FOM/U1 Topic 1 Fundamentals of Management: Introduction and Concepts
Management is the science and art of getting people together to accomplish desired goals and objectives by coordinating and integrating all available resources efficiently and effectively.
Management can be defined as all the activities and tasks were undertaken for the purpose of archiving an objective or goal by continuous activities like; planning, organizing, leading and controlling.
Management is the combined or interchanged process of planning, decision making, organizing, leading, motivation and controlling the human resources, financial, physical, and information resources of an organization to reach its goals in an efficient and effective manner.
The term ‘management’ has been used in different senses. Sometimes it refers to the process of planning, organizing, staffing, directing, coordinating and controlling, at other times it is used to describe it as a function of managing people. It is also referred to as a body of knowledge, a practice and discipline. There are some who describe management as a technique of leadership and decision-making while some others have analyzed management as an economic resource, a factor of production or a system of authority.
Various definitions of management are discussed as follows:
(i) Art of Getting Things Done
Mary Parker Follett
“Management is the art of getting things done through others.” Follett describes management as an art of directing the activities of other persons for reaching enterprise goals. It also suggests that a manager carries only a directing function.
“Management is the art of getting things done through and with people in formally organized groups.” Koontz has emphasized that management is getting the work done with the co-operation of people working in the organization.
J.D. Mooney and A.C. Railey
“Management is the art of directing and inspiring people.” Management not only directs but motivates people in the organization for getting their best for obtaining objectives.
(ii) Management as a Process
Some authors view management as a process because it involves a number of functions. Management refers to all Involves different a manager does. Various functions which are performed by managers to make the efficient use of the available material and human resources so as to achieve the desired objectives are summed up as management. Thus, the functions of planning, organizing, staffing, directing, co-coordinating and controlling fall under the process of management.
“To manage is to forecast and plan, to organize, to command, to co-ordinate, and to control.” Fayol described management as a process of five functions such as planning, organizing, commanding, coordinating and controlling. Modern authors, however, do not view co-ordination as a separate function of management.
George R. Terry
“Management is a distinct process consisting of activities of planning, organizing, actuating and controlling, performed to determine and accomplish stated objectives with the use of human beings and other resources.” Though Terry has described four functions to be a part of management process but managerial functions are classified into five categories.
(iii) Management as a Discipline
Sometimes the term ‘management’ is used to connote neither the activity nor the personnel who performs it, but as a body of knowledge, a practice and a discipline. In this sense, management refers to the principles and practices of management as a subject of study. Management is taught as a specialized branch of knowledge in educational institutions. It has drawn heavily from Psychology, Sociology, and Anthropology etc. A person acquiring degree or diploma in management can try for a managerial job.
Management is treated both as an art as well as science. An art is often regarded as the systematic application of skill or knowledge in effecting accomplishment of results. In management one has to use personal skill and knowledge in solving many complicated problems to achieve enterprise objectives. Management is regarded as a science because it has developed certain principles, generalizations and techniques which have more or less universal application. So management is a study of a specific discipline. When one says that a particular person is in management stream then it is assumed that he is studying a particular field of learning.
(iv) Art and Science of Decision-Making and Leadership
Decision-making and guiding others is considered an important element of management. A manager has to take various decisions every day for properly running an enterprise.
Donald J. Clough
“Management is the art and science of decision-making and leadership.” The author views management as an art and science of decision-making. The quality of decisions determines the performance of a manager. He has also to provide leadership to subordinates for motivating them to undertake their work.
“Management means decision-making.” Decision-making cannot be the only function of management even though it is very important.
“Management is simply the process of decision-making and control over the action of human beings for the express purpose of attaining predetermined goals.” Stanley Vance has emphasized decision-making and control over the actions of employees for reaching the enterprise goals.
(v) An Art of Increasing Productivity
Some authors are of the view that the science of management is used to increase productivity of the enterprise.
John F. Mee
“Management may be defined as the art of securing maximum prosperity with a minimum of effort so as to secure maximum prosperity and happiness for both employees and employer and give public the best possible service.”
“Management is the art of knowing what you want to do in the best and cheapest way.”
Management is the art of securing maximum productivity at the minimum of cost so that it helps employers, employees and public in general. Public is also a stake holder in business, it should also benefit from good performance of business.
(vi) Integration of Efforts
Management makes use of human and physical resources for the benefit of the enterprise.
Keith and Gubellini
“Management is the force that factors integrates men and physical plant into an effective operating unit.” Management integrates physical and human resources for operating the manufacturing process in a better way.
Barry M. Richman
“Management entails the coordination of human and material resources towards the achievement of organizational objectives as well as the organization of the productive functions essential for achieving stated or accepted economic goals.” Management alms to co-ordinate and integrate various resources in the organization for achieving enterprise objectives. The thrust of above mentioned definitions is that integration and co-ordination of various factors of production is essential for running a business properly and this function is undertaken by management.
(vii) Management as a Group of Managers
The term management is frequently used to denote a Refers to managerial group of managerial personnel. When one says that personnel management of such and such company is efficient, he refers to the group of persons who are looking after the working of the enterprise. These persons individually are called managers. “Management is the body or group of people which performs certain managerial functions for the accomplishment of pre-determined goals.”
All managers perform managerial functions of planning, organizing, staffing, directing and controlling. These persons collectively arc called ‘body of managerial personnel.’ In actual practice the term ‘management’ is used to denote top management of the organization. Top management is mainly concerned with determination of objectives, strategic planning, policy formulation and overall control of the organization.