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"

Class No 3: Levels of Management, Managerial skills

Management function pervades across the enterprise and works at all levels. However the position of an individual within the organization's hierarchy determines the nature and content of his or her managerial position. The lowest level of management is called first-line of management which consists of people such as foreman, sales executives etc. The next level of management is called middle-level management which consists of people such as production managers, process engineers etc. Middle management consists of a great bulk of any organization. The next level of management is called Top-Management which the highest powered group in a given organization. In case of a business top management consists of Board of directors, CEO, President etc.

Examples:

SDM Educational Society:

Top Management: Board of Governors

Middle Management: Heads of institutions such as principals/directors

First-Line management : Heads of departments, faculty etc

Managerial skills

Management work demands skills in people. Skill is an ability to translate knowledge into action. The nature of skills needed depends on the work on hand and this itself depends on the level of management. In general three are three categories of skills expected.

Conceptual skills are expected from TOP management. Conceptual skills are those that understand business environments, opportunities that are emerging and conceptualise "business realities" into a business plan

Example: In the 1990's Infosys formulated a new paradigm of business that combines low cost capital, cheap labour, and high profitable market into one profitable model of business called Global Delivery Model

Google came out with a AdSense, Adwords and built a profitable business around that

Human Resources skills are those skills that help managers to get best out of their work force. These include among other things ability to understand people's motives, desires, expectations, tendencies, working styles and to get best performance from them. These skills are required by middle management.

Technical skills are those that help business produce products or services. These skills gained through professional education such as engineering or medicine.