SIGNIFICANCE OF MANAGEMENT
Management is an art of getting things done with and through others. Management can be defined as, the process of getting things done with the aim of achieving organizational goals effectively and efficiently.
Efficiency and Effectiveness
Efficiency (completing the work at low cost) means doing the task correctly at minimum cost through optimum utilization of resources while effectiveness (Completing the work on time) is concerned with end result means completing the task correctly within stipulated time. Although efficiency and effectiveness are different yet they are inter related. It is important for management to maintain a balance between the two.
CASE STUDY
Gold Land Pvt. Ltd. is a wheat producing company. Daily 5000 bags of wheat weighing 10 kg each are produced here. In comparison to the previous year this ere has been less number of bags produced on a per day basis. The number is around 4500 which is less than the target of 5000 set by the company. The company however has been able to reduce the costs involved in comparison to last year’s spending on the production and packaging of each bag. The quality of bags has also been up to the mark.
Identify the concept of management ignored here.
Answer:
The concept ignored here is that of effectiveness as the quantity produced here is lesser than targeted. Effectiveness requires output to be in required quantity, time and quality.
Characteristics of Management
(i) Management is a Goal Oriented Process :Organisation’S existence is based on objectives and management is the process which unites the efforts of every individuals to achieve the goal.
(ii) Management is All Pervasive :The use of management is not restricted, it is applicable in all organisations big or small, profit or non-profit making.
(iii) Management is Multidimensional: it does not contain one activity. it is a complex activity including three main activities
(a) Management of house
(b) Management of people
(c) Management of operations
(iv) Management is a Continuous Process: It is a never ending process. It consists of series of interrelated functions which performs continuously.
(v) Management is a Group Activity: Organisation is a collection of many individuals, every individual contributes towards achieving the goal.
(vi) Management is an Intangible Force: It cannot be seen or touched only it can be felt in the way the organisation functions.
CASE STUDY
Josh Enterprises decides to have a meeting of all the key employees of different departments in the organisation. The main motive is to tell the employees to keep the target of 20% increase in sales as the main objective when they work throughout the year. The meeting is full of ideas regarding the employees and processes involved. Various plans are made to harness the potential of the employees and streamline the processes. However with the passage of a few days the external business environment checks the capability of the organisation to adapt to the situations. The company successfully comes out at the end of the year with flying colours.
What are the various characteristics of management you can find highlighted here? Also identify the lines in which these characteristics have been highlighted.
Answer:
The various characteristics of management involved here are:
Goal Oriented. The main motive is to tell the employees to keep the target of 20% increase in sales as the main objective when they work throughout the year.
Multidimensional. Various plans are made to harness the potential of the employees and streamline the processes. Employees—People, and Streamline the process—Operations.
Dynamic. However with the passage of a few days the external business environment checks the capability of the organisation to adapt to the situations.
Objectives of Management:
Organisational Objectives
Management is responsible for setting and achieving objectives for the organisation. The main objective of any organization should be to utilise human and material resources to the maximum possible advantage, i.e., to fulfill the economic objectives of a business.
Survival: The basic objective of any business is survival. In order to survive, an organization must earn enough revenues to cover costs.
Profit: Management has to ensure that the organization makes a profit. Profit provides a vital incentive for the continued successful operation of the enterprise.
Growth: To remain in the industry, management must exploit fully the growth potential of the organization. There are many indicators of growth such as sales volume, increase in the of employee count, the number of products or the increase in capital investment.
Social Objectives
As a part of society, every organisation whether it is business or non-business, has a social obligation to fulfill which is to consistently create economic value for various constituents of society. This includes:
a) Environmental friendly methods of production
b) Giving employment opportunities to the disadvantaged sections of society
c) Providing basic amenities like schools and crèches to employees
Personal Objectives
Organization consists of different types of individual who joins it to satisfy their diverse needs. The individual may seek to satisfy needs such as:
a)Competitive salaries and perks
b)Peer recognition
c)personal growth and development
d)Management has to reconcile personal goals with organisational objectives for harmony in the organisation.
CASE STUDY
Ice Air Manufacturers are the leading AC manufacturers. On meeting the record target they decided to give prize to the best worker of the year. Rajesh who is a very devoted worker wins the prize of the best worker. He is very happy. Mr. Kulkarni who is the CEO of the company gives a heart-touching speech. He tells all the workers present that the company should reach new heights this year. Their contribution will be immense. He tells them that the revenue this year should exceed cost so much so as to reduce the business risk. So that in the coming years company could show increase in the number of workers, number of products produced and also the sales turnover. The speech ends with the promise made by the labour union head that the company will get the full support from the workers.
In the above case which type of objectives are discussed by Mr. Kulkarni in the speech? What is the other term used for this category of objectives? At which level of management does Rajesh work in the company?
Answer:
The type of objectives discussed are Organisational Objectives since
Profit—revenue this year should exceed cost so much so as to reduce the business risk; and
Growth—increase in the number of workers, number of products produced and also the sales turnover are discussed here.
The level at which Rajesh works is the non-managerial level since all the workers work at this level and he is a worker (Rajesh who is a very devoted worker).
Importance of Management
(1) Achieving Group Goals: Management creates team work and coordination in the group. Managers give common direction to individual efforts in achieving the overall goals of the organization.
(2) Increases Efficiency: Management increases efficiency by using resources in the best possible manner to reduce cost and increase productivity.
(3) Creates Dynamic organization: Management helps the employees overcome their resistance to change and adapt as per changing situation to ensure its survival and growth.
(4) Achieving personal objectives: Management helps the individuals achieve their personal goals while working towards organizational objectives.
(5) Development of Society: Management helps in the development of society by producing good quality products, creating employment opportunities and adopting new technologies.
CASE STUDY
A floor manager of a mall is a very good manager as he utilizes all the functions of management to minimize cost of maintenance of his area. He directs all the staff members under him to follow the targets and advises them to put their efforts in the direction of achievement of these targets. Under his guidance the employees admit that they learn a lot and are able to meet their targets. This has led to the increase in their salaries. Identify the importance of management highlighted above.
Answer:
The importance of management highlighted here are:
Management increases efficiency. A floor manager of a mall is a very good manager as he utilizes all the functions of management to minimize cost of maintenance of his area,
Management helps in achieving group goals. He directs all the staff members under him to follow the targets and advises them to put their efforts in the direction of achievement of these targets.
Management helps in achieving personal objectives. This has led to the increase in their salaries.
Management as an Art
Art refers to skillful and personal application of existing knowledge to achieve desired results. It can be acquired through study, observation and experience. The features of art as follows:
(1) Existence of theoretical knowledge: In every art, Systematic and organized study material should be available compulsorily to acquire theoretical knowledge.
(2) Personalized application: The use of basic knowledge differs from person to person and thus, art is a very personalized concept.
(3) Based on practice and creativity: Art involves in consistent and creative practice of existing theoretical knowledge.
In management also a huge volume of literature and books are available on different aspects of management. Every manager has his own unique style of managing things and people. He uses his creativity in applying management techniques and his skills improve with regular application. Since all the features of art are present in management. so it can called an art.
Management as a Science
Science is a systematized body of knowledge that is based on general truths which can be tested anywhere, anytime. The features of Science are as follows:
(1) Systematized body of knowledge: Science has a systematized body of knowledge based on principles and experiments.
(2) Principles based on experiments and observation: Scientific principles are developed through experiments and observation.
(3) Universal validity: Scientific principles have universal validity and application.
Management has systematic body of knowledge and its principles are developed over a period of time based on repeated experiments & observations which are universally applicable but they have to be modified according to given situation.
As the principles of management are not as exact as the principles of pure science, so it may be called-an inexact science. The prominence of human factor in the management makes it a Social Science.
Management as Profession
Profession means an occupation for which specialized knowledge and skills are required and entry is restricted. The main features of profession are as follows:
(1) Well-defined body of Knowledge: All the professions are based on well defined body of knowledge.
(2) Restricted Entry: The entry in every profession is restricted through examination or through some minimum educational qualification.
(3) Professional Associations: All professions are affiliated to a professional association which regulates entry and frames code of conduct relating to the profession.
(4) Ethical Code of Conduct: All professions are bound by a code of conduct which guides the behavior of its members.
(5) Service Motive: The main aim of a profession is to serve its clients.
Management does not fulfill all the features of a profession and thus it is not a full-fledged profession like doctor, lawyer, etc., but very soon it will be recognized as full-fledged profession.
CASE STUDY
In a country named Wonderland acting is considered as a profession. Whosoever has to become an actor has to read books written about acting. These books tell the nuances of acting and without reading these books one can’t be considered as an actor. To judge the ability of an actor an examination is conducted and then a degree is assigned to the qualified persons who can then act in films. There is also a body which provides membership to all actors. There are about thirty thousand actors in wonderland who are compulsorily members of this organisation.
What are the three features of profession highlighted here? Also identify the lines highlighting these features?
Answer:
The three features of profession highlighted here are:
Well-defined body of knowledge. An actor has to read books written about acting.
Restricted Entry. To judge the ability of an actor an examination is conducted and then a degree is assigned to the qualified person who can act in films.
Professional Association. Actors in wonderland who are compulsorily members of this organisation.
CASE STUDY
Management has evolved like other disciplines. There are umpteen numbers of books of management. One can see that the various theories of management are getting absorbed in the competitive work environment. We can see students of various courses like MBA, BBA, etc. acquiring learning of the systematic knowledge in their syllabus. When these students come in the actual industry environment, not all of them are successful. Success in actual work environment depends upon the intelligent application and mastery of the basic principles of management. Today various companies are considering them as responsible components of society and have started including Corporate Social Responsibility in their main program. These companies have realised that they will be requiring support from Government and people if they want to achieve some important feats in this field.
In the above paragraph one feature is each of science, art and profession has been discussed. Identify each of them.
Answer:
Management as Science—Systematised body of knowledge. We can see students of various courses like MBA, BBA, etc. acquiring learning of the systematic knowledge in their syllabus.
Management as an Art— Based on practice and creativity. Success in actual work environment depends upon the intelligent application and mastery of the basic principles of management.
Management as a Profession— Service Motive. Companies are considering them as responsible components of society and have started including Corporate Social Responsibility in their main program
LEVEL OF MANAGEMENT
(A) TOP LEVEL MANAGEMENT
This level of management consists of the senior most executive level of an organization.
Their chief task is to lay down overall goals, policies and strategies for the organization and to communicate with the middle level of management.
Following are the main designations assigned to individuals working at this level:
Managing Director.
Board of Directors.
Chairperson.
Chief Executive Officers.
Chief Product Officers.
Chief Technology officers.
Functions performed at TOP LEVEL OF MANAGEMENT are :
Making strategies and goals of the organisation.
Taking decisions regarding activities to be performed.
Framing policies for the organization.
Responsible for Welfare and survival of the organisation.
(B) MIDDLE LEVEL MANAGEMENT
This level of management consists of executives working between top level and supervisory level.
They interpret and implement the policies, coordinate all activities, ensure availability of resources and implementation of policies framed by top level management.
They consist of:
Divisional Heads and Sub-divisional Heads.
Departmental Heads like Purchase Manager, Sales Manager, Finance Manager, Personnel Manager etc.
Plant Superintendent.
Functions performed at MIDDLE LEVEL OF MANAGEMENT are :
Interpret the policies to lower management.
Taking decisions regarding a number of personnel in the department.
Assigning duties and responsibilities to employees in their department.
Convey suggestions and grievances of the supervisory level to the top level for the overall smooth functioning of the organisation.
Liable for the ultimate production of respective departments.
To act as a link between lower and management.
(C) LOWER LEVEL MANAGEMENT
Supervisory / Lower / Operational Level Management
This level of management operates between middle-level management and operative workforce.
This level consists of-
Supervisors.
Foremen.
Inspectors.
Functions performed at LOWER LEVEL OF MANAGEMENT are :
Provide on the job training to the workers.
Ensure the performance of the workers.
Giving feedback to the workers.
Influence others to work more by setting an example.
Responsible for group unity.
Act as a link between the management and the workers.
CASE STUDY
Dheeraj, Neeraj and Suraj are three friends. They work in the same company. They are managers but they belong to three different levels of management. Every day they meet and discuss their work with each other. One day they were having a conversation.
Dheeraj said, “These days I am having a lot of problems motivating the people at Shop Floor. I have decided to purchase two new machines. I know I will have to set an example by being the best leader.”
Neeraj said, “I am having problem with knowing the exact requirement of people in my department. Different polices have to be informed to the employees so that they become aware of our company’s goals. I also have to coordinate with other departmental heads to know their requirements.”
Suraj said, “I have to decide for long term. I know I will be ultimately responsible for every activity. All the policies and strategies require a lot of planning before formulation.”
In the above case identify the different levels of management these three friends belong to.
Answer:
Dheeraj belongs to lower level of management. Lower level manager works at the Shop Floor level. Shop Floor is the place where workers work and machines are kept.
Neeraj belongs to middle level management. Middle level manager decides the number of employees to be required in his department. He also has to coordinate with other departmental heads though at the same level.
Suraj belongs to the Top level of management. Top level manager is required to plan for long term basis. He is responsible for all the activities in the organisation. Policies and strategies are formulated by the Top management.
CASE STUDY
Ashutosh Goenka was working in ‘Axe Ltd.’, a company manufacturing air purifiers. He found that the profits had started declining from the last six months. Profit has an implication for the survivial of the firm, so he analysed the business environment to find out the reasons for this decline.
(a) Identify the level of management at which Ashutosh Goenka was working.
(6) State three other functions being performed by Ashutosh Goenka.
Answer:
(a) Top level management.
(b) Following are the three functions performed by Ashutosh being a top level manager.
Integrating the diverse elements and coordinating the activities of different departments as per the overall objectives of the organisation.
Formulating overall organisational goals and strategies for their achievement.
Taking the responsibility for all the business activities and for its impact on the society.
Functions of management
Planning :Planning is the primary
functions. It is the process of thinking before doing. It bridges the gap between where we are and where we want to go.
Organising :It is the process of defining the formal relationship among people and resources to accomplish the desired goals. It involves
(a) Identification and division of work
(b) Departmentalisation
(c) Assigning of duties
(d) Establishing reporting relationships
Staffing :Organisational goals can be achieved only through human efforts. It Is the duty of management to make the best possible use of this resource. Thus, placing the right person on the right job is very important. Staffing helps management to motivate, select and place the right person on the right job.
Directing :Directing involves leading, influencing and motivating employees to perform the tasks assigned to them. This requires establishing an atmosphere that encourages employees to do their best. Directing comprises of four elements; supervision, motivation, leadership and communication.
Controlling :Controlling is the management function of monitoring organisational performance towards the attainment of organisational goals. The task of controlling involves
(a) Establishing standards of performance
(b) Measuring current performance
(c) Comparing this with established standards
(d) Taking corrective action
CASE STUDY
Alpha Beta Inc. decided to go for perfect coordination in the various aspects of the company. They focus on synchronization of all the activities of the organisation. For this they know coordination will be the key. At the stage of thinking of what is to be done throughout the year they decide to take into consideration the harmony between the goals of the organisation and those of the individual departments. When they hire employees they pay them only after evaluating their worth in terms of how efficient they are. Finally when the last month of production comes they, time and again check the deviation between the set targets and the actual production done.
In the above paragraph the main focus is on coordination. However various functions of management also come into picture. You have to identify the three functions of management highlighted above in which coordination can be seen.
Answer:
The various functions of management highlighted above are:
Planning. At the stage of thinking of what is to be done throughout the year they decide to take into consideration the harmony between the goals of the organisation and those of the individual departments.
Staffing. When they hire employees they pay them only after evaluating their worth in terms of how efficient they are.
Controlling. Finally when the last month of production came they were time and again
checking the deviation between the set targets and the actual production done.
Coordination (The Essence of Management):
Coordination is the force which synchronizes all the functions of management and activities of different departments. Lack of coordination results in overlapping, duplication, delays and chaos. It is concerned with all the three levels of management as if all the levels of management are looked at together, they become a group and as in the case of every group, they also require coordination among themselves. So, it is not a separate function of management, rather it is the essence of management.
l. Coordination integrates group efforts: It integrates diverse business activities into purposeful group activity ensuring that all people work in one direction to achieve organizational goals.
2. Coordination ensures unity of action: It directs the activities of different departments and employees towards achievement of common goals and brings unity in individual efforts.
3. Coordination is a continuous process: It is not a specific activity matter it is required at all levels, in all departments till the organization continues its operations.
4. Coordination is all pervasive function: It is universal in nature. It synchronizes the activities of all levels and departments as they are interdependent to maintain organizational balance.
5. Coordination is the responsibility of all managers: It is equally important at all the three-top, middle and lower levels of management. Thus it is the responsibility of all managers that they make efforts to establish coordination.
6. Coordination is a deliberate function: Coordination is never established by itself rather it is a conscious effort on the part of every manager. Cooperation is voluntary effort of employees to help one another. Effective coordination cannot be achieved without cooperation of group members.
Importance of Coordination:
Coordination is necessary as it combines the efforts of people, authorities and experts. The principal analysis for coordination is that units and individuals in the company are interdependent, i.e. they rely upon each other for data and resources to conduct their own activities. Hence, managers need to reconcile discrepancies in timing, approach, interest or effort. At the same time, there is a necessity to correspond to individual and organisational goals.
Growth in size: As companies develop in size, the number of employees employed by the company also develops. Often, it may become challenging to unite their efforts and exercises. All people vary in their customs of background, approaches, work to the conditions and association with others. It becomes essential to guarantee that all individuals perform towards the pre-defined common goals of the company. But employees may have their individual specific goals too.
Functional differentiation: Operations of an establishment are apportioned into divisions, sections and departments. In a company, there may be distinct departments of production, marketing, finance or human resources. All these units may have their own goals, strategies and their own technique of working.
Specialisation: Contemporary organisations are defined by a high degree of specialisation. Specialisation occurs out of the complexities of contemporary technology and the heterogeneity of tasks to be executed. Companies, hence, must employ a number of experts. Specialists normally think that they are equipped to assess, decide and judge according to their professional standards. They usually do not take guidance or recommendations from others in matters concerning their field of specialisation.
CASE STUDY
ABCD Inc. is a company which deals with providing car service at home and on road. There are different departments in this company like Human Resources, Marketing, Finance, Research & Development and Operations. The top management of the company tries its level best to synchronize the activities of different departments in the best possible manner. The result is the increased efficiency and attainment of goals. However with the passing of time the size of the company has grown and now there are many branches of this company. The synchronization has turned more important with the increase in the size of the company and the number of employees. The Departmental Heads of the company are specialists in their respective areas and the top management tries to work with them not with authority but by respecting their views on the subject. Their ego clashes are avoided to ensure smooth functioning of the organisation.
Identify the concept of management highlighted above. Write two benefits highlighted in the above paragraph of this concept.
Answer:
The concept of management highlighted above is that of Coordination. The top management of company tries its level best to synchronize the activities of different departments in the best possible manner.
The importance of coordination:
Growth in size:When the organisation grows in size coordination plays an important role in synchronizing all the activities as the number of employees and branches increases. The synchronization has turned more important with the increase in the size of the company and the number of employees.
Specialisation:The specialists like the departmental heads cannot be tackled just by unity of command. They have their own egos. Here the best way to tackle them is to ensure coordination among them.
