Full Detail Regarding to Management
Management (or managing)
is the administration of organizations, whether businesses, nonprofit organizations,
or government
bodies through business administration, nonprofit
management, or the political
science sub-field of public administration respectively.
It is the process of managing the resources of businesses, governments, and
other organizations.
Larger organizations generally have three hierarchical levels
of managers, organized
in a pyramid structure:
·
Senior
management roles include the board of directors and
a chief executive officer (CEO)
or a president of
an organization. They set the strategic goals and policy of the organization
and make decisions on how the overall organization will operate. Senior
managers are generally executive-level professionals who provide direction to
middle management. Compare governance.
·
Middle
management roles include branch managers,
regional managers, department managers, and section managers. They provide
direction to front-line managers and communicate the strategic goals and
policies of senior management to them.
·
Line
management roles include supervisors and
the frontline managers or team leaders who oversee the
work of regular employees, or volunteers in some voluntary organizations, and
provide direction on their work. Line managers often perform the managerial
functions that are traditionally considered the core of management. Despite the
name, they are usually considered part of the workforce and not part of the
organization's management class.
Management is taught - both as a theoretical subject
as well as a practical application - across different disciplines at colleges
and universities. Prominent major degree-programs in management include Management, Business Administration and Public Administration. Social
scientists study management as an academic discipline,
investigating areas such as social organization, organizational adaptation,
and organizational leadership. In
recent decades, there has been a movement for evidence-based management.
Etymology
The English verb manage has its
roots in the fifteenth-century French verb mesnager, which often referred
in equestrian language
"to hold in hand the reins of a horse". Also
the Italian term maneggiare (to handle,
especially tools or a horse) is possible. In Spanish, manejar can also mean to
rule the horses. These
three terms derive from the two Latin words manus (hand) and agere (to act).
The word management dates back to
the 1590s, when it was first used to mean "the act of managing by
direction or manipulation," formed from manage plus the suffix -ment. By
the 1670s, it had also come to describe "the act of managing by physical
manipulation." Later, in 1739, the word became increasingly used to refer
to "a governing body" or "the directors of an undertaking
collectively," a sense that originally applied to theaters.
Definitions
Views
on the definition and scope of management include:
·
Henri
Fayol (1841–1925) stated: "To manage
is to forecast and to plan, to organize, to command, to co-ordinate and to
control".
·
Fredmund
Malik (born 1944) defines management as
"the transformation of resources into utility".
·
Ghislain Deslandes defines
management as "a vulnerable force, under pressure to achieve results and
endowed with the triple power of constraint, imitation, and imagination,
operating on subjective, interpersonal,
institutional and environmental levels".
·
Peter
Drucker (1909–2005) saw the basic task of
management as twofold: marketing and innovation.
Theoretical scope
Management involves identifying the mission,
objective, procedures,
rules and manipulation of
the human
capital of an enterprise to
contribute to the success of the enterprise. Scholars
have focused on the management of individual, organizational, and
inter-organizational relationships. This implies effective communication:
an enterprise environment (as opposed to a physical or mechanical mechanism)
implies human motivation and
implies some sort of successful progress or system outcome. As
such, management is not the manipulation of a mechanism (machine or automated
program), not the herding of animals, and can occur either in a legal or in an
illegal enterprise or environment. From an individual's perspective, management
does not need to be seen solely from an enterprise point of view, because
management is a function in improving one's life and relationships. Management
is seen in various parts of society.Plans, measurements,
motivational psychological tools,
goals, and economic measures (profit, etc.) may or may not be necessary
components for there to be management. At first, one views management
functionally, such as measuring quantity, adjusting plans,
and meeting goals, but
this applies even in situations where planning does not take place. From this
perspective, Henri
Fayol (1841–1925) considers
management to consist of five functions:
·
planning (forecasting)
·
organizing
·
commanding
·
coordinating
·
controlling
In another way of thinking, Mary Parker Follett (1868–1933),
allegedly defined management as "the art of getting things done through
people". She
described management as a philosophy.
Some scholars however find this definition useful but
far too narrow. The phrase "management is what managers do" occurs
widely, suggesting
the difficulty of defining management without circularity,
the shifting nature of definitions[citation needed] and
the connection of managerial
practices with the existence of a managerial
cadre or of a class.
One habit of thought regards management as equivalent
to "business administration"
and thus excludes management in places outside commerce,
for example in charities and
in the public
sector. More broadly, every organization must
"manage" its work, people, processes, technology, etc. to maximize
effectiveness. Nonetheless, many people refer to university departments
that teach management as "business schools".
Some such institutions (such as the Harvard Business School)
use that name, while others (such as the Yale School of Management)
employ the broader term "management".
English speakers may also use the term
"management" or "the management" as a collective word
describing the managers of an organization, for example of a corporation. Historically
this use of the term often contrasted with the term labor –
referring to those being managed.
Levels
An organization chart for the United States Coast Guard shows the hierarchy of managerial roles in that
organization.
Top management
The board of directors is typically primarily
composed of non-executives who owe a fiduciary duty to
shareholders and are not closely involved in the day-to-day activities of the
organization. However, this varies depending on the type (e.g., public versus
private), size, and culture of the organization. These directors are
theoretically liable for breaches of that duty and are typically insured
under directors and officers
liability insurance. Fortune 500 directors are
estimated to spend 4.4 hours per week on board duties, and median compensation
was $212,512 in 2010. The board sets corporate strategy, makes major decisions
such as major acquisitions, and
hires, evaluates, and fires the top-level manager (chief executive officer or
CEO). The CEO typically hires other positions. However, board involvement in
the hiring of other positions such as the chief financial officer (CFO)
has increased. In
2013, a survey of over 160 CEOs and directors of public and private companies
found that the top weaknesses of CEOs were "mentoring skills"
and "board engagement", and 10% of companies never evaluated the CEO. The
board may also have certain employees (e.g., internal
auditors) report to them or directly hire
independent contractors;
for example, the board (through the audit
committee) typically selects the auditor.
Helpful skills for top management vary by the type of
organization but typically include a broad understanding of competition, world
economies, effective planning, and politics. In
addition, the CEO is responsible for implementing and determining (within the
board's framework) the broad policies of the organization. Executive management
accomplishes the day-to-day details, including instructions for the preparation
of department budgets, procedures, and schedules; appointment of middle-level
executives such as department managers; coordination of departments; media and
governmental relations; and shareholder communication.
Line management
Line managers include supervisors,
section leaders, forepersons, and team leaders. They focus on controlling and
directing regular employees, either in direct service delivery or in back-office areas
of work. They are usually responsible for assigning employees tasks, guiding
and supervising employees on day-to-day activities, ensuring the quality and
quantity of production and/or service, making recommendations and suggestions
to employees on their work, and channeling employee concerns that they cannot
resolve to mid-level managers or other administrators. Low-level, frontline or
"front-line" managers also act as role
models for their team members. Deficits in
frontline management can impact critically on service delivery and customer
satisfaction.
Training and
education
Colleges and universities worldwide offer bachelor's
degrees, graduate programs, diplomas, and professional certificates in
management. These are most commonly housed within colleges of business,
business schools, or faculties of management, but may also be offered in
related departments such as economics, public policy, or the social sciences.
Scholars have argued that higher education played a
central role in the so-called "managerial revolution" of the 20th
century, by formalizing managerial skills and expanding the professionalization
of management as a discipline.
Undergraduate
At the undergraduate level, the most common business
programs are the Bachelor of Business
Administration (BBA) and Bachelor of Commerce (B.Com.).
These typically comprise a four-year program designed to give students an
overview of the role of managers in planning and directing within an
organization. Course topics include accounting, financial management,
statistics, marketing, strategy, and other related areas.
Many other undergraduate degrees include the study of
management, such as Bachelor
of Arts and Bachelor of Science degrees
with a major in business administration or
management and the Bachelor
of Arts (BA) or Bachelor of Science (BS)
in political
science (PoliSci) with a concentration
in public administration or
the Bachelor of Public Administration (B.P.A), a degree designed for
individuals aiming to work as bureaucrats in the government jobs.
Many colleges and universities also offer certificates and diplomas in business
administration or management, which typically require one to two years of
full-time study.
To manage technological areas, one often needs an
undergraduate degree in a STEM
area.
Graduate
At the graduate level students aiming at careers as
managers or executives may choose to specialize in major subareas of management
or business administration such as entrepreneurship, human
resources, international business, organizational behavior, organizational theory, strategic management, accounting, corporate
finance, entertainment, global management, healthcare management, investment management,
sustainability and real
estate.
Good practices
While management trends can change fast, the
long-term trend in management has been defined by a market embracing diversity
and a rising service industry. Managers are currently being trained to
encourage greater equality of opportunities for
minorities and women in the workplace, offering increased flexibility in
working hours, better retraining, and innovative (and usually
industry-specific) performance markers. Managers destined for the service
sector are being trained to use unique measurement techniques, better worker
support, and more charismatic leadership styles. Promotion prospects
can incentivise performance
improvements. Human
resources finds itself increasingly working
with management in a training capacity to help collect management data on the
success (or failure) of management actions with employees.
Good practices identified for managers include
"walking the shop floor", and,
especially for managers who are new in post, identifying and achieving some
"quick wins" which demonstrate visible success in establishing
appropriate objectives. Leadership writer John Kotter uses the phrase
"Short-Term Wins" to express the same idea. As
in all work, achieving an appropriate work-life
balance for self and others is an important
management practice.
Evidence-based
management
Evidence-based management is
an emerging movement to use the current, best evidence in management and decision-making.
It is part of the larger movement towards evidence-based practices.
Evidence-based management entails managerial decisions and organizational
practices informed by the best available evidence. As
with other evidence-based practice, this is based on the three principles of
published peer-reviewed (often in management or social science journals)
research evidence that bears on whether and why a particular management
practice works; judgment and experience from contextual management practice, to
understand the organization and interpersonal dynamics in a situation and
determine the risks and benefits of available actions; and the preferences and
values of those affected.
History
Some see management as a late-modern (in the sense of
late modernity)
conceptualization. With
the changing workplaces of the Industrial Revolution in
the 18th and 19th centuries, military theory
and practice contributed approaches to managing the newly popular factories.
Early writing
Written in 1776 by Adam
Smith, a Scottish moral
philosopher, The Wealth of Nations discussed
efficient organization of work through division of labour. Smith
described how changes in processes could boost productivity in the manufacture
of pins.
While individuals could produce 200 pins per day, Smith analyzed the steps
involved in the manufacture and, with 10 specialists, enabled the production of
48,000 pins per day.
19th century
Classical economists such as Adam
Smith (1723–1790) and John
Stuart Mill (1806–1873) provided a theoretical
background to resource allocation, production (economics),
and pricing issues.
About the same time, innovators like Eli Whitney (1765–1825), James
Watt (1736–1819), and Matthew
Boulton (1728–1809) developed elements of
technical production such as standardization, quality-control procedures, cost-accounting,
interchangeability of parts, and work-planning.
Many of these aspects of management existed in the pre-1861 slave-based sector
of the US economy. That environment saw 4 million people, as the contemporary
usages had it, "managed" in profitable quasi-mass
production before wage
slavery eclipsed chattel slavery.
Salaried managers as an identifiable group first
became prominent in the late 19th century. As
large corporations began to overshadow small family businesses the need for
personnel management positions became more necessary. Businesses
grew into large corporations and the need for clerks, bookkeepers, secretaries
and managers expanded. The demand for trained managers led college and
university administrators to consider and move forward with plans to create the
first schools of business on their campuses.
20th century
Frederick
Winslow Taylor circa 1907
At the turn of the twentieth century, the need for
skilled and trained managers had become increasingly apparent.
The
demand occurred as personnel departments began to expand rapidly. In 1915, less
than one in twenty manufacturing firms had a dedicated personnel department. By
1929 that number had grown to over one-third. Formal
management education became standardized at colleges and universities. Colleges
and universities capitalized on the needs of corporations by forming business
schools and corporate-placement departments. This
shift toward formal business education marked the creation of a corporate élite
in the US.
By about 1900 one finds managers trying to place
their theories on what they regarded as a thoroughly scientific basis
(see scientism for
perceived limitations of this belief). Examples include Henry
R. Towne's Science of management in
the 1890s, Frederick Winslow Taylor's The Principles of
Scientific Management (1911), Lillian Gilbreth's Psychology
of Management (1914), Frank and Lillian Gilbreth's Applied
motion study (1917), and Henry L. Gantt's
charts (1910s). J. Duncan wrote the first college management textbook in
1911. In 1912 Yoichi
Ueno introduced Taylorism to Japan and
became the first management consultant of
the "Japanese management style".
His son Ichiro Ueno pioneered Japanese quality
assurance.
The first comprehensive theories of management
appeared around 1920. The Harvard Business School offered
the first Master of Business
Administration degree (MBA) in 1921. People
like Henri
Fayol (1841–1925) and Alexander Church (1866–1936)
described the various branches of management and their inter-relationships. In
the early 20th century, people like Ordway Tead (1891–1973), Walter
Scott (1869–1955) and J. Mooney applied
the principles of psychology to
management. Other writers, such as Elton Mayo (1880–1949), Mary
Parker Follett (1868–1933), Chester
Barnard (1886–1961), Max
Weber (1864–1920, who saw what he called
the "administrator" as bureaucrat,), Rensis Likert (1903–1981),
and Chris
Argyris (born 1923) approached the
phenomenon of management from a sociological perspective.
Peter
Drucker (1909–2005) wrote one of the
earliest books on applied management: Concept of the Corporation (published
in 1946). It resulted from Alfred Sloan (chairman
of General Motors until
1956) commissioning a study of the organization. Drucker went on to
write 39 books, many in the same vein.
H. Dodge, Ronald Fisher (1890–1962),
and Thornton C. Fry introduced statistical techniques into management studies.
In the 1940s, Patrick Blackett worked
in the development of the applied-mathematics science of operations research,
initially for military operations. Operations research, sometimes known as
"management science"
(but distinct from Taylor's scientific management),
attempts to take a scientific approach
to solving decision-problems and can apply directly to multiple management
problems, particularly in the areas of logistics and operations.
Some of the later 20th-century developments include
the theory of constraints (introduced
in 1984), management by objectives (systematized
in 1954), the Harzburg Model [de] (developed
by Reinhard
Höhn in post-war Germany), re-engineering (the
early 1990s), Six
Sigma (1986), management by walking around (1970s),
the Viable system model (1972),
and various information-technology-driven
theories such as agile software development (so-named
from 2001), as well as group-management theories such as Cog's
Ladder (1972) and the notion of "thriving
on chaos" (1987).
As the general recognition of managers as a class
solidified during the 20th century and gave perceived practitioners of the
art/science of management a certain amount of prestige, so the way opened
for popularised systems of management
ideas to peddle their wares. In this context, many management
fads may have had more to do with pop
psychology than with scientific theories of
management.
Business
management includes the following branches:
4. information technology
management (responsible for management information
systems )
6. operations management and production management
21st century
Branches of management theory also exist relating
to nonprofits and
to government: such as public administration, public
management, and educational management.
Further, management programs related to civil society organizations
have also spawned programs in nonprofit management and social entrepreneurship.
Many of the assumptions made by management have come
under attack from business-ethics viewpoints, critical management studies,
and anti-corporate activism.
This could include violations to a company’s ethics
policy.
As one consequence, workplace democracy (sometimes
referred to as Workers' self-management)
has become both more common and more advocated, in some places distributing all
management functions among workers, each of whom takes on a portion of the
work. However, these models predate any current political issue and may occur
more naturally than does a command hierarchy.
Nature of work
In profitable organizations, management's primary
function is the satisfaction of a range of stakeholders.
This typically involves making a profit (for the shareholders), creating valued
products at a reasonable cost (for customers), and providing great employment
opportunities for employees. In case of nonprofit management, one of the main
functions is, keeping the faith of donors. In most models of management
and governance,
shareholders vote for the board of directors,
and the board then hires senior management. Some organizations have
experimented with other methods (such as employee-voting models) of selecting
or reviewing managers, but this is rare.
Topics
Basics
According to Fayol, management operates
through five basic functions: planning, organizing, commanding, coordinating
and controlling.
·
Planning:
Deciding what needs to happen in the future and generating action plans
(deciding in advance).
·
Organizing (or
staffing): Making sure the human and nonhuman resources are put into place.
·
Commanding (or
leading): Determining what must be done in a situation and getting people to do
it.
·
Coordinating:
Creating a structure through which an organization's goals can be accomplished.
·
Controlling:
Checking progress against plans.
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managers are necessary to coordinate the different roles that contribute to the
production process and to mediate communication from the head office to the shop
floor and back. This style of management assumes a world view in which the
bureaucratic role is seen as separate from, and taking precedence over, other
constructions of self (including the obligations of citizenship), at least for
the working day.
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April 2025. Original management models, such as the Harzburg model,
also had a great effect. [...] Many firms found this model attractive; after
the 1950s and 1960s, it was widely adopted in Germany [...].
Avram, Elena; Avasilcai, Silvia;
Bujor, Adriana (23 April 2025). "Elements of the Harzburg Management Model
as a vector for Increasing Employee Motivation". In Prostean, Gabriela I.;
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April 2025. [...] six central elements of the Harzburg Model:
leadership principles, decentralization of the decision-making process,
communication pattern, job description, delegation of responsibility and
employee's development and organizational support.
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