Etymology
The verb 'manage' comes
from the Italian maneggiare (to handle, especially tools), which derives from
the Latin word manus (hand). The French word mesnagement (later ménagement)
influenced the development in meaning of the English word management in the
17th and 18th centuries.
Views on the definition and scope of management include:
ü Management is defined as the organization and
coordination of the activities of an enterprise in accordance with certain
policies and in achievement of clearly defined objectives
ü Fredmund Malik defines as Management is the
transformation of resources into utility.
ü Management included as one of the factors of
production - along with machines, materials and money
ü Peter Drucker (1909–2005) sees the basic task of a
management as twofold: marketing and innovation. Nevertheless, innovation is
also linked to marketing (product innovation is a central strategic marketing
issue). Peter Drucker identifies marketing as a key essence for business
success, but management and marketing are generally understood[by whom?] as two
different branches of business administration knowledge.
ü Andreas Kaplan specifically defines European
Management as a cross-cultural, societal management approach based on
interdisciplinary principles.
ü Directors and managers should have the authority
and responsibility to make decisions to direct an enterprise when given the
authority[citation needed]
ü As a discipline, management comprises the
interlocking functions of formulating corporate policy and organizing,
planning, controlling, and directing a firm's resources to achieve a policy's
objectives
ü The size of management can range from one person
in a small firm to hundreds or thousands of managers in multinational
companies.
ü In large firms, the board of directors formulates
the policy that the chief executive officer implements.
Theoretical scope
Management involves the manipulation of
the human capital of an enterprise to contribute to the success of the
enterprise. This implies effective communication: an enterprise environment (as
opposed to a physical or mechanical mechanism), implies human motivation and
implies some sort of successful progress or system outcome. As such, management
is not the manipulation of a mechanism (machine or automated program), not the
herding of animals, and can occur in both a legal as well as illegal enterprise
or environment. Based on this, management must have humans, communication, and
a positive enterprise endeavor. Plans, measurements, motivational psychological
tools, goals, and economic measures (profit, etc.) may or may not be necessary
components for there to be management. At first, one views management
functionally, such as measuring quantity, adjusting plans, meeting goals. This
applies even in situations where planning does not take place. From this
perspective, Henri Fayol (1841–1925) considers management to consist of six
functions:
Forecasting
Planning
Organizing
Commanding
Coordinating
Controlling
Henri Fayol was one of the most
influential contributors to modern concepts of management.[citation needed]
In another way of thinking, Mary Parker
Follett (1868–1933), defined management as "the art of getting things done
through people". She described management as philosophy.
Critics, however, find this definition
useful but far too narrow. The phrase "management is what managers
do" occurs widely, suggesting the difficulty of defining management, the
shifting nature of definitions and the connection of managerial practices with
the existence of a managerial cadre or class.
One habit of thought regards management
as equivalent to "business administration" and thus excludes
management in places outside commerce, as for example in charities and in the
public sector. More broadly,every organization must manage its work, people,
processes, technology, etc. to maximize effectiveness. Nonetheless, many people
refer to university departments that teach management as "business
schools". Some institutions (such as the Harvard Business School) use that
name while others (such as the Yale School of Management) employ the more
inclusive term "management".
English speakers may also use the term
"management" or "the management" as a collective word
describing the managers of an organization, for example of a corporation.
Historically this use of the term often contrasted with the term
"Labor" - referring to those being managed.
Nature of
managerial work
In for-profit
work, management has as its primary function the satisfaction of a range of
stakeholders. This typically involves making a profit (for the shareholders),
creating valued products at a reasonable cost (for customers), and providing
rewarding employment opportunities for employees. In nonprofit management, add
the importance of keeping the faith of donors. In most models of management and
governance, shareholders vote for the board of directors, and the board then
hires senior management. Some organizations have experimented with other
methods (such as employee-voting models) of selecting or reviewing managers,
but this is rare.
In the public
sector of countries constituted as representative democracies, voters elect
politicians to public office. Such politicians hire many managers and
administrators, and in some countries like the United States political
appointees lose their jobs on the election of a new president/governor/mayor.
Historical
development
Some see
management (by definition) as late-modern (in the sense of late modernity)
conceptualization. On those terms it cannot have a pre-modern history, only
harbingers (such as stewards). Others, however, detect management-like-thought
back to Sumerian traders and to the builders of the pyramids of ancient Egypt.
Slave-owners through the centuries faced the problems of exploiting/motivating
a dependent but sometimes unenthusiastic or recalcitrant workforce, but many
pre-industrial enterprises, given their small scale, did not feel compelled to
face the issues of management systematically. However, innovations such as the
spread of Hindu-Arabic numerals (5th to 15th centuries) and the codification of
double-entry book-keeping (1494) provided tools for management assessment,
planning and control.
With the
changing workplaces of industrial revolutions in the 18th and 19th centuries,
military theory and practice contributed approaches to managing the
newly-popular factories.
Given the scale of most
commercial operations and the lack of mechanized record-keeping and recording
before the industrial revolution, it made sense for most owners of enterprises
in those times to carry out management functions by and for themselves. But
with growing size and complexity of organizations, the split between owners
(individuals, industrial dynasties or groups of shareholders) and day-to-day
managers (independent specialists in planning and control) gradually became
more common.
Early
writing
While
management (according to some definitions) has existed for millennia, several
writers have created a background of works that assisted in modern management
theories.
Some
ancient military texts have been cited for lessons that civilian managers can
gather. For example, Chinese general Sun Tzu in the 6th century BC, The Art of
War, recommends being aware of and acting on strengths and weaknesses of both a
manager's organization and a foe's.
Various
ancient and medieval civilizations have produced "mirrors for
princes" books, which aim to advise new monarchs on how to govern.
Examples include the Indian Arthashastra by Chanakya (written around 300BC),
and The Prince by Italian author Niccolò Machiavelli (c. 1515).
Further
information: Mirrors for princes
Written in 1776 by Adam
Smith, a Scottish moral philosopher, The Wealth of Nations discussed efficient
organization of work through division of labour.[8] Smith described how changes
in processes could boost productivity in the manufacture of pins. While
individuals could produce 200 pins per day, Smith analyzed the steps involved
in manufacture and, with 10 specialists, enabled production of 48,000 pins per
day.
21st century
In the 21st
century observers find it increasingly difficult to subdivide management into
functional categories in this way. More and more processes simultaneously
involve several categories. Instead, one tends to think in terms of the various
processes, tasks, and objects subject to management.[citation needed]
Branches of
management theory also exist relating to nonprofits and to government: such as
public administration, public management, and educational management. Further,
management programs related to civil-society organizations have also spawned
programs in nonprofit management and social entrepreneurship.
Note that many
of the assumptions made by management have come under attack from
business-ethics viewpoints, critical management studies, and anti-corporate
activism.
As one consequence, workplace democracy (sometimes
referred to as Workers' self-management) has become both more common and
advocated to a greater extent, in some places distributing all management
functions among workers, each of whom takes on a portion of the work. However,
these models predate any current political issue, and may occur more naturally
than does a command hierarchy. All management embraces to some degree a
democratic principle—in that in the long term, the majority of workers must
support management. Otherwise, they leave to find other work or go on strike.
Despite the move toward workplace democracy, command-and-control organization
structures remain commonplace as de facto organization structure. Indeed, the
entrenched nature of command-and-control is evident in the way that recent
layoffs have been conducted with management ranks affected far less than
employees at the lower levels. In some cases, management has even rewarded
itself with bonuses after laying off lower-level workers.
Basic
functions
Management
operates through five basic functions: planning, organizing, coordinating, commanding,
and controlling.
C Planning:
Deciding what needs to happen in the future and generating plans for action.
C Organizing:
Making sure the human and nonhuman resources are put into place
C Coordinating:
Creating a structure through which an organization's goals can be accomplished.
C Commanding:
Determining what must be done in a situation and getting people to do it.
C Controlling:
Checking progress against plans.
Basic roles
A Interpersonal:
roles that involve coordination and interaction with employees
A Informational:
roles that involve handling, sharing, and analyzing information
A Decisional:
roles that require decision-making
Skills
B Political:
used to build a power base and establish connections
B Conceptual:
used to analyze complex situations.
B Interpersonal:
used to communicate, motivate, mentor and delegate
B Diagnostic:
ability to visualize most appropriate response to a situation
Technical:
Expertise in one's particular functional area.
Sc: http://en.wikipedia.org/wiki/Management
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