Management is the administration of an organization, whether it is a government body, a not-for-profit organization, or business. Management includes the activities of setting the strategy of an organization and coordinating the efforts of its employees to accomplish its objectives through the application of available resources. The resources such as financial, natural, technological, and human resources. The term “management” can also refer to those people who manage an organization.
One popular the definition is by Mary Parker Follett. Management, she said, is the “art of getting things done through people.”
Besides ,management also may be explained as an individual or a group of individuals that take responsibilities to run an organization. They plan, organize, direct or leading and control all the essential activities of the organization. Management does not only do the work themselves. They motivate others to do the work and co-ordinate all the work for gaining the objectives of the organization.
According to Theo Heimann, management has three different meanings. The first meaning is management as a noun. It’s refers to a Group of Managers. The second meaning is management as a process which mean the Functions of Management that is planning, organizing, directing and controlling. The third meaning is management as a discipline that refers to the Subject of Management.
Management brings together all Six Ms that are Men and Women, Money, Machines, Materials, Methods and Markets. They use these resources for achieving the objectives of the organization such as maximum profits. business expansion and high sales.
According to Harold Koontz, “Management is the art of getting things done through others and with formally organized groups.”
Management also can be defined as the accomplishment of desired objectives by establishing an environment favorable to performance by people operating in organized groups. Each of the managerial functions that are planning, organizing, staffing, directing, and controlling is analyzed and defined in a systematic way. As this is done, both the distilled experience of practicing managers and the findings of scholars are presented. This is approached in such a way that the reader may grasp the relationships between each of the functions, gain a clear view of the major principles underlying them.
According to Peterson and Plowman, “Management may be defined as the process by means of which the purpose and objectives of a particular human group are determined, clarified and effectuated”
2.1 Three Level of Management
Levels of Management are a phrase referred to line of differentiation among various administrative positions in a company. The levels may increase as and when the size of the business increases. Levels of Management are usually classified into three. The three levels of management are top level management, middle level management and supervisory management.
The first level of management is top level management that consists of Chairman, Board of Directors, Managing Director, General Manager, President, Vice President, Chief Executive Officer (C.E.O.), Chief Financial Officer (C.F.O.) and Chief Operating Officer. Their main responsibility lies in planning and coordinating.Maximum authority given to the managers who working at this level .
The main functions of top level management is determining the objectives of the company. The top level managers formulate the main objectives of the organization. Then ,the top level managers also frame the plans and policies to achieve the set objectives. They also organizing activities to be performed by persons working at middle level by assigns jobs to different individuals working at middle level. Another function is they assembling all the resources such as finance and fixed assets . The top level management arranges all the finance required to carry on day to day activities. They also buy fixed assets to carry on activities in the organization.
The second level of management is middle level management that consists of departmental heads such as purchase department head, sales department head, finance manager, marketing manager, executive officer and plant superintendent. People of this group are responsible for executing the plans and policies made by top level.
There are a lot functions of middle level management. One of the function is finding out or recruiting or selecting and appointing the required employees for their department. Organising the activities of their department for executing the plans and policies is the function of middle level management. Generally middle level managers are the head of some department. So they organise all the resources and activities of their department.
Motivating the persons to perform to their best ability is duty of the middle level management.Their responsibility includes controlling and instructing the employees and preparing their performance reports. The middle level managers keep a watch on the activities of low level managers. They prepare their performance appraisal reports. They must to cooperate with other departments for smooth functioning.
The third level of management is supervisory management. This level consists of supervisors, superintendent, foreman, sub-department executives and clerk. Managers of this group actually carry on the work or perform the activities according to the plans of top and middle level management. The efficiency of this level of managers effect the quality and quantity of output.
There are many functions of the supervisory management. They handing over jobs or responsibilities to a variety of workers. Then, they guidance towards day to day activities of the organization. The supervisory managers also provide good working conditions and create supportive work environment which improve relations between supervisors and subordinates. They act as mediators in communicating the problems of workers and undertake recommending solutions to higher level of organization. The supervisory level managers are directly linked with subordinates so they are the right persons to understand the problems and grievances of subordinates. They pass these problems to middle level management.
2.6 Managerial Decision Making
Managerial Decision Making is one of the most critical processes in every organization because decision making is crucial for running a business enterprise which faces a large number of problems requiring decisions.
Successful and effective decision making gives profitable outcomes, where as unsuccessful decision making will cause a great loss for a company. The use of several method and techniques is needed in the entire process, as the management team need to choose the best decision. Additionally, a few managers also like to make decisions on their own or give priority to a collective decision.
As decision-making is a tough process, since it definitely going to make another party dissatisfy. For preventing all the major conflicts in decision-making, managers should follow the professional process of making managerial decisions.
The managerial decision making process involves 5 important steps. Each step may cover different techniques and tools. The main steps are establishing the objective, defining the problem, identifying possible alternative solutions, evaluating alternative courses of action and implementing the decision.
The first step in the decision making process is to establish the objective of the business enterprise. A business firm may have some objectives such as maximize profits,maximize sales or grow the firm.A public enterprise should evaluate all social costs and benefits when making a decision.
The second step in decision making process is one of defining or identifying the problem. decision making is after all meant to find the best solution of the problem, so it is really important to define the problem . It needs to be investigated and searched what are the causes of the problem . Once the source or reason has been found, the problem has been identified and defined.
Once the problem has been identified, the next step is to find out alternative solutions to the problem. This will require the variables and considering that have an impact on the problem. In this way, relationship among the variables and with the problems need to be established. Regarding to this, various hypotheses can be developed which will become alternative courses for the solution of the problem.
Then, the next step in business decision making is to evaluate the alternative courses of action. This requires the collection and analysis of the relevant data. Some data will be available within the various departments of the firm itself, the other may be obtained from the industry and government. The data and information obtained can be used to evaluate the outcome or results expected from each possible course of action.
The last step is to implement the decision ,after the alternative courses of action have been evaluated and optimal course of action selected. The implementation of the decision requires constant monitoring so that expected results from the optimal course of action are obtained. In fact, corrective measures should be taken if it is found that expected results are not forthcoming due to the wrong implementation of the decision.