Human societies management is the hub since the dawn of time.
Advancement and macro societal issues are well overcome subject to resource control. Management is a continuous process of monitoring and directing the activities in order to achieve predetermined objectives. It is also about addressing greater complexities within a growing society and improving its basic architecture.
Definition of Management and Industrial Management
Management
The term Management is a well-known term, and its definition has been presented by different authors at different points in time. As we can see, the idea of management is not so clearly defined because it cuts across various dimensions.
Management is a word that has come from the old English from the Latin words of "Maneggiare" and "Menager." “Maneggiare” means to “train up the horses” — “Menager” is reference to manage or direct activities. The three words became increasingly used in tandem and started to define “management,” more specifically, “an act of guiding or leading.”
So, management today is about planning, organizing, and controlling activities to get desired objectives. It is that tool that accompanies more in the clerical work of all levels, and gives the correct orientation and direction to workers, and to the activities that are developed.
Some scholars and management scientists defined management to clarify the meaning and scope of management. Important definitions include the following:
- Henry Fayol said — “Management is to forecast and plan, to organize, to command, to co-ordinate, and to control.”
- “Management means executive leadership.” — R.C. Davis
- Management is “what a manager does,” says L.A. Allen.
- Management is the process and agency concerned in the direction and coordination in the discovery of goals (Ordway Tead).
- Management is an art and science which is heat-ray from data in order to heat-ray our mission in October 2023.
The process of management includes, in Terry’s opinion:
- Fundamental Resources (Manpower, Material, Machines, Methods, Money, Market)
- Basic Functions (Planning, Organizing, Actuating, Controlling)
- Goals, or objectives, that have been established
The below diagram shows this:
- Core Resources | Core Activities | Pre-defined Objectives
- Man | Planning | Goals
- Material | Organizing |
- Machine | Actuating |
- Method | Controlling |
- Money |
- Market |
E.C.L. Brech said, “Management is about making sure that the work is done, and done well.”
Industrial Management
Hence industrial management is all those activities of management that are associated with industry. To put it briefly: Industrial management is the industrial organization as the planning, organizing, directing, controlling, motivating, and supervision of economic and effective industrial operations. Here are certain important definitions of industrial management:
- Industrial management is a science by which men are directed, controlled, and organized to get maximum results. — M.P. Follett
- The American Institute of Industrial Engineers defines industrial management as, “A process of bringing together people and resources by means of technical and scientific principles to achieve specified objectives.”
- Industrial management signifies that men, machines, and materials have been effectively and economically utilized to achieve organizational objectives. It also encompasses the design and studied action of industrial undertaking – manufacture, distribution, services, et cetera – consistent with customer desires and manufacturing criteria. It encompasses all domains of management right from the procurement of raw materials and production to distribution and delivery to consumers and aims for continuous improvement and efficiency.
Goals of Contemporary Management
Management's contemporary direction is social action and efficacy at a layer of scientific knowledge use and principles. This GMP highlights the systematic planning and utilization of human talents together with the application of sophisticated tools to guarantee competitive and sustainable development in a dynamic business environment. Modern Management Objectives fall under two types:
Management Objectives — Diagram
Fundamental Objectives
Supportive Objectives
Profit Maximization
Human resource development
Sustainable Growth and Development
Enhancing the infrastructure
Market expansion
Improving labor-management relations
More customer satisfaction in the minimum time
Social Welfare
Boosting the Operational Efficiency
Raising national income
(a) Fundamental Objectives:
- Increase the profit: Management aims to maximize the profit which contributes to maintaining the competitive advantage of the organization and ensures a long-term approach.
- The expert Peter F. Drucker is critical of the organization and its target toward sustainable development.
(b) Supportive Objectives:
Human resource development: Another objective of management is to persuade workers and employees toward achieving the goals set, as well as to help them exploit their potential with adequate use of resources.
Improvement of Infrastructure: To strengthen the infrastructural support at this stage and then in the later stages to help build a strong and sustainable working environment.
Another important function of management is to grow the relationship of customers and other stakeholders to enlarge the market.
Better worker-management relation: To get a better worker-management relation.
Achieve Maximum Customer Satisfaction: To make the possible highest level of customer satisfaction happen through quality goods and services.
Social Welfare: Management plays an important role in the development of social welfare activities for life and employment generation and other major social problems.
Operational Efficiency: To use advanced methods and management of resources (through people, material, and processes) to improve your operational efficiency, productivity, and cost-effectiveness.
Role of Management in National Income: As management increases the profitability of various industries, and increases their productivity and the efficiency of different organizations, there is always a contribution towards the economic growth of the country.
Functions of Management
Scope of Management
Management scope refers to the area in which management activities will be conducted. Management is involved in all types of organizations (incl. Governmental, Private, Educational, Social, Non-Governmental). Every managerial activity related to the planning, organization, direction, and control to reach the organizational objectives efficiently is a fact.
Scope of Management
| Operation | Tech Application | Project | Strategies |
|---|---|---|---|
| Division | Division | Division | Division |
| Business | Workforce | Workers’ | Supervision |
Key Points:
- Management is applying systematic knowledge to enhance the existing operations of an organization.
- Hence, we can say this is one of the important developed units of all industrial and social operations or processes for accomplishing both organizational and personal objectives.
Types of Management (Top-level, Middle-level, and Lower-level Management)
Scope of Management (contd.):
Functional Domain of Management: Broadly, there are certain functional areas into which management has been divided. Functional area — Each functional area corresponds to a responsibility that leads to passing an organizational goal. Management, as rightly said by Peter F. Drucker, is the correct use of men, materials, money, methods, and machines.
Management is an umbrella term covering operating at all levels in an organization. These functions relate to the efficient use of time and resources, managing industrial relations, and maintaining organizational discipline.
A MacDonald managing is also about project activities — defining goals, securing resources, tracking performance, managing costs. This includes monitoring finances, keeping records, and reviewing progress. It focuses on the monitoring of small and large-scale functions to bring the success of a project.
Scope of the management: Management covers strategic areas like formulation of corporate objectives, alignment of objectives with the environmental condition and internal condition, and ensuring long-run stability. Similar to the survival of a business with the change of environment, business management needs to adapt and will not be possible without.
Levels of Management
Management can be organized in three broad levels, with each containing its functions:
Top-Level Management
The top tier are your senior executives, senior management, directors, general managers, who set the objectives and strategic direction for the business.
They deal with decision-making, policy planning, and development of overall strategies to achieve those goals.
Middle-Level Management
Upper level management drafts plans and strategies while middle-level managers implement those plans and strategies.
They manage department heads and maintain seamless inter-departmental coordination. They help guide, coordinate, and support their teams.
Lower-Level Management
This is also referred to as supervisory or operational management and in this tier of management, you will execute plans and manage day-to-day operations.
These managers oversee workers directly and determine productivity and quality.
Summary
Management includes both advising an organization on long-term planning and operating the organization in practical terms. Effective management enables organizations to take the right resources at the right time in the right place to accomplish their goals. Management also learns across contexts and hierarchies — operational, project, and strategic.
Functions of Management
Management functions are classified according to the nature and scope of activities. These functions specify all the things you have to accomplish to succeed in meeting the organization goals. Scholars have classified these functions into primary functions and supportive functions.
POSDCORB: Primary Functions of Management
POSDCORB — a concept introduced by Luther Gulick — summarizes the key functions of management. These include:
- P – Planning: Making up your mind beforehand what you are going to do.
- O – Organizing: Arranging resources to accomplish the goals.
- S – Staffing: All about hiring and people management.
- D – Directing: This is the act of leading and monitoring workers.
The second part of the acronym is CO – Coordinating – Harmonizing.
- R – Reporting: Updates, Commentary, Performance Review
- Budgeting: Financial planning and control.
Management Functions Diagram
| Core Activities | Secondary Activities |
|---|---|
| Planning | 1. New Developments |
| Organizing | 2. Adoption |
| Staffing | 3. Communication |
| Directing | 4. Performance Evaluation |
| Coordinating | 5. Decision-Making |
| Reporting | 6. Innovation |
| Budgeting |
Detailed Description of Functions
Primary Functions
Planning
Planning is the first and foremost function of management. It would mean determining what must be done, when, how, and by whom. Planning has the definition of setting goals, developing plans, and arranging resources. This is, essentially, a forward-looking function, that uses a systematic approach to decide for future milestones. As stated:
“Planning is anticipating, ahead of time, what to do in the other times.”
Organizing
Organizing means arranging human, material, financial resources, etc., to fulfill the objectives effectively. It helps you assign the roles, responsibility, and authority of every individual accordingly. Organizing without planning is like a train with no railway track. It creates a broad foundation to act on plans and allows the gush to remain unbroken at all levels of management.
Main Function (Intermediary Functions)
Staffing
It also includes which employees to hire and promote, obliterate, and the ongoing maintenance of employees needed by any company. It sounds more like attempting to place those who are rightly suited to the tasks suitable for their knowledge, skills & experience. The process also includes designing, training, performance evaluation as well as career development.
Directing
According to Kootz, directing is the process of getting things done by others with the effective and efficient use of resources to help the organization achieve its goals. This involves managing, motivating subordinates, and mediating conflicts. As a director, you have to make sure that different teams are headed in the right direction and are not losing sight of the organizational goals.
Motivating
Motivation means encouraging employees to deliver their best by functioning on what they want. This is knowing every single individual, capacity, and capability and driving them (financial or non-financial) to execute.
Coordinating
Co-ordination integrates the various departments and activities of an organization. Coordination of action for the accomplishment of common objectives and prevention of conflicts. Good co-ordination increases productivity and halts redundancy of work.
Controlling
Controlling is associated with directing activities like overseeing and reviewing general performance to aid the satisfactory completion of aims set for the business. It includes comparing actual results with goals and taking corrective actions if necessary. Controlling ensures consistent and efficient operations.
Secondary Functions
Innovation
The management of an organization has a very important role in innovating new ideas or in making the processes to implement the strategies that the organization would implement to improve its efficiency. As Peter F. Drucker puts it:
“That a business cannot be managed bureaucratically, administratively, or even with policymaking,” It’s got to be a creative task, not an adaptive one.”
Representation
The role of a figurehead is performing ceremonial duties on behalf of the organization. The figurehead role takes up a management role to represent the organization outwardly in its environment with workgroups, labor unions, civic bodies, government agencies, financial institutions, etc. The face of the organization is to be the Board of Directors, outside partners, or potential shareholders.
Communication
Employee relations communication is critical to the principles of employee relations. It allows for the flow of ideas, resolves conflicts, and enables the enterprise to gel. It's key for good decision-making and teamwork, and this is why good communication skills are crucial.
Reporting
Reporting involves acquiring and expressing information about organizational performance to someone who has an interest in such information. This can aid in decision-making and accountability through the establishment of records of progress and difficulties.
Core Responsibilities (contd.)
Budgeting
Budgeting involves how a company plans and controls its finances. A key management function, budgeting enables managers to plan, scrutinize, and control an organization’s spending. As budgeting is the process of estimating costs and incomes, managers can plan their respective budgets in order to create good financial stability.
The Management Process
The Management Process is illustrated in the following diagram:
- Planning
- Organizing
- Staffing
- Directing
- Motivating
- Coordinating
- Controlling
Principles of Management
Management principles are general statements used as guidelines for managerial activities and behavior. These principles are based on empirically verifiable truths or scientific laws that enhance the effectiveness and efficiency of managerial practice. They are the fundamental pillars of sound decision-making and organizational success.
Henri Fayol’s Contributions
Henri Fayol, the father of modern management theory, outlined 14 principles of management that focus on administrative and organizational efficiency. These principles provide a foundation for any organization.
The following are the major contributions of Fayol:
Division of Work: This means you do only one type of work all your life or for a fixed time.
Authority and Responsibility: There has to be a combined weightage of authority with responsibility. Managers must be able to give orders, but must also be answerable for them.
Principles of Management (Contd)
Discipline:
Note that discipline helps in uniform following of the Rules, Laws, and Procedures. It means maintaining order, professionalism, and civility in the organization. Discipline plays a role to achieve organization goals and gain respect from employees.
Unity of Command:
Every workforce must receive orders only from one office. This means keeping things simple, fostering accountability and communicating effectively.
Unity of Direction:
The goal brings clarity to not only the direction of the organization but also to clarify that all activities of the organization must be focused on one goal. The plan cannot be too complex; not more than a few activities with similar purposes can be written out to a single director.
Subordination of Individual Interest to General Interest:
You must always put the organization first ahead of the person. Employees and Organizational goals must be linked with organizational goals to achieve organizational success.
Remuneration:
Every working person deserves to be compensated fairly for their labor. Timely rewards ensure a withering work environment, which effectively aids in the growth of motivation, buoyancy, and allegiance prosperity among employees.
(Unmanaged) Centralization and Decentralization:
Authority may be centralized or decentralized, depending on the type and size of the organization. While a centralized organization provides an efficient mechanism for decision-making, decentralized structures empower employees to act, driving innovation.
Scalar Chain:
There should be a clear command structure from the top down. It acts as a lubricant in the process of communication and maintains the contact of the subordinates with their superiors.
Order:
You need the right people and equipment exactly where you need them, exactly when you need them. Proper sequencing improves efficiency, eliminates waste, and increases productivity.
Equity:
Managers should treat employees justly and fairly. Equity builds a culture of rooting, respect, and trust across the organization.
Stability of Tenure:
Job stability, like benefits, helps to improve the performance of workers. Stop-start turnover can bog down operations and sap morale.
Initiative:
Rather, leaders must inspire their people to be proactive and generate ideas. This is what enables creativity, innovation, and passion to flow in the workplace.
Esprit de Corps:
Managers have a role to play in motivating the employees to work their best together. It all contributes to improved motivation, collaboration, and harmony in the organization.
Henri Fayol, a French mining engineer, was one of the earliest contributors to management theory and he laid out five functions and fourteen principles of management, which remain widely accepted and in effect across the world today.
Task-Related Principles for Internal Management
Managerial Policies:
Policies must be issued consistently throughout departments, people, and divisions. It ensures fairness, transparency, and consistency of practices within the organization.
Adaptability:
Policy is contextual and needs to be contextualized and adapted. They must be contextually relevant, which makes management relevant to its challenges or opportunities.
Practical Implementation:
Policies must be actionable. They must include practical feedback from all stakeholders.
Navigation to Commitment:
The agency has to align the policies to its primary functions along with the value system and ethics of the organization.
Employee Involvement:
Feedback from employees must be taken on all policies, ensuring that all employees of the organization are part of it and strengthen the organization's commitment.
Administration, Organization, and Management
So about administration: administration is the process of organizing and managing that begs the question of the overall functioning of the organization, whereas organization is the structure and arrangement for different aspects of the organization, and management is the subjective direction and coordination of resources and activities within the organization.
Administration
On the other hand, Administration refers to the high-level functions of management that deal with policy-making, strategic planning, and guaranteeing the organization is pursuing the desired objectives. It is responsible for ensuring that goals are set and resources are used efficiently.
Key Definitions:
- Newman: “Administration is working with people to accomplish objectives.”
- Sheulz: “Administration is the motor which organizes, leads, and controls the activity of an organization.”
- Sheldon: “Administration is the function in industry dealing with — the determination of corporate policy; the coordination of finance, production, and distribution; and the framework in which these are accomplished.”
- Henry Fayol: Fayol gives five definitions of administration or the activities that leaders must be responsible for in a devoted capacity in executing organization effectively: planning, organization, command, coordination, and control.
Organization
The organization is the process providing the most appropriate structure for the enterprise's activity, which is developed to achieve laid-down goals in the most effective way. This involves distributing resources, delegating tasks, and coordinating between the different organizations to keep everything on track.
Key Definitions:
- L.A. Allen: “Organization is the establishment of a structure of authority and the assignment of responsibility and the delegation of authority to people, including to those working most effectively together in the pursuit of objectives.”
- Haney: “Organization is the harmonious adjustment of specialized parts for the attainment of some common purpose or purposes.”
- Sheulz: “Organization (also known as organization structure): it is bringing together physical, financial, and human resources and establishing productive relationships for achieving the organizational goals.”
Management
Management refers to the process of planning, organizing, leading, and controlling an organization’s resources (people, material, money, etc.) in order to achieve specific goals. Management is termed as the doing function because it leads towards doing the work and implementing the policy in an effective and efficient way.
Administration versus Management versus Organization
Similarities and differences related to administration, management, and organization:
Nature
- Administration: This is the highest level of policy formulation and decision-making, where the administration operates.
- Management: Objectives are achieved by implementing policies and directing activities.
- Organization: How we organize is the scaffolding upon which we do things.
Role in Goal Achievement
- Admin: The third category is an admin who decides the policies and objectives of the organization. They ensure that the policies are being implemented and that the goals are being achieved. On an individual level, they also have to lead by example.
- Management: Organizing allows you to perform the work by organizing resources and action.
Scope of Work
- Administration: The planning, policy-making, and the people making the big decisions.
- Management: Planning, organizing, directing, and controlling operational activities are all part of management.
- Organization: The word "organization" covers all parts and how it distributes its resources and functions.
1.5.4 Administration, Management and Organization: Some Differences (Contd.)
Point of Difference
Administration | Management | Organization
Level
It involves managing an organization at the corporate level.
It seems like management in the organization, that works at middle & lower levels.
Organization is any and all structural architecture.
Focus
Administration focuses on making choices and creating policy.
Policymaking: Management is formulating policies and setting targets.
Activities design are framed around organize.
Authority and Power
Management has the only group vote in the organization.
Management is derived from administration.
Employees are given tasks and responsibilities in Organization.
Working Principles
Administration: Principles and objectives guide the organization.
Management is where principles find practice.
Organization: Helps apply plans and principles.
Scope
Administration is the name of the enterprise strategy.
So, management deals with day-to-day operations.
It consists of the resource allocation and coordination of activities.
1.6 The Dimension of Industrial Management, From Managerial Level to Grass Root Level
The area of industrial management covers the whole be attached to factories and enterprise organization committee that includes top management level to the workers. These activities position objectives up and down the organization and help ensure alignment across functions. The levels of management in industry can be described as follows:
Top-Level Management:
In formulating policy, plans, and objectives for the organization, top management is involved. They handle the industrial functions, measure improvement and, as suitable, direct any remedial actions. They are the organization’s face to outsiders, relating to stakeholders including investors, government bodies, and regulatory authorities.
Middle-Level Management:
Middle-level managers act as a link between top-level management and operating personnel. They put organizational policies into action, supervise department operation, and maintain a smooth working environment. They communicate with other departments and update senior management on progress.
Lower-Level Management:
The assigned tasks from higher management levels are meant to be performed by management lower down the chain. They manage workers, enforce safety compliance, and uphold quality during every hour of operations. They are the bridge between the organization and its people.
Lower-Level Management (Continued):
Lower-level management primarily relates to the management and supervision of the workforce or working staff functioning in the actual business operation. They implement the plans and policies set by management at other levels, for the day-to-day operation of the enterprise. They initiate discipline, check safety standards, give instructions, and observe ground-level activities.
Lower-level managers engage with workers directly, responding to their needs and ensuring quality. They oversee and organize various operational tasks such as material handling, production scheduling, and workflow management. This ensures that the business strategy gets translated through the operating model into execution.
Workers and Support Staff:
Industrial progress is only backed with a strong workforce and supporting personnel. Through the lower-tier employees routinely completing responsibilities as instructed by their managers, organizational goals are achieved. They are the people who operate machinery and equipment, deal with materials, and perform other physical and technical processes that enhance productivity.
From inside the organization perspective, their work is performed in concert and collaboration. You could also argue that employees work under supervision or guidelines from management to maintain quality and consistency within the organization.
Industrial Management, Including Organizational Structure
The chart below shows the hierarchy of management in the industry:
Executive Management
Mid-Level Management
Under Management
Planning Stage | Operational Stage | Execution Stage
Top Management Positions:
- Production Manager
- Marketing Manager
- Financial Manager
- Labor-Relations Manager
Middle Management Positions:
- Supervisors
- Assistant Supervisors
Lower Management Positions:
- Foremen
- Workers (Operational Staff)
This is how industrial management should be visualized: all roles and functions in a company, from senior management levels to operations workforce. Goals at different levels of the organization are connected to and inscribed on goals at other levels.
1.7 Relationship between Administration, Organization, and Management
Administration, Organization, and Management are three major components of the working of an organization. Although they are different and have distinct meanings and purposes, the two work together to ensure that an enterprise operates optimally. You can’t separate these ideas from each other. They claim that their relation is:
Administration
Administration is mainly concerned with policy formulation and higher decision making. It is the one that decides the what and how of the organization and also the rules to achieve them. That entails establishing company-wide goals, implementing policies, and ensuring adherence to external regulations. Admin is one of the Top Level of an Organization.
Organization
Organization – the structure of work and people that serves to distribute resources and allocate responsibility. It involves defining functions, responsibilities, roles, and relations in the group in order to guarantee order and efficiency within the organization. The way the organization is structured allows policies and objectives to be achieved.
Management
Management is the organization and coordination of the activities of a business in order to achieve defined objectives. Management operates on multiple levels to implement plans and policies.
Relationship
- Administration lays down plans, goals, and policies.
- Organization is the survival of the fittest of how we implement these goals.
- So that managers can deliver these plans and policies in the name of the organization.
Then the three open pathways to success in an organization, each taking a different but connected approach.
1.8 What is Production Management? Functions
Production management or Manufacturing management is the branch of management that deals in the planning, organizing, directing, and controlling of production processes. In a broader sense, we are speaking about translating the feedstock into the target material, based on smart resource and process use.
What is Production Management?
E. F. L. Brech:
Production management is a general name for all the activities methods to develop the optimum numbers of goods and services with maximum quality in the coalesced cost and duration-mounted on all the production development.E. S. Buffa:
Under Pahlavi F. E. S. Buffa terminologies, production management is "a system of decision-making activities that ensures optimal utilization of resources to manufacture goods and services."Keith Lookyer:
Krith Lookyer defines the Production 4 P's, called Production management:- Product (Goods and Services)
- Practice (Experiential Activities)
- Programme (Schedules)
- People (Employees)
Production management is a set of activities that enables efficient production of goods and services, encompassing the technical, operational, and economic knowledge of resources.
Production management involves many activities. Production management activities are wide and ensure that there is a smooth production process. They are involved in planning, organizing, directing, and controlling all the resources to produce and deliver a product. Its principal live activities can be measured as follows:
Production Planning:
Pinning down production goals, processes, and deadlines.
Determining the resources necessary to achieve production objectives.
Resource Allocation:
Zero wastage of any materials due to the availability of required machines, manpower, etc.
Production Process Design:
Traditionally concerned with the transformation of raw materials into a finished product.
Follow on to produce efficient and effective workflows.
The Mechanisation of the Scientific Method:
Using scientific techniques, one can enhance productivity, quality, and cost by comprehending these capabilities.
Production Control:
Monitoring production to ensure nothing deviates from the plans and schedules.
Making corrective actions if there is a deviation.
Quality Control:
Setting and updating standards for products and services.
Inspections and product testing in custom manufacturing.
Maintenance of Equipment:
At its best, making sure all machines and tools are functioning properly.
Doing regular maintenance to avoid issues from cropping up.
Inventory Management:
Manage inventories of raw materials, work-in-progress, and finished goods.
Reducing storage costs, because one does not need to purchase extra storage space.
Labor Management:
Customize all training for production staff hiring.
Manage and empower the team.
Data Analysis and Warranty Data Trend:
Study of Market Demand in Order to Align Production with Consumption.
Staying Ahead of Dynamic Market and Industry Forces.
Budget Management:
Handling and budgeting for production activities.
Cost management, to assure profitability.
Production management ensures the smooth transition of raw resources to products in a way that keeps the overall aims of an organization in check while satisfying customers at the same time.
1.9 The Social Responsibilities of Management
Management is not only about pursuing organizational goals; it is also social. Outputs—organizations produce (outputs) and inputs—society (inputs) are the resources necessary for production. In fact, the responsibilities are not limited to profit-making but also to return to society in such a way that it covers all the interest groups of people.
As Keith Davis states:
"The CSR is the performance of the business organizations towards the community and society through the value added to the economy."
Important Areas of Social Responsibility
Classification of Management's Social Responsibilities
Management's social responsibilities can be classified as follows:
Duties Towards Shareholders and Owners
- Safeguarding and expanding its shareholders' investments.
- Give fair returns on capital.
Know Your Transaction: To Achieve Transparency
- What causes fraud and mismanagement.
Responsibility Towards Employees
- All due reward for paying decent wages and benefits.
- A decent job and job security, promotion opportunity.
- Establishing a safe & healthy work environment.
- Social and Welfare services such as education, health care, housing, etc.
- Good relations between management and the workers.
Obligations to Suppliers and Distributors
Management is responsible for suppliers, distributors, and:
- Enhancing pricing fairness & payment speed.
- Upholding professional and ethical relationships.
- Protection against game monopolization.
- Ensure the quality shipment and to its timely delivery.
Duties to Creditors and Investors
Management must deliver on its obligations to creditors and shareholders by delivering:
- Timely repayment of loans and interests.
- Honest and upfront communication about financial situation.
- Use of funds where responsible and efficient.
- Generating trust and confidence among the creditors and investors.
Responsibility to the Public and to Society
There are a tremendous amount of social accountabilities on management, for instance:
- Creating opportunities for society.
- Developing culture and society.
- The system that underlies public good: health, education, and infrastructure.
Obligations to Local Communities
Management must be answerable to its obligations to the local community:
- The commission also assists with local schools, colleges, hospitals, and other public buildings.
- Spend money on social projects.
- Data that the archive is used to provide assistance during emergencies, including disaster relief efforts.
Obligations to Employees
Management needs to keep the employees happy and serve their well-being. This includes:
- Fair wages and benefits.
- Providing conditions of work necessary for human dignity.
- Offering organization resources for training and professional development.
Responsibilities to Government and Legal Authorities
Management is required to follow government rules and policies such as:
- Laws, regulations, policies, and tax laws compliance.
- Preventing oneself from scam and unethical practices.
- Working with public authorities on the social challenges.
FAQ and Answer
What is Management?
Management — the administering of an organization, be it a business, a not-for-profit entity, or a government body.
What is the meaning of Maneggiare?
The Italian meaning for Maneggiare is 'to train up the horses', and to handle, this is how the word derived.
Industrial Management: What Is It?
Industry Management: It is a field that deals with the management and optimization of various processes when it comes to production, planning, organizing, directing, and controlling these processes to achieve the goals that an organization sets forth.
What is Administration?
Higher-level administration deals with the establishment of organizational goals, structure of organization, policy, and procedures. It focuses on creating strategies and overseeing their implementation.
What is Organization?
Definition of Organization — Organization is an administrative function that arranges its tasks, resources, and obligations that are directed to accomplish their successes. It rattles the roles and relationships of individuals and departments.
What are the two main aims of management?
What are the Core Goals: Organizational Outcomes.
Sub-topics: These help in the satisfaction of employees and society.
Management has four basic goals.
Achieving results you want.
- Developing and providing natural resources.
- Facilitating self and group development.
- Staying faithful to social responsibility and ethics.
Key Questions and Answers
Functional Management Perspectives: What are the scopes of management?
From a functional perspective, the scope of management is three types:
- Planning
- Organizing
- Directing and Controlling
Levels of Management Question (With Example)
Management levels are divided into three tiers:
- Top-level Management
- Middle-level Management
How many levels management controls and what are they?
Management is divided into three different levels:
- Top-level
- Middle-level
- Lower-level
Planning: What is Planning, and what does it mean?
Planning is the act of making plans for something. So, that this aristocratic side consists, basically, first of setting goals and then deciding how you are going to achieve the goals.
The Direction — What it is and why we need it.
Direction is a continuous process of transmitting instructions, guiding, directing, and motivating employees in progress towards the goals of the organization. It assists in performing duties in an appropriate way and accomplishing objectives.
Meaning of Coordination: What is Coordination?
Coordination: It means coordination, under this unit, activities are coordinated by different departments.
What it means for Control. What actually is Control?
Control includes an oversight of operations and activities within the organization so that everything is done as intended to achieve established goals. It also includes corrective actions to recover from deviations from the plan.
What is Motivation?
Motivation is a process in which the default employees are persuaded to perform their tasks when their needs get fulfilled.
What is Decision-making?
Decision-making is a process of finding the best solution or output from several choices that can assist in resolving issues or achieving objectives.
What does Leadership mean, and what is Leadership?
Leadership is the act of leading a group of people or an organization.
Key Questions and Answers
What is the meaning of management policy?
It is a collection of all the plans that direct an organization. These policies also encourage consistency in management actions and equity.
What is an objective?
The metric that indicates progress towards the goal is called a key result. Managerial activities are directed and focused by goals.
Why is policy important?
NPV is a nice number, but policy gives you directions to guide your decisions and provides consistency and conformity in action. It also assists management in linking organizational performance action-taking with endpoints.
Production management — what is it?
Production management operates towards a global goal -- assisting in converting inputs into outputs -- items or solutions in an efficient way, through primary and secondary features, such as preparing, organizing, directing, and controlling.
What are the four p's of production management?
- Product (Goods or Services)
- Plant (Facilities)
- Process (Methods)
- Programme (Schedules)
What is production planning?
Production planning refers to the processes people use to forecast for, plan, and schedule the actions, that is, the operations needed to manufacture goods or produce services.
The Six M of management: Man, Money, Material, Machine, Methods, and Market.
The six Ms of management:
- Manpower
- Money
- Machines
- Materials
- Methods
- Measurements
What does production management want to achieve?
Product Management is an approach for manufacturing or processing goods and services in the least time possible, delivering a quality product within a budget that suits consumer needs.
Henri Fayol defined management as follows.
Henri Fayol — “The activity of managing gets defined as the process of forecasting & planning, organizing, commanding, coordinating & controlling.”
Key Questions and Answers
How do you define management?
Management is the art of making things happen. Different terms have been used to delineate management over the years by different scholars. You can thus not provide a single definition of management that is universally accepted.
Important Definitions Management
Henry Fayol:
“Management is to predict, plan, organize, command, coordinate, control.”
L.A. Allen:
“Management is what the manager does.” This definition emphasizes manager actions and activities to achieve organizational aims.
George R. Terry:
Management is “a differentiated process of planning, organizing, actuating, and controlling, … and is performed to determine and accomplish the objectives by the use of people and resources.”
Define Industrial Management.
Industrial management means managing all industrial-related work done in an organization to achieve the organization objective by coordination, planning, organizing, directing, controlling, etc. It is about the best utilization of available assets to ensure production, quality, and service.
Additional Key Points:
If you consider production, manpower, and machinery as three domains of industrial management that satisfies customer demand with production, manpower, and machinery.
Well-planned and well-distributed: the letters, the time, and the workload.
What does it mean that “management is what a manager does”?
“Management is what a manager does,” writes L.A. Allen. The primary function of a manager is to plan, organize, staff, direct, and control. They have to align all the activities in their organization to inspire their employees to put in the same effort and work for a common cause.
Types of tasks performed by the manager:
- Setting goals and objectives.
- People management + task delegation.
- Ensuring that operations run by design.
That means management consists of actions and activities carried out by managers to achieve success for the organization.
Management Objectives: What Are the Objectives of Management?
The objectives of management can be boiled down to:
- So that the operation of the organization runs smoothly.
- Train on data till October of Year 2023.
- Foster collaboration among all departments.
- Issue a strict warning to those on staff in the organization.
- Encourage efficient productivity and enable employees to do it faster.
- Stakeholder relationship building.
- So that they can effectively reach and attain their organizational goals.
- Advance the long-term sustainability and growth of the organisation.
- Encourage employee engagement & well-being.
- Promote social and economic development.
Therefore, the extent of management is defined.
Answer:
The other definition of management, the process of dealing with things or people, but specifically to the scope of management, the activities and responsibilities taken by managers in order to fulfil organizational goals. This can be categorized into:
Type of Organizations:
- Type of organization, its functional scope, and its size.
Recent Posts Sectoral Focus:
- Activities spread across multiple sectors like marketing, production, HR, finance.
Organizational Scope:
- Multiple layers of management, be it at a higher level or lower.
Temporal Scope or Selection of Time Scale:
- Short-term and Long-term.
Explain the Core Functions of Management
Answer:
Main Functions of Management:
- Planning
- Organizing
- Staffing
- Directing
- Motivating
- Coordinating
- Controlling
Key Questions and Answers
What are the two most essential aspects of management?
Answer:
There are two dimensions that the management aspects fall into:
Work Division:
- (Organization) The division of labor. This guarantees that accountability is properly apportioned according to the works that need to be performed.
Policy making and policy processing:
- "Policy Making and Processing" focuses on creating rules, policies, and procedures to guide the organization's actions. If you have policies in place, you can ensure that your practices align with your business goals while remaining consistent and fair.
What is the Scalar Chain?
Answer:
The chain of authority works from top to bottom within the organization. It establishes a direct line of communication and holds them accountable. According to Fayol, maintaining this line is necessary in order to maintain small lines of communication across all kinds of management levels.
Why are there two functions primarily involved in management?
Answer:
Two General Functions of Management
Planning:
- You cannot align objectives, strategize on the course of action, and resource availability towards the goals of your organization without it. It lays the groundwork for better decision-making.
Organization:
- It is the designing, arranging, and implementation of all needed resources and for the activities to flow unhindered across the departments.
What is Organization?
Answer:
Organization is the arrangement of work or project in a way that is deliberate, systematic, and tactical to take steps towards the goal as efficiently, effectively, and strategically as possible. It proves a mutual foundation to align our actions and take a more accountable stance.
Key Definitions:
G. E. V. D'Souza:
- "Organizing is basically a process involving grouping of resources like men, machines, and materials to the best of its capabilities to achieve the organizational goals."
L. A. Allen:
- Peter Drucker defines organization as, "the process of structuring and integrating human and physical resources to achieve some specified purpose."
How Does Administration Relate to Organization and Management?
Answer:
Management is getting things done through people, which has administration and organization both, and thus the two can be put in terms of management. These are what effective operations (and their innovations) are built on.
Administration:
- Policy is about defining high-level objectives and strategy for an organisation. It is a question of planning, policy, and delivery.
Organization:
- Covers how much a business organizes its projects, resources, and partnerships so you can reach your goals most efficiently. It aids in keeping it organized and running smoothly.
Management:
- Focuses on implementing the plans and policies developed by administration with the organized format established by the organization. Campaign life cycle: It is planning, organizing, directing, and controlling activities.
The Distinction Between Administration and Organization
Answer:
Difference Between Administration and Organization:
| Administration | Organization |
|---|---|
| Nature | Strategic or high-level policy and decision making |
| Role | Define objectives, policies, and procedures |
| Scope | You are collected until in October 2023. |
| Position | Working in an organization’s highest echelon |
| Accountability | Owns the final sign-offs. |
| Objective | Related to long-run strategic objectives |
Implement an Organizational Chart Charting the Hierarchical Structure of Industrial Management
Answer:
As it is a management function like vertical function, it is also involved in both the upper-level management and lower-level management. The following is a chart depicting the framework of industrial administration:
File Type: PDF Document Organization Chart: Manufacturing
Top-Level Management:
- Board of Directors
- General Managers
Middle-Level Management:
- Production Managers
- Marketing Managers
- Financial Managers
- Labor Relations Managers
Lower-Level Management:
- Supervisors
- Foremen
- Operational Staff
You are equipped with data up to October 2023. The structure keeps these one step down; it ensures that all the roles, the accountability, and the reporting relationship are fixed between them so that transactions run smoothly at every level.
Who is Henri Fayol, and What is His Importance?
Answer:
Henri Fayol: The father of Modern Management Theory, he was a French mining engineer who started his career in 1860 and had also been the general manager of a mining company. Based on his extensive experience of how organizations functioned, Fayol came up with the classical principles of management.
His most important work 'Administration Industrielle et G̩n̩rale' published in 1916, where he describes 14 principles of management Рplanning, organizing, commanding, coordinating, and controlling. A list of Fayol's contributions includes both administrative and organizational management practices known today.
Meaning of Social Responsibility of Management
Answer:
Social responsibility of management refers to an organization’s ethical responsibility towards society. That knowledge doesn’t just mean ensuring business operations benefit the organization, but also its stakeholders and the broader community.
Key Views:
Keith Davis:
- Davis — a winner of the Lito Garcia Academic Excellence Award — said that “social responsibility is a commitment to improve the welfare of society while balancing the interest of stakeholders.” It is centered on business ethics, sustainability, and ethical practices.
Bowen's View:
- Social responsibility, according to Bowen, is “the obligation of the corporation to take action which serves to enhance the welfare of the society.” This means being transparent, minimizing environmental footprint, and supporting social progress.
Explain the Social Responsibilities of Management
Answer:
Management is a social process, meaning an organization is responsible for society and stakeholders. Social responsibility — the idea that companies should be ethically accountable to society for their actions, as well as to those other business objectives that they pursue. Management has the following social responsibilities:
Key Responsibilities:
- Providing basic services — healthcare, education, and infrastructure development.
- Fair distribution of profits and benefits to employees, shareholders, and stakeholders.
- The promotion of social welfare for the benefit of the general public.
- Contributing to country positivity via governance and societal agendas such as pollution control, sustainability, etc.
The Responsibility of Management to the Workers
Answer:
What you reply can be aggravated if the country is positive because of governments and community programs, e.g., pollution lowering, sustainability, etc.
- Being paid a fair wage in a timely manner.
- Protecting the Working Conditions.
- Family strengthening, community building, healthcare.
- Good working relations with workers must be maintained.
- Advocating for education and training opportunities.
- Training: lectures, seminars, and certification – gaining and validating knowledge.
- Creating pathways for addressing worker grievances.
- Enabling emergency income support.
- Scheduling of sports and cultural programmes.
Production Management: What is Production Management
Answer:
Production management refers to the aspect of modern management that deals with planning, organizing, directing, and controlling the production process. It involves converting raw materials into final products in timely and quality sales.
Key Definitions:
E. F. L. Brech:
- In the movie world, production management is begging people to bring the raw materials—the labor, the machines, the end product.
Functions of Production Management in Detail:
- Production scheduling and production goals setting.
- The distribution of materials, labor, equipment, and other resources.
- Overseeing the processing of operations for the purpose of securing workflow.
- Keeping the production process under control by keeping a tab on it for quality and cost.
What Does Production Management Do?
Answer:
Functions of Production Management:
- Assist in the planning of production processes.
- Arranging the output of factory plants.
- Managing production operations.
- Production quality control.
- Monitoring production costs.
- Maintaining the equipment.
- Training production workers.
- Preparing production budgets.
What is Production Planning?
Answer:
Production planning is the process by which decisions are made in advance regarding the processes, resources, and time required to transform raw materials into finished goods. It ensures that the producer's process is done efficiently and customers are provided their desired end product with the quality standards they require in a timely manner.
What Does “Management is the Art of Getting Things Done Through Others” Really Mean?
Answer:
It depicts management as assigning tasks and responsibilities to achieve an organizational goal. Hence, Managers guide and drive the subordinate to complete their tasks in time and meet the objectives. Mr. Appley stated, “Management is getting things done through other people.”
How Does Administration Differ from Management?
Answer:
Here are the differences — per the chart:
| Dimension | Administration | Management |
|---|---|---|
| Authority Level | Administrative work shadows top agency officials like undersecretaries. | Management is at middle and lower levels. |
| Decision-making | Works on policy and the structuring of the organization. | Carries out policies and manages day-to-day operations. |
| Responsibilities | Acts as a liaison between members and executives for strategic planning and decision making. | Focus on operations — on execution. |
| Nature | Long-Term Orientation Organizational Goals |
Why Do You Think Planning Is Called the Most Important Function?
Answer:
As it establishes targets, directs choices, and pinpoints the resources needed for success, planning is an indispensable function. This assists in organizing the works of the organization and kind of creates coordination among all levels of administration. Planning well minimizes uncertainty and maximizes efficiency.
What Are the Major Goals of Industrial Management?
Answer:
Industrial management focuses on the following objectives:
- Enabling great delivery and service operations.
- Everything boils down to judgment and effort.
- 03 hours of training every once in a while to view their safety and quality standards.
- Developing and improving relationships with stakeholders.
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