Management and its characteristics and functions

TOPICS COVERED:

1. Introduction to Management
2. Characteristics of Management
3. Functions of Management
4. Levels of Management
5. General Introduction to Efficiency and Effectiveness

Management is the process by which managers direct and control other people to balance and concentrate their efforts for efficiently accomplishing predetermined goals within the prevailing environment. Management aims to achieve organizations goal in an efficient and effective manner.

Many business fail in the first year few years of operation. In almost all these cases, managerial incompetency and inexperience are the causes of the failure. The poor management leads to financial, physical, psychological damage in the business. Clearly, business failure can be avoided through good management practices.

Essence / Characteristics of Management:

1.  Goal Oriented: Every organization is established for a specific objective. Management is an instrument or system that contributes for the efficient use of human and other resources to achieve predetermined objectives.
2. Universal Activity: Management is essential where there is human activity. It is necessary in all types of organizations. It can be said that the management principles are universally applicable.
3. Social Process: Management is a part of social process. It achieves its objectives by, with and through the people. It utilizes human resources for the achievement of organizational goals.
4. Dynamic Activity: Management is a dynamic and continuous process. The management system of today may not be applicable or effective for tomorrow. Therefore, management must be dynamic and flexible with the changing environment of the society.
5. Group Activity: The concept of management is not applicable if there is only one person or proprietor. Working among groups give more effective results.

Process/ Functions of Management:

Management function includes all managerial activities from setting objectives to taking essential steps to ensure and achieve organizational objectives. The major functions of management include planning, organizing, directing and controlling.

1. Planning: Planning is the process of determination of objectives and selecting a best course of action for achieving predetermined objectives. It minimizes future uncertainties and risk.
2. Organizing: Organizing is the process of combining together all the organizational resources and establishing productive relations among them. Major activities are identified and grouped into different managerial units.
3. Directing: Directing is the implementation part of managerial function which provides instructions, guidance and suggestion to subordinates for accomplishing assigned job. Directing includes supervision, motivation, leadership, coordination, communication.
4. Staffing: Staffing is the process of obtaining and maintaining competent employees to fill all positions. It involves determination of manpower and recruitment, selection, appointment and placement of right employee to the right job.
5. Controlling: Controlling is a process of measuring the actual performance achieved with that of planned performance and taking corrective corrective action if actual performance is not in accordance with planned performance.

Managerial Hierarchy / Levels of Management:

1. Top Level Management:

This is the highest level of management and is responsible for  achieving overall objectives of the organization. The top level management derives its power directly from the owners of the enterprise. It is the brain of the management. Top level managers are responsible for the overall performance of the entire organization. The basic functions of top level management are:

• To define overall objectives of the organizations.
• To prepare strategic plans and policies of the organizations.
• To direct, co-ordinate and lead all the subordinates.
• To evaluate and review the performance of all departments and take necessary steps to achieve organizational objectives.
• To represent the organization to the outside world.

2. Middle Level Management:

Middle level management is the largest group of managers in most organizations. It is known as the backbone of an organization. This level if management consists of departmental heads like human resource manager, production manager, marketing manager, finance manager, procurement manager and similar other positions. The basic functions of middle management are:

• To play the role of mediator between top-level and first-line management.
• To implement plans and policies laid down by the top  level management.
• To divide work among subordinates and maintain coordination among them.
• To make provisions of training, workshop, seminar and other activities.
• To submit progress reports and recommend valuable suggestions to the top level management.

3. Lower/ Supervisory Level Management:

This level is known as first line or operating level of management. This is the lowest level and directly involved in implementation of plans. This level consists of supervisors, foreman, sales officers, accounts officers and other operational heads. This level is directly responsible for the completion of works in time to achieve planned objectives. The basic functions of first line management are:

• To make day-to-day plans and to implement plans formulated by middle level management.
• To provide necessary instructions and guidance to subordinates.
• To manage resources of an organization.
• To submit progress report to the middle level management.
• To operate and create better environment for work.

Efficiency: Efficiency is related to discovering the simplest way to try to do something in the shortest time period possible. Focus on process and do things correctly.

Effectiveness: Effectiveness refers to performing the task correctly, regardless of the time it takes. Focus on goals and do the correct things.