Levels of Management

Levels of Management

The level of management in the chain of command determines the amount of authority and status enjoyed by any managerial position. Levels of management can be classified into three broad categories:

 

1. Top Management: 

Top management consists of managers at the highest level in the management hierarchy. This level consists of the Board of Directors, Chief Executive and the departmental heads. The activities of this level centers around establishing overall, long-term goals and ways of attaining these. Top management is also concerned with maintaining liaison with the outside world. For example, with government, trade unions laying down overall policies, and providing direction and leadership to the organisation as a whole. It is held responsible for the general success of failure of the organisation.

2. Middle Management:  

This level consists of departmental managers. The main function performed by this level of managers consists of linking the top and supervisory level of management. They transmit orders downwards and suggestions upwards. Besides, this level explains and interprets the policy decisions made at top level to the lower levels. They issue detailed instructions to lower levels of management and coordinate the activities of various units and divisions within the same department. Their tasks involve taking departmental decisions and inspiring lower level managers towards better performance.

3. Supervisory/Operative Management: 

The lowest level of management consists of first line supervisors. They generally have such designations as superintendent, section officer, supervisor, foreman, etc. They are directly in touch with the workers, clerks, salesmen, etc. This level is entrusted with the task of getting work done by operators or workers who actually do the work. The lowest level of management is directly concerned with the operative jobs and management of workers. There are no managers below this level. Managers at this level supervise the work of operatives to ensure that it is of required quality and is completed on time.  They assign jobs and tasks to subordinates, arrange machinery and tools, etc. and also assist along with advising the workers by explaining work procedures, and report the problems faced and suggestions made by workers to the middle level management. These managers are also responsible for planning day to day production within the framework provided by higher levels.

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Management Basics

Scope of Management

Scope of Management

Scope of management is discussed below:

1. Activity Point of View: 

From activity point of view, management can used in the following activities performed by any group such as:

1. Planning: What, when and how to achieve, objectives, setting rules and procedures, policies, strategies.

2. Organising: Dividing work into convenient tasks/duties, grouping duties in the form of positions.

3. Staffing: Manning the various positions created by organising.

4. Directing: Managers communicate subordinates about their expected behaviour, guiding and leading them.

5. Controlling: Identification of actual results, comparison with expected result, identifying deviation between the two, if any, and taking corrective action to match actual results with expected results.

2. Functional Areas of Management: 

Functional areas of management include:

1. Financial Management: This includes forecasting cost control, management accounting, budgetary control, statistical control, financial planning and management of earnings.

2. Personnel Management: This includes recruitment, training, transfer, promotion, demotion, retirement, termination, labour-welfare and social security, industrial relation, etc.

3. Purchasing Management: This includes inviting tenders for raw materials, placing orders, entering into contracts, materials control, etc.

4. Production Management: This includes production planning, production control techniques, quality control and inspection, time and motion studies, etc.

5. Maintenance Management: This relates to the proper care and maintenance of the building, plant and machinery, etc.

6. Logistics Management: This includes packing, warehousing, transportation by rail, road air, etc.

7. Marketing Management: This includes marketing, market-research, price-determination, market-risk and their avoidance, advertisement, publicity, sales promotion, etc.

• Office Management: This includes the proper layout, staffing and equipment of the office.
• Development Management: This relates to experimentation, research, etc.

3. Management is an Inter-Disciplinary Approach: 

For the correct application of the management principles study of commerce, economics, sociology, psychology and mathematics is very essential.

4. Universality of Management: 

The concept of universality of management suggests that transmission of management knowledge may be undertaken:

1. By a manager from one country to another country;
2. By people from a developing country coming to study and work in an industrially advanced country and returning back to their own country; or
3. Through training and development programs for managers in developing countries.

5. Essential of Management: 

Three essential of management are:

1. Scientific method,
2. Human relations, and
3. Quantitative technique.

6. Modern Management is an Agent of Change: 

The techniques of management can be improved by proper research and development.

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Management Basics

Objectives of Management

Objectives of Management

Objectives of management are as follows:

1. Organisational Objectives: 

Management is expected to work for the achievement of the objectives of the particular organisation in which it exits. Organisational objectives include:

• Reasonable profits so as to give a fair return on the capital invested in business.
• Survival and solvency of the business, i.e. continuity.
• Growth and expansion of the enterprise.
• Improving the goodwill or reputation of the enterprise.

2. Personal Objectives: 

An organisation consists of several persons who have their own objectives. These objectives are as follows:

• Fair remuneration for work performed.
• Reasonable working conditions.
• Opportunities for training and development.
• Participation in management and prosperity of the enterprise.
• Reasonable security of service.

3. Social Objectives: 

Management is not only a representative of the owners and workers, but it also responsible to the various groups outside the organisation. It is expected to fulfill the objectives of the society which are as follows:

• Quality of goods and services at fair price to consumers.
• Honest and prompt payment of taxes to the government.
• Conservation of environment and natural resources.
• Fair dealing with suppliers, dealers and competitors.
• Preservation of ethical values of the society.

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Management Basics

Nature of Management

Nature of Management

The nature of management is discussed below:

1. Management is a Human Activity: Management is an activity where human beings plan, implement and control the activities.

2. Management is Needed at all Levels of the Organisation: Various levels where management is required are top-level, middle-level and supervisory-level but there is difference in the nature of the task and scope of authority.

3. Management is a Distinct Entity: The identity of management is quite distinct from its various functional activities, techniques and procedures. It is an error to consider the later as management. A manager is supposed to be more a generalist rather than a specialist.

4. Management is all Pervasive: It is universal process applicable to all kinds of institutions – social, commercial, or political. Management is applicable at all levels of the organisation.

5. Management is a Social Obligation: Management aims at optimum utilization of scares resources of an organisation for the benefit of the community as a whole.

6. Management Deals With Achievement of Predetermined Objectives: Management is a kind of purposive activity. It is goal-oriented. All management activities have to be goal-oriented and result-oriented.

7.Management is a System of Authority:  Management, in reality, is the authority to make and enforce rules. Superiors go on commanding and holding the subordinates responsible for the execution of assigned tasks.

8. Multidisciplinary: Management is basically multidisciplinary. This implies that, although management has been developed as separate discipline, it draws knowledge and concepts from various disciplines. It draws free ideas and concepts from such disciplines as psychology, sociology, anthropology, economics, ecology, statistic, operations research, history, etc.

9. Dynamic Nature of Principles: Principle is a fundamental truth which establishes cause and effect relationship of a function. Based on integration and supported by practical evidences, management has framed certain principles.

10. Management as Profession: Management has been regarded as a profession by many, while many have suggested that it has not achieved the status of a profession.

11. Universality of Management: Management is a universal phenomenon. However, management principles are not universally applicable but are to be modified according to the needs of the situation.

12. Management as a Process: Management is a process which consists of functions like planning, organizing, staffing, directing and controlling. These functions require specialized knowledge and skills for their efficient performance. They are performed continuously by the managers at all levels in the organisation.

13. Management is both a Science and an Art: Management has organised body of knowledge consisting of well-defined concepts, principles and techniques which have wide applications. So it is treated as a science. The application of these concepts, principles and techniques requires specialized knowledge and skills on the part of the manager. Since the skills acquired by a manager are his personal possession, management is viewed as an art.

14. Management is Intangible:  Management has been called the unseen force. Its presence is evidenced by the result of its efforts – orderliness, informed employees, cheerful spirit and adequate work output. 

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Management Basics

Define Management and It’s Functions

Define Management and It’s Functions

Define Management and It’s Functions

Definition of Management

Management is an activity consisting of a distinct process – the management process – which is primarily concerned with the important task of goal achievement. Every business enterprise has certain pre-determined objectives. Just as in a football or hockey team, howsoever expert the players might be, they cannot defeat the rival team until and unless they make an integrated effort under the directions of an able Captain. Similarly, no business enterprise can achieve it’s objectives until and unless all the members of the unit make an integrated and planned effort under the directions of a central coordinating agency. 

In management terminology, this central coordinating agency is technically known as ‘M-A-N-A-G-E-M-E-N-T’ and the methodology of getting things done is known as ‘Management Process’. The process, in general, is defined as a series of actions or operations conducting to an end. The logic of the management process is that particular functions are performed in a sequence through time. In other words, whatever function are performed by a manager and the sequence in which they are performed, is designated as ‘Management Process’.

Management has been described as a social process involving responsibility for economical and effective planning and regulations of operation of an enterprise in the fulfillment of given purpose. It is a dynamic process consisting of various elements and activities. These activities are different from operative functions like marketing, finance, purchase, etc. Rather these activities are common to each and every manager irrespective of his level or status.

Functions of Management Process:

The main functions of management process are as follows:

1. Planning: Planning is the conscious determination of a future course of action to achieve the desired results. Henry Fayol observes that management should chalk out a plan which is the result envisaged, the line of action to be followed, the stages to go through and the methods to use. Planning is the process of thinking before doing. It means the determination of what is to be done, how and where is to be done, who is to do it and how results are to be evaluated. This step involves mapping out exactly how to achieve a particular goal. Say, for example, that the organisation’s  goal is to improve company sales. The manager first needs to decide which steps are necessary to accomplish that goal. These steps may include increasing advertising, inventory, and sales staff. These necessary steps are developed into a plan. When the plan is in place, the manager can follow it to accomplish the goal of improving company sales.

2. Organising: It is the process of dividing work into convenient tasks or duties, of grouping such duties in the form of posts, of delegating authority to each so that work is carried out as planned. Organisation contributes to the efficiency of the enterprise. Through this process, all the activities necessary for goal achievement are performed and repetition and duplication of activities is avoided, thereby reducing operation cost in the organisation. The second function of the management is getting prepared, getting organised. Management must organise all its resources well before in hand to put into practice the course of action to decide that has been planned in the base function. Through this process, management will now determine the inside directorial configuration; establish and maintain relationships, and also assign required resources.

3. Staffing: It means manning the positions created by organisation process. This process includes the selection of the candidates for positions, fixing financial compensation, training and development, promotion, transfer, etc. After a manager discerns his area’s needs, he may decide to beef up his staffing by recruiting, selecting, training, and developing employees. A manager in a large organisation often works with the company’s human resources department to accomplish this goal.

4. Directing: Once subordinates are oriented, the superior has a continuous responsibility of guiding and leading them for better work performance and motivating them to work with zeal, confidence and enthusiasm. Direction is the key to the achievement of the desired result. It is that part of managerial function which actuates the organisational methods to work efficiently for achievement of organisational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organising and staffing are the mere preparations for doing the work. Direction is that inter-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organisational goals.

5. Controlling:  After the other elements are in place, a manager’s job is not finished. He needs to continuously check results against goals and take any corrective actions necessary to make sure that his area’s plans remain on track. It involves the process of visualizing whether the activities have been or are being performed in the same way as contained in the plans because any deviation will result in inefficiency in the organisation. The controlling function brings to light the deviations if any, and assists the management in making the necessary changes in the plan or policies. This process measures the current performance and guides it towards some predetermined goal. It includes activities that managers undertake to assure that actual outcomes are consistent with planned outcomes.

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Concept of Management

Concept of Management

Basic concepts of Management are as follows:

1. Management  as a Process: 

Management is regarded as a process because it includes a series of actions. The management process consists of setting objectives for enterprise and taking steps to ensure that these objectives are achieved. The  steps include functions like planning, organizing, staffing and directing the process of management thus involves laying down various goals and finding ways to achieve the same. Management as a process may be said to consist of three aspects:

1. Management is a social process: The management process is largely a social one, because the activities involved in the achievement of goals are mainly concerned with relations between people. Basically, all tasks are carried-out when employees interact with one another. Management as a social process is concerned with making such interaction productive and useful for achieving organisational goals.

2. Management is an Integrating process: In an organisation the human beings work with non-human resources like machines, materials, technology, financial assets, buildings, etc. Management integrates human efforts in relation to those resources. Management undertakes in bringing together the human, physical and financial resources so that there is harmony among them.

3. Management is a continuous process: Management is not confined to the handling at integrating human and material resources at a particular point. Rather it is an ongoing  continuous process. It involves continuous handling of problems and issues. Management is concerned with constantly identifying the problems and solving them by taking appropriate steps.

2. Management as an Activity: 

Management is a process of making systematic use of human and material resources implies that management consists of all those activities which must be performed in the process. Management as an activity means what managers do in the process of management. It  includes:

1. Informational Activities: Management involves receiving and giving information orally and in writing.  Management constantly communicate with their subordinates as well as superiors. They exchange information relation to various tasks, situations and persons, and initiate action on that basis.

2. Decisional Activities: Another activity which needs considerable time to be devoted by managers relates to making decisions of different kinds. If someone proceeds on leave, the manager has to decide who will perform the absentee’s work. Practically all types of activities of managers are based on one or the other decision.

3. Inter-Personal Activities:  Management involves achieving goals through people. Therefore, managers have to interact with their superiors as well as subordinates. They must maintain good relations with them.  The inter-personal activities may include maintaining social relations with subordinates, and taking care of individual problems in helpful manner.

3. Management as a Group: 

Management as a group refers to management as a class or section of people who together carried-out various managerial activities. Therefore, when someone says ‘Management of a certain company is very efficient’, it refers to the section or group of people in that company who are carrying out management functions. Therefore, as a group the term management indicates the group of individuals occupying managerial positions. All the managers from the Chief Executive to first line supervisors are collectively addressed as management.

4. Management as a Discipline: 

The term ‘management’ is also used to refer to the body of knowledge and a separate field of study. Management is now recognized as a formal discipline having an organised body of knowledge which can be learnt through instructions and teaching. The emergence of management as a separate discipline is evident from the fact that all over the word a large number of new colleges and schools of management have been set up and increasingly a large number of universities and colleges have introduced management courses.

5. Management as an Economic Resource: 

Management is basically effective and economic utilization of the scarce resources which are popularly known as 5 M’s-money, materials, manpower, machinery and methods. Effective use of 5 M’s and converting inputs into products and services is the basic objective of management. Management has to plan and coordinate so that men, materials, machines, and money are best utilised and thus it can be considered as an economic resource.

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What Does Management Mean? Meaning of Management and Five Deinfintion of Management

Ever think what does Management mean? If no than Don’t worry because today I telling you the meaning of Management and Top five definition of management. So here they are:

What Does Management Mean? Meaning of Management and Five Deinfintion of Management

What does Mangement Mean?

Meaning and Definition of Management:

Managing is the art of getting things done through people in formally organized groups. Management can thus be defined as the art or skill of directing human activities and physical resources in the attainment of predetermined goals.

Men view it as a factor of production. Socialists view it as a class or group of persons. While Management practitioners treat it is a process. The trade unionists consider Management as an exploiting set of people. In simple term, ’Management is what a manager does’.

“Management” is a wide term. It carries different meanings depending on the context in which it is used. It is described as an “activity”, a “process”, and a “group of people” vested with the authority to make decisions.

Five Definition of Management:

There are many definitions of Management according to different-2 authors but we can’t write all definition here so we are writing Top five definition of management which are as follows:

According to Mary Parker Follet, “Management is the art of getting things done through people”.

According to Henry Fayol, “To manageis to forecast and plan, to organize , to command, to coordinate, and to control”.

According to Peter Drucker, “Management is a multipurpose organ that manages a business, manages a manager and manages a worker and work”.

According to James D. Mooney and Allan C. Reiley, “Management is the art of directing and inspiring people”.

According to Koontz and O’Donnel, “Management is the creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform efficiently toward the attainment of group goals. It is the art of getting the work through and with people in formally organised groups”.



Management is a set of activities (including planning and decision making, organizing, leading and controlling) directed at an organization’s resources (human, financial, physical and information) with the aim of achieving organizational goals in efficient and effective manner.

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Management Basics