Description of Module

Subject Name Human Resource Management

Paper Name Development of Management Thoughts, Principles and Types

Module Title Concept of Management

Module Id Module No. -1

Pre- Requisites Basic concept of Management

Objectives To understand the management concepts and fundamentals

Keywords Management, fundamentals, types, principles, scope of management

 QUADRANT-I

Module 2: Concept of Management

1.1 Learning Objective
1.2 Introduction
1.3 Definitions
1.4 Principles of Management
1.5 Levels of Management
1.6 Nature of Management
1.7 Scope of Management
1.8 Summary

Learning Objective

After completing this module, you will be able to:

1. To understand about management fundamentals
2. To inculcate professionalism in management practices
3. To get knowledge of management functions and applications

Introduction

A more elaborate definition given by George R. Terry. He defines management as a process

"consisting of planning, organizing, actuating and controlling, performed to determine and
accomplish the objectives by the use of people and resources." Firstly it considers management
as a "process," i.e. a systematic way of doing things. Secondly, it states four management
activities: Planning, organizing, actuating, and controlling. Planning is thinking of actions in
advance. Organizing is coordination of the human and material resources of an organization.
Actuating is motivation and direction of subordinates. Controlling means the attempt to ensure
no deviation from the norm or plan. Thirdly it states that manager uses people and other
resources. For example, a manager who wants to increase the sales might try not only to increase
the sales force but also to increase advertising budget. And fourthly, it states that management
involves the act of achieving the organization's objectives.

Concept
Definitions

“Management is the art of getting things done through others.” Follett describes management as
an art of directing the activities of other persons for reaching enterprise goals. It also suggests
that a manager carries only a directing function.

-Mary Parker Follett:

Harold Koontz:

“Management is the art of getting things done through and with people in formally organized
groups.” Koontz has emphasized that management is getting the work done with the co-operation
of people working in the organization.

J.D. Mooney and A.C. Railey:

“Management is the art of directing and inspiring people.” Management not only directs but
motivates people in the organization for getting their best for obtaining objectives.

As per the above-mentioned definitions, management is the art of getting things done through
people who may be managers or non-managers. At the level of chief executive, the work is
getting done through functional managers, at the middle level the things are implemented
through supervisors and at a lower level of management through workers. Human and technical
skills play an important role in getting things done. These definitions represent the traditional
viewpoint of management while workers are treated as a factor of production only. They are paid
wages for doing their work.

Management: Science, Art or Profession

Source: https://www.managementstudyguide.com/management_functions.htm

Management involves characteristics of both art and science. While certain aspects of
management make it a science, certain others which involve the application of skills make it art.
Every discipline of art is always backed by science which is basic knowledge of that art.
Similarly, every discipline of science is complete only when it is used in practice for solving
various kinds of problems. Whereas under "science" one normally learns the "why" of a
phenomenon, under "art" one learns the "how" of it. In the words of Robert H. Hilkert: "In the
area of management, science and art are two sides of the same coin".
Management as an Art

Management can be an art in the sense that it has the following characteristics:

 Just like other arts it has to be practised and performed. The knowledge should be learned
and practised, just as medical or legal practitioners practice their respective sciences.
 The manager gains experience by continual application of management knowledge and
facing new experiences. This helps to develop more skills and abilities for translating
knowledge into practice.
 Application calls for innovativeness and creativity.
 The fourth reason is that in many situations, theoretical knowledge of management
may not be adequate or relevant for solving the problem. It may be because of
complexity or unique nature of the problem.

The art is in knowing how to accomplish the desired results. This implies that there exists a body
of knowledge which management uses to accomplish the desired results in organization

Management as a Science

Management as a science has the following characteristics:

 Its principles, generalizations and concepts are systematic. In this case, the manager can
manage the situation or organization systematically and scientifically.
 Its principles, generalizations and concepts are formulated by observation, research,
analysis and experimentation, as is the case with the principles of other sciences.
 Like other sciences, management principles are also based on the relationship of cause
and effect. It states that same cause under similar circumstance will produce the same
effect. Suppose if workers are paid more (cause), the produce more (effect).
 Management principles are codified and systematic, and can be transferred from one to
another and can be taught.
 Management principles are universally applicable to all types of organizations.

There is no tailor-made answer to a question- Is management science or art? To ascertain the

nature of management concerning science or art, there is a need to know the exact meaning of
the words 'science' or 'art' and subsequently, their application to management.

Management: A profession?

The following criteria identify the status of a profession to management:

 The profession is a body of specialized knowledge.

 Professional knowledge in systemized and codified form can be learned through the
formal education system.
 A profession emphasizes on having a central body to formulate a code of behaviour for
its members.
 A profession calls for rendering competent and specialized services to clients.
  A profession maintains the scientific attitude and commitment for discovering new ideas
and upgrading to improve quality of service and level of efficiency provided to clients.
 A profession requires members to exercise restraint and self-discipline.

Management knowledge meets the first two criteria because it has grown into a systematic body
of knowledge and also it can be acquired and learned through the formal education.

There is no minimum qualification prescribed either for getting an entry in the management
profession or for becoming members of it. In practice, whosoever manages known as a manager,
irrespective of qualifications. Peter Drucker in support of this view says that "no greater damage
could be done to our economy or our society than to attempt to professionalize management by
licensing managers, for instance, or by limiting access to management to people with a special
academic degree."

Regarding professional approach, a manager has to continuously strive for discovering new
ideas, relationships and concepts and act in a dynamic and innovative manner to cope with the
changing environment. Even so, managers are not respected as other professionals like doctors,
advocates and chartered accountants.

There are five concepts of management. They are:

1. Functional concept

Management is the task of planning, coordinating, motivating and controlling the efforts of other
towards the goals and objectives of the organization. According to this concept, management is
what a manager does (planning, executing, and controlling)

2. Human relation concept

According to this concept, Management is the art o getting things done through and with people
in organized groups. It is the art of creating an environment in which people can perform, and
individuals could cooperate towards attaining of group goals. It is an art of removing blanks to
such performance a way of optimizing efficiency in reaching goals.

3. Leadership and decision-making concept

According to this concept, management is the art and science of preparing, organizing, directing
human efforts applied to control the forces and utilize the materials of nature for the benefits to
man.

4. Productive concept
According to this concept, management may be defined as the art of securing maximum
prosperity with a minimum effort to secure maximum prosperity and happiness for both
employer n employee and provide best services thereby.

5. Integration concept

According to this concept, management is the coordination of human and material resources
towards the achievement of organizational objectives as well as the organization of the
productive functions essential for achieving stated or accepted economic goal.
This above definition of management, given by different writers and authorities, are found giving
different senses. Virtually, the five concepts are found developed by the authorities emphasizing
in different aspects. However, it has been realized by many that it will not be fair to define
management based on any one aspect. Management can be taken as a process-managerial
process or social process either engage in planning, organizing, staffing, directing and
controlling or mobilizing the group activities to achieve the corporate goals.

PRINCIPLES OF MANAGEMENT

A principle is a fundamental truth about a phenomenon which explains and establishes a cause-
effect relationship. These principles are derived from observation, experiments, experience and
analysis of events. These principles serve as guides to thought and action. A body of interrelated
principles dealing with the same subject matter constitutes a theory thus the theory of
management consists of some principles, duly recognized and systematized and concerned with
the management of an organization.

Management principles are stat elements of truth that explain and establish a cause-effect
relationship between various variables and enable a manager to perform the functions
successfully and serve as guides to run the organization properly; these principles are practical
guidelines for managerial thinking decision-making and action behaviour.

 Management principles are universal and apply to all types of organization business or
non-business government or private enterprises.
 Management principles are flexible and not rigid. They are capable of adapting to every
need. They can be modified as per requirements of the situation and environment,
through providing useful guidelines for future course of action
 Many management principles are not standardized. They are concerned with human
behaviour, which is not standardized and is highly unpredictable. So management
principles hold good in a large number of situations and need to be modified in specific
conditions. That is why the management is regarded as inexact of a soft science.
 Management principles are not only descriptive but are predictive or normative also
 Management principles are equally significant. No principle can be said to have greater
importance than the other

Some thinkers, philosophers and practitioners have contributed to the evolvement of principles
of management during the 19th and 20th century, but two prominent names among the pioneers
are F M Taylor and Henri Fayol.

5 Functions of Management

Effective management and leadership involve creative problem solving, motivating employees
and making sure the organization accomplishes objectives and goals. There are five functions of
management and leadership: planning, organizing, staffing, coordinating and controlling. These
functions separate the management process from other business functions such as marketing,
accounting and finance.

Planning
The planning function of management controls all the planning that allows the organization to
run smoothly. Planning involves defining a goal and determining the most effective course of
action needed to reach that goal. Typically, planning involves flexibility, as the planner must
coordinate with all levels of management and leadership in the organization. Planning also
involves knowledge of the company’s resources and the future objectives of the business.

Organizing
The organizing function of leadership controls the overall structure of the company. The
organizational structure is the foundation of a company; without this structure, the day-to-day
operation of the business becomes difficult and unsuccessful. Organizing involves designating
tasks and responsibilities to employees with the specific skill sets needed to complete the tasks.
Organizing also involves developing the organizational structure and chain of command within
the company.

Staffing
The staffing function of management controls all recruitment and personnel needs of the
organization. The main purpose of staffing is to hire the right people for the right jobs to achieve
the objectives of the organization. Staffing involves more than just recruitment; staffing also
encompasses training and development, performance appraisals, promotions and transfers.
Without the staffing function, the business would fail because the business would not be properly
staffed to meet its goals.

Coordinating
The coordinating function of leadership controls all the organizing, planning and staffing
activities of the company and ensures all activities function together for the good of the
organization. Coordinating typically takes place in meetings and other planning sessions with the
department heads of the company to ensure all departments are on the same page in terms of
objectives and goals. Coordinating involves communication, supervision and direction by
management.

Controlling
The controlling function of management is useful for ensuring all other functions of the
organization are in place and are operating successfully. Controlling involves establishing
performance standards and monitoring the output of employees to ensure each employee’s
performance meets those standards. The controlling process often leads to the identification of
situations and problems that need to be addressed by creating new performance standards. The
level of performance affects the success of all aspects of the organization.

Levels of management

To go on a deeper level, management can be defined as art and skill of getting things done
through others is called management. George R Terry gives more elaboration. According to
Terry-“management is the distinct process consisting of planning, organizing, activating, and
controlling activities performed to determine and accomplishes the objectives by the use of
people and resources.” If we give our attention towards the definition, we find that terry
perceives the management as a process a systematic way of doing things. The four management
activities are included in the process, and they are planning, organizing, activating and
controlling.
MANAGEMENT = MANAGE+MEN+T (TACTFULLY)
Most organizations have three management levels:

 Low-level managers;
 Middle-level managers; and
 Top-level managers.

These managers are classified in a hierarchy of authority and perform different tasks. In many
organizations, the number of managers in every level resembles a pyramid.

Below, you'll find the specifications of each level's different responsibilities and their likely job
titles.

Top-level managers

The board of directors, president, vice-president, and CEO are all examples of top-level
managers.
These managers are responsible for controlling and overseeing the entire organization. They
develop goals, strategic plans, company policies, and make decisions in the direction of the
business.

Also, top-level managers play a significant role in the mobilization of outside resources.

Top-level managers are accountable to the shareholders and the general public.

Middle-level managers

General managers, branch managers, and department managers are all examples of middle-level
managers. They are accountable to the top management for their department's function.

Middle-level managers devote more time to organizational and directional functions than top-
level managers. Their roles can be emphasized as:

 Executing organizational plans in conformance with the company's policies and the
objectives of the top management;
 Defining and discussing information and policies from top management to lower
management, and most importantly
 Inspiring and guiding low-level managers towards better performance.

Some of their functions are as follows:

 Designing and implementing effective group and intergroup work and information
systems;
 Defining and monitoring group-level performance indicators;
 Diagnosing and resolving problems within and among work groups;
 Designing and implementing reward systems supporting cooperative behaviour.

Low-level managers

Supervisors, section leads, and foremen are examples of low-level management titles. These
managers focus on controlling and directing.

Low-level managers usually have the responsibility of:

 Assigning employees tasks;

 Guiding and supervising employees on day-to-day activities;
 Ensuring the quality and quantity of production;
 Making recommendations and suggestions; and
 Upchanneling employee problems.

Also referred to as first-level managers, low-level managers are role models for employees.
These managers provide:
  Basic supervision;
 Motivation;
 Career planning;
 Performance feedback; and
 Staff supervision.

Nature of Management

Goal oriented: The most important goal of all management activity is to accomplish the
objectives of an enterprise. The goals should be realistic and attainable.

Supreme in thought and action: Managers set realizable objectives and then mastermind action
on all fronts to accomplish them. For this, they require full support form middle and lower levels
of management.

Group activity: All human and physical resources should be efficiently coordinated to attain
maximum levels of combined productivity. Without coordination, no work would accomplish,
and there would be chaos and retention.

Dynamic function: Management should be equipped to face the changes in business

environment brought about by economic, social, political, technological or human factors. They
must be adequate training so that can enable them to perform well even in critical situations.

Social science: All individuals that a manager deals with, have different levels of sensitivity,
understanding and dynamism.

An important organ of society: Society influences managerial action and managerial actions
influence society. Its manager's responsibility that they should also contribute towards the
society by organizing charity functions, sports competition, a donation to NGO’s etc.

The system of authority: Well-defined lines of command, a delegation of suitable authority and
responsibility at all levels of decision-making. This is necessary so that each should what is
expected from him and to whom he needs to report to.

Profession: Managers need to possess managerial knowledge and training, and have to conform
to a recognized code of conduct and remain conscious of their social and human obligations.

Process: The management process comprises a series of actions or operations conducted towards
an end.

Scope of Management
Although it is difficult to define the scope of management precisely, yet the following areas are
included in it:

1. Subject-matter of management: Planning, organizing, directing, coordinating and

controlling are the activities included in the subject matter of management.

2. Functional areas of management: These include:

Financial management includes accounting, budgetary control, quality control, financial

planning and managing the overall finances of an organization.

Personnel management includes recruitment, training, transfer promotion, demotion,

retirement, termination, labor-welfare and social security industrial relations.

Purchasing management includes inviting tenders for raw materials, placing orders, entering
into contracts and materials control.

Production management includes production planning, production control techniques, quality

control and inspection and time and motion studies.

Maintenance management involves proper care and maintenance of the buildings, plant and
machinery.

Transport management includes packing, warehousing and transportation by rail, road and air.

Thus,

Summary : Management is a universal phenomenon

The very survival of human being down the ages have depended on his skill for managing the
resources at his command. Management is relevant even to the personal life of an individual.

A successful man in any walk of life knows how to manage his affairs [i.e.] he is capable of
getting the utmost out of his time, money, energy, and social connections.

A student, a businessman, a housewife and others know the art of management. But generally,
the management means utilization of group effort. This effort is to accomplish for reaching a
certain goal.