Speech on Management in Simple and Easy Words! Learn about:- 1. Speech on the Definitions of the Term Management 2. Speech on Different Concepts of Management 3. Speech on the Objectives of Management 4. Characteristics 5. Functions 6. Nature 7. Scope 8. Administration and Management 9. Functional Areas 10. Levels 11. Social Responsibilities 12. Professionalization 13. Importance 14. Limitations 15. Speech on Management in the Future.
Speech on Management
- Speech on the Definitions of the Term Management
- Speech on the Different Concepts of Management
- Speech on the Objectives of Management
- Speech on the Characteristics and Features of Management
- Speech on the Functions of Management
- Speech on the Nature of Management
- Speech on the Scope of Management
- Speech on Administration and Management
- Speech on the Functional Areas of Management
- Speech on the Levels of Management
- Speech on the Social Responsibilities of Management
- Speech on the Professionalisation of Management
- Speech on the Importance of Management
- Speech on the Limitations of Management
- Speech on Management in the Future
Speech on Management # 1. Definitions of the Term Management:
Management is understood in different ways by different people.
To gain a better understanding about the nature of management, let us examine a few important definitions as below:
1. ‘Management is what a manger does’ – Louis Allen
2. ‘Management is the act of getting things done through people’ – Mary Parker Follet
3. ‘Management is the art of getting things done through the efforts for other people’ – Lawrence A. Appley
4. ‘Management is the use of people and other resources to accomplish objectives’ – Louis E. Boone and David L. Kurtz
5. ‘Management is a multipurpose organ that manages a business and manages mangers and manages worker and work’ – Peter F. Drucker
6. To manage is to forecast and plan, to organize, to command, to coordinate and to control – Henry Fayol
7. ‘Management is a process by which the elements of a group are integrated, coordinated and utilized so as to effectively and efficiently achieve organizational objectives’ – Howard M. Carlisle
8. ‘Management is a process by which managers create, direct, maintain and operate purposive organizations through systematic, coordinated, cooperative human effort’ – Dalton E. McFarland
9. ‘Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims’ – Harold Koontz and Heinz Weihrich
10. ‘Management is the process of planning, organizing, leading and controlling the efforts of organization members and of using all other organizational resources to achieve stated organizational goals’. – James A.F. Stoner
The above definitions suggest the following features of management:
I. Management is universal
II. Management is purposeful
III. Management is multidisciplinary
IV. Management is a coordinated effort
V. Management is a continuous process;
VI. Several inter elected activities have to be performed by managers irrespective of their levels to achieve the desired goals;
VII. Managers use the resources of the organization, both physical as well as human, to achieve the goals;
VIII. Management is ensuring effective use of resources.
IX. Managers carry out the functions of planning, organizing, staffing, leading and controlling.
Speech on Management # 2. Different Concepts of Management:
This term has been used in different senses. Sometimes this management Principles of Management has used to refer the group of ‘Managerial Personnel’ in an organization. Sometimes it refers to the process of planning, organizing, staffing, directing, coordinating and controlling. Some management scientists described this management as a body of knowledge, a practice and discipline. There are some who describe it as a technique of leadership and decision-making.
Some others have analyzed management as an economic resource, a factor of production or a system of authority. Sometimes management referred to the mobilization, allocation and development of materials, machinery, technology and other facilities to convert ideas into results and performance. Some considers management as people because it must understand and fulfill the needs, aspirations and values of people.
There are three opinions as given by Theo Haimann about management. He has used management as- (1) Management as a noun (2) Management as a process and (3) Management as a discipline.
Joseph marric has viewed this management as a process by which a cooperative group directs actions towards common goals.
As per Henry L. Sick, the management is the co-ordination of all resources through the process of planning, organizing, directing and controlling in order to attain stated goals.
Speech on Management # 3. Objectives of Management:
Today, businesses operate in large scale catering to different types of customers producing a variety of products and services. A managerial structure or the management helps to deal with possible complexities with relevant solutions.
Main objectives of management are as follows:
Organisational objectives can be explained as follows:
(i) Organisational objectives are overall goals, purpose and mission of a business that have been established and communicated to the employees by the management.
(ii) These objectives focus on profit-making or revenue generation, growth and sustainability in the long-run in any profit or non-profit business. These profits are reused for bearing risks and maintaining consistency in operations.
(iii) Organisational objectives include suitable strategies and business practices that lead to utilisation of any given resources (mostly limited but) optimally to secure maximum output.
(iv) Organisational objectives can facilitate efficiency without causing rework or wastage of products / services or breakdowns in the system, with proper utilisation of factors of production.
(v) Accordingly, these objectives lead to saving time, effort and money which is required to obtain maximum output and provides a competitive advantage to the organisation (vis-a-vis their competitors).
Social objectives can be explained as follows:
(i) Social objectives of management are associated with an organisation’s commitment towards the well-being of the society.
(ii) Social objectives aim at developing and stabilising individual interactions between stakeholders that directly and indirectly influence a business’ operations.
(iii) These objectives can attempt to supply products and services at reasonable prices, community development, establishment of health care, educational and training facilities, providing environment-friendly products/services, etc.
(iv) These objectives ensure better standard of living internally, the communities residing around the organisation and the overall society.
Personal objectives can be explained as follows:
(i) Personal or individual objectives are related to employees of the organisation.
(ii) These objectives attempt to establish a strong and positive relationship between employers and employees and helps to create efficiency among employees.
(iii) These objectives include conducting training programs, employee engagement programs, rewards and recognitions leading to willingness to work efficiently and generate profits for the employers.
Speech on Management # 4. Characteristics and Features of Management:
After an analysis of the above definitions, the following characteristics of management come out:
1. Management is a Universal Process:
The basic principles of management are universal in character. They apply more or less in every situation. Henry Fayol pointed out that the fundamentals of management are equally applicable in different organizations- business, government, military and other. All managers perform the functions of management. Management is needed in all sorts of organizations. Every manager performs the same basic functions of planning, organizing, leading and controlling irrespective of his rank or position.
2. Management is Purposeful:
Management aims to achieve specific objectives. All activities of management are goal-oriented. The success of management is gauged by the extent to which the desired objectives are achieved. Goals provide justification for the existence of an organization. The stated goal of a university might be to give students a well-rounded education in an academic community.
3. Management is Creative:
Management makes things happen which would not otherwise happen. The managers try to achieve the objectives with higher efficiency at minimum possible cost. The management seeks to make a productive enterprise out of available resources-physical, human, financial and others. The basic purpose of management is to make optimum utilization of resources with efficiency and effectiveness.
4. Management is Integrative:
The essence of management rests on the coordination of activities into a team. Management attempts to integrate individual goals with organizational goals.
5. Management is a Group Phenomenon:
Management involves the use of group processes in the achievement of common objectives. It seeks to exercise influence upon human behavior in organized action. People join groups to achieve what they cannot achieve individually.
6. Management is a Continuous:
Management is a dynamic, complex and an on-going process. The cycle of management continues to operate so long as there is organized action for the achievement of group goals.
7. Management is Multidisciplinary:
Managers have to deal with human beings under dynamic conditions. Therefore, it depends upon wide knowledge derived from several disciplines like economics, sociology, psychology, engineering and anthropology etc. Massie remarks that the chief characteristics of management are the integration and application of the knowledge and analytical approaches developed by numerous disciplines.
Speech on Management # 5. Functions of Management:
“Management is what management does”- points out the functional approach to management and emphasises the importance of distinctive managerial functions which together give us unified concept of the process of management. Functions of management are also called elements of management.
An analysis of the functions of management points out what management does. It also provides the basis for defining precisely the word ‘management.’
Broadly speaking, a manager is called upon to perform the following managerial functions:
(7) Co-coordinating, and
Some authors include staffing within organising and consider coordinating and communicating as vital part of motivation and leadership.
Flow of Managing Process:
The sequence of manager’s functions begins with planning. However, a manager performs all six functions simultaneously or several times during the working day. Leading, motivating, coordinating, and communicating constitute enacting management-in-action.
When management is reviewed as a process, planning is the first function performed by a manager. The work of a manager begins with the setting of objectives of the organisation and goals in each area of the business. This is done through planning.
Manager probes the present to find out where he is and he then forecasts future objectives which will indicate where he wants to be, i.e., the destination to be reached. The alternatives to achieve the objectives are evaluated and the selected alternative becomes the plan of action.
Through taking purposeful action regarding the company’s major asset its future the manager assumes the first managerial function viz., planning. Rather than managing somehow, he plans in advance the future course of action on the basis of facts and figures about the opportunities to be capitalised and threats to be overcome in the near future. A plan is a predetermined course of action to accomplish the set objectives. It is today’s projection for tomorrow’s activity.
Once the plan is formulated, the manager has to indicate the objectives of the plan and steps to be taken by his subordinates. By communicating he makes the objectives effective. In practice, planning function is all-pervading. It is involved in organising, leading, motivating, and controlling.
Budget is a part of planning as well as an instrument of control planning makes things happen that would not otherwise occur. Planning involves developing objectives, strategies, policies, procedures, programmes, etc. As it involves making choices, decision-making is the heart of planning.
Managing a business is not just planning. It includes putting life into- the plan by bringing together the executive personnel, workers, capital, machinery, materials, physical facilities and other things or services to execute the plans. When these resources are assembled the enterprise comes to life.
Organising involves determining activities needed to fulfil the objectives, grouping these activities into manageable units or departments, and assigning such groups of activities to managers. Delegation of authority creates an organisation. It determines authority-responsibility relationship. These relationships must be properly coordinated to secure unity of organisation.
Hence, the work of managing includes both planning and preparing to do, i.e. both planning and organising. Organising to achieve the plans is ‘the tooling process or the preparation for the work to be done. Planning involves thinking, deliberation and decision-making regarding the future course of action.
Organising provides a framework of management or a mechanism for purposive, integrated and co-operative action by many people, in a joint effort to implement any plan. Planning decides what management wants to do, while organising provides an effective machine for achieving the plan or objectives. Under organising we have mechanical as well as human aspect.
Mechanical aspect provides an organisation structure or chart, describing the authority-responsibility relationship. Side by side with formal organisation structure, we have also an informal or social organisation having an informal group leader, unwritten conventions and code of conduct, and manager has to integrate both these organisations in order to execute the plans and policies.
Staffing involves filling positions needed in the organisation structure by appointing competent and qualified persons for the jobs. This needs man-power planning and manpower management. We have scientific selection and training of personnel. We have to provide suitable methods of remuneration and performance appraisal.
Much of the work relating to human resource planning and management is delegated to a personnel manager. However, top management is ultimately responsible for all activities relating to staffing.
4. Leading (Directing):
Some management experts prefer leading in place of directing particularly under democratic managerial set up. The function of leading has been termed motivating, directing, guiding, teaching, stimulating and actuating. This managerial function is directly concerned with the human factors of an organisation.
Manager by leadership and motivation has to direct, lead and guide all subordinates and get the work done through people. Direction involves managers, managing workers and the work through the means of motivation, proper leadership, effective communication as well as co-ordination.
Manager must develop the ability to command and lead. He must know how to direct others, i.e. how to issue orders and instructions without, arousing resentment or offence and he must be able to secure willing obedience from his subordinates without destroying their initiative and creativity. The term ‘Leading’ instead of ‘Directing’ reflects the trend of modern management philosophy.
The reader should always use leading as the basic management function. Directing connotes autocratic and command management. It is a misfit under democratic managerial leadership. Leading is the art of influencing people so that they work willingly and enthusiastically in order to achieve group goals.
This managerial function is fully reflected when we define management as the art of getting things done willingly through and with other people.
Management is interested in two primary elements:
(1) Things, i.e. material resources and
(2) Men and women, i.e., human resources.
A thing is subject to the laws of mechanics and it is susceptible to scientific or machine like treatment. But human beings cannot be subjected to scientific or machine like treatment. However, through the power of leadership and the science of co-operation, we can evolve a suitable method of integrating the interests of individuals and the organisation. Motivating is inseparably intertwined with leadership.
The power of management exists with or through people, but never over them, at least in a democratic society. Authority may be imposed from above but it must be supported, nourished and recognised from below, i.e., from the subordinates. Then only the authority is meaningful and it can work smoothly.
The managerial power has its source in the methods of leading, motivating, appraising, teaching, influencing, counselling, coaching, delegating and setting an example. So the manager plans, organises, leads, and motivates the people working with him. Motivation and leadership are the master keys to successful management of any enterprise.
They are also responsible to ensure productivity of human resources. Motivation can set into motion a person to carry out certain activity. Motivation assumes unique importance in modern business management. Democratic leadership heavily relies on motivation of employees, through financial and non-financial incentives.
Human relations in industry have accorded special emphasis to this managerial function. Effective communication and participation enhance the power of motivation. Feedback of information (upward communication) is necessary for effective motivation and leadership.
When the job itself is meaningful, interesting and challenging, it can provide maximum motivating power to the employee. Satisfaction for accomplishing a challenging job becomes the self- administered reward.
Controlling is the last phase of the management process. Control is the process of measuring actual results or present performance, comparing those results to plans or some standard of performance, finding out the reason for deviations of actual from desired result and taking corrective action when necessary.
The corrective action may lead to a change in the method of implementation of the plan or change in the plan itself or even a change in the objectives. Usually our desired performance standards are the objectives, policies, programmes, procedures and budgets. A good plan assures effective control.
There are three important elements in the total management cycle or system:
(2) Implementation (action) of the plan and
The entire planning- action-control process in management is repetitive. The control process generates information for modification or even creation of new plans.
Planning is followed by action, then by review and control in order to achieve the desired result.
Complete operating cycle or planning-control cycle includes:
(5) Feedback of Information and
(6) Mechanism of Control.
Good management adopts this cycle and assures not only survival but also promotes growth.
Manager must have a budget and live within the set budget. Budgeting itself involves planning. Budget is not only a plan but also a valuable means of control. Reporting is another means of control. The subordinates must report about their performance to their boss.
Manager is accountable for quality and quantity of results. He has to maintain them. He must meet the deadline. This he does by setting standards of performance, measuring and comparing actual performance with the expected standards.
Controlling means checking that the plans are carried out as per expectations. Manager has to attend, if there are any deviations and these must be corrected or rectified in time. Thus controlling enables the realisation of plans. There is no control without plans and plans without control means no achievements.
Plans are not self-achieving and control seeks to compel events to conform to plans. Automation in plans is not feasible. Things are controlled by controlling what, people do. Control is the final step in the cycle of management process. The starting point is the determination of objectives.
The end point is control to achieve objectives. At each level of management the manager must conserve, control and effectively use the available scarce resources to accomplish the set targets.
Manager must adopt the following steps in controlling:
(a) Identify potential problems,
(b) Select mode of control,
(c) Audit, measure and evaluate performance in terms of planning,
(d) Spot significant deviations,
(e) Ascertain causes of deviations,
(f) Take remedial measures,
(g) Ensure accomplishment of targets.
Each managerial function is an exercise of co-ordination. It is said that co-ordination is the essence of management. It is an integral part of leadership. Coordination is concerned with harmonious and unified action directed toward a common objective. It involves inter-relating various parts of the work or organisation.
It is not a separate activity but a condition that should diffuse itself through all phases of management process. Co-ordination is an orderly arrangement of grotto efforts to provide unity of action. It ensures that all groups and persons work efficiently, economically and in harmony.
Co-ordination can be accomplished automatically if we have sound objectives, policies, procedures and programmes and if we have sound organisation structure.
Co-ordination is essential in a large organisation because we have:
(a) Multiple and complex activities,
(b) Complex and elaborate organisation structure,
(c) Multiple levels of management due to limited span of control, and
(d) Acute division of labour leading to increasing use of specialists.
A manager must co-ordinate the work for which he is accountable by balancing, timing, and integrating the work. Co-ordination means achieving harmony of individual effort with group effort toward the accomplishment of group objectives. Such efforts of co-ordination are required at all levels of management.
Board of Directors, managing directors, heads of divisions and/or departments are the usual agencies of co-ordination to develop an orderly and integrated pattern of group efforts in proper sequence and at proper time. Co-ordination requires effective channels of communication. Person- to-person communication is most effective for co-ordination.
In its broadest sense, communication is the transmission of meaning to others it means transfer of information and understanding from person to person a flow of information from the top to the bottom and from the bottom to the top as well as horizontal or sideways on the same level of organisation. In formal communication we have dissemination of information primarily.
In inter-personal communication between two or more persons we have transmission of information as well as flow of understanding based on two-way traffic of communication. Personal or face-to-face communication is the best form of communication.
Managerial leadership depends upon upward communication to the leader in the form of feedback so that he can understand the feelings, emotions, motives and problems of subordinates and his power will have support and acceptance from below. Communication also leads to sharing of information, ideas and knowledge.
Communication is the cement that makes organisations. It enables a group to think together, and act together. Society’s very existence is dependent upon communication, i.e. passing, of information and understanding from one person to another.
An organisation exists on the basis of good system of communication network. A manager spends more than 80 per cent of his time daily on the communication in order to direct, motivate, lead and co-ordinate management activities. When communication breaks down, organised activity also fails.
According to Barnard the first function of a manager is to develop and maintain a good system of communication. Meaningful organisational decisions are based upon the effective communication of relevant information facts, feelings, ideas, messages, etc. Understanding thoroughly the process of communication can enable a manager to improve a lot the performance of the enterprise.
Communication system serves two-fold purposes:
1. Can integrate and co-ordinate all managerial functions as well as all enterprise operations and areas.
2. It links the organisation with its environment and enables the enterprise to adapt with all variable forces of the environment.
The organisation is aware of customer needs, competition, marketing opportunities, threats and risks only through effective system of communication or information.
Speech on Management # 6. Nature of Management:
Management – Science or Art?
A question is often asked whether management is a science or an art. For answering this question, it is necessary to know what is the difference between science and art.
Science is essentially organised knowledge, derived from experience and experimentation and stated in the form of certain principles capable of general application and also verification. When one talks about the Newton’s third law of motion – “every action has an equal and opposite reaction” – this has been established after careful observation and experimentation. It is a universal truth which can be made to occur any number of times, and can be proved.
Art however, has no universally applicable principles. There may be rules and routines governing forms of dances like Bharatanatyam and Kuchipudi. Yet the way an artist performs these dances, though conforming to the rules, allows for some creative innovation in nuances, that make the performance by each artiste, a distinct unique experience. Art refers to ways of doing that permit individual styles and variations.
1. Management as Science:
There are certain management principles, which form a body of knowledge. These principles have either descended from ancient administrators, or have been established after thorough study and observations.
There are a series of theories, which were being tested against experience. Although these theories are still too general and subjective, by and large, they are able to guide managers by telling them what to do in a particular situation and enabling them to predict the consequences of their actions. Certain tools have also been developed like Critical Path Analysis, Operations Research etc., to help in tasks of management.
Management can be learned in academic institutions in the same manner as the science of Physics, or Chemistry or Medicine or Engineering. Just as a doctor learns the science of medicine by a theoretical study of anatomy and physiology before becoming a physician or a surgeon, so also a manager can learn the principles of management from an academic curriculum. He can then become a specialist in personnel or finance or marketing or materials like a doctor may become a specialist in bones or eyes or heart or children.
However, the science of management is not as exact as the pure sciences of Physics or Chemistry or Mathematics. Because it deals with human beings and social as well as economic phenomena, it cannot be precise in analysis and prediction. Principles of management, in so far as they deal with people, are not exact or deterministic. They are only probabilistic. One cannot say “Do X to get Y result”.
2. Management as an Art:
Managing is an art of dealing with people to accomplish desired results. Of course there are general principles of management, but applying these principles to a given situation is an individual skill.
What is to be done in any given situation, depends upon the individual manager’s insight into that situation, and his understanding of the relevant forces in that situation. That comes from experience. To this extent management is an art and is learned by every practitioner by trial and error. There is no better place for learning the art of managing, other than the actual work place.
In the view of Henry M. Boettinger, who was a corporate officer and management lecturer, “painting or poetry (or any other fine or literary art) requires three components- the artist’s vision, knowledge of craft, and successful communication”. In these respects management is an art, because it requires the same components. And therefore, just as artistic skill can be developed through training, so can managerial skill be developed in ways similar to those used in training artists.
After above discussion we may conclude that management has elements of both – science and art. We are learning about management every day but a great deal remains to be learned about the interaction of people, social structure of organizations, and much more. Until our understanding is more complete, managers will have to rely on their own judgment, intuition and information. And so, although some aspects of management have become scientific, much of management remains an art.
Management- A Profession:
What is a profession? A profession is a vocation, which require a well-grounded education of its members. The traditional and still prevailing image of a professional is a person who has mastered a certain body of knowledge, possesses expert skills, is committed to a life career, and observes high ethical standards.
His attitude is one of responsibility towards clients. He has special privileges of freedom from formal control and his performance could be accurately assessed only by fellow professionals.
Dictionary meaning of profession is – “a calling in which one professes to have acquired specialised knowledge which is used either in instructing, guiding, or advising others.”
Criteria of a Profession – Various criteria have been advanced to help identify a profession. A vocation is a profession if it-
1. Is of vital importance to society;
2. Commands an organized body of knowledge with which even the beginner must be thoroughly familiar before he can practice efficiently;
3. Involves essentially intellectual operations accompanies by large individual responsibility;
4. Is not merely academic and theoretical, but is definitely practical in its aims;
5. Possesses a technique capable of communication through a highly specialized educational discipline;
6. Is self-organized with activities, duties, and responsibilities which completely engage its participants and develop group consciousness; i.e., it has a professional society;
7. Has definite standards of competence that it enforces as a condition of admission to membership;
8. Has definite standards of integrity and conduct that it enforces upon its individual members (a code of ethics);
9. Has a standard of good work (high standards of performance);
10. Is recognized by the public as being a profession.
Applying the above criteria to management, it will be noticed that the profession of management is of vital interest to society as it could lead to optimal management of the limited resources of the society. It has an organized body of knowledge. There are academic institutions in India and abroad providing opportunities to acquire the specialised knowledge and certifying the acquisition of that knowledge.
Most of these institutions have definite standards of competence for admission therein. There are professional management associations to regulate behaviour of their members and to create code of conduct for guiding the activities of the profession. It is widely recognized as a profession and high standards of performance are expected from a professional manager.
Despite having a specialized body of knowledge, it is not compulsory for a beginner to possess this knowledge to manage an organization. In India, even big corporations are managed by owners who may or may not have professional degrees to manage. Again, there is no uniform code of conduct for managers, although issues of ethics have begun to surface and are being taught in colleges.
It can be said that management is a profession and has come to be recognised as such all over the world. India is not an exception. In many organisations graduates from management schools are recruited from campuses and elsewhere and only they can rise to senior positions. However, to become a mature profession, it has to cover a long path.
Speech on Management # 7. Scope of Management:
To derive the best results in creating corporate values and practices, achieve organisational objectives and meet society’s needs, managers make best use of management in different ways. They view management in different perspectives. Management is a multi-disciplinary field of study and draws its concept and principles from various disciplines such as economics, anthropology, sociology, psychology, etc.
Considering these diverse views, management is viewed as:
I. An Activity
II. A Process
III. A Discipline
IV. A Group
V. An Economic Resource
Activity means exercising some kind of action. It refers to actions performed by managers to achieve organisational objectives within the constraints of internal and external environmental variables.
Management as an activity is “the art of getting things done through people”. — Mary Parker Follett.
Management as an activity refers to what managers actually do rather than what they should do to achieve organisational goals. What managers actually do defines the roles of managers.
Management as an activity, thus, defines the role of managers. Empirical evidence has proved that managers perform ten roles which can be broadly classified into three.
These are described below:
1. Interpersonal Roles or Activities:
Management is the art of getting things done through others. In dealing with others, managers contact their superiors, peers, subordinates and outside parties. They greet people; attend subordinates’ functions; receive official visitors; hire, train and motivate employees; solve their psychological and work-related problems and communicate with people within (superiors, subordinates and peers) and outside (consumers, suppliers, government etc.) the organisation. Though these activities are routine in nature, they help managers in running the organisation smoothly.
2. Informational Roles or Activities:
In dealing with people within and outside the organisation, managers communicate with stakeholders like consumers, creditors, employees, suppliers, Government etc. They need information to make right decisions and communicate them to members. In this context, managers perform activities like collect information from various journals and conduct tours; transmit information to members through meetings, notices and circulars and interact with people outside the organisation to communicate them company’s plans and policies.
3. Decisional Roles or Activities:
The information collected by managers in informational roles is not only communicated to others but also used by them as inputs for making decisions. In this regard, managers use market information to launch a new product, solve organisational disturbances like strikes, lock outs etc., allocate scarce resources over business activities in the order of priority and negotiate amongst parties within (employees and employers) and outside (organisation and suppliers or union representatives) the organisation.
This is the practitioner’s view of management. Process means a course of action or proceeding. It involves a series of steps to carry out an activity. “Management is the process of planning, organising, leading, and controlling the efforts of organisation members and of using all other organisational resources to achieve stated organisational goals.” The process defines management as a set of functions performed by managers regardless of their level, aptitude and skills.
Activities performed by managers while they regard management as a process are briefly explained below:
1. Planning – In planning, managers think in advance, the goals of the organisation and the ways to achieve these goals.
2. Organising – In organising, managers coordinate financial and non-financial resources of the organisation to achieve its goals.
3. Leading – It refers to activities performed by managers to direct and influence the behaviour of subordinates. This is done through motivation, leadership and communication.
4. Controlling – It refers to measuring actual organisational performance and ensuring that it conforms to planned performance. It attempts to find deviations and take measures to correct them.
Since management continuously deals with people and integrates the human resource with non-human resources (men, money, material, machines), it is generally defined as:
(a) A social process,
(b) A continuous process
(c) An integrating process
(a) A Social Process:
Management deals with people. It makes best use of human resource to convert its inactive resources into productive outputs (goods and services). It understands human needs and satisfies them through various motivational factors, both financial (money) and non-financial (power, prestige, recognition etc.).
(b) As a Continuous Process:
Managers continuously perform the basic functions of management. Organisations strive to achieve their goals and, therefore, continuously need management to integrate their resources.
(c) As an Integrating Process:
Management coordinates the activities of departments (production, personnel, marketing and finance) and resources (human and non- human) to maximise output at minimum cost.
Management, as a discipline, is a distinct field of study with well-defined concepts and principles. These principles help in practising management and understanding management as Art or Science.
Since importance of management is increasing, there is need for specialised institutions to impart the knowledge of management to people. Management is, thus, taken as a separate field of study. In this context, today, all over the world, many institutions offer specialised courses in management of business administration (MBA).
Though management practices ideas from other fields of study as psychology, sociology etc., it is a complete discipline in itself.
Management, which was introduced as a distinct field of study in the year 1886, has grown to an enormous size today.
Some of the important characteristics of management as a discipline are as follows:
1. The increasing importance of management is evidenced by the fact that number of students enrolling in management study is on a constant increase. Around 20-30% of students today join management institutions.
2. The number of articles, journals, text-books and reference books on management is on a constant increase.
3. Management is formally taught in Universities as “Management of Business Administration (MBA)”. In fact, many institutes are named as Institutes of Management.
4. Though management still remains to be called a profession in the true sense of the term, as medicine and engineering, it is fast moving towards professionalisation.
Management is a group effort. An individual cannot manage the organisation alone. Managers at all levels — top, middle and low, coordinate their efforts to establish organisational goals and frame policies to achieve them.
The performance of organisation depends upon collective performance of managers. Top managers are responsible for overall management of the enterprise. They frame company’s plans and policies and integrate its working with the external environment. Top managers are titled as chief executives, presidents or vice-presidents of a company.
Middle level managers mediate between top level and lower level managers. They integrate plans and policies with the capacities of subordinates, guide and motivate the subordinates to excel in organisational performance.
Lower level managers are also known as first-line managers. They directly instruct the employees to work according to plans and goals.
Management as a group is defined as performing organisational tasks with and through others.
“Management is defined as the process by which a co-operative group directs actions towards common goals”. —J.L. Massie
The group effort achieves efficiency in resource utilisation and effectiveness in achieving goals. Efficiency means producing the same units of output with lesser number of inputs and effectiveness means achieving the organisational goals successfully. It amounts to doing the right things.
This is also the sociologist’s view of management. As the organisation becomes more and more complex, there is need for a class of brains to manage these complexities. This can be done by a group of people who have specialised knowledge and education in the field of management. Management is, thus, a separate class of people with specialised knowledge that deals with complexities of an organisation.
This is the economist’s view of management. Development of organisation depends upon the availability and effective utilisation of resources like men, material, capital, entrepreneurial ability etc. Co-ordination of these resources is reflected in the end results of the organisation. As the organisation moves from lower to higher levels of management, there is need for research, development, innovation and invention. This can be done if the resources (human and non-human) are effectively managed by the executives.
The management is, thus, viewed as a separate resource which largely determines the productivity of the organisation. It is considered as one of the factors of production together with land, labour and capital. As Peter F. Drucker puts, “The greatest opportunity for increasing productivity is surely to be found in knowledge, work itself, and especially in management.”
Productivity implies effectiveness and efficiency in individual and organisational performance. Effectiveness is the achievement of objectives. Efficiency is the achievement of the ends with the least amount of resources.
The progressing industries, thus, view management as a separate factor of production which is increasingly required in industries which experience innovations and growth.
On the basis of above description of ‘management’ it can be asserted that “management is concerned with ideas, things and people”.
Management is concerned with Ideas:
Ideas or thoughts are the route to organisational survival and success. Once an organisation starts operations according to planned courses of action, it constantly changes its plans and policies to exploit environmental opportunities and adapt to environmental changes. Managers think of new ideas that lead to development and innovations, new markets and customers, new technologies and product lines in today’s dynamic and changing environment.
It is necessary that managers are aware of organisation’s internal and external environment and generate new ideas to adapt to the changing environment. Generation of ideas also helps in becoming market leaders. As market leaders, they will capture bigger share of the market and motivate other organisations also to change their way of working.
Management is Concerned with Things:
Ideas would remain ideas if they are not converted into outputs. In order to convert ideas into reality, managers use resources like men, material, money, technology etc. Management of resources in a manner that inputs are optimally (with minimum wastage) converted into output refers to management of things. Management of things means effective utilisation of organisational resources to produce outputs at minimum cost.
Management of People:
All ideas and things would remain inactive if people who perform operations do not convert them into outputs. Workers are riot mere inputs of an organisation. They are active participants of the organisation who attain its goals. Unless workers are satisfied with their jobs, they do not contribute effectively to organisational output. It becomes the duty of managers, therefore, to ensure that workers are satisfied both as individuals and as members of groups (formal and informal). Satisfied workers merge individual and group goals with formal goals and maximise organisational output.
Managers should devise effective methods of recruitment, selection, training and development of employees, offer them the jobs they are best suited for and provide them suitable motivators (financial and non-financial) to keep them satisfied. This managerial effort is known as management of people.
Speech on Management # 8. Administration and Management:
There is a lot of controversies in practice in the usage of these two terms ‘Administration’ and ‘Management’. Experts in the field of management have given different views on this concept.
All these may be broadly classified in to three categories and discussed below:
1. Administration is above management
2. Administration is part of management
3. Administration and management are one and the same
1. Administration is above Management:
Management pandits like Oliver Sheldon, William Spiegel, Millard, Lansbury, and Ordway Teed are of the view that administration is superior to management and is concerned with the higher level activity. As such administration is concerned with decision making and policy formulation, while management is concerned only with the execution of what has been laid down by the administration.
2. Administration is part of Management:
E.F.L. Brech is of the view that management is a comprehensive term and that administration is a part of it. According to him, “Management is a generic term for the total process of executive control involving responsibility for effective planning and guidance of the operations of an enterprise. Administration is that part of management which is concerned with the installation and carrying out of the procedures by which the programme is laid down and communicated and the progress of activities is regulated and checked against plans.”
3. Administration and Management are the same:
Practically speaking, there is no difference between the two terms, ‘management’ and ‘administration’. The term ‘Management’ is used for higher level functions like planning, organizing, directing and controlling in a business organization. On the other hand, administration is used for the same functions in government organizations.
Henry Fayol, William Newman, George Terry, Louis Allen are of this view. The distinction between two terms is of academic interest only. But in real life, there is no such distinction.
To overcome these controversies, management may be classified into:
a. Administrative Management and
b. Operative Management
Administrative management is concerned with the laying down policies and operative management is concerned with the implementation of policies. But at every level of management an individual performs both the functions. At higher level more time is spent on administrative management and at lower level more time is spent on operative management.
Speech on Management # 9. Functional Areas of Management:
The functional or operational areas of management can be broadly classified into:
1. Production Management
2. Marketing Management
3. Financial Management
4. Personnel Management
We shall now briefly explain each of these functional areas of management separately:
1. Production Management:
It is concerned with the planning, organizing, directing and controlling the production function so as to provide right product at right time in right quantity and at the right place.
It involves the following:
(a) Product development
(b) Location of plant
(c) Purchase and storage of materials
(d) Repairs and maintenance
(e) Control of inventory and quality
(f) Research and development
2. Marketing Management:
It is concerned with the understanding and identifying the needs and wants of consumers and satisfying these wants by supplying the requisite goods and services.
It involves the following:
(a) Marketing research
(b) Designing of suitable products to satisfy the needs of consumers
(c) Appropriate Pricing strategies
(d) Selection of channel of distribution
(e) Promotional activities
3. Financial Management:
It is concerned with the procurement and effective utilization of funds. It provides right type of funds to an organization at right time and at reasonable cost.
It involves the following:
(a) Determination of requirements of funds
(b) Selection of sources of funds
(c) Ensuring proper procurement of funds
(d) Effective utilization of funds
(e) Proper allocation of earnings
4. Personnel Management:
Right man for the right job is the function of personnel management. It is concerned with the managerial (planning, organizing, directing and controlling) and operational functions (procurement, development, maintenance, compensation and utilization) with a view to accomplish organizational goals effectively and efficiently and thereby meeting individual and group goals.
It involves the following:
(a) Manpower planning
(b) Recruitment and selection
(d) Training and education
(e) Compensation, wage and salary administration
(f) Motivation and incentives
(g) Employee welfare and benefits
(h) Human relations
(i) Personnel research and personnel audit
Speech on Management # 10. Levels of Management:
In many small organizations, the owner is the only member of the management team. The three levels of management that are commonly found in any organization are lower or front-line, middle and top management.
i. Front-Line or Supervisory Management:
It is the lowest level in the hierarchy of management. Usually, it consists of entry level positions into management profession. Managers at this level direct the operating employees (workers). Their job involves supervising the activities of operatives. Front-Line managers are foreman, supervisor, superintendent, and inspector and so on.
In the production department they are called foreman, in other departments, they are called management trainees or junior executives. Similarly, in a government office, the term superintendent or section officer is normally used.
Managers who work at levels between the lower and top levels constitute the middle management. Departmental heads, Regional managers, Zonal managers and so on fall in this category. They report to top managers. Their principal responsibilities are to direct the activities of lower level managers who implement the organization’s policies.
iii. Top Level Management:
Top management constitutes the highest level in the management hierarchy. This is the policy making body of an organization. This level consists of a group of executives. Board of Directors, Chairman, Managing Director and the top functional heads and divisional managers are at this level. They are responsible for the overall management of the organization and decide the enterprise objectives, policies and strategies to be pursued.
Speech on Management # 11. Social Responsibility of Management:
Management is responsible to all categories of people. The management is the member of the society, it is the citizen of the nation. It represents its masters i.e., the shareholders. It serves as a servant to the consumer with an intention to offer him maximum satisfaction. It guides its workers. It leads them.
It encourages a team spirit among them. In a nutshell the management survives because others allow it to survive. The management may crack at any time, the people, on whom it depends for its survival, withdraw their support. It is the people in their various capacities who provide strength to the management which grows with their help and falls when they pull their hands down.
The management is, thus, responsible to the people in various capacities – (i) as a member of the society, (ii) as a citizen of the nation, (iii) as a representative of the shareholders, (iv) as a servant to the consumer, (v) as an educator to the public at large, and (vi) as a guide and leader to the workers in the enterprise.
Maximisation of the service to the society is the main motto of the social responsibility of management. Honesty, hard work, foresight, leadership, courtesy and service are the edifice on which the whole structure of the business is built. It is service to all related – directly or indirectly with the enterprise – which pays rich dividends and an efficient management should aim at the maximisation of the service to the society.
“Management” according to H.A. Simon, “is not just a creature of the economy, it is a creator as well, and only to the extent to which it masters the economic circumstances and alters them by conscious and direct action it then really manages.” It is here when the management starts conscious managing and altering the economic circumstances the society creeps into its (manager’s) minds and the management starts thinking in terms of service to the community as a whole.
In the days of limited production economy was self-satisfying. No one was dependent for anything on anyone. No exchange was involved. But with the advent of the concept of large-scale production the theory of maximizing of profit and minimization of cost of production crept in.
Today the industrialists engage in productive operation only with the aim of maximising their margin of profit. In the capitalist society profit comes first and it comes last as well. Nothing is there in between. Modern industrialisation owes its very existence to the capitalistic approach to all the problems of production and distribution.
However, modern management thinkers believe that management is answerable to the society as well. Unsocial behaviour of capitalism has been pointedly marked by the thinkers. They point out that the society and its will must be respected for the very survival of industry and trade.
Unless due attention is paid to the interest and expectations of the society, which hither to has undoubtedly been neglected, nothing lasting and substantial may be achieved. Management derives its strength from the society, therefore it must be made answerable to the society.
Management ensures better utilisation of all factors of production. It aims to administer economy of every step of production for fuller satisfaction of the society and higher rate of return with maximum social gain.
Management handles the life time saving of the shareholders. His investment must remain safe and secured. The consumer must get the goods according to his tastes, temperaments and requirements. His interest must be zealously guarded by the management, management must act as a servant to the consumer.
The management owes a duty to its worker. It is required to see that he is satisfied with the job he is entrusted and also his organisation which he is expected to serve with utmost sincerity and honesty.
Management is responsible to all it serves. Management is not only a creature but it is also a creator of the economy. Management’s duty is to serve the community as a whole. In the words of A.N. Whitehead – “a great society is a society in which its men of business think greatly of their function” in terms of rending service to the society and the nation.
Speech on Management # 12. Professionalisation of Management:
The society of 1900s had few, small-sized institutions managed by the family heads. Government was the only institution that looked after the needs of the society. There were almost no or very few business institutions. Small workshops, small educational and health centres and professions (medicine, law or engineering) were practiced at the individual level.
Institutions were owned by individuals who fulfilled their financial and non-financial needs. These individuals, as heads and owners of the institutions were also the managers who worked for economic and social development of the institutions. Development, at that time, was considered a function of savings and capital investment.
Management was primarily family-managed as (i) both ownership and control of business were in the hands of the family heads, and (a) the focus was a profit than social values. As control was in the hands of family heads with delegated positions to other members of the family, they managed the business according to value system of the family, and since different families had different value systems, the organisations headed by different families were managed differently.
Though professional services like those of accountants, engineers and lawyers were hired, these professional were paid for their services. They did not have the decision-making authority as that was centralised with the head of the family who managed the business on the basis of his knowledge and judgment rather than professionalism. Even in the public sector, management in the traditional times was more or less non-professional.
Bureaucracy prevailed and the top-level managers represented the voice of the bureaucrats. The professional competence was, thus, lacking and it largely contributed to low performance of the organisations at the micro level and economic development at the macro level. Though resources were not scarce, they were not optimally utilised for lack of professional competence.
Lack of professional competence was attributed to the following factors:
1. Competition was not intense and organisations were not very large in size. Profit was the major yardstick used to measure organisational success which was often achieved even without professionalisation of management. This developed a belief and an attitude that family heads and bureaucrats could achieve organisational success even without professionalisation of management.
2. Being small in size, ownership and management remained in the same hands. Even in large organisations, though the Board was legally constituted, control was in the hands of few influential people who were the owner entrepreneurs. While the flavour of professionalisation was missing, the centralised approach to management proved successful. This did not encourage professionalisation of management.
3. Public sector organisations were managed by civil servants appointed by the Government. These civil servants were better technocrats than managers. Though, however, they managed the business enterprises, they did not adopt professional managerial practices.
Knowledge of professional management was, thus, almost unknown to most of the business enterprises until after the outbreak of World War I. After the First World War, management came to be recognised as a distinct field of study. Herbert Hoover (1874- 1964) and Thomas J. Masaryk (1850-1937) were amongst the pioneers who felt the need for applying the principles of management to restore the economies which were destroyed during the war.
With emergence of large scale business and non-business organisations (schools, hospitals, research organisations etc.) during mid-1900s, our society became a society of institutions. It became a pluralist society in the sense that people relied on a number of institutions to satisfy their varied needs, like economic goods, health care, social and security needs, education, research etc.
These institutions became so large in size that the owners could neither meet their financial requirements nor manage them effectively. There was, thus, diversion of ownership from management.
Managers were appointed who helped these enterprises by:
1. Increasing their productivity.
2. Analysing the impact of organisational activities on social values, culture and beliefs.
3. Creating new business opportunities rather than optimising the existing ones. This created manager-entrepreneurs.
4. Increasing the level of performance in the field of economic tasks, health care, education or protection of the environment.
5. Producing economic and social development along with savings and capital investment.
The institutions of today must be managed effectively to remain competitive in the era of globalisation.
Management today is viewed as a—
1. Force to bring economic, organizational and social reforms.
2. Work with its own tools, skills and techniques.
3. Discipline with an organised body of knowledge which can be applied in almost every situation and every organisation — business or non-business.
4. Culture with a set of traditional values, customs and beliefs. This helps in moulding cultural aspects of the society.
5. Practice where management is a discipline which is not just a codified set of knowledge. Management is practiced, performed and is result-oriented.
6. Multi-institutional force, where the need for management is felt in all institutions, business as well as non-business. Management helps the institution perform the functions for which it exists.
7. Multinational discipline. The world today is a single market and management cannot be confined within the national boundaries of the country. Management is becoming an institution of a global economy.
In light of the facts discussed above, where business and non-business houses moved from owner-management to professional-management (management of enterprises by professionally qualified managers), and the remarks made by Peter F. Druckerare noteworthy – “Management is independent of ownership, rank or power. It is an objective function and ought to be grounded in the responsibility for performance. Professional-management is a function, a discipline, a task to be done; and managers are the professionals who practice this discipline, carry out the functions, and discharge these tasks. It is no longer relevant whether the manager is also an owner; if he is, it is incidental to his main function, which is to be a manager.”
Management is becoming a professionally managed discipline because of the following reasons:
1. As business firms grew in size, it became difficult to manage them in the traditional way. The management policies were re-examined and sophisticated management techniques were applied which required professionalisation of management.
2. Initially the public sector was managed by non-professional managers. With increase in their complexity and growing internationalization, the market did not remain protective and free from competition. Ownership and management got separated and professionally qualified managers were appointed to manage these enterprises.
3. Availability of trained, skilled and educated managers has also led to professionalisation of management. Management education is imparted on full-time and part- time basis. Short-term management development courses are offered by many institutes. Many business organisations in the private and public sector have management development centres to train their managers. Even small companies today prefer their managers to attend the short-term management development programmes. The entire viewpoint is changing from owner-managers to professional managers.
4. Business was getting internationalised and multinationals operating their subsidiaries in India were highly professionalised and also very successful. Though it took time for Indian entrepreneurs to adopt their professional management practices, they gradually moved towards the same and realised the need for professionalisation of Indian management for successful operation of their large business houses.
There are two sets of arguments for professionalising management.
These are described below:
Professional management offers the following benefits:
1. In the competitive business environment both at the national and international levels, only professionally qualified managers can face competition. In order to survive in the global dynamic environment, it is necessary that managers are professionally qualified and trained. Non-professional or family managers may not be able to carry their companies successfully for too long.
2. Professional managers not only maximise profits but also corporate image amongst stakeholders (creditors, government suppliers, competitions etc.) in the society, national and international markets.
3. Professional managers follow a specific code of ethics. Likelihood of malpractices like speculation, misrepresentation of information, promotion of vested interests at the cost of stakeholders’ interests will be reduced.
4. Professional managers improve the working of business enterprises and make them more productive. Business firms can be better managed by professional managers than non-professional managers.
The following arguments are offered against professionalisation of management:
1. It is not rare to find practising managers who are successful despite not being professionally qualified. Professionalisation of management will take away the chances from such individuals to manage the business enterprises successfully, unless they acquire a professional degree. Professionalisation may not, thus, prove to be effective in case of enterprises which are otherwise being managed so well. Acquiring a formal degree, in such cases, may, in fact be burdensome for managers.
2. Managers deal with human beings whose behaviour cannot be accurately predicted. Most highly qualified managers may not be able to perform better than nonprofessional managers. Managers should be skilled in behavioural and social sciences rather than acquiring professional expertise. More than a profession, thus, management is the art of profession. Management is the art of practising managerial principles and theories.
Speech on Management # 13. Importance of Management:
The survival and growth of an organization depends largely on the competence and character of its management. Management is the dynamic life giving element in every organization.
Sound management provides the following benefits:
1. Achievements of Group Goals:
Management makes group efforts more effective. The group as a whole cannot realize its objectives unless and until there is mutual co-operation and co – ordination among the members of the group. Management creates team work and team spirit in an organisation by developing a sound organisation structure. It brings the human and material resources together and motivates the people for the achievement of the goals of an organisation.
2. Optimum Utilization of Resources:
Management always concentrates on achieving the objectives of the enterprise. The available resources of production are put to use in such a way that all sort of wastage and inefficiencies are reduced to a minimum. Workers are motivated to put in their best performance by the inspiring leadership. Managers create and maintain an environment conducive to highest efficiency and performance. Through the optimum use of available resources, management accelerates the process of economic growth.
3. Minimization of Cost (to Combat Rising Competition):
In the modern era of intense competition, every business enterprise must minimize the cost of production and distribution. Only those concerns can survive in the market which can produce goods of better quality at the minimum cost. A study of the principles of management helps in knowing certain techniques used for reducing costs. These techniques are production control, budgetary control, cost control, financial control, material control, etc.
4. Change and Growth:
A business enterprise operates in a constantly changing environment. Changes in business environment create uncertainties and risk and also provide opportunities for growth. An enterprise has to change and adjust itself in the ever-changing environment. Sound management moulds not only the enterprise but also alters the environment itself to ensure the success of the business. Many of the giant business corporations of today had a humble beginning and grew continuously through effective management.
5. Efficient and Smooth Running of Business:
Management ensures efficient and smooth running of business, through better planning, sound organisation and effective control of the various factors of production.
6. Higher Profits:
Profits can be enhanced in any enterprise either by increasing the sales revenue or reducing costs. To increase the sales revenue is beyond the control of an enterprise. Management by decreasing costs increases its profits and thus provides opportunities for future growth and development.
7. Provide Innovation:
Management gives new ideas, imagination and visions to an enterprise.
8. Social Benefits:
Management is useful not only to the business firms but to the society as a whole. It improves the standard of living of the people through higher production and more efficient use of scarce resources. By establishing cordial relations between different social groups, management promotes peace and prosperity in society.
9. Useful for Developing Countries:
Management has to play a more important role in developing countries like India. In such countries, the productivity is low and / the resources-are limited. It has been rightly observed, “There are no under- developed countries. There are only under-managed ones.”
10. Sound Organisation Structure:
Management establishes proper organisation structure and avoids conflict between the superiors and sub-ordinates. This helps in the development of spirit of cooperation and mutual understanding and a congenial environment is provided in the organisation.
Thus, good management achieves both economic and social objectives by making best use of human and material resources and by providing satisfaction to people.
Speech on Management # 14. Limitations of Management:
Management is a social science the subject-matter of which is a human being. Man is social animal but at the same time he is full of sentiments and emotions. He has a mind which he applies. He believes in change, if his assessment is that change is what the situation demands. These are a few of the characteristics of a human being which renders one helpless in predicting his behaviour.
It is because of this helplessness which puts every regulation of naught, if the human being is unwilling to co-operate and submit to the direction and command. This human aspect of the management science has put certain limitations and the management that is why it has been assailed from different quarters. The validity of the principles of management has been doubted by many thinkers of both present and past on the following grounds.
(1) Firstly – Management is a Social Science:
At the very outset management is attacked because of the simple fact that it is social science. It being a social science is deprived of the exactness and accuracy like a physical science say chemistry or physics.
Discretion is the core of management which varies from one particular situation to another. Generalisations and principles in relation to human behaviour cannot hold good in all the circumstances since management is more near to behavioural science than any other social sciences are.
(2) Secondly – Generalisations and Principles Differ:
Management generalisations and principles cannot hold good in all the cultures and at all the stages of economic growth. Different countries have varying degree of economic development. Different countries believe and practice in cultures and customs according to their own historical, political and social necessities. Their own conventions and traditions guide their social thinking and individual habits and temperaments. In such circumstances, value of judgment and motivation practices differ from one culture to another.
(3) Thirdly – Business Environment Changes:
The business environment is changing. With every such a change complexities are multiplying. These have brought changes in theory, practice, and philosophy of management. Quantitative techniques have added new horizon to the management thinking. All these have brought management close to behavioural sciences resulting into the study of human relations with each aspect of management.
(4) Fourthly – Social Needs Undergo a Change:
The fourth limitation of the science of management lies in the social needs which undergo a sea-change and as a result the society becomes more extracting and demanding. The society today is watchful and is fully conscious of its rightful due. The management, is therefore, now required to shape its principles and policies according to present dictates of the society.
(5) Principles are Not Final:
Because of the limitations of the science of management the set and time – tested principles and generalisations do not remain static. They yield to new set of principles of generalisations with a constant threat that the new is also not the final. It is a changing science one, the principles of which cannot be taken as final one.
Speech on Management # 15. Management in the Future:
Management in future is likely to be even more dynamic and challenging to meet the complicated and frequent changes in the environment variables in the next couple of decades. It will be characterized by much greater uses of operation research, systems analysis and the computer sciences. These techniques will help the management in better organizing, communicating, leading, motivating and controlling. It will lead to effective management.
Big growth in multinational operations, more flexible and elastic organization structure, fast-changing technological, economic and social environment and the increasing complications in decision making, all these will largely influence the future managerial jobs and managerial world. Management education and management development will acquire vital importance in a dynamic environment.
The manager of the future will have to bring management of change. The managerial environment in the future will be changing so fast that outstanding solution to the problems in the past may prove to be utter failures in the present or in the near future. The future is to be regarded as an opportunity, not a problem.
The change is the necessity of life. It means growth. It will certainly pose varied and complicated problems. Management in future through adequate planning and control can meet the challenges of the change involving opportunities as well as uncertainties and risks. Effective management of change can establish cordial relationship with its internal as well as external environment.
Present and future environment will be dominated by fast technological changes, material and power shortages, problems of pollution, problems of consumerism, worldwide inflation and new innovations in organization/management. Managers will be struggling for the solutions of these problems and will be preparing themselves to meet these challenges and new tasks.
Basic Trends Influencing Management in Future:
There are six fundamental trends affecting management in the future in the next couple of decades:
1. Shift from Industrial to Service Economy:
Most countries were agrarian for many centuries till the advent of industrial revolution. By 1930 many of the industrialized countries like U.K., U.S.A., Germany and Japan had already moved from industrial economy to a service economy. In 1950 service workers were about 50% of the total labour force. By 1980 about 70% of labour force is in the service area and at present 80% (eight workers out of every ten) have moved into service sector in all these industrial countries.
In India and many other developing countries, the shift from agrarian economy to industrial economy and then to service economy is likely to take place probably within one or two generations.
In a particular service economy one may come across the following developments:
(a) Acute shortage of able managerial talents specifically at the lower levels as the service economy grows.
(b) Decreasing rate of productivity growth in a service economy.
(c) Rising number of white collar workers who are more technically and professionally qualified e.g., Accounting, computer Programming. O. R. Analysis, Statisticians, Economists etc.
(d) More decentralized operations as service work deals with ideas and information, i.e., intellectual labour.
(e) Increasing sub-urban and rural living, bringing change in the character of bigger cities.
2. Emergence of Knowledge Society:
A knowledge society is one in which majority of workers perform work based on knowledge rather than on merely physical manual work. Knowledge tasks the place of chief human factor in production. Ever-expanding educational facilities alone can give knowledge to workers. Industry will be brought very close to higher educational institutions. Intellectual labour will naturally demand internal motivation from management so that their high-level needs can be satisfied.
3. Emergence of Socially-Concerned Humanistic Society:
In service or knowledge society one has reasonable satisfaction of all economic wants. They seek for good working conditions and better standards of living. The need-hierarchy of Maslow properly explains the increasing demand of people for a better quality of life. Employees in future will ask for greater autonomy and participation at work. Consumers will demand better quality of goods at reasonable prices. Citizens will need freedom from air, water and food pollution.
4. Long-Range Outlook:
Service economy means slower rate productivity growth or even no growth. Management in future must concentrate on long-term profit rather than on short-term gains. It means more stress on strategic planning.
5. Innovations and Research & Development (R&D):
Management will have to recognize importance of innovations and investment in research and development. This investment in R and D should be ever increasing to reap the fruits of better technology.
6. Motivation of Work:
Management will have to create congenial environment to provide internal motivation at work so as to seek the willing co-operation of employees.
Management has already become and will continue to be the central activity of modern society. We finish with a modification of Drucker’s famous statement and assert that ‘management will be what the future world will be all about’.