PRINCIPLES AND PRACTICES OF MANAGEMENT

CASE DISCUSSION

• A TYPICAL DAY IN THE WORK LIFE OF NATALIE ANDERSON

ORGANISATIONS (JAMES A. F. STONER)

• For most of our lives, we are members of one organisation or another- Family, college, church, business, cultural society, sports team etc.
• Organisation is two or more people who work together in a structured way to achieve a specific goal.
• All organisations, formal or informal, are put together and kept together by a group of people who see that there are benefits available from working together toward some common goal.

Examples of organization in a Sentence

She is the leader of an international organization devoted to the protection of natural resources.

He has been working on the organization of his notes into an outline.
She is responsible for the organization of the party.
The new president plans to make changes to the company's organization.

PURPOSE

• Purpose or goal is very basic, fundamental element of any organisation since it answers the question why it exists- it is the raison-de-etre of organisation i.e. without a goal no organisation will have a reason to exist.
• For achieving goals there should be a programme or method- a plan
• For achieving goals there should also be acquisition and allocation of resources

MANAGEMENT

• All organisations have people who are responsible for helping them achieve their goals
• These people are called managers
• Management is the practice of consciously and continually shaping organisation, setting and achieving its goals

What is Management?

According to Peter Drucker :- "Management is a multi-purpose organ that manages business and manages managers and manages workers and work." (This definition of management was given by Peter Drucker in his book "The Principles of Management".)

According to Mary Parker Follet :- "Management is the art of getting things done through people."

Meaning of Management
According to Theo Heimann, management has three different meanings,

Management is an individual or a group of individuals that accept responsibilities to run an organisation. They Plan, Organise, Direct and Control all the essential activities of the organisation. Management does not do the work themselves. They motivate others to do the work and co-ordinate (i.e. bring together) all the work for achieving the objectives of the organisation.

Management brings together all Six Ms i.e. Men and Women, Money, Machines, Materials, Methods and Markets. They use these resources for achieving the objectives of the organisation such as high sales, maximum profits, business expansion, etc.

Features of Management
Following image depicts fourteen important features of management.

The nature, main characteristics or features of management:

1. Continuous and never ending process.
2. Getting things done through people.
3. Result oriented science and art.
4. Multidisciplinary in nature.
5. A group and not an individual activity.
6. Follows established principles or rules.
7. Aided but not replaced by computers.
8. Situational in nature.
9. Need not be an ownership.
10. Both an art and science.
11. Management is all pervasive.
12. Management is intangible.
13. Uses a professional approach in work.
14. Dynamic in nature.

Now let's briefly discuss each feature of management.

1. Continuous and never ending process

Management is a Process. It includes four main functions, viz., Planning, Organising, Directing and Controlling. The manager has to Plan and Organise all the activities. He had to give proper Directions to his subordinates. He also has to Control all the activities. The manager has to perform these functions continuously. Therefore, management is a continuous and never ending process.

2. Getting things done through people

The managers do not do the work themselves. They get the work done through the workers. The workers should not be treated like slaves. They should not be tricked, threatened or forced to do the work. A favourable work environment should be created and maintained.

3. Result oriented science and art

Management is result oriented because it gives a lot of importance to "Results". Examples of Results like, increase in market share, increase in profits, etc. Management always wants to get the best results at all times.

4. Multidisciplinary in nature

Management has to get the work done through people. It has to manage people. This is a very difficult job because different people have different emotions, feelings, aspirations, etc. Similarly, the same person may have different emotions at different times. So, management is a very complex job. Therefore, management uses knowledge from many different subjects such as Economics, Information Technology, Psychology, Sociology, etc. Therefore, it is multidisciplinary in nature.

5. A group and not an individual activity

Management is not an individual activity. It is a group activity. It uses group (employees) efforts to achieve group (owners) objectives. It tries to satisfy the needs and wants of a group (consumers). Nowadays, importance is given to the team (group) and not to individuals.

6. Follows established principles or rules

Management follows established principles, such as division of work, discipline, unity of command, etc. These principles help to prevent and solve the problems in the organisation.

7. Aided but not replaced by computers

Now-a-days, all managers use computers. Computers help the managers to take accurate decisions. However, computers can only help management. Computers cannot replace management. This is because management takes the final responsibility. Thus Management is aided (helped) but not replaced by computers.

8. Situational in nature

Management makes plans, policies and decisions according to the situation. It changes its style according to the situation. It uses different plans, policies, decisions and styles for different situations.

The manager first studies the full present situation. Then he draws conclusions about the situation. Then he makes plans, decisions, etc., which are best for the present situation. This is called Situational Management.

9. Need not be an ownership

In small organisations, management and ownership are one and the same. However, in large organisations, management is separate from ownership. The managers are highly qualified professionals who are hired from outside. The owners are the shareholders of the company.

10. Both an art and science

Management is result-oriented. Therefore, it is an Art. Management conducts continuous research. Thus, it is also a Science.

11. Management is all pervasive

Management is necessary for running a business. It is also essential for running business, educational, charitable and religious institutions. Management is a must for all activities, and therefore, it is all pervasive.

12. Management is intangible

Management is intangible, i.e. it cannot be seen and touched, but it can be felt and realised by its results. The success or failure of management can be judged only by its results. If there is good discipline, good productivity, good profits, etc., then the management is successful and vice-versa.

13. Uses a professional approach in work

Managers use a professional approach for getting the work done from their subordinates. They delegate (i.e. give) authority to their subordinates. They ask their subordinates to give suggestions for improving their work. They also encourage subordinates to take the initiative. Initiative means to do the right thing at the right time without being guided or helped by the superior.

14. Dynamic in nature

Management is dynamic in nature. That is, management is creative and innovative. An organisation will survive and succeed only if it is dynamic. It must continuously bring in new and creative ideas, new products, new product features, new ads, new marketing techniques, etc.

WHAT MANAGERS DO IN ORGANISATIONS ?

MANAGERS GET THINGS DONE THROUGH OTHER PEOPLE …?

Manager is a job title that is used in organizations to denote an employee who has certain duties and responsibilities to lead functions or departments and/or employees. The manager is assigned to a particular level on an organizational chart. Employees who have the job title of manager have diverse duties and job responsibilities for people and functions.

The job description of a manager varies from organization to organization depending on the specific responsibilities that are assigned to the job function. In some organizations, the title, manager, is only assigned to employees who have other employees reporting to them as seen on an organizational chart.

In other organizations, the title of manager is also assigned to employees who manage a functional area. For example, Tracey has the job title of manager. She has no reporting staff but she is responsible for expanding sales to international markets.

The manager's role and job description are at a pay grade or job classification level of the organization that integrates functions and departments for implementation success. The manager who is responsible for a department normally has directly reporting employees for whom he or she has leadership responsibility.

Larger organizations may also have senior managers or managers of managers who report to either the director level or the vice president level, depending, usually, on the size of the organization.

Description of the Role of Manager

A thoughtful description of what a manager does or should do comes from the "Harvard Business Review." In their description of the role and duties of a manager, "Management is the responsibility for the performance of a group of people." 

Another traditional definition echoes a similar job role: "A manager is responsible for overseeing and leading the work of a group of people." But, what else does manager mean and what does a manager actually do?

Leading people is the usual description of what a manager does.

But, he or she is also responsible for leadership over a segment of work, a sub-section of the organization's results, or a functional area with or without reporting staff. 

Or, as highlighted above, some managers are responsible for functions. If you want to eliminate confusion, these positions should have titles such as international sales development leader or international sales development coordinator.

Executives or Senior Managers Lead Groups of Managers

To understand the broader uses of the title of manager, some organizations have senior or executive managers whose job is to lead a group of managers, each with their own functional area of responsibility and directly reporting staff. Examples include:

• Bill is the marketing manager and he has six reporting staff members. In this instance, Bill is responsible for a sub-section of the organization's results, the functional area marketing, and for the six direct reports.
• Mary is the manager of Human Resources, a functional area, and sub-section of the organization's results. She currently has no reporting staff members, but as the company grows, she plans to add reporting staff.
• Bethany is the manager of trade show and event marketing. She manages the functional area of trade shows and event marketing. She has no staff currently and none are planned for the future. She draws upon the people resources of the department for which she is coordinating the event. Additionally, different marketing department members help her publicize and staff the event; for example, the public relations manager, the marketing communications writer, and the graphics designer, none of whom report to her, might help her plan, market, and stage an event.
• Elizabeth is the senior manager of customer engagement. In this role, she is responsible for the work and results of the four departments that comprise the department of customer engagement. In this role, the four department managers report to her for their overall leadership and direction.
• These four managers, in turn, head up their own functional areas: the customer service representatives, the technical support specialists, the administrative services staff, and the external training and development staff.

Employees who have the job title of manager, as you can see, have diverse responsibilities for people and functions. In general, every manager's job is different, but they all have these responsibilities. Because the role of the manager bears significant responsibility, accountability, and authority within an organization, the manager has the following responsibilities.

Responsibilities in the Job Description and Job Duties of a Manager

Traditionally, the manager's job description and duties and responsibilities include:

• Plan: planning the operation and function of the area over which the manager is assigned responsibility in a way that accomplishes the goals for which he or she is responsible in the workings of a total organization.
• Organize and Implement: organizing the production of the work, and the workforce, training, and resources necessary to do the work, in a way that accomplishes the desired and required outcomes to meet the goals.
• Direct: providing the employees and their resources with enough guidance, direction, leadership, and support necessary to ensure that they are able to accomplish their goals.
• Monitor: following up to ensure that the plan to achieve the goals is being carried out in such a way that its accomplishment is assured.
• Evaluate: reviewing and assessing the success of the goal, the plan, and the allocation of the employees and their resources using solid, reliable measurements.
• Performing other responsibilities as assigned by the president, vice president, or director to whom the manager reports. These responsibilities are diverse and far-reaching in most organizations and depend on the organization's goals and objectives.

MANAGEMENT FUNCTION (HENRI FAYOL)

MANAGEMENT FUNCTION, in general, means what a Manager does

• PLANNING
• ORGANISING
• LEADING
• CONTROLLING

MANAGEMENT PROCESS MODEL

• PROCESS means is a systematic way of doing things 
• All managers regardless of their particular aptitudes or skills engage in certain inter-related activities in order to achieve their desired goals 
• Representation of a process like these interrelated activities is done by a MODEL in Management Studies

FUNCTIONAL AREAS

• Functional Area is a group of similar activities in an organisation 
• Functional Areas depend on different business 
• Common Functional Areas are 
• Operation or Production or Service 
• HR 
• Finance 
• Marketing
• IT etc.

MANAGEMENT ROLES

• ROLE means position what a person occupies. 
• A role has its identity, requirements, expectations, authority and responsibility. 
• A person may have one or more roles at the same time giving rise to role conflicts

MANAGEMENT LEVELS

The three levels of management typically found in an organization are low-level management, middle-level management, and top-level management. Top-level managers are responsible for controlling and overseeing the entire organization.

Management Levels: An Overview

Most organizations have three management levels:

• Low-level managers;
• Middle-level managers; and
• Top-level managers.

These managers are classified in a hierarchy of authority, and perform different tasks. In many organizations, the number of managers in every level resembles a pyramid.

Below, you’ll find the specifications of each level’s different responsibilities and their likely job titles.

Top-level managers

The board of directors, president, vice-president, and CEO are all examples of top-level managers.

These managers are responsible for controlling and overseeing the entire organization. They develop goals, strategic plans, company policies, and make decisions on the direction of the business.

In addition, top-level managers play a significant role in the mobilization of outside resources.

Top-level managers are accountable to the shareholders and general public.

Middle-level managers

General managers, branch managers, and department managers are all examples of middle-level managers. They are accountable to the top management for their department’s function.

Middle-level managers devote more time to organizational and directional functions than top-level managers. Their roles can be emphasized as:

• Executing organizational plans in conformance with the company’s policies and the objectives of the top management;
• Defining and discussing information and policies from top management to lower management; and most importantly
• Inspiring and providing guidance to low-level managers towards better performance.

Some of their functions are as follows:

• Designing and implementing effective group and intergroup work and information systems;
• Defining and monitoring group-level performance indicators;
• Diagnosing and resolving problems within and among work groups;
• Designing and implementing reward systems supporting cooperative behavior.

Low-level managers

Supervisors, section leads, and foremen are examples of low-level management titles. These managers focus on controlling and directing.

Low-level managers usually have the responsibility of:

• Assigning employees tasks;
• Guiding and supervising employees on day-to-day activities;
• Ensuring the quality and quantity of production;
• Making recommendations and suggestions; and
• Upchanneling employee problems.

Also referred to as first-level managers, low-level managers are role models for employees. These managers provide:

• Basic supervision;
• Motivation;
• Career planning;
• Performance feedback; and
• Staff supervision.