management

Management is a process through which an organisation designs

and maintains an environment in which individuals work together
with the motive of achieving organisational goals effectively and
efficiently. The three essential elements that come under the
modern concept of Management are as follows:

1. Management is a ‘Process’
Management involves a series of int-related functions like
planning, organising, staffing, directing, and controlling, which
makes it a process. Every manager performs these functions to
achieve goals.

2. Management requires Effective Performance

Effectiveness in Management means achieving goals on time. In
simple terms, it aims at end result. For example, if an organisation
achieves its sales target within time, it is said to be effective.

3. Management needs Efficiency

Efficiency in Management means doing tasks correctly and with
minimum cost. It is not enough to just complete the task on time,
it should be accurate also. Besides, management also aims at
using its resources efficiently as it reduces the cost of the firm
ultimately resulting in higher profits

Characteristics of management
1. Continuous Process
Management is a continuous process. It means that the process
of business management goes on until the company exists, as it
helps in achieving the organisational goals. Every manager of an
organisation has to perform the different functions of
management in a series (planning, organising, staffing, directing,
and controlling).
2. Goal-oriented
Every organisation has a set of predetermined goals or objectives
that it aims to accomplish during its existence. Every organisation
has different goals. Hence, management helps these
organisations in fulfilling their goals by utilising the given limited
resources in the best optimum manner. For example, If the
objective of Airtel is to add a billion Airtel Xtreme customers in a
year, then all of its managerial activities will be directed toward
the achievement of this objective.

3. All Pervasive
The process of business management is universal in nature.
Every organisation, whether small scale, large scale, economic,
social, etc., uses the process of management at every level or
stage. Besides, the activities involved in the management of an
organisation are common for all whether it is a social, political, or
economic enterprise.

4. Multidimensional
Management is a multidimensional process as it does not involve
only one activity. The three main activities involved in
management are Management of Work, Management of People,
and Management of Operations.

Management of Work: Every organisation is set up to perform

some work or goal, and the management aims at achieving these
goals or tasks. The work of an organisation depends upon the
nature of Business; for example, work to be fulfilled in a hospital
is treating patients, in a university is educating students, etc.
Management of People: People are the most essential assets
of an organisation and refer to human resources. It is the duty of
the management to get the work completed through human
resources/people by making their strengths effective and
weaknesses irrelevant. Managing people have two dimensions;
viz., Taking care of a group of people and Taking care of
employees’ individual needs.
Management of Operations: Operations are the activities of an
organisation’s production cycle, like purchasing inputs, converting
them into semi-finished goods, and finished goods. Simply put,
Management of operations consists of a mix of Management of
Work and Management of People, and decides what work has to
be done, how it has to be done, and who will do it.

5. Dynamic Function
There are different internal and external factors that affect the
working of an organisation. An organisation has to change and
adapt itself on the basis of changing environment to accomplish
the organisational goals and objectives. Hence, management is a
dynamic function.

6. Management is a Group Activity

Management involves a group of people performing managerial
activities. The functions of management can be executed only
when every individual performs his/her role their respective status
and department. And as the result of management affects every
individual and every department of an organisation, it always
refers to a group effort.

7. Management is an Intangible Force

Management is a function that cannot be physically seen but its
presence can be felt by watching the orderliness and coordination
in work environment and happy faces of the employees when the
task is completed.

What is the importance of Management

1. Increases Efficiency: The management process of an
organisation increases its efficiency by reducing cost and
increasing productivity by utilisation of the available resources in
the best possible and optimum way.
2. Helps in Achieving Group Goals: Effective management process
creates teamwork and builds coordination among the members of
an organisation. The managers provide a common path or
direction to their employees for the accomplishment of the overall
objectives of the organisation.

3. Creates a Dynamic Organisation: Every organisation works in a

changing environment. The managers of an organisation have to
help their members adapt to the changing environment, which
ultimately helps them ensure the survival and growth of the
organisation. Besides, the management convinces the employees
that the changes brought in the organisation will benefit their
future prospects.

4. Development of Society: Every organisation has various

objectives toward different groups of society. Along with the
development of the organisation, its management has to develop
the society too. To do so, the management helps the organisation
produce good quality products, adopt new technologies, and
provide employment opportunities to the weaker sections of
society.

5. Helps in Achieving Personal Objectives: Every individual or

employee of an organisation has different objectives or goals they
wish to accomplish while doing their jobs. Management helps
these employees in fulfilling their personal objectives along with
the organisational objectives.

What are the functions of management?

There is no universally accepted list of management functions.
Different experts have classified the functions of management in
different ways.
Planning
A plan is a future series of actions decided beforehand. It specifies
the objective to be achieved in the future and the steps required
to achieve them. Planning is the most essential function of
management. It is concerned with thinking in advance about what
to do and who is going to do it. It is concerned with the certain
determination of a future course of action to achieve the desired
result. Planning bridges the gap between the initial point to the
destination to reach. Selection of objectives, policies, and
procedures are involved in planning. The essential elements of
planning are decision-making and problem-solving.
Organising
Organising is the management function of allotting duties,
grouping various activities, establishing authority, and allocating
resources necessary to attain the specific plan. Once the plans
are formulated, the organising function reviews the activities and
resources needed to be applied to the plan. It resolves the
activities and resources needed. Organising decides who will
perform a particular task, and where and when it will be done. It
affects the grouping of the necessary tasks into departments or
work units so that they can be managed well. Therefore there is
an organisational hierarchy so that reporting is smooth within the
organisation
Staffing
Staffing refers to the process of hiring and developing the
required personnel to fill in various positions in the organisation. It
is that part of the management process, which is concerned with
recruitment, selection, placement, allocation, conservation, and
development of human resources. It is a very important aspect of
management as it ensures that the organisation has the right
number and right kind of people, with the right qualification at the
right places, at the right times and that they are performing the
right thing. It is also known as the human resource function.
Directing
Directing is that component of the management process which
ensures that the members of an organisation work efficiently and
effectively for achieving the desired objective. It involves leading,
influencing, instructing, guiding, and inspiring employees to
perform and achieve the predetermined objectives. The two
important components of directing are motivation and leadership.
Communicating effectively and clearly with supervising
employees at work is also a part of directing. It involves issuing
orders and instructions to subordinates, overseeing people at
work, and creating a work environment wherein the employees
may perform to the best of their abilities. To bring out the best
from the employees, a manager needs to direct them through
praise and humbly criticize them.
Controlling
When the plans are put into operation from directing, it becomes
essential to judge regularly whether the actual results are
consistent with the planned results. It monitors the organisational
performance towards the fulfilment of organisational goals. It
enables the manager to detect errors and defects in the course of
work and to take corrective actions whenever needed. It also
provides proper direction to work in conformity with the plan of
action or pre-determined standards. Controlling serves the
purpose of finding out deficiencies in performance and rectifying
them so that the organisation can prevent their recurrence.

Management Roles by Henry Mintzberg

Henry Mintzberg has categorized the multifaceted roles of
managers into three essential dimensions: interpersonal,
informational, and decisional roles. These classifications serve as
a valuable framework for comprehending the wide-ranging tasks
and responsibilities inherent in managerial positions.

1. Interpersonal Roles
These roles revolve around a manager’s interactions and
relationships, both within and beyond the organization. Within this
category, managers undertake three primary roles:
1. Figurehead: Managers serve as symbolic leaders, representing
their organization through ceremonial duties and the embodiment
of its values.
2. Leader: Managers assume the vital responsibility of guiding and
motivating their teams, making pivotal decisions, and providing
support to their staff.
3. Liaison: Managers establish and nurture networks and
relationships, fostering connections within and outside their
organization to gather crucial information and access valuable
resources.
2. Informational Roles
Within this sphere, managers act as conduits of information,
adept at collecting, processing, and disseminating vital data that
facilitates informed decision-making. This category encompasses
three primary informational roles:

1. Monitor:
Managers diligently observe their environment, staying
attuned to internal and external developments that may impact
their organization.
2. Disseminator: Managers share pertinent information with their
teams and other stakeholders, ensuring that everyone possesses
the essential knowledge required for their roles.
3. Spokesperson: Managers represent their organization by
communicating its goals, policies, and actions to external parties,
such as the media, government entities, and the public.
3. Decisional Roles
In this domain, managers engage in the critical process of making
choices and resolving issues within the organization. Four primary
decisional roles encompass this dimension:

1. Entrepreneur: Managers identify opportunities and champion

innovative projects or improvements within their organization.
2. Disturbance Handler: When conflicts or crises emerge, managers
adeptly address them to maintain organizational stability and
harmony.
3. Resource Allocator: Managers allocate resources, including
budgets, time, and personnel, strategically to various projects and
initiatives, aligning them with organizational objectives.
4. Negotiator: Managers skillfully navigate negotiations, whether
internally, with employees or departments, or externally, with
other organizations or stakeholders, to secure agreements and
resolve conflicts
classical approach
What is Classical Management Theory?
Classical management theory is a school of thought that
emphasises a systematic approach to organisational management
to increase efficiency and productivity. Originating in the early
20th century, this theory combines the key aspects of managing
workers and resources to achieve maximum output with minimal
effort and expenses.

It focuses heavily on the structure and logistics of operational

management, advocating strict managerial control, a clear
division of labour, and the prioritisation of task accomplishment.
The essence of classical management theory lies in its orderly,
predictable, and highly structured approach, which aims to
enhance profitability and efficiency in industrial operations. For
professionals seeking to blend classical management principles
with modern business practices, the IIM Visakhapatnam Executive
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navigate complex business environments while driving
organisational success.

Branches of Classical Management Theory

Classical management theory is broadly divided into three distinct
branches: scientific management, Administrative Management,
and Bureaucratic Management. Each branch approaches the
common goal of organisational efficiency from different angles.

1. Scientific Management
Founded by Frederick Taylor, this branch focuses on improving
economic efficiency through the scientific study of work methods
and worker productivity. Taylor's approach involves time-motion
studies, standardised tools and procedures, and the scientific
selection of workers. His theory promoted that workers should be
trained and assigned tasks based on their capabilities and
monitored to ensure they use the right methods.

2. Administrative Management
Henri Fayol developed this aspect of classical management
theory. It centres around the organisation as a whole rather than
the individual worker. Fayol introduced five primary functions of
management—planning, organising, commanding, coordinating,
and controlling—and 14 management principles, including unity
of command, division of work, and authority with responsibility.
His work is fundamental in understanding how organisations are
administered.

3. Bureaucratic Management
Max Weber’s theory of bureaucratic management emphasises a
structured, formalised, and highly organised approach to
management. Weber advocated for managing organisations with
a clear hierarchy of authority, a detailed set of rules and
regulations for managing operations, and positions filled based on
technical competence. This branch supports the idea of an
impersonal relationship between managers and employees,
focusing on rationality and efficiency.
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Advantages of the classical management approach.

Enhanced Efficiency:
Classical management theory provides a clear structure and set
of procedures that can significantly enhance operational
efficiency.
Predictability:
The emphasis on organisation and standardisation makes
outcomes more predictable and management easier.
Scalability:
Its hierarchical structure is ideal for large organisations, where
complex operations require clear authority and responsibilities.
Additionally, the classical approach facilitates the delegation of
management, ensuring that responsibilities are distributed across
various levels, which not only relieves top management but also
empowers lower-level managers to make decisions and manage
tasks effectively.

Disadvantages of the classical management approach.

Inflexibility:
The rigid structures and rules can stifle creativity and adaptability
in dynamic business environments.
Employee Discontent:
This approach can lead to employee dissatisfaction as it prioritises
efficiency over employee needs and can be seen as
dehumanising.
Over-reliance on Hierarchy:
Heavy dependence on hierarchical structures can lead to delays
in decision-making and reduce the organisation’s ability to
respond to changes quickly.

Neo classical approach

The Neo-Classical Theory holds importance because it signifies a
way out from the rigid straitjackets of classical management
theories.
Features of Neo-Classical Theory
The neo-classical theory of management has several
distinguishing features that set it apart from the antecedents in
the classical period. These distinguish and specify the emphasis
on people-orientated management techniques, whose aim is to
boost productivity through the improvement of human behavior
within the organization.

Human Relations Approach

It emphasizes the provision of social contact and relationships
between employees. It has indicated that group dynamics play a
very important role in deciding the level of productivity.
Individual Differences
It recognizes the fact that every employee is different in his or her
needs and also with distinct motivating factors. It believes that
these differences must be grasped well to manage them
effectively.
Informal Organization
It reflects the influence of spontaneously formed informal groups
among members. More often than not, they determine the
behavior, attitude, and working of employees.
Leadership and Communication: It refers to the salience of
communication channels between the management and
employees. Instead of authoritative leadership, it stresses the
presence of participative leadership.
Organization Structure in Neo-Classical Theory
In the neo-classical approach, the organizational structure is far
more flexible in comparison to the rigid frameworks of classical
theories. Neo-classical theory advocates a more democratic and
participative structure wherein all or at least most of the decision-
making processes involve employees with encouragement for
airing opinions and feedback.

Key Elements
1. Decentralization: Power and decision making are distributed
among different levels of the organization.
2. Employee Involvement: Involve employees in discussion,
whereby they may provide inputs, and in the processes of
decision making.
3. Fluid Leadership: They consider acting as facilitators rather than
dictators to ensure an environment of trust and cooperation
Advantages of Neo-Classical Organizational Structure:
1. Better Adaptability: More sensitive to the environment as well as
market needs.
2. Improved Satisfaction of Employees: Employees will feel valued,
hence more morale and motivation.
3. Open Communication: Generates open communication, reduces
misunderstandings and possible conflict with others.
The Criticism of Neo-Classical Theory
The neo-classical theory has had much focus on informal
organization and human behavior but, in doing so, has come in for
a lot of criticism because it has limitations and drawbacks. Critics
argue that this approach, though progressive at times, lacks a
scientific basis sometimes, failing to accommodate what is
considered as the intricacies of more modern and complex
organizational dynamics.

1. Overemphasis on Human Relations: Social and psychological

needs give critical importance that resultantly overshadows the
basics of productivity and efficiency. Financial incentives get
downplayed as a motivator.
2. Less Structured Framework: Compared to the classical theories,
neo-classical theory doesn’t provide any strong or consistent
structure for organizational management. It is based more upon
empirical observations than systematic principles.

Neglect of technological and environmental factors: Fails to have

in mind the changes in technology that form a prominent
influence on the behaviors of organizations along with external
environmental factors. In the context of modern business
environments, human elements must be balanced against the
integration of modern technologies.

Functional areas of management

Personnel Management
Personnel Management is that branch of management which is
concerned with the recruitment, selection, development and the
optimum use of the employees. In other words, personnel
management is concerned with the employees engaged at all
levels of an organisation.

Financial management
It can be said that under financial management, first of all, need
for finance is estimated and then different sources of obtaining
finance and its quantum are determined and finally arrangements
are made for the distribution of profit.
To conclude, it can be said that under financial management,
financial needs of a business are met in such a manner that its
goals can easily be achieved.

Marketing management
Marketing management refers to all managerial activities relating
to marketing. Marketing includes all those activities ranging from
knowing the needs of the consumers to their satisfaction. On the
other hand, management includes planning, organising, staffing,
directing and controlling. Performing of all managerial functions in
the context of marketing is called Marketing Management.

Production management
The production management is needed by the manufacturing
organisations. These organisations change the form of the raw
material and make it more useful.Purchase management means
planning and controlling purchase.

Purchase management
It means to determine as to what goods are to be purchased,
where to purchase from, when to purchase, etc.

Development management
Development management is related with the management of
research activities.

Maintainance management
It is the responsibility of this functional area of management to
keep the organisation in working condition. If the building and the
machines of the factory are not in proper condition, the efficiency
of the employees will certainly be reduced. It will, therefore, not
be satisfying both for the owner and the employees. Therefore,
maintenance management is important for both the categories.

Human resources management

This involves planning, organizing and controlling the
procurement, development, compensation and maintenance of
human resources in an enterprise.

Office management
Office means a place for where the different activities of the
organisation are planned and controlled. To run this place in a
planned manner is called office management. It is the place from
where the employees are given directions and guidance