line of Authority). A hierarchy is necessary for unity of direction. But
lateral communication is also fundamental, as long as superiors know that such
communication is taking place. Scalar chain refers to the number of levels in the
hierarchy from the ultimate authority to the lowest level in the organization. It
should not be over-stretched and consist of too-many levels.
10. Order. Both material order and social order are necessary. The former minimizes
lost time and useless handling of materials. The latter is achieved through
organization and selection.
11. Equity. In running a business a ‘combination of kindliness and justice’ is needed.
Treating employees well is important to achieve equity.
12. Stability of Tenure of Personnel. Employees work better if job security and career
progress are assured to them. An insecure tenure and a high rate of employee
turnover will affect the organization adversely.
13. Initiative. Allowing all personnel to show their initiative in some way is a source of
strength for the organization. Even though it may well involve a sacrifice of
‘personal vanity’ on the part of many managers.
14. Esprit de Corps. Management must foster the morale of its employees. He further
suggests that: “real talent is needed to coordinate effort, encourage keenness, use
each person’s abilities, and reward each one’s merit without arousing possible
jealousies and disturbing harmonious relations.”