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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, 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, technological, and human resources. "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 (MBA.), Master in Management (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 (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 (CEO) or a president 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 leaders, 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, 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 ...
.


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 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 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'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 and innovation. 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 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: 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 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 plans, 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. 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, 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. 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) 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. 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" 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 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.
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 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 auditors) 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 managers, 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 and Bachelor of Engineering 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 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 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 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 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, human resources,
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. A Master of Business Administration (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 (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 in Public Administration 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 degrees 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 (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 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) 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, innovations 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 revolutions in the 18th and 19th centuries, military 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 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.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'' 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 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, 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. Influenced by the ancient Chinese imperial examination, the Northcote–Trevelyan Report 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 as a systematic, meritocratic civil service bureaucracy. Like the British, the development of French bureaucracy was influenced by the Chinese system. Voltaire 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" books, which aimed to advise new monarchs on how to govern. Plato described job specialization in 350 BC, and Alfarabi 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 (written around 300 BC), and '' The Prince'' by Italian author Niccolò Machiavelli (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, '' The Wealth of Nations'' 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, 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 (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 Quality control (QC) is a process by which entities review the quality of all factors involved in production. ISO 9000 defines quality control as "a part of quality management focused on fulfilling quality requirements". This approach plac ...
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'' (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 management textbook 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 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 degree (MBA) in 1921. People like Henri Fayol (1841–1925) and Alexander Church (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 (1869–1955) and J. Mooney applied the principles of psychology to management. Other writers, such as Elton Mayo (1880–1949), Mary Parker Follett (1868–1933), Chester Barnard (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 trend in management in parts of Eurasia – both the NKVD (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 (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 worked in the development of the applied-mathematics science of operations research, 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 and operations. Some of the later 20th-century developments include the theory of constraints (introduced in 1984), management by objectives (systematised in 1954), re-engineering (early 1990s), Six Sigma (1986), management by walking 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 fads 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 (responsible for management information systems ) # marketing management # operations management and production 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 management, and educational management. 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. As one consequence, workplace democracy (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, 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.


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, 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, mentor and delegate. * Diagnostic: ability to
visualize ''Visualize'' is a video release by Def Leppard. A compilation of promo videos, interviews, and concert footage. On DVD, it is bundled with '' Video Archive''. It won a 1993 Metal Edge Readers' Choice Award for "Best Home Video."Metal Edge, June ...
appropriate responses to a situation. * Leadership: 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 *
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