Management
Origin of the Term: The term “Management” is derived from the French word ‘Menage’, which means ‘housekeeping’.
Definitions of Management: SRF (2016): “Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.”
Management involves managing Men, Money, and Material.
Mary Parker Follett: “Management is the art of getting things done through other people.”
Management = Men + Money + Material + Method + Machine + Market (6Ms of Management)
Peter Drucker (Father of Modern Management Practice): Management is a multi-purpose organ that manages business, managers, and workers.
Nature and Function of Management:
- Modern Management Functions (POSLC):
- Planning
- Organizing
- Staffing
- Leading
- Controlling
- Siamese Twins of Management: Planning and Controlling are called the “Siamese twins” because they are interdependent.
- Management as a Practice: It is considered an Art, because it requires skill, creativity, and experience.
- Aim of Management: To create surplus (maximize output using minimum input).
Productivity and Efficiency:
- Productivity: It is the output-input ratio within a given time period, with due consideration to quality. (Productivity = Output / Input)
- Efficiency: It is the achievement of goals with the least amount of resources, emphasizing doing things right.
- Effectiveness: Refers to doing the right things to achieve the desired goals.
- Management is concerned with both: Efficiency (optimal use of resources) and Effectiveness (achievement of objectives) Together, they enhance productivity.
Levels of Management
Level | Examples | Key Role |
Top Level | CEO, MD, Board of Directors | Strategic planning and policy formation |
Middle Level | Dept. Heads, Plant Managers | Execution of policies, coordination |
Lower/Supervisory | Foreman, Supervisor, Section Officer | Direct supervision, day-to-day control |
Skills in Management
Three Basic Skills by Henri Fayol; Popularized by Robert Katz
Skill | Description | Level of Management | Key Points |
1. Technical Skill | Ability to use tools, techniques, methods, procedures, and specialized knowledge | Required mostly at lower/supervisory level | – Easy to learn |
2. Human Skill | Ability to work with, understand, and motivate individuals and groups | Required at all levels | – Essential for teamwork |
3. Conceptual Skill | Ability to visualize the organization as a whole, coordinate and integrate interests | Required mostly at top level | – Needed for decision-making |
📌 Top Management: Conceptual, Design & Human Skills
📌 Middle Management: Conceptual ↑, Technical ↓, Human Skills essential
📌 Essence of Managership: Coordination
Key Management Concepts
- Departmentation: Grouping of activities into units for administration.
- Supervision: “Acid Test” of management—measures effectiveness of interaction with subordinates.
- Development Administration: Term coined by George Gant.
- Father of Modern Management & Administrative Theory: Henry Fayol
