Management Control Systems As An Interdisciplinary Subject
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Management (or managing) is the administration of an organization, whether it is a
business Business is the practice of making one's living or making money by producing or Trade, buying and selling Product (business), products (such as goods and Service (economics), services). It is also "any activity or enterprise entered into for pr ...
, a
nonprofit organization A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...
, or a government body. It is the art and science of managing resources of the business. Management includes the activities of setting the
strategy Strategy (from Greek στρατηγία ''stratēgia'', "art of troop leader; office of general, command, generalship") is a general plan to achieve one or more long-term or overall goals under conditions of uncertainty. In the sense of the "art ...
of an organization and coordinating the efforts of its
employee Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any other ...
s (or of volunteers) to accomplish its objectives through the application of available resources, such as
financial Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of fina ...
,
natural Nature, in the broadest sense, is the physical world or universe. "Nature" can refer to the phenomena of the physical world, and also to life in general. The study of nature is a large, if not the only, part of science. Although humans are p ...
, technological, and
human resources Human resources (HR) is the set of people who make up the workforce of an organization, business sector, industry, or economy. A narrower concept is human capital, the knowledge and skills which the individuals command. Similar terms include m ...
. "Run the business" and "Change the business" are two concepts that are used in management to differentiate between the continued delivery of goods or services and adapting of goods or services to meet the changing needs of customers - see trend. The term "management" may also refer to those people who manage an organization—managers. Some people study management at colleges or universities; major degrees in management includes the Bachelor of Commerce (B.Com.), Bachelor of Business Administration (BBA.),
Master of Business Administration A Master of Business Administration (MBA; also Master's in Business Administration) is a postgraduate degree focused on business administration. The core courses in an MBA program cover various areas of business administration such as accounti ...
(MBA.),
Master in Management The Master of Management (MM, MBM, MIM, MMgt) is a master’s degree comprising one or two years graduate level coursework in business management. As the program is designed for students interested in entering leadership roles, the degree attrac ...
(MSM or MIM) and, for the public sector, the
Master of Public Administration The Master of Public Administration (M.P.Adm., M.P.A., or MPA) is a specialized higher professional post graduate degree in public administration, similar/ equivalent to the Master of Business Administration but with an emphasis on the issues of ...
(MPA) degree. Individuals who aim to become management specialists or experts, management researchers, or professors may complete the
Doctor of Management The Doctor of Management (DM or DMgt) is an applied research doctorate (or professional practice doctorate) with a degree focus in management, leadership, and organizational topics."
(DM), the Doctor of Business Administration (DBA), or the
PhD PHD or PhD may refer to: * Doctor of Philosophy (PhD), an academic qualification Entertainment * '' PhD: Phantasy Degree'', a Korean comic series * ''Piled Higher and Deeper'', a web comic * Ph.D. (band), a 1980s British group ** Ph.D. (Ph.D. albu ...
in Business Administration or Management. In the past few decades, there has been a movement for evidence-based management. Larger organizations generally have three
hierarchical A hierarchy (from Greek: , from , 'president of sacred rites') is an arrangement of items (objects, names, values, categories, etc.) that are represented as being "above", "below", or "at the same level as" one another. Hierarchy is an important ...
levels of managers, in a pyramid structure: * Senior managers such as members of a
board of directors A board of directors (commonly referred simply as the board) is an executive committee that jointly supervises the activities of an organization, which can be either a for-profit or a nonprofit organization such as a business, nonprofit organiz ...
and a
chief executive officer A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...
(CEO) or a
president President most commonly refers to: *President (corporate title) *President (education), a leader of a college or university *President (government title) President may also refer to: Automobiles * Nissan President, a 1966–2010 Japanese ful ...
of an organization sets the strategic goals and policy of the organization and make decisions on how the overall organization will operate. Senior managers are generally executive-level professionals who provide direction to middle management, and directly or indirectly report to them. * Middle managers such as branch managers, regional managers, department managers, and section managers, who provide direction to the front-line managers. They communicate the strategic goals and policy of senior management to the front-line managers. * Line managers such as
supervisor A supervisor, or lead, (also known as foreman, boss, overseer, facilitator, monitor, area coordinator, line-manager or sometimes gaffer) is the job title of a lower-level management position that is primarily based on authority over workers or ...
s and front-line
team leader A team leader is a person who provides guidance, instruction, direction and leadership to a group of individuals (the team) for the purpose of achieving a key result or group of aligned results. Team leaders serves as the steering wheel for a group ...
s, oversee the work of regular employees (or volunteers, in some voluntary organizations) and provide direction on their work. Line managers often perform the managerial functions that are traditionally considered as the core of management. Despite the name, they are usually considered part of the workforce and not part of the organization's management class. In smaller organizations, a manager may have a much wider scope and may perform several roles or even all of the roles commonly observed in a large organization. Social scientists study management as an
academic discipline An academy ( Attic Greek: Ἀκαδήμεια; Koine Greek Ἀκαδημία) is an institution of secondary or tertiary higher learning (and generally also research or honorary membership). The name traces back to Plato's school of philosophy ...
, investigating areas such as social organization,
organizational adaptation Organizational adaptation (sometimes referred to as strategic fit and organizational congruence) is a concept in organization theory and strategic management that is used to describe the relationship between an organization and its environment. The ...
, and
organizational leadership Leadership studies is a multidisciplinary academic field of study that focuses on leadership in organizational contexts and in human life. Leadership studies has origins in the social sciences (e.g., sociology, anthropology, psychology), in humani ...
.


Etymology

The English verb "manage" has its roots by the XV century
French French (french: français(e), link=no) may refer to: * Something of, from, or related to France ** French language, which originated in France, and its various dialects and accents ** French people, a nation and ethnic group identified with Franc ...
verb 'mesnager', which often referred in
equestrian The word equestrian is a reference to equestrianism, or horseback riding, derived from Latin ' and ', "horse". Horseback riding (or Riding in British English) Examples of this are: *Equestrian sports *Equestrian order, one of the upper classes in ...
language "to hold in hand the reins of a horse". Also the Italian term ''maneggiare'' (to handle, especially tools or a horse) is possible. In Spanish, ''manejar'' can also mean to rule the horses. These three terms derive from the two
Latin Latin (, or , ) is a classical language belonging to the Italic branch of the Indo-European languages. Latin was originally a dialect spoken in the lower Tiber area (then known as Latium) around present-day Rome, but through the power of the ...
words ''manus'' (hand) and ''agere'' (to act). The French word for housekeeping, ''ménagerie'', derived from ''ménager'' ("to keep house"; compare ''ménage'' for "household"), also encompasses taking care of domestic animals. ''Ménagerie'' is the French translation of
Xenophon Xenophon of Athens (; grc, wikt:Ξενοφῶν, Ξενοφῶν ; – probably 355 or 354 BC) was a Greek military leader, philosopher, and historian, born in Athens. At the age of 30, Xenophon was elected commander of one of the biggest Anci ...
's famous book '' Oeconomicus'' ( grc-gre, Οἰκονομικός) on household matters and husbandry. The French word ''mesnagement'' (or ''ménagement'') influenced the semantic development of the English word ''management'' in the 17th and 18th centuries.


Definitions

Views on the definition and scope of management include: * Henri Fayol (1841–1925) stated: "to manage is to forecast and to plan, to organise, to command, to co-ordinate and to control." *
Fredmund Malik Fredmund Malik (born September 1, 1944 in Lustenau, Vorarlberg) is an Austrian economist with focus on management science and the founder and chairman of a management consultancy (Malik Management) in St. Gallen. Malik applies systems theory and ...
(1944– ) defines management as "the transformation of resources into utility". * Management is included as one of the factors of production – along with machines, materials and money. * Ghislain Deslandes defines management as "a vulnerable force, under pressure to achieve results and endowed with the triple power of constraint, imitation and imagination, operating on subjective, interpersonal, institutional and environmental levels". * Peter Drucker (1909–2005) saw the basic task of management as twofold:
marketing Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to emph ...
and
innovation Innovation is the practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services. ISO TC 279 in the standard ISO 56000:2020 defines innovation as "a new or changed entity ...
. Nevertheless, innovation is also linked to marketing (product innovation is a central strategic marketing issue). Drucker identifies marketing as a key essence for business success, but management and marketing are generally understood as two different branches of business administration knowledge.


Theoretical scope

Management involves identifying the mission, objective, procedures, rules and manipulation of the
human capital Human capital is a concept used by social scientists to designate personal attributes considered useful in the production process. It encompasses employee knowledge, skills, know-how, good health, and education. Human capital has a substantial ...
of an
enterprise Enterprise (or the archaic spelling Enterprize) may refer to: Business and economics Brands and enterprises * Enterprise GP Holdings, an energy holding company * Enterprise plc, a UK civil engineering and maintenance company * Enterprise ...
to contribute to the success of the enterprise. Scholars have focused on the management of individual, organizational, and inter-organizational relationships. This implies effective
communication Communication (from la, communicare, meaning "to share" or "to be in relation with") is usually defined as the transmission of information. The term may also refer to the message communicated through such transmissions or the field of inquir ...
: an enterprise environment (as opposed to a physical or mechanical mechanism) implies human
motivation Motivation is the reason for which humans and other animals initiate, continue, or terminate a behavior at a given time. Motivational states are commonly understood as forces acting within the agent that create a disposition to engage in goal-dire ...
and implies some sort of successful progress or
system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by its environment (systems), environment, is described by its boundaries, ...
outcome. As such, management is not the manipulation of a mechanism (machine or automated program), not the herding of animals, and can occur either in a legal or in an illegal enterprise or environment. From an individual's perspective, management does not need to be seen solely from an enterprise point of view, because management is an essential function in improving one's
life Life is a quality that distinguishes matter that has biological processes, such as signaling and self-sustaining processes, from that which does not, and is defined by the capacity for growth, reaction to stimuli, metabolism, energ ...
and relationships. Management is therefore everywhere and it has a wider range of application. Communication and a positive endeavor are two main aspects of it either through enterprise or through independent pursuit. Plans,
measurements Measurement is the quantification of attributes of an object or event, which can be used to compare with other objects or events. In other words, measurement is a process of determining how large or small a physical quantity is as compared t ...
, motivational psychological tools, goals, and economic measures (profit, etc.) may or may not be necessary components for there to be management. At first, one views management functionally, such as measuring quantity, adjusting
plan A plan is typically any diagram or list of steps with details of timing and resources, used to achieve an objective to do something. It is commonly understood as a temporal set of intended actions through which one expects to achieve a goal. F ...
s, and meeting goals, but this applies even in situations where planning does not take place. From this perspective, Henri Fayol (1841–1925)considers management to consist of five functions: # planning (forecasting) # organizing # commanding # coordinating # controlling In another way of thinking, Mary Parker Follett (1868–1933), allegedly defined management as "the art of getting things done through people". She described management as a philosophy. Critics, however, find this definition useful but far too narrow. The phrase "management is what managers do" occurs widely, suggesting the difficulty of defining management without circularity, the shifting nature of definitions and the connection of managerial practices with the existence of a managerial cadre or of a
class Class or The Class may refer to: Common uses not otherwise categorized * Class (biology), a taxonomic rank * Class (knowledge representation), a collection of individuals or objects * Class (philosophy), an analytical concept used differentl ...
. One habit of thought regards management as equivalent to "
business administration Business administration, also known as business management, is the administration of a commercial enterprise. It includes all aspects of overseeing and supervising the business operations of an organization. From the point of view of management ...
" and thus excludes management in places outside
commerce Commerce is the large-scale organized system of activities, functions, procedures and institutions directly and indirectly related to the exchange (buying and selling) of goods and services among two or more parties within local, regional, nation ...
, as for example in
charities A charitable organization or charity is an organization whose primary objectives are philanthropy and social well-being (e.g. educational, religious or other activities serving the public interest or common good). The legal definition of a cha ...
and in the
public sector The public sector, also called the state sector, is the part of the economy composed of both public services and public enterprises. Public sectors include the public goods and governmental services such as the military, law enforcement, infra ...
. More broadly, every organization must "manage" its work, people, processes, technology, etc. to maximize effectiveness. Nonetheless, many people refer to university departments that teach management as "
business school A business school is a university-level institution that confers degrees in business administration or management. A business school may also be referred to as school of management, management school, school of business administration, o ...
s". Some such institutions (such as the
Harvard Business School Harvard Business School (HBS) is the graduate business school of Harvard University, a private research university in Boston, Massachusetts. It is consistently ranked among the top business schools in the world and offers a large full-time MBA p ...
) use that name, while others (such as the
Yale School of Management The Yale School of Management (also known as Yale SOM) is the graduate business school of Yale University, a private research university in New Haven, Connecticut. The school awards the Master of Business Administration (MBA), MBA for Executives ...
) employ the broader term "management". English-speakers may also use the term "management" or "the management" as a collective word describing the managers of an organization, for example of a
corporation A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and r ...
. Historically this use of the term often contrasted with the term "labor" – referring to those being managed. But in the present era the concept of management is identified in the wide areas and its frontiers have been pushed to a broader range. Apart from profitable organizations, even non-profit organizations apply management concepts. The concept and its uses are not constrained. Management as a whole is the process of planning, organizing, directing,
leading In typography, leading ( ) is the space between adjacent lines of type; the exact definition varies. In hand typesetting, leading is the thin strips of lead (or aluminium) that were inserted between lines of type in the composing stick to incre ...
and controlling.


Levels

Most organizations have three management levels: first-level, middle-level, and top-level managers. First-line managers are the lowest level of management and manage the work of non-managerial individuals who are directly involved with the production or creation of the organization's products. First-line managers are often called supervisors, but may also be called line managers, office managers, or even foremen. Middle managers include all levels of management between the first-line level and the top level of the organization. These managers manage the work of first-line managers and may have titles such as department head, project leader, plant manager, or division manager. Top managers are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization. These individuals typically have titles such as executive vice president, president, managing director, chief operating officer, chief executive officer, or chairman of the board. These managers are classified in a hierarchy of authority, and perform different tasks. In many organizations, the number of managers in every level resembles a pyramid. Each level is explained below in specifications of their different responsibilities and likely job titles.


Top management

The top or senior layer of management is a small group which consists of the
board of directors A board of directors (commonly referred simply as the board) is an executive committee that jointly supervises the activities of an organization, which can be either a for-profit or a nonprofit organization such as a business, nonprofit organiz ...
(including non-executive directors, executive directors and independent directors), president, vice-president,
CEO A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...
s and other members of the
C-level Corporate titles or business titles are given to corporate officers to show what duties and responsibilities they have in the organization. Such titles are used by publicly and privately held for-profit corporations, cooperatives, non-profit or ...
executives. Different organizations have various members in their C-suite, which may include a
chief financial officer The chief financial officer (CFO) is an officer of a company or organization that is assigned the primary responsibility for managing the company's finances, including financial planning, management of financial risks, record-keeping, and financ ...
, chief technology officer, and so on. They are responsible for controlling and overseeing the operations of the entire organization. They set a "
tone at the top "Tone at the top" is a term that originated in the field of accounting and is used to describe an organization's general ethical climate, as established by its board of directors, audit committee, and senior management. Having good tone at the top ...
" and develop strategic plans, company policies, and make decisions on the overall direction of the organization. In addition, top-level managers play a significant role in the mobilization of outside resources. Senior managers are accountable to the shareholders, the general public and to public bodies that oversee corporations and similar organizations. Some members of the senior management may serve as the public face of the organization, and they may make speeches to introduce new strategies or appear in marketing. The board of directors is typically primarily composed of non-executives who owe a
fiduciary A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. One party, for exampl ...
duty to shareholders and are not closely involved in the day-to-day activities of the organization, although this varies depending on the type (e.g., public versus private), size and culture of the organization. These directors are theoretically liable for breaches of that duty and typically insured under
directors and officers liability insurance Directors and officers liability insurance (also written directors' and officers' liability insurance; often called D&O) is liability insurance payable to the directors and officers of a company, or to the organization itself, as indemnification (re ...
.
Fortune 500 The ''Fortune'' 500 is an annual list compiled and published by ''Fortune'' magazine that ranks 500 of the largest United States corporations by total revenue for their respective fiscal years. The list includes publicly held companies, along ...
directors are estimated to spend 4.4 hours per week on board duties, and median compensation was $212,512 in 2010. The board sets corporate strategy, makes major decisions such as major acquisitions, and hires, evaluates, and fires the top-level manager (
chief executive officer A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...
or CEO). The CEO typically hires other positions. However, board involvement in the hiring of other positions such as the
chief financial officer The chief financial officer (CFO) is an officer of a company or organization that is assigned the primary responsibility for managing the company's finances, including financial planning, management of financial risks, record-keeping, and financ ...
(CFO) has increased. In 2013, a survey of over 160 CEOs and directors of public and private companies found that the top weaknesses of CEOs were " mentoring skills" and "board engagement", and 10% of companies never evaluated the CEO. The board may also have certain employees (e.g.,
internal auditor An internal auditor is an auditor who is appointed by the Board of directors of the company in order to carry out the internal audit function. Generally an employee of the company acts as an internal auditor, whereas some companies appoint an exter ...
s) report to them or directly hire independent contractors; for example, the board (through the audit committee) typically selects the auditor. Helpful skills of top management vary by the type of organization but typically include a broad understanding of competition, world economies, and politics. In addition, the CEO is responsible for implementing and determining (within the board's framework) the broad policies of the organization. Executive management accomplishes the day-to-day details, including: instructions for preparation of department budgets, procedures, schedules; appointment of middle level executives such as department managers; coordination of departments; media and governmental relations; and
shareholder A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal own ...
communication.


Middle management

Consist of
general manager A general manager (GM) is an executive who has overall responsibility for managing both the revenue and cost elements of a company's income statement, known as profit & loss (P&L) responsibility. A general manager usually oversees most or all of ...
s, branch managers and department managers. They are accountable to the top management for their department's function. They devote more time to organizational and directional functions. Their roles can be emphasized as executing organizational plans in conformance with the company's policies and the objectives of the top management, they define and discuss information and policies from top management to lower management, and most importantly they inspire and provide guidance to lower-level managers towards better performance. Middle management is the midway management of a categorized organization, being secondary to the senior management but above the deepest levels of operational members. An operational manager may be well-thought-out by middle management or may be categorized as non-management operate, liable to the policy of the specific organization. The efficiency of the middle level is vital in any organization since they bridge the gap between top level and bottom level staffs. Their functions include: * Design and implement effective group and inter-group work and information systems. * Define and monitor group-level performance indicators. * Diagnose and resolve problems within and among workgroups. * Design and implement reward systems that support cooperative behavior. They also make decisions and share ideas with top managers.


Line management

Line managers include
supervisor A supervisor, or lead, (also known as foreman, boss, overseer, facilitator, monitor, area coordinator, line-manager or sometimes gaffer) is the job title of a lower-level management position that is primarily based on authority over workers or ...
s, section leaders, forepersons and team leaders. They focus on controlling and directing regular employees. They are usually responsible for assigning employees' tasks, guiding and supervising employees on day-to-day activities, ensuring the quality and quantity of production and/or service, making recommendations and suggestions to employees on their work, and channeling employee concerns that they cannot resolve to mid-level managers or other administrators. First-level or "front line" managers also act as role models for their employees. In some types of work, front line managers may also do some of the same tasks that employees do, at least some of the time. For example, in some restaurants, the front line managers will also serve customers during a very busy period of the day. In general, line managers are considered part of the workforce and not part of the organization's proper management despite performing traditional management functions. Front-line managers typically provide: * Training for new employees * Basic supervision * Motivation * Performance feedback and guidance Some front-line managers may also provide career planning for employees who aim to rise within the organization.


Training

Colleges and universities around the world offers bachelor's degrees, graduate degrees, diplomas and certificates in management; generally within their colleges of business, business schools or faculty of management but also in other related departments. In the 2010s era, there has been an increase in online management education and training in the form of electronic
educational technology Educational technology (commonly abbreviated as edutech, or edtech) is the combined use of computer hardware, software, and educational theory and practice to facilitate learning. When referred to with its abbreviation, edtech, it often refer ...
(also called e-learning). Online education has increased the accessibility of management training to people who do not live near a college or university, or who cannot afford to travel to a city where such training is available.


Requirement

While some professions require academic credentials in order to work in the profession (e.g., law, medicine, engineering, which require, respectively the
Bachelor of Law Bachelor of Laws ( la, Legum Baccalaureus; LL.B.) is an undergraduate law degree in the United Kingdom and most common law jurisdictions. Bachelor of Laws is also the name of the law degree awarded by universities in the People's Republic of Chi ...
,
Doctor of Medicine Doctor of Medicine (abbreviated M.D., from the Latin language, Latin ''Medicinae Doctor'') is a medical degree, the meaning of which varies between different jurisdictions. In the United States, and some other countries, the M.D. denotes a profes ...
and
Bachelor of Engineering A Bachelor of Engineering (BEng) or a Bachelor of Science in Engineering (BSE) is an academic undergraduate degree awarded to a student after three to five years of studying engineering at an accredited college or university. In the UK, a Bache ...
degrees), management and administration positions do not necessarily require the completion of academic degrees. Some well-known senior executives in the US who did not complete a degree include
Steve Jobs Steven Paul Jobs (February 24, 1955 – October 5, 2011) was an American entrepreneur, industrial designer, media proprietor, and investor. He was the co-founder, chairman, and CEO of Apple; the chairman and majority shareholder of Pixar; a ...
,
Bill Gates William Henry Gates III (born October 28, 1955) is an American business magnate and philanthropist. He is a co-founder of Microsoft, along with his late childhood friend Paul Allen. During his career at Microsoft, Gates held the positions ...
and
Mark Zuckerberg Mark Elliot Zuckerberg (; born ) is an American business magnate, internet entrepreneur, and philanthropist. He is known for co-founding the social media website Facebook and its parent company Meta Platforms (formerly Facebook, Inc.), o ...
. However, many managers and executives have completed some type of business or management training, such as a Bachelor of Commerce or a
Master of Business Administration A Master of Business Administration (MBA; also Master's in Business Administration) is a postgraduate degree focused on business administration. The core courses in an MBA program cover various areas of business administration such as accounti ...
degree. Some major organizations, including companies, non-profit organizations and governments, require applicants to managerial or executive positions to hold at minimum
bachelor's degree A bachelor's degree (from Middle Latin ''baccalaureus'') or baccalaureate (from Modern Latin ''baccalaureatus'') is an undergraduate academic degree awarded by colleges and universities upon completion of a course of study lasting three to six ...
in a field related to administration or management, or in the case of business jobs, a Bachelor of Commerce or a similar degree.


Undergraduate

At the undergraduate level, the most common business programs are the Bachelor of Business Administration (BBA) and Bachelor of Commerce (B.Com.). These typically comprise a four-year program designed to give students an overview of the role of managers in planning and directing within an organization. Course topics include accounting, financial management, statistics, marketing, strategy, and other related areas. There are many other undergraduate degrees that include the study of management, such as
Bachelor of Arts Bachelor of arts (BA or AB; from the Latin ', ', or ') is a bachelor's degree awarded for an undergraduate program in the arts, or, in some cases, other disciplines. A Bachelor of Arts degree course is generally completed in three or four years ...
degrees with a major in
business administration Business administration, also known as business management, is the administration of a commercial enterprise. It includes all aspects of overseeing and supervising the business operations of an organization. From the point of view of management ...
or management and Bachelor of Public Administration (B.P.A), a degree designed for individuals aiming to work as bureaucrats in the
government jobs A government is the system or group of people governing an organized community, generally a state. In the case of its broad associative definition, government normally consists of legislature, executive, and judiciary. Government is a ...
. Many colleges and universities also offer certificates and diplomas in business administration or management, which typically require one to two years of full-time study. Note that to manage technological areas, one often needs an undergraduate degree in a STEM area.


Graduate

At the graduate level students aiming at careers as managers or executives may choose to specialize in major subareas of management or business administration such as
entrepreneurship Entrepreneurship is the creation or extraction of economic value. With this definition, entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business, which may include other values th ...
,
human resources Human resources (HR) is the set of people who make up the workforce of an organization, business sector, industry, or economy. A narrower concept is human capital, the knowledge and skills which the individuals command. Similar terms include m ...
,
international business International business refers to the trade of goods, services, technology, capital and/or knowledge across national borders and at a global or transnational scale. It involves cross-border transactions of goods and services between two or more ...
,
organizational behavior Organizational behavior (OB) or organisational behaviour is the: "study of human behavior in organizational settings, the interface between human behavior and the organization, and the organization itself".Moorhead, G., & Griffin, R. W. (1995) ...
,
organizational theory Organizational theory refers to the set of interrelated concepts that involve the sociological study of the structures and operations of formal social organizations. Organizational theory also attempts to explain how interrelated units of organiz ...
,
strategic management In the field of management, strategic management involves the formulation and implementation of the major goals and initiatives taken by an organization's managers on behalf of stakeholders, based on consideration of Resource management, resour ...
,
accounting Accounting, also known as accountancy, is the measurement, processing, and communication of financial and non financial information about economic entities such as businesses and corporations. Accounting, which has been called the "languag ...
,
corporate finance Corporate finance is the area of finance that deals with the sources of funding, the capital structure of corporations, the actions that managers take to increase the Value investing, value of the firm to the shareholders, and the tools and anal ...
, entertainment, global management,
healthcare management Health administration, healthcare administration, healthcare management or hospital management is the field relating to leadership, management, and administration of public health systems, health care systems, hospitals, and hospital network ...
,
investment management Investment management is the professional asset management of various securities, including shareholdings, bonds, and other assets, such as real estate, to meet specified investment goals for the benefit of investors. Investors may be institut ...
, sustainability and
real estate Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more general ...
. A
Master of Business Administration A Master of Business Administration (MBA; also Master's in Business Administration) is a postgraduate degree focused on business administration. The core courses in an MBA program cover various areas of business administration such as accounti ...
(MBA) is the most popular professional degree at the master's level and can be obtained from many universities in the United States. MBA programs provide further education in management and leadership for graduate students. Other master's degrees in business and management include Master of Management (MM) and the
Master of Science A Master of Science ( la, Magisterii Scientiae; abbreviated MS, M.S., MSc, M.Sc., SM, S.M., ScM or Sc.M.) is a master's degree in the field of science awarded by universities in many countries or a person holding such a degree. In contrast to ...
(M.Sc.) in business administration or management, which is typically taken by students aiming to become researchers or professors. There are also specialized master's degrees in administration for individuals aiming at careers outside of business, such as the
Master of Public Administration The Master of Public Administration (M.P.Adm., M.P.A., or MPA) is a specialized higher professional post graduate degree in public administration, similar/ equivalent to the Master of Business Administration but with an emphasis on the issues of ...
(MPA) degree (also offered as a
Master of Arts A Master of Arts ( la, Magister Artium or ''Artium Magister''; abbreviated MA, M.A., AM, or A.M.) is the holder of a master's degree awarded by universities in many countries. The degree is usually contrasted with that of Master of Science. Tho ...
in
Public Administration Public Administration (a form of governance) or Public Policy and Administration (an academic discipline) is the implementation of public policy, administration of government establishment (public governance), management of non-profit establ ...
in some universities), for students aiming to become managers or executives in the public service and the Master of Health Administration, for students aiming to become managers or executives in the health care and hospital sector. Management doctorates are the most advanced
terminal degree A terminal degree is a college degree that is the highest level college degree that can be achieved and awarded in a specific academic or professional field. In other cases, it is a degree that is awarded when a candidate completes a certain amou ...
s in the field of business and management. Most individuals obtaining management doctorates take the programs to obtain the training in research methods, statistical analysis and writing academic papers that they will need to seek careers as researchers, senior consultants and/or professors in business administration or management. There are three main types of management doctorates: the
Doctor of Management The Doctor of Management (DM or DMgt) is an applied research doctorate (or professional practice doctorate) with a degree focus in management, leadership, and organizational topics."
(D.M.), the Doctor of Business Administration (D.B.A.), and the Doctor of Philosophy (
PhD PHD or PhD may refer to: * Doctor of Philosophy (PhD), an academic qualification Entertainment * '' PhD: Phantasy Degree'', a Korean comic series * ''Piled Higher and Deeper'', a web comic * Ph.D. (band), a 1980s British group ** Ph.D. (Ph.D. albu ...
) in Business Administration or Management. In the 2010s, doctorates in business administration and management are available with many specializations.


Good practices

While management trends can change so fast, the long-term trend in management has been defined by a market embracing diversity and a rising service industry. Managers are currently being trained to encourage greater equality for minorities and women in the workplace, by offering increased flexibility in working hours, better retraining, and innovative (and usually industry-specific) performance markers. Managers destined for the service sector are being trained to use unique measurement techniques, better worker support and more charismatic leadership styles. Human resources finds itself increasingly working with management in a training capacity to help collect management data on the success (or failure) of management actions with employees.


Evidence-based management

Evidence-based management is an emerging movement to use the current, best evidence in management and
decision-making In psychology, decision-making (also spelled decision making and decisionmaking) is regarded as the Cognition, cognitive process resulting in the selection of a belief or a course of action among several possible alternative options. It could be ...
. It is part of the larger movement towards
evidence-based practices Evidence-based practice (EBP) is the idea that occupational practices ought to be based on scientific evidence. While seemingly obviously desirable, the proposal has been controversial, with some arguing that results may not specialize to indivi ...
. Evidence-based management entails managerial decisions and organizational practices informed by the best available evidence. As with other evidence-based practice, this is based on the three principles of: 1) published peer-reviewed (often in management or social science journals) research evidence that bears on whether and why a particular management practice works; 2) judgement and experience from contextual management practice, to understand the organization and interpersonal dynamics in a situation and determine the risks and benefits of available actions; and 3) the preferences and values of those affected.


History

Some see management as a late-modern (in the sense of late
modernity Modernity, a topic in the humanities and social sciences, is both a historical period (the modern era) and the ensemble of particular socio-cultural norm (social), norms, attitudes and practices that arose in the wake of the Renaissancein the " ...
) conceptualization. On those terms it cannot have a pre-modern history – only harbingers (such as stewards). Others, however, detect management-like thought among ancient
Sumer Sumer () is the earliest known civilization in the historical region of southern Mesopotamia (south-central Iraq), emerging during the Chalcolithic and early Bronze Ages between the sixth and fifth millennium BC. It is one of the cradles of c ...
ian traders and the builders of the pyramids of ancient Egypt. Slave-owners through the centuries faced the problems of exploiting/motivating a dependent but sometimes unenthusiastic or recalcitrant workforce, but many pre-industrial enterprises, given their small scale, did not feel compelled to face the issues of management systematically. However,
innovation Innovation is the practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services. ISO TC 279 in the standard ISO 56000:2020 defines innovation as "a new or changed entity ...
s such as the spread of
Arabic numerals Arabic numerals are the ten numerical digits: , , , , , , , , and . They are the most commonly used symbols to write Decimal, decimal numbers. They are also used for writing numbers in other systems such as octal, and for writing identifiers ...
(5th to 15th centuries) and the codification of
double-entry book-keeping Double-entry bookkeeping, also known as double-entry accounting, is a method of bookkeeping that relies on a two-sided accounting entry to maintain financial information. Every entry to an account requires a corresponding and opposite entry t ...
(1494) provided
tools A tool is an object that can extend an individual's ability to modify features of the surrounding environment or help them accomplish a particular task. Although many animals use simple tools, only human beings, whose use of stone tools dates ba ...
for management assessment, planning and control. * An organisation is more stable if members have the right to express their differences and solve their conflicts within it. * While one person can begin an organisation, "it is lasting when it is left in the care of many and when many desire to maintain it". * A weak manager can follow a strong one, but not another weak one, and maintain authority. * A manager seeking to change an established organization "should retain at least a shadow of the ancient customs". With the changing workplaces of
industrial revolution The Industrial Revolution was the transition to new manufacturing processes in Great Britain, continental Europe, and the United States, that occurred during the period from around 1760 to about 1820–1840. This transition included going f ...
s in the 18th and 19th centuries,
military A military, also known collectively as armed forces, is a heavily armed, highly organized force primarily intended for warfare. It is typically authorized and maintained by a sovereign state, with its members identifiable by their distinct ...
theory and practice contributed approaches to managing the newly popular factories. Given the scale of most commercial operations and the lack of mechanized record-keeping and recording before the industrial revolution, it made sense for most
owners Ownership is the state or fact of legal possession and control over property, which may be any asset, tangible or intangible. Ownership can involve multiple rights, collectively referred to as title, which may be separated and held by different ...
of enterprises in those times to carry out management functions by and for themselves. But with growing size and complexity of organizations, a distinction between owners (individuals, industrial dynasties or groups of
shareholder A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal own ...
s) and day-to-day managers (independent specialists in planning and control) gradually became more common.


Early writing

The field of management originated in ancient China,Ewan Ferlie, Laurence E. Lynn, Christopher Pollitt (2005) ''The Oxford Handbook of Public Management'', p.30. including possibly the first highly centralized bureaucratic state, and the earliest (by the second century BC) example of an administration based on merit through
testing An examination (exam or evaluation) or test is an educational assessment intended to measure a test-taker's knowledge, skill, aptitude, physical fitness, or classification in many other topics (e.g., beliefs). A test may be administered verba ...
.Kazin, Edwards, and Rothman (2010), 142. ''One of the oldest examples of a merit-based civil service system existed' in the imperial bureaucracy of China.'' * * * Some theorists have cited ancient military texts as providing lessons for civilian managers. For example, Chinese general Sun Tzu in his 6th-century BC work ''
The Art of War ''The Art of War'' () is an ancient Chinese military treatise dating from the Late Spring and Autumn Period (roughly 5th century BC). The work, which is attributed to the ancient Chinese military strategist Sun Tzu ("Master Sun"), is com ...
'' recommends (when re-phrased in modern terminology) being aware of and acting on strengths and weaknesses of both a manager's organization and a foe's. The writings of influential Chinese Legalist philosopher
Shen Buhai Shen Buhai (; c. 400c. 337) was a Chinese essayist, philosopher, and politician. He served as Chancellor of the Han state under Marquis Zhao of Han for fifteen years, from 354 BC to 337 BC. A contemporary of syncretist Shi Jiao and Legalist Sha ...
may be considered to embody a rare premodern example of abstract theory of administration. American philosopher Herrlee G. Creel and other scholars find the influence of Chinese administration in Europe by the 12th century. Thomas Taylor Meadows, Britain's consul in
Guangzhou Guangzhou (, ; ; or ; ), also known as Canton () and alternatively romanized as Kwongchow or Kwangchow, is the capital and largest city of Guangdong province in southern China. Located on the Pearl River about north-northwest of Hong Kon ...
, argued in his ''Desultory Notes on the Government and People of China'' (1847) that "the long duration of the Chinese empire is solely and altogether owing to the good government which consists in the advancement of men of talent and merit only," and that the British must reform their civil service by making the institution
meritocratic Meritocracy (''merit'', from Latin , and ''-cracy'', from Ancient Greek 'strength, power') is the notion of a political system in which economic goods and/or political power are vested in individual people based on talent, effort, and achieve ...
. Influenced by the ancient Chinese
imperial examination The imperial examination (; lit. "subject recommendation") refers to a civil-service examination system in Imperial China, administered for the purpose of selecting candidates for the state bureaucracy. The concept of choosing bureaucrats by ...
, the
Northcote–Trevelyan Report The Northcote-Trevelyan Report was a document prepared by Stafford H. Northcote (later to be Chancellor of the Exchequer) and C.E. Trevelyan (then Permanent Secretary at the Treasury) about the British Civil Service. Commissioned in 1853 and pu ...
of 1854 recommended that recruitment should be on the basis of merit determined through competitive examination, candidates should have a solid general education to enable inter-departmental transfers, and promotion should be through achievement rather than "preferment, patronage, or purchase". This led to implementation of
Her Majesty's Civil Service His Majesty's Home Civil Service, also known as His Majesty's Civil Service, the Home Civil Service, or colloquially as the Civil Service is the permanent bureaucracy or secretariat of Crown employees that supports His Majesty's Government, whic ...
as a systematic, meritocratic civil service bureaucracy. Like the British, the development of French bureaucracy was influenced by the Chinese system.
Voltaire François-Marie Arouet (; 21 November 169430 May 1778) was a French Age of Enlightenment, Enlightenment writer, historian, and philosopher. Known by his ''Pen name, nom de plume'' M. de Voltaire (; also ; ), he was famous for his wit, and his ...
claimed that the Chinese had "perfected moral science" and
François Quesnay François Quesnay (; 4 June 1694 – 16 December 1774) was a French economist and physician of the Physiocratic school. He is known for publishing the "Tableau économique" (Economic Table) in 1758, which provided the foundations of the ideas of ...
advocated an economic and political system modeled after that of the Chinese. French civil service examinations adopted in the late 19th century were also heavily based on general cultural studies. These features have been likened to the earlier Chinese model. Various ancient and medieval civilizations produced "
mirrors for princes Mirrors for princes ( la, specula principum) or mirrors of princes, are an educational literary genre, in a loose sense of the word, of political writings during the Early Middle Ages, the High Middle Ages, the late middle ages and the Renaissance. ...
" books, which aimed to advise new monarchs on how to govern.
Plato Plato ( ; grc-gre, Πλάτων ; 428/427 or 424/423 – 348/347 BC) was a Greek philosopher born in Athens during the Classical period in Ancient Greece. He founded the Platonist school of thought and the Academy, the first institution ...
described job specialization in 350 BC, and
Alfarabi Abu Nasr Muhammad Al-Farabi ( fa, ابونصر محمد فارابی), ( ar, أبو نصر محمد الفارابي), known in the West as Alpharabius; (c. 872 – between 14 December, 950 and 12 January, 951)PDF version was a renowned early Isla ...
listed several leadership traits in AD 900. Other examples include the Indian ''
Arthashastra The ''Arthashastra'' ( sa, अर्थशास्त्रम्, ) is an Ancient Indian Sanskrit treatise on statecraft, political science, economic policy and military strategy. Kautilya, also identified as Vishnugupta and Chanakya, is ...
'' by
Chanakya Chanakya (Sanskrit: चाणक्य; IAST: ', ; 375–283 BCE) was an ancient Indian polymath who was active as a teacher, author, strategist, philosopher, economist, jurist, and royal advisor. He is traditionally identified as Kauṭilya o ...
(written around 300 BC), and ''
The Prince ''The Prince'' ( it, Il Principe ; la, De Principatibus) is a 16th-century political treatise written by Italian diplomat and political theorist Niccolò Machiavelli as an instruction guide for new princes and royals. The general theme of ''The ...
'' by Italian author
Niccolò Machiavelli Niccolò di Bernardo dei Machiavelli ( , , ; 3 May 1469 – 21 June 1527), occasionally rendered in English as Nicholas Machiavel ( , ; see below), was an Italian diplomat, author, philosopher and historian who lived during the Renaissance. ...
(c. 1515). Written in 1776 by
Adam Smith Adam Smith (baptized 1723 – 17 July 1790) was a Scottish economist and philosopher who was a pioneer in the thinking of political economy and key figure during the Scottish Enlightenment. Seen by some as "The Father of Economics"——— ...
, a
Scottish Scottish usually refers to something of, from, or related to Scotland, including: *Scottish Gaelic, a Celtic Goidelic language of the Indo-European language family native to Scotland *Scottish English *Scottish national identity, the Scottish ide ...
moral philosopher Ethics or moral philosophy is a branch of philosophy that "involves systematizing, defending, and recommending concepts of right and wrong behavior".''Internet Encyclopedia of Philosophy'' The field of ethics, along with aesthetics, concerns ma ...
, ''
The Wealth of Nations ''An Inquiry into the Nature and Causes of the Wealth of Nations'', generally referred to by its shortened title ''The Wealth of Nations'', is the ''magnum opus'' of the Scottish economist and moral philosopher Adam Smith. First published in 1 ...
'' discussed efficient organization of work through
division of labour The division of labour is the separation of the tasks in any economic system or organisation so that participants may specialise (specialisation). Individuals, organizations, and nations are endowed with, or acquire specialised capabilities, and ...
. Smith described how changes in processes could boost productivity in the manufacture of
pins A pin is a device used for fastening objects or material together. Pin or PIN may also refer to: Computers and technology * Personal identification number (PIN), to access a secured system ** PIN pad, a PIN entry device * PIN, a former Dutch de ...
. While individuals could produce 200 pins per day, Smith analyzed the steps involved in manufacture and, with 10 specialists, enabled production of 48,000 pins per day.


19th century

Classical economists such as
Adam Smith Adam Smith (baptized 1723 – 17 July 1790) was a Scottish economist and philosopher who was a pioneer in the thinking of political economy and key figure during the Scottish Enlightenment. Seen by some as "The Father of Economics"——— ...
(1723–1790) and
John Stuart Mill John Stuart Mill (20 May 1806 – 7 May 1873) was an English philosopher, political economist, Member of Parliament (MP) and civil servant. One of the most influential thinkers in the history of classical liberalism, he contributed widely to ...
(1806–1873) provided a theoretical background to
resource allocation In economics, resource allocation is the assignment of available resources to various uses. In the context of an entire economy, resources can be allocated by various means, such as markets, or planning. In project management, resource allocation ...
, production (economics), and
pricing Pricing is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business's marketing plan. In setting prices, the business will take into account the price at which it could acqui ...
issues. About the same time, innovators like
Eli Whitney Eli Whitney Jr. (December 8, 1765January 8, 1825) was an American inventor, widely known for inventing the cotton gin, one of the key inventions of the Industrial Revolution that shaped the economy of the Antebellum South. Although Whitney hi ...
(1765–1825),
James Watt James Watt (; 30 January 1736 (19 January 1736 OS) – 25 August 1819) was a Scottish inventor, mechanical engineer, and chemist who improved on Thomas Newcomen's 1712 Newcomen steam engine with his Watt steam engine in 1776, which was fun ...
(1736–1819), and
Matthew Boulton Matthew Boulton (; 3 September 172817 August 1809) was an English manufacturer and business partner of Scottish engineer James Watt. In the final quarter of the 18th century, the partnership installed hundreds of Boulton & Watt steam engine ...
(1728–1809) developed elements of technical production such as
standardization Standardization or standardisation is the process of implementing and developing technical standards based on the consensus of different parties that include firms, users, interest groups, standards organizations and governments. Standardization ...
, quality-control procedures, cost-accounting, interchangeability of parts, and work-planning. Many of these aspects of management existed in the pre-1861 slave-based sector of the US economy. That environment saw 4 million people, as the contemporary usages had it, "managed" in profitable quasi-
mass production Mass production, also known as flow production or continuous production, is the production of substantial amounts of standardized products in a constant flow, including and especially on assembly lines. Together with job production and batch ...
before wage slavery eclipsed chattel slavery. Salaried managers as an identifiable group first became prominent in the late 19th century. As large corporations began to overshadow small family businesses the need for personnel management positions became more necessary. Businesses grew into large corporations and the need for clerks, bookkeepers, secretaries and managers expanded. The demand for trained managers led college and university administrators to consider and move forward with plans to create the first schools of business on their campuses.


20th century

At the turn of the twentieth century the need for skilled and trained managers had become increasingly apparent. The demand occurred as personnel departments began to expand rapidly. In 1915, less than one in twenty manufacturing firms had a dedicated personnel department. By 1929 that number had grown to over one-third. Formal management education became standardized at colleges and universities. Colleges and universities capitalized on the needs of corporations by forming business schools and corporate placement departments. This shift toward formal business education marked the creation of a corporate elite in the US. By about 1900 one finds managers trying to place their theories on what they regarded as a thoroughly scientific basis (see
scientism Scientism is the opinion that science and the scientific method are the best or only way to render truth about the world and reality. While the term was defined originally to mean "methods and attitudes typical of or attributed to natural scientis ...
for perceived limitations of this belief). Examples include
Henry R. Towne Henry Robinson Towne (August 24, 1844 – October 15, 1924) was an American mechanical engineer and businessman, known as an early systematizer of management. He donated over 2 million dollars to philanthropy at his death, in 1924. Biography T ...
's ''Science of management'' in the 1890s, Frederick Winslow Taylor's ''
The Principles of Scientific Management ''The Principles of Scientific Management''1911 is a monograph published by Frederick Winslow Taylor. This laid out Taylor's views on principles of scientific management, or industrial era organization and decision theory. Taylor was an American m ...
'' (1911),
Lillian Gilbreth Lillian Evelyn Gilbreth (; May 24, 1878 – January 2, 1972) was an American psychologist, industrial engineer, consultant, and educator who was an early pioneer in applying psychology to time-and-motion studies. She was described in the 1940s ...
's ''Psychology of Management'' (1914), Frank and
Lillian Gilbreth Lillian Evelyn Gilbreth (; May 24, 1878 – January 2, 1972) was an American psychologist, industrial engineer, consultant, and educator who was an early pioneer in applying psychology to time-and-motion studies. She was described in the 1940s ...
's ''Applied motion study'' (1917), and
Henry L. Gantt Henry Laurence Gantt (; May 20, 1861 – November 23, 1919) was an American mechanical engineer and management consultant who is best known for his work in the development of scientific management. He created the Gantt chart in the 1910s. Gant ...
's charts (1910s). J. Duncan wrote the first
college A college (Latin: ''collegium'') is an educational institution or a constituent part of one. A college may be a degree-awarding tertiary educational institution, a part of a collegiate or federal university, an institution offering ...
management
textbook A textbook is a book containing a comprehensive compilation of content in a branch of study with the intention of explaining it. Textbooks are produced to meet the needs of educators, usually at educational institutions. Schoolbooks are textboo ...
in 1911. In 1912
Yoichi Ueno is a Japanese scholar in the fields of management science and industrial psychology and founder of SANNO Institute of Management. He has been called the "''father of Japanese administrative science''". A graduate of the Philosophy Faculty of T ...
introduced
Taylorism Scientific management is a theory of management that Analysis, analyzes and wikt:synthesis#Noun, synthesizes workflows. Its main objective is improving economic efficiency, especially Workforce productivity, labor productivity. It was one of the ...
to
Japan Japan ( ja, 日本, or , and formally , ''Nihonkoku'') is an island country in East Asia. It is situated in the northwest Pacific Ocean, and is bordered on the west by the Sea of Japan, while extending from the Sea of Okhotsk in the north ...
and became the first management consultant of the " Japanese management style". His son Ichiro Ueno pioneered Japanese
quality assurance Quality assurance (QA) is the term used in both manufacturing and service industries to describe the systematic efforts taken to ensure that the product(s) delivered to customer(s) meet with the contractual and other agreed upon performance, design ...
. The first comprehensive theories of management appeared around 1920. The
Harvard Business School Harvard Business School (HBS) is the graduate business school of Harvard University, a private research university in Boston, Massachusetts. It is consistently ranked among the top business schools in the world and offers a large full-time MBA p ...
offered the first
Master of Business Administration A Master of Business Administration (MBA; also Master's in Business Administration) is a postgraduate degree focused on business administration. The core courses in an MBA program cover various areas of business administration such as accounti ...
degree (MBA) in 1921. People like Henri Fayol (1841–1925) and
Alexander Church The Alexander Church ( fi, Aleksanterin kirkko; sv, Alexanderskyrkan) is a stone church in Tampere, Finland, and it is part of the Tampere Cathedral Parish. It is located in the Kaakinmaa district in the city center of Tampere, on the edge of ...
(1866–1936) described the various branches of management and their inter-relationships. In the early 20th century, people like Ordway Tead (1891–1973),
Walter Scott Sir Walter Scott, 1st Baronet (15 August 1771 – 21 September 1832), was a Scottish novelist, poet, playwright and historian. Many of his works remain classics of European and Scottish literature, notably the novels ''Ivanhoe'', ''Rob Roy (n ...
(1869–1955) and J. Mooney applied the principles of
psychology Psychology is the scientific study of mind and behavior. Psychology includes the study of conscious and unconscious phenomena, including feelings and thoughts. It is an academic discipline of immense scope, crossing the boundaries betwe ...
to management. Other writers, such as Elton Mayo (1880–1949), Mary Parker Follett (1868–1933),
Chester Barnard Chester Irving Barnard (November 7, 1886 – June 7, 1961) was an American business executive, public administrator, and the author of pioneering work in management theory and organizational studies. His landmark 1938 book, '' The Functions of th ...
(1886–1961),
Max Weber Maximilian Karl Emil Weber (; ; 21 April 186414 June 1920) was a German sociologist, historian, jurist and political economist, who is regarded as among the most important theorists of the development of modern Western society. His ideas profo ...
(1864–1920), who saw what he called the "administrator" as bureaucrat, Rensis Likert (1903–1981), and
Chris Argyris Chris Argyris (July 16, 1923 – November 16, 2013) was an American business theorist and professor emeritus at Harvard Business School. Argyris, like Richard Beckhard, Edgar Schein and Warren Bennis, is known as a co-founder of organization deve ...
(born 1923) approached the phenomenon of management from a sociological perspective. The 1930s and 1940s saw the development of a
militarization Militarization, or militarisation, is the process by which a society organizes itself for military conflict and violence. It is related to militarism, which is an ideology that reflects the level of militarization of a state. The process of milit ...
trend in management in parts of Eurasia – both the
NKVD The People's Commissariat for Internal Affairs (russian: Наро́дный комиссариа́т вну́тренних дел, Naródnyy komissariát vnútrennikh del, ), abbreviated NKVD ( ), was the interior ministry of the Soviet Union. ...
(in the Soviet Union) and the SS (in the
Greater Germanic Reich The Greater Germanic Reich (german: Großgermanisches Reich), fully styled the Greater Germanic Reich of the German Nation (german: Großgermanisches Reich deutscher Nation), was the official state name of the political entity that Nazi Germany ...
), for example, managed
labor camp A labor camp (or labour camp, see spelling differences) or work camp is a detention facility where inmates are forced to engage in penal labor as a form of punishment. Labor camps have many common aspects with slavery and with prisons (especi ...
s as industrial enterprises using slave labor supervised by uniformed cadres. Military habits persisted in some management circles. Peter Drucker (1909–2005) wrote one of the earliest books on applied management: '' Concept of the Corporation'' (published in 1946). It resulted from
Alfred Sloan Alfred Pritchard Sloan Jr. ( ; May 23, 1875February 17, 1966) was an American business executive in the automotive industry. He was a long-time president, chairman and CEO of General Motors Corporation. Sloan, first as a senior executive and lat ...
(chairman of
General Motors The General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and ...
until 1956) commissioning a study of the organisation. Drucker went on to write 39 books, many in the same vein. H. Dodge, Ronald Fisher (1890–1962), and Thornton C. Fry introduced statistical techniques into management-studies. In the 1940s,
Patrick Blackett Patrick Maynard Stuart Blackett, Baron Blackett (18 November 1897 – 13 July 1974) was a British experimental physicist known for his work on cloud chambers, cosmic rays, and paleomagnetism, winning the Nobel Prize for Physics in 1948. ...
worked in the development of the applied-mathematics
science Science is a systematic endeavor that builds and organizes knowledge in the form of testable explanations and predictions about the universe. Science may be as old as the human species, and some of the earliest archeological evidence for ...
of
operations research Operations research ( en-GB, operational research) (U.S. Air Force Specialty Code: Operations Analysis), often shortened to the initialism OR, is a discipline that deals with the development and application of analytical methods to improve deci ...
, initially for military operations. Operations research, sometimes known as " management science" (but distinct from Taylor's
scientific management Scientific management is a theory of management that analyzes and synthesizes workflows. Its main objective is improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science to the engineer ...
), attempts to take a scientific approach to solving decision-problems, and can apply directly to multiple management problems, particularly in the areas of
logistics Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics manages the flow of goods between the point of origin and the point of consumption to meet the requirements of ...
and operations. Some of the later 20th-century developments include the theory of constraints (introduced in 1984),
management by objectives Management by objectives (MBO), also known as management by planning (MBP), was first popularized by Peter Drucker in his 1954 book ''The Practice of Management''.Drucker, P., ''The Practice of Management'', Harper, New York, 1954; Heinemann, London ...
(systematised in 1954), re-engineering (early 1990s), Six Sigma (1986),
management by walking around The management by wandering around (MBWA), also management by walking around,"What is management by walking around (MBWA)", BusinessDictionary.com, 2010, webpage: . refers to a style of business management which involves managers wandering around ...
(1970s), the Viable system model (1972), and various information-technology-driven theories such as
agile software development In software development, agile (sometimes written Agile) practices include requirements discovery and solutions improvement through the collaborative effort of self-organizing and cross-functional teams with their customer(s)/ end user(s), ad ...
(so-named from 2001), as well as group-management theories such as Cog's Ladder (1972) and the notion of "thriving on chaos" (1987). As the general recognition of managers as a class solidified during the 20th century and gave perceived practitioners of the art/science of management a certain amount of prestige, so the way opened for popularised systems of management ideas to peddle their wares. In this context many
management fad Management fad is a term used to characterize a change in philosophy or operations implemented by a business or institution. The term is subjective and tends to be used in a pejorative sense, as it implies that such a change is being implemented ...
s may have had more to do with pop psychology than with scientific theories of management. Business management includes the following branches: # financial management #
human resource management Humans (''Homo sapiens'') are the most abundant and widespread species of primate, characterized by bipedalism and exceptional cognitive skills due to a large and complex brain. This has enabled the development of advanced tools, culture, ...
# Management cybernetics #
information technology management Information technology management or IT management is the discipline whereby all of the information technology resources of a firm are managed in accordance with its needs and priorities. Managing the responsibility within a company entails many o ...
(responsible for management information systems ) # marketing management # operations management and
production Production may refer to: Economics and business * Production (economics) * Production, the act of manufacturing goods * Production, in the outline of industrial organization, the act of making products (goods and services) * Production as a stati ...
management #
strategic management In the field of management, strategic management involves the formulation and implementation of the major goals and initiatives taken by an organization's managers on behalf of stakeholders, based on consideration of Resource management, resour ...


21st century

In the 21st century observers find it increasingly difficult to subdivide management into functional categories in this way. More and more processes simultaneously involve several categories. Instead, one tends to think in terms of the various processes, tasks, and objects subject to management. Branches of management theory also exist relating to
nonprofits A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...
and to government: such as
public administration Public Administration (a form of governance) or Public Policy and Administration (an academic discipline) is the implementation of public policy, administration of government establishment (public governance), management of non-profit establ ...
, public management, and
educational management Educational management refers to the administration of the education system in which a group combines human and material resources to supervise, plan, strategise, and implement structures to execute an education system. Education is the equippin ...
. Further, management programs related to civil-society organizations have also spawned programs in nonprofit management and social entrepreneurship. Note that many of the assumptions made by management have come under attack from business-ethics viewpoints, critical management studies, and
anti-corporate activism Anti-corporate activism refers to the idea of activism that is directed against the private sector, and specifically against larger corporations. It stems from the idea that the activities and impacts of big business are detrimental to the pub ...
. As one consequence,
workplace democracy Workplace democracy is the application of democracy in various forms (examples include voting systems, debates, democratic structuring, due process, adversarial process, systems of appeal) to the workplace. It can be implemented in a variety of ...
(sometimes referred to as Workers' self-management) has become both more common and more advocated, in some places distributing all management functions among workers, each of whom takes on a portion of the work. However, these models predate any current political issue, and may occur more naturally than does a
command hierarchy A command hierarchy is a group of people who carry out orders based on others' authority within the group. It can be viewed as part of a power structure, in which it is usually seen as the most vulnerable and also the most powerful part. Milit ...
. All management embraces to some degree a democratic principle—in that in the long term, the majority of workers must support management. Otherwise, they leave to find other work or go on strike. Despite the move toward workplace
democracy Democracy (From grc, δημοκρατία, dēmokratía, ''dēmos'' 'people' and ''kratos'' 'rule') is a form of government in which the people have the authority to deliberate and decide legislation (" direct democracy"), or to choose gov ...
, command-and-control organization structures remain commonplace as ''de facto'' organization structures. Indeed, the entrenched nature of command-and-control is evident in the way that recent layoffs have been conducted with management ranks affected far less than employees at the lower levels. In some cases, management has even rewarded itself with bonuses after laying off lower-level workers. According to leadership-academic
Manfred F.R. Kets de Vries Manfred F.R. Kets de Vries is a Dutch management scholar and psychoanalyst, consultant, and professor of leadership development and organizational change at INSEAD. His research focuses on leadership and the dynamics of individual and organizati ...
, a contemporary senior-management team will almost inevitably have some
personality disorders Personality disorders (PD) are a class of mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating from those accepted by the individual's culture ...
.


Nature of work

In profitable organizations, management's primary function is the satisfaction of a range of stakeholders. This typically involves making a profit (for the shareholders), creating valued products at a reasonable cost (for customers), and providing great employment opportunities for employees. In case of nonprofit management, one of the main functions is, keeping the faith of donors. In most models of management and
governance Governance is the process of interactions through the laws, social norm, norms, power (social and political), power or language of an organized society over a social system (family, tribe, formal organization, formal or informal organization, a ...
, shareholders vote for the
board of directors A board of directors (commonly referred simply as the board) is an executive committee that jointly supervises the activities of an organization, which can be either a for-profit or a nonprofit organization such as a business, nonprofit organiz ...
, and the board then hires senior management. Some organizations have experimented with other methods (such as employee-voting models) of selecting or reviewing managers, but this is rare.


Topics


Basics

According to Fayol, management operates through five basic functions: planning, organizing, commanding, coordinating and controlling. * Planning: Deciding what needs to happen in the future and generating plans for action (deciding in advance). * Organizing (or staffing): Making sure the human and nonhuman resources are put into place. * Commanding (or leading): Determining what must be done in a situation and getting people to do it. * Coordinating: Creating a structure through which an organization's goals can be accomplished. * Controlling: Checking progress against plans.


Basic roles

* Interpersonal: roles that involve coordination and interaction with employees. Figurehead, leader, liaison * Informational: roles that involve handling, sharing, and analyzing information. Nerve centre, disseminator, spokesperson * Decision: roles that require decision-making. Entrepreneur, negotiator, allocator, disturbance handler


Skills

Management skills include: * Political: used to build a power base and to establish connections. *
Interpersonal The concept of interpersonal relationship involves social associations, connections, or affiliations between two or more people. Interpersonal relationships vary in their degree of intimacy or self-disclosure, but also in their duration, in t ...
: used to communicate,
motivate Motivation is the reason for which humans and other animals initiate, continue, or terminate a behavior at a given time. Motivational states are commonly understood as forces acting within the agent that create a disposition to engage in goal-dire ...
, mentor and delegate. * Diagnostic: ability to visualize appropriate responses to a situation. *
Leadership Leadership, both as a research area and as a practical skill, encompasses the ability of an individual, group or organization to "lead", influence or guide other individuals, teams, or entire organizations. The word "leadership" often gets view ...
: ability to communicate a vision and inspire people to embrace that vision. **
cross-cultural leadership Cross-cultural psychology attempts to understand how individuals of different cultures interact with each other. Along these lines, cross-cultural leadership has developed as a way to understand leaders who work in the newly Globalization, globali ...
: ability to understand the effects of culture on leadership style. * Behavioral: perception towards others, conflict resolution, time-management, self-improvement, stress management and resilience, patience, clear communication.


Implementation of policies and strategies

* All policies and strategies must be discussed with all managerial personnel and staff. * Managers must understand where and how they can implement their policies and strategies. * An action plan must be devised for each department. * Policies and strategies must be reviewed regularly. * Contingency plans must be devised in case the environment changes. * Top-level managers should carry out regular progress assessments. * The business requires team spirit and a good environment. * The missions, objectives, strengths and weaknesses of each department must be analyzed to determine their roles in achieving the business's mission. * The forecasting method develops a reliable picture of the business's future environment. * A planning unit must be created to ensure that all plans are consistent and that policies and strategies are aimed at achieving the same mission and objectives.


Policies and strategies in the planning process

* They give mid and lower-level managers a good idea of the future plans for each department in an organization. * A framework is created whereby plans and decisions are made. * Mid and lower-level management may add their own plans to the business's strategies.


See also

*
Certificate in Management Studies Certificate in Management Studies (CMS) also referred as Certificate in Management, Graduate Certificate in Management, Masters Entry Certificate in Management, is a UK undergraduate qualification normally comprising 3-4 modules of study in the are ...
*
Engineering management Engineering management is the application of the practice of management to the practice of engineering. Engineering management is a career that brings together the technological problem-solving ability of engineering and the organizational, admini ...
*
Outline of business management The following outline is provided as an overview of and topical guide to management: Business management – management of a business. Business management rule #1 is delegation, assign the best qualified people to each position and trust ...


References


External links

* * * {{Authority control Leadership Organizational theory Majority–minority relations