The below mentioned article will help you to prepare a project report on Management:- 1. Origin of Management 2. Meaning, Concept and Definition of Management 3. Characteristics 4. Objectives 5. Importance 6. Principles 7. Types 8. Functions 9. Levels.
Contents:
- Project Report on the Origin of Management
- Project Report on the Meaning, Concept and Definition of Management
- Project Report on the Characteristics of Management
- Project Report on the Objectives of Management
- Project Report on the Importance of Management
- Project Report on the Principles of Management
- Project Report on the Types of Management
- Project Report on the Functions of Management
- Project Report on the Levels of Management
Project Report # 1. Origin of Management:
In more recent centuries:
1591:
Recognition of the principle of overhead and establishment charges.
1682:
Standard practice Institutions
Stock control
Expense control
Job specifications
Instructions for packing for shipment
Instructions for time keeping
Material specifications.
1710:
Employee welfare Pension plan Industrial physician.
1776:
Statement of the principle of the division of labour.
1795:
Example of costing each product and the use of department profit and loss accounts.
1832:
Suggestion that Industrial Management was a matter of general principles
Analysis of process costs
Suggestion of time study
1800-1848:
Production planning
Standardization of parts
Welfare of workers etc.
Project Report # 2. Meaning, Concept and Definition of Management:
The term management has been used in different senses. Sometimes it is used to manage the group of managerial personnel in an organization. At other times, it refers to the process of planning, organizing, staffing directing, coordinating and controlling. It may be referred to as a body of knowledge, discipline and practice.
People describe it as a technique of leadership and decision making or a means of coordinating while some others have analysed management as an economic resource, a factor of production or a system of authority.
The meaning of management according to Haimann is clear from Fig. 8.6. The Fig. 8.7 gives a graphic presentation of the generalised definition of management and the concept of management is clear from Fig. 8.8.
Definition of Management:
Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.
This basic definition needs to be expanded:
1. As managers, people carry out the managerial functions of planning, organizing, staffing, leading, and controlling.
2. Management applies to any kind of organization.
3. It applies to managers at all organizational levels.
4. The aim of all managers is the same to create a surplus.
5. Managing is concerned with productivity this implies effectiveness and efficiency.
Project Report # 3. Characteristics of Management:
Each definition of management lays emphasis on particular aspect of it there by presenting only a partial view of the total concept of management. An analysis of this definition reveals the following important characteristics of management.
(i) Management is a Group Activity:
Management is an essential part of a group activity. As no individual can satisfy all his desires himself, he group with his fellow-beings and works in an organized way in order to achieve what he cannot achieve individually.
Wherever, there is an organized group of people working towards a common objective, some form of management becomes essential. Management makes the people realise the objective of the group and directs their efforts towards the achievement of these objectives.
(ii) Management is Goal-Oriented:
Management aims to achieve economic and social objectives. It works to achieve some definite objectives. Group efforts in management are always directed towards the achievement of some pre-determined aims. It is concerned with the achievement of objectives. Haynes and Massie are of the view that without objective, management would be difficult, if not impossible.
(iii) Management is a Factor of Production:
Management is not an end in itself but a means to achieve the group objectives. Just as land, labour and capital are factors of production and are essential for the production of goods/products and services, management is another factor of production that is must to co-ordinate and correlate the other factors of production for the accomplishment of pre-determined goals.
(iv) Management is Universal in Character:
Wherever, human activity, is involved there is management. The basic principles of management are of universal nature and can be applied in all organizations whether they are business, social, religious. Cultural affairs, sports, educational or military activities.
According to Socrates, “Over whatever a man may preside, he will be a good president if he knows what he needs and is able to provide it whether he has the direction of a chorus, a family, a city or an army.” Thus it is universal in character.
(v) Management is needed at all Levels of the Organization:
Another important feature of management is that it is required at all levels of a organization, e.g., top level, middle level and supervisory level. The only difference lies in the nature of job and the scope of authority. The lowest level supervisor has also to work as decision-maker just as the chief executive in the organization.
(vi) Management is a Distinct Process:
“Management is a distinct process or procedure performed to determine and achieve stated objectives by the utilization of manpower and other resources.” It is different from the activities, techniques and procedures.
The process of management is composed of functions like planning, organizing, staffing, directing, coordinating and regulated in order to achieve the desired objectives. It is in this way management is regarded as a social process. Moreover, management has a social obligation to obtain optimum utilization of scarce resources for the benefit of the community as a whole.
(vii) Management is a Social Process:
Management consists of achieving things through others. This involves dealing with manpower. The efforts of the manpower have to be directed, coordinated and regulated by management in order to achieve the desired objectives.
It is in this way management is regarded as a social process. Moreover, management has a social obligation to obtain optimum utilization of scarce resources for the benefit of the community as a whole.
(viii) Management is a System of Authority:
Because management is a process of directing man power to perform tasks, authority to get the work done from others as implied in the very concept of management. Authority is the power to successfully get the work from others and to compel them to work in a certain manner. Management cannot work in the absence of authority.
In real sense, management is rule-making and rule-enforcing agency. There is a chain of authority and responsibility among people working at various levels of the organization. There cannot be an efficient management without well-defined lines of command at the various levels of decision making.
(ix) Management is a Dynamic Function:
Management is a dynamic function and it has to be performed continuously. It is constantly engaged in the moulding of the enterprise in an ever-changing business environment. If is related not only with moulding of the industry/organization but also the alteration of environment itself so as to ensure the success of the enterprise. In real sense, it is never-ending function/process.
(x) Management is an Art as well as a Science:
Management is a science because it has developed certain principles which are of universal application. But the results of management depend upon the personal skill of managers and in this sense management may be considered an art.
This art of the manager is essential to make the best use of management science. Thus, management is both science and art. It is still in the evolutionary stage, may be considered as an inexact science or social science.
(xi) Management is a Profession:
Presently management is recognised as a profession. Now with the advent of large-scale business, the management is entrusted in the hands of professional managers.
(xii) Management is Intangible:
Management is intangible i.e. it can be felt in the form of results and not seen. For example, when we are unable to produce the desired, quality & quantity of product we say it is the result of poor management.
Project Report # 4. Objectives of Management:
The primary objective of management is to run the enterprise smoothly.
The profit making objective of a business is also to be kept in mind while organization of various functions is taken under consideration Following are the broad objectives of management:
(i) Proper Utilisation of Resources:
The main objective of management is to utilize the various resources of the enterprise in a most economic way. The proper use of men, materials, machines and money will help a business to earn sufficient profits to satisfy various interests.
The proprietors would like more returns on their investments while employees, customers and public will expect a fair deal from the management. All these interests will be met only when physical resources of the business are properly utilised.
(ii) Improving Performance:
Management should aim at improving the performance of each and every factor of production. The environment should be so congenial that workers are able to perform in such a way as to give their maximum to the enterprise. The fixing of objectives of various factors governing production will help them in improving their performance.
(iii) Mobilising Best Talent:
The management should try to employ persons in various fields so that better results are obtainable. The employment of specialists in various fields and at different levels will be increasing the efficiency of various factors of production.
There should be a proper working environment which should encourage good persons to join the enterprise. The better pay scales, proper amenities, future growth prospectus will attract more people in joining a concern/unit.
(iv) Planning for Future:
Another important objective of management is to prepare plan. No management should feel satisfied with present work if it has not thought of future. Future plans should take into consideration what is to be done next. Future performance will depend upon planning. So, planning for future is essential to help the enterprise.
Project Report # 5. Importance of Management:
(i) Truly speaking, no enterprise can survive without management, even if it possesses huge money, excellent machinery and expert man-power, because without management, it will be all confusion and nobody will know what to do and when to do.
It is management which guides and controls the activities of man-power for the optimum utilisation of company resources, such as men, materials, money, machines, methods etc.
(ii) Management creates a vital, dynamic and life giving force to the enterprise.
(iii) Management coordinates activities of different departments in an enterprise and establishes team-spirit among the persons.
(iv) Management provides new ideas and vision to the organisation to do better.
(v) Management tackles business problems and provides a tool for the best way of doing things.
(vi) Management only can meet the challenge of change.
(vii) Management provides stability to the enterprise by changing and modifying the resources in accordance with the changing environment of the society.
(viii) Management helps personality development thereby raising efficiency and productivity.
Project Report # 6. Principles of Management:
‘Principles of Management’ implies a list of current management practices. Though F. W. Taylor developed principles of management, credit goes to Henri Fayol, a French management theorist for advocating and publicizing certain principles (or laws) for the soundness and good working of the management.
Henri Fayol warned that the principles of management should be:
(i) Flexible and not absolute-must be usable regardless of changing conditions,
(ii) Used with intelligence and with a sense of proportion, etc.
Henri Fayol listed 14 principles that grew out of his experience; they are briefed as under:
(i) Division of Work (or Labour):
Division of work means dividing the work on the principle that different workers (and different places) are best fitted for different jobs (or things) depending upon influences arising from geography, natural conditions, personal aptitude and skills. Division of work leads to specialization. Concept of division of labour can be applied to all kinds of work, managerial as well as technical.
Advantages of Division of labour:
Since the same worker does the same work repeatedly.
(i) He gains proficiency and skill on the jobs,
(ii) Rate of production increases,
(iii) Product quality improves, and
(iv) He is in a position to suggest changes in products, processing or methods of doing that work.
Disadvantages of Division of Labour:
(i) Division of labour gives rise to loss of craftsmanship; workers become machine-minders and no more.
(ii) With the passage of time, the same job becomes dull and monotonous.
(iii) Workers do not remain all-round and one cannot work in place of another if he is absent.
(ii) Authority and Responsibility:
Authority and responsibility should go together, hand-in-hand and must be related. An executive can do justice with his responsibility only when he has the proper authority. Responsibility without Authority or vice versa is meaningless.
(iii) Discipline:
Discipline is absolutely necessary for efficient functioning of all enterprises. Discipline may be described as -respect for agreements that are directed at achieving obedience, application, and the outward marks of respect.
(iv) Unity of Command:
Unity of command means, employees should receive orders and instructions from one boss (or supervisor) only. In other words a worker should not be under the control of more than one supervisors. Unity of command avoids confusion, mistakes and delays in getting the work done.
(v) Unity of Direction:
It is a broader concept than the unity of command. Unlike unity of command which concerns itself with the personnel, unity of direction deals with the functioning of the body corporate. Unity of direction implies that there should be one plan and one head for each group of activities having the same objective. In other words, there should be one common plan for an enterprise as a whole.
(vi) Subordination of Individual to General Interest:
The interests of an individual person should not be permitted to supersede or prevail upon the general interests of the enterprise. This is necessary to maintain unity and to avoid friction among the employees.
(vii) Remuneration:
Remuneration is the price paid to the employees for the services rendered by them for the enterprise. Remuneration should
(i) Be fair, and
(ii) Bring maximum satisfaction to both employees and the employer.
(viii) Centralisation of Authority:
Centralisation of authority means that the authority is in the hands of center, i.e., the authority is not dispersed among different sections. In a business organisation, authority should be centralised only to that degree or extent which is essential for the best overall performance. The degree of centralization is decided by keeping in view the nature, size and complexity of the (business) enterprise.
(ix) Scalar Chain:
Managers may be regarded as a chain of superiors. There should be an unbroken line of authority and command through all levels from the highest (i.e., general manager) to the lowest ranks (employee). The chain of superiors should be short-circuited, when following it strictly will be detrimental to performance.
(x) Order:
This promotes the idea that everything (e.g., materials) and everyone (human being) has his place in the organisation. Materials and human beings should be arranged such that right material (thing)/person is in the right place.
(xi) Equity of Treatment:
Manager should have fairness in treatment for all his subordinates. Manager should deal with his subordinates with kindness and justice. This will make employees more loyal and devoted towards the management/enterprise.
(xii) Stability:
Stable and secure work force is an asset to the enterprise, because unnecessary labour turnover is costly:
An average employee who stays with the concern is much better than outstanding employees who merely come and go. Instability is the result of bad management.
(xiii) Initiative:
Initiative is one of the keenest satisfactions for an intelligent employee. Managers should sacrifice their personal vanity in order to permit their subordinates to exercise their own initiative. A manager should encourage his subordinates to take initiative.
(xiv) Esprit de Corps:
This principle of management emphasizes the need for teamwork (harmony, and proper understanding) among the employees and shows the importance of communications in obtaining such team-work.
Principle of Exception:
The distinguishing features of this approach are frequent measurement and evaluation of actual progress and comparison with the appropriate target figures. Management is called upon to make a decision on future action only if this comparison reveals an actual or expected divergence or variance. According to principle of exception, one reports only those things and at that time when they (things) require an action by the management. It is assumed that unreported events are going as per the schedule.
In practice, then, control by exception means, comparing:
(a) Actual performance with expected performance and
(b) Actual costs with target costs, in such a way that suitable corrective action can be taken if things go wrong.
The principle of exception consists of a number of related parts which may be summarised as follows:-
(a) Each person performs the work allotted to him in the prescribed manner without infringement on the work of others.
(b) The work is carried out with minimum amount of instruction and supervision. As a corollary of this, a subordinate should only consult his superior when there are unusual occurrences or emergencies.
(c) Matters which are not proceeding according to plan are reported upon so that corrective action can be taken. This allows managers to concentrate on important matters and disregard any others.
Control by exception depends for its effectiveness upon a number of factors, for example:
(1) The validity of the target figures.
(2) Both targets and actual results must be linked with managerial responsibilities—otherwise it will be difficult to make corrective action effective.
(3) Control reports must be issued sufficiently quickly and frequently to enable corrective action to be taken before it is too late.
Project Report # 7. Types of Management:
(i) Development Management:
It includes research into materials, machines, processes, etc.
(ii) Distribution Management:
It includes marketing, merchandising, advertising, sales, etc.
(iii) Financial Management:
It includes economic forecasting, costing, accounting, budgetary control, insurance and actuarial work, etc.
(iv) Maintenance Management:
It includes upkeep of buildings, equipment, estate work, etc.
(v) Purchase Management:
It includes tendering, buying, contract work, store keeping, store and stock control.
(vi) Production Management:
It includes work analysis, planning, scheduling, routing, quality control and work study.
(vii) Transport Management:
It includes transportation by rail, road, air and water, packing, warehousing, etc.
(viii) Personnel Management:
It includes employee selection, placement, training, transfer, promotion, discharge, industrial relations, safety, health and welfare services, etc.
(ix) Office Management:
It includes planning and control of offices, keeping records, etc.
Project Report # 8. Functions of Management:
One way to look at the process of management is to identify the (basic) functions which together make up the process. Since some functions are basic to managerial activities at all levels from the foreman to the manager, they are applicable to all business enterprises.
Though Fayol, Urwick, Davis, Koontz and O’Donnel have specified different number of management functions, the author feels that the following eight functions may be used to describe the job of management:
(i) Forecasting.
(ii) Planning.
(iii) Organising.
(iv) Staffing.
(v) Directing – (a) Leadership, (b) Communication, (c) Motivation and (d) Supervision
(vi) Coordinating.
(vii) Controlling.
(viii) Decision making.
The above list of the functions of management is a useful analytical device for stressing the basic elements inherent in the job of management.
(i) Forecasting:
Forecasting is a necessary preliminary to planning. Forecasting estimates the future work or what should be done in future; may be as regards Sales or Production or any other aspect of business activities. Forecasting begins with the sales forecast and is followed by production forecast and forecasts for costs, finance, purchase, profit or loss, etc.
(ii) Planning:
Planning all aspects of production, selling, etc., are essential in order to minimise intangibles. Planning is a process by which a manager anticipates the future and discovers alternative courses of action open to him. Planning is a rational, economic, systematic way of making decisions today which will affect the future e.g., what will be done in future, who will do it and where it will be done.
In fact, every managerial act, whether it be mental or physical, is inexorably intertwined with planning. Without proper planning, the activities of an enterprise may become confused, haphazard and ineffective; for example if a refrigerator making concern does not plan in advance—how many refrigerators and of what capacities are to be made before the summer starts and thus it does not procure necessary material, tools, supplies and personnel in time, it cannot reach the production targets and hence may not run profitably. Prior planning is very essential for utilizing the available facilities (men, materials, machines etc.) to the best of advantage.
(iii) Organising:
Organising is the process by which the structure and allocation of jobs is determined. Organising involves determining activities required to achieve the established company objectives, grouping these activities in a logical basis for handling by subordinate (persons), managers, and finally, assigning persons to the job designed.
In carrying out the above, the manager will delegate necessary authority to his subordinates (persons) and they, in turn, will take the necessary responsibility. Organising means, organising people, materials, jobs, time etc., and establishing a framework in which responsibilities are defined and authorities are laid down.
(iv) Staffing:
Staffing is the process by which managers select, train, promote and retire their subordinates. Staffing involves the developing and placing of qualified people in the various jobs in the organisation. Staffing is a continuous process. The aim is to have appropriate persons to move into vacated positions or positions newly created in the enterprise.
(v) Directing:
Directing is the process by which actual performance of subordinates is guided towards common goals of the enterprise. Directing involves motivating, guiding and supervising subordinates towards company objectives.
Directing thus includes:
(i) Giving instructions to subordinates.
(ii) Guiding the subordinates to do the work.
(iii) Supervising the subordinates to make certain that the work done by them is as per the plans established.
Directing involves functions such as:
(a) Leadership,
(b) Communication,
(c) Motivation, and
(d) Supervision.
(a) Leadership:
Leadership is the quality of the behaviour of the persons (Managers) whereby they inspire confidence and trust in their subordinates, get maximum cooperation from them and guide their activities in organized effort. Leadership is more than personal ability and skill.
(b) Communication:
Communicating is the process by which ideas are transmitted, received and understood by others for the purpose of effecting desired results. Communication may be verbal or written orders, reports, instruction, etc. A manager communicates to his subordinates as what they should do. An ineffective communication leads to confusion, misunderstanding, dissatisfaction and sometimes even strikes.
(c) Motivation:
Motivating means inspiring the subordinates to do a work or to achieve company objectives effectively and efficiently.
(d) Supervision:
Supervision is necessary in order to ensure:
(i) That the work is going on as per the plan established, and
(ii) That the workers are doing as they were directed to do.
(vi) Coordinating:
Coordinating means achieving harmony of individual effort towards the accomplishment of company objectives. In other words, the dovetailing and harmonising of all the company assets and employees into a coherent whole is known as coordination. Ineffective coordination between different functions of a business enterprise (such as production, sales, administration, etc.) can ruin the enterprise.
Coordination involves making plans that coordinate the activities of subordinates, regulate their activities on the job and regulate their communications. Besides other factors, informal relationships within an organization also tend to facilitate coordination, because workers who like each other outside the factory, prefer to work together on the job also.
(vii) Controlling:
Controlling is the process that measures current performance and guides it towards some predetermined goal.
Controlling involves:
(i) The monitoring of programme activities to make sure that end objectives are being met.
(ii) The initiation of corrective action as required to over-come problems, if any, hindering the accomplishment of objectives.
Checks and examinations are required on a periodic basis to ensure that the things are proceeding as per plans established. Controlling is necessary to ensure that orders are not misunderstood, rules are not violated and objectives have not been unknowingly shifted. Control means control of persons and other things. Controlling is a continuous process which measures the progress of operations, (compares) verifies their conformity with the predetermined plan and takes corrective action, if required.
As explained above, controlling, process:
(i) Sets standards,
(ii) Measures job performance, and
(iii) Takes corrective action, if required.
(viii) Decision Making:
Decision making is the process by which a course of action is consciously chosen from available alternatives for the purpose of achieving desired results. An outstanding quality of a successful manager is his ability to make sound and logical decisions. Management decisions range from establishing consumer operational development needs to the selection of a preferred system design configuration to many other aspects of a business enterprise.
Project Report # 9. Levels of Management:
Management/Industrial Management has got the following activity levels:
(i) Top Management.
(ii) Upper Middle Management.
(iii) Middle Management.
(iv) Lower Management (Foremen etc.)
(v) Operating force or Rank and File workman.
(i) Top Management:
-Top Management includes:
(a) Board of Directors.
(b) Managing Directors.
(c) Chief Executives.
(d) General Managers.
(e) Owners.
(f) Share-holders/Financiers.
Top Management Functions are:
(a) Setting basic goals and objectives.
(b) Expanding or contracting activities.
(c) Establishing policies.
(d) Monitoring performance.
(e) Designing/Redesigning organization system.
(f) Shouldering financial responsibilities, etc.
(ii) Upper Middle Management:
Upper Middle Management Includes:
(a) Sales executive (Manager).
(b) Production executive.
(c) Finance executive.
(d) Accounts executive.
(e) R & D executive.
Upper Middle Management Functions are:
(a) Establishment of the organization.
(b) Selection of staff for lower levels of management.
(c) Installing different departments.
(d) Designing operating policies and routines.
(e) Assigning duties to their subordinates, etc.
(iii) Middle Management:
Middle Management includes:
(a) Superintendents.
(b) Branch Managers.
(c) General Foremen, etc.
Middle Management Functions are:
(a) To cooperate to run organization smoothly.
(b) To understand interlocking of departments in major policies.
(c) To achieve coordination between different parts of the organization.
(d) To conduct training for employee development.
(e) To build an efficient company team spirit.
(iv) Lower Management:
Lower Management includes:
(a) Foremen.
(b) Supervisors or charge-hands.
(c) Office superintendent.
(d) Inspectors, etc.
Lower Management Functions are:
(a) Direct supervision of workers and their work.
(b) Developing and improving work methods and operations.
(c) Inspection function.
(d) Imparting instructions to workers.
(e) To give finishing touch to the plans and policies of top management.
(f) To act as a link between top management and the operating force (i.e., workers).
(g) To communicate the feelings of workers to the top management.
(v) Operating Force:
Operating Force includes:
(a) Workers, rank and file workman, skilled, semi-skilled and unskilled.
Operating Force Functions are:
(a) To do work on machines or manually, using tools, etc.
(b) To work independently (in case of skilled worker) or under the guidance of supervisor.