Class 4: Management as a process.............. Revision

Management is also seen from "process" perspective. In the real world situations management functions do not necessarily follow a strict sequence - Planning through controlling. These functions could play on each other and many of them- planning, organizing in a dynamic manner. Changes in planning may demand alternatives in organizing and feedback from control function may lead to changes in planning stage. Hence management can be regarded as a process in which different functions interplay among themselves creating a circular cause and effect phenomenon.

The terms Administration and management are some times used interchangeably. However some experts do differentiate between them. According to them administration involves "thinking" and is concerned with things such as policy making etc. Management is about "doing", "executing" or "carrying out" actions implied by administration. As such they identify two different processes- administrative management and operative management. Peter Drucker is of opinion that management is used when process is sensitive to "economic consequences" while administration is used when economic matters are not of prime concerns such as military and government processes.

Management is a behavioural science and as such is not exact in its predictions. It is more like political science or psychology than physics. Management is also not a profession in the true sense of the word since entry into professional management does not require any formal qualification in management. This is in contrast to medical or law profession where basic qualification is a must.

A successful business needs to be transferred to next generation sooner or later. This is called "succession". If a business is transferred to a family member then it is called "family management" and on the other hand, if an outside professional assumes the reins of the business it is called "professional management"

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