management in all business and organizational activities is the act of coordinating the efforts of...

7/28/2019 Management in All Business and Organizational Activities is the Act of Coordinating the Efforts of People to Accom

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Management in allbusiness and organizational activities is the act of coordinating the efforts ofpeople to accomplish desired goals and objectives using available resources efficiently andeffectively. Management comprisesplanning,organizing, staffing,leading or directing, andcontrolling an organization (a group of one or more people or entities) or effort for the purposeof accomplishing a goal. Resourcing encompasses the deployment and manipulation ofhuman

resources,financialresources,technologicalresources, and natural resources.

Since organizations can be viewed as systems, management can also be defined as human action,including design, to facilitate the production of useful outcomes from a system. This view opensthe opportunity to 'manage' oneself, a prerequisite to attempting to manage others.

Contents

1 Etymology and Definitions

o 1.1 Theoretical scope

2 Nature of managerial work

3 Historical development

o 3.1 Early writing

o 3.2 19th century

o 3.3 20th century

o 3.4 21st century

4 Topics

o 4.1 Basic functions

o 4.2 Basic roles

o 4.3 Management skills

o 4.4 Formation of the business policy

4.4.1 Implementation of policies and strategies

4.4.2 Policies and strategies in the planning process

o 4.5 Levels of management

4.5.1 Top-level managers

4.5.2 Middle-level managers

4.5.3 First-level managers
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5 See also

6 References

7 External links

Etymology and Definitions

The verb manage comes from the Italianmaneggiare (to handle, especially tools), which derivesfrom the Latin word manus (hand). The French word mesnagement(latermnagement)influenced the development in meaning of the English word managementin the 17th and 18thcenturies.[1]

Some definitions of management are:

Organization and coordination of the activities of an enterprise in accordance with certain

policies and in achievement of clearly defined objectives. Management is often includedas a factor of production along with machines, materials and money. According toPeterDrucker(19092005), the basic task of a management is twofold: marketing andinnovation. Nevertheless, innovation is also linked to marketing (product innovation is acentral strategic marketing issue). Peter Drucker identifies Marketing as a key essence forbusiness success, but management and marketing are generally understood as twodifferent branches of business administration knowledge.

Directors and managers should have the authority and responsibility to make decisions to

direct an enterprise when given the authority. As a discipline, management comprises theinterlocking functions of formulating corporate policy and organizing, planning,

controlling, and directing the firm's resources to achieve the policy's objectives. The sizeof management can range from one person in a small firm to hundreds or thousands ofmanagers in multinational companies. In large firms, the board of directors formulates thepolicy that the chief executive officer implements.[2]

Theoretical scope

Management is the manipulation of the human capital of an enterprise to contribute to thesuccess of the enterprise. This implies effective communication, an enterprise environment (asopposed to a physical or mechanical mechanism), implies human motivation and implies somesort of successful progress or system outcome. As such, management is not the manipulation of a

mechanism (machine or automated program), not the herding of animals, and can occur in both alegal as well as illegal enterprise or environment. Based on this, management must have humans,communication, and a positive enterprise endeavor. Plans, measurements, motivationalpsychological tools, goals, and economic measures (profit, etc.) may or may not be necessarycomponents for there to be management. At first, one views management functionally, such asmeasuring quantity, adjustingplans, meeting goals. This applies even in situations whereplanning does not take place. From this perspective,Henri Fayol(18411925)[3] considersmanagement to consist of six functions: forecasting, planning, organizing, commanding,
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coordinating and controlling. He was one of the most influential contributors to modern conceptsof management.

Another way of thinking, Mary Parker Follett (18681933), defined management as "the art ofgetting things done through people". She described management as philosophy.[4]

Some people, however, find this definition useful but far too narrow. The phrase "management iswhat managers do" occurs widely, suggesting the difficulty of defining management, the shiftingnature of definitions and the connection of managerial practices with the existence of amanagerial cadre orclass.

One habit of thought regards management as equivalent to "business administration" and thusexcludes management in places outside commerce, as for example in charities and in thepublicsector. More realistically, however, every organization must manage its work, people, processes,technology, etc. to maximize effectiveness. Nonetheless, many people refer to universitydepartments that teach management as "business schools." Some institutions (such as the

Harvard Business School) use that name while others (such as the Yale School of Management)employ the more inclusive term "management."

English speakers may also use the term "management" or "the management" as a collective worddescribing the managers of an organization, for example of a corporation. Historically this use ofthe term was often contrasted with the term "Labor" referring to those being managed.

Nature of managerial work

In for-profit work, management has as its primary function the satisfaction of a range ofstakeholders. This typically involves making a profit (for the shareholders), creating valued

products at a reasonable cost (for customers), and providing rewarding employmentopportunities for employees. In nonprofit management, add the importance of keeping the faithof donors. In most models of management and governance, shareholders vote for theboard ofdirectors, and the board then hires senior management. Some organizations have experimentedwith other methods (such as employee-voting models) of selecting or reviewing managers, butthis is rare.

In thepublic sectorof countries constituted as representative democracies, voters electpoliticians to public office. Such politicians hire many managers and administrators, and in somecountries like the United States political appointees lose their jobs on the election of a newpresident/governor/mayor.

Historical development

Difficulties arise in tracing the history of management. Some see it (by definition) as a latemodern (in the sense of late modernity) conceptualization. On those terms it cannot have a pre-modern history, only harbingers (such as stewards). Others, however, detect management-like-thought back to Sumerian traders and to the builders of the pyramids ofancient Egypt. Slave-
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owners through the centuries faced the problems of exploiting/motivating a dependent butsometimes unenthusiastic or recalcitrant workforce, but many pre-industrial enterprises, giventheir small scale, did not feel compelled to face the issues of management systematically.However, innovations such as the spread ofArabic numerals (5th to 15th centuries) and thecodification ofdouble-entry book-keeping (1494) provided tools for management assessment,

planning and control.

Given the scale of most commercial operations and the lack of mechanized record-keeping andrecording before the industrial revolution, it made sense for most owners of enterprises in thosetimes to carry out management functions by and for themselves. But with growing size andcomplexity of organizations, the split between owners (individuals, industrial dynasties or groupsofshareholders) and day-to-day managers (independent specialists in planning and control)gradually became more common.

Early writing

While management has been present for millennia, several writers have created a background ofworks that assisted in modern management theories.[5]

Some ancient military texts have been cited for lessons that civilian managers can gather. Forexample, Chinese generalSun Tzu in the 6th century BC, The Art of War, recommends beingaware of and acting on strengths and weaknesses of both a manager's organization and a foe's.[5]

Various ancient and medieval civilizations have produced "mirrors for princes" books, whichaim to advise new monarchs on how to govern. Examples include the Indian Arthashastra byChanakya (written around 300BC), and The Prince by Italian authorNiccol Machiavelli(c.1515).[6]

Further information: Mirrors for princes

19th century

Classical economists such as Adam Smith(17231790) and John Stuart Mill (18061873)provided a theoretical background toresource-allocation,production, andpricing issues. Aboutthe same time, innovators like Eli Whitney (17651825),James Watt(17361819), andMatthewBoulton (17281809) developed elements of technical production such as standardization,quality-controlprocedures, cost-accounting, interchangeability of parts, and work-planning.Many of these aspects of management existed in the pre-1861 slave-based sector of the US

economy. That environment saw 4 million people, as the contemporary usages had it, "managed"in profitable quasi-mass production.

Written in 1776 by Adam Smith, a Scottishmoral philosopher, The Wealth of Nationsaims forefficient organization of work through division of labour.[6] Smith described how changes inprocesses could boost productivity in the manufacture ofpins. While individuals could produce200 pins per day, Smith analyzed the steps involved in manufacture and, with 10 specialists,enabled production of 48,000 pins per day.[6]
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20th century

By about 1900 one finds managers trying to place their theories on what they regarded as athoroughly scientific basis (see scientismfor perceived limitations of this belief). Examplesinclude Henry R. Towne's Science of managementin the 1890s, Frederick Winslow Taylor'sThe

Principles of Scientific Management(1911), Frankand Lillian Gilbreth'sApplied motion study(1917), and Henry L. Gantt's charts (1910s). J. Duncan wrote the first college managementtextbookin 1911. In 1912 Yoichi Ueno introduced Taylorism to Japanand became firstmanagement consultant of the "Japanese-management style". His son Ichiro Ueno pioneeredJapanese quality assurance.

The first comprehensive theories of management appeared around 1920. The Harvard BusinessSchool offered the first Master of Business Administration degree (MBA) in 1921. People likeHenri Fayol (18411925) and Alexander Churchdescribed the various branches of managementand their inter-relationships. In the early 20th century, people like Ordway Tead (18911973),Walter Scottand J. Mooney applied the principles ofpsychology to management, while other

writers, such as Elton Mayo(18801949), Mary Parker Follett (18681933), Chester Barnard(18861961), Max Weber(18641920), Rensis Likert(19031981), andChris Argyris(* 1923)approached the phenomenon of management from a sociological perspective.

Peter Drucker(19092005) wrote one of the earliest books on applied management:Concept ofthe Corporation (published in 1946). It resulted from Alfred Sloan (chairman ofGeneral Motorsuntil 1956) commissioning a study of the organisation. Drucker went on to write 39 books, manyin the same vein.

H. Dodge, Ronald Fisher(18901962), and Thornton C. Fry introduced statistical techniquesinto management-studies. In the 1940s,Patrick Blackett worked in the development of the

applied mathematics scienceofoperations research, initially for military operations. Operationsresearch, sometimes known as "management science" (but distinct from Taylor's scientificmanagement), attempts to take ascientific approach to solving decision problems, and can bedirectly applied to multiple management problems, particularly in the areas oflogisticsandoperations.

Some of the more recent developments include theTheory of Constraints, management byobjectives, reengineering,Six Sigmaand various information-technology-driven theories such asagile software development, as well as group management theories such asCog's Ladder.

As the general recognition of managers as a class solidified during the 20th century and gave

perceived practitioners of the art/science of management a certain amount of prestige, so the wayopened forpopularised systems of management ideas to peddle their wares. In this context manymanagement fadsmay have had more to do withpop psychology than with scientific theories ofmanagement.

Towards the end of the 20th century, business management came to consist of six separatebranches, namely:
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dministrationhttps://en.wikipedia.org/wiki/Henri_Fayolhttps://en.wikipedia.org/wiki/Alexander_Hamilton_Churchhttps://en.wikipedia.org/wiki/Walter_Dill_Scotthttps://en.wikipedia.org/wiki/Psychologyhttps://en.wikipedia.org/wiki/Elton_Mayohttps://en.wikipedia.org/wiki/Mary_Folletthttps://en.wikipedia.org/wiki/Chester_Barnardhttps://en.wikipedia.org/wiki/Max_Weberhttps://en.wikipedia.org/wiki/Rensis_Likerthttps://en.wikipedia.org/wiki/Chris_Argyrishttps://en.wikipedia.org/wiki/Sociologyhttps://en.wikipedia.org/wiki/Peter_Druckerhttps://en.wikipedia.org/wiki/Concept_of_the_Corporationhttps://en.wikipedia.org/wiki/Concept_of_the_Corporationhttps://en.wikipedia.org/wiki/Alfred_Sloanhttps://en.wikipedia.org/wiki/General_Motors_Corporationhttps://en.wikipedia.org/wiki/Organisationhttps://en.wikipedia.org/wiki/Ronald_Fisherhttps://en.wikipedia.org/wiki/Patrick_Maynard_Stuart_Blacketthttps://en.wikipedia.org/wiki/Sciencehttps://en.wikipedia.org/wiki/Operations_researchhttps://en.wikipedia.org/wiki/Scientific_managementhttps://en.wikipedia.org/wiki/Scientific_managementhttps://en.wikipedia.org/wiki/Sciencehttps://en.wikipedia.org/wiki/Logisticshttps://en.wikipedia.org/wiki/Theory_of_Constraintshttps://en.wikipedia.org/wiki/Management_by_objectiveshttps://en.wikipedia.org/wiki/Management_by_objectiveshttps://en.wikipedia.org/wiki/Business_process_reengineeringhttps://en.wikipedia.org/wiki/Six_Sigmahttps://en.wikipedia.org/wiki/Information_technologyhttps://en.wikipedia.org/wiki/Agile_software_developmenthttps://en.wikipedia.org/wiki/Cog's_Ladderhttps://en.wikipedia.org/wiki/Business_philosophies_and_popular_management_theorieshttps://en.wikipedia.org/wiki/Management_fadhttps://en.wikipedia.org/wiki/Pop_psychology


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Human resource management

Operations management or production management

Strategic management

Marketing management

Financial management

Information technology management responsible formanagement information systems

21st century

In the 21st century observers find it increasingly difficult to subdivide management intofunctional categories in this way. More and more processes simultaneously involve severalcategories. Instead, one tends to think in terms of the various processes, tasks, and objectssubject to management.

Branches of management theory also exist relating tononprofits and to government: such aspublic administration,public management, and educational management. Further, managementprograms related to civil-society organizations have also spawned programs in nonprofitmanagement and social entrepreneurship.

Note that many of the assumptions made by management have come under attack frombusinessethics viewpoints, critical management studies, and anti-corporate activism.

As one consequence, workplace democracy has become both more common, and moreadvocated, in some places distributing all management functions among the workers, each of

whom takes on a portion of the work. However, these models predate any current political issue,and may occur more naturally than does a command hierarchy. All management embraces somedegree democratic principlein that in the long term, the majority of workers must supportmanagement. Otherwise, they leave to find other work or go on strike. Despite the move towardworkplace democracy, command-and-control organization structures remain commonplace as defacto organization structure. Indeed, the entrenched nature of command-and-control is evident inthe way that recent layoffs have been conducted with management ranks affected far less thanemployees at the lower levels. In some cases, management has even rewarded itself with bonusesafter laying off lower level workers.[7]

According to leadership academicManfred F.R. Kets de Vries, it's almost inevitable these days

that a senior management team have somepersonality disorders.[8]

Topics

Basic functions

Management operates through various functions, often classified as planning, organizing,staffing, leading/directing, controlling/monitoring and motivation.
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Planning: Deciding what needs to happen in the future (today, next week, next month,

next year, over the next five years, etc.) and generating plans for action. Organizing: (Implementation)pattern of relationships among workers, making optimum

use of the resources required to enable the successful carrying out of plans.

Staffing: Job analysis, recruitment and hiring for appropriate jobs.

Leading/directing: Determining what must be done in a situation and getting people to

do it.

Controlling/monitoring: Checking progress against plans.

Motivation: Motivation is also a kind of basic function of management, because without

motivation, employees cannot work effectively. If motivation does not take place in anorganization, then employees may not contribute to the other functions (which are usuallyset by top-level management).

Basic roles

Interpersonal: roles that involve coordination and interaction with employees

Informational: roles that involve handling, sharing, and analyzing information

Decisional: roles that require decision-making

Management skills

Political: used to build a power base and establish connections

Conceptual: used to analyze complex situations.

Interpersonal: used to communicate, motivate, mentor and delegate

Diagnostic: ability to visualize most appropriate response to a situation

Technical: Expertise in one's particular functional area.[9]

Formation of the business policy

The mission of the business is the most obvious purposewhich may be, for example, to

make soap. The vision of the business reflects its aspirations and specifies its intended direction or

future destination.

The objectives of the business refers to the ends or activity that is the goal of a certaintask.

The business's policy is a guide that stipulates rules, regulations and objectives, and may

be used in the managers' decision-making. It must be flexible and easily interpreted andunderstood by all employees.
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The business's strategy refers to the coordinated plan of action it takes and resources it

uses to realize its vision and long-term objectives. It is a guideline to managers,stipulating how they ought to allocate and use the factors of production to the business'sadvantage. Initially, it could help the managers decide on what type of business they wantto form.

Implementation of policies and strategies

All policies and strategies must be discussed with all managerial personnel and staff.

Managers must understand where and how they can implement their policies and

strategies.

A plan of action must be devised for each department.

Policies and strategies must be reviewed regularly.

Contingency plans must be devised in case the environment changes.

Top-level managers should carry out regular progress assessments.

The business requires team spirit and a good environment.

The missions, objectives, strengths and weaknesses of each department must be analysed

to determine their roles in achieving the business's mission.

The forecasting method develops a reliable picture of the business's future environment.

A planning unit must be created to ensure that all plans are consistent and that policies

and strategies are aimed at achieving the same mission and objectives.

All policies must be discussed with all managerial personnel and staff that is required in theexecution of any departmental policy.

Organizational change is strategically achieved through the implementation of the eight-

step plan of action established byJohn P. Kotter: Increase urgency, get the vision right,communicate the buy-in, empower action, create short-term wins, don't let up, and makechange stick.[10]

Policies and strategies in the planning process

They give mid and lower-level managers a good idea of the future plans for eachdepartment in an organization. A framework is created whereby plans and decisions are made.

Mid and lower-level management may add their own plans to the business's strategies.

Levels of management
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Most organizations have three management levels: first-level, middle-level, and top-levelmanagers.[citation needed] These managers are classified in a hierarchy of authority, and performdifferent tasks. In many organizations, the number of managers in every level resembles apyramid. Each level is explained below in specifications of their different responsibilities andlikely job titles.[11]

Top-level managers

The top consists of theboard of directors (including non-executive directorsandexecutivedirectors), president, vice-president, CEOs and other members of the C-level executives. Theyare responsible for controlling and overseeing the entire organization. They set a tone at the topand develop strategic plans, company policies, and make decisions on the direction of thebusiness. In addition, top-level managers play a significant role in the mobilization of outsideresources and are accountable to the shareholders and general public.

The board of directors is typically primarily composed of non-executives which owe afiduciary

duty to shareholders and are not closely involved in the day-to-day activities of the organization,although this varies depending on the type (e.g., public versus private), size and culture of theorganization. These directors are theoretically liable for breaches of that duty and typicallyinsured underdirectors and officers liability insurance. Fortune 500directors are estimated tospend 4.4 hours per week on board duties, and median compensation was $212,512 in 2010. Theboard sets corporate strategy, makes major decisions such as major acquisitions,[12] and hires,evaluates, and fires the top-level manager (Chief Executive Officeror CEO) and the CEOtypically hires other positions. However, board involvement in the hiring of other positions suchas the Chief Financial Officer(CFO) has increased.[13] In 2013, a survey of over 160 CEOs anddirectors of public and private companies found that the top weaknesses of CEOs were"mentoring skills" and "board engagement", and 10% of companies never evaluated the CEO.[14]

The board may also have certain employees (e.g., internal auditors) report to them or directlyhire independent contractors; for example, the board (through theaudit committee) typicallyselects the auditor.

Helpful skills of top management vary by the type of organization but typically include [15]a broadunderstanding competition, world economies, and politics. In addition, the CEO is responsiblefor executing and determining (within the board's framework) the broad policies of theorganization. Executive management accomplishes the day-to-day details, including: instructionsfor preparation of department budgets, procedures, schedules; appointment of middle levelexecutives such as department managers; coordination of departments; media and governmentalrelations; and shareholder communication.

Middle-level managers

Consist ofgeneral managers, branch managers and department managers. They are accountableto the top management for their department's function. They devote more time to organizationaland directional functions. Their roles can be emphasized as executing organizational plans inconformance with the company's policies and the objectives of the top management, they defineand discuss information and policies from top management to lower management, and most
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importantly they inspire and provide guidance to lower level managers towards betterperformance. Their functions include:

Design and implement effective group and inter-group work and information systems.

Define and monitor group-level performance indicators.

Diagnose and resolve problems within and among work groups.

Design and implement reward systems that support cooperative behavior.

First-level managers

Consist of supervisors, section leads, foremen, etc. They focus on controlling and directing. Theyusually have the responsibility of assigning employees tasks, guiding and supervising employeeson day-to-day activities, ensuring quality and quantity production, making recommendations,suggestions, and up channeling employee problems, etc. First-level managers are role models foremployees that provide:

Basic supervision

Motivation

Career planning

Performance feedback

management in all business and organizational activities is the act of coordinating the efforts of...

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