Thursday, June 7, 2012

MANAGEMENT : AN ART OR SCIENCE


Management an Art

According to G. TERRY; Art is “Bringing about a desired result through the application of will in any activity is called as an art,’ The emphasis is on applying skills with knowledge and accomplishing an end through deliberate effort. Thus the function of the art is accomplishing concrete ends efforts, results; predict situations that would not come about without the deliberate effort, to secure them.

Management is a Science

Science has been defined as “body of systemized knowledge accumulated and accepted with respect to the under standing of general tools concerning particular phenomenon subject or object of study.

It is absolutely necessary that it should have codified principles and techniques that explains certain truth with respect to basic phenomenon.

In this sense management is certainly regarded as science as it has also develop in to a systemized knowledge regarding a particular phenomenon, namely, managerial function.

Administration and management



The two terms administration and management are being used interchangeably for all practical purposes. However these two terms are different from each other. Oliver Sheldon summaries the distinction as follows.

Administration is the function in the industry concerned in the determination of corporate policy, the co-ordination of finance production and distribution, the settlement of complaints of the organization and ultimate control of executive”.

“Management is the function in the industry concerned in the execution of policy within the limits setup by the administration and the employment of the organization for the particular object set before it”.


William sprigeal distinguishes “Administration as the determinate function and “management” as the executive function.

Management is primarly concerned with carrying out of the broad policies laid down by the administration”. Thus the administration is concerned with the thinking function and management with doing function.

The essence of management is highlighted by the definition given by KOONTZ and O’ DONEL and by DONALD CLAGH. The later describe management a the art and science of decision making and leadership. Art of getting things done through people and with people. Human factor in industry has endless capacity for work provided planning and resources are made available to it. The manager’s goal of attainment of enterprise objectives in the more efficient manner can be accomplished only when the people in the enterprise work to the best of their ability in the spirit of cooperation and zeal.

Functions of management

Different experts have classified functions of management. According to George & Jerry, “There are four fundamental functions of management i.e. planning, organizing, actuating and controlling”. According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, & to control”. Whereas Luther Gullick has given a keyword ’POSDCORB’ where P stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for Budgeting. But the most widely accepted are functions of management given by KOONTZ and O’DONNEL i.e. Planning, Organizing, Staffing, Directing and Controlling.

For theoretical purposes, it may be convenient to separate the function of management but practically these functions are overlapping in nature i.e. they are highly inseparable. Each function blends into the other & each affects the performance of others.

  1. Planning
    It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals. According to KOONTZ, “Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be”. A plan is a future course of actions. It is an exercise in problem solving & decision making. Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways & means for accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.
  2. Organizing
    It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry Fayol, “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel’s”. To organize a business involves determining & providing human and non-human resources to the organizational structure. Organizing as a process involves:
    • Identification of activities.
    • Classification of grouping of activities.
    • Assignment of duties.
    • Delegation of authority and creation of responsibility.
    • Coordinating authority and responsibility relationships.
  3. Staffing
    It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior etc. The main purpose o staffing is to put right man on right job i.e. square pegs in square holes and round pegs in round holes. According to Kootz & O’Donell, “Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal & development of personnel to fill the roles designed un the structure”. Staffing involves:
    • Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place).
    • Recruitment, selection & placement.
    • Training & development.
    • Remuneration.
    • Performance appraisal.
    • Promotions & transfer.
  4. Directing
    It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. Direction has following elements:
    • Supervision
    • Motivation
    • Leadership
    • Communication
    Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers.
    Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose.
    Leadership- may be defined as a process by which manager guides and influences the work of subordinates in desired direction.
    Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding.
  5. Controlling
    It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur. According to Theo Haimann, “Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation”. According to Koontz & O’Donell “Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished”. Therefore controlling has following steps:
    1. Establishment of standard performance.
    2. Measurement of actual performance.
    3. Comparison of actual performance with the standards and finding out deviation if any.
    4. Corrective action.

Roles performed by managers


A manager wears many hats. Not only is a manager a team leader, but he or she is also a planner, organizer, cheerleader, coach, problem solver, and decision maker — all rolled into one. And these are just a few of a manager's roles.
In addition, managers' schedules are usually jam-packed. Whether they're busy with employee meetings, unexpected problems, or strategy sessions, managers often find little spare time on their calendars. (And that doesn't even include responding to e-mail!)
In his classic book, The Nature of Managerial Work, Henry Mintzberg describes a set of ten roles that a manager fills. These roles fall into three categories:



Table 1 contains a more in-depth look at each category of roles that help managers carry out all five functions described in the preceding “Functions of Managers” section.

TABLE 1 Mintzberg's Set of Ten Roles
Category Role Activity
Informational Monitor Seek and receive information; scan periodicals and reports; maintain personal contact with stakeholders.

Disseminator Forward information to organization members via memos, reports, and phone calls.

Spokesperson Transmit information to outsiders via reports, memos, and speeches.
Interpersonal Figurehead Perform ceremonial and symbolic duties, such as greeting visitors and signing legal documents.

Leader Direct and motivate subordinates; counsel and communicate with subordinates.

Liaison Maintain information links both inside and outside organization via mail, phone calls, and meetings.
Decisional Entrepreneur Initiate improvement projects; identify new ideas and delegate idea responsibility to others.

Disturbance handler Take corrective action during disputes or crises; resolve conflicts among subordinates; adapt to environments.

Resource allocator Decide who gets resources; prepare budgets; set schedules and determine priorities.

Negotiator Represent department during negotiations of union contracts, sales, purchases, and budgets.

Features of Management


Management is the process of designing and maintaining an environment in which individuals working together in groups to accomplish selected aims efficiently.
           It connotes different meaning indifferent contexts. The concept management may be used as

Collective noun

-
Board of directors or Executive Committee
Field of study
-
A branch of knowledge including the principles, techniques, functions and problem management.

Function
-
Functions to be performed to attain the organizational objectives-planning, organizing direction, co-ordination and control

In a more important sense, management is a vital function concerned wth all aspects of the working of an enterprise. Here the management is considered as a body of knowledge consisting of several concepts, principles, techniques and theories which can be adopted in any group Endeavour.

Features of Management

The important characteristics of management as a business function are:
  1. It is an art of getting things done through and with people.
  2. Art and science of decision making and leadership.
  3. It is a universal process for achieving results.
  4. It is an profession which involves specialized training and is governed by an ethical code.
  5. It coordinates human factor and physical resources for the accomplishment of group objectives.
-           by balancing and integration (or)
-           by innovation and adaptation

Importance of management study

The need and significance of management functions in the modern organizations are given below.
  1. To increase the efficiency
  2. to give a definite shape to management function.
  3. to improve research in management.
  4. to attain social goals by effective utilization of resources.

Nature of Management functions

1.              Universality     :           It has universal application in all kinds/nature and size of                                         business activities.
           
2.                  Dynamism :           This body of knowledge is going  on changing                                                    continuously with respect changes that are taking place in                                        the organizational environment.
3.                  Relativity  :           It embraces all business functions at different levels.
4.                  Regularity of
human nature :      It helps to shape the human behaviour in the work                                                    environment.

APPROACHES TO THE STUDY OF MANAGEMENT


A brief discussion about different approaches of management is given below.

Empirical approach

The empirical school of management bases its methods on a close study of past managerial experiences and management cases. As such, it is also known as case approach or management experience approach.
            According to this approach, management is considered a study of manager in practice. The intention of studying experience is to draw generalizations and to develop means to teaching experiences to other practitioners and students. Attempts are made to duplicate successful experiences while avoiding unsuccessful ones.
              This approach offers the most conventional way of acquiring skills in management, that is, learning through the experience of others. This approach also helps in classroom, situations for developing diagnostic and analytical skills in management students. Following limitations of this approach are quite obvious.
 -          This empirical approach, basing its generalizations on cases and past experiences has not contributed anything fundamental to the development of management as discipline because of obvious contradictions in various management experiences.

Human behavior approach

The human behavior approach is the outcome of the thoughts developed by behavioral scientists who look at the organization as collectivity of people. Since management involves getting things done with and through people, the study on management must revolve round human behavior. This approach can be divided into groups interpersonal behavior approach and group behavior approach. This approach suggestion how the knowledge of human behavior can be used in making people more effective in the organization.

However, this approach is not free from limitations. It is true that manage can be better placed by understanding human behavior but equating management with human behavior is untenable. There is something more than mere human relations management. Human behavior approach provides only the diagnosis for human problems but problems have to be solved by taking many more factors which are not explained by this approach.

Social system approach

Closely resembling the human behavior approach and often confused intermixed with it is the social system approach. The real pioneer of social system approach is Vilfred Pareto, a sociologist. His ideas were later developed by Chest Bernard who has really developed the concept of social systems approach management. According  to this approach, the organization is essentially a culture system composed of people who work in cooperation. As such, for achieves organization goals, a co-operative system of management can be developed only understanding the behavior of people in groups.
                  The social system approach has real significance to the practicing managers in the sense that all managers operate n a social system and the organization is likely to succeed if the demands of the society in which it operates as fully recognized. The approach, however, spreads the boundary and application of management beyond the true concept of organizations.

Social Technical systems approach

This approach believes that to solve organizational problems, it is not enough to look at the cooperative social systems alone but technical systems (methods and machines) and how it affects and is affected by social systems and a technical system. The real pattern of behavior in the organization is determined by the interaction of the two.

The major contribution of this approach is that while analyzing management problem of getting things done by people, adequate consideration should be given to technology as well as informal interactions of people. Thus any change in technology must be viewed in subsequent change in social interactions at the workplace. However, this approach is more suitable for managing the problems at the shop floor leave rather thandandling the total management problems.

Decision Theory Approach

The major emphasis of this approach is that decision making is the job of every manager. The manager is a decision maker and organization is a decision-making unit. Therefore, the basic problem in managing is to make rational decision. 
              The approach contributes to the sharpening of managerial tools specially for making suitable decisions in the organization. The approach demonstrates how managers can discharge their functions effectively. Decision-making is vital in every school of management. The vital aspect cannot be denied but management is more than mere decision making.

Management science approach

Management science approach also known as mathematical or quantitative measurement approach, visualizes management as a logical entity, the action of which can be expressed in terms of mathematical symbol relationships and measurement data.

Management science approach is a fast developing one in analyzing and understanding management. This has contributed significantly in developing orderly thinking in management which has provided exactness in management discipline. Various mathematical tools like sampling, linear programming, games theory, time series analysis, emulation, waiting line theory etc, have provided more exactness in solving managerial problems. However, it is very difficult to call it a separate school of management because it does not provide the answer for the total managerial problems, Moreover, many managerial activities are not really capable of being quantified because of involvement of human being who are governed by many irrational factors also.

Systems Approach
                This approach is of comparatively recent origin, starting late 1950, it ha assumed considerable importance in analyzing the phenomena of management. It is an integrating approach which considers management in its totality based on empirical data. The basic idea of systems approach is that any object must rely on a method of analysis involving simultaneous variations of mutually dependent variables. The implication of systems approach are given below.
                 System approach of management provides and integrated approach of managing. This considers management in its totality.
                 System approach of management provides an integrated approach of managing. This considers management in its totality.
                 System approach possesses the conceptual level of managerial analysis much higher than any other approach. It provides a framework through which organization – environment interaction can be analyzed and facilitates decision-making, since the system within which managers make decisions can be provided as a more explicit framework decision-making is easier to handle.
                 It is often suggested that system approach is too abstract to be of much use to practicing managers. It merely indicate that various parts of the organization are interrelated.
                 System approach of management lacks universality and its precepts cannot be applied to all organizations.

Contingency or situational approach
                    The basic idea of contingency approach is that there cannot be a particular management action which will be suitable for all situations. Rather, and appropriate action is one which is designed on the basis of external environment and internal states and needs. Contingency approach tries to fill this gap by suggesting what should be done in response to an event in the environment.
                    Contingency approach, on the other hand suggests an active interrelationship between the variables in a situation and the managerial actions devised. The implications of the contingency approach are given below.
                     It is the sophisticated approach to understand the increasing complexity of organizations. It emphasizes the multivariate nature of organizations and attempts tounderstand how organizations operate under varying conditions. The approach is directed towards suggesting organizational designs and managerial actins most appropriate to specific situations.
                      Inspite of the various contributions, contingency approach has not been acknowledged as a unified theory of management because it suffers from some limitations.

1.                  Inadequate Literature
Contingency approach suffers from inadequacy of literature.

2.                  Complex :

            Determination of situation in which managerial action is to be taken involves          analysis of a large number of variables with multifarious dimensions.

3.                  Reactive not Proactive:

Contingency approach is basically reactive in nature. It merely suggests what managers can do in given situation.

Operational approach
               This approach attempts to draw together the pertinent knowledge of management by relating it to the functions of managers, commonly known as management process. As such this approach is also known as management process approach. This approach views the management as a social process comprising a series of actions leading to the accomplishment of certain objectives. The significance of operations approach is given below.

1.                  Operational approach offers a broad, easy to understand conceptual framework of management. The approach includes the entire scope of management and recognizes it as a separate discipline.
2.                  This approach suggests that management is a universal phenomenon irrespective of the type of organizations or levels of an organization.
3.                  Operational approach provides useful concepts for practicing managers. It helps the managers to put their knowledge to use. It offers practical suggestions by providing classification of managerial functions at first level into planning, organizing, staffing, directing and controlling. However the operational approach has been criticized on the following grounds.

1.                  The basic tenets of operational management that is , various management functions, are not universally accepted.
2.                  Another criticism against operational approach is that various terms used in this approach are not commonly shared.
3.                  The analysis of various approaches suggests that no approach is fully free from shortcomings. However, a positive sign is emerging in the form of convergence of various approaches. The convergence is provided by operational approach as compared to any other approach.