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Planning is a continuous process and the primary function of management. Planning in management is all about outlining a future course of action in order to achieve organizational objectives. Today we have shared short notes on what is planning, objectives, and the importance of planning in management. Planning definition and its feature in management.

Effective planning provides answers to important questions like; What to do? How to do it? Who is going to do it? and When to do it?

► What is Planning in Management?

Planning is the first and foremost activity of the managerial function.

It is a process of defining a future course of action or thinking about the activities required to achieve the desired goal.

Planning involves the creation and continuous improvement of a plan. It has psychological aspects that require conceptual skills.

► Definition of Planning

Planning involves defining the organizational goals, establishing an overall strategy, and developing a comprehensive set of plans to integrate and coordinate work in an org.

Meaning of Planning

Planning is the basic function by which we use to select our goals and objectives and make plans to achieve them. A large amount of data and information has to be gathered and processed before a plan is formulated.

To understand the concept of planning, we have to know the meaning of two words;

Planning and Plan.

These two words are similar but their meanings are different. There is a fundamental difference between planning and plan.

Planning is an activity. It can be considered as consisting of a process, there are various sub-activities in the planning process. On the other hand,

A Plan is a commitment to a particular course of action that is necessary to achieve specific results.

Must Read ➜ Roles of Manager

► Feature of Planning in Management

On the basis of the definition of planning. Its following features can be identified:

• planning is goal-oriented
• planning is a primary function
• planning is all-pervasive.
• planning is a brain exercise
• It is a continuous process.
• It involves decision-making.
• planning is forward-looking
• planning is dynamic
• planning is an integrated process
• It includes efficiency and effectiveness dimension

Planning is primarily concerned with looking into the future of the organization. It requires forecasting of future situations in which the organization has to function.

Planning is the function performed by the managers at all levels.

Planning involves the selection of the best suitable course of action known as a plan. It bridges the gap between the current position and desired position of the firm.

Planning is a flexible and dynamic process because it is based on future conditions.

► Nature of Planning

The basic nature of planning can be defined in terms of it being a rational approach, an open system approach, and its pervasiveness.

✔ A Rational Approach

Planning is a rational approach for defining where one stands, where one wants to go in the future, and how to reach there.

In an organizational context, planning as a rational approach tries to fill the gap between actual status (current performance) and desired status (desired performance).

✔ Open System Approach

Planning adopts an open system approach. It takes inputs from the environment, processes these, and exports outputs to the environment.

The open system approach of planning indicates that the identification of gaps is influenced by a variety of environmental factors like economic, political, legal, technological, socio-cultural, and competitive.

These factors are dynamic and change with time. Therefore, while adopting an open system approach in planning, managers have to take into account the dynamic features of the business environment.

✔ Pervasiveness of Planning

Planning is pervasive and extends throughout the organization. Every manager has a planning function to perform in his department.

This stems from the fact that he is a manager and that planning is a fundamental function of management.

The pervasiveness of planning is commonly overlooked and planning is generally considered as being the function of top-level managers of the organization.

Must Read :Human Resource Planning (HRP)

While it is true that they devote more of their time to planning and working with the more vital issues than the managers of the middle and lower levels do. But the fact remains that every manager has to perform planning within his particular area of activity.

► Importance of Planning in Management

Planning is present in all types of sectors, households, economies, etc. All organizations require planning, whether it is the government, a private business, or a small business firm.

Planning is getting ready to do something in the future. Many organization often fails not because of lack of resources but because of poor planning and wrong strategies.

We need to plan because the future is highly uncertain and it is impossible to predict the future with 100% accuracy, as the conditions can change at any time.

Hence, planning is the basic requirement of any business firm for survival, growth, and success.

• Primacy function of Management
• To Offset Uncertainty and Change.
• To Focus Attention on Objective
• To Help in Coordination
• To Help in Control
• To Increase Organizational Effectiveness

The function of planning helps managers to improve future performance by establishing objectives. Managers select a course of action by formulating plans for the benefit of the organization.

Must Read :Steps in Planning Process

Planning Objectives and Benefits

The main benefits and objectives of planning are as follows:

• Planning increases the efficiency of an organization.
• It reduces the risk factors in modern business activities.
• It facilitates proper coordination within an organization.
• It aids in organizing all available resources.
• It provides the right direction to the organization.
• It identifies future opportunities and threats.
• It is important to maintain good control.
• It helps to fulfill the objective of the organization.
• It motivates the personnel of an organization.
• It encourages managers’ creativity and innovation.
• It also helps in decision-making.

14 Principles of Management was given by Henri Fayol. He is called the Father of 14 principles of management and Administrative Management. He believed that management was an activity common to all businesses, governments, and even the home. This belief led him to develop 14 principles of management.

Today in this article, we have shared Henry Fayol’s 14 Principles of management and its meaning explained with suitable examples.

Topics Covered in this Article

• Henry Fayol’s Contribution in Management
• Managerial Activities
• Functions of Management
• 14 Principles of Management (In Nutshell)
• 14 Principles of Management (in Summery)
• 14 Principles of Management (Explained in detail)

So let’s start with Henry Fayol’s contribution to Management.

► Henry Fayol’s Contribution in Management

Henri Fayol is known as the father of Administrative Management. He was born in France in 1841. He was a French industrialist who owns a large coal mining company in France.

Fayol’s greatest contribution is considered to be his theory of management principles and elements. He gave 14 principles of management in his Administrative theory.

His 14 Principles of Management are concerned with management efficiency and these 14 Principles Of Management are universally applicable. He got a degree in mining engineering in 1860 and then he started working as an engineer in a coal mining company. He was promoted as managing director in the company at the time of insolvency in 1888.

He has made the distinction between management principles and management elements. Management principles are a fundamental truth and show a cause-effect relationship. The management element refers to the function performed by a manager.

Managerial Activities (14 principles of Management)

Management principles are statements of fundamental truth. These principles act as guidelines for the decisions and actions of managers. They are derived through observation and analysis of events that managers have to face in real-life practice.

Fayol made his mark as an industrialist with the French coal and mining company where he spent his entire working life.

According to Fayol, an industrial organization could be divided into six categories based on their activities as shown below:

• ✔️ TECHNICAL – (Production & Manufacturing)
• ✔️ COMMERCIAL – (Buying, Selling & Exchange)
• ✔️ FINANCIAL – (Acquiring & using capital)
• ✔️ SECURITY – (Protection of Property & Person)
• ✔️ ACCOUNTING – (Stock-taking, Balance sheet, cost & statistics)
• ✔️ MANAGERIAL – (Planning, Organizing, Command, Control)

Functions of Management given by Henry Fayol

Henry Fayol is famous as the father of the Principle of management “Studies and Thought”. He defined/identified major functions of management.

Functions of management are as follows;

• Planning,
• Organizing,
• Staffing,
• Directing or Leading and
• Controlling.

Sometimes managerial functions are also known as POLC – Planning, Organizing, Leading, and Controlling.

Must Read :What is Management?

Henri Fayol’s 14 principles of management and his administrative theory are often called Fayolism. He developed general principles of business management.

► 14 Principles of Management by Henri Fayol

There are 14 Principles of Management described by Henri Fayol.

1. Division of work
2. Authority and Responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of personal/individual interests to the general interest.
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure of personnel
13. Initiative
14. Esprit de corps

Must Read :Steps in Planning Process

► 14 Principles of Management (in Summery)

Let’s discuss briefly all these 14 principles of management.

1. Principle of Division of work

• Specialization of work and department increases output by making employees more efficient for the organization.
• This division of work can be applied at all managerial levels of the organization.

2. Principle of Authority and Responsibility

• Managers must be able to give orders to their subordinates, and authority gives them this right.
• Henri Fayol finds authority as a continuation of official and personal or individual factors.
• Official Authority is derived from the position of a managerial role and personal authority is derived from personal qualities such as intelligence, knowledge, and experience.
• Responsibility arises out of the assignment of activity.
• In order to discharge the responsibility properly, there should be uniformity of authority and responsibility.

3. Principle of Discipline

• Employees should be disciplined; they must obey and respect the rules that govern the organization.
• Discipline may be of two types. Self-imposed and command discipline.
• Self-imposed discipline springs from within the individual. It is in the nature of the spontaneous response to a skillful leader.
• Command discipline comes from a recognized authority. This ensures compliance with the desired action by established customs, rules, and regulations of the organization.

4. Principle of Unity of command

• principle of Unity of command states that one employee should receive orders from one boss only. More than one superior can not give an order to an employee at a time.
• More specifically an individual has a reporting relationship to a single superior or boss.
• This makes the problem of conflict in instructions very less. It also increases the feeling of personal responsibility for results.

5. Principle of Unity of direction

• The organization should have a single plan of action to guide managers and all the workers.
• Unity of direction provides better coordination among various activities in different departments to be undertaken by an organization.

6. Subordination of individual interests to the general/common interest

• Common organizational interest is above the individual interest of an employee.
• The personal interests of any employee should not take precedence over the interests of the business organization as a whole.
• Ambition, laziness, weakness, etc., are factors that reduce the importance of general interest.
• There should be constant vigilance and supervision to maintain agreement between employers and employees.

7. Principle of Remuneration (14 principles of Management)

• The principle of remunerations simply means that employees and workers must be paid a fair salary or wage for their services.
• Remuneration of employees should provide maximum possible satisfaction to employees and employers.

Must Read :Levels of Management

8. Principle of Centralization

• Centralization is a term used to refer to the degree to which subordinates are involved in decision-making.
• If the importance of a subordinate’s role is increasing then it is known as decentralization. And when his importance is reducing then it is called centralization.
• Centralization is very common in small firms but in large firms, a series of intermediaries and conciliators are required.

9. Principle of Scalar Chain

• This line of authority from top management to the lowest position is the scalar chain.
• There should be a scaler chain of authority and communication on every level of management from the highest to the lowest.
• It is important that communication must flow systematically through each level and position in the line of authority.

10. Principle of Order

• People and materials (Human resources) should be in the right place at the right time.
• This kind of order demands precise knowledge of the human requirement and resources of the organization and a constant balance between these requirements and resources.
• Normally, the bigger the size of the organization, the more difficult this balance is.

11. Principle of Equity

• Every Manager should be kind and fair to their subordinates.
• Equity is known as the combination of justice and kindness.
• The application of equity requires optimistic thinking, experience, and good nature for soliciting loyalty and devotion from subordinates.

12. Principle of Stability of tenure of personnel

• Management should provide orderly human resource planning and ensure that replacements are available to fill vacancies whenever required.
• No employees should be removed within a short time. There should be reasonable security of a job role.
• Stability of tenure of personnel is very important to get new employees accustomed to new work and attain set standard performance.
• Unnecessary turnover of employees is both cause and effect of bad management.

13. Principle of Initiative (14 principles of Management)

• Employees should be allowed to innovate ideas and plans and it requires high levels of effort to make this happen.
• Managers should encourage their employees for taking initiative in group meetings within the limits of authority and discipline. The initiative is concerned with thinking out and executing a plan.

14. Principle of Esprit de corps (14 principles of Management)

• Esprit de corps simply means promoting team spirit and increasing unity within the organization.
• This is the principle of ‘Union is Strength’ and the advanced stage of unity of command for establishing teamwork.
• Every manager should encourage esprit de corps among his subordinate employees.

Must Read :Roles of Manager

► 14 Principle of Management (Explained in detail)

Henri Fayol’s 14 principles of management are followed by almost all business and non-business organizations. He introduced Administrative management theory which is based on the classical approach of performing managerial tasks.

Fayol’s principles of management help managers in performing managerial roles and responsibilities in an organization.

So let’s know all 14 principles of management one by one in detail.

✔ 1. Division Of Work (management principle)

According to this principle in every organization, the whole work should be divided equally to everyone according to their qualification, Capability, and Experience. Because if a person will do again and again same work he will be specialized in that work.

If the whole workload will be in one person only then he is not able to perform that task and there are the chances of duplication of work.

Example:

There is a family wedding and everyone is involved in different preparation like one is seeing the food counter, one is seeing the arrangement of where people will sit, another one is seeing decoration, etc…

Advantages of Division Of Work

• There will be specialization.
• It improves the efficiency of the organization.

Disadvantages of Division Of Work

• There will be no specialization.
• Lack of efficiency.
• Chances of duplication of work.

✔ 2. Authority and Responsibility (management principle)

Authority refers to the power that has been legal by the organization.

Responsibility means an obligation to complete the job assigned on time.

In an organization there should be a balance between authority and responsibility if in an organization anyone has more authority then he will misuse his authority and if anyone has more responsibility without any authority then he will make excuses for not completing the work on time. So if anyone is giving any work he should also give authority.

Example:

If a person is given the responsibility to produce 200 units in 10 days but is not given authority to purchase the raw materials. If there is no raw material available in the storeroom as a result he could not complete the target of producing 100 units on time. Then an organization cannot blame the worker for not completing the given task on time because he was having excess responsibility and less authority.

Advantages of Authority and Responsibility

• There will be no misuse of authority.
• It will help in completing the given work on time.

Disadvantages of Authority and Responsibility

• Misuse of authority due to excess of authority.
• Due to more or excess responsibility, there will be an overburden of work.
• Employees will make excuses for not completing work on time due to less authority.

✔ 3. Discipline (management principle)

Discipline refers to the following code of conduct, rules regulations of the organization. There should be good superior at all the levels.

According to Fayol discipline is required at superior as well as subordinate levels. The disciplinary rules shall not be applicable for subordinates only it is required for superiors also.

Advantages of Discipline (14 principles of Management)

• There will be systematic working in an organization.
• It improves the efficiency of an organization.

Disadvantages of Discipline

• There will be missed conflicts, chaos, and confusion among all.
• If there will be no discipline then there will be a wastage of resources.
• Delay in work.

✔ 4. Unity of Command (management principle)

According to this principle in every organization, there should be one boss for giving orders to the employees and employees should only work for that boss. Because if there will be more than one boss and everyone will give orders so employees will also get confused for whom they should work. And they will not complete on time.

Advantages of Unity of Command

• No ego clashes between different bosses.
• Improves effectiveness in working.

Disadvantages of Unity of Command

• Lots of confusion in the mind of employees.
• Ego clashes between different bosses.
• Difficulty in maintaining discipline in the organization.

✔ 5. Unity of Direction (management principle)

1 organization 1 goal means that the organization and the employees should have some goals to achieve for completing the organizational goal.

Advantages of Unity of Direction

• It will help in achieving organizational goals.
• Coordination among the superior and subordinate.

Disadvantages of Unity of Direction

• Lack of coordination.
• Difficulty in achieving organizational goals

✔ 6. Subordinate of individual interest to the general interest.

According to this principle, an organization should take the interest of everyone with the organization’s interest. In the organization, all the employees are working with some objective and there is always an objective of the organization. If the objectives of individuals are in the same direction of the organization then there is no problem.

Example:

Before buying raw materials the manager must compare the prices and qualities of all the suppliers and give orders to the best rather than giving orders to his relative by misusing his power.

Advantages of Subordination of Individual Interest to General Interest

• Achievement of organizational goal.
• Coordination between superior and subordinate.

Disadvantages of Subordination of Individual Interest to General Interest

• Even employees will suffer in the long run.

✔ 7. Remuneration of Person (management principle)

According to this principle, the employees should get fair salaries and wages according to their work which could satisfy the need and wants of the employees. The wages and salary should be provided according to the wage employment act of government and salary should be provided according to the salary provided by the other companies.

Advantages of Remuneration

• Employees get motivated.
• The commitment of employees improves.

Disadvantages of Remuneration

• Increase in turnover of employees.
• Dissatisfaction and demotivation among employees.

✔ 8. Centralization & Decentralization (management principle)

Centralization refers to the concentration of authority or power in the hands of the top-level.

Decentralization refers to the distribution of power at every level of management.

There should be a balance between both of them. An organization should not be fully centralized and should not be fully decentralized.

Example:

INDIA is a country that is both centralized and decentralized.

Advantages of Centralization and Decentralization

• Benefits of both centralization as well as decentralization.
• Strict control by top-level management.

Disadvantages of Centralization and Decentralization

• Fully centralization will result in a delay in decision.
• Fully decentralization will result in misuse of authority.

✔ 9. Principle of Scalar Chain (management principle)

A scalar chain means a line of authority.

According to this principle, every information should pass from highest to lowest level. from top-level to lower level everyone should get the information no one should be left without getting the information may be the important person don`t know about the information and he cannot complete the work on time due to lack of information

Example:

If E wants to connect O he has to move through E-D-C-B-A-L-M-N and then O.

In case of emergency if other department employees want to connect the employees of another department they can directly contact the employees this is known as a gangplank.

In another scenario, If E wants to connect O he can directly contact O.

Advantages of Scaler Chain (14 principles of Management)

• The systematic flow of information.
• No communication gap in the organization.

Disadvantages of Scaler Chain

• There may be a communication gap.
• No clarity in the authority responsibility relationship.

✔ 10. Principle of order (14 principles of management)

According to this principle, it does not mean giving command it means there should be an orderly arrangement of men and material. There should be a fixed place for each and everything.

Advantages of Principle of Order

• No wastage of time in search of men or material.
• Smooth and systematic working of the organization.

Disadvantages of Principle of Order

• Wastage of time and energy in search of men and material.
• Not able to contact the people at the right time.

✔ 11. Principle of Equity (14 principle of management)

According to this principle, there should be equal, kind, and fair treatment with all the employees. Not based on caste, gender, religion, and color.

If the treatment will be based on these things then the employees will get demotivated and dissatisfied.

Advantages of Principle of Equity(14 principles of Management)

• Satisfaction among employees.
• Boost up the morale of the employees.

Disadvantages of Equity

• Dissatisfaction among employees.
• Increase in the turnover of employees.
• Bad relation between superior and subordinate.

✔ 12. Stability of Tenure of Personnel

According to this principle, the organization must provide the feeling of job security among the employees because with the feeling of insecurity of job the contribution of employees will be less. So in an organization, the employees should also involve in decision-making.

Advantages of Stability of Tenure of Personnel

• Improves efficiency level of employees.
• No wastage of time and resources.

Disadvantages of Stability of Tenure of Personnel

• Wastage of resources in learning the new job.
• Dissatisfaction among employees.

✔ 13. Initiative (14 principles of management)

According to Fayol employees in the organization must be allowed to take some initiative in making and executing plans. It gives satisfaction to employees. So managers must welcome the suggestions and ideas of employees before framing the plan. But once the plan is made every employee must follow it.

Advantages of Initiative(14 principles of Management)

• Develops a feeling of belongingness in employees.
• the target is achieved on time.

Disadvantages of Initiative

• Demotivation among employees.
• Employees will not work to their best ability.

✔ 14. Esprit De Corps (14 principles of management)

To bring better coordination and corporation in the organization the management must encourage and promote team spirit, unity, and harmony. The manager should replace it with ‘I’ and ‘We’. This will raise the trust and belongingness among team members.

Advantages of Esprit de corps(14 principles of Management)

• Develops Team spirit.
• Achievement of group goals.

Disadvantages of Esprit de corps

• Team goals may not be achieved.
• More stress on individualism.

Multi-national companies (MNC) and business organizations often have three primary levels of management organized in a hierarchical structure. Managerial functions in a number of roles including leading, sharing information, and making decisions. How often they play a particular role depends on the position of the level they occupy and the type of organization.

We have seen earlier that five management functions – planning, organizing, staffing, directing, and controlling are performed by every manager in an organization. However, the relative importance of these functions varies along with the managerial levels.

This article will help you to understand levels of management and their responsibilities according to various managerial positions in the organization.

Levels of Management

“Edward Francis Leopold Brech” was a British management consultant and author who first classified management levels into three categories.

Levels of Management can be divided into three categories:

1. Top Level Management
2. Middle-Level Management
3. Lower Level Management

1. Top Level Management:

Top Management consists of all functions of the Chairmen, Board of Directors, and Chief Executives. Top-level management (or top managers) are the “bosses” of the organization.

• It is the Topmost layer of the management hierarchy.
• They need to set the Long-term goals of the organization.
• Top management develops Strategic plans and company-wide policy.
• They integrate the functions of the whole organization.
• They are responsible for overall management.

Top management is ultimately responsible for the long-term success of the organization. They set long-term goals of the organization and define strategies to achieve them. They pay careful attention to the external environment of the organization like the economy, stakeholder demands, and consumer and public relations.

Top Management has titles such as chief executive officer (CEO), chief operations officer (COO), chief marketing officer (CMO), chief technology officer (CTO), and chief financial officer (CFO). They make major decisions about the direction of the organization at the highest level.

2. Middle-level management:

Middle management plays the role of mediator between Top and first-line management hierarchy. Top management delegates a major part of his authority and responsibility to middle management.

• They are Mediators between top to Lower management.
• They are overseen by Top management.
• It has the largest group of managers in most organizations.
• Provide Training and Development of employees.
• They Communicate the strategic goals to front-line management.

Middle management receives broad strategic plans from top management and turns them into operational blueprints with specific objectives and programs for front-line managers.

In some big organizations like MNC’s, middle management may have two categories that are senior and junior middle-level managers.

This is also known as Upper-middle level (senior) and Lower-middle level (junior) management.

• At the Upper middle-level management, the basic divisions of the organization are determined and overall programs of a department are established.
• At the Lower middle-level management, the primary concern is to carry out functions for achieving specific goals.

Middle management includes those working in the roles of departmental heads like Production manager, HR manager, Marketing Manager, Finance Manager, Regional manager, and Branch manager.

Must Read ➜ 10 Roles of Managers

3. First-Line or Lower-level management:

Supervisory / front-line / First-line management is the entry-level of management. It is also known as Supervisory Management. They are “on the line” and in the closest contact with the workers.

• Lower level management is the lowest in the three layers.
• They ensure the quality of ongoing work of workers.
• The Keep day-to-day supervision.
• They do career planning for their team.
• Provides feedback on their employees’ performance.

They are responsible for overseeing the everyday work of individual staff members and providing them with direction on their work.

First-line managers are focused almost exclusively on the internal issues of the organization. They are the first to see problems with the operation of the business, such as untrained labor, poor quality materials, machinery breakdowns, or new procedures that slow down production.

This level can be classified into three categories, particularly in a large-sized organization;

• Senior supervisor,
• Intermediate supervisors, and
• Front-line supervisors.

Lower-level/ First-line management is directly responsible for making sure that organizational objectives and plans are implemented effectively. It is essential that they communicate regularly with middle management.

Must Read ➜ What is Management?

First-line or Low-level management has job roles such as Supervisors, Technicians, Controllers, Shift managers, foremen, Section chiefs, Team Leaders.

Types of Managers (Management Levels)

Managers can be classified in two ways: by their level within the organization and by the scope of their work and responsibilities.

These Managers are classified according to a hierarchy of authority and perform different tasks. In many organizations, the number of managers at each level gives the organization a pyramid structure.

Most business organizations have three levels of Managers:

• Top-Level Managers (General Managers)
• Middle-level Managers (Functional Managers)
• Lower or first-level Managers (Front Line Managers)

Functional Area of Management

The number and types of functional areas of management are determined by the nature of the organization and the types of classifications of various activities.

According to various Management education reports, functional management areas can be divided into many parts: Production, Finance, Development, Logistics (distribution), Marketing, Transport, Maintenance, Human resource (HR), Office & administration, Information Technology (IT). This classification is very intensive.

A more acceptable and practicable classification includes four broad functional areas –

Production, Sales and Marketing, Finance, and Personnel or Human resource.

Must Read ➜ Types of Managerial Skills

These areas have their own organization, policies, procedures, and sub-activities.

Production

Production is the area that is normally kept under the control of a production manager who is responsible for the performance of entire related activities like purchasing, material management, Research, and Development.

Sales And Marketing

The marketing area involves the distribution of the organization’s product to the buyers. This requires a number of steps and can be divided into subareas like advertising, marketing research, sales management.

Finance And Accounting

This area deals with the record-keeping of various transactions and management of financial resources of the organization. It consists of financial accounting, management accounting, costing, investment management, taxation.

Human Resource

Human resource or personnel function deals with the management of human beings in the organization. It has HR activities like recruitment and selection, training and development, Industrial Relations, wages, and salary administration.

The classification of the above functional areas does not necessarily support that an organization division listed on the functional basis will have all these departments. This, however, is determined by the specific need of the organization.

Management is a process that is very important for day-to-day life and it is used in household-to-business organizations to ease the work process. Here we have discussed what is management and its meaning and definition of management, and its importance, characteristics, and objectives.

what is management in business? What are the functions and types of management, and what are the characteristics of management? All these basic questions will be covered here.

► What is Management in Business?

Management is the process of planning, organizing, staffing, leading, motivating, and making decisions to achieve organizational objectives.

Management is Science as well as Art and it is a profession also. We have covered this topic in another article.

Also Read :Management as a Science or Art?

◉ Management Meaning

• Management is a term derived from the Italian word “Managgiare”, which literal meaning is “to handle”
• and the Latin word “Manus” which literally means “Hand”
• and in the french word “Mesnagement” is a term that simply means modern-day management.

Mgmt. is a set of principles relating to the functions of planning, organizing, directing, and controlling and the practical application of these principles while managing resources of the company including human resources.

► Definition of Management

In Short,

“Management is a process of getting things done through people to achieve goals effectively and efficiently.”

Here is the complete definition,

If we break down the above definition then the most important terms to be noted here are;

◉ “Art”

Management is an art because it requires perfection through practice, practical knowledge, and skills. (It is science also as it requires some principles to be followed while performing any task.)

◉ “Process”

Process means the primary functions that managers perform to get things done. These managerial functions are planning, organizing, staffing, directing, and controlling.

◉ “Effectiveness”

Effectiveness refers to finishing the given task. Thus Effective Manager is concerned with doing the right task with the end result. It basically means completing activities and achieving goals.

◉ “Efficient”

Efficiency means doing the task correctly and minimizing the cost. An efficient Manager is concerned with the efficient use of input resources which ultimately reduce costs and lead to higher profits.

Top 10 Management Definitions by Author

Here are some of the best definitions of management given by famous authors and writers.

“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

“Management is defined as the process of planning, organizing, actuating and controlling an organization’s operations in order to achieve coordination of the human and material resources essential in the effective and efficient attainment of objectives.” – Robert L. Trewelly and M. Gene Newport

“Management is the process of working with and through others to effectively achieve organizational objectives by efficiently using limited resources in the changing environment.” – Kreitner D

“Management is a multipurpose organ that manages a business and manages managers and manages workers and work.” – Peter Drucker

“Management is to forecast, plan, organize, command, coordinate and control the activities of others.” – Henry Fayol

“Mgmt. is an art and science of decision-making and leadership” – Donald J. Cough

“Good Management, or scientific Mgmt., achieves a social objective with the best use of human and material energy and time, and with satisfaction for the participants and the public.” – Mary Crushing Nile

“Management is the art of knowing what you want to do and then seeing that they do it in the best and the cheapest manner.” – F.W. Taylor

“Management is defined as the process by which a cooperative group directs action towards common goals.” – Joseph Massie

“It is a social and technical process that utilizes, resources, influences, human action, and facilities changes in order to accomplish organizational goals.” – Theo Haimann and William Scott

Also Read :3 Levels of Management

► Objective of Management

1. Organizational Objectives: Mgmt. is expected to work for the achievement of the objectives of the particular business or organization in which it exists. Some elements are Survival, Growth, Profits, ..etc.
2. Social Objectives: Managers are not the only representative of the owners and workers, but are also responsible to the various groups outside the organization which creates a good corporate image in the industry. Some elements are the Supply of quantity at reasonable prices, Creation of Employment, ..etc.
3. Personal objectives: An organization consists of several persons who have their own goals and objectives. Some examples are a Competitive Salary, Personal growth, and Skill development, a Good working environment, ..etc.

Some other Purposes/Objectives are as follows;

• Better Utilisation of resources
• Effective Planning
• Maintain Organizational Culture
• Profit Maximization
• Increase Customer Satisfaction
• Career Planning
• To cope with Risks
• Coordination between employees

► Nature of Management

To understand the basic nature of mgmt. it must be analyzed with different aspects in terms of art and science, in relation to administration, and as a profession, in terms of managerial skills and style of managers.

• Multidisciplinary
• Universality of Administration
• Dynamic Nature of Principle
• It is a Continuous Process
• It is a Group Activity
• It is Goal Oriented
• Management is a Science as well as an Art

◉ Management as an Art:

A Manager applies his experience & skills to manage and coordinate the effort of their people to perform his duties in the organization. The main elements are:

• Personal Skill
• Application of knowledge
• Result Orientation
• Creativity
• Practical knowledge

◉ Management as a Science:

• Mgmt. is considered a Social Science, It is designed not only to bring profits to the organization but also to serve as a helpful tool for society.
• Different principles & theories are developed through continuous observation, Research & Development (R&D), and experiments.
• It constitutes a systematized body of knowledge which have practicability.
• Universal acceptability is there.

◉ Management as a Profession:

• Learning Ability
• Post Learning Experience
• Ethical code of Conduct
• National Recognition
• Working Principles

Also Read :What is Administrative Management?

► Scope of Management

It is a process for managing and controlling changes in the requirements for a project. In an organization, different managers are assigned different tasks so that there is efficiency in the tasks.

These specific tasks are termed the scope of the mgmt. These tasks are clubbed into Finance Managers, Human Resource Managers, Marketing Managers, Production Managers, Research & Development, Core Operations, patient care, hospitality, ..etc.

• Human Resource Mgmt. (HRM)
• Financial Mgmt. (FM)
• Marketing Mgmt.
• Production and Operation Mgmt.
• Risk Mgmt.
• Strategic Mgmt.
• Cost & Accounting Mgmt.
• Quality Mgmt.

► Significance/Importance of management

• Encourages Innovation
• Facilitates growth and expansion
• Optimum use of resources
• Improves life of workers
• Improves corporate image
• Encourages Team Work
• Good Corporate Image
• The welfare of the Society
• Increase Motivation
• Higher Efficiency

► Characteristics of Management

• A continuous and never-ending process
• Result and goal-oriented process
• All-pervasive/universal
• It’s science as well as art.
• Multidimensional (work/people/operations)
• It’s a group activity
• It’s a dynamic function
• It is an intangible force but its impact is felt
• It involves decision making

► Principles of Management

There are 14 principles of management given by Henry Fayol that are as follows;

1. Division of work
2. Authority and Responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of personal/individual interests to the general interest.
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure of personnel
13. Initiative
14. Esprit de corps

Must Read :14 Principles of Management (in detail)

► Functions of Management

Management is a continuous process of achieving organizational goals and objectives effectively and efficiently by using Managerial functions.

These managerial functions were originally identified by Henri Fayol as five elements; Planning, Organizing, Staffing, Leading (directing), and Controlling. There are now four commonly accepted Managerial functions.

The four basic functions of management are planning, organizing, leading, and controlling.

◉ Planning:

Planning is the act of establishing organizational goals and creating a course of action to achieve them. During the planning phase, managers make strategic decisions to set a direction for the organization.

◉ Organizing:

The purpose of organizing is to distribute the resources and delegate tasks to personnel to achieve the goals established in the planning stage.

Managers may need to work with other departments of the organization, such as finance and human resources, to organize the budget and collect raw materials.

◉ Leading:

Leading consists of motivating employees and influencing their behavior to achieve organizational objectives. Leading focuses on managing people, such as individual employees, teams, and groups rather than tasks.

Managers who are successful leaders usually connect with their employees by using interpersonal skills to encourage, inspire and motivate team members to perform to the best of their abilities.

◉ Controlling:

Controlling is the process of evaluating the execution of the plan and making adjustments to ensure that the organizational goal is achieved.

During the controlling stage, Managers monitor employees and evaluate the quality of their work. They give employees feedback, providing positive remarks on what they are doing well and suggestions for improvement.

These four managerial functions are actually highly integrated and can be considered a chain where each function builds on the previous function. These functions work together in the creation, execution, and realization of organizational goals.

Styles of Management

Most of the time Style of Mgmt is known as Types of Leadership style. A few of them are as follows;

• Democratic
• Participative
• Autocratic
• Leadership
• Collaboration
• Laissez-faire
• Participatory democracy
• Performance Mgmt.
• Transformational leadership
• Transactional leadership
• Situational leadership