Definitions

Henry Fayol – To manage is “to forecast and plan, to organize, to command, to coordinate, and to
control.”
Sir Charles Reynold – Management is “the process of getting things done through the agency of a
community. The functions of management are the handling of a community with a view to fulfilling
the purposes for which it exists.”
Mary Cushing Niles – “Good management, or ‘Scientific Management’, achieves a social objective
with the best use of human and material energy and time, and with satisfaction for the participants and
the public.”
John F. Mee – Management is the “art of securing maximum result with minimum of effort so as to
secure maximum prosperity for the employer and employee, and give the public the best possible
service.”
Koontz and O’Donnell – Management is the “creation and maintenance of an internal environment in
an enterprise where individuals, working in groups, can perform efficiently and effectively towards the
attainment of group goals. It is the art of getting the work done with and through people in formally
organized group.”
Management has been defined by many thinkers in a number of ways.

Some of the important definitions are:

“Management is knowing exactly what you want men to do, and then seeing that they do it in the best
and cheapest way”. — F.W. Taylor
“Management is a multipurpose organ that manages a business, manages a manager and manages
workers and work”. — P. Drucker

“Management is the art of getting things done through the other peoples”. — Mary Parker Follett

“Management may be defined as the art of applying economic principles that underline control of men
and materials in enterprise under consideration”. — Kimball and Kimball

“Management is a kind of coordination activity between all the social process and man, machine,
material, money and method; in such a way as to achieve the stated goals”. — Prof. S.B. Srivastava

“Management is the attainment of pre-established goals by the direction of human performance along
the pre-established lines”. — Appley L.

“Management is principally a task of planning, coordinating, motivating and controlling the efforts of
others towards specific objectives”. — James Landy

“Management is guiding human and physical resources into dynamic organization units which attain
their objectives to the satisfaction of those served and with high degree of morale and sense of
attainment on the part of those rendering service”. — American Management Association
“Management is to forecast and to plan, to organize, to command, to coordinate and to control”. —
Henri Fayol

“Management is the process of planning, organizing, leading and controlling the efforts of organization
members and of using all other organizational resources to achieve stated organizational goals”. —
James A.F. Stoner.

“Management is defined as the creation and maintenance of an internal environment in an enterprise

where individuals working together in groups, can perform efficiently and effectively towards the
attainment of group-goals”. — Koontz & O’Donnell.

From the above definitions, it can be concluded that “Management is a social process of planning,
organising, staffing, directing, coordinating, controlling the organisational resources to achieve the
organisational objectives in a dynamic environment.”.

Nature

The following are the nature of management.

1. Universal
Management is universal as it’s common and crucial in all organizations. You can apply the principles
of management in all situations regardless of the nature, location, and size of the enterprise.

Management’s universality implies that its skills are transferable from one person to another which
allows managers to get trained and develop those skills.

2. Social
Management involves handling people organized in a group. All the individuals a manager has to
interact with have various levels of dynamism, understanding, and sensitivity.

Management requires retaining, motivating, and developing people at work and ensuring their
satisfaction as social beings.

3. Intangible
Management is intangible. It’s not a thing or object which you can touch but you can feel its presence
through the results of its efforts as adequate, orderly work output and employee satisfaction.

4. Dynamic
Management is dynamic as it must remain equipped to face various changes in the corporate
environment caused by social, economic, technological, political, or human factors.

It inspires and thrives on dynamic action.

5. Goal-Oriented
All the activities performed in management processes are goal-oriented. They all focus on achieving
specific goals. Management processes aim to achieve the organization’s goals that are practical and
realistic.

It is purposeful as its success is measured by the extent to which it achieves the desired goals.

6. Production Factor
Managers are vital to utilizing capital and labour. That’s why management is a significant factor of
production.

7. Co-ordinating
Management requires coordination between groups of people. All physical and human resources
require efficient coordination to achieve optimal levels of productivity.

Without it, no work would complete leading to retention and chaos.

8. Crucial Part of Society

Society has a great impact on management and similarly, management has an impact on society.
Managers are responsible for contributing to society through charity, organization, and growth.

9. Professional
Managers must have the proper knowledge and managerial training.

They must also conform to the code of conduct and be conscious of their humans and social
responsibilities.

10. Process
Management consists of a sequence of actions that we conduct towards an end.
Role of managers

Some of the roles performed by managers are:

1. Interpersonal Roles:

Liaison:

In this role of liaison, every manager must cultivate contacts outside his vertical chain of command to
collect information useful for his organization.

Leader:

As a leader, every manager must motivate and encourage his employees. He must also try to reconcile
their individual needs with the goals of the organization.

Figurehead:

In this role, every manager has to perform some duties of a ceremonial nature, such as greeting the
touring dignitaries, attending the wedding of an employee, taking an important customer to lunch, and
so on.

2. Informational Roles:

Disseminator:

In the role of a disseminator, the manager passes some of his privileged information directly to his
subordinates who would otherwise have no access to it.

Monitor:

As monitor, the manager has to perpetually scan his environment for information, interrogate his liaison
contacts and his subordinates, and receive unsolicited information, much of it as result of the network
of personal contacts he has developed.
Spokesman:

In this role, the manager informs and satisfies various groups and people who influence his
organization. Thus, he advises shareholders about financial performance, assures consumer groups that
the organization is fulfilling its social responsibilities and satisfies government that the origination is
abiding by the law.

3. Decisional Roles:

Disturbance Handler:

In this role, the manager has to work like a fire-fighter. He must seek solutions of various unanticipated
problems – a strike may loom large a major customer may go bankrupt; a supplier may renege on his
contract, and so on.

Entrepreneur:

In this role, the manager constantly looks out for new ideas and seeks to improve his unit by adapting
it to changing conditions in the environment.

In addition, managers in any organization work with each other to establish the organization’s long-
range goals and to plan how to achieve them. They also work together to provide one another with the
accurate information needed to perform tasks. Thus, managers act as channels of communication with
the organization.

Negotiator:

The manager has to spend considerable time in negotiations. Thus, the chairman of a company may
negotiate with the union leaders a new strike issue; the foreman may negotiate with the workers a
grievance problem, and so on.

Resource Allocator:

In this role, the manager must divide work and delegate authority among his subordinates. He must
decide who will get what.

Managerial skills and levels

Types of Management Skills
According to American social and organizational psychologist Robert Katz, the three basic types of
management skills include:

1. Technical Skills
Technical skills involve skills that give the managers the ability and the knowledge to use a variety of
techniques to achieve their objectives. These skills not only involve operating machines and software,
production tools, and pieces of equipment but also the skills needed to boost sales, design different
types of products and services, and market the services and the products.

2. Conceptual Skills
These involve the skills managers present in terms of the knowledge and ability for abstract thinking
and formulating ideas. The manager is able to see an entire concept, analyse and diagnose a problem,
and find creative solutions. This helps the manager to effectively predict hurdles their department or
the business as a whole may face.

3. Human or Interpersonal Skills

The human or the interpersonal skills are the skills that present the managers’ ability to interact, work
or relate effectively with people. These skills enable the managers to make use of human potential in
the company and motivate the employees for better results.
Examples of Management Skills
There is a wide range of skills that management should possess to run an organization effectively and
efficiently. The following are six essential management skills that any manager ought to possess for
them to perform their duties:

1. Planning
Planning is a vital aspect within an organization. It refers to one’s ability to organize activities in line
with set guidelines while still remaining within the limits of the available resources such as time,
money, and labour. It is also the process of formulating a set of actions or one or more strategies to
pursue and achieve certain goals or objectives with the available resources.
The planning process includes identifying and setting achievable goals, developing necessary
strategies, and outlining the tasks and schedules on how to achieve the set goals. Without a good plan,
little can be achieved.

2. Communication
Possessing great communication skills is crucial for a manager. It can determine how well information
is shared throughout a team, ensuring that the group acts as a unified workforce. How well a manager
communicates with the rest of his/her team also determines how well outlined procedures can be
followed, how well the tasks and activities can be completed, and thus, how successful an organization
will be.
Communication involves the flow of information within the organization, whether formal or informal,
verbal or written, vertical or horizontal, and it facilitates smooth functioning of the organization. Clearly
established communication channels in an organization allow the manager to collaborate with the team,
prevent conflicts, and resolve issues as they arise. A manager with good communication skills can relate
well with the employees and thus, be able to achieve the company’s set goals and objectives easily.

3. Decision-making
Another vital management skill is decision-making. Managers make numerous decisions, whether
knowingly or not, and making decisions is a key component in a manager’s success. Making proper
and right decisions results in the success of the organization, while poor or bad decisions may lead to
failure or poor performance.
For the organization to run effectively and smoothly, clear and right decisions should be made. A
manager must be accountable for every decision that they make and also be willing to take
responsibility for the results of their decisions. A good manager needs to possess great decision-making
skills, as it often dictates his/her success in achieving organizational objectives.

4. Delegation
Delegation is another key management skill. Delegation is the act of passing on work-related tasks
and/or authorities to other employees or subordinates. It involves the process of allowing your tasks or
those of your employees to be reassigned or reallocated to other employees depending on current
workloads. A manager with good delegation skills is able to effectively and efficiently reassign tasks
and give authority to the right employees. When delegation is carried out effectively, it helps
facilitate efficient task completion.
Delegation helps the manager to avoid wastage of time, optimizes productivity, and ensures
responsibility and accountability on the part of employees. Every manager must have good delegation
abilities to achieve optimal results and accomplish the required productivity results.

5. Problem-solving
Problem-solving is another essential skill. A good manager must have the ability to tackle and solve
the frequent problems that can arise in a typical workday. Problem-solving in management involves
identifying a certain problem or situation and then finding the best way to handle the problem and get
the best solution. It is the ability to sort things out even when the prevailing conditions are not
right. When it is clear that a manager has great problem-solving skills, it differentiates him/her from
the rest of the team and gives subordinates confidence in his/her managerial skills.

6. Motivating
The ability to motivate is another important skill in an organization. Motivation helps bring forth a
desired behaviour or response from the employees or certain stakeholders. There are numerous
motivation tactics that managers can use, and choosing the right ones can depend on characteristics
such as company and team culture, team personalities, and more. There are two primary types of
motivation that a manager can use. These are intrinsic and extrinsic motivation.
 Managerial levels

The term “Levels of Management’ refers to a line of demarcation between various managerial
positions in an organization. The number of levels in management increases when the size of the
business and work force increases and vice versa. The level of management determines a chain of
command, the amount of authority & status enjoyed by any managerial position. The levels of
management can be classified in following broad categories

1. Top Level Management:

Top level management consists of Chairman, Board of Directors, Managing Director, General
Manager, President, Vice President, Chief Executive Officer (C.E.O.), Chief Financial Officer (C.F.O.)
and Chief Operating Officer etc. It includes group of crucial persons essential for leading and directing
the efforts of other people. The managers working at this level have maximum authority.

Main functions of top-level management are:

(a) Determining the objectives of the enterprise. The top-level managers formulate the main objectives of
the organisation. They form long term as well as short term objectives.

(b) Framing of plans and policies. The top-level managers also frame the plans and policies to achieve the
set objectives.
(c) Organising activities to be performed by persons working at middle level. The top-level management
assigns jobs to different individuals working at middle level.

(d) Assembling all the resources such as finance, fixed assets etc. The top-level management arranges all
the finance required to carry on day-to-day activities. They buy fixed assets to carry on activities in
the organisation.

(e) Responsible for welfare and survival of the organisation—Top level is responsible for the survival and
growth of the organisation. They make plan to run the organisation smoothly and successfully.
(f) Liaison with outside world, for example, meeting Government officials etc. The top-level management
remains in contact with government, competitors, suppliers, media etc. Jobs of top level are complex
and stressful demanding long hours of commitment towards organisation.
(g) Welfare and survival of the organisation.

2. Middle Level Management:

This level of management consists of departmental heads such as purchase department head, sales
department head, finance manager, marketing manager, executive officer, plant superintendent, etc.
People of this group are responsible for executing the plans and policies made by top level. They act as
a linking pin between top and lower-level management. They also exercise the functions of top level
for their department as they make plans and policies for their department, organise and collect the
resources etc.

Main functions of middle level management are

(a) Interpretation of policies framed by top management to lower level. Middle level management act as
linking pin between top level and lower-level management. They only explain the main plans and
policies framed by top level management to lower level.

(b) Organising the activities of their department for executing the plans and policies. Generally middle
level managers are the head of some department. So, they organise all the resources and activities of
their department.

(c) Finding out or recruiting/selecting and appointing the required employees for their department. The
middle level management selects and appoints employees of their department.

(d) Motivating the persons to perform to their best ability. The middle level managers offer various
incentives to employees so that they get motivated and perform to their best ability.
(e) Controlling and instructing the employees, preparing their performance reports etc. The middle level
managers keep a watch on the activities of low-level managers. They prepare their performance
appraisal reports.

(f) Cooperate with other departments for smooth functioning.

(g) Implementing the plans framed by top level.

3. Supervisory Level/Operational Level:

This level consists of supervisors, superintendent, foreman, sub-department executives; clerk, etc.
Managers of this group actually carry on the work or perform the activities according to the plans of
top and middle level management. Their authority is limited. The quality and quantity of output depends
upon the efficiency of this level of managers. They pass on the instruction to workers and report to the
middle level management. They are also responsible for maintaining discipline among the workers

Functions of lower-level management are:

(a) Representing the problems or grievances of workers before the middle level management. The
supervisory level managers are directly linked with subordinates so they are the right persons to
understand the problems and grievances of subordinates. They pass these problems to middle level
management.

(b) Maintaining good working conditions and developing healthy relations between superior and
subordinate. The supervisory managers provide good working conditions and create supportive work
environment which improve relations between supervisors and subordinates.

(c) Looking to safety of workers. Supervisory level managers provide safe and secure work environment
for workers.

(d) Helping the middle level management in recruiting, selecting and appointing the workers. The
supervisory level managers guide and help the middle level managers when they select and appoint
employees.

(e) Communicating with workers and welcoming of their suggestions. The supervisory level managers
encourage the workers to take initiative. They welcome their suggestions and reward them for good
suggestions.
(f) They try to maintain precise standard of quality and ensure steady flow of output. The supervisory
level managers make sure that quality standards are maintained by the workers.

(g) They are responsible for boosting the morale of the workers and developing the team spirit in them.
They motivate ‘the employees and boost their morale.

(h) Minimising the wastage of materials.

Summary of Level of Management and their Function

Basic functions of Management

Management has been described as a social process involving responsibility for economical
and effective planning & regulation of operation of an enterprise in the fulfilment of given
purposes. It is a dynamic process consisting of various elements and activities. These activities
are different from operative functions like marketing, finance, purchase etc. Rather these
activities are common to each and every manger irrespective of his level or status.
Different experts have classified functions of management. According to George & Jerry,
“There are four fundamental functions of management i.e., planning, organizing, actuating and
controlling”.
According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, & to
control”. Whereas Luther Gullick has given a keyword ’POSDCORB’ where P stands for
Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for
reporting & B for Budgeting. But the most widely accepted are functions of management given
by KOONTZ and O’DONNEL i.e., Planning, Organizing, Staffing, Directing and Controlling.
For theoretical purposes, it may be convenient to separate the function of management but
practically these functions are overlapping in nature i.e., they are highly inseparable. Each
function blends into the other & each affects the performance of others.

1. Planning
It is the basic function of management. It deals with chalking out a future course of action &
deciding in advance the most appropriate course of actions for achievement of pre-determined
goals. According to Koontz, “Planning is deciding in advance - what to do, when to do & how
to do. It bridges the gap from where we are & where we want to be”. A plan is a future course
of actions. It is an exercise in problem solving & decision making. Planning is determination
of courses of action to achieve desired goals. Thus, planning is a systematic thinking about
ways & means for accomplishment of pre-determined goals. Planning is necessary to ensure
proper utilization of human & non-human resources. It is all pervasive, it is an intellectual
activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.
2. Organizing
It is the process of bringing together physical, financial and human resources and developing
productive relationship amongst them for achievement of organizational goals. According to
Henry Fayol, “To organize a business is to provide it with everything useful or it’s functioning
i.e., raw material, tools, capital and personnel’s”. To organize a business involves determining
& providing human and non-human resources to the organizational structure. Organizing as a
process involves:
• Identification of activities.
• Classification of grouping of activities.
• Assignment of duties.
 • Delegation of authority and creation of responsibility.
• Coordinating authority and responsibility relationships.
3. Staffing
It is the function of manning the organization structure and keeping it manned. Staffing has
assumed greater importance in the recent years due to advancement of technology, increase in
size of business, complexity of human behaviour etc. The main purpose of staffing is to put
right man on right job i.e., square pegs in square holes and round pegs in round holes.
According to Koontz & O’Donnell, “Managerial function of staffing involves manning the
organization structure through proper and effective selection, appraisal & development of
personnel to fill the roles designed un the structure”. Staffing involves:
• Manpower Planning (estimating man power in terms of searching, choose the
person and giving the right place).
• Recruitment, Selection & Placement.
• Training & Development.
• Remuneration.
• Performance Appraisal.
• Promotions & Transfer.
4. Directing
It is that part of managerial function which actuates the organizational methods to work
efficiently for achievement of organizational purposes. It is considered life-spark of the
enterprise which sets it in motion the action of people because planning, organizing and staffing
are the mere preparations for doing the work. Direction is that inert-personnel aspect of
management which deals directly with influencing, guiding, supervising, motivating sub-
ordinate for the achievement of organizational goals. Direction has following elements:
• Supervision
• Motivation
• Leadership
• Communication
Supervision- implies overseeing the work of subordinates by their superiors. It is the act of
watching & directing work & workers.
Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work.
Positive, negative, monetary, non-monetary incentives may be used for this purpose.
Leadership- may be defined as a process by which manager guides and influences the work of
subordinates in desired direction.
Communications- is the process of passing information, experience, opinion etc from one
person to another. It is a bridge of understanding.
 5. Controlling
It implies measurement of accomplishment against the standards and correction of deviation if
any to ensure achievement of organizational goals. The purpose of controlling is to ensure that
everything occurs in conformities with the standards. An efficient system of control helps to
predict deviations before they actually occur. According to Theo Haimann, “Controlling is the
process of checking whether or not proper progress is being made towards the objectives and
goals and acting, if necessary, to correct any deviation”. According to Koontz & O’Donnell
“Controlling is the measurement & correction of performance activities of subordinates in
order to make sure that the enterprise objectives and plans desired to obtain them as being
accomplished”. Therefore, controlling has following steps:
• Establishment of standard performance.
• Measurement of actual performance.
• Comparison of actual performance with the standards and finding out deviation
if any.
• Corrective action.

Management as an Art, Science or Profession

Management as a Science:
Science can be defined as a systematic and organised body of knowledge based on logically
observed findings, facts and events.

Science comprises of exact principles which can be verified and it can establish cause and
effect relations.

Main characteristics/features of science are:

1. Systematic body of knowledge:

In science organised and systematic study material is available which is used to acquire the
knowledge of science. Like science in management also there is availability of systematic and
organised study material. So, first feature of science is present in management.

2. Scientific principles are derived on the basis of logical and scientific observations:
The scientists perform logical observation before deriving any principle or theory. They are
very objective while doing the observations. But when managers are observing they have to
observe human beings and observation of human being cannot be purely logical and objective.

Some kind of subjectivity enters in the observations so this feature of science is not present in
management. All the scientific principles have same effect, wherever we try them whereas
effect of management principles varies from one situation to other.

3. Principles are based on repeated experiments:

Before developing scientific principles scientists test these principles under different conditions
and places. Similarly, managers also test and experiment managerial principles under different
conditions in different organisations. So, this feature of science is present in management.

4. Universal Validity:
Scientific principles have universal application and validity. Management principles are not
exact like scientific principles so their application and use are not universal. They have to be
modified according to the given situation. So, this feature of science is not present in
management.

5. Replication is possible:
In science replication is possible as when two scientists are undertaking the same investigation
working independently and treating the same data under the same conditions may desire or
obtain the identical or exactly same result.

But in management managers have to conduct research or experiments on human beings. So,
if’ two managers are investigating same data, on different sets of human beings they will not
get identical or same result because human beings never respond in exactly identical manner.
So, this feature of science is also not present in management.

Management as an Art:
Art can be defined as systematic body of knowledge which requires skill, creativity and practice
to get perfection.

The main features of art are:

1. Systematic body of knowledge/Existence of theoretical knowledge:
In every art there is systematic and organized study material available to acquire theoretical
knowledge of the art. For example, various books on different ragas are available in music. In
management also there is systematic and organised body of knowledge available which can
help in acquiring managerial studies. So, this feature of art is present in management also.

2. Personalised application:
In the field of art only theoretical knowledge is not enough. Every artist must have personal
skill and creativity to apply that knowledge. For example, all musicians learn same ragas but
they apply these ragas according to their personal skill and creativity which makes them
different.

In management also all managers learn same management theories and principles. But their
efficiency depends on how well they use these principles under different situations by applying
personal skills and creativity so this feature of art is also present in management.

3. Based on Practice and creativity:

The artist requires regular practice of art to become finer and more perfect. Without practice
artists lose their perfection. Art requires creative practice, i.e., artist must add his creativity to
the theoretical knowledge he has learned. Same way with experience managers also improves
their managerial skills and efficiency. So, this feature of art is also present in management.

Management: Both Science and Art:

Management is both science as well as art. Like science it has systematic and well- organised
body of knowledge and like art it requires personal skill, creativity and practice to apply such
knowledge in the best possible way. Science and art are not in contrast to each other; both exist
together in every function of management.

Management as a Profession:
Profession can be defined as an occupation backed by specialised knowledge and training, in
which entry is restricted.

The main features of profession are:

1. Well defined Body of knowledge:
In every profession there is practice of systematic body of knowledge which helps the
professionals to gain specialised knowledge of that profession. In case of management also
there is availability of systematic body of knowledge.

There are large numbers of books available on management studies. Scholars are studying
various business situations and are trying to develop new principles to tackle these situations.
So presently this feature of profession is present in management also.

2. Restricted Entry:

The entry to a profession is restricted through an examination or degree. For example, a person
can practice as doctor only when he is having MBBS degree.

Whereas there is no legal restriction on appointment of a manager, anyone can become a

manager irrespective of the educational qualification. But now many companies prefer to
appoint managers only with MBA degree. So presently this feature of profession is not present
in management but very soon it will be included with statutory backing.

3. Presence of professional associations:

For all the professions, special associations are established and every professional has to get
himself registered with his association before practising that profession. For example, doctors
have to get themselves registered with Medical Council of India, lawyers with Bar Council of
India etc.

In case of management various management associations are set up at national and international
levels which have some membership rules and set of ethical codes, for example, AIMA in New
Delhi, National Institute of Personal Management at Calcutta etc., but legally it is not
compulsory for managers to become a part of these organisations by registration. So presently
this feature of profession is not present in management but very soon it will be included and
get statutory backing also.

4. Existence of ethical codes:

For every profession there are set of ethical codes fixed by professional organisations and are
binding on all the professionals of that profession. In case of management there is growing
emphasis on ethical behaviour of managers. All India Management Association (AIMA) has
devised a code of conduct for Indian managers. But legally it is not compulsory for all the
managers to get registered with AIMA and abide by the ethical codes.

So presently this feature of profession is not present in management but very soon it will be
included with statutory backing.

5. Service Motive:

The basic motive of every profession is to serve the clients with dedication. Whereas basic
purpose of management is achievement of management goal, for example for a business
organisation the goal can be profit maximisation.

But nowadays only profit maximisation cannot be the sole goal of an enterprise. To survive in
market for a long period of time, a businessman must give due importance to social objectives
along with economic objectives. So presently this feature of profession is not present but very
soon it will be included.