Chapter 1 : Nature and Functions of Management
Definitions of Management
“Management is the art of getting things done through and with people in formally organized groups. It
is the art of creating the environment in which people can perform and individuals could cooperate
towards attaining of group goals. It is the art of removing blocks to such performance, a way of
optimizing efficiency in reaching goals.” - Harold Koontz
“Management is principally the task of planning, coordinating, motivating and controlling the efforts of
others towards a specific objective.”- James L Lundy
“Management is a distinct process consisting of planning, organizing, actuating and controlling,
performed to determine and accomplish stated objectives by the use of human being and other
resources.”- George R Terry
The term ‘management ‘applies to any organization irrespective of the size or nature of operations.
However, the key word to success is ‘Skilled Management’ which is highly essential to any kind of
organizations: Wherever there are groups of people working together to achieve some common
objective, it becomes essential to guide, organize and control them. Be it a CEO of a multinational
company or the president in a college-the prime concern is to manage their people and resources
effectively. The attention of any member of the above category is pivoted towards certain targets. These
targets attained only through skilled management of an entire team.
Functions of Management
Planning
Defining goals, establishing strategies & developing sub plans to coordinate activities
Organizing
Determining what needs to be done, how it will be done & who is to do it
Staffing
Analyzing and fulfilling manpower requirement of the organization. It includes three activities
a) Recruitment
b) Selection
c) Induction & Orientation
Leading
Directing and motivating all involved parties and resolving conflicts
Controlling
Monitoring the activities to ensure that they are accomplished as planned
Levels of Management
There are three different levels of management :
1. Top level management, consist of Board of Directors, Managing Directors or President
2. Middle level management, consist of General Manager, National Manager- Marketing/
Finance/ Production
3. Lower or operating level management, consists of Floor Manager/ Supervisors
Managerial Skills
To perform the desired function discussed in earlier part, a manager needs to possess skills. This can be
divided into three categories as follows:
Management Skills- A manager can excel in his profession only if he possesses a blend of three
skills- conceptual, human and technical skills.
Technical Skills - Technical skills is an imperative skill for managers at the lower levels of
management. Unless managers at lower level are adept in technical matters, they would not be
in a position to direct the operations of their subordinates in the best manner possible and
thereby lead them towards optimal performance- both quantitatively and qualitatively.
Human Skills- Human skills or interpersonal skills refer to the ability of a person to work well
with other people in a group.
Conceptual Skills- This is imperative for the top management, necessary for the middle and
desirable at the lower level. Conceptual skills refer to the ability of a person to think and
conceptualize abstract situations.
Managerial Roles
The concept of ‘managerial role’ was first introduced into the analysis of management work by
Henry Mintzberg in 1973.
Interpersonal Roles
Description of actions Example from managerial
practice requiring activation of
corresponding roles
1. Figurehead Symbolic leader of the Attending ribbon-cutting
organization performing duties ceremonies, hosting
of social and legal character receptions, presentations and
other activities associated with
the figurehead role
2. Leader Motivating subordinates, Virtually all managerial
interaction with them. operations involving
Selection and training of subordinates
employees
3. Liaison Establishing contacts with Business corresponds,
managers and specialists of participation in meetings with
other divisions and representative of other
organizations, informing divisons /organizations
subordinates of these contacts
Informational roles
1. Monitor (receiver) Collecting various data relevant Handling incoming
to adequate work correspondence, periodical
surveys, attending seminars and
exhibitions, research tours
2. Disseminator of Transmitting information Dissemination of information
information obtained from both external letters and digest, interviewing,
sources and employees to informing subordinates of the
interested people inside the reached agreements.
organization
3. Spokesperson Transmitting information on the Compiling and disseminating
organization’s plans, current information letter and circulars,
situations and achievements of participation in meetings with
the division to outsiders progress reports.
Decisional Roles
1. Entrepreneur (Initiator Seeking opportunities to develop Participation in meetings
of change) processes both inside the involving debating and decision
organizations and in the system making on perspective issues,
of innovations to improve the and also in meetings dedicated
organization’s situation and to implementation of
employee’s well-being. innovations
2. Disturbance handler Taking care of the organizations, Debating and decision making on
correcting ongoing activities, strategic current issues
assuming responsibility when concerning ways of overcoming
factors threatening normal work crisis situations.
of the organization emerge
3. Resource allocator Deciding on expenditure of the Drawing up and approving
organization’s physical , financial schedules, plans, estimates, and
and human resources budgets; controlling their
execution
4. Negotiator Representing the organization in Conducting negotiations,
all important negotiations establishing official links
between the organization and
other companies
In Short,
Management is the process of designing and maintaining the environment for efficiently accomplishing
the selected aims. Managers carry out the functions of planning, organizing, staffing, leading and
controlling Managing is an essential activity at all organizational levels; however, the managerial skills
required vary at each organizational levels. The goal of all managers is to create a surplus. Excellent
companies exploit the innovative trends of information technology in vogue in the 21 st Century’s to their
dynamic and are able to apply in apt time. He should possess the qualities of a great leader and be able
to build strong value system. Manager should be able to practice team work and meritocracy. He should
be a person with epithetical in nature whereby he is able to feel the pulse of his team members.
