CONCEPT OF MANAGEMENT

The term management has been interpreted in several ways –

1. Management as an Activity – Management is an activity just like playing, studying,
teaching etc. It is an art of getting things done through efforts of other people. The management
activities consist of
 Interpersonal activities
 Divisional Activities
 Informative Activities

2. Management as a process – Management is considered as process as it comprises of

series of interrelated functions which lead to achievement of organization goals.Management as
a process has following implications.
 Social Process
 Integrated Process
 Continuous Process
 Interactive Process
The elements of Management Process are Planning, Organising, Staffing, Directing and
controlling.

3.Management as an academic discipline – Management has emerged as a specialized branch

of knowledge. It comprises principles & practices for effective management of organization.
There are many management institutes imparting education in various fields of management.

4. Management as a group – The term management is frequently used to devote a group

of managerial personnel. All the managers i.e. Chief executive, departmental heads, supervisors
are collectively called Management. So, management is concerned with all those who manage
the affairs of an organization.

LEVELS OF MANAGEMENT

. The levels create a hierarchy in organization structure. The levels of management differentiate
different managerial positions in an organization. In other words levels of management are a line
of demarcation between various managerial positions in an organization. In large organization
three levels of management are identified.
(I) Top level management
(II) Middle level management
(III) Lower level management

Top Level Management – Top management consists of managers who work at the highest level
of hierarchy. It composed of a comparatively small group of people. It is responsible for the
overall management of the organization. Managers in this level are generally “ chief executives
officers “ ,” president “ , “ vicepresidents “, “ general managers “ , “ managing directors “ etc.
though the exact title varies from organization to organization.
 Top Management consist of
1. CEO (Chief Executive Officer)
2. COO (Chief Operating Officer)
3. BOD (Board of Directors)
4. CFO (Chief Finance Officer)
5. Chairman
6. President
7. Vice President
8. M.D. (Managing Director)
Functions performed by the top managers:
Top managers perform following functions:
• They lay the objectives, plans, policies and procedures for the organization.
• They manage the organization by performing the managerial functions of planning, organizing,
staffing, directing andcontrolling.
• They appoint the executives for middle level i.e. departmental managers.
• They co – ordinate activities for various departments of the organization.
• They integrate internal activities of the organization with the external environment. They update
the internal environment according to the changes in the external environment (e.g.
Technological, Economical, and Social, Political etc.)
• They assemble the resources needed to put plans in to action.
• They issue instructions for the preparation of departmental budgets and procedures.
• They decide the future courses of action taking into consideration economic policies and other
social, national, and international factors.
• They cater the demands of various groups of stakeholder who interact with the organization like
government, consumers, creditors, suppliers, owners, employees etc. and try to harmonize
their goals with organizational goals.

Middle Level Management – Middle manager consist of departmental heads that receive broad
overall strategies and policies from top managers and translate them in to specific goals and plans
for first line managers to implement.

Middle level consists of heads of the various departments.

 Purchase Manager
 Finance Manager
 Human Resource
 Executive Officer
 Plant Superintendent

Functions performed by the middle managers.

Middle managers perform following functions:
• They lay the goals, plans and policies for their respective departments and ensure their
successful accomplishment.
• They spend a major part of time ( about 75 %) in managing day-to- day operations of the
company .They do not actively interact with outside parties ( costumers , suppliers , etc. )
• They balance the demands of superiors with the capabilities of subordinates. They observe the
activities to of lower managers and report them to the top managers.
• They participate in employment and training of lower level management.
• They coordinate the activities within their division and department.
• They send important reports and important data to top management and evaluate the
performance of junior managers.
• They inspire lower level managers towards the better performance.
• They motive subordinates for higher productivity and award them for their outstanding
performance.
• They recommend amendments in policies of their respective departments.

Lower level Management

Lower Level Management can also be termed as Supervisory Management/Operational
Management/First-time Management.
– It is also called as operational level management. It consists of first -line managers or
supervisors. They serve as link between middle – level managers and non –managerial
employees.
Lower level consists of
Foreman
 Supervisors
 Sub-department Executives
 Clerks
Functions performed by lower level managers:
Lower level managers perform following functions –
• They supervise the activities of employees, issue instructions and help them execute those
instructions.
• They coordinate the work of employees with the organizational resources (financial and non –
financial).
• They train employees to perform better to ensure smooth conduct of business operations.
• They evaluate the performance of employees and send their reports to higher – level managers.
• They plan day – to – day operations of the business and do not deal with the outside world.
• They assign works and tasks to various workers. They also provide training to the workers.
• They are responsible for the quality and quantity of the production.
• They help to solve the grievances of the workers.
• They prepare the periodical reports about the performance of the workers.
• They communicate workers’ problems, suggestions and appeals to higher- level.
• They receive instructions from the middle level management and implement them
To achieve routine functions of the business.
• They ensure safety of tools, machines and equipments on which workers perform the
operations.
• They create the sense of belongingness amongst workers which helps in building the image of
enterprise.
 Importance of Management
1. Determination of objectives – Management helps in determining the objective of the
organization. No organization can succeed in its operations unless its objectives are
identified & well defined. These objectives have to be communicated to all the people
working in the organization.

2. Achievement of the objectives – Management plays a vital role in accomplishment of

organizational objectives & goals. The coordination & integration of material & human
resources helps in achieving the pre-determined goals effectively & efficiently.

3. Efficient use of resources – An efficient management can lead a business towards

growth & prosperity. Management reduces wastage of human, material & financial
resources through proper planning & control.

4. Encourages innovation – Management encourage innovation in the organization.

Innovation brings new ideas, new methods, new products & makes the organization
more competitive.

5. Personal objectives – Personal objectives are concerned with satisfaction of financial &
social needs of the employees. Through motivation & direction management helps the
individuals to achieve their personal goals while working towards organizational
objectives.

6. Economic development – Management helps in development of the society by

producing good quality products, creating employment opportunities & adopting new
technology.

7. Creates dynamic organization – Management helps the employees to overcome their

resistance to change & adopt as per changing situation to ensure its survival & growth.

Objectives of management

Organisational or Economic objectives:

a. Survival: The basic objectives of any business are survival. Management must make great efforts
to ensure the survival of the organisation. In order to survive for a long time, an organisation must
earn enough revenues.
b. Profit: Earning profit is the main object of every business. It is very essential to meet the expenses
and for successful continuity of the business. Therefore management should ensure sufficient
profit to cover risk of business.
c. Growth: Growth is another organisational objective. The management must ensure growth of
business. It can be measured in terms of sales volume increase, the number of products or the
increase in capital investment, etc.
Social objectives:
Every organisation is a part of society, whether it is business or non- business, has certain social
obligation towards society. It includes:
Using environmental friendly methods of production.
Generating employment opportunities to weaker sections of society.
Providing quality product at reasonable price.
Providing financial support to society for noble causes.
Providing basic amenities like schools to children of employees.

Personal or individual objectives:

Personal or individual objectives means objectives of the employees of an organisation. It
includes:
Financial needs such as competitive salaries, incentives, other benefits.
Social needs such as recognition, job security etc in the organisation
Higher level needs such as personal growth and development.

ADMINISTRATION
“Administration means guidance, leadership & control of the efforts of the groups towards some
common goal”
Coordination - The Essence of Management
● Coordination is a force which synchronises all the five functions and levels of management to
achieve the goal of the organisation. Coordination is implicit and inherent in all the functions of
an organisation.
● Without coordination, there are chances of overlapping, duplication, delays and chaos in the
work. The function of coordination starts from the planning function itself. Coordination thus
synchronises the different efforts and actions of various units of the organisation.

Characteristics of Coordination
● Coordination integrates group efforts: Coordination integrates group efforts and ensures that
the performance of the organisation is as per the standards set.

● Coordination ensures unity of action: Coordination is a force which binds the various
departments and ensures that all efforts are directed towards achieving the organisational goals.

● Coordination is a never-ending process: Coordination is a continuous and never-ending

process. It is required from beginning to end, at all levels of management as well as in all the
functions of the organisation

● Coordination is the responsibility of all managers: It is the duty of all the people working in
the organisation to work responsibly and coordinate with each other to achieve the objectives or
the goals of the organisation.

● Coordination is a deliberate function: Management deliberately needs to coordinate the efforts

of different people working in the organisation. Coordination cannot be established by itself
rather it is a deliberate and conscious effort on the part of every manager.