MEANING OF MANAGEMENT

Management refers to the dynamic process of getting things done with the aim of achieving
goals of an organization effectively and efficiently. It is the act of creating and maintaining a
business environment, wherein, the members of the organization can work together to
achieve the business objectives effectively and efficiently.

The process in management refers to all the activities and functions that management
performs in getting things done. The functions include planning, organizing, staffing,
directing and controlling. Effectiveness in management is concerned with doing the right
task, completing activities and achieving goals. It is concerned with end results. Efficiency
means doing the task correctly at minimum cost. Efficiency is achieved when the more
benefit or output is obtained by using lesser amount of time, money and effort.

CHARACTERISTICS OF MANAGEMENT

The following are the important features or characteristics of the process of management:

1. Management is a Goal-oriented Process:

Management is meant for achieving organizational goals. Organizational goals vary between
different organizations. The goal of a trading concern is to earn maximum profit, whereas,
that of a service organization is to provide quality service. Management uses the efforts of all
individuals in the organization towards achieving these goals.

2. Management is all pervasive:

Management is a universal phenomenon. The activities involved in managing an enterprise
are common to all organizations, whether economic , social or political. Therefore, the
concept of management used in any business organization will be the same.

3. Management is multi dimensional: Management is a complex activity that has three

main dimensions. These are:

a. Management of work: Every organization exists to perform some Work. For example,
school provides education, whereas, factory produces goods. Management aims to
ensure that this work is performed effectively and efficiently.

b. Management of people: Human resource or workforce is the most important asset of

any organization. Management is ‘getting work done through people'. Managing
people has two dimensions of (i) dealing employees as individuals with diverse
needs; and (ii) dealing individuals as a group of people. The main task of
management is to make people work towards achieving the goals of the organization.

c. Management of operations: Inorder to survive, any business organization has to deal

with some basic products or services. This requires a production process in which
resource are used for getting the desired output. Management looks after this
production process. Hence, management of operations is linked to management of
work and people.
4. Management is a continuous process:
Management is a continuous or never ending function. It is concerned with constantly
identifying the problems and solving them by taking appropriate actions. Thus, managerial
functions such as planning, organizing, staffing, directing and controlling are performed by all
managers simultaneously on a continuous basis.

5. Management is a group activity:

An organization consists of diverse individuals with different needs. Every member joins the
organization for different purposes. But they have to work for achieving the common
organizational goals. This requires team work. Management helps people to realize their
individual as well as organizational goals through group efforts.

6. Management is a dynamic function: Management is a dynamic function and has to

adapt itself to the changing environment. An organization functions in social, economic,
political and legal environment. In order to survive in the market, an organization has to
change its goals according to the needs of the environment.

7. Management is an intangible force: Management cannot be seen, but its presence is

felt in the way the organization functions. The effect of good management is noticeable in an
organization where targets are met to plans. In such organizations employees are happy and
satisfied and there is orderliness instead of chaos.

8. Management is a composite process:

Management consists of a series of functions which must be performed in a proper
sequence. These functions are interdependent on each other.

DEFINITION OF MANAGEMENT
Management is a distinct process consisting of planning, organizing, actuating and
controlling, all of which are performed to determine and accomplish the objectives by the use
of human beings and other resources.
- defined by George R.Terry

LEVELS OF MANAGEMENT
The term “Levels of Management’ refers to a line of demarcation between various
managerial positions in an organization. The number of levels in management
increases when the size of the business and work force increases and vice versa.
Every organisation consists of number of persons, who are placed at different positions to
perform different responsibilities. To be able to fulfil these responsibilities they are assigned
a certain amount of authority or the right to take decisions. This authority - responsibility
relationship binds individuals as superiors and subordinates. It leads to the formation of
different levels of management. The hierarchy of management positions from top to bottom
is called levels of management.

There are 3 levels in the ranking order of an establishment and they are:
 1. Top-level management
2. Middle-level management
3. Lower-level management

1. TOP-LEVEL MANAGEMENT
Top level management consists of senior most executives of the organisation who are
responsible for framing business policies and taking major decisions. They comprise of the
senior-most executives of the company. They are normally regarded as the Chairman, the
Chief Executive Officer (CEO), the Chief Operating Officer (COO), President and
Vice-president (VP). It includes group of crucial persons essential for leading and
directing the efforts of other people. The managers working at this level have
maximum authority.

Functions of top-level management

1. Determining the objectives of the enterprise. The top level managers formulate
the main objectives of the organisation. They form long term as well as short term
objectives.

2. Framing of plans and policies. The top level managers also frame the plans and
policies to achieve the set objectives.
3. Organising activities to be performed by persons working at middle level. The
top level management assigns jobs to different individuals working at middle level.

4. Assembling all the resources such as finance, fixed assets etc. The top
level management arranges all the finance required to carry on day to day
activities.

5. Responsible for welfare and survival of the organisation. They make plan
to run the organisation smoothly and successfully.

6. Liaison with outside world, for example, meeting Government officials

etc. The top level management remains in contact with government,
 competitors, suppliers, media etc.

7. Welfare and survival of the organisation.

2. MIDDLE LEVEL MANAGEMENT

Middle level of management is subordinate to top level and superior to lower level
management. This level of management consists of departmental heads such as purchase
department head, sales department head, finance manager, marketing manager,
executive officer, plant superintendent, etc. People of this group are responsible for
executing the plans and policies made by top level. They act as a linking pin between top
and lower level management. They also exercise the functions of top
level for their department as they make plans and policies for their department,
organise and collect the resources etc.

Functions of Middle-level Management

1. Interpretation of policies framed by top management to lower level.

2. Organising the activities of their department for executing the plans and
policies.
3. Finding out or recruiting/selecting and appointing the required employees for
their department.
4. Motivating the persons to perform to their best ability.
5. Controlling and instructing the employees, preparing their performance reports
etc.
6. Cooperate with other departments for smooth functioning.
7. Implementing the plans framed by top level.

3. LOWER LEVEL OR SUPERVISORY OR OPERATIONAL MANAGEMENT

It is the lowest level in the hierarchy of management with limited authority and
responsibility. This level plays a very important role as it has direct contact with workers
Operational management consists of supervisors, foremen, superintendent, section officers,
inspectors etc. Managers of this group actually carry on the work or
perform the activities according to the plans of top and middle level management.
Their authority is limited. The quality and quantity of output depends upon the
efficiency of this level of managers. They pass on the instruction to workers and
report to the middle level management. They are also responsible for maintaining
discipline among the workers.

Functions of lower level Management

1. Representing the problems or grievances of workers before the middle level

management.

2. Maintaining good working conditions and developing healthy relations between

 superior and subordinate.

3. Helping the middle level management in recruiting, selecting and appointing

the workers.

4. Communicating with workers and welcoming of their suggestions.

5. They try to maintain precise standard of quality and ensure steady flow of
output.

6. They are responsible for boosting the morale of the workers and developing the
team spirit in them. They motivate ‘the employees and boost their morale.

7. Minimising the wastage of materials.

MANAGEMENT VS. ADMINISTRATION

Management and administration are closely related concepts within an organisation, but they
have distinct roles and functions.

MANAGEMENT
Management is defined as an act of managing people and their work, for
achieving a common goal by using the organization’s resources. It
creates an environment under which the manager and his subordinates
can work together for the attainment of group objective. It is a group of
people who use their skills and talent in running the complete system of
the organization. It is an activity, a function, a process, a discipline and
much more.
Planning, organizing, leading, motivating, controlling, coordination and
decision making are the major activities performed by the management.
Management brings together 5M’s of the organization, i.e. Men,
Material, Machines, Methods, and Money. It is a result oriented activity,
which focuses on achieving the desired output.

ADMINISTRATION
The administration is a systematic process of administering the
management of a business organization, an educational institution like
school or college, government office or any nonprofit organization. The
main function of administration is the formation of plans, policies, and
procedures, setting up of goals and objectives, enforcing rules and
regulations, etc.
Administration lays down the fundamental framework of an
organization, within which the management of the organization
functions.
The nature of administration is bureaucratic. It is a broader term as it
involves forecasting, planning, organizing and decision-making
functions at the highest level of the enterprise. Administration represents
the top layer of the management hierarchy of the organization. These top
level authorities are the either owners or business partners who invest
their capital in starting the business. They get their returns in the form of
profits or as a dividend.

DIFFERENCE BETWEEN MANAGEMENT AND ADMINISTRATION

BASIS MANAGEMENT ADMINISTRATION

Meaning Management encompasses Administration involves

the process of strategically overseeing an
planning, organizing organisation’s day-to-day
resources, coordinating operations, ensuring they
efforts, directing activities, run smoothly by
and maintaining control implementing policies and
within an organization to decisions set by
achieve its intended goals management.
and objectives.

Focus Management is primarily Administration focuses on

concerned with planning, establishing policies,
organizing, directing, and guidelines, and procedures
controlling resources to to ensure the smooth
achieve organizational operation of the
goals. organization.

Scope Management is a broader Administration is a narrower

term that encompasses term, often associated with
various functions such as the implementation of
 planning, organizing, policies, rules, and
staffing, leading, and regulations set by the
controlling. management.

Key Person Manager is the key person Administrator is the key

in the case of management. person in the case of
administration.

Decision-Making Managers make strategic Administrators make

decisions related to setting decisions related to
goals, formulating plans, implementing policies,
and allocating resources. procedures, and guidelines
set by the management.

Time Horizon Managers focus on both Administrators tend to have

short-term and long-term a longer-term perspective,
goals, with an emphasis on aiming to establish enduring
adapting to changing structures and processes.
circumstances.

Nature It is more dynamic, It is more concerned with

action-oriented, and focused establishing a stable
on achieving objectives framework, ensuring
through efficient resource adherence to rules, and
utilization. maintaining order within the
organisation.

Function Management involves Administration involves

guiding, directing, and establishing policies, rules,
leading employees toward and regulations that guide
achieving organizational the actions of employees
goals. and ensure organisational
efficiency.

Role The role of management is The role of administration is

executive in nature. decisive in nature.

DIFFERENCE ON THE BASIS OF FUNCTIONS

ADMINISTRATION MANAGEMENT

Administration is a decision taking function. Management is a executive function.

Administration is a thinking process. Management is a doing function.

Administration lays down broad objectives, Management gets things done through the
plans and policies. efforts of other people to attain the
objectives.

Administration decides what is to be done Management decides who should do it and

and when to be done. how it should be done.

Administration is performed at higher levels. Administration is done at supervisory or

lower levels.
DIFFERENCE ON THE BASIS OF USAGE

ADMINISTRATION MANAGEMENT

Administration is used in the case of The term management is commonly used in

non-business organizations. ex: business enterprises.
government, social, cultural organizations.

Administration refers to owners of the Management refers to the employees of the

organization who get a share in the profit. organisation who get remuneration in the
form of salary

Administrations are influenced by public Managers are influenced by their own

social and religious customs. opinions and beliefs.

MANAGEMENT AS A SCIENCE
Science is a systematic body of knowledge pertaining to a specific field of study that
contains general facts which explains a phenomenon. It establishes cause and effect
relationship between two or more variables and underlines the principles governing their
relationship. These principles are developed through scientific method of observation
and verification through testing.

Science is characterized by following main features:

● Systematised body of knowledge: Management has its own body of theories

and principles that were developed over the years. In addition, it has its own
vocabulary.
● Principles based on experimentation: The Principles of management have
developed over the years based on repeated observations and experiments.
However, as management deals with human behavior, no exact cause and effect
relationship can be established.

● Universal validity: Theories and principles of management are valid universally

to a great extent. They can be used to import basic knowledge and managerial
skills to budding managers.

● Cause and effect relationship: In management, it is essential to understand the

cause and effect relationship between different factors that affect the performance of an
organization. Managers need to identify the factors that cause a particular problem and
take appropriate measures to address them.

● Verified results: The principles of management have been formed by experience and
acquired the wisdom of managers over the years which has given verified results.
● Predictable result: Management does have a systematic body of knowledge and
scientific principles that can help managers predict outcomes and make informed
decisions.