Management is as critical as the organization because it is management which helps and directs the various efforts towards the achievement of the goals of the organization. It entails the process of working with and through others to effectively attain the goals of the organization. Management stands to protect the interest of the organization. According to Harold Koontz, “Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals can co-operate towards attainment of group goals.
As per the definition of Harold Koontz, it is management which puts into use the various factors of production and creates a conducive environment for the goals of the organization to be achieved. Management takes responsibility to create such conducive environment and conditions to maximize efforts so that people are able to perform their task efficiently and effectively using limited resources in this fast space changing world.
The organization cannot know what to do, when to do and see that it is done in the best and cheapest way without management. No organization can survive or even be in existence without management.
The main objectives of management are: Guaranteeing maximum results with minimum efforts and resources. Management is basically concerned with thinking and utilizing human, material and financial resources in such a manner that would result in the best combination in reducing various costs. Utilizing the various factors of production properly to increase their efficacy to a great extent. This is obtained by reducing spoilage, wastages and breakages of all kinds. This in turn leads to saving money, time and effort which is essential for the growth and prosperity of the organization.
Ensuring smooth and coordinated functioning of the organization. This helps in providing maximum benefits to the employee in the shape of good working conditions, suitable wage systems, incentive plans on the one hand and higher profits on the employer on the other hand. Serving as a tool for the upliftment as well as betterment of the society. Through increased productivity and employment, management ensures better standards of living for the society. It provides justice through its uniform policies. The importance of management. Management establishes sound organization.
It ensures smooth and coordinated functions (no overlapping of efforts) which is in tune with the objective of the organization and for the upliftment of this, management establishes effective authority and responsibility relationship i. e. who is accountable to whom, who can give instructions to whom, who are superiors and who are subordinates. Management fills up various positions with right persons, having the right skills, training and qualification. It makes all jobs clear to everyone. It helps reduce cost. Management makes frantic efforts to get maximum results through minimum input by proper planning to get maximum output.
Management uses physical, human and financial resources in such a manner which results in best combination to reduce cost. Management helps in achieving group goals. It arranges the factors of production, assembles and organizes the resources, integrates the resources in an effective manner to achieve organizational goals. It directs the groups’ efforts towards the achievement of pre-determined goals. By defining the objective of the organization there will be no wastage of time, money and effort, management converts disorganized resources of men, machinery, money etc. into useful enterprise.
These resources are coordinated , directed and controlled in such a manner that the organization work towards attainment of goals. Management utilizes all the physical and human resources productively. This leads to efficacy. 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, professionals and these services lead to use of their skills, knowledge, and proper utilization and avoids wastage. If employees and machines are producing their maximum there is no under employment of any resources.
Management keeps in touch with the changing environment. It enables the organization to survive in our changing world. When the external environment changes, the initial co-ordination of the organization must be change. So it adapts organization to changing demand of market and changing needs of the society. It is responsible for the growth and survival of the organization. Management when effective leads to better economical production which in turn helps 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 to the society. Management is responsible and answerable to the stockholders and other investors, employees, consumers, inter-related organizations, the community and the government. Sometimes the interests of these, conflicts with each other and management conducts its affairs in a manner fair and equitable to all these parties.
The stockholders and other investors who are the owners of the organization. They have invested capital in the organization and their primary purpose is to make reasonable profit. Accordingly managements directs its resources in such a manner so as to yield a satisfactory rate of return for the investors in the long run. The stockholders are not so much interested in quick profits as they are in the stability, growth, and the image of the organization. They want an image of quality and service which management must help to uphold.
It is the management’s duty to inform the shareholders about the organization’s financial position from time to time and all other relevant matters regarding objectives, policies and procedures, so that the stockholders can give some necessary input from time to time. In relating to the employment. It is the responsibility of management to bring about a mutual benefit for the employee as well as the organization. The emphasis should not just be what the organization can do but also what the organization can do for the employee. The employee contribution must be clearly recognized.
The employees must be assigned the right jobs as per their knowledge, experience, attitudes and interests. Additionally, the employees must be made aware of company policies, procedures and objectives. Employees spend their major part of the day in the work environment so Management must make sure that working conditions are conducive to work. Physical facilities must be adequate, functional and acceptable. These must be the accepted standards of cleanliness, light, heat, air conditioning, ventilation, safety and sanitation facilities.
They must also be given the proper tools and machines to work with. Whenever the job requires some extra degree of risk or difficulty, then additional benefits and incentives must be offered. In addition, provisions for social activities as well as athletic activities would make the employees more dedicated and boost their morale. If they are allowed easy access to management and superiors to offer their suggestions and air out their grievances they will be more loyal to the organization. Management is also responsible to provide job satisfaction and happiness of employees.
The working environment should be enhance the employee’s confidence and faith in the organization. They workers should be encouraged to participate in the organization affairs as much as possible, especially in the formulation of procedures and policies affecting them this would encourage a sense of belonging. In addition, the employee contributions should be properly recognized and rewarded. The customers expect a quality product at a reasonable price with guaranteed satisfaction. It is the responsibility of the management to see that the interests of the consumers are promoted.
The quality of the product can be guaranteed by offering facilities for returning the defective product either for a refund of the purchase price of time. The customer’s confidence in the quality of the product can be strengthened. The product should be simple to operate and be made easily available through proper distribution channels and “the customer is always right”, has proved to be a good policy for initiating sales and keeping the customer. It is the responsibility of management to maintain the inter-business relationship at a level of high ethical standards.
All industries buy raw materials or semi-finished products from other industries. All business by some supplies form vendors. All companies sell their products to other companies and organizations like distributors and wholesalers. Management should therefore have fair trade practices, regarding their prices, the quality and the quantity of the product, methods of payment, time and mode of delivery, and quality of service. For an organization to survive in a country, it must operate within the legal systems of the country.
Management is responsible in adhering to all the laws which may be local, state or federal. For example; paying proper tax honestly and regularly on time is of utmost importance. Management must respect all laws pertaining to the environment. These may be related to air, water, noise and land pollution. Management must make special provisions for hiring, training and promoting employees belonging to such minority groups who have been discriminated against previously. These discrimination may have been on the basis of ethnic group, sex, or race.
Equal opportunities must be presented to all. People should be hired only on the basis of merit only. Management must respect the anti-trust laws. Few organizations that may dominate the market for a particular product should not conspire to fix prices or create artificial scarcity by hoarding and holding back supply of product. Management is also responsible towards the interests of the community like providing jobs within the community, hiring the handicaps, assisting in church and school activities, organizing sports tournaments and other cultural functions for the community.
Management can also raise funds for public activities such as opening of hospitals or other charitable activities and taking interest in all community affairs. Management as an art of getting things done functions by planning, organizing, staffing, directing and controlling. These functions of management are overlapping in nature and are highly inseparable. Each function blends into the other and each affects the performance of others. Planning This is the basic function of management. According to Koontz, “Planning is deciding in advance what to do, when to do and how to do it.
It bridges the gap form where we are and where we want to be. ” Management has chalk out a future course of action and deciding in advance the most appropriate course of actions of achievement of pre-determined goals. Management has to plan systematically about ways and means for accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of human and non-human resources. It is pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc. Organizing
According to Henry Faylor, “To organize a business is to provide it with everything useful or it’s functioning i. e. raw material, tools, capital and personnel’s”. Management must bring together physical, financial and human resources and develop productive relationship amongst them for achievement of organizational goals. Organizing as a process involves: Identification of activities Classification of grouping of activities Assignment of duties Delegating of authority and creation of responsibility Coordinating authority and responsibility relationships. Staffing It is the function of manning the organization structure and keeping it manned.
Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behaviour etc. management has to put the right man on the right job i. e. square begs in square holes and round pegs in round holes. According to Koontz and O’Donnelly, “managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal and development of personnel to fill the roles designed in the structure”. Staffing involves: Manpower planning Recruitment, selection and placement
Training and development Performance appraisal Promotions and transfers Directing This is the part of management function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the organization which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals.
Direction has the following elements; Supervision- overseeing the work of subordinates by their superiors. It is an act of watching and directing work and workers. Motivation- management inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose Leadership- this is why management guides and influences the work of subordinates in desired direction. Communications- this is the process where management passes information, experience, opinion etc. from one person to another.
It is a bridge of understanding. Controlling According to Theo Haimann, “Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation”. It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur.
According to Koontz and O’Donnelly, “Controlling is the measurement and correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished”. Controlling has the following steps; Establishment of standard performance. Measurement of actual performance. Comparison of actual performance with the standards and finding deviation of any. Correction action. With all the above said it clear that no organization can do without management. Management is a s critical the organization.
Answer to Question 2. The relevance of the 14 Principles of Henri Fayol Division of Labour Henry Fayol recommended that work of all kinds must be divided among individuals according to their expertise in a particular area. Subdivision of labour makes it simpler and results in efficiency. It also helps the individual in acquiring speed, accuracy in his performance. Specialization leads to efficiency and economy in business spheres. Party of Authority and Responsibility If authority is given to a person, he should also be made responsible.
In the same way if anyone is made responsible for any job, he should also have the concerned authority to go with it. There should be a balance between the two i. e. they must go hand in hand. Authority without responsibility leads to irresponsible behaviour whiles responsibility without authority makes persons ineffective. Principle of One Boss A subordinate should receive orders from and be accountable to one and only one boss at a time. When the subordinate receives instructions from more than one person it undermines authority, weakens the discipline and divides loyalty.
It creates confusion and chaos. It causes delays and makes room of escape of responsibility. It can also lead to duplication of work; overlapping of efforts which can be maximized elsewhere. Unity of command provides the organization a disciplined, stable and orderly existence. It creates harmony between the superiors and sub-ordinates. Unity of Direction There should be one head, one plan for a group of activities having the same objective. Related activities should be group together under a particular manager. It is necessary for sound organization.
It avoids duplication of efforts and wastage of resources. It leads to a smooth running of the enterprise. Equity Managers should be fair and impartial while dealing with the subordinates. They should give similar treatment to people of similar position. No discrimination. This creates and maintains a cordial relationship between the managers and sub-ordinates. Sub-ordinates are more devoted in an environment of equity. Order This principle is concerned with proper and systematic arrangement of things (material order) and people (social order). Material order will prevent accidents from occurring.
Misplacement would lead to misuse and disorder. Social order will make it easy for people to be contacted whenever the need arises. Discipline The best means of maintaining discipline is to have to have it at all levels, from superiors to sub-ordinates. Judicious use of all penalties. This will promote a healthy working environment where orders will be obeyed and responsibilities met. Initiative Management should give opportunity to its employees to suggest ideas, experience and new methods of doing things. People enjoy working in the organization because it adds to their zeal and energy.
It helps in developing an atmosphere of trust and understanding. Fair Remuneration Wages and salaries should be fair. It should depend on cost of living, work assigned, prevailing wage rates, ability of the company to pay etc. other benefits such as free education, medical and residential facilities to workers can also be provided. Employees will have a sense of belonging to the company and feel cared for. It will encourage workers to give off their best and be loyal to the company. Stability of Tenure Fayol emphasized that employees should not be moved frequently form one job position to another i. . the period of service should be fixed so that employees will not be tempted to leave the organization. This also gives the employee time to get used to a new work and succeed but if he is removed before that he will not be able to render worthwhile services. As a result the time, effort and money spent on training the worker will go waste. It also creates team spirit and a sense of belongingness among the workers which ultimately increase the quality and quantity of work. Scalar chain It refers to the line of command from the ultimate authority to the lowest.
This offers the organization a clear medium of sending and receiving commands, requests etc. though this can be temporarily broken for the sake of convenience and urgency if the situation so demands in the interest of the organization. Subordination of Individual Interest to General Interest An organization is much bigger than the individual it constitutes so in case of conflict the interest of the organization should come first. This can be achieved by good example on the part of the superiors, having fair agreements and constant supervision. Centralization and Decentralization
Centralization is a situation in which top management retains most of the decision making authority. Decentralization is disposal of decision making authority to all levels of the organization. An organization will achieve a lot more if it has here is a fair balance between the two. Absolute centralization or decentralization is not feasible. Espirit De’Corps Team spirit promotes harmony in the work groups and mutual understanding among the members. People enjoy working in the organization and inspires workers to work harder. It also promotes loyalty, dedication and commitment of the employees.
Cite this Assignment- General Management
Assignment- General Management. (2016, Oct 23). Retrieved from https://graduateway.com/assignment-general-management/