Management

Management

Overview
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. Management comprises planning
Planning
Planning in organizations and public policy is both the organizational process of creating and maintaining a plan; and the psychological process of thinking about the activities required to create a desired goal on some scale. As such, it is a fundamental property of intelligent behavior...

, organizing
Organizing
Organizing is the act of rearranging elements following one or more rules.Anything is commonly considered organized when it looks like everything has a correct order or placement. But it's only ultimately organized if any element has no difference on time taken to find it...

, staffing
Human resources
Human resources is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations...

, leading
Leadership
Leadership has been described as the “process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task". Other in-depth definitions of leadership have also emerged.-Theories:...

 or directing, and controlling
Control (management)
Controlling is one of the managerial functions like planning, organizing, staffing and directing. It is an important function because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in...

 an organization
Organization
An organization is a social group which distributes tasks for a collective goal. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means a compartment for a particular job.There are a variety of legal types of...

 (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
Human resources
Human resources is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations...

, financial
FINANCIAL
FINANCIAL is the weekly English-language newspaper with offices in Tbilisi, Georgia and Kiev, Ukraine. Published by Intelligence Group LLC, FINANCIAL is focused on opinion leaders and top business decision-makers; It's about world’s largest companies, investing, careers, and small business. It is...

 resources, technological resources and natural resources
Natural Resources
Natural Resources is a soul album released by Motown girl group Martha Reeves and the Vandellas in 1970 on the Gordy label. The album is significant for the Vietnam War ballad "I Should Be Proud" and the slow jam, "Love Guess Who"...

.

Since organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system.
Discussion
Ask a question about 'Management'
Start a new discussion about 'Management'
Answer questions from other users
Full Discussion Forum
 
Unanswered Questions
Encyclopedia
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. Management comprises planning
Planning
Planning in organizations and public policy is both the organizational process of creating and maintaining a plan; and the psychological process of thinking about the activities required to create a desired goal on some scale. As such, it is a fundamental property of intelligent behavior...

, organizing
Organizing
Organizing is the act of rearranging elements following one or more rules.Anything is commonly considered organized when it looks like everything has a correct order or placement. But it's only ultimately organized if any element has no difference on time taken to find it...

, staffing
Human resources
Human resources is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations...

, leading
Leadership
Leadership has been described as the “process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task". Other in-depth definitions of leadership have also emerged.-Theories:...

 or directing, and controlling
Control (management)
Controlling is one of the managerial functions like planning, organizing, staffing and directing. It is an important function because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in...

 an organization
Organization
An organization is a social group which distributes tasks for a collective goal. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means a compartment for a particular job.There are a variety of legal types of...

 (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
Human resources
Human resources is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations...

, financial
FINANCIAL
FINANCIAL is the weekly English-language newspaper with offices in Tbilisi, Georgia and Kiev, Ukraine. Published by Intelligence Group LLC, FINANCIAL is focused on opinion leaders and top business decision-makers; It's about world’s largest companies, investing, careers, and small business. It is...

 resources, technological resources and natural resources
Natural Resources
Natural Resources is a soul album released by Motown girl group Martha Reeves and the Vandellas in 1970 on the Gordy label. The album is significant for the Vietnam War ballad "I Should Be Proud" and the slow jam, "Love Guess Who"...

.

Since organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. This view opens the opportunity to 'manage' oneself, a pre-requisite to attempting to manage others.

History


The verb manage comes from the Italian
Italian language
Italian is a Romance language spoken mainly in Europe: Italy, Switzerland, San Marino, Vatican City, by minorities in Malta, Monaco, Croatia, Slovenia, France, Libya, Eritrea, and Somalia, and by immigrant communities in the Americas and Australia...

 maneggiare (to handle — especially tools), which in turn derives from the Latin
Latin
Latin is an Italic language originally spoken in Latium and Ancient Rome. It, along with most European languages, is a descendant of the ancient Proto-Indo-European language. Although it is considered a dead language, a number of scholars and members of the Christian clergy speak it fluently, and...

 manus (hand). The French word mesnagement (later ménagement) influenced the development in meaning of the English word management in the 17th and 18th centuries.

Some definitions of management are:
  • Organization and coordination of the activities of an enterprise in accordance with certain policies and in achievement of clearly defined objectives. Management is often included as a factor of production along with machines, materials and money. According to the management guru Peter Drucker
    Peter Drucker
    Peter Ferdinand Drucker was an influential writer, management consultant, and self-described “social ecologist.”-Introduction:...

     (1909–2005), the basic task of a management is twofold: marketing
    Marketing
    Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...

     and innovation
    Innovation
    Innovation is the creation of better or more effective products, processes, technologies, or ideas that are accepted by markets, governments, and society...

    .

  • Directors and managers have the power and responsibility to make decisions to manage an enterprise when given the authority by the shareholders. As a discipline, management comprises the interlocking functions of formulating corporate policy and organizing, planning, controlling, and directing the firm's resources to achieve the policy's objectives. The size of management can range from one person in a small firm to hundreds or thousands of managers in multinational companies. In large firms the board of directors formulates the policy which is implemented by the chief executive officer.

Theoretical scope


At first, one views management functionally, such as measuring quantity, adjusting plan
Plan
A plan is typically any diagram or list of steps with timing and resources, used to achieve an objective. See also strategy. It is commonly understood as a temporal set of intended actions, through which one expects to achieve a goal...

s, meeting goal
Goal
A goal is an objective, or a projected computation of affairs, that a person or a system plans or intends to achieve.Goal, GOAL or G.O.A.L may also refer to:Sport...

s. This applies even in situations planning does not take place. From this perspective, Henri Fayol
Henri Fayol
Henri Fayol was a French mining engineer and director of mines who developed a general theory of business administration. He and his colleagues developed this theory independently of scientific management but roughly contemporaneously...

 (1841–1925)
considers management to consist of six functions
Function (engineering)
In engineering, a function is interpreted as a specific process, action or task that a system is able to perform .-In engineering design:In the lifecycle of engineering projects, there are usually distinguished subsequently: Requirements and Functional specification documents. The Requirements...

: forecasting, planning, organizing, commanding, coordinating and controlling. He was one of the most influential contributors to modern concepts of management.

Another way of thinking, Mary Parker Follett
Mary Parker Follett
Mary Parker Follett was an American social worker, management consultant and pioneer in the fields of organizational theory and organizational behavior. She also authored a number of books and numerous essays, articles and speeches on democracy, human relations, political philosophy, psychology,...

 (1868–1933), defined management as "the art of getting things done through people". She described management as philosophy.

Some people, however, find this definition useful but far too narrow. The phrase "management is what managers do" occurs widely, suggesting the difficulty of defining management, the shifting nature of definitions and the connection of managerial practices with the existence of a managerial cadre or class
Social class
Social classes are economic or cultural arrangements of groups in society. Class is an essential object of analysis for sociologists, political scientists, economists, anthropologists and social historians. In the social sciences, social class is often discussed in terms of 'social stratification'...

.

One habit of thought regards management as equivalent to "business administration" and thus excludes management in places outside commerce
Commerce
While business refers to the value-creating activities of an organization for profit, commerce means the whole system of an economy that constitutes an environment for business. The system includes legal, economic, political, social, cultural, and technological systems that are in operation in any...

, as for example in charities
Charitable organization
A charitable organization is a type of non-profit organization . It differs from other types of NPOs in that it centers on philanthropic goals A charitable organization is a type of non-profit organization (NPO). It differs from other types of NPOs in that it centers on philanthropic goals A...

 and in the public sector
Public sector
The public sector, sometimes referred to as the state sector, is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.Examples of public sector activity range...

. More realistically, however, every organization must manage its work, people, processes, technology, etc. to maximize effectiveness. Nonetheless, many people refer to university departments which teach management as "business school
Business school
A business school is a university-level institution that confers degrees in Business Administration. It teaches topics such as accounting, administration, economics, entrepreneurship, finance, information systems, marketing, organizational behavior, public relations, strategy, human resource...

s." Some institutions (such as the Harvard Business School
Harvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...

) use that name while others (such as the Yale School of Management
Yale School of Management
The Yale School of Management is the graduate business school of Yale University and is located on Hillhouse Avenue in New Haven, Connecticut, United States. The School offers Master of Business Administration and Ph.D. degree programs. As of January 2011, 454 students were enrolled in its MBA...

) employ the more inclusive term "management."

English speakers may also use the term "management" or "the management" as a collective word describing the managers of an organization, for example of a corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...

. Historically this use of the term was often contrasted with the term "Labor" referring to those being managed.

Nature of managerial work


In for-profit work, management has as its primary function the satisfaction of a range of stakeholders. This typically involves making a profit (for the shareholders), creating valued products at a reasonable cost (for customers) and providing rewarding employment opportunities (for employees). In nonprofit management, add the importance of keeping the faith of donors. In most models of management/governance
Governance
Governance is the act of governing. It relates to decisions that define expectations, grant power, or verify performance. It consists of either a separate process or part of management or leadership processes...

, shareholders vote for the board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...

, and the board then hires senior management. Some organizations have experimented with other methods (such as employee-voting models) of selecting or reviewing managers; but this occurs only very rarely.

In the public sector
Public sector
The public sector, sometimes referred to as the state sector, is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.Examples of public sector activity range...

 of countries constituted as representative democracies
Representative democracy
Representative democracy is a form of government founded on the principle of elected individuals representing the people, as opposed to autocracy and direct democracy...

, voters elect politicians to public office. Such politicians hire many managers and administrators, and in some countries like the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 political appointees lose their jobs on the election of a new president/governor/mayor.

Historical development


Difficulties arise in tracing the history of management. Some see it (by definition) as a late modern (in the sense of late modernity
Modernity
Modernity typically refers to a post-traditional, post-medieval historical period, one marked by the move from feudalism toward capitalism, industrialization, secularization, rationalization, the nation-state and its constituent institutions and forms of surveillance...

) conceptualization. On those terms it cannot have a pre-modern history, only harbingers (such as stewards
Steward (office)
A steward is an official who is appointed by the legal ruling monarch to represent him or her in a country, and may have a mandate to govern it in his or her name; in the latter case, it roughly corresponds with the position of governor or deputy...

). Others, however, detect management-like-thought back to Sumer
Sumer
Sumer was a civilization and historical region in southern Mesopotamia, modern Iraq during the Chalcolithic and Early Bronze Age....

ian traders and to the builders of the pyramids of ancient Egypt
Ancient Egypt
Ancient Egypt was an ancient civilization of Northeastern Africa, concentrated along the lower reaches of the Nile River in what is now the modern country of Egypt. Egyptian civilization coalesced around 3150 BC with the political unification of Upper and Lower Egypt under the first pharaoh...

. Slave-owners through the centuries faced the problems of exploiting/motivating a dependent but sometimes unenthusiastic or recalcitrant workforce, but many pre-industrial enterprises
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...

, given their small scale, did not feel compelled to face the issues of management systematically. However, innovations such as the spread of Arabic numerals
Arabic numerals
Arabic numerals or Hindu numerals or Hindu-Arabic numerals or Indo-Arabic numerals are the ten digits . They are descended from the Hindu-Arabic numeral system developed by Indian mathematicians, in which a sequence of digits such as "975" is read as a numeral...

 (5th to 15th centuries) and the codification of double-entry book-keeping
Double-entry bookkeeping system
A double-entry bookkeeping system is a set of rules for recording financial information in a financial accounting system in which every transaction or event changes at least two different nominal ledger accounts....

 (1494) provided tools for management assessment, planning and control.

Given the scale of most commercial operations and the lack of mechanized record-keeping and recording before the industrial revolution
Industrial Revolution
The Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, transportation, and technology had a profound effect on the social, economic and cultural conditions of the times...

, it made sense for most owners
Ownership
Ownership is the state or fact of exclusive rights and control over property, which may be an object, land/real estate or intellectual property. Ownership involves multiple rights, collectively referred to as title, which may be separated and held by different parties. The concept of ownership has...

 of enterprises in those times to carry out management functions by and for themselves. But with growing size and complexity of organizations, the split between owners (individuals, industrial dynasties or groups of shareholder
Shareholder
A shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....

s) and day-to-day managers (independent specialists in planning and control) gradually became more common.

Early writing


While management has been present for millennia, several writers have created a background of works that assisted in modern management theories.

Sun Tzu's The Art of War


Written by Chinese general Sun Tzu
Sun Tzu
Sun Wu , style name Changqing , better known as Sun Tzu or Sunzi , was an ancient Chinese military general, strategist and philosopher who is traditionally believed, and who is most likely, to have authored The Art of War, an influential ancient Chinese book on military strategy...

 in the 6th century BC, The Art of War
The Art of War
The Art of War is an ancient Chinese military treatise that is attributed to Sun Tzu , a high ranking military general and strategist during the late Spring and Autumn period...

is a military strategy book that, for managerial purposes, recommends being aware of and acting on strengths and weaknesses of both a manager's organization and a foe's.

Chanakya's Arthashastra


Chanakya
Chanakya
Chānakya was a teacher to the first Maurya Emperor Chandragupta , and the first Indian emperor generally considered to be the architect of his rise to power. Traditionally, Chanakya is also identified by the names Kautilya and VishnuGupta, who authored the ancient Indian political treatise...

 wrote the Arthashastra
Arthashastra
The Arthashastra is an ancient Indian treatise on statecraft, economic policy and military strategy which identifies its author by the names Kautilya and , who are traditionally identified with The Arthashastra (IAST: Arthaśāstra) is an ancient Indian treatise on statecraft, economic policy and...

 around 300BC in which various strategies, techniques and management theories were written which gives an account on the management of empires, economy and family. The work is often compared to the later works of Machiavelli.

Niccolò Machiavelli's The Prince


Believing that people were motivated by self-interest, Niccolò Machiavelli
Niccolò Machiavelli
Niccolò di Bernardo dei Machiavelli was an Italian historian, philosopher, humanist, and writer based in Florence during the Renaissance. He is one of the main founders of modern political science. He was a diplomat, political philosopher, playwright, and a civil servant of the Florentine Republic...

 wrote The Prince
The Prince
The Prince is a political treatise by the Italian diplomat, historian and political theorist Niccolò Machiavelli. From correspondence a version appears to have been distributed in 1513, using a Latin title, De Principatibus . But the printed version was not published until 1532, five years after...

in 1513 as advice for the city of Florence
Florence
Florence is the capital city of the Italian region of Tuscany and of the province of Florence. It is the most populous city in Tuscany, with approximately 370,000 inhabitants, expanding to over 1.5 million in the metropolitan area....

, Italy. Machiavelli recommended that leaders use fear—but not hatred—to maintain control.

Adam Smith's The Wealth of Nations


Written in 1776 by Adam Smith
Adam Smith
Adam Smith was a Scottish social philosopher and a pioneer of political economy. One of the key figures of the Scottish Enlightenment, Smith is the author of The Theory of Moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations...

, a Scottish
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...

 moral philosopher
Ethics
Ethics, also known as moral philosophy, is a branch of philosophy that addresses questions about morality—that is, concepts such as good and evil, right and wrong, virtue and vice, justice and crime, etc.Major branches of ethics include:...

, The Wealth of Nations
The Wealth of Nations
An Inquiry into the Nature and Causes of the Wealth of Nations, generally referred to by its shortened title The Wealth of Nations, is the magnum opus of the Scottish economist and moral philosopher Adam Smith...

aims for efficient organization of work through Specialization of labor. Smith described how changes in processes could boost productivity in the manufacture of pins
Pin (device)
A pin is a device used for fastening objects or material together. It is usually made of steel, or on occasion copper or brass. It is formed by drawing out a thin wire, sharpening the tip, and adding a head. Nails are related, but are typically larger....

. While individuals could produce 200 pins per day, Smith analyzed the steps involved in manufacture and, with 10 specialists, enabled production of 48,000 pins per day.

19th century


Classical economists such as Adam Smith
Adam Smith
Adam Smith was a Scottish social philosopher and a pioneer of political economy. One of the key figures of the Scottish Enlightenment, Smith is the author of The Theory of Moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations...

 (1723–1790) and John Stuart Mill
John Stuart Mill
John Stuart Mill was a British philosopher, economist and civil servant. An influential contributor to social theory, political theory, and political economy, his conception of liberty justified the freedom of the individual in opposition to unlimited state control. He was a proponent of...

 (1806–1873) provided a theoretical background to resource-allocation
Resource allocation
Resource allocation is used to assign the available resources in an economic way. It is part of resource management. In project management, resource allocation is the scheduling of activities and the resources required by those activities while taking into consideration both the resource...

, production
Production, costs, and pricing
The following outline is provided as an overview of and topical guide to industrial organization:Industrial organization – describes the behavior of firms in the marketplace with regard to production, pricing, employment and other decisions...

, and pricing
Pricing
Pricing is the process of determining what a company will receive in exchange for its products. Pricing factors are manufacturing cost, market place, competition, market condition, and quality of product. Pricing is also a key variable in microeconomic price allocation theory. Pricing is a...

 issues. About the same time, innovators like Eli Whitney
Eli Whitney
Eli Whitney was an American inventor best known for inventing the cotton gin. This was one of the key inventions of the Industrial Revolution and shaped the economy of the Antebellum South...

 (1765–1825), James Watt
James Watt
James Watt, FRS, FRSE was a Scottish inventor and mechanical engineer whose improvements to the Newcomen steam engine were fundamental to the changes brought by the Industrial Revolution in both his native Great Britain and the rest of the world.While working as an instrument maker at the...

 (1736–1819), and Matthew Boulton
Matthew Boulton
Matthew Boulton, FRS was an English manufacturer and business partner of Scottish engineer James Watt. In the final quarter of the 18th century the partnership installed hundreds of Boulton & Watt steam engines, which were a great advance on the state of the art, making possible the...

 (1728–1809) developed elements of technical production such as standardization
Standardization
Standardization is the process of developing and implementing technical standards.The goals of standardization can be to help with independence of single suppliers , compatibility, interoperability, safety, repeatability, or quality....

, quality-control
Quality control
Quality control, or QC for short, is a process by which entities review the quality of all factors involved in production. This approach places an emphasis on three aspects:...

 procedures, cost-accounting
Cost accounting
Cost accounting information is designed for managers. Since managers are taking decisions only for their own organization, there is no need for the information to be comparable to similar information from other organizations...

, interchangeability of parts, and work-planning
Plan
A plan is typically any diagram or list of steps with timing and resources, used to achieve an objective. See also strategy. It is commonly understood as a temporal set of intended actions, through which one expects to achieve a goal...

. Many of these aspects of management existed in the pre-1861 slave-based sector of the US economy. That environment saw 4 million people, as the contemporary usages had it, "managed" in profitable quasi-mass production
Mass production
Mass production is the production of large amounts of standardized products, including and especially on assembly lines...

.

20th century


By about 1900 one finds managers trying to place their theories on what they regarded as a thoroughly scientific basis (see scientism
Scientism
Scientism refers to a belief in the universal applicability of the systematic methods and approach of science, especially the view that empirical science constitutes the most authoritative worldview or most valuable part of human learning to the exclusion of other viewpoints...

 for perceived limitations of this belief). Examples include Henry R. Towne
Henry R. Towne
Henry Robinson Towne was an American mechanical engineer and businessman.-Early life:Henry R. Towne was the son of John Henry and Maria T. Towne. He attended the University of Pennsylvania from 1861 to 1862, where he was a member of St. Anthony Hall, but did not complete a degree...

's Science of management in the 1890s, Frederick Winslow Taylor
Frederick Winslow Taylor
Frederick Winslow Taylor was an American mechanical engineer who sought to improve industrial efficiency. He is regarded as the father of scientific management and was one of the first management consultants...

's The Principles of Scientific Management
The Principles of Scientific Management
The Principles of Scientific Management is a monograph published by Frederick Winslow Taylor in 1911. This influential monograph, which laid out the principles of scientific management, is a seminal text of modern organization and decision theory and has motivated administrators and students of...

(1911), Frank
Frank Bunker Gilbreth
Frank Bunker Gilbreth, Sr. was an early advocate of scientific management and a pioneer of motion study, but is perhaps best known as the father and central figure of Cheaper by the Dozen.- Biography :...

 and Lillian Gilbreth
Lillian Moller Gilbreth
Lillian Moller Gilbreth was an American psychologist and industrial engineer. One of the first working female engineers holding a Ph.D., she is arguably the first true industrial/organizational psychologist. She and her husband Frank Bunker Gilbreth, Sr...

's Applied motion study (1917), and Henry L. Gantt's charts (1910s). J. Duncan wrote the first college
College
A college is an educational institution or a constituent part of an educational institution. Usage varies in English-speaking nations...

 management textbook
Textbook
A textbook or coursebook is a manual of instruction in any branch of study. Textbooks are produced according to the demands of educational institutions...

 in 1911. In 1912 Yoichi Ueno
Yoichi Ueno
Yoichi Ueno , founder of SANNO Institute of Management, a scholar in the fields of management science and industrial psychology. He has been called the "father of Japanese administrative science"....

 introduced Taylorism to Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

 and became first management consultant of the "Japanese-management style". His son Ichiro Ueno pioneered Japanese quality assurance
Quality Assurance
Quality assurance, or QA for short, is the systematic monitoring and evaluation of the various aspects of a project, service or facility to maximize the probability that minimum standards of quality are being attained by the production process...

.

The first comprehensive theories of management appeared around 1920. The Harvard Business School
Harvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...

 offered the first Master of Business Administration
Master of Business Administration
The Master of Business Administration is a :master's degree in business administration, which attracts people from a wide range of academic disciplines. The MBA designation originated in the United States, emerging from the late 19th century as the country industrialized and companies sought out...

 degree (MBA) in 1921. People like Henri Fayol
Henri Fayol
Henri Fayol was a French mining engineer and director of mines who developed a general theory of business administration. He and his colleagues developed this theory independently of scientific management but roughly contemporaneously...

 (1841–1925) and Alexander Church
Alexander Hamilton Church
Alexander Hamilton Church was an English efficiency engineer and author. He became known as one of the pioneers in reducing the commercial organization of factories to the basis of a science, a work in which he was associated with J. Slater Lewis...

 described the various branches of management and their inter-relationships. In the early 20th century, people like Ordway Tead (1891–1973), Walter Scott
Walter Scott
Sir Walter Scott, 1st Baronet was a Scottish historical novelist, playwright, and poet, popular throughout much of the world during his time....

 and J. Mooney applied the principles of psychology
Psychology
Psychology is the study of the mind and behavior. Its immediate goal is to understand individuals and groups by both establishing general principles and researching specific cases. For many, the ultimate goal of psychology is to benefit society...

 to management, while other writers, such as Elton Mayo
Elton Mayo
George Elton Mayo was an Australian psychologist, sociologist and organization theorist.He lectured at the University of Queensland from 1911 to 1923 before moving to the University of Pennsylvania, but spent most of his career at Harvard Business School , where he was professor of industrial...

 (1880–1949), Mary Parker Follett (1868–1933), Chester Barnard
Chester Barnard
Chester Irving Barnard was an American business executive, public administrator, and the author of pioneering work in management theory and organizational studies. His landmark 1938 book, Functions of the Executive, sets out a theory of organization and of the functions of executives in...

 (1886–1961), Max Weber
Max Weber
Karl Emil Maximilian "Max" Weber was a German sociologist and political economist who profoundly influenced social theory, social research, and the discipline of sociology itself...

 (1864–1920), Rensis Likert
Rensis Likert
Rensis Likert was an American educator and organizational psychologist best known for his research on management styles...

 (1903–1981), and Chris Argyris
Chris Argyris
-Bibliography:* Chris Argyris: Personality and Organization, 1957* Chris Argyris: Some Limitations of the Case Method: Experiences in a Management Development Program.” Academy of Management Review 5: 291–298, 1980...

 (1923 - ) approached the phenomenon of management from a sociological
Sociology
Sociology is the study of society. It is a social science—a term with which it is sometimes synonymous—which uses various methods of empirical investigation and critical analysis to develop a body of knowledge about human social activity...

 perspective.

Peter Drucker
Peter Drucker
Peter Ferdinand Drucker was an influential writer, management consultant, and self-described “social ecologist.”-Introduction:...

 (1909–2005) wrote one of the earliest books on applied management: Concept of the Corporation (published in 1946). It resulted from Alfred Sloan (chairman of General Motors until 1956) commissioning a study of the organisation. Drucker went on to write 39 books, many in the same vein.

H. Dodge, Ronald Fisher
Ronald Fisher
Sir Ronald Aylmer Fisher FRS was an English statistician, evolutionary biologist, eugenicist and geneticist. Among other things, Fisher is well known for his contributions to statistics by creating Fisher's exact test and Fisher's equation...

 (1890–1962), and Thornton C. Fry introduced statistical techniques into management-studies. In the 1940s, Patrick Blackett combined these statistical theories with microeconomic
Microeconomics
Microeconomics is a branch of economics that studies the behavior of how the individual modern household and firms make decisions to allocate limited resources. Typically, it applies to markets where goods or services are being bought and sold...

 theory
Theory
The English word theory was derived from a technical term in Ancient Greek philosophy. The word theoria, , meant "a looking at, viewing, beholding", and referring to contemplation or speculation, as opposed to action...

 and gave birth to the science
Science
Science is a systematic enterprise that builds and organizes knowledge in the form of testable explanations and predictions about the universe...

 of operations research
Operations research
Operations research is an interdisciplinary mathematical science that focuses on the effective use of technology by organizations...

. Operations research, sometimes known as "management science" (but distinct from Taylor's scientific management
Scientific management
Scientific management, also called Taylorism, was a theory of management that analyzed and synthesized workflows. Its main objective was improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science to the engineering of processes and to management...

), attempts to take a scientific
Science
Science is a systematic enterprise that builds and organizes knowledge in the form of testable explanations and predictions about the universe...

 approach to solving management problems, particularly in the areas of logistics
Logistics
Logistics is the management of the flow of goods between the point of origin and the point of destination in order to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and...

 and operations.

Some of the more developments include the Theory of Constraints
Theory of Constraints
The theory of constraints adopts the common idiom "A chain is no stronger than its weakest link" as a new management paradigm. This means that processes, organizations, etc., are vulnerable because the weakest person or part can always damage or break them or at least adversely affect the...

, management by objectives
Management by objectives
Management by Objectives is a process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization....

, reengineering
Business process reengineering
Business process re-engineering is the analysis and design of workflows and processes within an organization.According to Davenport a business process is a set of logically related tasks performed to achieve a defined business outcome....

, Six Sigma
Six Sigma
Six Sigma is a business management strategy originally developed by Motorola, USA in 1986. , it is widely used in many sectors of industry.Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects and minimizing variability in manufacturing and...

 and various information-technology
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...

-driven theories such as agile software development
Agile software development
Agile software development is a group of software development methodologies based on iterative and incremental development, where requirements and solutions evolve through collaboration between self-organizing, cross-functional teams...

, as well as group management theories such as Cog's Ladder
Cog's Ladder
Cog's Ladder of group development is based on the work, "Cog's Ladder: A Model of Group Growth", by George O. Charrier, an employee of Procter and Gamble, published in a company newsletter in 1972. The original document was written to help group managers at Procter and Gamble better understand the...

.

As the general recognition of managers as a class solidified during the 20th century and gave perceived practitioners of the art/science of management a certain amount of prestige, so the way opened for popularised systems of management ideas to peddle their wares. In this context many management fad
Management fad
The term management fad is used to characterize a change in philosophy or operations that sweeps through businesses and institutions. Some fads may become established aspects of business, sustaining themselves over several years...

s may have had more to do with pop psychology than with scientific theories of management.

Towards the end of the 20th century, business management came to consist of six separate branches, namely:
  • Human resource
    Human resources
    Human resources is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations...

     management
  • Operations management
    Operations management
    Operations management is an area of management concerned with overseeing, designing, and redesigning business operations in the production of goods and/or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as little resources as needed, and...

     or production management
  • Strategic management
    Strategic management
    Strategic management is a field that deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of firms in their external environments...

  • Marketing management
    Marketing management
    Marketing management is a business discipline which is focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities...

  • Financial management
    Finance
    "Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...

  • Information technology management
    Information technology management
    IT management is the discipline whereby all of the technology resources of a firm are managed in accordance with its needs and priorities. These resources may include tangible investments like computer hardware, software, data, networks and data centre facilities, as well as the staffs who are...

     responsible for management information systems

21st century


In the 21st century observers find it increasingly difficult to subdivide management into functional categories in this way. More and more processes simultaneously involve several categories. Instead, one tends to think in terms of the various processes, tasks, and objects subject to management.

Branches of management theory also exist relating to nonprofits
Non-profit organization
Nonprofit organization is neither a legal nor technical definition but generally refers to an organization that uses surplus revenues to achieve its goals, rather than distributing them as profit or dividends...

 and to government: such as public administration
Public administration
Public Administration houses the implementation of government policy and an academic discipline that studies this implementation and that prepares civil servants for this work. As a "field of inquiry with a diverse scope" its "fundamental goal.....

, public management
Public management
Public management is a term that considers that government and non-profit administration resembles private-sector management in some important ways. As such, there are management tools appropriate in public and in private domains, tools that maximize efficiency and effectiveness...

, and educational management. Further, management programs related to civil-society
Civil society
Civil society is composed of the totality of many voluntary social relationships, civic and social organizations, and institutions that form the basis of a functioning society, as distinct from the force-backed structures of a state , the commercial institutions of the market, and private criminal...

 organizations have also spawned programs in nonprofit management and social entrepreneurship
Social entrepreneurship
Social entrepreneurship is the work of social entrepreneurs. A social entrepreneur recognizes a social problem and uses entrepreneurial principles to organize, create and manage a venture to achieve social change . While a business entrepreneur typically measures performance in profit and return, a...

.

Note that many of the assumptions made by management have come under attack from business ethics
Business ethics
Business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.Business...

 viewpoints, critical management studies
Critical management studies
Critical management studies is a loose but extensive grouping of politically left wing and theoretically informed critiques of management, business and organisation, grounded originally in a critical theory perspective...

, and anti-corporate activism
Anti-corporate activism
Anti-corporate activists believe that the influence of large business corporations poses a threat to the public good and democratic authority...

.

As one consequence, workplace democracy
Workplace democracy
Workplace democracy is the application of democracy in all its forms to the workplace....

 has become both more common, and more advocated, in some places distributing all management functions among the workers, each of whom takes on a portion of the work. However, these models predate any current political issue, and may occur more naturally than does a command hierarchy
Command hierarchy
A command hierarchy is a group of people committed to carrying out orders "from the top", that is, of authority. It is part of a power structure: usually seen as the most vulnerable and also the most powerful part of it.-Sociology:...

. All management to some degree embraces democratic principles in that in the long term workers must give majority support to management; otherwise they leave to find other work, or go on strike. Despite the move toward workplace democracy, command-and-control organization structures remain commonplace and the de facto organization structure. Indeed, the entrenched nature of command-and-control can be seen in the way that recent layoffs have been conducted with management ranks affected far less than employees at the lower levels. In some cases, management has even rewarded itself with bonuses after laying off level workers.

According to leading leadership academic Manfred F.R. Kets de Vries
Manfred F.R. Kets de Vries
Manfred F.R. Kets de Vries is a clinical professor of leadership development at INSEAD, where he holds the Raoul de Vitry d'Avaucourt Chair of Leadership Development...

, it's almost inevitable these days that there will be some personality disorders in a senior management team.

Basic functions


Management operates through various functions, often classified as planning, organizing, staffing, leading/directing, controlling/monitoring and motivation.
  • Planning: Deciding what needs to happen in the future (today, next week, next month, next year, over the next five years, etc.) and generating plans for action.
  • Organizing: (Implementation)pattern of relationships among workers, making optimum use of the resources required to enable the successful carrying out of plans.
  • Staffing: Job analysis, recruitment and hiring for appropriate jobs.
  • Leading/directing: Determining what needs to be done in a situation and getting people to do it.
  • Controlling/monitoring: Checking progress against plans.
  • Motivation: Motivation is also a kind of basic function of management, because without motivation, employees cannot work effectively. If motivation does not take place in an organization, then employees may not contribute to the other functions (which are usually set by top-level management).

Basic roles

  • Interpersonal: roles that involve coordination and interaction with employees.
  • Informational: roles that involve handling, sharing, and analyzing information.
  • Decisional: roles that require decision-making.

Management skills

  • Political: used to build a power base and establish connections.
  • Conceptual: used to analyze complex situations.
  • Interpersonal: used to communicate, motivate, mentor and delegate.
  • Diagnostic: the ability to visualise most appropriate response to a situation .


Formation of the business policy

  • The mission of the business is the most obvious purpose—which may be, for example, to make soap.
  • The vision of the business reflects its aspirations and specifies its intended direction or future destination.
  • The objectives of the business refers to the ends or activity at which a certain task is aimed.
  • The business's policy is a guide that stipulates rules, regulations and objectives, and may be used in the managers' decision-making. It must be flexible and easily interpreted and understood by all employees.
  • The business's strategy refers to the coordinated plan of action that it is going to take, as well as the resources that it will use, to realize its vision and long-term objectives. It is a guideline to managers, stipulating how they ought to allocate and utilize the factors of production to the business's advantage. Initially, it could help the managers decide on what type of business they want to form.

Implementation of policies and strategies

  • All policies and strategies must be discussed with all managerial personnel and staff.
  • Managers must understand where and how they can implement their policies and strategies.
  • A plan of action must be devised for each department.
  • Policies and strategies must be reviewed regularly.
  • Contingency plans must be devised in case the environment changes.
  • Assessments of progress ought to be carried out regularly by top-level managers.
  • A good environment and team spirit is required within the business.
  • The missions, objectives, strengths and weaknesses of each department must be analysed to determine their roles in achieving the business's mission.
  • The forecasting method develops a reliable picture of the business's future environment.
  • A planning unit must be created to ensure that all plans are consistent and that policies and strategies are aimed at achieving the same mission and objectives.

All policies must be discussed with all managerial personnel and staff that is required in the execution of any departmental policy.
  • Organizational change is strategically achieved through the implementation of the eight-step plan of action established by John P. Kotter
    John Kotter
    John Paul Kotter is a professor at the Harvard Business School and author, who is regarded as an authority on leadership and change. He outlines eight steps that organizations need to implement to successfully change:1...

    : Increase urgency, get the vision right, communicate the buy-in, empower action, create short-term wins, don't let up, and make change stick.

Policies and strategies in the planning process

  • They give mid- and lower-level managers a good idea of the future plans for each department in an organization.
  • A framework is created whereby plans and decisions are made.
  • Mid- and lower-level management may add their own plans to the business's strategic ones.

Levels of management


Most organizations have three management levels: first-level, middle-level, and top-level managers. These managers are classified in a hierarchy of authority, and perform different tasks. In many organizations, the number of managers in every level resembles a pyramid. Each level is explained below in specifications of their different responsibilities and likely job titles.

Top-level managers


Consists of board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...

, president, vice-president, CEOs, etc. They are responsible for controlling and overseeing the entire organization. They develop goals, strategic plans, company policies, and make decisions on the direction of the business. In addition, top-level managers play a significant role in the mobilization of outside resources and are accountable to the shareholders and general public.

According to Lawrence S. Kleiman, the following skills are needed at the top managerial level.

  • Broadened understanding of how: competition, world economies, politics, and social trends effect organizational effectiveness .

Middle-level managers


Consist of general managers, branch managers and department managers. They are accountable to the top management for their department's function. They devote more time to organizational and directional functions. Their roles can be emphasized as executing organizational plans in conformance with the company's policies and the objectives of the top management, they define and discuss information and policies from top management to lower management, and most importantly they inspire and provide guidance to lower level managers towards better performance.
Some of their functions are as follows:
  • Designing and implementing effective group and intergroup work and information systems.
  • Defining and monitoring group-level performance indicators.
  • Diagnosing and resolving problems within and among work groups.
  • Designing and implementing reward systems supporting cooperative behavior.

First-level managers


Consist of supervisors, section leads, foremen, etc. They focus on controlling and directing. They assigning employees tasks, guide and supervise employees on day-to-day activities, ensure quality and quantity production, make recommendations, suggestions, and upchannel employee problems, etc. First-level managers are role models for employees that provide:
  • Basic supervision.
  • Motivation.
  • Career planning.
  • Performance feedback.

See also



  • Scientific management
    Scientific management
    Scientific management, also called Taylorism, was a theory of management that analyzed and synthesized workflows. Its main objective was improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science to the engineering of processes and to management...

  • Human relations movement
    Human Relations Movement
    Human relations movement refers to the researchers of organizational development who study the behavior of people in groups, in particular workplace groups. It originated in the 1930s' Hawthorne studies, which examined the effects of social relations, motivation and employee satisfaction on...

  • Strategic management
    Strategic management
    Strategic management is a field that deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of firms in their external environments...

  • Total quality management
    Total Quality Management
    Total quality management or TQM is an integrative philosophy of management for continuously improving the quality of products and processes....