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Essay: Introduction to Management
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Free Business Essay | Introduction to Management
Introduction to Management – REPORT
In large organisations, management represents the key factor that propels businesses and industries to attain growth and development. The rise of modern organisations is not only due to the rapid advancements in technology and communications but on the ability of competent managers to struggle and confront emerging challenges to the organisation’s very existence.
There are a variety of views about management. Practically, the term management refers to planning, organizing, leading, and controlling of organisational activities and their resources (McNamara). Planning involves identifying goals, objectives, methods, resources, and responsibilities and dates for the completion of tasks. Planning and organizing human resources can be quite a challenge given the complex structure of today’s organisations. Establishing the strategic direction and vision for the organisation involves influencing people to follow that direction and share the same vision. Management is also about controlling the human resource processes, the human resource systems, and the human resource structure of the organisation in order to make it more adaptable to change in its internal and external environment.
This report will try to make an analysis of the existing organisational culture, structure, and management style of Harvester Restaurant. It is presented with adequate emphasis on how management, when confronted with a new reality, was able to identify its weaknesses in its management structure, style, and existing culture and the corresponding remedies and management initiatives through empowerment and other changes in the style and structure of their management.
Harvester Restaurant is a wholly owned brand within the Forte Restaurants Division and was recently purchased by the Bass Group (Ashness and Lashley, p. 18). By 1995, it had 78 chains of restaurants around the United Kingdom. Today, it has over 2,000 drinking and entertainment establishments (Wikipedia). Its previous management setup was thought to be obstructing the way its employees commit themselves to the quality of their service to customers.
Management Structure and Problems
Harvester was initially managed in a traditional hierarchical manner. Each restaurant unit was managed by a restaurant manager and two to three assistant managers. This management team was responsible for the day-to-day running of the unit which includes ordering stocks, maintaining the security of materials and money, cashing up and banking takings, locking premises, staffing and management of all the people within the unit (Ashness and Lashley, 1995). The restaurant unit manager reports directly to a regional manager. Four regional managers are directly accountable to the operations managers (north and south divisions) while the operations managers report to the managing director. This structure produced five layers between the customers and the managing director.
The management team then became aware of the new emerging demands and discerning attitude of customers. At this point, there seems to be a problem with the layers of management. In this structure, decisions are made at the top and passed down through several intermediaries. Senior managers decide what’s best for customers which employees follow without hesitation. But according to studies made, people resist solutions imposed by people who lack familiarity with day-to-day operations (Harvard Business Essentials, 2003). Today’s organisational structures need to have collaboration between willing and motivated parties in order to effect changes. The problem then is that in this structure, senior level managers are better at telling people what to do than at getting employees to collaborate and made significant contributions.
Under this Harvester management setup, a lot of problems emerged. There was low commitment from their employees. The rate of turnover was high. The organisation itself was too dependent on their managers for decisions. Resources and skills were under-utilized (Ashness and Lashley, 1995). Too much attention was given to processes and not on the attentive values. Employees, who are usually the ones in direct contact with customers and who usually hold direct knowledge on the day-to-day operations are usually not listened to. But there are other factors which might have been influencing these happenings. According to Duck (2001), most leaders do not have enough vertical contact with others in the organisation or enough time to stay in touch. She notes that most members of the management team of organisations are not actively using information networks that keep them up-to-date on what’s happening and who’s saying what. While most leaders recognize the value of being connected with people at every level and of getting unfiltered information, very few know how to make it happen without investing more time than they feel they have available. In short, the organisation’s strategy was not consistent with the management of its untapped human and intellectual resources. While it has set up long term goals and mechanisms to satisfy its customers, it has failed to address their immediate needs and concerns.
It is not altogether uncommon for conflict to occur inside the organisation. Conflict occurs when individuals or groups are not obtaining what they need or want. People in organisations bring with them different educational backgrounds, interests, preferences, religious and ethical values, and personalities. Usually, it causes the flow of real communication which results to the identification and resolution of problems. In a hierarchical structure however, there is a greater chance that conflict would occur. The communication process passing through different layers does not always guarantee that the right information flows correctly. Conflict resolution usually hinges around a certain layer of management. The situation at Harvester is no different. There was selective communication going on. Accountability was limited to a few.
The present management setup has instilled a culture not bent on proactively managing the focus on guests. There was a lack of trust and feeling of ownership prevailing at this time. Information was not valued either.
New Management Structure
In planning for change, it is important to identify the dimensions of change. Theory E and Theory O includes the organisational goals, leadership, and focus (Harvard Business Essentials, 2003). Theory E and Theory O Change involves embracing the paradox between economic values and organisational capability. It also encourages setting management directions from the top while encouraging participation from the people below. It also focuses simultaneously on the hard (structures and systems) and the soft (corporate culture). This theory was what had been applied to Harvester’s changes in its management structure, style and culture.
The reorganisation at Harvester Restaurants involved the removal of two layers of management within the entire organisation through a process called delayering (Ashness and Lashley, 1995). At a senior level, the two operations manager posts were removed and three regional teams were created. Each team was based on a regional office which included one training manager, one control manager, and three regional managers who would each be accountable for eight to ten restaurants. In all cases, the teams became autonomous, with a senior member of management taking special interest in each team. The team became the focus of business performance and assessment. Regional teams were allocated budgets and made decisions on how best to use these funds within the team.
In discussing the wider aspects of organisational culture, Handy (1993), suggests that diversity in the organisation puts on what he categorizes as a task culture, with influence based on the expert power. Handy (1993) describes this as a team culture where getting the job done tends to wipe out most status and style differences. At the restaurant level, the team manager and the team coach were no longer managing the staff but were more responsible for encouraging the staff to be more self sufficient and empowered. Each restaurant is organised around three teams which reflect the different operational areas like the bar, the restaurant, and the kitchen. Each team has its own team responsibilities. Johnson and Scholes (1997, p. 35) say that a major challenge for managers is to help develop an organization which is able to simultaneously meet stakeholder expectations while meeting the needs of customers better than competitors within a changing environment. Micro management of the operational areas has helped address immediate customer and restaurant concerns while increasing employees’ awareness to their responsibilities, accountabilities, and total commitment to the organisation’s new set of goals. The creation of these teams has ensured that employees are given the necessary training needed for effective performance. Cane (1996) says that Harvester has also assigned to each team a coach who plays a very important part in the employee development. The task of the coach is to give the support, advise, training, and development necessary to enable the team to fulfill its role as well as put into practice the concept of continuous development. Each coach is carefully selected and trained for his or her work and has continual close support from Harvester’s central training team.
There were short and long term tangible and intangible benefits which were derived from the initiation of changes to the management style, culture, and structure. Turnover has fallen by 19 percent. Wage and administration costs were reduced. There was also a noted low level of customer complaints. Problems were resolved more quickly without resorting to the manager. The cultural context of the organisation was moving to a trust-based culture. Within the limits set, individuals were trusted to do their jobs without constant and close supervision.
The reorganisation has led to improvements in the communications process. Team members liked to know how they were doing. They seemed to take personal interest and pride in the unit’s performance (Ashness and Lashley, 1995). They began to value their contribution to the team.
In terms of conflict resolutions, problems can easily be locally settled and decided immediately just as they arise. This has helped Harvester channel much needed resources for team building activities and other skills enhancements programs.
In analyzing the management structure, culture, and style of Harvester Restaurants, it is clear that the management of organisations today does not solely lie on senior managers’ decision making prowess but also on the involvement of the other significant members of the lower and middle levels of the organisational hierarchy. Sometimes, the higher the number of management layers, the more likely that problems and solutions cannot be communicated on quickly enough. Given today’s competitive atmosphere, the need to make quick decisions and communicate problems faster can spell success or failure for the organisation. The key to sustaining competitiveness rests on having every member of the organisation involved in the decision-making process, having a management approach and management style which is similar to autonomous teams and empowerment, and having a leadership style capable of building local team loyalties while securing their commitment to the overall goals and visions of the organisation. It may be a risky proposition but it is better to live in an organisation that has a trust-oriented culture, where members value the service and information they share to the organization than in an organisation that controls and filters everything. The changes that took place at Harvester Restaurant’s management setup and the corresponding success that came with it proves that change strategies are slowly being influenced by the need to develop small teams which can foster better teamwork and provide avenues for continuous learning and sharing of information. If an organisation has the right structure and right management style, then the best people will ultimately shine and commit themselves invaluably and weak spots will eventually be discovered.
- Cane, Sheila (1996), Kaizen Strategies for Winning Through People, Pitman Publishing, London.
- Duck, J (2001), The Change Monster, Crown Business, New York.
- Handy, C (1993), Understanding Organizations, Harmondsworth, Penguin.
- Harvard Business Essentials, (2003). Managing Change Transition . Harvard Business Press.
- Johnson, G. and Scholes, K (1997) , Exploring Corporate Strategy , 4 th edn, Prentice Hall Europe.
- Electronic Sources
- Mcnamara, C (n.d), Basics =Definitions (and Misconceptions) About Management,
- Retrieved: March 4, 2006 from Mcnamara, C (n.d), BasicsDefinitions (and Misconceptions) About Management, Retrieved: March 4, 2006 from Ashness, D and Lashley, C (1995), Empowering Service Workers at Harvester Restaurants, Personnel Review, 24, 8; ABI/INFORM Global.
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Essay on Management: Top 9 Essays
Here is a compilation of essays on ‘Management’ for class 9, 10, 11 and 12. Find paragraph, long and short essays on ‘Management’ especially written for school and college students.
Essay on Management
- Essay on the Importance of Management
1. Essay on the Introduction to Management :
Management is a vital aspect of the economic life of man, which is an organised group activity. It is considered as the indispensable institution in the modern social organisation marked by scientific thought and technological innovations. One or the other form of management is essential wherever human efforts are to be undertaken collectively to satisfy wants through some productive activity, occupation or profession.
It is management that regulates man’s productive activities through co-ordinated use of material resources. Without the leadership provided by management, “the resources of production remain resources and never become production”.
In the words of Drucker manager is the life-giving dynamic element in every business. Productive resources-men, money, materials-are entrusted to the organising skill, administrative ability and enterprising initiative of the management.
Modern business is the complex scene of forces of change constantly at work. The size, strategy, structure, motivation of modern enterprises underline the need of creative touch in successfully piloting their affairs. New products, new methods and techniques appear day-after-day to cater to the ever-changing trends of consumers’ tastes and needs. The ceaseless competitive drive to capture markets necessitates intellectual handling of refined requirements of consumers.
Management today is not just an exercise of blind authority or bossism but it implies scientific thinking, accurate planning and meticulous control to ensure quick and better results. Management has become a profession in view of the modern business becoming more sophisticated.
As ownership gets divorced from management, specialisation in business operations becomes more marked. Proprietors, shareholders and even their directors remain comparatively in the background and experts specialising in delicate and intricate matters of industrial techniques play increasingly positive and prominent role in running the business. Professional experts like engineer, scientist, market surveyor, trained executive, researcher, technician, occupy important place in running the affairs of an enterprise today.
Management now a days, therefore, consists of cadre of experts who performs a profitable job to build-up the competitive strength of the firm and they strive to “develop and expand the assets and profits” of the proprietors. According to Drucker, “Management, which is the organ of society specially charged with making resources productive, that is, with the responsibility for organised economic advance, therefore, reflects the basic spirit of the modern age.”
2. Essay on the Meaning and Definition of Management:
It is not an easy job to give the exact meaning of management.
Different writers have used the term “Management” in different senses, which will be clear from the following discussion:
Management as a Process :
In the words of George R. Terry, “Management is a distinct process consisting of planning, organising actuating and controlling performed to determine and accomplish objectives by the use of human beings and other resources.” The elements of management are: planning, organising, actuating (directing) and controlling.
These are also called the functions of management. It is through the performance of these functions that management is able to effectively utilise manpower and physical resources such as capital, machines, material, etc. to produce goods and services required by the society.
This has been shown in Fig. 1:
Henri Fayol has defined management as a process consisting of five functions: “To manage is to forecast and plan, to organise, to command, to coordinate and to control.”
However, modern authors do not view coordination as a separate function of management. They consider it as the essence of managing. Koontz and O’Donnell have classified the functions of management as follows: planning, organising, staffing, directing and controlling. These functions are inter-dependent and interrelated. There is no fixed sequence of their performance. They are performed more or less simultaneously.
Management is regarded a process because it involves a series of functions as shown in:
It starts with planning and ends with controlling. But it does not mean that managerial functions are followed in a specific sequence. A manager performs all the managerial functions simultaneously. Moreover, Management is a never-ending process.
There are three features of management as a process:
(i) Management is a social process as it deals with human beings.
(ii) Management is an integrating process as it organises human resources for the efficient use of other resources like capital, materials, technology, machines, etc.
(iii) Management is a continuous process. It is always involved in identifying the organisation problems and solving them.
“Management is the technique of getting things done.”
“Management is the art of getting things done.”
Marry Parker Follet defined management as “an art of getting things done through others”. This is a traditional definition of management. It emphasises that management directs the workers for getting results from them and supervises their performance. The workers are treated merely as a factor of production like materials, machines and capital.
This definition is insufficient in the modern world because of the following reasons:
(i) The above definition is incomplete because workers are treated as a mere means to organisational goals.
(ii) The management tries to manipulate the behaviour of the workers.
(iii) The needs and aspirations of the workers are not considered.
People are not mere cogs in the wheel and so they should not be treated as commodity or mere means to certain ends. Needs and aspirations of the people working in an organisation should not be overlooked. They must be satisfied so as to obtain sustained and consistent effort towards organisational objectives.
Management may be defined as a technique of getting things done through others by satisfying their needs and providing them opportunity for growth and development. According to Harold Koontz, “Management is the art of getting things done through and with people in formally organised groups. It is the art of creating environment in which people can perform as individuals and yet cooperate towards attainment of group goals.”
In order to accomplish results, management must create opportunities, and encourage growth and development of employees and provide guidance and assistance, wherever necessary. All this demands skillful application of the basic principles of the science of management. Managers must have conceptual, technical and social skills in translating the abstract organisational philosophy into concrete action.
Management is the dynamic life-giving element in every organisation. It is the activating element that gets things done through people. It provides the force necessary to transform the resources of a business organisation into desired goods and services. The primary job of management is to convert the disorganised resources of men, machines and materials into a productive organisation.
Management as a Group :
In the words of sociologists, management is a group or a class who together carry out various managerial activities.” Thus, management refers to the group of people in an enterprise who are carrying out management functions.
In other words, all individuals occupying managerial positions are collectively known as management. A manager is a person who performs the managerial functions of planning, organising, staffing, directing and controlling.
Since a manager performs the managerial functions, he is a member of the management of the organisation. Used in this sense, management includes all those who manage the affairs of an organisation. But in practice, the term ‘management’ is used to indicate the top management consisting of chairman, managing director or chief executive and Board of Directors.
Management as a Discipline :
As a discipline, management refers to the body of knowledge and a separate field of study. Management is an organised body of knowledge which can be learnt through instructions and teaching. It entails the principles, practices, techniques and skills of management which help in achieving organisational objectives. This discipline is taught widely in schools and colleges in most of the countries of the world.
Management has acquired the status of a discipline because of the following two reasons:
(i) A lot of research is being carried out by the scholars in the field of management. The results of research will be useful for future managers.
(ii) It is a specialised body of knowledge, which is studied and practised in management institutions.
Management as an Activity :
Management is an activity concerned with getting things done through people and directing the efforts of individuals towards a common objective. In the words of Harold Koontz, “Management is the art of getting things done through and with people in formally organised groups.”
Management gets results from the people by satisfying their needs, and expectations, and providing them opportunity for their personal growth. Management is a distinct activity in any organisation which is necessary for the achievement of its objectives.
According to another functional classification management activities are classified as:
Classification of Management Activities
1. Informational Activities:
Management has to act as a communicative link between subordinates and superiors. On one hand management receives, requests explanations, statements and suggestions from their subordinates and on the other hand it also receives orders and instructions from superiors. In their informational role as managers the requisite information is passed on to both subordinates and superiors.
2. Decisional Activities:
Management being both administrative and executory has to take routine and strategic decisions regarding various operational activities so that the organisation work is executed smoothly. In their decisional role as managers, management can also be termed as innovators, resource allocators, negotiators and crisis managers.
3. Inter personal Activities:
Management being a team work and group activity requires cooperation, coordination and harmonious relationship between individuals and departments. In order to integrate and charrelise best efforts of individuals to attain predetermined objectives of the enterprise, managers in their interpersonal role act as a figure head of the enterprise, as a leader and as a liason.
Other Definitions of Management:
Various writers have given various definitions of the management.
The following are some of the important definition:
According to E.F.L. Brech, “Management is the process of planning and regulating the activities of an enterprise.”
According to Lawrence A. Appley, “Management is the development of people and not the direction of things management is personnel administration.”
According to Koontz and O’Donnell, “It is the task of manager to establish and maintain an internal environment in which people working together in groups can perform effectively and efficiently towards the attainment of group goals.”
According to Kimball and Kimball, “Management embraces all duties and functions that pertain to the initiation of an enterprise, its financing, the establishment of all major policies, the provision of all necessary equipment, the outlining of the general form of organisation under which the enterprise is to operate and the selection of the principal officers. The group of officials in primary control of an enterprise is referred to as “the management.”
According to William Spriegel, “Management is that function of an enterprise, which concerns itself with the direction and control of the various activities to attain the business objectives.”
According to Keith and Gubellini, “Management is the force that integrates men and physical plant into an effective operating unit.”
According to S. George, “Management consists of getting things done through others. Manager is one who accomplishes the objectives by directing the efforts of others.”
According to Newman, Summer, Warren, “The job of management is to make cooperative endeavour to function properly. A manager is one who gets things done by working with people and other resources in order to reach an objective.”
3. Essay on the Characteristics of Management:
The main characteristics of management are as follows:
(i) It is Goal-Oriented:
The important goal of all management activities to achieve the objectives of a business concern. The objectives of the business may be economic, social and humane.
(ii) It is a Process:
When it is used in the sense of a process, it refers to what management does. In other words, it refers to the process of managing, planning, organising, staffing, guiding, directing supervising and controlling.
(iii) It is a Group Activity:
For the success of a business, it is necessary that all human and physical resources are co-ordinated to achieve the maximum levels of productivity. We all know that the combined productivity of various resources will always be higher than the total productivity of each resources.
(iv) Management is Universal:
It is required in all types of organisations, e.g., family, club, university, government, army, business. The basic principles of management are applicable in business as well as in other organisations. However, these principles are flexible and they can be modified to suit different situations.
(v) It is an Art and Science:
It consists of both the elements of science and art. The science of management gives a body of principles or laws for guidance in the solution of specific management problems and objective evaluation of results. The management as an art consists of this use of skill and effort for producing desirable results or situations in specific cases.
(vi) It is a Factor of Production:
Not only the land, labour and capital are of effective use for the production of goods and services but the managerial skills are also used effectively for this purpose.
(vii) Management is Dynamic:
Management denotes is an ever-changing environment, It involves adoption of an organisation to changes in its environment, and modifying the environment for the benefit of the organisation. Therefore, management is a constantly growing process.
(viii) Management is a Profession:
Management is considered to be a profession as it possesses all the attributes of profession as:
(i) A systematic corpus of knowledge,
(ii) A period of apprenticeship, and
(iii) A code of conduct.
(ix) Management is an Important Organ of Society:
Management has become an important organ of society. Management of large scale undertakings influence the economic, social, moral, religious, political and institutional behaviour of the members of the society.
(x) It is a System of Authority:
In every organised group supreme authority must rest somewhere. There should be a clear line of authority from the supreme authority to every individual in the group.
4. Essay on the Nature of Management:
A study of literature of management often gives rise to a question as to whether management is a science or an art. The brief discussion which follows leads us to the conclusion that it is both a science and an art.
Management as a Science :
Science is by definition a body of knowledge gathered by experimentation and observation, artificially tested and expressed in the form of general principles.
Following are the essential features of science:-
1. Systematised Body of Knowledge:
Science being ‘systematic’ is based on cause and effect relationship. It consists of theories and principles which have the capacity to give reasons for past happenings and at the same time, can be used to predict the result of specification in future.
2. Scientific Methods being used:
Personal opinions and individual likes and dislikes don’t influence scientific principles. They are obtained through scientific investigation and reasoning. They are critically tested and can be scientifically proved at any time.
3. Principles based on Experiments:
Observation and testing the validity and truth through experimentation makes a statement, a principle.
4. Universally applicable:
Scientific princAples may be applied in all situations and at all times, exceptions though may be logically explained. These principles, under required given conditions never fail at any place or point of time.
The debate about whether or not managing is a science continues. The answer to this question depends largely on the degree to which the scientific method is used to determine managing principles and solve managing problems.
Management satisfies many of the scientific principles, for e.g.:
1. Management is a systematised body of knowledge. Its principles explaining cause and effect relationship between various variables, e.g., Principle of Unity of Command if not followed leads to inefficiency, confusion and duplication of work.
2. Management principles are evolved on the basis of observation and repeated experimentation. For instance, it is being observed through experiments that if stability in tenure of an employee is not there, his working efficiency decreases.
But, at the same time, there exists many scientific features which do not coincide with those of management.
Briefly, the method of science consists of the following steps:
1. Facts or data are collected in an objective manner.
2. These facts are classified in some way, usually on the basis of similarities or dissimilarities, in an attempt to make the data more meaningful.
3. From the classifications, hypotheses are formulated establishing cause and effect relationships between various given factors.
4. The hypotheses are then tested to determine their reliability and validity.
5. After the hypotheses are verified and if they stand the test of time, they then have interpretive or predictive value when applied to similar phenomena.
In referring to the hope of dream that a true science of management may someday be achieved. Professor Mee states, “This hope probably will be realized in another chapter in another book in another century.” Perhaps the best that can be said is that a science of management is just beginning to emerge.
It has often been stated that even when management attempts to use the method of science (from which managing principles are also derived), management is neither as precise nor as comprehensive as the natural and social sciences.
There are several reasons why this is true:
1. The rational approach and the application of the method of science are relatively new in business and industry. As a result, managing has not developed the comprehensiveness found in other disciplines that have used the scientific approach for a much longer time.
In fact, one of the more significant developments in the last seventy-five years in the field of management has been the tendency toward using the rational approach in solving management problems.
2. Relatively few managers are trained or experienced in using the method of science. Those who are trained may find it too time-consuming and, because of this as well as other limiting factors, seek other ways to reach decisions and to solve problems.
3. Precision measuring instruments and tools are not always available in management. A manager is forced to use relative measurement where absolute measurement is not possible or feasible. To evaluate the performance of a group of supervisors, for example, he may have to use a relative measuring device such as a carefully prepared rating scale. For his purposes, however, the relative measuring technique is just as useful and effective.
4. In the physical sciences, the researcher works with a single variable, holding all other factors constant. Managers can seldom do this. They almost always deal with people, the human element with all its weaknesses. The human element can never be treated as a constant; hence precision is less than in the physical sciences, though equal to that of the social sciences. Businessmen are always dealing with the unpredictable: people, governments and nature.
5. Most importantly, managerial decision-making, unlike problem solving in the sciences, stresses action rather than truth. A manager’s decisions must have practical application. Managers strive for reasonable results under uncertain conditions rather than for perfection. A method, technique, or device only has to be “good enough” to get the job done.
Management as an Art :
Art refers to the skill to put into action a systematized body of knowledge for the achievement of a given task. To get mastery in any skill it is necessary to have the thorough knowledge of the principles of doing the particular task. At the same time it is necessary to possess the tact, the care to be taken, the discretion and proper judgement in applying the principles involved.
Presence of mind, promptness to react to the given situation and correct response demanded by the prevailing condition are all essential to perform skillfully the task undertaken.
Experiences and judgement add to this skill. Management is also an art as it is necessary to apply the principles of management in planning, organising, staffing, directing and controlling the whole series of activities all through the managerial process.
Throughout the stages of the process of decision-making and execution of these decisions all the individuals occupying various positions at different levels of management need all the skills involved.
Briefly, these skills are called the planning skills, the organising skills, the staffing skills, the directing skills (how to motivate, to communicate, and to lead) and the controlling skills. Sometimes it is said that a good manager is born and not made. But it has been now established and accepted that it is through learning and training process that skilled managers are developed.
As Koontz and O’Donnell have rightly pointed out the work of managing a business or any group activity is an art. But for this the organised body of knowledge is required. It is certainly a science. Thus art and science are not exclusive terms but complementary ones.
Management as an art has the following features:
(a) Personal Skill:
Human beings apart, there are other factors which vary in their effect and role in the achievement of the managerial tasks. Managers have to apply their skill to deal with them.
(b) Practical Knowledge:
Business enterprises involve risks. Only those who have experience can deal effectively with such risks.
(c) Result Oriented Approach:
Management as an process aims at achieving concrete goals. It aims at utilising available resources optimally by creating a congenial atmosphere.
(d) Personal Judgement:
No doubt there are useful principles of management, but it needs individual judgement to apply them properly and at appropriate time. It means art is necessary.
(e) Continuous Practice:
The art of management is much older than the science of management which as an organised body of knowledge is hardly about ninety to hundred years old.
Management: Both Science and Art :
Management is a combination of an organised body of knowledge and skillful application of this knowledge. According to Brech, “A systematic body of knowledge underlies the competent practice of management”.
Much of this knowledge are to be found in various academic disciplines. Competent performance of various management functions necessarily needs an adequate basis of knowledge and a mature scientific approach.
Thus management is both a science and an art. It is a science because it uses certain principles. It is an art because it requires continuous practice to ensure the best possible result. Thus science and art in management are not mutually exclusive. Both of them exist together in every function of management.
Management as a Profession:
Profession is defined as a composite of intellectual and executive qualities applied to carry out successfully the specified activities for the benefit of others. It is an intellectual field. One enters into it to work without any expectation of a direct share in the profits earned out of the activities to carry out which one might be contributing his specialist knowledge or intellect.
According to George, “Profession is that which has a well-defined body of knowledge, which is learned, intellectual and organised, to which entry is restricted by examination, or education and which is primarily concerned with service to others above self-award.”
Features of Profession:
The above statement makes the following features of profession clear:
1. Existence of a body of knowledge, techniques, skills and specialised knowledge.
2. Formalised methods of acquired training and experience.
3. The establishment of a representative organisation with professionlisation as its goal.
4. The formation of an ethical code for the guidance of its conduct.
5. The charging of fees based on the nature of service extended.
In the light of what has been said above management can be said to be a profession.
The arguments in favour of this statement are given below:
1. Body of knowledge:
All over the world there is marked growth of an organised systematic body of knowledge about management as a process.
2. Formal methods of teaching:
The establishment of professional schools of management in which management as a body of knowledge can be taught is seen everywhere. India is no exception to it as is clear from the establishment of Indian Institutes of Management at Ahmedabad, Calcutta, Bangalore, Lucknow and Postgraduate Departments of Management as well as Institutes/Colleges of Management being established in different parts of the country.
3. Fee as remuneration:
The number of management consultants is increasing Even a large number of well reputed firms are establishing their consultancy agencies.
4. Existence of ethical code:
There is growing emphasis on the ethical basis of management behaviour.
5. Establishment of representative organizations:
Both at the national and international levels management associations have been formed with their membership rules, codes of conduct, etc. All India Management Association, New Delhi.
National Institute of Personnel Management, Calcutta, Institute of Marketing and Management, Institute of Chartered Accountants of India, New Delhi, Institute of Costs and Works Accountants of India, Calcutta are the well established associations in India. And many more organisations in the specialised fields/ branches of management are being organised.
Management as Profession: A Controversy :
However, there is no agreement on this point. Questions are asked: Is management a profession? Is it becoming a profession? As it is well known, a large number of business units are operating as sole traders and single entrepreneurship enterprises. By definition and in practice they are managed by proprietor-managers. So is the case with partnership firms and joint Hindu family firms.
But company form of business enterprises in India and corporate organisations in USA and other countries are even by definition the enterprises in which ownership is divorced from management. Even then question remains if all of them are managed by professional managers. As things stand, under law it is the shareholders who elect the Board of Directors from amongst themselves.
Thus the topmost group at the top level management of a company or corporate body are not professional managers. But all the big companies operating on large scale do appoint executives and managers on salary-cum-perks basis. Thus they are the professional managers.
In large companies even the Vice Presidents of marketing, finance, etc. who are on the Board of Directors are the professional managers. So are all those working at the middle level and lower level of management. In case of public undertakings management is in effect with the professional managers. Exceptions to it are Departmental Undertakings such as Railways. Posts & Telegraphs etc. which are controlled by the various departments of the Government.
But there also other than the Minister-in-charge all those looking after the management are professionals. A new trend is becoming more and more marked. Proprietary managers are becoming more interested in acquiring the latest knowledge and technique of management. They are sending their own sons, daughters and other close relatives abroad to acquire degrees and diplomas in management.
Others are joining short- term courses in management run by organisations like Administrative Staff College, Hyderabad. All India Management Association etc. Such persons are now occupying positions at the topmost layers of the managerial hierarchy.
Are these persons to be regarded as proprietary managers or professional managers ? No doubt all the features of profession are not applicable to them. But they do possess other features.
In conclusion, it may be said that all the requirements of profession are not satisfied by managers at the top. But management is, by and large, becoming professionalised, it is more so in the developed nations. But even in India large number of managerial cadres are getting professionalised.
This is applicable to both the public and private sectors. Even the case of smaller enterprises, which are run by proprietary managers, assistance of professionals such as chartered accountants, cost accountants and lawyers are being utilised to a great extent.
5. Essay on the Objectives of Management:
Objectives can be divided into three categories: Individual, Social and Organisational. Recognising the three categories and reacting appropriately to each is a challenge for all modern managers.
(I) Individual Objectives :
Individual objectives are the personal goals each organisation member would like to reach through activity within the organisation. These objectives might include high salary, personal growth and development, peer recognition, and societal recognition.
(II) Social Objectives :
Social objectives deal with the goals of an organisation toward society. Included are obligations to abide by requirements established by the community, such as those pertaining to health, safety, labour practices and price regulation.
Further, they include goals intended to further social and physical improvement of the community and to contribute to desirable civic activities.
It should be noted that most business houses in achieving their primary goals also contribute to their respective communities by creating needed economic wealth, employment and financial support to the community.
(III) Organisational Objectives:
Drucker indicates that the very survival of management may be endangered if managers emphasize only a profit objective. This single-objective emphasis encourages managers to take action that will make money today with little regard for how a profit will be made tomorrow.
In practice, managers should strive to develop and attain variety of objectives in all management areas where activity is critical to the operation and success of the system. Following are the eight key areas in which Drucker advises managers to set management objectives.
1. Market Standing:
Management should set objectives indicating where it would like to b£ in relation to its competitors.
Management should set objectives outlining its commitment to the development of new methods of operation.
Management should set objectives outlining the target levels of production.
4. Physical and Financial Resources:
Management should set objectives with regard to the use, acquisition and maintenance of capital and monetary resources.
Management should set objectives that specify the profit the company would like to generate.
6. Management Performance and Development:
Management should set objectives that specify rates and levels of managerial productivity and growth.
7. Worker Performance and Attitude:
Management should set objectives that specify rates of worker productivity as well as the attitudes workers possess.
8. Public Responsibility:
Management should set objectives that indicate the company’s responsibilities to its customers and society and the extent to which the company intends to live up to those responsibilities.
6. Essay on the Levels of Management:
More of the authors have conceived of three levels of management in any fairly-sized business undertaking.
These are as follows:
1. Top Level Management
2. Middle Level Management
3. Lower level Management
Management is considered as a Three-tier activity. The top tier centres round the determination .of objectives and policies, the middle tier concerned with implementation of policies through the assistance of lower tier of the organisation.
The various tasks in a business enterprise “become structured somewhat like a pyramid, with the highest level of management centred at its apex”.
The managerial set-up of any undertaking, therefore consists of three levels – Top Management, Middle Management and Operating Management or Lower Level Management.
The following chart illustrates Levels of Management in a company form of enterprise of fairly large size:
This gradation of level of management is not a watertight arrangement but represents a hierarchy of authority and responsibility designed to secure a systematic sequence of operations. Each level is blended into another through its functions and all the layers of authority constitute an integrated arrangement.
The demarcation of the levels is only to analyse the range of responsibility and span of control and it underlines the principle of specialisation in administrative executive processes.
A. Top Level Management:
Top level management is made up of Board of Directors, its Chairman, Managing Director or General Manager and other key officers responsible for smooth and systematic conduct of the affairs of the enterprise.
The top level management is a concept of functions concerning the manner in which the enterprise should be shaped.
In view of large size of modern companies, the key functions cannot be performed by a single person, and hence a compact group of elected office-bearers, experts and executives form the top management level of enterprises these days. Board of Directors is assisted by Managing Director, General Manger etc. in directing the company’s operations.
Top level management’s work is a creative process and it also involves commitments of high order of responsibility. As Allen observes “top-management work is a work which must be performed at the apex of the organisational pyramid because it cannot be carried out effectively at lower levels.”
Top management is also described “as the policy-making group responsible for the overall direction and success of all company activities.” It is a chief custodian of the property of the enterprise. It is the main mobiliser of resources in men and materials essential for the inception, maintenance, operations and expansion of the undertaking.
It is more basically a panel of planning the company’s operations and in due course shall develop into an evaluating and controlling medium for securing the maximum possible performance. It is concerned with the problems and policies of the entire enterprise.
The functions of top management include:
“Identifying key factors for the survival and growth of the company and devising basic objectives, policies and programmes for dealing with these factors: being sensitive to the inter-dependence of the numerous actions and maintaining a strategic balance in these actions; and keeping an eye on how current activities of the company will cutting with predicted changes-social, political, technological and competitive-and adopting company plans to the anticipated environment.”
Functions of the Managers at the Top Level Management :
The fundamental functions of mangers of the top management may be classified into the following categories:
(1) Determining the objectives.
(2) Framing the policies and making plans to carry out the objectives and policies.
(3) Setting up an organisational framework to conduct the operations as per plans.
(4) Assembling the resources needed to put the plans into operation.
(5) Controlling the operations through organisation.
1. Determining the Objectives :
Objectives are goals which every enterprise seeks to achieve. Most of the companies describe in detail the nature of their activities in the objects clause of their Memoranda of Association. But by and large the general objectives which top management should aim at are survival, profit, business growth, prestige or status and social acceptance.
Production of particular product of specific quality, satisfaction of customer’s needs, earning of profit by production and sales, looking out for expansion and diversification of business, building up an image or reputation of the company in the eyes or estimation of the society are the broad objectives set up by top management.
Objectives also may be specific. They relate to types of activities. Specialty in workmanship, competitive pricing, marketing method, widening the area of sales abroad, relations with the workers, customers, public, government, etc.
2. Framing of Policies :
The objectives are realised through policies framed by the management. Policies signify the decisions taken by the management on different strategic aspects of company’s operations or activities.
Production policy indicates the schedules of production to meet the market demand.
Product policy lays down the standards, specifications, size, design, colour shapes etc. of the product.
Marketing policy describes the channels of selling the product (direct sale or dealership, agency etc.), advertising and sales promotions techniques to be adopted, the sales targets to be attained etc.
Pricing policy emphasises the quality aspect of the product as well as the comparative competitive nature of the rates quoted, discounts allowed etc.
Personnel policy deals with recruitment, placement, training, remuneration, promotion, rewarding and regulating the productivity of the personnel.
Financial policy is concerned with procuring funds required for investment in fixed assets or required to be held over for working capital needs, sources of finance, e.g., borrowing, self-financing, issuing additional capital etc.
Top management has also to devise plans and schemes for precise execution of policies within a given time. Plans set out the course along which operations in different departments are to be conducted as per the criteria laid down in the respective policies.
production schedule, sales campaign, financial arrangements, personnel motivation have to be drawn as to focus and guide the activities of the company in the direction of the realisation of the basic objectives.
Organisation means division of functions, allocation of duties to the personnel, fixation of range of their responsibility and the scope of their authority and coordination of the activities of the departments of the undertaking. Standardisation of administrative procedures is the main task of organising the enterprise.
Systems and procedures are the methods intended to govern the departmental activities of a company. Organisation ensures smooth flow of work from one stage to another, or from one department to another, so that the whole undertaking is enabled to achieve the targets to the benefit of the company and satisfaction of customers.
4. Assembling the Resources:
Prior to the launching of the plans, the resources of money, men and materials have to be assembled. Executives and operatives are appointed after careful selection on the basis of their merits and the nature of jobs to be handled.
Money capital has to be raised through issue of shares, debentures, etc. and arrangement for working capital has to be made through reserves, bank advance etc.
Then the physical resources-machinery, tools, furniture, buildings, water supply, power, other ancillary equipment-have to be collected as per estimated needs. The management has to find out the sources of finance for implementing the plans and programmes.
5. Controlling :
Top level management does not directly execute work. But the Chief Executive in the top management has the responsibility of exercising supervision over all the departments to make sure that the middle and lower managements are functioning as per the plans.
By controlling we mean instituting checks or comparisons of actual results with the planned targets. It implies evaluation or measurement of the work turned out in each section or department with reference to the goals envisaged in the basic plans and policies of the company.
The top level management lays down the standards of performance for the purpose of comparison of the actual results with the planned performance. Standard cost per unit, sales quotas, net profit per unit of sales are some of the reliable criteria for comparison.
Top level management finds out to what extent the performance has been upto the mark and identifies in the course the sources of strength and weakness in the different phases of organisation and operations.
Top level management has to act as coordinator and regulator of the activities of the undertaking in its different dimensions. It will call for reports, statistical data, special studies, accounting records to know the position of performance and to apply regulatory checks wherever and whenever necessary.
B. Middle Level Management:
Middle level management is concerned with the task of implementing the policies and plans chalked out by the top management. Middle management comprises departmental heads and other executive officers attached to different departments.
These departmental managers and officers are expected to take concrete steps for actual realisation of the objectives and operational results visualised in the plans finalised by the top officers of the organisation. “This group is responsible for the execution and interpretation of policies throughout the organisation and for the successful operation of assigned division or departments.”
Managers at the middle level management level exercise the usual functions of management in respect of their own departments. They have to plan the operations, issue instructions to their assistants, collect the resources required and control the work of the men under them and evaluate the results achieved by their department with reference to the plans formulated by the top management.
If the top management is endowed with the authority of policy-making, middle management is entrusted with the programming of efforts essential for implementing the basic pre-determined policies.
Functions of Managers at the Middle Level Management :
The functions of the managers at the middle level management can be broadly summarised as follows:
(i) Interpretation of policies framed by top level management.
(ii) Preparing the organisational set-up in their departments for fulfilling the objective implied in various business policies.
(iii) Finding out the suitable personnel and assigning duties and responsibilities to them for the execution of the plans of the concerned departments.
(iv) Compiling detailed instructions regarding operations and issuing them to the assistants and operatives to focus and guide their efforts accordingly.
(v) Motivating the personnel for higher productivity and rewarding them for their merit, capacity or calibre.
(vi) Cooperating with other departments so as to evolve a smoothly functioning organisation.
(vii) Collecting reports, statistical information and other records about the work turned out in respective departments and forwarding the same with their observations to the top level management.
(viii) Recommending to the top management, new or revised policies for their departments to secure better performance.
Middle level management managers are responsible for all the leading functions within each department. They provide “the guidance and the structure for a purposeful enterprise”.
The top management’s plans and ambitious expectations cannot be fruitfully realised without the key officers at the middle level management.
Managerial Structure at the Middle Level Management :
Generally the following functions at the middle level management are performed through the various departments under the departmental managers or heads.
1. Production department headed by works manager is concerned with the following functions:
(i) To collect the work orders and issue them to concerned sections.
(ii) To guide the foremen, and prescribe methods and process to be followed in execution of the work allotted.
(iii) To devise a system of inspection of factory functioning, the components, semi-finished and finished products.
(iv) Assembling the tools, equipment, plant, qualified personnel etc. to execute the production’s plan.
(v) Controlling the factory expenses.
2. Engineering Department headed by chief engineer has to perform the following functions:
(i) Production-planning, routing, scheduling.
(ii) Plant layout suited to the execution of production plans.
(iii) Designing the products, their specifications, standards, quality, workmanship etc.
(iv) Research in methodology of production for improving technical efficiency.
(v) Plant and tools maintenance and development of the full capacity of production.
(vi) Economy in production costs and resource consumption.
3. Personnel Department:
It is headed by the chief personnel officer, labour officer. He has to devise selection procedure and training schemes: he has to maintain service records of the staff and formulate methods of remuneration in conformity with the productivity and cost of living. He has to assure wholesome working conditions to the personnel and look after their social and economic security and welfare.
4. Stores Department headed by stores manager is concerned with systematic organisation of purchasing raw materials, stores articles, tools, equipment, spare parts, etc. and proper custody of the materials with the responsibility of issuing them to the requisitioning departments.
He has to sort and arrange neatly the stockpile of materials etc. and keep an up to date record of materials, stores, tools, etc. received, issued, consumed, balance held in stock, etc.
5. Office Manager is in-charge of secretarial work of correspondence, filing, indexing, use of office appliances, maintenance of records and reports pertaining to the different departments.
6. Accounts Department:
The chief Accountant is responsible for maintaining up-to-date accounts of financial transactions and recording sales, purchases, receipts and payments.
He is also required to compile periodically the Trading Account, Profit and Loss Account and Balance sheet of the firm.
He should ensure that monthly financial statements indicating the position of the firm are placed before the Board and other top management officials.
7. Costing Department:
In bigger enterprises a separate department for costing is constituted and cost accountant is appointed to administer the functions of the section.
Costing department is entrusted with the main functions of ascertaining the prime and supplementary costs and submission of cost-sheets to the top level management for appraisal.
Costing department keeps detailed records of costs of completed jobs in progress, costs of materials, labour, factory overhead costs and sales on cost. It helps the management to find out the disparity between estimated costs and actual costs and the reason thereof so that remedial measures can be adopted.
8. Sales Department:
This section is the life-blood of the enterprise because the sales are the barometer of business profits and reputations of the firm. The work of the department is to create demand for the goods for promoting maximum possible sales at quick pace in wider markets.
The vital functions of the department are as follows:
(i) Market research to find out the needs, tastes and buying habits of the consumers.
(ii) Looking out for new markets for the goods.
(iii) Organising advertisement campaigns and other sales promotion activities for creating, maintaining and expanding the demand.
(iv) Collecting orders from the customers through agents, dealers or salesmen.
(v) Executing the orders by timely despatch of goods.
(vi) Supervision of salesmen’s efforts, training and stimulation of salesmen.
(vii) Organising after-sale service and similar sales promotion efforts.
(viii) Looking after proper warehousing, packing and despatch of goods.
(ix) Attending to customers’ complaints and suggestions.
C. Lower Level Management (Operating Management) :
It is described as the lowest level in the administrative framework and actual operations are the responsibility of the rank and file constituting this level of management.
Foremen, supervisors and sub-departmental executives assisted by a number of workers, clerks etc. carry out the actual operations as per schedule. Their authority and responsibility is limited and they have to follow the lines drawn by the higher levels of management.
The plans and policies of the top level management will fail if the foremen and operatives do not fully realise the spirit of sustained work. The quality of the workmanship and quantity of output will depend on the hard labour, discipline and loyalty of the operating personnel. The foremen or supervisors are responsible for executing the work orders allotted to their respective sections.
They pass on the instructions of middle level management to the working force, procure the materials, tools etc. required for the jobs, assign specific duties to individual workmen and guide them in acting upon the instructions and handling the job on hand with ability and accuracy.
They seek to maintain precise standards of quality, prevent wastage of materials by negligent workmen, look to the safety of machines and equipment and ensure steady flow of output as per plans and programmes prescribed by the top level and middle level managements.
They are also responsible for maintaining discipline among the respective batches of workers, preserving and boosting their morale and fostering the team spirit in them.
7. Essay on Theo Haimann’s Three Notions about Management:
According to Theo Haimann management is used in three different senses:
(i) It is used as a noun. It refers to the group of managerial personnel of an enterprise.
(ii) It refers to the processes of managing, planning, organising, staffing, guiding, directing, supervising and controlling.
(iii) It is used apart from the above two—personnel and activity- but it describes the subject, the body of knowledge and the whole practice, the discipline.
I. Management is an art of getting things done through other people :
It is a process of activity consisting of some basic techniques for getting the objective of an enterprise fulfilled through the efforts of people. It is the activating element in any concern for getting things done through people. But today it is thought to be against humanity. At present: “It is the art of getting things done through and with the people informally organized groups.”
The job of management is to give active leadership that unites the productive but passive resources into a fruitful organization.
As per E. Peterson and E.G. Plowman:
“It is a technique by means of which the purposes and objectives of a particular human group are determined, clarified and effectuated.”
As per E.F.L. Breach it has been said as:
“A social process entailing responsibility for the effective of efficient planning and regulation of the operations of an enterprise, such responsibility involving a judgement and decision in determining plan and using data to control performances and progress against plans. The guidance, integration, inspiration and supervision of the personnel comprising enterprise and carrying out its operations.”
Breach signifies that it is not possible to take management in relation to things or mechanical operations of machines but only in relation to the people who are employed to operate or use such things.
As per Prof. Harold Koontz it is:
“The art of getting things done through and with people informally organized groups. It is the art of creating an environment in which people can perform as individuals and yet co-operate towards attainment of groups’ goals. It is art of removing blocks to such performance, a way of optimizing efficiency in reaching goals.”
II. Management is what management does:
The three functions of management are:
(ii) Implementing, and
Planning includes formation of policy and its translation into plans. Implementing includes the execution. Controlling means exercising administrative control over the plans.
In the words of Dr. James Lundy:
“Management is principally a task of planning, co-ordinating, motivating and controlling the efforts of others towards a specific objective. It involves the combining of the traditional factors of production (land, labour and capital) in an optimum manner, paying dues attention, of course, to the particular goals of the organization.”
This definition includes three major management activities of:
(1) Planning is the ascertainment of the course or objectives of a business, division or department to attain maximum profit effectiveness, the establishment of policies and continuous seeking and finding out new and better ways to do things.
(2) Implementing seeks to the doing phases, after preparation of plans, personnel attend their jobs with training of motivation not do rightly. Activities must run to the planning, supervision and direction of the subordinates and at the same time groups efforts are coordinated.
(3) Lastly, controlling seeks to evaluate acts of those who are responsible for executing the plans agreed upon. It consists of: (a) Controlling adherence to plans (b) appraising performance.
III. Management is the development of the people:
Business is not the management of things. As Appley Lowrence puts it: “The development of people and not the direction of things.” It is the selection, training supervision and development of people. These days most of the large as well as medium-sized enterprises are managed by the professional managers i.e., the managers who have got either little or no share in the ownership of the enterprise. They take management as a career.
Mcforland has noted following characteristics of a profession:
1. A body of principles, techniques, skills and specialised knowledge.
2. Formal methods of acquiring training.
3. Laying down of certain ethical codes of guidance of conduct.
4. Charging of fees according to the nature of services rendered.
And management is truly a profession in the sense that it fulfills all these conditions. Management these days is very much a systematised body of knowledge (science) and is an identifiable discipline. It has also developed a number of its tools and techniques.
In India, now there are a number of management institutes and university departments imparting formal management training. But management still, at last so in our country, does not fulfill the last time requirements of being a profession. There is, for example, still no unified ethical code of conduct for the managers as is there for the doctors and lawyers.
8. Essay on the Functions of Management:
Various authors have given various functions of management according to the time and development of the management science.
All these can be classified into the following categories:
These functions of management have been discussed in detail in the following paragraphs:
It is deciding in advance what is to be done, how it is to be done and when it is to be done. Planning involves projecting the future course of action for the business as a whole and also for the different sections within it. It helps in bridging the gap between the present and the future.
Planning is possible whenever there is a question of choosing and planning process is possible only when alternatives are there. In fact planning is an intellectual process. It signifies use of rational approach to the solution of problems. The important aspects of planning process are defining and establishing objectives, policies, procedures methods, rules, budgets, programmes and strategies.
Organisation is the structural relationship in an enterprise between the various factors i.e., men, material and management which combine to achieve the objectives set by the enterprise. In a dynamic society like ours, the organisation is not fixed. If it does not promote the objectives of the enterprise, it must be modified.
Direction consists of command, execution, control, supervision and motivation i.e., achieving the good results. It is concerned with to use Lawrence H. Appley’s maxim “that management is essentially getting things done through the efforts of other people.”
It needs the personal touch. A good manager has to see that his orders are properly carried out and have achieved the desired results. It will need proper supervision by him and control of all the levels below him.
Moreover, his order must always create motivation among subordinates. It is only possible when his orders are of the right type and at the right moment. For it, more of initiative, sincere and tact is required than aggressiveness. A good executive must always be a good leader.
Co-operation permeates all operating organisations and makes their entire structure more effective by harmonizing and property timing the various activities. It means synchronising the activities of all persons and functions in the enterprise and rooting out personal prestige and vested interests.
Proper co-ordination presupposes a number of conditions which can be summed up as:
(i) Fixed responsibility
(ii) Adequate authority at each executive level
(iii) Organisational structure facilitating
This includes the setting of the targets or standards and comparing the actuals with standards in order to know the deviations, analysis and probing the reasons for such deviations, fixing of responsibility in terms of persons responsible for negative deviation, and correction of employees performance so that group goals, and plans devised to achieve them are accomplished.
9. Essay on the Importance of Management:
Management is absolutely essential if human efforts are to be effective to meet all round development of the society through productive activity, occupation or profession. It is essential in all organisations and at all levels of organisation in an enterprise. Without the enlightened guidance and leadership made available by management “the productive resources will remain resources and shall never become production”.
Management is a dynamic element which gives life to a business enterprise. The productive resources such as materials, men, and money are entrusted to the administrative ability, enterprising initiative and organising skill of management.
In short, management is important for the following reasons:
(i) Provides Effectiveness to Human Efforts:
It helps achieve better equipment, plants, offices, products, services, human relations. It keeps abreast of changing conditions, and it supplies foresight and imagination. Improvement and progress are its constant watch-words.
(ii) Critical Ingredient in Nation’s Growth:
An underdeveloped nation usually lacks adequate managerial know-how. National development is not solely one of transferring capital, technology, and education to citizens of an undeveloped nations. It is also supplying or developing management which provides the generation and direction of effective human energies. Management know-how utilizes the available resources effectively toward achievement of basic needs.
(iii) Brings Order to Endeavours:
By means of management, apparently isolated events or factual information or beliefs are brought together and significant relationships discerned. These relationships bear on the immediate problem, point out future hurdles to be overcome, and assist in determining a solution to the problem.
(iv) Provides Judgement and Courage:
To determine worthwhile goals, carefully select and utilize resources efficiently by means of applying planning, organising, directing and controlling require a high degree of judgement and the exercise of great courage.
From time to time, gadgets and aids are offered to replace management, but actually at best they assist and do not represent management. Serious consideration of such devices usually points out the need for more management judgement and courage to be used. Nothing takes the place of management.
(v) Helps in Achieving Group Goals:
Management touches and influences the life of nearly every human being. Management makes us aware of our potentials, shows the way toward better accomplishment, reduces obstacles, and causes us to achieve goals that we probably would not otherwise attain.
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Essay on Introduction to Production Management
In an organizational performance, there exist designs and structures that are keenly followed to ensure effective performance. The designs comprise of activities that are conclusive to production activities of the stated organization. Stakeholders, the board of management and personnel design the form in which the events are to occur in a particular manner following specific procedures and routine. The methods differ from one industry to another depending on the nature of the business or production organization at disposal. For instance, activities around a service industry completely vary from activities around product based industry. However, there exists a common uniform set of practices that apply to all sectors of both services based and outcome based. These include communication channels and network, leadership roles and skills, and Marketing practices within an organization. The paper aims at describing the management practices involved in planning, organizing, directing and controlling all production activities and whether the activities have relevance to the organization.
Production management involves all the activities manipulated during the process of converting raw materials into finished goods. According to Spenser, production management incorporates together all the six “M” that is Men, Money, Machines, Material, Methods and Market to satisfy human wants. Human wants infinity in nature hence the M’s are a scarce resource intending to satisfy the desires. Moreover, production management aims to enhance decision making regarding the quality, volume, value (cost) of production. It incorporates management principles to production.
Keywords: production management, Human wants stakeholders, organizational performance, communication, leadership, industry “M”.
Introduction to Production Management
During Business management, production is a crucial element in the organization. It is the production function of the organization hence the sole purpose of the business idea towards providing solutions to real-world problems while making profits in return. The main aim of production management is to enhance timely production of both goods and services, the right quality delivered to the target population at a suitable quantity in the right price (minimum cost). It also works towards improving efficiency which enables competition in the industry. Therefore, to ensure optimum utilization of available production capacities, it is vital to enhance steady production capacity.
Production management has adverse meanings according to different sources. According to Elwood Spencer, it handles decision making related to production processes so as the resulting goods or service is produced according to the specialties in the target quantity by the stipulated duration schedule of demand at the minimum cost.
Overview of Production Management
Intensive research is found in journals, textbooks, websites and scholarly publications on production management definition, the role of production management and the importance to the organization. It emerged from World War II and found its roots and entrance in the 1950s as a manufacturing subject as supported by the scientific innovations and basis at the stated period (Gao & Low, 2014). Hence the management of manufacturing is referred to as production management (Naqib, Stratyinski & Mohamed, 2013). On the other hand, the functions and roles (set of activities and practices) handling the operation of services as well as manufacturing and organizations are made under operations management which tends to be a comprehensive study reference as the focus is on production management.
During the error of manual production processes, human labor was the critical factor in the production activities. Production management deals with the direct production of the firm’s resources. The resources as classified into the class of five ‘P’ as people, plants, products, process, and planning and control (Gao & Low, 2014). That is, the people as the primary labor providers, the plants include the machinery and equipment that aid in the manufacturing of the goods and services (Naqib, Stratyinski & Mohamed, 2013). Products are the actual results of the production process where the input is converted into output. The method includes the activities carried around during the manipulation and conversion of goods and services into the complete desired product (Dr. Pattnaik & Mishra, 2016). Lastly, planning and control are the managerial and technical skills applied during the operations and the whole activities. Plan and power is the actual office work that involves around designing, planning, Budgeting for the process and the human resource role related like evaluation and accountability
Production principles and Functions
As defined by most scholars, production management comprises two significant functions. Production functions consist of the primary characters and requirements of the production process. The first principle is production; which is the actual manufacturing of goods at the desire and price of a willing consumer (Naqib, Stratyinski & Mohamed, 2013). Output as a process is governed by policies and principles as stated below.
First, converting designs into products at the lowest labor budget possible. Mostly, a production unit incorporates inputs- that is the raw materials required to be transformed into finished goods. The owners’ equity as referred to as capital which is the share of investment by the stakeholders that fund the business regarding labor and bills. The return of capital is profits to the shareholders. Information resources that provide marketing strategies, company overview and legal documentation that can be used for legal representation (Dr. Pattnaik & Mishra, 2016). Information may consist of the organizational address, mode of operation and other legal entities of the organization that can be used for reference (Gao & Low, 2014). Time as a factor enables the production to limit its activities to a target to avail consumer goods and services to the market on timely delivery (Naqib, Stratyinski & Mohamed, 2013). All of the stated factors of production enable organizations to transform them into the desired output that meets the needs of consumers. The products are of a higher quality that helps certify the needs of the consumers that the inputs were initially. Therefore, the conversion principle is a value-adding process.
The second principle is the operation nature of processes by people. As stated in the early 1950s, human labor was on surplus demand hence primary methods relied on the human operations to manipulate machinery. Up to today, despite the automation of services by robotics and software, human labor is still on high demand as the machine operators, programmers and machinery controllers still utilized (Naqib, Stratyinski & Mohamed, 2013). However, the rise of technology has competed for human work in productions and operations. Systems are automated to manipulate activities and create projects within the shortest time possible.
The last principle is the billing of manufactured goods. Following immediate production from the powerhouse in the factory, all the manufactured goods are recorded, billed and warehoused before distribution to various regions.
The other function consists of production managers as referred to as managers who take responsibility for ensuring safety, evaluation and assign duties to employees. As defined earlier, management includes processes of planning, scheduling, commanding, coordinating and controlling business activities (Dr. Pattnaik & Mishra, 2016). The managers’ main concern to the organization is related to the activities of the conversion processes or production. It can be noted that production is the way of imposing tools to materials (associating the means to perform tasks on content) but rather, enhancing logic to actual process to increase production (Dr. Pattnaik & Mishra, 2016). The management is oriented and understands every aspect of production processes and every resource employed to perform specific tasks during production. It is the responsibility of the management personnel to evaluate, motivate and appraise factors of production.
Importance of production management
Precisely, production management is the process that merges and transforms various resources used in the production channels of the organization into value addition activities in a controlled manner as per the organizational framework.
First, production management enables accomplishments and achievement of firms’ objectives. A well-managed production organization enjoys the merit of achieving all its stated goals — the quality of products produced to meet high standards and satisfies the consumers (Naqib, Stratyinski & Mohamed, 2013). Timely delivery and stock supply are maintained throughout the season hence more yields to the organization (Dr. Pattnaik & Mishra, 2016). This assists the company to increase the sales volume thus achieving its goals of sales and profitability.
Second, brand power is achieved. A well-satisfied customer creates referrals to other clients increasing the customers’ ratios. After sale service and high-quality products creates a good image, goodwill, and reputation between customers and the firm (Naqib, Stratyinski & Mohamed, 2013). The firm stands high chances of growth and development due to its supportive contented customers.
Third, assists in the creativity and innovation of new products in the market. Production management’s knowledge and skills research new products related to the produced goods. For example, a toothpaste producing company can capitalize on designing toothbrushes on the same brand (Dr. Pattnaik & Mishra, 2016). Therefore, customers who cherish the brand will end up purchasing similar products from the company (Naqib, Stratyinski & Mohamed, 2013). That buys toothpaste and brush of the same brand. These help the company grow its productions and expand brand size. Satisfaction with customers is achieved.
Fourth, production management supports other functional regions in the organization such as marketing, finance, and resource. For instance, when the marketing department sells good quality goods and services to clients’, revenue is received in the finance department as a result of sales increase and profits are achieved to pay for employees (Naqib, Stratyinski & Mohamed, 2013). When the resource department is well compensated, performance is enhanced in the organization (Dr. Pattnaik & Mishra, 2016). Improved productions, timely supply, and frequent marketing are a vital role of the personnel in the organization which as a result of incorporation, are supported.
Fifth enables face stiff competition in the industry. The trick behind timely productions and deliveries, marketing strategies and customer relations comes as a package from a competent management team that understands the competition design and nature of the industry (Dr. Pattnaik & Mishra, 2016). The role of the management is to analyze and strategize on the weaknesses exhibited by the competitors in the market industry to capitalize on the flaws to become strengths.
Sixth enables optimum utilization of resources. Due to the evaluation and accountability role of the production management, human resources, types of machinery, finances are thoroughly utilized to enhance minimal loss cases and maximize utility (Naqib, Stratyinski & Mohamed, 2013). The capacity standards of the organization are met where there is no overloading of stuff or machinery and vice versa to underworking. The firm enjoys high yields due to reduced cost of production and utilization.
Seventh, the costs of productions are minimized. The act of production management to reduce the cost of production is tentatively beneficial to the firm. This is achieved through input decreases and output maximizing (Dr. Pattnaik & Mishra, 2016). Efficiency is performed with the loss of reduction.
Lastly, the growth and expansion of the firm. Outsourcing and innovative methods of the management team scale the firm to higher standards in the market position. This enables the firm to reach out to higher levels in the market. This is due to improvement in quality and reduced production costs. Therefore, firm yields much profit hence growth.
Importance of production management to the customers and society
Perhaps, the production management may have several merits to customers — first, higher standards of living. From the many research and innovations, the team produces high quality of goods and services to the market improving the livelihood of the consumers.
PM Generates employment and opportunities for the community. An existing firm attracts personnel and creates employment opportunities for the dwellers of the region. Both direct and indirect employment is created as in production and marketing or outsourcing respectively.
Third, quality improvement and budget reduction. With continuous research and analysis, the firm produces high-quality products at a lower rate on pricing due to improved technology (Dr. Pattnaik & Mishra, 2016).
Fourth, the spread effect and growth of other sectors. Related companies or companies that depend on the firm also rise. For instance, scrap metal or firms that rely on the waste product or outsource companies also rise.
Creates a utility bill while boosting the economy. The form utility can be achieved in the desired shape, size and designs according to the product (Dr. Pattnaik & Mishra, 2016). Time utility is also created since consumers get the goods whenever on demand. On the other hand, optimum utilization of resources is enhanced.
Production management (PM) is a vital department to every organization. Each organization needs to employ a team of personnel that manages the resources of the firm. The team minimizes inputs while maximizing outputs. PM enables positive customer relations, improved performance, yield increase, reduce or outdo competition among other benefits. It assists the community to increase the standards of living through the production of high-quality goods and services at minimal budget while created both direct and indirect employment. The research conducted by the PM team assists the firm to strategize on the market and for future expansion and growth.
Every company or organization that aspires to expand and grow its operations, there concisely invests in the PM. A competent PM will design the production framework, avail goods on the market at the right time and minimize production inputs while increasing outputs and yields. Research and innovation on the production design and layout is a crucial element in every production management. The PM understands the goals and objectives of the firm hence every decision or strategy executed amounts to value addition to the firm. With intensive analysis of the firm structure, steady growth and development are realized to firms that employ production management.
Dr. Pattnaik, S. & Dr. Mishra, S. (2016). Production and Operations Management. Lecture Notes on Production management. Department of Mechanical Engineering. VSSUT Burla
Gao, S. & Low SP. (2014). Lean Construction Management. Springer science+ Business Media Singapore. DOI 10. 1007/978-981-287-014-2.
Naqib, D. Stratyinski, CD. Mohamed AM. (2013). Business logistics. International Journal of interdisciplinary in theory and Practice. No. 2. ISSN 2344-2409. .
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