Management – Scope & Functions

Scope of Management

It is difficult to precisely state the scope of management. However, the management includes the following scopes:

(1) Functional areas of management:

Financial Management includes forecasting, cost control, management accounting, budgetary control, statistical control, financial planning etc.

Human Resource Management covers the various aspects to the employees of the organisation such as recruitment, training, transfers, promotions, retirement, terminations, remuneration, labour welfare and social security, industrial relations etc.

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Marketing Management deals with marketing of goods, sales promotion, advertisement and publicity, channels of distribution market research etc.

Production Management includes production planning, quality control and inspection, production techniques etc.

Material Management includes purchase of materials, issue of materials, storage of materials, maintenance of records, materials control etc.

Purchasing Management includes inviting tenders for raw materials, placing orders, entering into contracts etc.

Maintenance Management relates to the proper care and maintenance of the buildings, plant and machinery etc.

Office management is concerned with office layout, office staffing and equipment of the office.

(ii) Subject-matter of management:

Management is considered as a continuing activity made up of basic management functions, such as planning, organising, staffing, directing and controlling. These components form the subject-matter of management.

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 (iii) Management is an inter-disciplinary approach:

Though management is regarded as a separate discipline, for the correct application of the management principles, study of commerce, economics, sociology, psychology, and mathematics are very essential. The science of management draws ideas and concepts from a number of disciplines making it a multi-disciplinary subject.

 (iv) Principles of management:

The principles of management are of universal application. These principles are applicable to any group activity undertaken for the achievement of some common goals.

 (V) Management is an agent of change:

The techniques of management can be improved by proper research and development.

(vi) The essentials of management:

The essentials of management include scientific method, human relations and quantitative techniques.

Nature / Characteristics / Features of Management

An examination of the many definitions and contributions to the subject of management by famous philosophers and authors reveals that management has a certain essence. The following are the most important managerial characteristics:

1. Management is multidisciplinary in nature

Management is a multidisciplinary field of study. It incorporates concepts and ideas from a variety of disciplines, including economics, statistics, mathematics, psychology, sociology, and anthropology, among others. Management’s boundaries are not as precise as those of any other physical science. The ongoing discovery of many additional components of commercial enterprise may help to grow it. As a result, the standing of management as a discipline is elevated in the same way.

2. Management is a continuous process

Management is a term that refers to a process, function, or action. This procedure will continue until the administration’s goals have been met. The planning, organising, directing, and regulating of resources are all part of the management process. An organization’s resources (personnel and money) should be utilised to the best benefit of the organisation and the goals to be attained. In the absence of any other essential management functions, no one’s management function can deliver any outcomes. As a result, management is a never-ending process.

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3. Management is a universal activity

4. Management is a Science as well as an Art

Because there are definite management concepts, management is an art. It’s also a science since preset goals may be reached by using the concepts.

Management is both a science and an art. It is an art in the sense that a person’s ability to manage is a talent. In another sense, management is a science since it involves the development of specific principles or rules that may be used in a setting where a collection of activities is coordinated.

5. Management is dynamic and not static

Management ideas are dynamic rather than static. It must alter in response to societal developments. Management is not a static entity. New approaches are developed and implemented by management in the fast-changing corporate sector. Management shifts in response to societal changes. The shifting commercial environment has resulted in societal transformation.

 6. Management is a Profession

Management is progressively becoming a profession because established management ideas are being used in practise, it requires specialised training, and it is guided by an ethical code derived from societal duties.

Management is a profession because it exhibits the characteristics of one. In this profession, a wealth of information is transmitted and shared, and management follows suit. The specified management concepts are put into effect.

7. Management is a group activity

Only when a group of people are working toward a shared goal can management emerge. The focus of management is always on collective efforts rather than individual initiatives. Management plans, organises, coordinates, directs, and regulates the collective effort in order to fulfil the organization’s goals.

Management is a set of activities aimed at making the best use of existing resources for production. The term “resources” refers to the organization’s men, money, supplies, and machinery.

A system may be described as a collection of interconnected pieces that work together to form a whole. The right to command people in order to complete a specific course of organisational activity might be characterised as authority.

Individuals serve as the cornerstones of management. As a member of the organisation, an individual has some objectives. There might be a contradiction between his personal objectives and what management expects of him. Management resolves such conflicts by ensuring that individual ambitions and organisational expectations are balanced.

Many people have the authority to make choices and affect the behaviour of their subordinates. The objective of exercising authority is to monitor and supervise the actions of subordinates. According to the organisation chart and societal conventions, superiors are the sources of authority. The use of authority depends on the user’s personality traits and the behaviour of the person over whom it is exercised.

8. Management aims at obtaining wealthy results

The major responsibility of a manager is to ensure effective performance via planning, direction, and control. The management is intended to bring about the desired outcomes. The economic purpose of a manager is to make rational use of existing resources in order to maximise profit.

9. Management implies skill and experience in getting things done through people

Management entails delegating tasks to others. Without recruiting cooperation and gaining favourable responses from “people,” the economic function of generating a lucrative return cannot be carried out.

A manager does not do the work himself; instead, he arranges for others to do it. “Management is the art of getting things done through and with people in officially organised organisations,” said Knootz and O’Donnel.

10. Management is a system of authority

The ability to compel people to perform in a certain way is referred to as “authority.” Management establishes a set of standard rules and procedures that must be followed by all employees.

11. Management is intangible

It is invisible to the naked eye. Only the quality of the organisation and the outcomes (earnings, higher productivity, etc.) can demonstrate it.

12. Management implies good leadership

A manager must be able to lead and influence subordinates to do the required actions. The ability of managers to affect the behaviour of their subordinates is referred to as high-order management.
The ability to lead is developed in those who work at the highest levels of management. “Management is the function of executive leadership everywhere,” says R.C. Davis.

13. Management achieving pre-determined objectives

An organization’s objectives are clearly stated in a management meeting with predetermined objectives. Every managerial action leads to the accomplishment of pre-determined goals.

14. Organised activities

Management is a collection of well-organized tasks. A group can be constituted into both a public limited corporation and a regular club. Each organisation has its own set of goals. Only a small number of people will be able to attain these goals. To achieve the goals, these individuals’ activities should be organised in a methodical manner. The objectives cannot be met unless structured actions are taken.

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15. Management is a factor in production

Management is a collection of well-organized tasks. A group can be constituted into both a public limited corporation and a regular club. Each organisation has its own set of goals. Only a small number of people will be able to attain these goals. To achieve the goals, these individuals’ activities should be organised in a methodical manner. The objectives cannot be met unless structured actions are taken. In the event of large company units, management is in charge of coordination. As a result, management is considered one of the production variables. Whatever fast economic and social progress occurred following World War II, it occurred as a result of the deliberate and purposeful effort of improving managers and management, says Peter F. Drucker. Development is a matter of human energy, not economic wealth, and the role of management is to generate human energy. Management is the catalyst for change, and development is the result. “

16. Management is a purposeful activity

Management is concerned with achieving an organization’s goals. The functions of planning, organising, staffing, directing, managing, and decision-making are used to attain these goals. Every employee is given a clear understanding of the organization’s goals.

17. Management is a distinct entity

The management of a company is separate from its operational activity. The essence of the functions is “to do,” but the nature of management is “how to get things done.” Working as a manager necessitates a certain level of skill and knowledge.

18.  Management aims at maximising profit

The existing resources are effectively utilised to achieve the intended outcomes. The results should be the maximising profit or growing by the economic function of a manager.

19.  Decision-making

Every day, management has to make a number of decisions. Only when there are alternative courses of action is it necessary to make a decision. There is no need for decision-making if there is just one route of action. The performance of an organisation is determined by the quality of the manager’s decisions. The success or failure of an organisation depends upon the degree of proper choice made by the management.

20.  Management as a class or a team

A class may be described as a collection of people who have similar qualities and work for the same goals. In a society, engineers and physicians are classified as a class. Each and every doctor has the same life goals. Management personnel, like engineers and doctors, have similar aspirations to achieve corporate goals.

21.  Management as a career

A class may be described as a collection of people who have similar qualities and work for the same goals. In society, engineers and physicians are classified as a class. Each and every doctor has the same life goals. Management personnel, like engineers and doctors, have similar aspirations to achieve corporate goals.

22.  Direction and control

A manager has the ability to guide and control his subordinates in the completion of a task. In the lack of direction and control, he will fail to fulfil the business objectives if the available resources are not adequately utilised. In general, direction and control are concerned with human-effort activities.

23.  Management is needed at all levels

Management functions are shared by all levels of an organisation. Top executives are in charge of planning, organising, directing, controlling, and making decisions. The lower-level supervisor likewise performs the same tasks.

Management scholars have their own classification system for management functions. Some researchers add a few functionalities while removing others. The most significant managerial functions are briefly outlined here.

Functions of Management

The major 5 functions of management involves :

1. Planning 

2. Organising 

3. Staffing 

4. Directing 

5. Controlling

Planning

The primary job of management is planning. Nothing can be accomplished without forethought. Planning is the first step in writing a book. In a nutshell, planning is choosing ahead of time what will be done in the near future. In the corporate sector, the organization must meet its goals.

The organization plans what will be done, when it will be done, how it will be done, and by whom it will be done in order to attain its goals. “Planning pervades management,” argues Messie.

“Planning is a constructive examination of future demands so that current activities may be altered in light of the defined objective,” remarked George R. Terry. It is deli-berate conscious research that is utilised to establish the design and ordered sequence of actions that will be employed to achieve the goals.

Most individual or collective efforts are made by determining what will be done, where it will be done, how it will be done, and who will do it before any operational activity takes place.”

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Simply put, planning entails looking forward. It’s the process of getting ready for the future. Planning well leads to effective management.

Effective planning gives solutions to problems such as “What should I do?” and “How should I proceed?” When should you act? What should I do? What is to be done?
The following activities are part of the planning process:
(i) Determination of the organization’s aim.
(ii) Creating policies, regulations, and processes for the company
(iii) Making predictions about the future based on previous and current events.

Organising
The division of work in groups or sections for effective performance is referred to as organising. The organisation offers all of the resources required to complete the task. As the company grew, the organisation assumed responsibility for establishing new divisions under the supervision of different managers. As a result, the company splits the overall workload and coordinates all actions based on authority relationships.

Furthermore, organising specifies each person’s place within the organisation and the channels via which information should flow. The management would decide who should report to whom and how they should report. By delegating appropriate power and responsibility to all members of an organization’s workforce, organising creates a pleasant working environment.

Henry Fayol says that “organization is of two types,” he says, “organization of the human factor and organization of the material factor.” Allocation of labour to people who are most suited, as well as authority and responsibility, are all covered by human factor organization.

The material factor’s organization includes the use of raw resources, plants, machinery, and so on. “Organising consists of purposeful coordination of individuals towards a desired objective,” say Knootz and O’Donnell.

Staffing
Selection and placement of qualified individuals is part of the staffing role. In other words, staffing is the process of putting the appropriate people in the proper roles. Selection of appropriate employees, training of those in need, promotion of the best, retirement of the elderly, performance assessment of all workers, and suitable compensation of personnel are all aspects of staffing. The proper performance of the personnel function is critical to the success of any business.

“The management function of staffing comprises manning the organisational structure via adequate and effective selection, assessment, and development of employees to perform the responsibilities established into the structure,” according to Harold Knootz and Cyril O’Donnell.

The hiring process entails choosing applicants for open jobs, determining pay, training, and developing them to perform organisational duties effectively. The manager is in charge of job analysis, job descriptions, and other aspects of the staffing function.

Directing / Leading
Leading, overseeing, communicating, and inspiring subordinates in their work are all part of the function of directing. Three major sub functions of directing are motivation, leadership, and communication. Workers’ performance is improved when they are motivated.

Communication delivers accurate information to subordinates, allowing for better and more effective administration. The method through which a manager directs and influences the work of his subordinates is known as leadership.

The function of Direction is when a work’s true performance begins. The planning, organising, and staffing activities are all involved with laying the groundwork for achieving organisational goals. The guidance, on the other hand, is concerned with teaching the workers how to do the tasks that have been allocated to them.

Employee direction involves employee guidance, monitoring, and motivation. “Directing covers the overall method in which a manager impacts the conduct of his subordinates,” according to Joseph Massie. After all preparations have been finished, it is a manager’s final activity in encouraging others to act.”

Controlling
The controlling function guarantees that the goals attained are in line with the goals set forth in advance. If there is any divergence, necessary remedial action may be done.

When an organisation has a set standard, control is fairly simple. Economy, flexibility, comprehension, and appropriateness to organisational demands are all qualities of a successful control system.

“Control,” says Prof. Theo Haimann, “is the process of checking to see if adequate progress is being made toward the objectives and aims, and acting, if required, to remedy any divergence.” “Control consists in confirming if everything occurs in accordance with the plan selected, the directions provided, and the principles issued,” says Henry Fayol.

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Controlling is comparing and contrasting operations with specified criteria. It’s the process of verifying that the actual actions match the activities that were planned.

The steps in the controlling process are as follows:
(i) Establishing guidelines.
(ii) Keeping track of present performance.
(iii) Assessing this performance against established benchmarks.
(iv) When a deviation is found, remedial steps are taken.

The other functions of of management involves :

Co-ordinating

Organizing function divides all actions into groups or sections. Now, such a collection of activities is coordinated in order to achieve an organization’s goals. Coordination difficulty is determined by the organisation.

The complexity of coordination increases as the size of the organisation grows. “The last coordination occurs when employees perceive how their occupations contribute to the enterprise’s dominant aims,” according to Knootz and O’Donnell. This is a lack of information and awareness of the company’s goals.”

Motivating

The objectives are met with the assistance of motivators. Motivation entails raising the speed with which a task is completed and developing workers’ motivation to do so. An astute leader does this.

Workers expect a pleasant working environment, fair treatment, monetary or non-monetary incentives, effective communication, and a gentlemanly demeanour. “Motivati is the process of indoctrinating employees with unity of purpose and the necessity to maintain a continual, harmonious connection,” says Earl P. Strong.

Innovation

Innovation is the process of preparing people and organisations to adapt to changes in the commercial environment. In the business, modifications are done on a regular basis. Consumers are pleased as a result of innovation.

New material, new goods, new manufacturing procedures, new packaging, new product design, and cost reduction are all examples of innovation.

Representation

A manager must behave as a firm representative. Customers, suppliers, government authorities, banks, financial institutions, trade unions, and others are among the people he interacts with. Every manager has a responsibility to maintain positive relationships with others.

Decision-making

Every day, every employee in an organisation must make a number of decisions. Decision-making is important for an organization’s seamless operation.

Communication

The transmission of human thoughts, attitudes, or opinions from one person to another is known as communication. Workers are told what has to be done, where it should be done, how it should be done, and when it should be done. Communication aids in job control and activity coordination.

Conclusion

The fundamental responsibilities of management include planning, organising, staffing, directing, co-ordinating, motivating or actuating, and controlling. Management’s ancillary tasks include innovation, representation, decision-making, and communication.

Functions of management by top authors are :
Forecasting, planning, organising, commanding, co-ordinating, and managing are the duties of management, according to Henry Fayol. Management functions are classified by Luther Gullik as follows:

POSDCORB,

where – P stands for Planning,

O for Organising,

S for Staffing,

D for Directing,

Co for co-ordinating,

R for Reporting and

B for Budgeting.

Planning, organising, staffing, leading, and controlling are among the managerial activities, according to Harold Koontz and Cyrill O’Donnel.

George Terry is concerned with management activities such as planning, organising, actuating, and controlling.

Tennenbuam et al. categorise managerial functions as planning, organising, and controlling.

G.E.’s Harold Smiddy divides managerial functions into four categories: planning, organising, integrating, and measuring (abbreviated as POIM).

Planning, motivation, coordination, and control are the duties of management according to E.F.L. Brech.

Management duties, according to Lawrence A. Appley, include planning, executing, and controlling.

Forecasting, planning, control, motivating, and coordination are the functions of management, according to L. Hall.

Planning, organising, staffing, control, communication, and direction are the duties of management, according to Massic.

Management tasks include organisation, coordination, administration, and leadership, according to Mary Cushing Nillas.

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