Read this essay to learn about Management of an Enterprise. After reading this essay you will learn about:- 1. Definition and Meaning of Management 2. Objectives of Management 3. Nature 4. Functions 5. Levels 6. Management an ‘ART’ or a ‘SCIENCE’? 7. Management as a Profession 8. Universality.
Contents:
- Essay on the Definition and Meaning of Management
- Essay on the Objectives of Management
- Essay on the Nature of Management
- Essay on the Functions of Management
- Essay on the Levels of Management
- Essay on Management an ‘ART’ or a ‘SCIENCE’?
- Essay on Management as a Profession
- Essay on Universality of Management
Essay # 1. Definition and Meaning of Management:
Ordinarily, ‘Management’ is an activity for getting the objectives of any enterprise accomplished through the efforts of its personnel.
For getting the work of an enterprise completed through the efforts of its people in grouped activities, it becomes necessary to guide, direct and unify human efforts towards the fulfillment of certain common goals.
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Management represents that skill or activity which directs, regulates and integrates human efforts in the discharge of all operations required for running an enterprise. Strictly speaking, management is a functional concept and it is so comprehensive and covers so many aspects that it is very difficult to give an exact definition of management.
Management, being a new discipline, has drawn concepts and principles from economics, sociology, psychology, anthropology, history and other subjects. The result is that each group of writers and thinkers has treated management differently. For example, the economists consider management as one of the factors of production; the sociologists see it as a class or group of persons; while the practitioners of management regard it as a process.
There are others to whom management is a technique of leadership or a means of co-ordination. Naturally, all these divergent groups view the nature and scope of management from their own angles. Taking all these points of view together, it is not so simple to define management in a precise and comprehensive way. Moreover, management is concerned with human beings whose behaviour is unpredictable.
However, to provide a background of the meaning of management, a few of its definitions as given by the renowned writers on the subject are stated below:
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Henry Fayol, the famous French Management expert, defined ‘Management’ in a manner that gives us a better understanding of the nature of management.
His definition runs as follows:
“To manage is to forecast and plan, to organise, to command, to co-ordinate and to control.” This functional definition of management gives us an idea as to what a manager has to do.
F. W. Taylor, the Father of Scientific Management, defined ‘Management’ as an art of “knowing what you want men to do and then seeing that it is done in the best and cheapest way.” This definition is productivity-oriented.
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Joseph L. Massie, an eminent Management author, observed ‘Management’ as a “process by which a co-operative group directs action towards common goals.”
Lawrence Appley, once the President of the American Management Association, gave a very acceptable definition—”Management is the accomplishment of results through the efforts of other people,”
Harold Koontz and Cyril O’Donnell defined ‘Management’ as the “creation and maintenance of an internal environment in an enterprise where individuals working together in groups can perform effectively and efficiently towards the attainment of group goals.”
The American Society of Mechanical Engineers has stated “Management is an art and science of organising and directing human efforts applied to control the forces and to utilise the materials of nature for the benefit of man.”
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According to D. S. Kimball “Management embraces all duties and functions that pertain to the initiation of an enterprise, its financing, the establishment of major policies, the provision of all necessary equipment, outlining the general form of organisation under which the enterprise is to operate, and the selection of the principal officers.”
In the light of the above discussion a comprehensive definition of ‘Management’ may be given as follows:
Management is the sum total of those activities which lay down plans, policies, procedures and programmes; secure men, money, materials and machinery required for the realisation of these purposes; put all of them into operation; co-ordinate various actions; supervise and check the performance of the men engaged for the execution of these desired operations and provide them material incentive and mental satisfaction.
The concept of management is universal in the sense that it is concerned with the government of industrial and commercial enterprises and any other organisation.
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Essay # 2. Objectives of Management:
The objectives of management may be classified into three categories as follows:
(i) Organisational Objectives:
The fundamental goals of any type of enterprise are survival and growth. It is management that acts as a tool for achieving these goals.
In order to maintain the existence and for development of any enterprise the managers have to perform the following tasks:
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(i) Ensuring maximum output with minimum costs;
(ii) Preventing the wastage and misuse of the natural, financial and human resources of the enterprise.
(iii) Optimum utilisation of the capital and giving certainty about the expected return on investment;
(iv) Arranging for progress and expansion of the enterprise; and
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(v) Increasing goodwill and prosperity of the enterprise.
(ii) Individual Objectives:
The owners and the employees have separate individual objectives. It is the responsibility of the managers to make balance between the objectives of these two groups.
For this purpose, the managers should:
(i) Ensure sufficient amount of dividend for the owners of the enterprise;
(ii) Arrange for adequate remuneration of the employees and security of their jobs;
(iii) Create good work environment; and
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(iv) Arrange for proper training for the development of the employees.
(iii) Social Objectives:
The business enterprises are important part of the society and these are established for meeting the social needs.
In order to fulfill the common goals of the enterprise and individual objectives of the owners and employees, the managers have to perform the following social functions:
(i) To supply goods and render services of proper quality to the customers at fair price;
(ii) To pay the Government tax and dues to the local authority in right time;
(iii) To arrange for preservation of natural resources and environment;
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(iv) To establish and maintain good relationship with the competitors and other concerned parties or institutions;
(v) To maintain and increase the ethical values of the managers themselves in their day to day work.
Essay # 3. Nature of Management:
The nature of management can be described as follows:
(i) Work Process:
Management consists of the basic and inter-related functions and activities which constitute a process known as ‘Management Process’. It is the function of guiding, directing and unifying human efforts and activities for the accomplishment of the given tasks.
It is, in other words, principally the task of planning, organising, directing, motivating, coordinating and controlling the efforts of others towards the attainment of specific objectives. Management mainly functions to utilise properly and effectively all the factors of production and its productive units for achieving the goal of an enterprise.
(ii) Co-Ordination of Different Elements:
The different elements essential for proper running of an enterprise are to be integrated. These elements are man-power, money, materials, machinery, methods, market and motivation. The managers co-ordinate these elements by scientific application of the principles of management, give life to the producing organisation and thus try to achieve the desired objectives.
(iii) Means of Accomplishing Objectives:
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Management links and puts together many things and many human faculties into one complete whole, creates an organisation with the allocation of authority, responsibility and exerts necessary leadership and control over the activities.
It thus directs the active operations within the enterprise and combines the work of the employees with the available resources and equipment for the realisation of its predetermined objectives.
(iv) Supervisory Activities:
Management is responsible for accomplishment of work through the efforts of other people. So, there is a distinction between those who have to work to perform the assigned tasks and those who have to take steps to see that this other category works effectively and fulfills the objectives set for them.
The former category consists of ‘workers or non-managers’, while the latter comprises ‘managers’ who have to guide, direct and co-ordinate the efforts of others towards certain specific objectives.
(v) Multi-Disciplinary:
Management is basically multi-disciplinary. This implies that, although management has been developed as a separate discipline, it draws knowledge and concepts from various disciplines such as psychology, sociology, anthropology, economics, ecology, operation research, statistics, history, etc. Management integrates the ideas and concepts taken from these disciplines and presents newer concepts which can be put in practice for managing the organisations.
(vi) Harmonisation of Diversity:
Various types of interested groups are found in the organisations. The owners of an organisation expect more profit, the employees claim for higher pay and bonus, the suppliers claim for ready settlement of dues, the buyers expect to get quality goods at a fair price, the surrounding society expects a usual contribution towards social development and the Government demands for more taxes, etc. The managers try to harmonies the expectations of these different interest groups in a planned way.
(vii) Universality:
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The universal character of management is evident from the fact that, its basic principles and techniques are applicable not only to business concerns, but also to non-business institutions like social, political, cultural, religious etc. situated in any country. In spite of differences in the activities of the organisations, the nature and pattern of management are similar. As such, managerial work has universal application.
(viii) Dynamism:
One of the most significant features of management is that it is dynamic. The principles of management are flexible in nature and these are to be modified according to the needs and situation.
(ix) Continuity:
Maintaining continuity is a fundamental nature of management. It continually goes on with the going of an organisation. So long business exists, the functions of management continue. Thus, it is the nature of management to go on performing the functions uninterruptedly.
(x) Management as a Class:
One of the important concepts of management is to regard it as a class. It signifies that the managers are given the full responsibility of management. Peter Drucker points out: manager manages the business, manages the managers, workers, and the work. In a big enterprise management is classified into three levels—top, middle, and lower levels of management.
The responsibility and decision making power are delegated step by step from the top to the middle and from the middle to the lower level of management. These three levels are separated from the ordinary workers and they are called management authority.
(xi) Mixture of Art and Science:
On the basis of modern outlook, management is considered to be a combination of art and science. Management is an ‘art’ since it is a process or method or knowledge or technique, which can be acquired by learning, which are applicable and applied to manage the affairs of an enterprise.
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Management is also a science as it is a particular knowledge guided by causes and effects, the basis of which is experiment or research, which are applicable to manage the affairs of all enterprises. It is obvious, then, that management is a mixture of art and science. Managers are management scientists and artists as well.
(xii) Management as a Profession:
Management is regarded as a profession by many, although it does not possess all the essential features of a profession. Those who practice the art of management have to function as members of a profession.
Essay # 4. Functions of Management:
Management is what a manager does. A manager gets things done by working with people and other resources in order to achieve an objective. He co-ordinates the activities of others. The functions of management are inter-related and inter-dependent. The sum total of managerial functions is known as the management process.
The principal functions of management in most of the business and non-business enterprises may be described as follows:
(i) Planning:
The first function of management is planning. Planning is deciding in advance what is to be done and the method of doing it in an orderly way. It is the determination of a course of action to achieve a desired result. It clarifies the objectives and evolves a complete set of policies, programmes and procedures.
The aim of planning is, of course, the establishment of objectives and finding out the way of realisation of these objectives through the optimum use of available resources. Planning includes some amount of forecasting and decision-making.
Forecasting is the process of assessing the future and providing for expansion and development in future. Decision-making will diagnose the problem, find out several alternatives, estimate the feasibility and profitability of the different alternatives, and select the best course of action.
(ii) Organising:
After planning, the next function of management is to establish an organisation. Organising means the creation of a structure of functions and duties to be performed by a group of people to attain the goals of the enterprise. The organisation structure consists of a series of relationships at all levels of authority through the division of total work.
For building up organisation structure, different departments are established and responsibilities are allocated to the separate managers for supervising them. The superior manager delegates some of his responsibilities and authorities to his subordinates.
(iii) Staffing:
This function relates to the personnel function of management. Staffing means the activities of regular employment of working personnel and dealing with all matters relating to the personnel. It includes filling up of the posts by recruitment, selection and appointment of the fit and proper personnel regularly, fixing up their wages and salaries, providing for their training and welfare activities, creation of better working condition etc.
Staffing is concerned with the finding out of right persons for different jobs in utilisation of their skill to a maximum extent for realising the objectives of the enterprise. It, therefore, primarily deals with manpower management and is always concerned with the effective utilisation of human resources.
(iv) Command:
Planning and organising are not sufficient to move the personnel or staff into action. For this, command is necessary. Command is the starting signal or order which moves the staff into operational activities. So a business does not begin to operate until the manager gives command.
By executing command function, the manager serves as the leader of the enterprise. Thus, it establishes a human and material relationship with clear and precise decisions and harmony in activities keeping in view the objectives and ventures of the enterprise.
(v) Direction:
Direction is associated with command. Working personnel start their work on command, but wait for direction of the manager as to how they will accomplish their work, what its type will be, what technique they will adopt for its accomplishment and how much of the work is to be performed.
Direction is the work of guiding and supervising the work of the subordinates. It includes necessary instructions for work performance.
Simply by assigning tasks, commanding and instructing the subordinates a manager’s work is not finished. He has to see and constantly supervise that his subordinates are performing their allocated duties properly. For the success of the business, direction should be precise, clear and acceptable. It must be thoroughly understood, received and respected.
(vi) Motivation:
Motivation may be regarded as the most vital element in the process of management. It is the act of stimulating someone to get a desired course of action. It creates willingness in the personnel to work and co-operate for the accomplishment of common purposes. It is the actuating force that inspires a man to put his best for the fulfillment of his assigned task.
Motivation is a powerful tool in the hands of the managers to develop and intensify a desire in every member of the organisation to work effectively for achieving the established goals. Direction or command will lose much of its significance and effectiveness unless the workers are motivated to their jobs.
The manager’s duty is to study carefully the needs for which the subordinates are striving and to see that these needs are fulfilled.
(vii) Co-Ordination:
Co-ordination involves unification and integration of group efforts. The aforesaid functions will not give the desired result unless the operation of different parts of the organisation are carefully blended and harmonized. And this is the task of coordination.
Co-ordination is the orderly arrangement of group efforts to provide unity of action in the pursuit of a common purpose. Co-ordination maintains a balance among different activities of an enterprise and helps running it smoothly.
(viii) Control:
Control is to see that the performances of the organisation are matched with the plans. As Henry Fayol observed – “control consists in verifying whether everything occurs in conformity with the plan adopted, the instructions issued and principles established.” Its object is to point out weakness and errors in order to rectify them and prevent their recurrence.
A manager is to see that everything is being done according to the policies laid down and the instructions given and that actual performance corresponds with the planned course of action. Control is the ultimate weapon in the hands of the managerial force to remove mistakes or faults, to modify defective plans, and to effect co-ordination of diverse elements where it is lacking.
Setting standards for measuring the desired works, evaluation of performances and taking corrective actions are the steps involved in controlling. The controlling function of a manager may be compared to the control of flying a kite by its owner.
The above-noted functions are regarded as the basic functions of management. But there are also some ancillary functions that come along with executing those functions.
These are mentioned below:
(i) Innovation:
Innovation is an important function of management. For growth and expansion, the managers should promote innovations. Managerial innovation includes the introduction and application of new or modern techniques of management and introduction of new means of success.
Keeping an eye to the present changes and future demands is a must for innovation. Innovation is essential to cater to the needs of modernisation of production to survive in cut throat competition.
(ii) Reporting and Budgeting:
To ensure effective control management requires reporting and budgeting. The details of execution and progress of work is conveyed to the concerned authority through submission of reports. Budgeting enables control over financial aspect through allocation of resources in the form of income and expenditure. This reduces the chances of waste.
(iii) Communication:
Communication refers to convey and exchange of facts, information, instructions, orders, advice etc. with the people within and outside the organisation. It is an essential part of management and the key to its functioning. The leader and the higher executives of an organisation can establish their authority over their subordinates through a good system of communication.
The managers are required to explain the principles of the enterprise to the employees working at different levels and report to the higher authority about the compliance of the principles by the employees. The managers order the employees to finish their allotted work timely, on the one hand and collect information regarding their wants and grievances on the other.
Misunderstanding among the employees is the main problem on the way to co-ordination. This can be avoided if there is a scope for mutual discussion. All these activities are within the purview of communication. Therefore, the manager cannot perform his duties efficiently without establishing a proper communication system in an organisation where a large number of employees are at work.
(iv) Representation:
This is also considered to be one of the important functions of management. It involves representing the organisation in dealing with the external world. The act of representation is to explain the principles and methods of activities of the enterprise to the customers, workers’ union, suppliers of materials, financial institutions, government officials and the public in general, and to maintain contact with them.
Essay # 5. Levels of Management:
The number of levels of management in an organisation depends on its size, technology used and the degree of diversity in its range of production. A large concern needs a number of levels of management so that the activities at different points are properly planned, organised, directed and controlled.
Similarly, a concern using a complex technology of manufacture i.e., a technique where a product passes through several stages to become the final output also needs to set up several levels of management. And of course, a concern manufacturing a large number of diverse products needs several layers of management.
A business enterprise may have different levels of management:
(i) Top level to include the directors and senior executives,
(ii) Middle level to include departmental heads and superintendents, and
(iii) Lower level to include foremen, supervisors, overseers etc.
In order to ensure greater efficiency and productivity, the levels of management should be kept to the minimum. Thoughtless increase in the number of levels will increase costs and create problems of communication between the various levels—thus making effective co-ordination and control a difficult task.
Lack of communication between the management employees and operative staff may also cause misunderstanding and bitterness.
The functions of different levels of management may be discussed in the following manner:
(A) Top Level Management:
Top managers refer to those who occupy the top most positions in the organisation and are entrusted with the responsibility of planning and executing broad policy decisions. Thus top level of management in an organisation like a public limited company comprises the Board of Directors, Chief Executive like the Managing Director or General Manager and the senior executive like the Deputy General Manager. The Board of Directors lays down the objectives and policies. He who is in charge of the execution of these objectives and policies is known as the Chief Executive.
He is assisted by the senior executives. He issues instructions for execution, takes all necessary steps to put into effect the objectives and policies laid down by the Board. He is also responsible to the Board for the progress of the company. He is to submit accounts, statistics and reports from time to time to the Board for evaluation of his performance.
He is also the chief liaison officer who maintains a link between the Board and the rest of the personnel of the organisation. He is to see that all functions are properly exercised for the business. On the whole, top level management is more creative than operative.
Top level of management generally performs the following important functions:
(i) Determining the general objectives and policies of the business;
(ii) Laying down the guidelines for the departmental heads;
(iii) Organising the business into various sections and departments for the efficient accomplishment of the enterprise goals; and
(iv) Reviewing the work of the executives at different levels and ensuring that their performance is in accordance with the pre-determined plans.
(B) Middle Level Management :
The heads of different departments such as Purchase Officer, Production Manager, Sales Manager, Personnel Manager, Chief Engineer, Secretary, Chief Accountant, Research and Development Officer, Public Relations Officer and such other personnel of similar rank constitute the middle level of management.
They lie between the top management personnel above and the supervisory staff below. They have to take instructions from the chief executive and direct and guide the supervisors under their charge.
The primary function of middle level of management is to maintain coordination between different departments. Middle level management assists the top level management to understand the problems of different departments. This level is, thus, less creative but more coordinative.
The important functions of the middle level of management may be stated as follows:
(i) To determine the short-term goals of their departments;
(ii) To prepare plans including programmes, work schedule etc.
(iii) To provide link between the top level management and lower level management by explaining the policies and directions of the former to the latter and conveying the feelings and grievances of the latter to the former;
(iv) To train, direct and guide the subordinates; and
(v) To keep close control over their activities and check their performances regularly.
(C) Lower Level Management:
The lower management level consists of Foremen, Supervisors, Office Superintendents, Section-in-charges, Sales Executives, Inspectors etc. Being placed at the bottom of the hierarchy of management they are directly in touch with the operating workers. They are more concerned with getting the work done by the staff under their control. They instruct, guide, encourage and order the workers to do particular tasks.
The grievances of the workers are represented by them to the higher levels of management. They have to establish high morale in their subordinates. The most important part of their job is to see that the work is properly carried into effect by the workers according to order and instructions issued.
The lower management personnel are the real working managers, because they are required to deal with the actual work to be accomplished, the people who are to do the work and the environment in which they will have to work.
By getting the work done by the workers, they represent the workers before the middle level of management to whom they look forward for their own security and promotion as well as for decisions, orders, help and guidance. These personnel also represent the higher management authority to the workers. The lower level management is, thus, mainly operative and is concerned with the workers, works and equipment directly.
The functions of lower management are as follows:
(a) To plan and organise the work of their respective units or sections;
(b) To maintain records of performance;
(c) To train up the workers;
(d) To ensure their safety and good working environment;
(e) To take care of the machinery and equipment;
(f) To build up morale of the workers and improve productivity; and
(g) To give effect to the directives of the middle level of management etc.
The relationship between these levels is that the top level management directs the middle level. Middle level managers get the instructions from the top level, direct the lower level managers and control them. They are responsible and accountable to the top level. Lower level managers are to submit an account of their performances to the middle level management.
Essay # 6. Management an ‘ART’ or a ‘SCIENCE’?
There is a controversy whether management is an ‘art’ or a ‘science’. However, management is both an art and a science.
This aspect is explained below:
(A) Concept of ‘Art’:
An ‘Art’ is a practical skill for the effective accomplishment of some concrete results. It is acquired by learning and is related to application of intellect and techniques. Art is thus concerned with the understanding of how a particular work can be performed. It is a blend of imagination, skill and experience to do something.
Painting of a picture is an art, since a picture is painted by imagination with skill and experience of an artist. As an art is concerned with the creation of objects or events it is called creative.
Management as an Art:
According to some experts, management is an art.
They advance the following reasons in support of their claim:
1. The process of management does involve the use of know-how and skills like any other art such as music, painting, sculpture etc. A person is able to manage well if he has the social skills necessary for the exercise of leadership and the technical skills and knowledge required for correct decision-making on various aspects of the work of an organisation.
2. The process of management is directed to achieve certain concrete results as other fields of art do. Projects have to be completed, production levels have to be attained, sales target are to be hit, a proper rate of return on investment is to be secured, the distribution of product has to be arranged for different territories, and peace and harmony have to be maintained in relations with the workers. These are some concrete ends for the accomplishment of which management has to strive.
3. Good management is effective management. Unless the exercise of management results in effective realisation of organisational goals, it is not considered successful.
4. Management is creative like any other art. It creates new situations for further improvement.
5. Management is personalized in the sense that every manager has his own approach and technique in solving the problems. The success of managerial task is related with the personality of the man apart from the character and quality of general body of knowledge,
(B) Concept of ‘Science’:
‘Science’ is a body of systematized knowledge based on careful observation, research and experiment, accurate measurement and inferences or conclusions derived from detailed analysis of data, i.e., facts and figures. Science provides the theory, principles, and the laws which are widely and universally accepted as truth.
Management as Science:
Management does satisfy the basic characteristics of science. Management is coming up as a body of organised and systematized knowledge. Through critical examination it has evolved certain basic principles and elements in the form of management process which have universal application in any type of organisation—profit- taking as well as non-profit enterprises. As such, management is regarded as a science also.
Management is a science for the following reasons:
1. Scientific approach, specialised knowledge and experience are required for making the best decision and for finding the best way of managing the activities of a business enterprise.
2. According to Taylor, management is a science-based method, which is based on the truth or reality of facts and experiences of successful managers.
3. Management is a scientific method, which is applied to avoid errors or omissions or commissions of the managers.
4. Specialisation is essential in management as in science. For example, special knowledge, skill and efficiency are required for solving the intricate problems of accounting and forecasting.
Management, however, is not comparable to exact Pure Sciences like Physics, Chemistry and Mathematics. Management is basically concerned with the direction of human effort and accomplishment of work and, as such, deserves to be placed in the category of Social Sciences like Economics, Psychology, and Sociology etc.
It is quite obvious that the principles of management are not fundamental truths and their application may not yield the desired results always. Human behaviour is ever-changing and unpredictable. It is not governed by the laws of mechanics. Hence, management dealing with complex human beings is bound to be an inexact science.
(C) Management: Both Science and Art:
Management may be regarded as both an art and a science. The science of management provides certain general principles which can guide the managers in their professional efforts. The art of management consists in tackling every problem in an effective manner.
Thus, to be a successful manager, a person requires the knowledge of management principles and also the skills of how that knowledge can be applied. Absence of either will result into inefficiency.
As a scientist, the manager relies on the existing theory and philosophy of management and develops new knowledge, new principles and new schools of management thought. As an artist, he has to depend on his own experience and judgment while making a decision on any managerial problem and taking action on the decisions to realise the objectives. Scientific attitude and scientific method shall be applied in problem-solving approach, e.g., marketing research, business research etc.
In reality, theoretical base of knowledge is essential for developing sound practice. Theory must be supplemented by practical knowledge continuously. Science and art are complementary and each supplements the other. For example, theoretical teaching of medicine and engineering is invariably accompanied by practical work in a hospital or workshop.
We need artistic managerial ability to perform a managerial job. The art of management is fully reflected in the decision-making capacity of a manager. Management and managerial success depend upon the skillful art of application of scientific theories and principles of management. So it is obvious that management is both an ‘art’ and a science’.
Essay # 7. Management as a Profession:
Management is regarded as profession by many, although it does not possess all the requisite features of a profession. Therefore, it is desirable to find out whether management is a profession. ‘Profession’ is an occupation in which one to be specially educated and trained in a particular subject, for rendering his services to people of the society with their specialised knowledge, skill and proficiency.
The professionals like lawyers, doctors, chartered accountants etc. help people to solve their problems by the application of their expert knowledge. All professions are occupations in the sense that they provide means of livelihood. However, all occupations are not professions because some of them lack certain characteristics of a profession.
The following are the fundamental characteristics of a profession:
1. Existence of an organized and systematized body of knowledge:
Profession emerges from the establishment of the fact that there is a body of knowledge which has to be studied for being a successful professional. This is true for all professions.
2. Formal method of acquisition of knowledge:
One has to acquire the specialised knowledge and skills through formal training from a recognised institution in order to take up a profession as his occupation. After passing the prescribed examination of the recognised educational institution, one becomes a professional in his discipline.
3. Existence of Professional Association:
Members of a particular profession form themselves into an association that works as an authoritative body of that profession. The professionals have to obtain a licence and a certificate of practice from this body.
4. Formulation of Ethical Codes:
For every profession, some ethical standards are formulated by the controlling authoritative body and every individual of the profession is expected to maintain conformity with these standards.
5. Service motive:
While ethical code provides the behavioural pattern for professionals, service motive concept suggests that the professionals should keep social interest in their mind while charging fees for their professional services.
Management has been developed as a distinct body of knowledge. The development of knowledge in management field has been due to the need for managing complex and large organisations in a better way. Thus, management satisfies the requirement of a profession in the form of existence of a specialised knowledge.
In India and in many countries in the West, almost all the aforesaid characteristics are present in management. However, the receiving of specialised education and training by the managers and management consultants and obtaining licences and certificates by them have not yet been made compulsory by the authority.
Therefore, management cannot be termed as a true profession, though it is emerging as a profession and the move is towards management as profession. Management may not be a profession similar to the medical or legal profession but none can deny that it possesses some important and basic elements of a profession.
As such George S. Claude says:
“Management is not outright a profession, but is taking giant steps in that direction.”
Professionalization of Management in India:
The basic characteristics of management as a profession are found in Indian management in varying degrees. Facilities of formal education in management, establishment of All India Management Association, growing divorce of ownership and management in the public companies, and formulation of code of conduct by All India Management Association suggest that management is now professionalized in India. However, this is not the total picture of Indian management.
Indian industry is under-developed, partly because its management is unscientific, inefficient and inactive; and mainly because it is managed mostly on family basis, under the control of big business houses. Management of joint stock companies, since its inception in India, has been in the hands of members, friends or relatives of those families.
The positions of top level executives of the family business are held by them. They are privileged to be the directors, executives, managers etc. even though they might have limited or no academic or professional qualification, knowledge, efficiency, experience and training in management.
The features of an enterprise managed on family basis are:
(i) Its management and control remain confined to the members of a family or their friends and relatives;
(ii) Its objective is to maximise profit, even at the cost and interest of the shareholders, society, state and the nation;
(iii) It is not managed almost in all cases strictly in accordance with the widely accepted scientific theories, norms and principles of modern management.
In India, big business and industrial enterprises have tremendous prospects and potentialities before them. There is probably only one impediment to their success, and it is the absence of professionalization in their management. For successful, fruitful and effective management that is most vital for attaining the desired objectives of an enterprise— its management should be divested from its ownership.
It should be placed under the control and responsibility of the professionally qualified and trained managerial personnel.
In this context, P. L. Tandon, an eminent management expert, observes:
“In a family business, you have professional engineers, accountants and marketers, but all decision-making is centralised at the top, with the head of the family, who has no professionalism, but perhaps only experience and intuition, the decisions are not likely to be as good as that of a modern professional Board.”
Professionalization in management, thus, is not adequately introduced by the entrepreneurs in management of private sector enterprises in India and so, in professional management, India has not yet been able to improve her position. In public sector enterprises, in the role of entrepreneur, the state aims not only at earning profit, but also at discharging its duties and responsibilities to society, country and the nation.
In reality, in many public sector organisations, the situation is not at all better. It implies that the government—while running the public sector enterprises as entrepreneur—does not seem to be fully aware of the need of managing the enterprises according to the modern theories, norms and principles of management by professional managerial personnel in all levels.
Mainly the personnel of administrative services are appointed at the top or middle level management of the public sector enterprises. However, in recent past, trend to employ qualified and trained managers in these enterprises has been noticed, but that is not sufficient to claim that management in this sector has been able to gain the professional status.
The above discussion suggests that management in India is slowly marching towards professionalization, though a large part of it is still following the traditional pattern of management. However, in the time to come, the process of professionalization of management is likely to be faster because of the increasing complexity of managing business, growing awareness of the need for professionalization, and more and more availability of professionally trained managers.
Finally, it can be said that, unless acquisition of professional qualification and training by the managers are made compulsory, adequate number of professional institutions are set up for imparting education and training on management principles and practice and unless it is fully conceived that the qualified and professional managers are not only needed for multinational concerns but also for institutions of all size and nature, professionalization of management in India would remain a far cry.
Essay # 8. Universality of Management:
Management as a process is universal for it is found in all organised activities, irrespective of country, culture, or size. Its principles are widely applicable to all concerns, where a collective effort is made towards attainment of certain common objectives.
The various elements of management process i.e., planning, organising, staffing, directing and controlling are universal for all organisations and a manager must perform these functions.
Only the intensity of a particular element may differ depending on the variables affecting management practices. This is the principle of universality of management. It implies that any theory or principle about a particular managerial function will be applicable to all managers-irrespective of their levels in the organisation.
In every social institution like school, college, university, temple, church, hospital, club, municipality etc. the same process of management is required. The secretary of a club, the head priest of a temple, the bishop of a church, the chairman of a municipality, the head of an educational institution and even the prime minister of a country has to perform the same managerial job as the manager of a business enterprise does. So management is a function applicable not only to the business enterprises but to other social organisations also.
F. W. Taylor believes in the universality of management. He points out:
“The fundamental principles of scientific management are applicable to all human activities from our simplest individual acts to the work of our great corporation.”
According to Henry Fayol, the general principles of management are applicable to enterprises of any nature, kind and size.
Koontz and O’Donnell says:
“Management’s fundamental theory and principles have universal application to every kind of enterprise and at its every level.”
Another concept of universality of management is that the managerial knowledge and experience can be transferred from one person to another person, from one firm to another firm in the same country and from one country to another country.
Since the basic function is the same, the experience a manager has gained in one enterprise or department or performing any activity, he can use it in another enterprise, or department or activity.
The technical task may be different in different enterprises or activities but the managerial task is the same.
Dalton E. Mcfarland observes:
“Management skill is an exportable commodity and indeed, it is one of the important exports of the multinational or international firms.” He means that, management is universal, as its principles and knowledge are transferable from one institution to another or even from one country to another country.
However, some persons like Gonzalez, Macmillan and Robert Simon do not agree about the universal nature of management. For, Gonzalez and Macmillan say – “Management philosophy is culture bound implying thereby that external environmental forces influence the management philosophy.”
To them management is entirely situational and there is nothing like universal principles of management. The application of the principles of management depends upon culture and environmental conditions of the organisations. These principles and methods are not universally applicable.
But it is evident from the observations of majority of the authorities that the concept of universality of the methods and principles of management are widely accepted. Where there is a need of a collective effort for reaching the common goal, the necessity and universality of the methods and principles of management cannot be denied.