FUNCTION OF MANAGEMENT

- May 25, 2021

1.1 DEFINITION OF MANAGEMENT

Management is currently described as a leadership job that gives overall direction to help an organization achieve its objectives. Management is the process of establishing and accomplishing objectives via the efficient use of human, financial, and material resources.

Source : vecteezy (2021)

1.2 EVOLUTION OF MANAGEMENT

Classical Approach
Behavioral Approach
Quantitative Approach
Modern Approaches
Emerging Approaches

Classical Approach

There are three schools of thought in classical management. This approach looked at the organization from the standpoint of production.

Scientific Management

This approach emphasized on scientific study of work methods to improve the efficiency of the workers. This method mainly concentrated on Improving efficiency through establishing standards, systematic observations and experiments.

“One best way to do each job”

Administrative theory

Main Focus of this approach was to coordinate the international activities of the organization. This method concentrated on division of work, authority and responsibility, Discipline, Unity of command (each employee should receive orders from one superior) and remuneration etc.

Bureaucratic Management

This Management approach shows how to run organizations and emphasizes the need for organizations to function on a rational basis. The main characteristics of this approach are work specialization, strict rules and regulations, impersonality of managers and hierarchical structure.

Behavioral Approach

This approach viewed the organization from an individual and employee point of view. The behavioral approach to management concentrated on individual attitudes, behaviors and group processes. This can be considered the foundation of Human Recourse Management as this approach considered the human factor and how employees get motivated.

Quantitative Approach

This approach focused on achieving organizational effectiveness through mathematical and statistical concepts. Quantitative method included application of statistics, optimization models, information models and computer simulations.

Modern Approaches

System Theory

Management cannot function effectively without considering the external environmental factors this approach viewed the organization as a whole and a part of the external environment. According to this theory an organizational system has four major components; Inputs, Transformation Process, Out – put and Feed back

Inputs - Money, Material, Machines and Men
Transformation Process - Managerial and technical abilities to convert in puts to output
Outputs - Products, Services and Profits
Feedback - More orders, Customer complaints

Contingency Theory

According to this theory, there is no one best way to manage all situations. In other words there is no one best way to manage. The manager’s task is to identify the best technique for the particular situation.

Emerging Approaches
Quality Management

This Approach concentrates on continues improvement of product and services to achieve higher levels of customer satisfaction.

1.3 FUNCTIONS OF MANGEMENT

Planning
Organizing
Staffing
Directing (Leading)
Controlling

PLANNING

Planning is All about identifying and setting goals, deciding on how to achieve them and in what time frame.

What do we need to achieve? (Goal)
Where are we now? (SWOT- Situational Analysis)
How do we achieve it? (Strategy)
What do we need to achieve? (Resources)
By when do we achieve it ? (Time frame)

ORGANIZING

Organizing is sourcing, allocating and arranging of resources, activity and authority in order to achieve organizational objectives.

Resources need to be sourced and allocated in a cost effective and an efficient manner in order to be competitive, as it has a major impact on the price of the final produce.
Activity needs to be allocated in a manner that will give the best productivity.
Authority and empowerment to achieve a high level of efficiency

STAFFING

Staffing refers to having a quality work force that will help achieve the goals and the objectives of the company

Sourcing employees to fill the jobs created by the organizing process.
Matching job demands with the applicant’s ability (Right people at the right place)
Orientation of the new employees to the new organizational environment.
Training on job functions and required knowledge and skills.
Retaining qualified and experience staff.
Job rotation, Job enlargement, Job enrichment.
Performance appraisals, rewards and recognition.
Pay benefits and other staff welfare.

DIRECTING (LEADING)

Directing and leading members of the organization to go in the path that will help the organization achieve its goals. This is giving general direction and leadership toward the organization's stated goals through effective communication, clear work procedures, responsibility, delegation, and empowerment.

CONTROLING

The management function is responsible for monitoring employee activities, keeping the organization on track to achieve its objectives, and making necessary corrections. The following are the main steps in controlling:

Establishing standards for performance (Ex. Targets, Lead times etc.)
Measuring standards against established standards.
Monitoring and evaluating performance standards.
Corrective action.

1.4 MANAGEMENT PROCESS

Management in all Business and human organization activity is the act of getting people together to accomplish desired goals and objectives. Management Comprises planning, organizing, staffing , leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human Resources, financial resources, technological resources, and natural resources.

Source : SlideShare (2015)

1.5 LEVELS OF MANAGEMENT

A line of demarcation between distinct managerial positions in an organization is referred to as "Levels of Management." When a company's size and workforce grow, so does the number of management levels, and vice versa. A chain of command, the quantity of authority, and the status of any managerial job are all determined by the level of management. There are three types of management levels: senior management, middle management, and lower management.

Top level / Administrative level
Middle level / Executory
Low level / Supervisory / Operative / First-line managers

Managers at various levels execute a variety of tasks. The following sections examine the function of managers at each of the three levels:

Source : SlideShare (2015)

TOP LEVEL MANAGEMENT/ ADMINISTRATIVE LEVEL

It is made up of a board of directors, a CEO, and a managing director. Top management is the ultimate source of authority and is in charge of an organization's goals and policies. It spends more time on functions such as planning and coordination.

The role of the top management can be summarized as follows -

Top management lays down the objectives and broad policies of the enterprise.
It issues necessary instructions for preparation of department budgets, procedures, schedules etc.
It prepares strategic plans & policies for the enterprise.
It appoints the executive for middle level i.e. departmental managers.
It controls & coordinates the activities of all the departments.
It is also responsible for maintaining a contact with the outside world.
It provides guidance and direction.
The top management is also responsible towards the shareholders for the performance of the enterprise.

MIDDLE LEVEL MANGER / EXECUTORY

The intermediate level is made up of branch managers and departmental managers. They are in charge of their department's operations and report to upper management. They spend more time on administrative and directional tasks. In small businesses, there is only one layer of middle management, however in larger businesses, there may be senior and junior middle management. Their contribution can be summarized as follows:

They execute the plans of the organization in accordance with the policies and directives of the top management.

They make plans for the sub-units of the organization.
They participate in employment & training of lower level management.
They interpret and explain policies from top level management to lower level.
They are responsible for coordinating the activities within the division or department.
It also sends important reports and other important data to top level management.
They evaluate performance of junior managers.
They are also responsible for inspiring lower level managers towards better performance.

LOW LEVEL / SUPERVISORY / OPERATIVE / FIRST-LINE MANAGERS

The supervisory / operational level of management is also known as the lower level of management. Supervisors, foremen, section officers, superintendents, and others make up this group. “Supervisory management refers to those executives whose work is primarily concerned with personal oversight and direction of operational employees,” according to R.C. Davis. In other words, they are concerned with management's direction and control functions. Among their activities are:

Assigning of jobs and tasks to various workers.

They guide and instruct workers for day to day activities.
They are responsible for the quality as well as quantity of production.
They are also entrusted with the responsibility of maintaining good relation in the organization.
They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and objectives to the workers.
They help to solve the grievances of the workers.
They supervise & guide the sub-ordinates.
They are responsible for providing training to the workers.
They arrange necessary materials, machines, tools etc for getting the things done.
They prepare periodical reports about the performance of the workers.
They ensure discipline in the enterprise.
They motivate workers.
They are the image builders of the enterprise because they are in direct contact with the workers.

Social Responsibilities of Management

Having a sense of responsibility to society and all that is a part of it is referred to as social responsibility. To put it another way, “social responsibility” means that managers are responsible to the entire community, not just their shareholders.

In general, social responsibility is a key feature of capitalism. Individuals and customers put their faith in corporations to "do the right thing" and lead the way in making the world a better place. Because regulations are nearly usually developed as a reaction to corporations benefiting at the expense of society around them, a world with more socially responsible managers also leads to less government regulations.

Reference
Alingasa J R (2021) Social responsibility in management. Personal Finance Lab [online] available at https://content.personalfinancelab.com/finance-knowledge/management/social-responsibility-management/?v=c65242dc6c2c accessed on May 25, 2021
Jayasundara K (2015) Function of management. SlideShare [online] available at https://www.slideshare.net/chamikrish/functions-of-management-52594710 accessed on May 25, 2021

MSG (2021) Levels of management. Management Study Guide [online] available at https://www.managementstudyguide.com/management_levels.htm accessed on May 25, 2021

Vecteezy (2021) Management vector art. Vecteezy [online]available at https://www.vecteezy.com/vector-art/1882500-work-and-career-with-orange-arrow-accent accessed on May 25, 2021