1) What is Management?
Management is the process of Planning, Organizing, leading, and controlling an organization's efforts to utilize the organization to use the organization's resources effectively to achieve its goals. In simpler words, management can also be defined as the art of getting work done with and through formally organized groups.
For instance, the success of a shopping mall would depend on how the people come together to utilize their money. Time and intelligence to locate, procedure, and sell goods to make a profit.
2) What are Management and Administration?
The words 'management and 'administration' are used synonymously. Some believe that whatever their level in the organization, all managers perform the same functions. Hence, there is no point in distinguishing between management and administration.
On the other hand, another perspective is based on the company's nature and levels, and another philosophy is based on the nature of the company and stories. There can be a difference in the terms management and administration at the managerial levels.
1) Based on the nature of the enterprise:
According to one view, the word administration is purely used with objective is non-economic. For instance, public administration services. On the other hand, management would be preferred concerning enterprises that are profit or surplus-generation oriented.
2) Based on the managerial levels:
American school of thought believes that administration is more of a policy and objectives setting function, and management is an operative function within those policies and objectives set by the administration. In other words, the administration is a broader concept than management.
On the contrary to the above American School perspective, the British school believes that management is a broader concept than administration.
There are three types of management:
Top-level of control-
Chief Executive Officer, Chief Marketing Officer, Chief Sales Officer, President, Managing Director, Chief Technology Officer.
The middle level of management-
Marketing Manager, Purchase Head, Sales Manager, Operation Manager, Branch Manager, Finance Manager.
The lower level of management-
Supervisor, Foreman, Clerk, Junior Manager, Inspectors.
Henry Fayol's Principles of Modern Management Theory Their principal focus was on creating a management system that focused on building a general order for activities within an organization.
One such contributor who is considered as the father of modern management thought was Henry Fayol, who, in his book, proposed the following principles for administration:
Division of work:
All work has to be divided into more specific activities and jobs and given a sphere of operation. This is done to reduce job conflict and interference and also to develop specialization of work.
Authority and responsibility:
Power and accountability should go hand in hand. When a specific work is assigned to an individual in a retail organization, a certain amount of authority to utilize resources should also be given.
Discipline:
It is pertinent that every individual adhered to the rules and regulations within the organization reduces chaos and create an environment for the harmony and smooth functioning of the organization.
Unity of command:
It is necessary to ensure that employees receive commands from one source. There is a possibility that multiple command centers can give contradicting or confusing orders to the employee. To reduce such problems, unity of command should be maintained.
Centralization:
Fayol believed centralization was essential and that decision-making should always be controlled at one center. He thought that this would save time and also reduce the confusion caused due to the prioritize.
To reduce such problems, unity of command should be maintained.
How can you say that Planning is the Backbone of Management?
Planning means pre-determining a future course of action. Planning decides in advance about work to be done in the future. The most fundamental function of management is planning because it precedes all operations and activities in an organization.
Planning principally involves choosing from among alternative future courses of action. There are various phases of Planning and different kinds of plans.
The mission of Purpose:
A mission is a long-term plan that is usually stated for the life period of the firm. It can encompass the business definition by saying what business the firm undertakes and which customer it caters to.
Objectives & Goals:
Objectives and goals are the ends towards which all the business activity is directed. Objectives should be specific, measurable, achievable, realistic, and time-bound. Objectives are the standards against which the firm's performance is measured.
Policies:
Policies are usually long-term standing plans of a company that reflect the governance issues and top management philosophy. The policy is a plan of action to guide decisions and actions.
Strategies:
A strategy is a game plan that is designed to achieve the objective. Strategy is a plan that usually gives the company a competitive advantage.
For instance, the company has a target of achieving a sales figure of 10 lakhs by the quarter of a year, and then the strategies could offer a price discount to increase sales.
Procedure:
A procedure would be series of interrelated steps that can be used to respond to a structured problem. Organizations encounter problems every day.
Rule:
A rule is an explicit statement as to what an employee can and cannot do. It is also a code for employee behavior. Control is never flexible.
What are the Five Management Strategies in Business Success?
1) Planning:
Planning decides in advance about work to be done in the future.
2) Organizing:
To organize a business is to provide it with everything functional. Its functioning raw material machines and tools capital and personnel.
3) Staffing:
Staffing is a process of managerial decision right man at the right job.
4) Directing:
Directing deals with a step a manager takes to get subordinates to carry out plans.
5) Controlling:
Controlling ensures that all organizational resources such as man-machine material & money are being used effectively & efficiently for the sale purpose of the organizational development.
These are five Management Strategies in the Success of Business.
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