Tuesday, 20 April 2021

Concept of Management (IEM Mgt 20April 2021)

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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