Introduction to Management

Nisha  Clement

Section 1

1Management

Learning Objectives

Introduction to Management: Star wars of management, concept, scope, need, characteristics and level of management, difference between management and administration, management skills and roles.
Principles and Theories of Management: Management process, principles of management, theories of management, implication of management and theories in nursing.
Functions and Factors of Management: Elements, classification of management functions, POSDCORB and factors affecting on management.
Nurse Manager: Qualities of Nurse Manager, functions, common characteristics of Nurse Manager, Nurse Manager job duties and role of the manager, essential skills required for manager.
Nursing Management: Nursing management roles, mission and vision statement of nursing management, philosophy of nursing management and goals of nursing management.2

Introduction to ManagementCHAPTER 1

INTRODUCTION

Management is often included as a factor of production along with machines, materials and money. According to the management guru peter, Drucker (1909–2005), the basic task of management includes both marketing and innovation. Practice of modern management originates from the 16th century study of low efficiency and failures of certain enterprise, conducted by the English statesman Sir Thomas More (1478–1535). Management consists of the interlocking functions of creating corporate policy and organizing, planning, controlling and directing organizations resources in order to achieve the objectives of that policy.

Management can be defined as art and skill of getting things done through others is called management (Fig. 1.1). More elaboration is given by George R Terry. 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.”

DEFINITIONS

Management is an art of knowing what is to be done and seeing that it is done in the best possible manner (planning and controlling).

—Taylor FW
Management is to forecast, plan, organize, command, coordinate and control activities of others.

—Henri Fayol
Management is the process by which cooperative group directs actions towards common goals.

—Joseph Massie
Management is that process by which managers create, direct, maintain and operate purposive organization through systematic, coordinated and cooperative human efforts.

—McFarland
Management is the coordination of all resources through the process of planning, organizing, directing and controlling in order to attain stated goals.

—Henry Sisk
Management is a social and technical process that utilizes resources, influences human action and facilitates changes in order to accomplish an organization's goals.

—Tho Harmann, William Scott
Management is a process of working with and through others to achieve organizational objectives in a changing environment, central to this purpose is the effective and efficient use of limited resources.

—Rovert Kreitner
Management may be defined as the art of securing maximum results with a minimum of effort so as to secure maximum prosperity and happiness for both employer and employee and give the public the best possible service.

—John Mee

Figure 1.1: Standards of management

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Management is distinct process consisting of planning, organizing, actuating, activating and controlling, performed to determine and accomplish the objectives by the use of people and resources.

—George

HISTORY OF STAR WARS OF MANAGEMENT (Table 1.1)

Table 1.1 History of star wars of management

Sl No.	Contributors	Description
1.	Frederick Winslow Taylor (1856–1915)	Frederick Winslow Taylor was an American inventor and engineer that applied his engineering and scientific knowledge to management and developed a theory called scientific management theory. His two most important books on his theory are Shop Management (1903) and The Principles of Scientific Management (1911). Frederick Taylor's scientific management theory can be seen in nearly all modern manufacturing firms and many other types of businesses. His imprint can be found in production planning, production control, process design, quality control, cost accounting and even ergonomics. If you understand the principles of scientific management, you will be able to understand how manufacturers produce their goods and manage their employees. You will also understand the importance of quantitative analysis, or the analysis of data and numbers to improve production effectiveness and efficiency.
2.	Henry Laurence Gantt (1861–1919)	Henry Laurence Gantt's legacy to management is the Gantt Chart. Accepted as a commonplace project management tool today, it was an innovation of world-wide importance in the 1920s. But the chart was not Gantt's only legacy; he was also a forerunner of the Human Relations School of management and an early spokesman for the social responsibility of business. Gantt is often seen as a disciple of Taylor and a promoter of the scientific school of management. In his early career, the influence of Taylor and Gantt's aptitude for problem-solving, resulted in attempts to address the technical problems of scientific management. Like Taylor, Gantt believed that it was only the application of scientific analysis to every aspect of work, which could produce industrial efficiency, and that improvements in management came from eliminating chance and accidents. Gantt made four individual and notable contributions.
3.	Harrington Emerson (1853–1931)	Harrington Emerson (August 2, 1853 to September 2, 1931) was an American efficiency engineer and business theorist who founded the management consultancy firm Emerson Institute in New York city in 1900. He is known for his pioneering contributions to scientific management, where he developed a contrasting approach to efficiency. Harrington Emerson (1853–1931) was one of America's pioneers in industrial engineering and management, and organizational theory. His major contributions were to install his management methods at many industrial firms and to promote the ideas of scientific management and efficiency to a mass audience. One of the most erudite and cosmopolitan personalities associated with the scientific management movement, Emerson established a modestly successful consulting business as an ‘efficiency engineer’, an author of books on industrial efficiency, and a promoter and popularize of the movement.
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4.	Charles Babbage (1792–1871)	Charles Babbage (1792–1871) is known as the patron saint of operations research and management science. Babbage's scientific inventions included a mechanical calculator (his ‘difference engine’), a versatile computer (his ‘analytical engine’), and a punch card machine. Babbage's most successful book, On the Economy of Machinery and Manufacturers, published in 1832, described the tools and machinery used in English factories. It discussed the economic principles of manufacturing and analyzed the operations; the skills used and suggested improved practices. He showed that reducing the tasks of manufacturing to their simplest activities increases the numbers of people who can do them and thus reduces the average wage, which needs to be paid. According to him, a work should be divided into mental and physical efforts, and a worker should be paid a bonus in proportion to his own efficiency and success of the business.
5.	Henri Fayol (1841–1925)	Henri Fayol, a French industrialist, is now recognized as the Father of Modern Management. In year 1916 Fayol wrote a book entitled ‘Industrial and General Administration’. In this book, he gave the 14 principles of management. These 14 principles of management are universally accepted and used even today. According to Henri Fayol, all managers must follow these 14 principles. Students of the history of management thought will be familiar with the name ‘Henri Fayol’. References to his name are found quite frequently in management texts and Ansoff has argued that Fayol ‘anticipated imaginatively and soundly most of the more recent analyses of modern business practice’. The purpose of this brief guide is to introduce some of the works by and about Henri Fayol.
6.	Max Weber (1864-1920)	Max Weber was the first to observe and write on bureaucracies, which developed in Germany during the 19th century. He considered them to be efficient, rational and honest, a big improvement over the haphazard administration that they replaced. The German government was better developed than those in the United States and Britain, and was nearly equal to that of France. Max Weber holds a leading position. He was the first to use the term ‘bureaucracy’ as well as the first to analyze it comprehensively. Indeed analysts today speak of a ‘Weberian bureaucracy’, meaning one that fits his ideal type closely. On the other hand, many have found negative features about bureaucracy. It can over conform to its rules and procedures, treating an individual such as a number and generating red tape. It can ignore the wishes of elected leaders. It can displace goals, perhaps advancing the interests of the employees rather than the people, it is supposed to serve. Weber ignores the issue of democratic control of bureaucracy.
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7.	James D Mooney (1884–1957)	Mooney studied mechanical engineering and eventually became a key member of General Motors’ top management team. In 1931, he wrote ‘Onward Industry’. The book is considered by many scholars to be a significant contribution to administrative management theory. James D Mooney (18 February 1884 to 21 September 1957) was an engineer and corporate executive at General Motors who played a role in international affairs in the 1930s and early 1940s. His career was disrupted when he was accused of Nazi sympathies in 1940.
8.	Mary Parker Follett (1868–1933)	Follett defined management as ‘the art of getting things done through people’. Her ideas are contradictory to the idea of scientific management, as she believed that managers and subordinates should fully collaborate. Power is central to her ideas. Power is created and organized by organizations, and according to her it is legitimate and inevitable. Regarding to power, Follett used the term ‘integration’, to refer to non-coercive power-sharing based on the use of her concept of ‘power with’ rather than ‘power over’. Her ideas were formulated in three principles: Functions are specific task areas within organizations. The appropriate degree of authority and responsibility should be allocated to them, so tasks can be accomplished. Responsibility is expressed in terms of an empirical duty; people should manage their responsibility on the basis of evidence and should integrate this effectively with the functions of others. Authority flows from an entitlement to exercise power, which is based upon legitimate authority.
9.	Lewin Kurt (1890–1947)	In 1946, social scientist Kurt Lewin launches the Research Center for Group Dynamics at the Massachusetts Institute of Technology. His contributions in change theory, action research and action learning earn him the title of the ‘father of organization development’. Field Theory: Influenced by Gestalt psychology, Lewin developed a theory that emphasized the importance of individual personalities, interpersonal conflict and situational variables. Lewin's field theory proposed that behavior is the result of the individual and the environment. This theory had a major impact on social psychology, supporting the notion that our individual traits and the environment interact to cause behavior. Lewin is best known for his work in the field of organization behavior and the study of group dynamics. His research discovered that learning is best facilitated when there is a conflict between immediate concrete experience and detached analysis within the individual. His cycle of action, reflection, generalization and testing is characteristic of experiential learning.
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10.	Douglas McGregor (1932)	He conducted pioneering study in the field of industrial relations. Douglas McGregor remains one of the most influential thinkers in the sphere of human relations. His concepts of Theory X and Theory Y introduced a new philosophy to motivational thinking with. Theory X assumed that workers were inherently lazy and needed to be supervised and motivated. This was the conventional managerial thinking at the time. ‘Theory Y was based on the principle that people want and need to work, want to be given responsibility, and should be encouraged to take it and commit themselves actively to the objectives of the organizations they work for. It underlay the thinking of the human relations school of management that developed and flourished in the latter part of the 20th century.’
11.	Rensis Likert (1903–1981)	Rensis Likert has studied human behavior within many organizations. After extensive research, Rensis Likert concluded that there are four systems of management. According to Likert, the efficiency of an organization or its departments is influenced by their system of management. His theory of management is based on his work at the University of Michigan‘s Institute for social research. Likert categorized his four management systems as follows; He identified three variables in organizations: The casual variable includes leadership behavior. The intervening variables are perceptions, attitudes and motivations. The end results variables are measures of profits, costs and productivity.
12.	Karl Ludwig von Bertalanffy (1901–1972)	Karl Ludwig von Bertalanffy (September 19, 1901 to June 12, 1972, Buffalo, New York) was an Austrian-born biologist known as one of the founders of general system theory (GST). GST is an interdisciplinary practice that describes systems with interacting components, applicable to biology, cybermetrics and other fields. Bertalanffy proposed that the classical laws of thermodynamics applied to closed systems, but not necessarily to ‘open systems,’ such as living things. His mathematical model of an organism's growth over time, published in 1934, is still in use today. Ludwig von Bertalanffy has been one of the most acute minds of the 20th century. Here are miscellanea of passages from his General System Theory. The first part of the text focuses on the function of the theory of systems and on the main features of closed and open systems. The second part presents a conception of the human being not as a robot or a moron aiming at reducing tensions by satisfying biological needs, but as an active personality system creating his own universe, who revels in accepting challenges, solving problems and expressing his artistic inclinations.
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13.	Luther Gulick (1892–1993)	POSDCORB is an acronym widely used in the field of management and public administration that reflects the classic view of administrative management. The acronym stands for steps in the administrative process: Planning, Organizing, Staffing, Directing, Coordinating, Reporting and Budgeting. Largely drawn from the work of French industrialist Henri Fayol, it first appeared in a 1937 staff paper by Luther Gulick and Lyndall Urwick written for the Brownlow committee. In his piece ‘Notes on the Theory of Organization’, a memo prepared, while he was a member of the Brownlow Committee, Luther Gulick asks rhetorically ‘What is the work of the Chief Executive? What does he do?’ POSDCORB is the answer, “designed to call attention to the various functional elements of the work of a chief executive because ‘administration’ and ‘management’ have lost all specific content.”
14.	Lyndall Urwick (1909–2006)	Edward Brech (1909–2006) joined Urwick Orr and Partners in 1938 as a management consultant, initially working with Lyndall Urwick to produce the renowned three volumes work, ‘The Making of Scientific Management’. In Urwick Orr, he played a leading role in the introduction of management training and techniques, and also wrote copiously on his own account. In 1959 he was seconded to Unilever and in 1965 was appointed as Chief Executive of the Construction Industry Training Board. On his retirement he returned to research, initially through the pursuit of a PhD, which he was granted at the age of 85. He built on his PhD to produce a monumental series of five volumes collectively titled ‘The Evolution of Modern Management’ in 2002 and then moved to this biography of his old employer, mentor and co-author, Lyndall Urwick, on which he was working when he died.

CONCEPT OF MANAGEMENT

Management is a continuous, lively and fast developing science. It is needed to convert the disorganized resources of men, machines, materials and methods into a useful and effective enterprise. Management is a pipeline, the inputs are fed at the end and they are preceded through management functions, and ultimately we get the end results or inputs in the form of goods, services, productivity, information and satisfaction (Fig. 1.2). Management is a comprehensive word, which is used in different sciences in the modern business and industrial world.

Figure 1.2: Concept of management

9In the narrow sense, it signifies the technique of taking work from others. In this way a person who can take work from others is called manager. In the wide sense, the management is an art, as well as science, which is concerned with the different human efforts so as achieve the desired objective.

Management = Manage + Men + T (tactfully). Basically, there are five concepts of management. They are:

Functional concept: Management basically is the task of planning, coordinating, motivating and controlling the efforts of other toward the goals and objectives of the organization. According to this concept, management is what a manager does (planning, executing and controlling).
Human relation concept: According to this concept, management is the art of 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.
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.
Productive concept: According to this concept, management may be defined as the art of securing maximum prosperity with a minimum effort, so as to secure maximum prosperity and happiness for both employer and employee, and provide best services thereby.
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.

Haimann's Concept of Management (Fig. 1.3)

These above definition of management, given by different writers and authorities, are found giving different senses. Virtually, the five concepts are found to 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 upon any one aspect. Management can be taken as process of managerial process or social process either engage in planning, organizing, staffing, directing and controlling or mobilizing the group activities to achieve the corporate goals.

To overcome the limitations of the above concepts, Theo Haimann's the leading management expert has explained three basic concepts of management are given below:

Management as a process: Management is a process.

Figure 1.3: Theo Haimann's concept

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It includes the process of planning, controlling, coordinating, motivating and staffing. These processes are the series of interrelated sequential functions. Processes refer to accomplish these mentioned activities. Management is the efforts of organizational members to accomplish the organizer's objectives. This concept is very simple because:
1. It is very simple and very easy to understand.
2. It indicates functions of management as a process.
3. It recognizes management as a universal process.
Management as a discipline: The term management is used as a subject of instructions. It is a specific branch of knowledge, which is studied in campuses and schools like economics, sociology, mathematics, political science, etc. the scholars of management have found that the information and management are used in practical life for better functioning. The scope of management is being increased day to day as a discipline.
Management as a noun: The word management itself refers as a noun. There are many kinds of employees in an organization. Some people are involved in managerial function and some are involved in operating functions. The individuals who manage the organization and departments are managers. As a noun, the term management is used as single name of managers, board of directors, managing directors; departmental managers, etc. are included in management.

Management as an Activity

According to this approach management consists of those activities, which are performed by managers in attaining the predetermined objectives of the business. This approach may be referred to Henri Fayol, who classified management activities into the following categories:

Technical—referred to production department.
Commercial—relates to buying, selling and exchange.
Financial concerned with maximum utilization of capital.
Security concurred with protection of property and person.
According concerned with maintenance of accounts, presentation and statistics
Management concerned to planning, organizing, commanding, coordinating and controlling.

Management as a Group of Personnel

According to this approach human factor plays an important role in accomplishing business objectives. Management is concerned with those who have been managing the affairs of the business. Managers are assigned duties and are also granted requisite authority to perform their duties efficiently and thus, management is effective direction, coordination and control of individual and group efforts to accomplish business objective. This approach is advocated by management authorities like Taylor, Wilson and others. They have defined management as following. As per FW Taylor's approach, “Management is the art of knowing exactly what you want your men to do and then seeing that they do it in the best and cheapest way”.

SCOPE OF MANAGEMENT

Management is needed in all types of organized activities. Moreover, management principles are applicable to all types of organizations, including profit-seeking organizations (industrial firms, banks, insurance companies, small business, etc.) and not for profit organizations (governmental organizations, healthcare organizations. educations organizations, churches, etc.). Any group of two or more people working to achieve a goal and 11having resources at its disposal is engaged in management. Obviously, a manager's job is somewhat different in different types of organizations, exists in unique environments, and uses different technology. However, all organizations need the common basic activities: planning, organizing, leading, and controlling. Management is also universal in that it uses a systematic body of knowledge including economics, sociology, and laws. This knowledge can be applied to all organizations, whether business, or government, or religious and it is applicable at all levels of management in same organizations.

NATURE OF MANAGEMENT

Management involves in characteristics of both art and science. While certain aspects of management make it a science, certain others which involve application of skills make it an 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”. In the beginning of development of management knowledge, it was considered as an art. There was a jungle of management knowledge. Any one used it to get things done in the own way. But later by codifying and systemizing the management, it became a science as well as being an art. Management as an art has the following characteristics:

Just like other arts, it has practical application. The knowledge of management should be learned and practiced by managers, just as medical or legal practitioners practice their respective sciences. In this sense, management is an art.
The manager gains experience by continuous application of management knowledge. This experience helps them to develop more skills and abilities for translating management knowledge into practice.
Application of management knowledge calls for innovativeness and creativity.
The fourth reason to consider management as an art 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.

Management as Science

Management as a science has the following characteristics:

Its principles, generalizations and concepts are systematically. In this case the manager can manage the situation or organization in a systematic and scientific manner.
Its principles, generalizations and concepts are formulated on the basis of observation, research, analysis and experimentation, as is the case with the principles of other sciences.
Like other sciences, management principles are also based on relationship of cause and effect. It states that same cause under similar circumstance will produce same effect. Suppose, if workers are paid more (cause), they 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 a science or art? To ascertain the nature of management with respect of science or art, there is a need to know the exact meaning of the words ‘science’ or ‘art’ and subsequently, their application to management.

CHARACTERISTICS OF MANAGEMENT (Box 1.1)

Management as Continuous Process

Management can be considered as a process because it consists of planning, organizing, activating and controlling the resources (personnel and capital) of an organization. So they are used to the best advantage in achieving the objectives of the organization. None of the managerial functions would produce the ultimate results in the absence of all other basic functions. Hence we can say that management is a continuous process.

Management as Discipline

Since the boundaries of management are not exact as that of any other physical sciences, it may not fit in very well for being addressed as discipline. However its status as a discipline increases because it continuously discovers many aspects of business enterprises and also passes on the verified knowledge to the practitioners of the managerial process.

Management as Career

As a career or occupation, management is a broad concept. Management itself can be regarded as a career, but it also presents a variety of interesting and challenging careers focused on specialized occupations in the fields such as marketing, finance and personnel.

Management as an Applied Science

Even though management is a science so far as it possesses a systematized body of knowledge and uses scientific methods of research, it is not an exact science, such as natural sciences, which deal with living phenomena (botany and medicine). Hence, management is definitely a social science like economics or psychology and has the same institutions, which these and other social sciences have.

Universal Application

Management is a universal activity, applied to any form of activity, economic or any other.

Goal Oriented

Management has the task of attaining certain objectives. The success or failure of the management depends on how far it is able to attain the desired goals. It is judged by the extent to which it achieves its targets.

Guidance

The main task of the management is guidance in the utilization of material and human resources in the best possible way. Through optimum utilization of resources it has to ensure that the objectives are attained. The essential element of management is that it gets the work done by coordinating the performance of those who actually perform diverse and specific jobs.

Divorced from Proprietorship

Management does not signify proprietorship. In earlier days, management and enterprise were lumped into the same factor. It now refers to a specialized group of people who have acquired the ability to carry out a project.13

Activating Factor

Management is the factor, which activates other factors of production. A manager's skill lies in motivating his workers through guidance, training, incentives, rewards, status, security, control, etc. So a mangers’ ability lies in the fact that he is able to motivate others to apply their skill to the best advantage of the enterprise in the accomplishment of its objectives.

Management in a Human Activity

Management functions are discharged only by individuals. No corporate body or an artificial being can perform the work of a management. Although it is an activity, which may be performed by an individual, it cannot be seen. It can only be felt.

Management Signifies Authority

Since the essence of management is to direct, guide and control, it has to have authority. Authority is the power to compel others to work and behave in a particular manner. Management cannot discharge its function without authority. It is the foundation of management. Since management has authority it stands at a higher pedestal.

Leadership

The management has to lead a team of workers. It must be capable of inspiring, motivating and winning their confidence.

NEED OF MANAGEMENT

Direction, Coordination and Control of Group Efforts

In business, many persons work together. They need proper direction and guidance for raising their efficiency. In the absence of guidance, people will work as per their desire and the orderly working of enterprise will not be possible. Management is needed for planning business activities, for guiding employees in the right direction and finally for coordinating their efforts for achieving best/most favorable results.

Orderly Achievement of Business Objectives

Efficient management is needed in order to achieve the objectives of business activity in an orderly and quick manner.

Performance of Basic Managerial Functions

Planning, organizing, coordinating and controlling are the basic functions of management. Management is needed as these functions are performed through the management process.

Effective Communication at all Levels

Management is needed for effective communication within and outside the organization.

Motivation of Employees

Management is needed for motivating employees and also for coordinating their efforts so as to achieve business objectives quickly.

Success and Stability of Business Enterprise

Efficient management is needed for success, stability and prosperity of a business enterprise.

DIFFERENCE BETWEEN MANAGEMENT AND ADMINISTRATION (Table 1.2)

There has been a controversy regarding the interpretation of these two terms. There are different views in this regard, according to first view (William Newman, Peter Drucker, etc.), 14there is no basic difference between the two terms, and they are interchangeable. If there is any difference, it may perhaps be in their usage in practice. The term administration is used for non-business activities, and management is used for business activities.

According to second view (Kimball, Brech, other British writers, etc.), management is a more comprehensive term which includes administration. Management involves ‘thinking’ and administration involves ‘doing’. Management is responsible for planning and organizing, and administration is responsible for directing and controlling. Whereas management refers to a high level of managerial activities such as goal setting, policy formulation and strategy making, administration refers to an operative part concerned with lower-level management activities such as execution of policies.

According to third view (Sheldon, Siriegal, Milward, etc.), administration is a more comprehensive term, which includes management. Administration involves ‘thinking’ and management involves ‘doing’. Administration is a top level function, which concentrates on determination of plans, policies and objectives, whereas management is a lower level function which deals with the execution and direction of policies and operations. It does not mean that we need two separate sets of personnel, but each manager performs both the managerial as well as administrative functions. At top level more time is spent in administrative activity and as one move down, more time is spent in management activity.

LEVELS OF MANAGEMENT (Fig. 1.4)

Top-level Management

Top-level management consists of board of directors, chief executive or managing director.

Table 1.2 Difference between administration and management

Sl No.	Basis of difference	Administration	Management
1.	Nature of work	It is concerned about the determination of objectives and major policies of an organization	It puts into action, the policies and plans laid down by the administration
2.	Type of function	It is a determinative function	It is an executive function
3.	Scope	It takes major decisions of an enterprise as a whole	It takes decisions within the framework set by the administration
4.	Level of authority	It is a top-level activity	It is a middle level activity
5.	Nature of status	It consists of owners who invest capital in and receive profits from an enterprise	It is a group of managerial personnel who use their specialized knowledge to fulfill the objectives of an enterprise
6.	Nature of usage	It is popular with government, military, educational and religious organizations	It is used in business enterprises
7.	Decision making	Its decisions are influenced by public opinion, government policies, social and religious factors	Its decisions are influenced by the values, opinions and beliefs of the managers
8.	Main functions	Planning and organizing functions are involved in it	Motivating and controlling functions are involved in it
9.	Abilities	It needs administrative rather than technical abilities	It requires technical activities

Figure 1.4: Levels of management

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 coordinating functions. Top managers are responsible for the overall direction and operations of an organization. Particularly, they are responsible for setting organizational goals, defining strategies for achieving them, monitoring and implementing the external environment, and decisions that affect entire organization. They have such titles such as Chief Executive Officer (CEO), President, Chairman, Division President, and Executive Vice-President. Managers in these positions are responsible for interacting with representatives of the external environment (e.g. important customers, financial institutions, and governmental figures) and establishing objectives, policies and strategies. The main role of the first-level Manager:

Determines the objectives, policies and plans of the organization.
Mobilizes (assemble and bring together) available resources.
Does mostly the work of thinking, planning and deciding. Therefore, they are also called the administrators and the brain of the organization.
They spend more time in planning and organizing.
They prepare long term plans of the organization, which are generally made for 5–20 years.
The top-level management has maximum authority and responsibility. They are the top or final authority in the organization.

They are directly responsible to the shareholders, government and the general public. The success or failure of the organization largely depends on their efficiency and decision making.
They require more conceptual skills and less technical skills.

Middle-level Management

The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. 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 junior middle-level management.

Middle managers are responsible for business units and major departments. Examples of middle managers are department head, division head, and director of the research lab. The responsibilities of middle managers include translating executive orders into operation, implementing plans, and directly supervising lower level managers. Middle managers typically have two or more management levels beneath them. They receive overall strategies and policies from top managers and they translate them into specific objective and programs for first line managers. The middle-level management emphasizes more on following tasks:

Middle-level management gives recommendations (advice) to the top-level management.
It executes (implements) the policies and plans, which are made by the top-level management.
It coordinates the activities of all the departments.
They also have to communicate with the top-level management and the lower-level management.

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They spend more time in coordinating and communicating.
They prepare short-term plans of their departments, which are generally made for 1–5 years.
The middle-level management has limited authority and responsibility. They are intermediary between top and lower management. They are directly responsible to the chief executive officer and board of directors.
Require more managerial and technical skills and less conceptual skills.

Lower-level Management

Lower level is also known as supervisory/operative level of management. It consists of supervisors, foreman, section officers, superintendent, etc. According to RC Davis, “Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees”. In other words, they are concerned with direction and controlling function of management. First line managers are directly responsible for the production of goods and services. Particularly, they are responsible for directing non-supervisory employees. First line managers are variously called office manager, section chief, line manager and supervisor:

Lower-level management directs the workers/employees.
They develop morale in the workers.
It maintains a link between workers and the middle-level management.
The lower-level management informs the workers about the decisions, which are taken by the management. They also inform the management about the performance, difficulties, feelings, demands, etc. of the workers.
They spend more time in directing and controlling.
The lower level managers make daily, weekly and monthly plans.
They have limited authority, but important responsibility of getting the work done from the workers. They regularly report and are directly responsible to the middle-level management.
Along with the experience and basic management skills, they also require more technical and communication skills.

MANAGEMENT SKILLS (Fig. 1.5)

Regardless of the sort of goals, they must meet their level of authority; managers need to possess conceptual, human, technical, diagnostic and political skills. The first three skills have long been accepted as important for management; the last two have received more recent attention. According to a classic article by Robert L Katz, managerial success depends primarily on performance rather than personality traits. He indicates that three types of skills are important for successful management performance.

Conceptual Skills

Conceptual skill is the cognitive ability to see the organization as a whole and the relationship among its parts. Managers need the mental capacity to understand how various functions of the organization complement one another, how the organization relates to its environment and how changes in one part of the organization affect the rest of the organization.

Human Skills

The manager need human skills are the ability to communicate with understand and motivate both individuals and groups.

Technical Skills

Technical skills are skills, necessary to accomplish specialized activities (e.g. engineering, computer programing and accounting).17

Figure 1.5: Management skills

Diagnostic Skills

Diagnostic skills include the ability to determine, by analysis and examination, the nature of a particular condition. A manager can diagnose a problem in the organization by studying its symptoms. These skills are also useful in favorable situations.

Political Skills

Political skill is the ability to acquire the power necessary to reach objectives and to prevent others from taking power. Political skill can be used for the good of the organization and for self-interest.

The extent to which managers need different kinds of skills moves from lower management to upper management. Most low-level managers use technical skills extensively. At higher levels technical skills become less important while the need for conceptual skills grows. However, human skills are very important to all managers.

MANAGERIAL ROLES (Fig. 1.6)

Mintzberg's observations and research indicate that diverse manager activities can be organized into 10 roles. For an important starting point, all 10 rules are vested with formal authority over an organizational unit. From formal authority comes status, which leads to various interpersonal relations, and from these comes access to information, which, in turn, enables the manager to make decisions and strategies. The 10 roles are divided into three categories such as interpersonal, informational and decisional.

Interpersonal Roles

Three of the managers roles are involved in basic interpersonal relationships:

Figurehead role: Every manager must perform some duties of a ceremonial nature, e.g. the president greets the touring dignitaries, the sales manager takes an important customer to lunch, etc. These activities are important to the smooth functioning of an organization.
Leader role: This role involves leadership directly (e.g. the manager is responsible for hiring and training his own staff).

The leader role encompasses relationships with subordinates, including motivation, communication, and influence.
Liaison role: In which the manager makes contacts inside and outside the organization with a wide range of people: subordinates, clients, business associates, government, trade organization officials, and so on.

Informational Roles

The processing of information is a key part of the manager's job. Three roles describe the informational aspects of managerial work:

Figure 1.6: Managerial roles

Monitor role: This role involves seeking current information from many sources. For example, the manager perpetually scans his environment for information, interrogates liaison contacts and subordinates and receives unsolicited information.
Disseminator role: In their disseminator role, managers pass information to other, both inside and outside the organization.
Spokesperson role: In their spokesman role, managers send some of their information to people outside the organization about company policies, needs, actions, or plans.

Decisional Roles

The manager plays the major role in his unit's decision-making system. Four roles describe the decisional aspects of managerial work:

Entrepreneur role: In his entrepreneur role, managers search for improvement his unit to adopt it to changing conditions in the environment.
Disturbance handler role: This role involves responding to high-pressure disturbances. For example, manager must resolve conflicts among subordinates or between manager's department and other departments.
Resource allocator role: In their resource allocator role, managers make decisions about how to allocate people, budget, equipment, time and other resources to attain desired outcomes.
Negotiator role: The negotiations are duties of the manager's job. These activities involve formal negotiations and bargaining to attain outcomes for the manager's unit responsibility.

Conclusion

Management is the creation and control of technological and human environment of an organization in which human skill and capacities of individuals and groups find full scope for their effective use in order to accomplish the objective for which an enterprise has been set up. It is involved in the relationship of the individual, group, the organization and the environment. The concept of management is not fixed. It has changing according to time and circumstances. The concept of management has been used in integration and authority etc. Different authors on management have given different concepts of management.

Chapter Notes

Introduction to ManagementCHAPTER 1

Box 1.1 : Characteristics of management