Management: Concept,

Definition and Process

After reading this article you will learn about
Management:- 1. Concept of Management
2. Definitions of Management 3. Process 4.
Principles 5. Comments.

Concept of Management:
One way to analyse management is to think in terms of
what a manager does. Using this approach, we can arrive
at the management process which describes the work of
any manager.

The management work can divided into a few basic

functions of management, viz:
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(1) Planning,

(2) Organising,

(3) Directing,

(4) Controlling.

Planning is the determination of objectives and

formulation of plans, strategies, programmes, policies,
procedures and standards needed to achieve the desired
organisation objectives. To implement the plans there
must be some organisation structure.

The human and material resources or inputs are allocated

to the various units and relationships are established
among the sub-units. Organising is the second function of
a manager. Organising is the process of developing a
structure among people, function, and physical facilities to
execute the plans and achieve stated objectives.
The third function of a manager is that of directing
stimulating and motivating people in the organisation to
undertake willingly the desired actions as per
predetermined plans and objectives. Motivation is an
integral part of direction to assure desired results.

The fourth and final function of management is that of

controlling to assure directed action as per plans and
objectives. Controlling incorporates the establishment of
standards, measurements and comparison of actual results
against the standard, and necessary corrective action to
remove deviations from the plan.

Experts agree that management is a distinct type of

activity primarily responsible to get things done through
other people, and it is different from all other types of
human activities. Similarly they also agree that all
managerial functions are universal and all managers in
any field of human efforts perform those typical
managerial functions irrespective of what they are
managing.

However, we do not have unified views of authorities on

what are the managerial functions and what is
management precisely. The differences of opinion and
approach are reflected in the following often quoted
definitions of management.

1. “To manage is to forecast, to plan, to organise, to

command, to co-ordinate and to control.” —Henry
Fayol. It attempts to describe management in terms of
what a manager does, and not what management is.
2. “Management is a multipurpose organ that
manages a business and manages manager, and
manages worker and work.”— P. Drucker: The Practice
of Management

Drucker stresses three jobs of management:

(i) Managing a business;
(ii) Managing manager; and

(iii) Managing workers and work.

Even if one is omitted, we would not have management

any more and we also would not have a business
enterprise or an industrial society. According to P.
Drucker, the manager has to balance and harmonies three
major functions of the business enterprise.

Hence, a manager is a dynamic and life-giving element in

every business. Without efficient management we cannot
secure the best allocation and utilisation of human,
material and financial resources.

Definitions of Management:
(i) Generalized Definition of Management:
Management is a distinct ongoing process of allocating
inputs of an organisation (human and economic resources)
by typical managerial functions (planning, organising,
directing and controlling) for the purpose of achieving
stated objectives, viz., output of goods and services
desired by its customers (environment).

In the process, work is performed with and through

personnel of the organisation in an ever-changing business
environment.

This definition include principal ideas of any school

of management thought:
(1) Functional school sees management as a process of
planning, organising, directing and controlling.

(2) Behavioural school is not interested in the process only

but rather in the way the process affects the organisation,
i.e., with and through personnel or human resources.

(3) Quantitative school wants to improve the quality of

decision making, i.e., fulfilling the stated objectives of the
enterprise.
(4) Systems approach concentrates on the entire
organisation, i.e., inputs-process-outputs.

(5) Contingency approach emphasises dynamic nature of

management process in an ever-changing business
environment.

(ii) Precise Definition of Management:

Let us formulate a precise definition of management. It
should be the basis of our study of the principles of
management. The substance of management should be
identified as a process. A process is something that a
person does.

A process also implies ongoing and unceasing cyclical

operations. In management we have planning-action-
control cycle. Our definition must incorporate this
management cycle. A process indicates the dynamic
nature of management.

It also implies that change is a constant reality of

organisational life and management is the management of
change. Lastly, management is regarded as a social
process because it is directly concerned with management
of human resources in order to secure cooperation and
teamwork from the people in their performance,

There are twin purposes of the management process:

(1) Maximum productivity or profitability and

(2) Maximum human welfare and satisfaction.

There are five parts to a definition of management as a

process: first, the co-ordination of resources; second, the
performance of managerial functions as a means of
achieving co-ordination; the third, establishing the
objective or purpose of management process, i.e., it must
be purposeful managerial activity; the fourth aspect is that
management is a social process, and the fifth is its cyclical
nature.
Let us describe each part separately:
1. Management is Co-Ordination:
The manager of an enterprise must effectively coordinate
all activities and resources of the organisation, namely,
men, machines, materials and money the four M’s of
management.

2. Management is a Process:
The manager achieves proper co-ordination of resources
by means of the managerial functions of planning,
organising, staffing, directing (or leading and motivating)
and controlling.

3. Management is a Purposive Process:

It is directed toward the achievement of predetermined
goals or objectives. Without an objective, we have no
destination to reach or a path to follow to arrive at our
destination, i.e., a goal, both management and
organisation must be purposive or goal-oriented.

4. Management is a Social Process:

It is the art of getting things done through other people.

5. Management is a Cyclical Process:

It represents planning-action-control-re-planning cycle,
i.e., an ongoing process to attain the planned goals.

(iii) Management — an Art, A Science or A

Profession?
Science implies existence of a body of knowledge in a
systematized form based upon careful observation,
accurate measurement, experimentation and inferences or
conclusions derived from detailed analysis of data, i.e.,
facts and figures.

The knowledge is verifiable through experiments giving us

the cause-effect phenomenon. In other words, science
provides the theory, principles and the laws on any branch
of human knowledge. Science gives knowledge which in
turn gives power for application.

Management is a developing science. It has now evolved

certain basic principles and elements in the form of
process of management which has universal application in
each branch of human activity profit-making as well as
non-profit organisations. However, management is riot
comparable to exact sciences like physics, chemistry,
biology, etc. It deals with human beings and it is a social
science like the science of economics.

It is quite obvious that principles of management are not

fundamental truths and their application may not yield the
desired results always. Human behaviour is ever-changing
and most unpredictable. It is not governed by the laws of
mechanics.

A human being is not an inanimate machine. Hence,

management dealing with complex human beings is bound
to be an inexact science. Even then theoretical base of
knowledge is essential for developing sound practice. In
fact, theory must be supplemented by practical knowledge
continuously. Science and art are complementary and
each supplements the other.

Art reflects practical application of knowledge and it is

perfected through knowledge and experimentation. Art is
not only based on knowledge but it derives its inspiration
through intuition, inspiration and such other purely
subjective attributes.

A manager is not only a scientist but also an artist. As a

scientist, he relies on the existing theory and philosophy of
management and develops new knowledge, new principles
and new schools of management thought.

As an artist, he has to depend on his own experience,

intuition and judgment while making a decision on any
managerial problem and taking action on the decisions to
realise the set objectives. Scientific attitude and scientific
method shall be applied in problem-solving approach, e.g..
marketing research, business research, etc. But decision
making cannot be totally reduced to science.

In reality, human judgement and experience enjoy the veto

power in decision and as a decision-maker a manager is an
artist. In the ultimate analysis, decision making, the heart
of management, is an Art, to be acquired by conscious
effort and practice.

‘Knowledge is power’ is an old saying. But to be correct

the saying should be ‘Applied knowledge is power.’
Neither science should and the art of management go
together hand-in-hand and both are mutually
interdependent and complementary. Theoretical teaching
of medicine and engineering is almost invariably
accompanied by practical work in a hospital or workshop.

Planning and organising are called mechanics of

management and indicate emphasis on the science of
management, whereas direction (including
communication), motivation, coordination and control are
the dynamics of management emphasizing the art of
management. Getting work done through people is an art
of management.

It is a tough job demanding initiative, drive, tact,

discretion and other higher qualities. We need artistic
managerial ability to perform a managerial job. The art of
management is fully reflected in the decision making
capacity of a manager. Judgment and imagination are
essential even in a computerised economy. A computer
cannot replace a manager in decision making.

“A professional manager is one who specialises in

the work of planning, organising, leading and
controlling the efforts of others and does so through
systematic use of classified knowledge, a common
vocabulary and principles and who subscribes to the
standards of practice and code of ethics established
by recognised body.” — Louis A. Alien.

Managerial revolution has brought about separation of

management from ownership in corporate management in
all countries slowly but steadily. Hence, management is
assuming a professional character during the last three
decades.

1. Body of Knowledge:
Management has now developed a specialised body of
management theory and philosophy. Management
literature is growing in all countries. In fact, management
knowledge is the best passport to enter the world of
employment.

2. Management Tools:
Topis of management have been developed such as,
accounting, business law, psychology, statistics,
econometrics, data processing, etc. These branches of
management profession have enhanced the practical
utility of the science of management.

3. Separate Discipline:
Management studies in many universities and institutions
of higher learning are recognised as a separate discipline.
Since, 1951, we have even specialised schools of
management offering master’s degree in business
management and administration.

Seminars, special courses, training programmes are

becoming fashionable and popular for orientation and
retraining in management areas, e.g., export management,
personnel management, general management, production
management, marketing management, financial
management, etc.
4. Specialisation:
There is a growing tendency to select and appoint highly
qualified, trained and experienced persons to manage the
business in each functional area of management. Thus we
have today an increasing tendency in favour of
management by experts or professionals.

5. Code of Conduct:
Enlightened businessmen have recognised that business
management is a social institution and it has social
responsibilities to be fulfilled — towards customers,
employees, and the public or community. Corporations
have now social conscience and awareness.

Consumer-oriented marketing concept is the reflection of

a corporate code of conduct. Pressure of consumerism,
trade unionism, public opinion, and legislation are
definitely inducing the management to evolve a code of
ethics. No longer ‘buyer beware’ is ruling the exchange
relations in the market. Now we have ‘seller beware’ in
place of ‘buyer beware’ influencing market practices.

6. Professional Association:
We have now Business Management Associations in many
countries to promote the spread of knowledge in all
management areas and to build up the bright public image
of managerial profession.

Process of Management:
Principles of Management:
Followers of Fayol gave other principles of management
such as universality of management, control by exception,
equality of authority and responsibility, power and
accountability and co-ordination.

By introducing two modifications in Fayol’s concepts,

we could easily install the foundation of modern
management theory:
(1) Management is the planning, organising, command, co-
ordination and control of technical, financial, commercial,
accounting and security activities.

(2) It is not command but motivation which can help us to

understand why men and women work and how to secure
from them maximum productivity.

Thus we substitute motivation for command. Direction and

command are not enough to get things done through
people. The manager of today has to encourage,
communicate, develop and stimulate his employees to
secure higher output. Modern management places the
greatest emphasis on motivation as the key to
productivity.
The pattern of management that developed in Du Pont
Company had a far-reaching influence on modern business
enterprise. The writings of Taylor and Fayol stimulated
further investigations into the theory of management and
its application to business. The example of Du Pont
provided a pattern that was followed with great success by
many other companies.

The works of Taylor and Fayol the two pioneers in

the evolution of managerial thought are in reality
complementary:
(1) They both pointed out that the problem of personnel
and its management at all levels is the master-key to
industrial productivity and progress.

(2) Both implied scientific approach and scientific method

to solve the management problems.

(3) Taylor worked primarily on the operative level from the

bottom of the organisation hierarchy upwards. Whereas
Fayol concentrated on the Managing Director and worked
downwards on the organisation hierarchy.

(4) Both, however, stressed on the technical or

professional aspects of the management and both are
responsible for the managerial revolution which took place
after 1940.
Comments on Management:
(1) Management is a social process.

(2) It is directly in charge of allocation, utilisation and co-

ordination of all human and material resources to be
produced from the business environment or Society. The
environment provides these resources as inputs to a
business enterprise. Most of these resources are scarce
and have alternative uses. Management has to evolve an
optimum combination of these resources or inputs.

(3) The resources are co-ordinated and integrated by the

management through performing the typical managerial
functions, viz., planning, organising, staffing, directing,
motivating, communicating and controlling. These
functions constitute the process of management. The basic
resources are subjected to fundamental functions of
management.

(4) Management process is necessary to determine the

objectives and goals and to take appropriate action, i.e.,
implement the plan in order to accomplish the stated
objectives. Controlling ensures performance as per plan
and enables the management to remove the deviations, if
any, between the actual results, and expected results.

(5) As people are our greatest resources, management has

a special responsibility to create favourable work
environment and ensure maximum employee morale and
productivity. Hence, management has not only to manage
the business but also to manage both managers and
workers.

Motivation and leadership are the two unique managerial

functions or activities to ensure maximum use of human
resources without sacrificing human welfare and human
satisfaction.

(6) As a manager, you will be called upon to play different

roles under different situations, such as planner,
coordinator, leader, liaison (connecting link), monitor,
spokesman, disseminator of information, risk-bearer,
resource allocator, negotiator, disturbance handler,
resolver of interpersonal and interdepartmental conflicts,
and so on.

(7) Classical or bureaucratic management is appropriate

where the environment is relatively unchanging.
Behavioural and organic management is appropriate
where the environment is dynamic, and innovation and
creativity are at a premium.