PRINCIPLES OF MANAGEMENT

UNIT I

Meaning of the term Management

A universal concept that is needed in every organisation whether it is a

business organisation or a non-business organisation such as hospital school,
etc., is known as Management.
Management can be defined as a process of getting the work or the task
done that is required for achieving the goals of an organisation in an efficient
and effective manner. Process implies the functions of the management. That is,
planning, organising, staffing, directing and controlling.

DEFINITION OF MANAGEMENT

The definition of Management varies with the context in which it is

used. In a broader sense, Management can be defined as per Traditional
Approach and Modern Approach.

Management can be defined as a process of getting the work or the task

done that is required for achieving the goals of an organisation in an efficient
and effective manner. Process implies the functions of the management. That is,
planning, organising, staffing, directing and controlling.

The definition of Management varies with the context in which it is

used. In a broader sense, Management can be defined as per Traditional
Approach and Modern Approach.

Traditional Definitions of Management

“Management consists of getting things done through others. A manager is one
who accomplishes objectives by directing efforts of others.” – C.S. George
Management is the art of getting things done through others.” – Follett

The traditional definitions of Management were vague as they were unable to

identify the functions, a manager has to perform to get things done through
others. Besides, these definitions gave an impression of the manipulative
practice of management and ignored the needs of workers and treated them as
a means for getting results in any way.

Modern Definitions of Management

“Management is the creation of an internal environment where individuals
working in a group can perform effectively and efficiently for the achievement
of organisational goals.” – Koontz and Donnell
Management is the process of working with and through others to effectively
achieve organisational objectives by efficiently using limited resources in the
changing environment.”– Kreitner

Modern Concept of Management

Management is a process through which an organisation designs and maintains
an environment in which individuals work together with the motive of
achieving organisational goals effectively and efficiently. The three essential
elements that come under the modern concept of Management are as follows:

1. Management is a ‘Process’: Management involves a series of int-

related functions like planning, organising, staffing, directing, and
controlling, which makes it a process. Every manager performs these
functions to achieve goals.

2. Management requires Effective Performance: Effectiveness in

Management means achieving goals on time. In simple terms, it aims at
end result. For example, if an organisation achieves its sales target
within time, it is said to be effective.

3. Management needs Efficiency: Efficiency in Management means doing

tasks correctly and with minimum cost. It is not enough to just complete the
task on time, it should be accurate also. Besides, management also aims at
using its resources efficiently as it reduces the cost of the firm ultimately
resulting in higher profits.

NATURE OF MANAGEMENT:

Management is a set of activities (including planning and decision

making, organizing, leading, and controlling) directed at an organization's
resources (human, financial, physical, and information) with the aim of
achieving organizational goals in an efficient and effective manner.
Efficient means using resources wisely and without unnecessary waste.
Effective means doing the right things successfully.
Nature of Management:
1. Universal Process: Wherever there exists human pursuit, there exists
management. Without effective management, the intentions of the
organisation cannot be accomplished.
 2. The factor of Production: Equipped and experienced managers are
necessary for the utilisation of funds and labour.
3. Goal-Oriented: The most significant aim of all management pursuit is
to achieve the purposes of a firm. The aims must be practical and
reachable.
4. Supreme in Thought and Action: Managers set achievable goals and
then direct execution on all aspects to achieve them. For this, they need
complete assistance from middle and lower degrees of management.
5. The system of authority: Well-defined principles of regulation, the
regulation of proper power and efficiency at all degrees of decision-
making. This is important so that each self must perform what is required
from him or her and to whom he must report.
6. Profession: Managers require to control managerial expertise and
education, and have to adhere to a verified law of demeanour and stay
informed of their human and social responsibilities.
7. Process: The management method incorporates a range of activities or
services directed towards an object.

What is the scope of management?

The scope of management refers to the various functions, responsibilities, and
activities that managers undertake to achieve the goals and objectives of an
organization.

It encompasses the broad range of tasks and areas that managers are responsible
for in the process of planning, organizing, leading, and controlling
organizational resources.

The scope of management typically includes the following key aspects:

 Planning: This involves setting organizational goals, defining strategies to

achieve them, and creating plans and budgets. It also includes forecasting,
decision-making, and establishing objectives.
 Organizing: This encompasses the design of the organizational structure,
allocation of resources, delegation of authority, and establishing communication
channels. Organizing ensures that tasks are efficiently and effectively carried
out.
 Leading: Leadership involves motivating and guiding employees, fostering
teamwork, and resolving conflicts. Managers play a crucial role in inspiring and
influencing their teams to achieve the organization's goals.
 Controlling: This involves monitoring the performance of the organization,
comparing it to established standards, and taking corrective actions when
necessary. Control mechanisms ensure that the organization stays on track and
deviations are addressed.
 Decision-Making: Managers are responsible for making important decisions
related to the organization's operations, resources, and strategies. Decision-
making is a critical aspect of management and impacts all other functions.
 Human Resource Management: Managing people, including hiring, training,
performance appraisal, and employee development, is a vital part of the scope
of management.
 Financial Management: Ensuring the organization's financial health by
budgeting, financial planning, cost control, and financial analysis is crucial for
management.
 Marketing Management: Developing and implementing marketing strategies
to promote products and services, understand customer needs, and create value
for the organization.
 Operations Management: Overseeing the day-to-day operations and processes
of the organization, optimizing efficiency and quality in production or service
delivery.
 Strategic Management: Developing long-term strategies, setting the direction
of the organization, and adapting to changing business environments.
 Information Technology Management: Utilizing technology to enhance
business processes, data management, and communication within the
organization.
 Environmental and Social Responsibility: Addressing ethical and
environmental concerns, as well as being socially responsible in the
organization's operations.
The scope of management can vary based on the type of organization, its size,
industry, and specific goals.

However, the fundamental functions of planning, organizing, leading, and

controlling are consistent elements within the scope of management that help an
organization achieve its objectives and adapt to changing circumstances.
LEVELS OF MANAGEMENT

What are Levels of Management?

Simply put, levels of management refer to the demarcation of responsibilities of
managers from top to bottom in a pyramidal organisational structure. This
division in the managerial structure describes how the chain of command works.
Also, look into what is management?

In the image above, there are three broad demarcations under which managers
have different functions.
And you can already tell, the top level managers also need to have more
experience than the middle level and bottom level managers. Likewise, the
responsibilities at the top are to make the final decisions for the organisation.

‍Three Levels of Management

1. Top Level Management - The senior most executives of the
organization are found at the top-level of management. The top level of an
organization’s management consists of the Board of Directors, Managing
Director, Chairman, Chief Executive Officer, Chief Operating Officer, Vice-
President, President, General Manager, and other Senior Executives. The
managers at the top level of management of an organization are responsible for
its survival and welfare. These managers perform stressful and complex work
that demands long hours and commitment towards the company.

2. Middle Level Management - The next level of management is the

Middle Level, which serves as a link between the Top-Level Management and
the Lower-Level Management. The middle level management is superior to
the lower or operational level management and subordinate to the top-level
management. The middle level of an organization’s management consists of
different functional department heads, such as Departmental Managers
including Production, Purchase, Finance, Personnel, Marketing Managers, and
other executive officers for different departments such as plant superintendent,
etc. The employees or members of the middle level management are
responsible to the top-level management for their performance.

3.Lower-Level Management - The last level of management is the lower-level

management and is also known as the Supervisory or Operational Level
Management. The managers at the lower level of management play a crucial
role in the proper management of an organization, as they directly interact with
the actual work force and interpret the instructions of the middle level managers
to them. The responsibility and authority of the lower-level managers depend
upon the plans and policies formed by the top-level management. The lower-
level management consists of foremen, supervisors, section officers,
superintendents, and other managers who have direct control over the operative
employees of the organization.

Importance of Management

1. It helps in Achieving Group Goals - It arranges the factors of

production, assembles and organizes the resources, integrates the
resources in effective manner to achieve goals. It directs group efforts
towards achievement of pre-determined goals.
 By defining objective of organization clearly there would be no
wastage of time, money and effort. Management converts disorganized
resources of men, machines, money etc. into useful enterprise. These
resources are coordinated, directed and controlled in such a manner that
enterprise work towards attainment of goals.

2. Optimum Utilization of Resources - Management utilizes all the

physical & human resources productively. This leads to efficacy in
management.

Management provides maximum utilization of scarce resources by

selecting its best possible alternate use in industry from out of various
uses.
It makes use of experts, professional and these services leads to use of
their skills, knowledge, and proper utilization and avoids wastage. If
employees and machines are producing its maximum there is no under
employment of any resources.

3. Reduces Costs - It gets maximum results through minimum input by

proper planning and by using minimum input & getting maximum
output.

Management uses physical, human and financial resources in such a

manner which results in best combination. This helps in cost reduction.

4. Establishes Sound Organization - No overlapping of efforts (smooth

and coordinated functions). To establish sound organizational structure
is one of the objective of management which is in tune with objective
 of organization and for fulfillment of this, it establishes effective
authority & responsibility relationship i.e. who is accountable to
whom, who can give instructions to whom, who are superiors & who
are subordinates.

Management fills up various positions with right persons, having right

skills, training and qualification. All jobs should be cleared to everyone.

5. Establishes Equilibrium - It enables the organization to survive in

changing environment. It keeps in touch with the changing
environment.

With the change is external environment, the initial co-ordination of

organization must be changed. So it adapts organization to changing
demand of market/changing needs of societies. It is responsible for
growth and survival of organization.

6. Essentials for Prosperity of Society - Efficient management leads to

better economical production which helps in turn to increase the
welfare of people. Good management makes a difficult task easier by
avoiding wastage of scarce resource.

It improves standard of living. It increases the profit which is beneficial

to business and society will get maximum output at minimum cost by
creating employment opportunities which generate income in hands.
 Organization comes with new products and researches beneficial for
society.
Management and Administration
According to Theo Haimann, “Administration rall determination of policies,
setting of major objectives, the identification of general purposes and laying
down of broad programmes and projects”. It refers to the activities of higher
level. It lays down basic principles of the enterprise. According to Newman,
“Administration means guidance, leadership & control of the efforts of the
groups towards some common goals”.
In other words, Management is an art of getting things done through & with the
people in formally organized groups.
The difference between Management and Administration can be summarized
under 2 categories: -

1. Functions
2. Usage/Applicability

On the Basis of Functions: -

Basis Management Administration

Meanin Management is an art of getting It is concerned with

g things done through others by formulation of broad
directing their efforts towards objectives, plans & policies.
achievement of pre-determined
goals.

Nature Management is an executing Administration is a

function. decision-making function.

Process Management decides who should Administration decides what

as it & how should he dot it. is to be done & when it is to
be done.

Functio Management is a doing function Administration is a thinking

n because managers get work done function because plans &
under their supervision. policies are determined
 under it.

Skills Technical and Human skills Conceptual and Human

skills

Level Middle & lower level function Top level function

On the Basis of Usage: -

Basis Management Administration

Applicabilit It is applicable to business It is applicable to non-business

y concerns i.e. profit-making concerns i.e. clubs, schools,
organization. hospitals etc.

Influence The management decisions The administration is

are influenced by the influenced by public opinion,
values, opinions, beliefs & govt. policies, religious
decisions of the managers. organizations, customs etc.

Status Management constitutes the Administration represents

employees of the owners of the enterprise who
organization who are paid earn return on their capital
remuneration (in the form invested & profits in the form
of salaries & wages). of dividend.

Management: Science or Art:

Management as both Science and Art. It is considered a science because it
has an organized body of knowledge containing certain universal truths. It is
called an art because managing requires certain skills which are personal
possessions of managers. Science provides knowledge & art deals with the
application of knowledge and skills.
EVOLUTION OF MANAGEMENT THOUGHTS:
What Does Management Thought Means?
Management thought refers to the theory that guides management of
people in the organization. Initially management theories were developed out of
the practical experience of the managers in the industrial organization. Later on,
managers borrowed ideas from several other fields of study like science,
sociology, anthropology, etc.
The Concept of Evolution of Management Thought
To understand the entire concept of evolution of the management thought,
the topic is divided into 4 major stages, which are as follows:
• Pre-scientific management period
• Classical theory
• Neo-classical theory ( or behaviour approach)
• Bureaucratic Model of Max Weber
Pre-Scientific Management Period
As the industrial revolution occurred in the 18th century, there was a
huge impact on management. The scenario changed the method of raising
capitals, organizing labour, and goods’ production for the individuals and
businesses. Entrepreneurs then had access to production factors like land,
labor, and capital. The final step was only to make some effort to combine
these factors to achieve the target successfully.
But, after the industrial revolution, the newer dimension taken by
management is because of the involvement of certain notable personalities
who introduced some effective ideas and approaches for giving management
an acceptable and precise direction. Here is a brief on some of the
personalities and their theories:
Professor Charles Babbage of United Kingdom (1729 to 1871)
Prof. Babbage was a renowned Mathematics professor at Cambridge
University. He discovered that manufacturers rely on guessing and suggesting
and advised them for utilizing science and mathematics to be more
productive and accurate.
Robert Owens of United Kingdom (1771 to 1858)
Sir Robert is often regarded as personnel management’s father as his
approach focuses on employee welfare. He also introduced cooperation and
trade unions. He mainly believed that employee welfare might determine the
performance to a larger extent. Sir Robert also encouraged the workers’
training, children’s education, ensuring canteens in the workplaces, shorter
working durations, and others.
The Classical Theory
Robert Owens, Charles Babbage, and other prominent personalities are
regarded as management’s pioneers. However, their contribution to the
evolution of management is lower. Further, by the last decade of the 19th
century, the science of management began, and with it, some professionals
like H. L. Grant, F. W. Taylor, Emerson, and others entered for the
establishment of scientific management.
Further, during the classical period, management thought focused on
standardization, job content, labor division, and scientific approaches for
the organization. It also related closely to the industrial revolution and the
rise of largescale enterprises.
The Neo-Classical Theory
This duration of the evolution of management thought is a better version of
classical theory. It is a modified version of classical theory with several
improvements. The classical theory focused mainly on the areas of job
including physical resources and their management, but Neoclassical theory
focuses on employee relationships in the work ecosystem.
The Bureaucratic Model
Max Weber, a German sociologist, proposed the bureaucratic model.
This includes a system of labour division, rules, authority hierarchy, and
employees’ placement based on their technical capabilities.
Evolution of Management Theories
Organizations were shaped effectively and the writings of some
prominent writers consisted of the management and governance of various
kingdoms. These descriptions formed the literature that helped develop the
management theories. Several heads of religions, political affairs, and military
also gave the management models. For example, the books like Sun Tzu’s
“The Art of War” and Chanakya’s Arthashastra used some managerial
purposes and the governance of the kingdom concerning the policy
formulations respectively.
The Evolution of Management Science
Management evolution started with civilization, and the evolution of
management science is the entire concept involving several theories behind it.
Whatever we presently have gets refined and improved as management
thoughts and theories. This helps people in improving the knowledge of the
process and utilizes the management principles for enhancing the overall
organization.
Principles of Scientific Management
Scientific Management is a management technique that utilizes scientific
methods to enhance workforce efficiency. It uses scientific methods
that include systematic, objective, and logical principles and techniques to
solve management problems.
What is Scientific Management?
The use of scientific principles and techniques in various managerial
functions is known as scientific management. It is the art of knowing exactly
what you want your employees to do and seeing that they do it in the best
and cheapest ways. It involves the study of each activity in detail and doing the
work in such a manner so that work can be completed effectively and
efficiently.
In the words of F.W. Taylor:
“Scientific 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.”

Frederick Winslow Taylor(1856-1915)

F.W Taylor was an American mechanical engineer who started his career as a
mechanic and rose to the position of chief engineer in Bethlehem Steel
Company, USA. He found that the main cause of inefficiency and wastage in
factories was ignorance on the part of both workers and
management because of the use of Traditional, unscientific rules and rule of
thumb. Taylor defined management as ‘‘the art of knowing exactly what you
want men to do and seeing that they do it in the best and cheapest way.” He
stated that the best management was a true science based upon certain defined
laws, rules, and principles. He was the first who laid emphasis on the
importance of a scientific approach to managing an enterprise instead of the
hit and trial method. His philosophy and ideas are given in his book,‘Principles
of Scientific Management’. For his contribution, he is also known as
the Father of Scientific Management.
Principles of Scientific Management
F.W. Taylor’s scientific management is based on the following four principles:
1. Science, not Rule of Thumb
Taylor focused on the scientific study and analysis of each and every element of
a work to replace the old rule of thumb method or hit and trial method. Rule of
thumb is not based on science or exact measurement. Scientific method is
based on cause and effect, whereas rule of thumb was based solely on the
discretion of managerial decisions. Taylor focused that managers should
scientifically analyze each and every component of work. According to him,
even a small work, like loading of iron pigs into boxcars can be scientifically
done. Doing a work scientifically reduces wastage of time and resources and
helps to achieve the target effectively and efficiently.

2. Harmony, Not Discord

Taylor recognized the class conflict that existed between the workers and
managers. He emphasized that there should be no conflict between the workers
and managers. Both of them should realize the importance of each other and
should work together for organizational goals. In order to achieve this
harmonious relation, he focused on ‘Mental Revolution’, which means
that workers and managers should transform their thinking. In such a
situation, management aims at providing better working environment for the
employees, and sharing the gains of the company, etc., and workers should
avoid going on strikes and work hard to the best of their ability. This principle is
clearly visible in the case of Japanese work culture. There is complete openness
between the workers and management. If workers are not satisfied with the
management, they wear a black badge and work for more than the normal
working hours.

3. Cooperation, Not Individualism

According to this, there should be cooperation between management and
workers instead of individualism. This principle is an extension of
Principle ‘Harmony, Not Discord‘. Both management and workers should
realize that they need each other. There should be cooperation between them,
and competition should be replaced by cooperation. For achieving this
principle, management should welcome the constructive ideas and suggestions
of the workers. The workers should be praised and rewarded for the suggestions
given if their suggestions were helpful. Workers should be taken into
consideration while taking important decisions. On the other hand, workers
should avoid unreasonable demands and strikes and should work effectively and
efficiently to achieve organizational goals.

4. Development of Workers to their Greatest Efficiency and Prosperity

Taylor focused on the efficiency of workers. According to him,
every organization should follow the scientific method of selection of workers,
and each worker should be scientifically selected. Then they should be assigned
work according to their mental, physical and intellectual capabilities. To
increase efficiency, training should be provided. This increase in efficiency will
be beneficial for both workers and management.

HENRY FAYOL’S MODERN MANAGEMENT

Henry Fayol, also known as the Father of Modern Management Theory, gave a
new perception on the concept of management. He introduced a general theory
that can be applied to all levels of management and every department. He
envisioned maximising managerial efficiency. Today, Fayol’s theory is
practised by the management to organise and regulate the internal activities of
an organisation.

The fourteen principles of management created by Henri Fayol are explained

below.

1. Division of Work

Henri believed that segregating work in the workforce amongst the workers will
enhance the quality of the product. Similarly, he also concluded that the division
of work improves the productivity, efficiency, accuracy and speed of the
workers. This principle is appropriate for both the managerial as well as a
technical work level.

2. Authority and Responsibility

These are the two key aspects of management. Authority facilitates the
management to work efficiently, and responsibility makes them responsible for
the work done under their guidance or leadership.

3. Discipline

Without discipline, nothing can be accomplished. It is the core value for any
project or any management. Good performance and sensible interrelation make
the management job easy and comprehensive. Employees’ good behaviour also
helps them smoothly build and progress in their professional careers.

4. Unity of Command

This means an employee should have only one boss and follow his command. If
an employee has to follow more than one boss, there begins a conflict of interest
and can create confusion.

5. Unity of Direction

Whoever is engaged in the same activity should have a unified goal. This means
all the people working in a company should have one goal and motive which
will make the work easier and achieve the set goal easily.

6. Subordination of Individual Interest

This indicates a company should work unitedly towards the interest of a

company rather than personal interest. Be subordinate to the purposes of an
organisation. This refers to the whole chain of command in a company.

7. Remuneration

This plays an important role in motivating the workers of a company.

Remuneration can be monetary or non-monetary. Ideally, it should be according
to an individual’s efforts they have put forth.

8. Centralization

In any company, the management or any authority responsible for the decision-
making process should be neutral. However, this depends on the size of an
organisation. Henri Fayol stressed on the point that there should be a balance
between the hierarchy and division of power.

9. Scalar Chain
Fayol, on this principle, highlights that the hierarchy steps should be from the
top to the lowest. This is necessary so that every employee knows their
immediate senior also they should be able to contact any, if needed.

10. Order

A company should maintain a well-defined work order to have a favourable

work culture. The positive atmosphere in the workplace will boost more
positive productivity.

11. Equity

All employees should be treated equally and respectfully. It’s the responsibility
of a manager that no employees face discrimination.

12. Stability

An employee delivers the best if they feel secure in their job. It is the duty of the
management to offer job security to their employees.

13. Initiative

The management should support and encourage the employees to take

initiatives in an organisation. It will help them to increase their motivation and
morale.

14. Esprit de Corps

It is the responsibility of the management to motivate their employees and be

supportive of each other regularly. Developing trust and mutual understanding
will lead to a positive outcome and work environment.

In conclusion, the 14 Principles of Management the pillars of any organisation.

They are integral for prediction, planning, decision-making, process
management, control and coordination.

Principles of Peter F Drucker:

 Drucker stated that there was only one valid purpose for the existence of a
business: to create a customer. He argued that an organisation is kept afloat
not by internal structure, controls, organisation and procedures, but rather by the
customer, who pays, and decides what is important.
Drucker opposed bureaucratic management and was in favour of creative
management. According to him, the aim of management should be to innovate.
This could be done in the form of combining old and new ideas, developing
new ideas, or encouraging others to innovate.
7 of Drucker’s Principles:
1. Be mission-driven - Ask most employees of companies – large and small
– what their mission is and few can actually tell you. Drucker believed it was
important to align employee team members to focus on the mission. Leaders
need to communicate in a manner that encourages employee team members to
know what they are trying to do. He also argued that leaders need to know how
to say, “no” to doing what is non-core to the business model.

2. Be effective – not efficient - Efficiency is doing things right.

Effectiveness is doing the right things. Too many are focused on being busy
when they should be focused on being effective –doing the right things. I am
guilty of trying to get as many things done as possible. I have come to realize
that getting the right things done are far, far more important than everything.

3. To grow faster – put your best people on your best opportunities - In

other words, make sure you have the best people doing the right things. Many
ask, “What do I want to do?” Instead, what needs to be asked is, “What needs
to be done.” Drucker understood the power of having the right people in the
right positions in the company.

4. Focus on opportunities, not problems - Most organizations focus their

best talent on problems when they should be focused on opportunities. Drucker
said... “An organization will have a high spirit of performance if it is
consistently directed toward opportunity rather than toward problems. It will
have the thrill of excitement, a sense of challenge, and the satisfaction of
achievement if it's energies are put where the results are, and that means on the
opportunities." While many enjoy “putting out fires” – the proper focus is to
focus on shaping the future rather than fixing the past.

5. Know the power of “planned abandonment” - All-too-often

businesses try to be / do everything when they need to focus on doing what they
are really good at and abandoning everything else. It is important to decide
what not to do. As the needs of your Customer evolve and the abilities of your
talent, realignment becomes necessary.

6. Focus on the Customer - Drucker said, “An organization begins to die

the day it begins to run for the benefit of insiders and not the benefit of the
outsiders.” I have seen many successful business models that could be better
serving their Customers, making more money, and being an even more
meaningful place to work if they did not serve their self-interests.

7. "What gets measured, gets managed." - Drucker understood that

without measurement, the right things may not get done. It is essential to
understand and measure the key performance indicators that forecast future
performance. Smart companies have a "dashboard" that they share with
employee team members to help focus on the right things.

Elton Mayo

Mayo concluded that people's work performance is dependent on both

social relationships and job content. He suggested a tension between workers'
"logic of sentiment" and managers' "logic of cost and efficiency" which could
lead to conflict within organizations.
Elton Mayo's contribution to management was mainly in employee
management. He discovered that social forces and relational forces positively
impact employee productivity. He also noted that although finances play a role
as motivators, positive work relationships weigh more.
Functions of Management

Management is the process of planning, organising, staffing, directing, and

controlling the available resources effectively and efficiently for achieving the
goals of the organisation. These interrelated elements of the management
process are called functions of management. Functions of management are
differentiated into two parts managerial function (i.e., planning, organising,
staffing, directing, and controlling ) and operative function
(i.e., production, marketing, purchasing, financing, and personnel).
Managerial functions are common to all enterprises because it does not vary
from one organisation to another. For example, planning is common in all
organisations. Whereas operative functions are not common, and they differ
from one organisation to another. For example, production is not performed in
a retail store.

There is no universally accepted list of management functions. Different

experts have classified the functions of management in different ways. Koontz
and O’Donnell have given a very convenient classification of management
functions that are generally accepted they are:

Functions of Management:
1. Planning - Planning is an important function of management because it
sets the pace for all subsequent steps in the managerial process. You need to
develop a roadmap for the future—predefined steps—to accomplish
organizational goals. In this step, you’ll have to evaluate methods and strategies
to determine how you’ll progress toward your goal. For example, in Ram’s
organisation, the objective is the production and sale of shoes. He has to
decide quantities, variety, and colour, and then allocate resources for their
purchase from different suppliers. Planning cannot avoid or stop problems, but
it can anticipate them and prepare emergency plans to deal with them if and
when they occur.

2.Organizing - This is where you put your plan into action by establishing a
system of authority or hierarchy in the context of your organizational structure.
Determine the tasks that need to be completed to achieve your goals before
assigning them to your staff. As opposed to the traditional ways of working
where a manager made all the decisions, today’s business world is more
dynamic and flexible. Every member of the organization—regardless of
position—shares accountability and responsibility.For example, In Ram’s
enterprise of shoes, there are many duties to be performed. So, he allocates the
duties within the organisation forming various groups to attain the plan. He
decides who will perform which task as preparation of accounts, making sales,
record keeping, quality control, and inventory control are the tasks to be
performed. There is an organisational hierarchy so that reporting is easy and
there is a smooth flow within the enterprise.

3.Staffing - This is another important function of management. You have to

assign tasks based on each team member’s knowledge, skills and abilities. You
have to be careful here because you may have to hire new talent for specific
tasks that require specific technical expertise. Assessing the needs of your
employees in terms of incentives, training and development and compensation
are critical for the success of this step. For example, when Ram is hiring
personnel for his enterprise, he will recruit different people for different tasks.
He has to ensure that he is hiring the right people with the right qualification
for the right job. For this process, Ram will need an HR manager who will be
performing this task for the organisation. This will be a very important part of
the management function for his organisation, as it will affect his enterprise in
many ways if he selects the wrong people for the job.

4.Directing - Directing is concerned with supervising your team’s progress. In

this step, you have to keep an open channel of communication and get regular
updates to stay on top of things. A great way to do this is by giving and
receiving feedback to address any problem areas and improve performance.
This is where you have to act as a leader, navigate conflict and motivate your
employees to take initiative. For example, in Ram’s enterprise, the employees
are having some doubts and difficulties. If the supervisor guides his
subordinates and clarifies their doubts in performing a task, it will help the
employees and the workers to perform the activities correctly and on time.
When the employees are motivated and supervised properly, it leads the
organisation toward its goal.

5.Controlling - This is where you have to measure the progress of each step
established in the planning stage against your organizational goals. This step
requires you to coordinate with your employees to ensure that they’re moving in
the right direction and in the right manner. For example, Ram expected to sell
1,000 pairs of shoes per week. This is the standard against which his actual
performance will be judged at the end of the week. If his actual performance at
the end of the week falls short of the standard, reasons for the shortfall would
be ascertained by his superior. Corrective actions will be taken to help the
workers so that Ram’s enterprise can achieve the standard performance of
1,000 pairs of shoes in the future by controlling the deficiencies and rectifying
the mistake.

TRENDS AND CHALLENGES OF MANAGEMENT

The trends and challenges of management in a global scenario are

continuously evolving. Management challenges include a wide array of trials
and obstacles that managers generally encounter in their careers while leading
and managing organizations effectively to achieve goals. All these and other
such issues are faced by the management in organizations regularly, which
needs to be dealt with tactfully. Hence, tackling these challenges of
management requires leaders who can find ways and strategies to overcome
obstacles and drive sustainable growth for their businesses.

1. Lacking Productivity Goals

The decrease in performance and productivity is one of the key challenges that
management faces in organizations. Sometimes employees may go through such
phases of decreased productivity, while management expects to get the best out
of each employee. In such cases, it becomes the responsibility of the manager to
handle such issues by taking proactive steps. This needs you to get into the root
cause of the productivity drain and act upon it.

2. Hiring Decisions

Hiring the right candidates is important for the long-term success of

organizations. Here, the manager has to take into consideration the skills and
experience of the candidates and ensure that they fit well into the work culture
of your organization.

3. Ineffective Communication

Maintaining effective communication is another necessity of organizations.

Each team member has a unique personality and miscommunication among
members of diverse personalities is expected. These ineffective communication
issues might affect the productivity of organizations as well as relationships.
Managers are required to resolve such issues using several practical steps and
different platforms.
4. Lack of Teamwork

Poor teamwork can deter business performance and disturb team unity. Lack of
team collaboration can affect the progress of a project. Hence, managers are
required to ensure teamwork through team-building exercises to help them work
together efficiently.

5. Tackling Difficult Employees

Every organization does have some employees who are difficult to deal with.
This is a challenge that managers need to tackle on behalf of the organization.
These difficult employees may not go along well with others and may present
an unpleasant work environment. Managers have to intervene in such cases to
stop conflicts by having frank discussions with such employees and finding a
way out to make the working space better.

6. Managing Schedule

Time management is a topmost challenge that managers need to take care of.
The manager must ensure that the teams complete work on time by creating
work schedules, assigning tasks, and setting deadlines.

7.Constant Pressure

Managers are also under constant pressure from the senior management. They
have to satisfy their seniors while having a cordial relationship with their
subordinates. This might sometimes create rifts between their relations and
cause pressure on the managers. These unexpected pressures can be dealt with
through calm and composed thinking and acting upon such hurdles with an
appropriate solution.

8. Failing to Gain Employee Trust

If the management of an organization does not portray transparency, it might

lead to several questions and may distance employees from their managers.
Hence, clear and honest communication is very important to build employee
trust.

9. Retain Best Performers

Retaining high-performing team members is another challenge that managers

constantly face. Employees like to move ahead looking for new roles and
responsibilities and better opportunities. Hence, to retain such talented and
skilled employees’ managers are required to find the right incentive to keep
them engaged.

10. Downsizing Staff

Firing employees to downsize staff is another critical job that managers have to
perform. Depending on the situation, you may be required to fire some
employees if they do not meet the work standards. This is a very critical task
that managers have to perform.

Trends of Management

Here are some future trends of management that need understanding to meet
new challenges and benefit from new opportunities.

· Use of AI and Automation in Management Functions

Artificial Intelligence (AI) is impacting the workflow of organizations

significantly and has touched upon the hiring processes of companies. This is
expected to increase further in the coming time. Hence, integrating AI
technologies into the organizational workflow is important to enhance
productivity and help companies reach their goals.

· Upskilling to Stay Up-to-Date with the Latest Technologies

Upskilling is important to stay connected with the latest trends in technology.

To equip employees to upskill using the right technology is important to address
skill gaps effectively.

· Remote and Hybrid Work Environment

More and more employees prefer to work in remote and hybrid environments.
Organizations need to embrace and allow such working conditions to let
employees have freedom and flexibility.

· Flexible Work Schedules

Like remote working, having flexible working hours has become an important
part of workforce management lately. It has many benefits that help mitigate the
issue of labor shortage. Flexible working hours may help employee retention
and use the potential of existing employees to the maximum.
 · Fostering Employee Well-being

Fostering employee well-being is another important aspect of modern workflow

management. It includes the health and overall well-being of employees. It
requires businesses to employ a holistic approach towards the well-being of
employees by adopting a forward-thinking approach.

Conclusion

Management challenges can be complex requiring dynamic solutions and the

skills of capable leaders to resolve them. Hence, managers need to keep
evolving continuously so that they can strategies policies for the success of their
organizations. The challenges when addressed well drive growth and create
value for their teams and overall organizations. If you have the zeal and are
keen on taking up these management challenges, you must pursue a career in
management by enrolling in an online business management course.

MANAGER :

A manager is an individual with leadership skills tasked with leading, planning,

staffing, and organizing an organization. They main task is to organize the
company by incorporating the mentioned task. For instance, to have an
organized company they should plan and be prepared for any situation.
A Organizing a company may be a challenging job, but having to delegate tasks
may reduce the burden on the organization and the staff.
The qualifications for managers are:

Communication: The ability to communicate effectively and honestly

 Leadership: The ability to guide a team to achieve company goals and create a
positive work environment
 Problem-solving: The ability to sort out issues even when conditions are not
ideal
 Decision-making: The ability to make independent decisions and work well
under pressure
 Organizational skills: The ability to prioritize, plan, and achieve goals
 Change management: The ability to anticipate challenges and opportunities,
and drive innovation and change
 Stakeholder relationships: The ability to identify and understand stakeholder
needs, and build relationships with them
  Project management: The ability to manage projects, handle risks, and meet
stakeholder expectations
 Budget and resource management: The ability to manage budgets and
resources efficiently
Other qualifications for a manager include:
 Prior experience
 Team-focused mindset
 Building a work culture of trust
 Focusing on employee strengths
 Helping develop employees' careers
 Handling pressure well
 Being open to new ideas

DUTIES AND RESPONSIBILITIES OF MANAGERS:

Managers have many duties and responsibilities, including:

 Leadership
Managers lead others by setting goals, communicating clearly, and inspiring
their team. They also create a vision for the team and respond to staff
concerns.
 Problem-solving
Managers analyze situations, identify challenges, and develop solutions. They
also make quick decisions to address challenging situations.
 Planning and coordination
Managers ensure that day-to-day operations run smoothly by planning,
coordinating, and solving problems.
 Team building
Managers build and nurture high-performing teams by managing talent,
resolving conflicts, and coaching team members.
 Communication
Managers cascade communication across the organization to provide clarity on
vision, objectives, and expectations.
 Organization
 Managers keep the workplace organized and efficient by organizing employee
schedules and assignments, maintaining the training schedule, and ensuring
essential tools and equipment are easily accessible.

 Information
Managers collect information from sources both inside and outside the
organization, process it, and deliver it to those who need it.
 Decision making
Managers make decisions, but the types of decisions they make vary
depending on their level in the organization.
Managers have responsibilities to many different parties, including employees,
customers, shareholders, suppliers, retailers, creditors, the government, and
society