Essay on Business Management! Read this essay to learn about:- 1. Essay on the Meaning and Elements of Business Management 2. Essay on the Features of Business Management 3. Essay on the Nature of Business Management 4. Process/Functions 5. Approaches 6. Objectives of Management – What should Management do? 7. Tasks 8. Functional Areas 9. Essay on the Importance of Business Management 10. Levels. This essay will also help you to learn about various Business Management Essay Topics.
Essay on Business Management
Essay Contents:
- Essay on the Meaning and Elements of Business Management
- Essay on the Features of Business Management
- Essay on the Nature of Business Management
- Essay on the Process/Functions of Business Management
- Essay on the Approaches of Business Management
- Essay on the Objectives of Management – What should Management do?
- Essay on the Tasks of Business Management
- Essay on the Functional Areas of Business Management
- Essay on the Importance of Business Management
- Essay on the Levels of Business Management
1. Short Essay on Business Management – Meaning and Elements:
The five management elements may be enumerated as follows:
(1) To determine objects and planning therefore;
(2) To set-up organisation and assign responsibility;
(3) To co-ordinate and direct activities;
(4) To set standards and effect control accordingly; and
(5) To motivate and cause co-operation among various factors of production and organised groups of personnel.
In the end it can be said that – Management is a universal process in all organised social and economic activities. It is not merely restricted to factory, shop or office. It is an operative force in all complex organisations trying to achieve some stated objectives.
Management is necessary for a business firm, government enterprises, education and health services, military organisations, trade associations and so on. Hence, management skills are transferable and a manager can successfully apply his knowledge and skill in a wide variety of enterprises.
Of course, situational factors will influence the suitable combination of managerial skills. Experts of management also 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.
However, the definition of management has been examined from various angles and the views of various authors have been studied and accepted under various forms and now we are going to examine and see how management studies have been classified for study purposes and the approach of various eminent and their classifications.
The important classifications are as follows:
1. Management as an art of getting things done through other people.
2. Management as a function.
3. Management as a process
4. Management as a body of individuals.
5. Management as a discipline.
These view points as definitions are as follows:
1. Management as an Art of Getting Things Done through Other People:
Management is an art of accomplishing things by working with other motivated people in an organised manner. It is the pivot of a joint enterprise in any human activity. Mary Parker Follett has defined management as “the art of getting things done through others.”
This definition calls attention to the fact that the managers achieve organisational objectives by arranging for others to perform whatever tasks may be necessary and not performing the tasks themselves.
Scope – Analysing this definition it can be said that the scope of management is not merely restricted to getting things done through others.
It is definitely much more and it includes – (i) Decision-making; (ii) Organising; (iii) staffing; (iv) Motivation; (v) Leading of subordinates; and (vi) Controlling various organisational activities.
Criticism – The above definition given Mr. Parker has been criticised and the important criticisms are as follows:
(a) This definition smacks of a manipulative character about the practice of management.
(b) The conception of employees as mere means to certain ends, seems to be embodied in this definition.
It is true that an enterprise employs people for the efficient and effective utilisation of material resources to achieve its purpose. But the people so employed have their needs which they seek to fulfill through their work-place. It is essential to fulfill their needs to motivate them to contribute their efforts for the achievement of organisational goals.
Authors like Maslow, Herzberg, McGregor and Vroom have clearly laid down that the behaviour of the people working in an organisation is largely dependent upon the fulfillment of their needs.
Short Comings – But this definition of Mr. Parker completely ignores the needs of the Personnel.
The concept of getting things done through others further depicts that the process of management is a sort of ‘one way traffic’.
Such a view cannot be accepted particularly when the employees are educated and have faith in democracy. Therefore, the employees should not be treated as mere commodity or mere means to achieve certain ends.
Needs and aspirations of the employees should also be given proper consideration. Their needs must be satisfied to achieve full integration of their goals with those of the enterprise.
Management is certainly more than just getting things done through others. It may be viewed as a technique of getting things done through others by satisfying their needs and providing them opportunities for growth and advancement.
Conclusion – Therefore, Harold Koontz has defined management as “the art of getting things done through and with people in formally organised groups. It is the art of creating an environment in which people can perform as individuals, and yet co-operate towards attainment of group goals.”
It is the art of removing blocks to such performance, a way of optimising efficiency in reaching goals.”
2. Management as a Function:
Management is the Key Function in any organisation.
According to Dalton E. Mc. Farland – “Management is the fundamental integrating and operating mechanism underlying organised effort.”
William Spriegel’s view on management is – “as that function of an enterprise which concerns itself with the direction and control of various activities to attain the business activites.”
It is the function of working with people and co-ordinating their efforts so as to accomplish the objectives of the organisation.
In short, administration is the legislative determinative or planning function and it is concerned with the over-all supreme policy-framing and decision-making authority. Management is an executive function in charge of overall direction of human efforts and getting work done through other people. Management is primarily concerned with the carrying out the board policy laid down by the administration.
Organisation is the framework or medium to exercise managerial functions. Management is an effective execution. Administration is an effective direction. Administration devises the organisation; management uses the organisation. Administration defines goals; management tries its best to achieve those goals. Organisation is the machine to be used by management to discharge managerial functions to accomplish the set goals.
3. Management as a Process:
Management is a process. It is a process of getting things done, by working with the people at work and resources applied with a view to accomplish the task set for within the framework of the policies and programmes. Management is an action-oriented process. Actions in any given set of circumstances are not decided in advance. On the spot decisions are also requirements of the management process.
Obviously the action depends on the objectives to be achieved and nature, knowledge and skill, habits and behaviour of the working force. A series of actions in the content of a management process, which may be described use as a social process since it is related mainly to the working force and the society which the management by implication has to serve.
Management is graded as a social process because of the following reasons:
(a) It is related with the people who constitute the working force.
(b) It is a continuing process, like education, which faces new problem, adjusts to the new circumstances, alters its principles and practices, if need be, vows to serve the society in its new social order, moves according to the dictate of people at large and above all works largely for the social gain.
(c) It involves thought, judgement and decision on the part of the working force right from the highest ladder to the lowest. It, thus, is a mental process requiring everyone to do a mental exercise with a view to accomplish his own assigned job that too with full satisfaction.
(d) It requires performance of some fundamental management functions – the performance being the men drawn out from a society which expects their member to do what the society wants to be done by them.
Attainment of pre-determined objectives are the main plank on which a management always rides and it is interested to achieve those objectives by involving itself in some fundamental functions. The Fundamental Management Functions are described as the management process. Management is a never ending process. It is dynamic in nature because it is changing fast and new-dimensions are added to it.
The process of management involves the determination of objectives and putting them into action. Management is that process by which managers create, direct, maintain and operate purposive organisations through systematic, co-ordinated and co-operative human effort.
The whole process can broadly be divided into the following five set of actions aiming at the extraction of the best working force possesses at a given time:
i. Planning
ii. Organising,
iii. Motivating,
iv. Controlling,
v. Co-ordinating.
i. Planning:
Crystallising the objectives can in precised term be called as planning.
While planning management plays a role of:
(a) An Analyst – Who plans, collects, and synthesises information from time-to-time aiming at best utilisatoin of men and materials to the best advantage of the enterprise as well as the society as a whole.
(b) A Thinker – Who thinks in terms of alternatives which he develops, examines their feasibility, foresees their consequences and compares them with the course of action taken, to be taken in future and results expected from such a course of action.
(c) A Selector – Who selects from various substitutes and alternatives with a view to attain the set objectives by administering economy at all levels.
(d) A Framer – Who frames policies and programmes and chalks out methods with the help of which the objectives of the enterprise are to be achieved.
This completes the role of management as a planner, who analyses, thinks, selects and prepares a framework for the attainment of pre-determined objectives of the enterprise.
ii. Organising:
Dividing and combing effects of a working force for making such joint efforts more productive, effective and fruitful is termed as organisation.
Management here plays the role of:
(a) An Organiser – Who divides the work into well knitted activities with a view to get the work done and to take best out of the working force to the advantage of the working force itself, the enterprise and the society.
(b) A Definer – Who defines the work, duties, responsibilities and obligations, assigns the task, delegates the authority, establishes co-ordinations and above all sets and defines the mutual relationship.
iii. Motivating:
The inducement to the people to contribute as effectively and efficiently as possible is called motivation. Motivation is defined as a process of stimulus and response.
Management here acts as:
(a) An Inducer – Who induces the people to put their best for achieving the given objectives. He stimulates too and gets response from the working force.
(b) A Communicator – Who communicates between the management and the working force at the lower levels.
(c) A Leader – Who directs, guides, and provides leadership to the working force from where he is to get the work done.
iv. Controlling:
Control is an executive process involving three elements – standards, evaluation and correctives.
Here the management functions in the role of:
(a) A Standard Setter – Who works out a standard and sets it for those who are to work for the enterprise and accomplish the task assigned to them.
(b) An Evaluator – Who evaluates the performance of the working force on the basis of the standard already set for.
(c) A Corrector – Who applies correctives and takes measures to set things right if and when anything goes wrong.
v. Co-Ordinating:
In the words of S. S. Banerjee – “Co-ordination is the integration, synchronisation as orderly pattern of group efforts in the enterprise towards the accomplishment of common objectives.” It is again an executive process.
In the whole management process a co-ordinator functions as:
(a) A Harmoniser – Who harmonises all the activities of a concern in order to facilitate its workings and it success.
(b) An Organiser – Who arranges group efforts and provides unity of action in the pursuit of a common purpose.
(c) A Promoter – Who promotes a unity of purpose for the achievement of the desired results.
(d) A Consolidator – Who consolidates the activities of different parts of an organisation with a view to minimise the friction and maximise the collaborate effectiveness.
Therefore, management process involves – Planning, organising, directing and controlling the efforts of human resource in the use of material resources. Thus, management involves – (i) conceiving, (ii) organising, (iii) initiating, (iv) integrating, and (v) controlling the diverse organisational components and their relationships in order to sustain the viability of the organisation for the achievement of certain goals.
To conclude this definition we can say that a management function is not a separate entity but an integral part of a larger entity, (i.e., management process) made up of various functions which are inter-related and inter-dependent.
4. Management as a Body of Individuals:
“Management is the body or group of people which performs certain managerial functions for the accomplishment of pre-determined goals”.
When one says that management of this company is very efficient, it is implied that the persons who are looking after the affairs of the company are very efficient. These people are individually known as ‘managers’.
In other words – a manager is a person who performs the managerial functions of planning, organising, staffing, directing, and controlling. Since a manager performs the managerial functions, he is a member of the management. Used in this sense, management may be termed as the body of managerial personnel.
Manager by leadership and motivation has to direct, lead and guide all sub-ordinates and get the work done through people. Direction involves managers, managing workers and the work through the means of motivation, proper leadership, effective communication as well as co-ordination.
Manager must develop the ability to command and lead. He must know how to direct others, i.e., how to issue orders and instructions without arousing resentment or offence and he must be able to secure willing obedience from his sub-ordinates, without destroying their initiative and creativity.
The term ‘Leading’ instead of ‘Directing’ reflects the trend of modern management philosophy. The reader should always use leading as the basic management function. Directing connotes autocratic and command management. It is a misfit under democratic managerial leadership. Leading is the art of influencing people, so that they work willingly and enthusiastically in order to achieve group goals.
5. Management as a Discipline:
Management under discipline has been considered both as an Art and a Science. The knowledge, skills, techniques and principles which managers use for managing are broadly referred to as the ‘field’ of management’.
It is regarded as an Art – because the performance of managerial functions requires certain skills which are personal possession.
Management is recognised as a Science – because it has developed certain principles, generalisations and techniques which have more or less universal application.
That is why, it is taught in universities and other institutions as a discipline.
As a Discipline – it consists of a specific body of knowledge which the students of managements study.
Thus, if one says that he is a student of management, it is obvious that he is studying a particular field of learning.
2. Long Essay on Business Management – Features:
Management is a distinct activity having the following characteristics:
1. Distinct Process:
Management is a distinct process consisting of such functions as planning, organizing, staffing, directing and controlling. These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions of their relative significance. In essence, the process of management involves decision-making and putting the decisions into practice.
2. Management is Universal:
Management is universal in character. The principles and techniques of management are equally applicable in the field of business, education, military, government and hospital.
3. Management is Goal Oriented:
Management is purposeful activity. It coordinates the efforts of workers to achieve the goals of the organization. The success of management is measured by the extent to which the organizational goals are achieved.
4. Economic Resource:
Management is one of the factors of production together with land, labour and capital. It is the most critical input in the success of any organized group activity. It is the force which assembles and integrates other resources, namely, labour, capital and materials.
5. Multi-Disciplinary Subject:
Management has grown as a field of study taking the help of so many other disciplines such as Engineering, Anthropology, Sociology and Psychology. Much of the management literature is the result of the association of these disciplines.
6. A Science and an Art:
Management is an organized body of knowledge consisting of well-defined concepts, principles and techniques which have wide applications. So it is treated as a science. The application of these concepts, principles and techniques requires specialized knowledge and skills on the part of the manager.
7. System of Authority:
Management as a team of managers represents a system of authority, a hierarchy of command and control. Managers at different levels possess varying degrees of authority. Generally, as we move down in the managerial hierarchy, the degree of authority gets gradually reduced. Authority enables the managers to perform their functions effectively.
8. Results through Others:
The managers cannot do everything themselves. They must have the necessary ability and skills to get work accomplished through the efforts of others. They must motivate the subordinates for the accomplishment of the tasks assigned to them.
9. Management a Science or an Art:
Whether the management is a science or an art, cannot be satisfactorily answered. There are authors, like Mary Follet, who describe management as an art because management relates to practical application of knowledge and skill as per the needs of a given situation. On the other hand, there are authors, like Luther Gullick, who regard management as a science because management represents a body of well-tested principles which can be universally applied.
Art:
(i) It is descriptive.
(ii) It translates theory into practice.
(iii) It requires personal skill, which differs from individual to individual.
(iv) It is creative, in the sense that it seeks to achieve results by means of adapting, modifying and innovating ideas and techniques.
(v) It requires sound common sense and deep human understanding.
(vi) It requires constant practice to achieve perfection.
Science:
(i) It is definitive.
(ii) It represents a body of knowledge and principles, which can be applied in all situations.
(iii) It requires a scientific enquiry to examine and evaluate all aspects of a given situation.
(iv) It establishes a cause-effect relationship between different factors.
(v) It seeks to predict events on the basis of knowledge of relationships between different factors.
(vi) It prescribes a rigorous control procedure to test the results.
3. Essay on Business Management – Nature:
A controversy has come up for many years over the concept of management. Is it an art, which depends upon skill or is it a science which depends upon analysis.
According to J.Paul Getty – “Management cannot by systematized, or practiced according to a formula. It is an art, even a creative art” others disagree. It is said that – “The management is the oldest of arts and the youngest of sciences.”
1. Management as an Art:
Before we study of management as an art it will be better if we first understand – What is an art? – “Art is the bringing about a desired result through the application of skill.”
It is concerned with the application of knowledge and skills. Every manager has to apply certain knowledge and skills while dealing with the people to achieve the desired results. Management is one of the most “Creative Art” as it requires a vast knowledge and certain innovating, initiating, implementing and integrating skills in relation to goals, resources, techniques and results. Welding and moulding the behaviour of people at work towards achievement of certain goals in a changing environment is an art of the highest order.
It has been propounded that just like leaders, the managers are also born and not made. It is an inherent trait and it cannot be learned through formal training or knowledge of certain techniques. It is similar to being a painter or a poet. You cannot be trained to become a poet.
There have been a number of cases in which some people have become successful managers and entrepreneurs without having been specifically educated for this profession. They have depended upon intuition and experience rather than any formal preparatory education.
According to Jucius and Schlender – “Management was considered a pure art in the United States in the last century.”
As an art – Management calls for a corpus of abilities, intuition and judgment and a continuous practice of management theories and principles. A manager is an artist because he applies the knowledge gained from the study of science of management for managing human and material resources. A person cannot be called a manager if he does not have the skills to apply the knowledge of management.
Thus, managing does involve the use of know-know and skills for the achievement of certain concrete results. Like any art it is creative in the sense that managing creates new situations needed for further improvement.
The contention of management being an art was rejected by scientific management pioneers like Fredrick, W. Taylor, Henry Gautt, Henri Fayol, Frank and Lilian Gilbreths who believed that the management process could be translated into a set of methodologies and techniques which could be learned and communicated. However, the management may be a combination of both art and science elements.
The science and the art of it may not be mutually exclusive. In the opinion of a Russian management expert D. Gvishiani – “The managerial activity will always remain a creative field, a field of art, even though it is becoming more and more scientific.”
2. Management as a Science:
Recently, management has come to be recognised as a science. Previously, the knowledge of the practices of management was not systematically organised, and experience was the only way to acquire the skills of managing.
But now management has been given the shape of an organised body of knowledge by the management practitioners and scholars over a period of years. This organised body of knowledge has its own distinct boundaries and field of activity.
Its study helps in gaining a rational approach to the development of means for accomplishing certain goals. That is why, management is called a science.
What is Science? According to Luther Gullick – “Science is a systematic knowledge which explains the cause and effect phenomenon with underlying principles which have universal application. In this regard, management has developed certain principles, laws and generalizations which are universal in nature and can be applied under similar circumstances of business environment.”
In other words – “Science is a systematically organised body of knowledge based on proper findings and exact principles and is capable of verification. It is a reservoir of fundamental truths and its findings apply safely in all the situations. Any subject which is scientifically developed and consists of universally accepted principles is a science.”
In order to be recognised as a science a subject should have the following characteristics:
(i) It should have a systematic body of knowledge including concepts, principles and theories.
(ii) It should have a method of scientific enquiry.
(iii) It should establish cause and effect relationships.
(iv) Its principles should be verifiable.
(v) It should ensure predictable results.
(vi) It should have universal application.
It can’t be denied that management has a systematised body of knowledge pertaining to its field. But management is not an exact science as other physical science like Astronomy, Physics, Chemistry, Biology etc. The main reason for the inexactness of science of management is that it deals with the people and it is very difficult to predict their behaviour accurately.
Science it is a social process it falls in the area of “Social Sciences.” Management is a Universal Phenomenon, but its theories and principles may produce different results in different situations. Management is a behavioural science. Its principles and theories are situation bound because of which their applicability does not necessarily lead to the same results every time. That is why Ernest Dale has called Management a ‘soft’ science.
Kast, J. and Rosenwig in his book “The Theory of Management of Systems” published in 1962 has opined that “the application of scientific methods to management problems have proved to be effective. Objectives are defined, hypothesis formulated, necessary data collected, analyzed and interpreted, conclusions tested, solutions arrived at and implemented.
Mathematical techniques have been successfully applied in problems involving inventories, service facilities, assignment of jobs to machines for optimal results, optimal allocation of scarce and limited resources to different projects etc.
More important than the scientific methodology in the scientific mind and scientific attitude of the manager. The scientific mind is always accepting challenges, is always investigating and reaching objective conclusions. The scientific attitude is selective, objective and discriminating and it implies creativity.”
3. Management Both Science as well as an Art:
From the above discussion – it can be said that “Management is both a science and an art”.
It is considered a science because it has an organised body of knowledge which contains certain universal truths. It is also called an art because managing requires certain skills which are the personal possession of the managers.
Science teaches one the knowledge about certain things and Art teaches to do certain things by application of knowledge and skills.
For instance – A medical officer acquires the knowledge in chemistry, biology and anatomy, but the knowledge does not make him a good physician. He has to apply his knowledge intelligently. His skill is perceiving how and when to use this knowledge is very important to make him a good physician.
Similarly, a manager to be successful in his profession must acquire the knowledge of science of management. A manager should be an applied scientist. He should possess not only specialised knowledge of management, but also the skill to put his knowledge into practice. Just as a doctor uses his knowledge to a cure his patients, therefore, a manager should use his knowledge to solve the problems of managing men, materials, machines, methods and money.
4. Management as Profession:
Management has recently emerged as a new social institution because of development of business in size and character and because of the emergence of the concept of separate business entity which has already drawn a demarcation line between the ownership and the management.
What is a Profession? – The dictionary defines profession as “calling in which one professes to have acquired a specialised knowledge which is used either in instructing, guiding, or advising others.”
Does management fit closely with this definition? Is the manager in the same category of a profession as a medical doctor, a lawyer or a mechanical engineer? Mary Parker Follet expressed her views in conclusion of her paper. “Management as a profession.”
What does all this imply in regard to the profession of business management? It means that the management personnel are not required to have license like other recognised professionals. As such on legal plane it is not classed as a profession since it is a crucial social activity involving human behaviour and as such it is a profession.
On the basis of general characteristics of a profession, it is said that:
(a) Management is an organised and systematised body of knowledge;
(b) Management requires a formal acquisition of requisite knowledge and skill;
(c) There is a scope of the formation of association for management personnels;
(d) Recently management consultants have grown; and
(e) There is a growing emphasis on a code conduct and ethics for management personnels.
Viewed from the above characteristics, management can be safely classed as a profession. Certainly there is a social recognition to the management as a profession.
5. Attributes of a Profession:
There are three attributes of a profession:
(i) Profession signals as a systematic knowledge.
(ii) Profession gives rise to apprenticeship.
(iii) Profession lays down certain code of conduct and ethics.
(i) A Systematic Knowledge:
Management has passed through an evolutionary stage. Right from the beginning various thinkers, managers and academicians have researched, experimented and tasted the knowledge pertaining to management. They have evolved a discipline in the form of management science.
The theories, principles and concepts so evolved have come to stay as the guiding force to the science of management on the basis of which further addition to the discipline of management is constantly being made. There is no stopping. Constant researches are going on systematically and in an organised manner.
A profession is a systematic corpus of knowledge. Management today, though still in its infancy, has now acquired the status of a science having organised and systematic structure over which a good edifice can easily be erected. This helps in the categorisation of management as a profession.
(ii) An Apprenticeship:
Having established management as an important discipline and classifying it as a profession, the modern thinkers on management having called upon the managing people to go for certain apprenticeship, so as to fruitfully utilise their knowledge with care and efficiency. Proper use of acquired knowledge is learnt. For this training courses are evolved.
Managing people are asked to undergo such training and apprenticeship courses in order to acquire professional habits. To do away with unprofessional conduct, habits and attitudes, one is required to attend such courses before being put to the actual job. Lately, management courses are being organised and social and state recognition is being accorded to such courses. This has further strengthened the case of management and it has, thus acquired the status of a profession.
(iii) A Code of Conduct and Ethical Approach:
Management is a profession. Like any other profession it has also evolved a code of conduct. It also believes in ethical approach to the problems which the management faces from time-to-time. Indian Institute of Personnel Management has given a code of conduct to its personnel managers.
Similarly, every institution frames its own code of conduct which its managers are required to abide by. Unethical conduct and defiance on the part of managers invite strong action. Of late various committees in different organisations – Investigation Committee; Disciplinary Committee; Appeals Committee etc. – have been formed to look into the grievances of those who are the victim of erring managers and also to punish the manager who have gone wrong by flouting the code of conduct prescribed for them.
No profession can survive the wrath of the society and the people responsible to see and maintain the professional ethics if strict adherence to the code is not made a part of discipline, faithfully observed and religiously practiced.
The most important implication of management is the preparation of a code of conduct for all those who are engaged in the profession. This sets morals and ethics for the professionals. It makes the code of conduct binding. It helps in an ethical approach to the problem. Particularly when a profession is new and is in evolutionary, stage, professionalism helps in social recognition of the profession which in any circumstances is a matter of significance.
Management, after being professionalised has become socially responsible. This has helped the management to acquire a new role in the history of industry and trade. As a profession it plays a role of a creator in an economy particularly when it is in a developing stage.
In spite of American Management Association’s assertion of Management as a profession, it falls short of strict disciplinary standards of some other accepted standards. But some of the shortcomings of management as profession, pointed out by Amruie, Ritchey and Hutley in the year 1971 in the book “.
Manufacturing Organization and Management” are as follows:
(1) Skills of management are not fully developed:
Though there are some well-established and universal principles of management, still it has not evolved a complete set of techniques and skills that are universally applicable.
(2) The ethical codes are not as strict as desirable:
Just like medical profession and the legal profession and which has very strict ethical standards for performance, the managers still use high-pressure tactics and unfair competition to increase the market share of their product.
(3) There is no uniform method or technique of entry in the field of management:
Anybody can become a manager. While doctors and engineers have to go through a required course of study and need a license from professional body to practice, no such license from professional body to practice, no such licence is required to become a manager. Accordingly, some managers may have a Master’s degree in Business Administration and others may not have any degree at all and still be able to practice as managers.
(4) Here, the objective is monetary rather than service:
Service to society and humanity is the basic function of a professional and the monetary reward is only secondary.
For Example – a doctor’s objective is to save lives. Management as a profession lacks that service objective with these shortcomings in management as a profession, the fact that managers at local, regional and global levels have their associations for cross-fertilisation of ideas and exchange of experiences, demonstrates beyond doubt their professional attitudes. In fact, their desire to compare experiences with counterparts is a very significant hall mark of a profession.
4. Essay on Business Management – Process/Functions:
Management is a process of achieving organizational goals whereby managers perform various functions to complete the process. What are these functions? Henry Fayol wrote that all managers perform five functions- They plan, organize, command, coordinate, and control. Gullick and Urvik states seven such functions- planning, organizing, staffing, directing, coordinating, reporting and budgeting (POSDCORB).
Newman and summer recognize only four functions, namely, planning, organizing, leading, and controlling. Likewise many management writers have classified management functions in different ways. However, practically they are all the same as the difference lies in the classification only.
For our purposes, we will divide the management functions in four categories:
1. Planning
2. Organising
3. Leading
4. Controlling
1. Planning:
A manager has to decide in advance – what goals/objectives should be achieved, what activities will lead to such objectives, what resources are required to do those activities, how and when those activities should be carried out.
Answering these questions is the planning function. Policies, procedures, targets, budgets, standards etc. are all decided through planning.
2. Organizing:
Organizing is the activity of gathering and arranging the resources (people, money, material, machinery, etc.) to perform the planned activities.
This process produces the basic structure or framework of the organization. The managers must have the ability to determine what type of organization will be needed to accomplish a given set of objectives, what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and at what level decisions are made.
For example- an organization that aims to develop computer software will have to be far different from one that wants to manufacture blue jeans. Producing a standardized product like blue jeans requires efficient assembly-line techniques, whereas writing computer programs requires teams of professionals—systems analysts, software engineers, and operators. Although they must interact effectively, such people cannot be organized on an assembly-line basis.
Staffing, i.e., recruitment, placement and training of qualified personnel to do the organizational work is an important part of organizing.
3. Leading:
The activity of leading involves working directly with people. This function is called by various names: leading, directing, motivating, actuating, and others. But whatever the name used to identify it, this function involves getting the members of the organization to perform in ways that will help it achieve the established objectives.
4. Controlling:
It is the process of ensuring that the activities are being carried out as planned and the activities are leading to the expected results.
The controlling function of management involves three main elements:
1. Establishing standards of performance.
2. Measuring current performance and comparing it against the established standards.
3. Taking action to correct performance that does not meet those standards.
The control function may point out errors that have to be corrected, or the need for altering the plans, or the objectives, etc.
Note that the four functions do not necessarily occur in the sequence presented in our model (except perhaps when a new organization is being formed). In fact, various combinations of these activities are going on simultaneously in every organization.
5. Essay on Business Management – Approaches:
The following approach has been developed by Mr. Romyond G. Leon, an American consultant. These approaches have their own significance and purpose. These are also called as techniques or philosophies or systems of management.
These approaches are as follows:
(a) Management by Objectives (MBO)
(b) Management by System (MBS)
(c) Management by Results (MBR)
(d) Management by Participation (MBP)
(e) Management by Motivation (MBM)
(f) Management by Exception (MBE)
(g) Management by Communication (MBC)
(h) Management by Walking Around (MWA)
Let us discuss one by one:
(a) Management by Objectives (MBO):
The expansions of business in size and changes in technology have necessitated a new thinking in managerial approach. Among new techniques this MBO is one among them. This concept has got an immense popularity in many organizations. Under this technique the management and the employees mutually and friendly identify their objectives and put their all sincere efforts to achieve them.
In this technique the excuses, circumstances, blames and environment have no importance. According to John Humble the management ask you to fix your own objectives and be responsible for achieving your own selected objectives.
“A comprehensive managerial system that integrates many key managerial activities in a systematic manner and that is consciously directed towards the effective and efficient achievement of organizational and individual objectives.” Heinz Weiherich and Harold Knootz
(b) Management by System (MBS):
This approach concentrates on well-defined policies, rules and regulations. It means the success of an organization depends upon the quality of its planning, rules, regulations, policies, procedure and system. All these should be prepared through proper participation and should be beneficial both to the management and the others. It is a scientific and systematic approach. The system, methods and procedure should be revised, reviewed and designed periodically whenever necessary arises.
(c) Management by Result (MBR):
It is also called ‘Task management.’ This approach only concentrates on result contributed by employees and their concerned departments. This approach suggests that the confirmations, promotions and appreciations should be done on only ones results and contributions. Under this technique the results are compared constantly the actual performance with the standard performance.
This approach has given rise to the pay- performance now-a- days i.e., draw salary by showing your result/performance. If performance is higher it leads to higher salary and vice versa. In the corporate sectors the workers are appointed purely on contract basis for one year and the contract will be renewed next year only on the basis of his performance.
(d) Management by Participations (MBP):
Under this approach management and workers thinks together, work together, share together, enjoy together and if any loss they suffer together. Under this approach the ego need of an employee is satisfied because here an employee is consulted and recognized. This approach is the best example for industrial democracy since the management works for the workers, by the workers and to the workers. Under this approach management and workers are complementary and supplementary to each other.
(e) Management by Motivation (MBM):
In organization manager’s responsibility is to get the things done through the people. So a manager must know what motivates his workers in order to make each individual employee performs to the best of his ability. Thus it is the manager’s task to see that his sub-ordinates work efficiently and produce results that are beneficial to the organization. The ‘capacity to work’ and ‘willingness to work’ is two different things.
A man can be physically, mentally and technically fit to work but he may not be willing to work. Thus, here arises the need of motivation. Motivating a worker is to create a need and a desire on the part of a worker to better his performance. This approach is a trouble free management showing always encouraging results in the organization.
(f) Management by Exception (MBE):
Under this technique the management would be consulted in very rare and exceptional circumstances. All routine activities have to be done by the subordinates themselves. Generally under this approach sub-ordinates will not frequently consult the management and similarly management will also not interfere in the matters of sub-ordinates. Leadership is only provided when demanded and workers are asked only in emergency or during crisis or in case of heavy variations. This approach works on the caption “who leads the least, lead the best”.
(g) Management by Communication (MBC):
Communication is an important aspect in the process of management. No manager can be successful without communicating effectively with his superiors, peers, sub-ordinates and outsiders. Indeed, managers are able to carry out all their functions only by interacting and communicating with others. Good communication makes employees happier in the organization. It brings good co-ordination and co-operation and industrial peace. Thus, this approach concentrates much on this communication.
(h) Management by Walking Around (MWA):
This approach emphasis that a manager should visit frequently to the departments, workshops and other common places in his organization. These visits make a manager to know the problems of his employees and also he can understand them well. Manager has to see and understand the things and then he should take decisions but he should not take decisions by listening others in the organization. He should not encourage others to poison his ears against others in the organization.
6. Essay on Business Management – Objectives of Management – What should Management do?
(i) Achieving Maximum Output with Minimum Efforts:
This is the most important objective of management. Management has to continuously strive to ensure maximum results in terms of desired output, to be achieved with minimum efforts & resources.
(ii) Optimum Utilisation of Resources:
A successful management is not only effective in achieving the goals, but also efficient in utilizing the resources of an organization. Optimum utilization thus means to find ways for utilization of various factors of production and human, material & financial resources in such a manner that results in reduction of costs and saves time, effort and money, which are essential factors for the growth & prosperity of the enterprise.
(iii) Maximum Prosperity:
The efficient functioning of the enterprise by management leads to providing maximum benefits to every stakeholder to the organization i.e. employer, employee, suppliers and customers and Society at large. Prosperity is attained through higher profits for the employer and good working conditions, suitable wage system, incentive plans for the employees.
(iv) Human Betterment & Social Justice:
The prosperity achieved through efficient management results in increased productivity & employment, Management provides for better standards of living for the society. Through its uniform and unbiased policies, management provides balance and justice. Hence management serves as a tool for the upliftment as well as betterment of the society.
(v) Management is a Universal Activity:
Managing involves getting things done through and with the people. Management means getting things done skilfully from others. Managers perform the same functions irrespective of their place in the organization structure or the type of enterprise in which they are engaged. Therefore, the techniques and tools of management are universally applicable.
7. Essay on Business Management – Tasks:
For an institution to work effectively and achieve its goals, Peter F. Drucker defined three important tasks that management should perform:
1. The precise purpose and objective of the organisation whether business or a non- business enterprise;
2. Making work productive and the worker possessing a sense of achievement;
3. Managing social impacts and social responsibilities.
1. Purpose and Objectives of the Organisation:
Every institution, business or non-business exists for a specific purpose. A business institution exists to achieve economic results, e.g., profits or surplus (excess of revenue over cost) and non-business institution exists to accomplish its non-economic goals. Their basic purpose is social tasks, e.g., education or health care.
The term, business management, deals with the accomplishment of business goals, i.e., the economic goals. The presence of management in any institution can be felt only if the objective of profit maximization, or as modern financial managers put it, wealth maximization is achieved. The institution must achieve its economic goals and provide quality products to consumers at the right price.
2. Making Work Productive and the Worker Possessing a Sense of Achievement:
An institution is efficient if it makes its work productive. It implies efficient conversion of inputs (materials) into outputs (goods and services). The basic force that helps in conversion is the human factor. Without human resource, inputs would remain as inputs only. Development cannot be achieved, whatever be the available resources, unless human force acts upon it. It is, thus, an important task of management to make work productive by making the human resource productive.
The human element is required in the institution not only to achieve the organizational goals but also to provide a sense of accomplishment to workers. Workers join an organisation to earn a living and also to achieve some status in society. This is reflected in worker achievement. Making the worker achieving implies “consideration of human being as an organism having peculiar physiological and psychological properties, abilities and limitations and a distinct mode of action.”
It is, thus, an important task of the manager to see that within the physical and mental abilities and limitations, people achieve satisfaction out of their jobs.
3. Social Responsibilities:
The business enterprise or a non-business enterprise does not operate in isolation. Though it provides a means of living to workers and gives them social status in the society, it is also answerable to other sections of the society i.e., consumers (by providing quality goods and services), Government (by paying taxes regularly), general community (by taking care of environment protection) and shareholders (by regularly paying dividends). Though profit or wealth maximization is the main objective of an enterprise, social responsibilities are also important for its survival.
8. Essay on Business Management – Functional Areas:
The scope of management is very wide.
The various functional areas of management may be classified into the following categories:
1. Production Management:
It is the management of production so as to produce the right goods, in right quantity, at the right time and at the right cost.
It consists of the following activities:
(a) Designing the product
(b) Location and layout of plant and buildings
(c) Operation of purchase and storage of materials
(d) Planning and control of factory operations
(e) Repairs and maintenance
(f) Inventory control and quality control and
(g) Research and development etc.
2. Marketing Management:
It refers to the identification of consumer’s needs and supplying them the goods and services which can satisfy those wants.
It involves the following activities:
(a) Marketing research to determine the needs,
(b) Planning and developing suitable goods,
(c) Setting appropriate prices,
(d) Selecting the right channel,
(e) Promotional activities.
3. Financial Management:
Financial management is concerned with the managerial activities pertaining Principles of Management to the procurement and utilization of funds for the business.
The main functions include:
(a) Estimating the volume of funds required for both long term and short term needs of business,
(b) Selecting the appropriate sources of funds,
(c) Raising the required funds at the right time,
(d) Ensuring the proper utilization and allocation of raised funds so as to maintain safety and liquidity of funds and credit worthiness and profitability of business and
(e) Administration of earnings.
4. Personnel Management:
Personnel management involves planning, organizing, directing and controlling the procurement, development, compensation, maintenance, etc., of the human resources in an enterprise.
It consists of the following activities:
(a) Man power planning,
(b) Recruitment,
(c) Selection,
(d) Training and development,
(e) Appraisal,
(f) Compensation and promotion,
(g) Employee services and benefits and
(i) Personnel records and research, etc.
5. Office Management:
Office management is the technique of planning, coordinating and controlling office activities with a view to achieve common business objectives. One of the functions of management is to organize the office work in such a way that it helps the management in attaining its goals. It works as a service department for the other departments. The efficiency of the administration depends upon the information supplied to it by the office procedures etc.
6. Research and Development Management:
This is very important aspect in the process of management. This concentrates to develop the business activities by adopting the scientific investigation, innovation, research and development, in the present technological era this research and development is inevitable. The quality of research will decide the expansion, development and diversification of the organization.
7. Maintenance Management:
This includes the proper maintenance of buildings, plant and machinery of the organization so that activities of that organization may go on without any interruption.
Thus, the scope of management is very wide. At present many new innovation branches of management has developed such as – Cost Management, Sales Promotion Management, Hotel Management, knowledge Management, Strategic Management, Stress Management, Bank Management, Publicity and Advertisement Management, Public Relations Management, Portfolio Management, Insurance Management, Forex Management, Investment Management and so on.
9. Essay on Business Management – Importance:
Management is indispensable for the successful functioning of every organization. It is all the more important in business enterprises. No business runs on itself, even on momentum. Every business needs repeated stimulus, which can only be provided by management.
The importance of management can be explained more clearly from the following points:
1. Reduces Costs:
To secure efficiency of operations, management is concerned with reducing costs of production and increasing the output. Through better planning, organizing and control, and the use of various cost reduction techniques, efficient management leads to reduced costs and increased output.
2. Establishes a Sound Organization:
Management lays down a pattern of authority- responsibility relationship. The structure so formed shows the various inter-related positions for which the right type of persons with right qualifications and training are selected.
3. Maintains Equilibrium:
Management helps an organization to survive in its dynamic environment. Good management enables an enterprise to adjust to the complex and ever- changing external environment. Thus, management is responsible for the survival and stable growth of an organization.
4. Generation of Employment:
By setting up and expanding business enterprises, managers create jobs for the people. People earn their livelihood by working in these organizations. Managers also create such an environment that people working in enterprises can get job satisfaction and happiness.
5. Essential for Prosperity of the Society:
Efficiency of management leads to greater and more economical production for the society. Through increased welfare activities, it improves the standard of living of the people.
6. Management Creates Social Responsibilities:
Managers today are not only responsible towards their bosses alone but they have an equal and foremost responsibility towards the society. It is important that the consumer gets the right product at the right time, the rules of society are adhered to, government is given adequate support and society gets new employment opportunities. Efficient management is required to fulfill all these social responsibilities.
7. Development of the Nation:
Efficient management is equally important at the national level. Management is the most crucial factor in economic and social development. The development of a country largely depends on the quality of the management of its resources.
10. Essay on Business Management – Levels:
Managers perform various managerial (planning, organising, staffing, directing and controlling) and operative (production, personnel, finance and marketing) functions. Depending on the activities performed by managers, they can be classified on the basis of levels. The levels create a hierarchy or scalar chain in the organisation structure.
The levels of management differentiate different managerial positions in an organisation. With growth in size of the organisation and increase in the number of employees, there is increase in the number of levels of the organisation and vice versa.
According to levels, managers (and, accordingly management) can be classified as follows:
1. Top level managers or Top management
2. Middle level managers or Middle management
3. Lower level managers or Lower management.
This distinction is based on authority, responsibility and nature of functions performed by managers.
1. Top Management:
Top management consists of managers who work at the highest level of the organisational hierarchy. The number of managers in this group is generally the least. It is responsible for the overall management of the organisation. Managers in this level are generally ‘chief executive officers’, ‘president’, ‘vice-president’, ‘General Manager’, ‘managing director’ etc. though the exact title varies from organisation to organization.
2. Middle Management:
Middle management consists of managers who are the departmental heads. They serve as a link between top-level and lower-level managers. It implements the organisational goals and plans according to directions of the top management. They act as mediator between top and lower-levels management by clarifying and explaining policies from top to lower-levels and communicate reports from lower-level to the top-level management.
It also boosts the lower-level managers for better performance and trains the lower-level managers. Middle-level managers bridge the gap between two. It removes misunderstanding and creates cordial relationships amongst the top and lower levels of management. The organisation is divided into different departments and middle level managers act as heads of their respective departments. They are the ‘departmental managers’, ‘plant managers’, ‘ assistant managers’ etc., the exact title, however, differs from organisation to organisation.
The heads of the various departments receive orders from the top level managers and they pass it to their subordinates (lower-level managers). They supervise, direct and control the activities of foremen, inspectors and supervisors. The middle-level management is answerable to the top level management for functioning of their departments. A large sized organisation has a fairly large number of middle-level managers.
3. Lower Management:
It is also called as operational level management. It consists of first-line managers or supervisors. They serve as a link between middle-level managers and non- managerial employees. They supervise the activities of non-managerial employees and co-ordinate their work with those operating at higher levels of hierarchy. They train the workers, look after their problems and try to solve them.
They operate as the last level of management. These managers are ‘foremen’, ‘supervisors’, ‘office managers’, ‘operating managers’, superintendents, etc. They may be technical supervisors, production supervisors, financial supervisors or marketing supervisors. An organisation has the largest number of managers at the lower-level.