Concept of Management
The concept of management has become broad and
dynamic with the introduction of new perspectives by different fields of study.
The sociologists, economists, administrators and behavioural scientists
observes management from different points of view.
These are as follows:
1. Management as An Economic
Resource
As viewed by the economists, management is a
valuable resource of production which uses land, labour, capital and
entrepreneurship to produce goods. Managers determine the productivity and
profitability of a firm by making good decisions. It is generally agreed that
executive development and innovation functions can be performed by the
managers. Organizations with poor managers always fail. Thus, managerial skill
is the dominating element in economic growth.
2.
Management as a System of Authority
Specialists in the field of administration view
management as a system of authority. It denotes power relationships. There is a
hierarchy of formal authority in an organization. According to Herbison and
Myers, “Management is a rule-making and rule-enforcing body, and within
itself it is bound together by a web of relationships between superiors and
subordinates.” Over the years, there have been changing patterns of
management, e.g., (1) Authoritarian, (2) Humanitarian, (3) Constitutional
and (4) Democratic pattern. Modern management is a synthesis of these four
patterns of authority.
3.
Management as a Class or Elite
This is a sociological perspective which defines
management as the group of organization members that occupies the social
position responsible for achieving the goal of the firm. From this point of
view, organization members can be put into two classes managers and
non-managers. Managerial class is an elite of brains and education. This class
commands knowledge power due to its specialised training. Managers accomplish
their work primarily by directing the work of others.
4.
Management as a Discipline
Some people describe management as a field of study
and learning. As an academic discipline, management is an organised body of
knowledge. This discipline is being taught in institutions. Management
discipline is a part of social sciences and integrative in nature. It derives
its theories from humanities and behavioural sciences.
5.
Management as a Process
As a process, management refers to what management
does, i.e., the function performed by managers. These functions are - planning,
organization, staffing, co-ordination, directing etc. Mary Parker Follet
described management as an activity concerned with the orchestration of people,
work and systems in the pursuit of organizational goals. It is a process of
guiding, directing, influencing, and controlling the actions of others to
achieve some objectives.
6.
Management as a Career
The term management is also used to denote a career
or occupation. It has become a lucrative and challenging career path and source
of livelihoods. Those who adopt management career devote their working lifetime
to the practice of management.
In addition to above uses, management is also viewed
as a decision-making art, a science or an art which requires creative skill. It
should be noted that these diverse concepts described above are not
contradictory to one another. Management is a synthesis of all these
viewpoints. However, the “process concept” of management is most important. It
explains the real nature of management.
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