According to Fayol, management operates through five basic functions: planning, organizing, coordinating, commanding, and controlling.
- Planning: Deciding what needs to happen in the future and generating plans for action (deciding in advance).
- Organizing (or staffing): Making sure the human and nonhuman resources are put into place.
- Coordinating: Creating a structure through which an organization’s goals can be accomplished.
- Commanding (or leading): Determining what must be done in a situation and getting people to do it.
- Controlling: Checking progress against plans.
- Interpersonal: roles that involve coordination and interaction with employees
- Informational: roles that involve handling, sharing, and analyzing information
Nerve centre, disseminator
- Decision: roles that require decision-making
Entrepreneur, negotiator, allocator
Management skills include:
- political: used to build a power base and to establish connections
- conceptual: used to analyze complex situations
- interpersonal: used to communicate, motivate, mentor and delegate
- diagnostic: ability to visualize appropriate responses to a situation
- leadership: ability to lead and to provide guidance to a specific group
- technical: expertise in one’s particular functional area.
- Behavioral:Perception towards others.
Implementation of policies and strategies
- All policies and strategies must be discussed with all managerial personnel and staff.
- Managers must understand where and how they can implement their policies and strategies.
- A plan of action must be devised for each department.
- Policies and strategies must be reviewed regularly.
- Contingency plans must be devised in case the environment changes.
- Top-level managers should carry out regular progress assessments.
- The business requires team spirit and a good environment.
- The missions, objectives, strengths and weaknesses of each department must be analyzed to determine their roles in achieving the business’s mission.
- The forecasting method develops a reliable picture of the business’ future environment.
- A planning unit must be created to ensure that all plans are consistent and that policies and strategies are aimed at achieving the same mission and objectives.
Policies and strategies in the planning process
- They give mid and lower-level managers a good idea of the future plans for each department in an organization.
- A framework is created whereby plans and decisions are made.
- Mid and lower-level management may add their own plans to the business’s strategies.
Most organizations have three management levels: first-level, middle-level, and top-level managers. First-line managers are the lowest level of management and manage the work of nonmanagerial individuals who are directly involved with the production or creation of the organization’s products. First-line managers are often called supervisors, but may also be called line managers, office managers, or even foremen. Middle managers include all levels of management between the first-line level and the top level of the organization. These managers manage the work of first-line managers and may have titles such as department head, project leader, plant manager, or division manager. Top managers are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization. These individuals typically have titles such as executive vice president, president, managing director, chief operating officer, chief executive officer, or chairman of the board.
These managers are classified in a hierarchy of authority, and perform different tasks. In many organizations, the number of managers in every level resembles a pyramid. Each level is explained below in specifications of their different responsibilities and likely job titles.
The top or senior layer of management consists of the board of directors (including non-executive directors and executive directors), president, vice-president, CEOs and other members of the C-level executives. Different organizations have various members in their C-suite, which may include a Chief Financial Officer, Chief Technology Officer, and so on. They are responsible for controlling and overseeing the operations of the entire organization. They set a “tone at the top” and develop strategic plans, company policies, and make decisions on the overall direction of the organization. In addition, top-level managers play a significant role in the mobilization of outside resources. Senior managers are accountable to the shareholders, the general public and to public bodies that oversee corporations and similar organizations. Some members of the senior management may serve as the public face of the organization, and they may make speeches to introduce new strategies or appear in marketing.
The board of directors is typically primarily composed of non-executives who owe a fiduciary duty to shareholders and are not closely involved in the day-to-day activities of the organization, although this varies depending on the type (e.g., public versus private), size and culture of the organization. These directors are theoretically liable for breaches of that duty and typically insured under directors and officers liability insurance. Fortune 500 directors are estimated to spend 4.4 hours per week on board duties, and median compensation was $212,512 in 2010. The board sets corporate strategy, makes major decisions such as major acquisitions, and hires, evaluates, and fires the top-level manager (Chief Executive Officeror CEO). The CEO typically hires other positions. However, board involvement in the hiring of other positions such as the Chief Financial Officer (CFO) has increased. In 2013, a survey of over 160 CEOs and directors of public and private companies found that the top weaknesses of CEOs were “mentoringskills” and “board engagement”, and 10% of companies never evaluated the CEO. The board may also have certain employees (e.g., internal auditors) report to them or directly hire independent contractors; for example, the board (through the audit committee) typically selects the auditor.
Helpful skills of top management vary by the type of organization but typically include a broad understanding of competition, world economies, and politics. In addition, the CEO is responsible for implementing and determining (within the board’s framework) the broad policies of the organization. Executive management accomplishes the day-to-day details, including: instructions for preparation of department budgets, procedures, schedules; appointment of middle level executives such as department managers; coordination of departments; media and governmental relations; and shareholder communication.
Consist of general managers, branch managers and department managers. They are accountable to the top management for their department’s function. They devote more time to organizational and directional functions. Their roles can be emphasized as executing organizational plans in conformance with the company’s policies and the objectives of the top management, they define and discuss information and policies from top management to lower management, and most importantly they inspire and provide guidance to lower level managers towards better performance.
Middle management is the midway management of a categorized organization, being secondary to the senior management but above the deepest levels of operational members. An operational manager may be well-thought-out by middle management, or may be categorized as non-management operate, liable to the policy of the specific organization. Efficiency of the middle level is vital in any organization, since they bridge the gap between top level and bottom level staffs.
Their functions include:
- Design and implement effective group and inter-group work and information systems.
- Define and monitor group-level performance indicators.
- Diagnose and resolve problems within and among work groups.
- Design and implement reward systems that support cooperative behavior. They also make decision and share ideas with top managers.
Lower managers include supervisors, section leaders, forepersons and team leaders. They focus on controlling and directing regular employees. They are usually responsible for assigning employees’ tasks, guiding and supervising employees on day-to-day activities, ensuring the quality and quantity of production and/or service, making recommendations and suggestions to employees on their work, and channeling employee concerns that they cannot resolve to mid-level managers or other administrators. First-level or “front line” managers also act as role models for their employees. In some types of work, front line managers may also do some of the same tasks that employees do, at least some of the time. For example, in some restaurants, the front line managers will also serve customers during a very busy period of the day.
Front-line managers typically provide:
- Training for new employees
- Basic supervision
- Performance feedback and guidance
Some front-line managers may also provide career planning for employees who aim to rise within the organization.
Colleges and universities around the world offer bachelor’s degrees, graduate degrees, diplomas and certificates in management, generally within their colleges of business, business schools or faculty of management but also in other related departments. In the 2010s, there has been an increase in online management education and training in the form of electronic educational technology ( also called e-learning). Online education has increased the accessibility of management training to people who do not live near a college or university, or who cannot afford to travel to a city where such training is available.
While some professions require academic credentials in order to work in the profession (e.g., law, medicine, engineering, which require, respectively the Bachelor of Law, Doctor of Medicine and Bachelor of Engineering degrees), management and administration positions do not necessarily require the completion of academic degrees. Some well-known senior executives in the US who did not complete a degree include Steve Jobs, Bill Gates and Mark Zuckerberg. However, many managers and executives have completed some type of business or management training, such as a Bachelor of Commerce or a Master of Business Administration degree. Some major organizations, including companies, not-for-profit organizations and governments, require applicants to managerial or executive positions to hold at minimum Bachelor’s degree in a field related to administration or management, or in the case of business jobs, a Bachelor of Commerce or a similar degree.
United States of America
At the undergraduate level, the most common business program is the Bachelor of Commerce (B.Com.). However to manage technological areas, you need a undergraduate degree in a STEM area as preferred to Defense Acquisition University guidelines. This is typically a four-year program that includes courses that give students an overview of the role of managers in planning and directing within an organization. Course topics include accounting, financial management, statistics, marketing, strategy, and other related areas. There are many other undergraduate degrees that include the study of management, such as Bachelor of Arts degrees with a major in business administration or management and Bachelor of Public Administration (B.P.A), a degree designed for individuals aiming to work as bureaucrats in the government jobs. Many colleges and universities also offer certificates and diplomas in business administration or management, which typically require one to two years of full-time study.
At the graduate level students aiming at careers as managers or executives may choose to specialize in major subareas of management or business administration such as entrepreneurship, human resources, international business, organizational behavior, organizational theory, strategic management, accounting, corporate finance, entertainment, global management, healthcare management, investment management, sustainability and real estate. A Master of Business Administration (MBA) is the most popular professional degree at the master’s level and can be obtained from many universities in the United States. MBA programs provide further education in management and leadership for graduate students. Other master’s degrees in business and management include Master of Management (MM) and the Master of Science(M.Sc.) in business administration or management, which is typically taken by students aiming to become researchers or professors. There are also specialized master’s degrees in administration for individuals aiming at careers outside of business, such as the Master of Public Administration (MPA) degree (also offered as a Master of Arts in Public Administration in some universities), for students aiming to become managers or executives in the public service and the Master of Health Administration, for students aiming to become managers or executives in the health care and hospital sector.
Management doctorates are the most advanced terminal degrees in the field of business and management. Most individuals obtaining management doctorates take the programs to obtain the training in research methods, statistical analysis and writing academic papers that they will need to seek careers as researchers, senior consultants and/or professors in business administration or management. There are three main types of management doctorates: the Doctor of Management (D.M.), the Doctor of Business Administration (D.B.A.), and the Ph.D. in Business Administration or Management. In the 2010s, doctorates in business administration and management are available with many specializations.
However under US Defense Acquisition Level 3 requirements, “At least 24 semester hours from among accounting, business finance, law, contracts, purchasing, economics, industrial management, marketing, quantitative methods, and organization and management.” The remaining requirements is a master degree in a STEM field of study for most US Defense Contracting Positions.
While management trends can change so fast, the long term trend in management has been defined by a market embracing diversity and a rising service industry. Managers are currently being trained to encourage greater equality for minorities and women in the workplace, by offering increased flexibility in working hours, better retraining, and innovative (and usually industry-specific) performance markers. Managers destined for the service sector are being trained to use unique measurement techniques, better worker support and more charismatic leadership styles. Human resources finds itself increasingly working with management in a training capacity to help collect management data on the success (or failure) of management actions with employees.
Credit Anubhav shukla
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