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Definition of Management
The term ‘management’ encompasses an array of different
functions undertaken to accomplish a task successfully. In the
simplest of terms, management is all about ‘getting things
done’. However, it is the way and the process of how one
achieves ones target or goals and it is in this respect that
management is considered an art and a science as well.
The term management may be recently defined, but it existed at a
time when men started learning the art of organizing,
strategizing (during wars) and/or simply planning. At the core
of it, management was quintessentially considered as an art of
‘managing men’ and hence the term “manage-men-T.”
At the roots, management evolved when the definition of
knowledge became practically skewed rather than being plain
‘rational’. In some way, Rousseau (1972) pointed out “A real
knowledge of things may be a good thing in itself, but the
knowledge of men and their opinions is better, for in human
society.”
And much later, management scholar, Peter Drucker (1993)
defined management as “Supplying knowledge to find out how
existing knowledge can best be applied to produce results is, in
effect, what we mean by management. But knowledge is now also
being applied systematically and purposefully to determine what
new knowledge is needed, whether it is feasible, and what has to
be done to make knowledge effective. It is being applied, in
other words, to systematic innovation.” (Drucker, 1993)
From the above two definitions, it is clear that management is a
creative as well as a systematic flow of knowledge that can be
applied to produce results by using human as well as other
resources in an effective way. Management has not been limited
to managing human resource; management today has been segregated
into various branches like financial management, strategic
management, operations management, time management, crisis
management, marketing management etc. Each of these is a
separate branch that is being handled by managers who specialize
in these fields.
Today the importance of management from an organization’s point
of view has increased multifold. It is only through effective
management that companies are developing and executing their
business’s policies and strategies to maximize their profits and
provide with the best of products and services.
Management today combines creative, business, organizational,
analytical and other skills to produce effective goal-oriented
results! Some of the key functions in management includes
learning to delegate, planning and organizing, communicating
clearly, controlling situations, motivating employees, adapting
to change, constantly innovating and thinking of new ideas,
building a good team and delivering results which are not just
figure -bound but results that also focus on overall growth and
development.
Management focuses on the entire
organization from both a short and a long-term perspective. Management
is the managerial process of forming a strategic vision, setting
objectives, crafting a strategy and then implementing and executing the
strategy.
Management goes beyond the organization’s internal operations to include
the industry and the general environment. The key emphasis is on issues
related to environmental scanning and industry analysis,
appraisal of current and future competitors, assessment of core
competencies, strategic control and the effective allocation of
organizational resources. |
In general terms, there are two approaches to management:
-The Industrial Organization Approach: This approach is based on
economic theory which deals with issues like competitive rivalry,
resource allocation, economies of scale. This approach to management
assumes rationality, self interested behavior, profit maximization.
- The Sociological Approach: This approach deals primarily with human
interactions. It assumes rationality, satisfying behavior, profit
sub-optimality.
Management theories can also be divided into two sets. One is the set
that concentrates mainly on efficiency and another is the set that
concentrates mainly on effectiveness. Efficiency is about doing things
the right way. It involves eliminating waste and optimizing processes.
Effectiveness is about doing the right things.
A good management style is a blend of both efficiency and effectiveness.
There is no point in acting efficiently if what you are doing will not
have the desired effect.
Management techniques can be viewed as either bottom-up, top-down, or
collaborative processes.
In India, largely the top
down approach is popular. In the top-down approach, the management makes
the decisions, which the employees have no choice but to accept. On the
other hand, in the bottom-up approach, employees submit proposals to
their managers who, in turn, funnel the best ideas further up the
organization. However the bottom up approach is not a very popular
approach in India as most of the Indian businesses are family run
businesses.
~ Category editor Sakina Kadiwala. copyright data
indianchild.com
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