Management
Overview
Management, in its most fundamental form, involves the coordination of human, financial, and material resources to achieve organizational objectives. The term "management" is derived from the Italian word "maneggiare" (to handle) and the French word "mesnagement" (the art of conducting, directing). It is a broad discipline that encompasses a range of activities such as strategic planning, organizing, directing, and controlling.
History of Management
The concept of management has been present in human societies for millennia. Ancient civilizations such as the Egyptians and Romans utilized complex organizational structures to manage large scale projects like the construction of the pyramids and the Roman aqueducts. However, the formal study and practice of management as we know it today began during the Industrial Revolution in the late 18th century.
Management Theories
Numerous theories have been proposed to explain and guide management practices. Some of the most influential include the classical management theory, human relations theory, systems theory, contingency theory, and the modern management theory.
Classical Management Theory
The classical management theory, developed during the Industrial Revolution when new problems related to the factory system began to appear. Advocates for this approach such as Frederick Taylor, Henri Fayol, and Max Weber sought to establish a set of universal principles for management to increase productivity.
Human Relations Theory
The human relations theory of management emphasizes the importance of the workforce and the value of cooperative and meaningful labor. This theory was developed in response to criticisms of the classical theory's neglect of human needs. Notable proponents of this theory include Elton Mayo and Abraham Maslow.
Systems Theory
The systems theory views an organization as a complex system of interrelated parts. It emphasizes the interdependence of each part and the organization as a whole. This theory was popularized by Ludwig von Bertalanffy and Ross Ashby.
Contingency Theory
The contingency theory posits that there is no one best way to manage and that an organizational style that works in one environment may not work in another. It suggests that the most effective management style depends on a variety of situational factors.
Modern Management Theory
The modern management theory focuses on the use of knowledge and information as valuable resources for enhancing productivity and organizational efficiency. It incorporates elements of systems theory and contingency theory and emphasizes the importance of strategic decision making.
Management Functions
Management involves several key functions: planning, organizing, leading, and controlling. These functions are interrelated and often performed simultaneously.
Planning
Planning is the process of setting goals and determining the best way to achieve them. It involves deciding what needs to happen in the future and generating plans for action. In other words, planning is the organizational process of creating and maintaining a plan.
Organizing
Organizing involves arranging resources and tasks to achieve the organization's goals. This includes assigning work, grouping tasks into departments, delegating authority, and allocating resources such as finances and time.
Leading
Leading involves directing and influencing the task-related activities of group members or an entire organization. A manager must communicate, motivate, inspire, and encourage employees to take a proactive role in reaching the organization's goals.
Controlling
Controlling involves monitoring the organization's performance and making adjustments as necessary. It includes tracking performance against goals and plans, viewing performance objectively, and taking corrective action when necessary.
Management Skills
Effective management requires a variety of skills, including technical, human, and conceptual skills.
Technical Skills
Technical skills involve the ability to perform tasks in a specific discipline or department. These skills include knowledge and abilities in accounting, marketing, finance, operations, or other specific areas.
Human Skills
Human skills involve the ability to work with people. These skills are highly important in a managerial role, as a manager must be able to work with a variety of people and help them work together.
Conceptual Skills
Conceptual skills involve the ability to understand and integrate an organizational framework. A manager with good conceptual skills can see the organization as a whole, understand the relationships among various subunits, and visualize how the organization fits into its broader environment.
Management Styles
There are several different styles of management that can be employed depending on the nature of the organization, the task at hand, and the personal style of the manager. These include autocratic, democratic, laissez-faire, and transactional styles.
Autocratic Management Style
In an autocratic management style, the manager makes decisions without consulting with employees, expecting subordinates to follow directives without question.
Democratic Management Style
In a democratic management style, the manager allows employees to take part in decision-making and is seen as a team member who guides rather than directs.
Laissez-faire Management Style
In a laissez-faire management style, the manager gives employees a great deal of freedom to make decisions and complete tasks as they see fit.
Transactional Management Style
In a transactional management style, the manager sets clear goals and uses rewards or punishments to encourage employee performance.