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Management - Principles, Functions and Schools of though

Management : Concepts and Definitions

Classical Management Theory

Scientific Management

Levels of Management

Management Vs Administration

Difference Between Management and Administration

Principle of Management

           Division of Work

           Authority
           Discipline
          Unity of Command
          Unity of Direction
          Sub-ordination of Individual Interests to Organisation's Interests
          Remuneration
          Centralisation
          Scalar Chain
          Onder
          Equity
          Stability of Personalel Tenure
          Initiative
          Esprit de Corps/union its strength

Functions / Elements of Management

          Planning

          Organizing

          Staffing

          Directing 

          Coordinating

          Reporting

          Budgeting

Mayor Schools of Management Thought

         The Management Process School

         The Empirical School

         The Human Behavioural School

         The Social Systems School

        The Decision Theory School

        The Mathematical School

                                                                                                               

Management - Principles, Functions and Schools  of though                                                                   

  Management : Concepts and Definitions                                          

 Management is the process of achieving goals by working with and through people and other organizational resources. According to Henri Fayol, "to manage is to forecast and to plan, to organise, to command, to co-ordinate'. 

  Classical Management Theory                                                           

 Classical management theory consists of a group of similar ideas on the management of organisations that evolved in the late 19th century and early 20th century. The classical school is sometime called the traditional school of management among practitioners. This school, evolved as a result of the industrial  revolution, in response to the growth of large organizations and in contrast to the handicraft system that existed till then. Classical theorists recognized human emotions but felt that a logical and rational structuring of jobs and work could control human emotions. Henery feyol is considered as "father of classical management theory" .

Scientific Management                                                                         

 Frederick Winslow taylor is considered to the "father of scientific management." The principles of Scientific Management is a monograph published by Frederick Winslow Taylor in 1911. Scientific management is almost synonymous with the teachings and practices of Frederick W. Taylor scientific management is the name given to the principles and practices that grew out of the work of Taylor and his followers (Carl George Berth, Henry L. Gantt, Frank and Lillian Gilbreth, etc.) and that are characterised by concern for efficiency and systematisation in management. 

Levels of Management                                                                         

 The term "levels of management" refers to a line of demarcation between various managerial  positions in an organization. The number of levels in managements increases when the size of the business and work force increases and vice versa. The level of management  determines a chain of command, the amount of authority and status enjoyed by any managerial position. The level of management can be classified in three broad categories. 

 i. Top level "or" Administrative level :  It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning  and coordination functions. 

 ii. Middle level "or" Executor level :  The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their departiment. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises there may be senior and junion middle level management. 

 iii. Law level/Operative level/Supervisory level :  Lower level is also knows as supervisory/ operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. 

 Management Vs Administration                                                         

  Management  

Management is an act of managing people and their work to achieve a common goal by using the resources of the organization. It creates an environment under which the subordinates and his manager  can work together for the accomplishment of  group, objective. It is a group of people who use their talent and skills in running the comprehensive system of the organization. It is a function an activity, a discipline, a process and much more. 

   Administration   

The administration is defined as a systematic process of administering the management of a business organization, an educational institution for examples school, college, university, government office or any non profit making organization. The function of administration is the formation of policies, plans and procedures, setting up of objectives and goals,  implementing rules and regulations etc.

  Difference Between Management and Administration                     

          Management                                                                                  Administration

1. Management is an action of business and               1. Whereas administration is high level activity. functional level.

2. Whereas management is a system of managing     2. The administration is defined as an act of   of people and things within the organization.              administering the whole organization by a                                                                                                 group of people.

3. While management focuses on policy                     3. Policy formulation is performed the by  implementation.                                                        administration.

4. On the other hand, management focuses on          4. Administration focuses on making the best managing people and their work.                                possible utilization of the organization                                                                                                        resources.

5. Whereas the manager looks after the                    5. The administration is responsible for the  management of the organisation.                               administration of the orgamization.

6. Unlike management plays an executive             6. Administration, whose role is decisive in nature. role in the organization.

7. Functions of management are executive          7. Conversely, functions of administration include and governing.                                                           legislation and determination.

8. Management is all about plans and actions      8. Administration is concerned with framing                                                                                                 policies and setting objectives.

9. Conversely, the management can be seen in     9. Administration is found in government activities the profit making organization like business          and hospitals, clubs, military offices, religious,    enterprises.                                                                organization and all the non-profit making                                                                                                 enterprises.

10. Management makes decisions under the       10. While administration takes all the important      boundaries set by the administration.                      decisions of the organization.

11. On the other hand a group of persons, who  11. Administration represents of the owners of the  are employees of the organization is collectively                                                                                  known as management. 

Finally, it can be said that management and administration both are distinctive terms. You would have noticed; a manager performs both functional activities and administrative. Although the managers are working on the top level and are said to be the part of  administration while the managers working on the lower or middle level signifies management. So, we can determine that administration is above management. 

 Principle of Management                                                                    

 Henri Fayol was born in Istanbul in 1841. Fayol's '14 Principles' was one of the earliest theories of management to be created, and remains one of the most comprehensive. He's considered to be among the most influential contributors to the modern concept of management,  even though people don't refer to "The 14 Principles" often today. Fayol' is principles  of management are as follows. 

 1. Division of Work : 

 2. Authority : 

This principle suggests the need for managers to have authority in onder to command subordinates to perform jobs while being accountable for their actions. The right to give orders and the power to exact obedience are the essense of authority. Its roots are in person and the position. It cannot be conceived of a part from responsibility. 

  3. Discipline :  

This Principle, advocates for clearly-defined rules and regulations aimed at achieving good employee discipline  and obedience. Discipline is composed of obedience, application, energy, behaviour and outward marks of respect between employers and employees. It is essential to any business. Without it no enterprise can prosper. It is what leaders make it. 

  4. Unity of Command :  

This principle states that employees should receive orders from and report directly to one boss only. For any action whats ever, an employee should receive orders from one superior only. One person, one boss. In no case is there adaptation  of a social organism to a duality of command. 

  5. Unity of Direction :  

This principle proposes that there should be only one plan, one objective, and one head for each of the plans. One head and one plan should lead a group of activities. It wing the same objective, one head, one plan. 

 6. Sub-ordination of Individual Interests to Organisation's Interests : 

The interest of one person or group in a business should not prevail over that of the organization. This means that organisation commit itself to the interest of the staff so that they can be more productive and committed to the objectives of the organisation. 

 7. Remuneration :  

The salary of every staff member must be justifiable. A supervisor should receive more pay than line staff. Thus, whosever management appoints to be supervisor takes more than the sub-ordinates by virtue of his or her responsibilities. It does not really matter whether a subordinate works harder and is more productive than the supervisor. 

 8. Centralisation :   

Principle suggests that decision-making should be centralised. This means that decisions making and dishing-out of onders should come from the top management (central) to the  middle management, where the decisions are converted into strategies and are interpreted for the line staff who execute them (decentralisation) 

 9. Scalar Chain :   

This principle is a product of the formal system of organisation. It is also known as the hierarchy principle. The chain formed by managers from the highest to the lowest is called a scalar chain or chain of command. Managers  are the links in the chain. They should communicate to and through the links. Links may be skipped or circumvented only when superiors approve and a real need exists to do so.  

 10. Onder :   

This principle is the simple advocacy of a place for everyone, and everyone in his on her place; a place for everything and every thing in its place. The objective of onder is to avoid loss and waste. 

  11. Equity :   

Henri Fayol suggested that managers should be fair to their staff. Kindliness and justice should be practised by persons in authority to extract the best that their subordinates have to give. 

 12. Stability of Personalel Tenure :   

The basis of this principle is the belief that such staff with a secured tenure will put back into the organisation the knowledge and experience  which they may have garnered in the course of working for the organisation. 

  13. Initiative :   

Allowing all personal to show their initiative in some way is a source of strength for the organization. Even though it may well involve a sacrifice of personal vanity on the part of many managers. A good manager must be one who can be creative to initiate new ideas and also be able to implement them. 

14. Esprit de Corps/union its strength :   

 "Esprit de Corps" is a French Phrase which meant enthusiasm and devotion among  a group of people. In unity there is strength. Managers have the duty to promote harmony and unity among their staff. Management must foster the morale of its employees.

  Functions / Elements of Management                                               

 Henry Fayol was the first among those who describe management activity as a distinct process. Here are various functions which consist the management process. They are planning, organising, actuating, and controlling.  

Luther Gulick the first director of the "American National Institute of Public Administration" has presented a classification  of management function which is broader than that given by fayol. 

 Luther Gulick and L. Urwick have coined an acronym for seven functions namely POSDCORB which stands for. 

 P - Planning

 0 - organising 

 S - staffing 

 D - Directing 

 C-O - Coordinating 

 R - Reporting 

 B - Budgeting 

 1. Planning :   

Planning is the process of determining  in advance what should be accomplished and how to  do it. In other words, it is an analytical process of establishing  goals, objectives and targets, assessing the future, premising, generating and evaluating alternatives, selecting programs, projected or courses, estimating resources; preparing the plan document with derivative plans and implementing the plan. 

 2. Organizing :   

Organising is the process of prescribing formal relationships among people and resources (i.e. personnel, raw materials, tools, capital, etc:) to accomplish the goals. 

 3. Staffing :   

Staffing is the formal process of ensuring that the organisation has qualified workers available at all levels to meet its short and long term objectives. 

 4. Directing :   

Directing is the managerial  functing concerned with the interpersonal aspect of managing by which sub-ordinates are led to understand and contribute efficiently to the attainment of enterprise objectives. 

 5. Coordinating :  

Coordinating is the process  of ensuring that persons who perform interdependent activities work togeter in a way that contributes to overall goal attainment. coordinating is the management  of interdependence in a work situation. 

 6. Reporting :  

Reporting serves the purpose of  keeping authorities and the public at large informed about the performance, achievements  and shortfalls for a specific period. 

7. Budgeting :  

Budgeting is a statement of planned allocation of resources expressed in financial or numerical terms. Budgeting includes financial planning, accounting and controlling. 

  Mayor Schools of Management Thought                                          

 The various approaches to the study of management  as propounded by specialists from different disciplines  have come to be called the schools of management thought, Koontz's has classified the management theories into the following six groups 

 1. The Management Process School :   

Henri Fayol is the futher of this school of thought. The other scholars associated with this school are J.D Mooray, A. C. Railay, Lyndall Urwick, Harold Koontz, McFarland. These scholars evolved certain principles having universal applicability.  These principles are equally applicable to all types of organizations, business government  or any other organization. This school considers management as a process of getting things done by people who operate in the organization. Management can best be studied in terms of process that it involves. The management process can be divided in five broad functions such as : planning, organizing, staffing, directing and controlling. It seeks to analyze the nature, purpose, structure and the underlying process of each of these functions. 

 2. The Empirical School :   

The empirical school of thought depends upon historical experience  and such a knowledge may not  be very useful under dynamic conditions and history does not exactly repeat itself. The past situation may not remain the same at persent. Moreover, if the study of experience is aimed at determining fundamentally  why something happened or did not happen, in many cases it is likely to be a useful and even a dangerous approach  to understand management. 

 3. The Human Behavioural School :  

Elton Mayo has been considered as the father of the human relations management. Which later became organizational behaviour. The other two important co-researchers of this school are F.J. Roethlisberger and William J. Dickson. They believed that organizations always involve interrelationships among members and that it is the managers role to see that relationships are as conflict free as possible, in order to accomplish the organization's objectives. They believed that the human aspects of business organisation had been largely ignored. They felt that satisfaction of psychological needs should be the primary concern of the management. 

  4. The Social Systems School :   

The social systems school is sociologically oriented and emphasizes group and individual behaviour in terms of cultural relationships and then looks at the ways in which these behavioural patterns interlock in a miniature social system. These aspects are covered under the behavioural school of neoclassical theory. This thought is closely linked to human behaviour school of though. In this approach, an organisation could be considered as a social system consisting of various groups of people. It is primarily  concerned with behaviour of people in groups. It thus tends to be based on sociology and social psychology rather than on individual  psychology. The founding father of this school of thought. Chester bernard viewed organisation as co-operative  system involving co-operation among a number of groups. If the groups do not co-operate in pursuit of achieving common objectives them the effectiveness of the organisation will be jeopardised. 

 5. The Decision Theory School :   

The decision theory school concentrates on logic and the rational process involved in decision making and believes that the more rational the decision is, the more efficient  and effective the organization will be. This school of thought is based on the belif that managers make decisions we should concentrate on decision making, whatever mangers do is the outcome of decisions made by them out of the alternatives available to them. 

  6. The Mathematical School :   

The mathematical approach does not differ much from the decision theory school and it is part of or even same as the management science.

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