Management, its evolution, levels and approaches to management

1. Management, its evolution, levels and approaches to management

2. Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively.

3. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal.

4. WHAT IS MANAGEMENT? The stem of the word is manage, which according to Webster’s Dictionary is a verb meaning “to control the movement or behavior of, to lead or direct, or to succeed in accomplishing” (Allee, 1990).

5. WHAT IS MANAGEMENT? According to Tootelian and Gaedeke (1993), management is “a process which brings together resources and unites them in such a way that, collectively, they achieve goals or objectives in the most efficient manner possible.”

6. Principles of management: • Purposefulness - any activity at the enterprise should be directed on achievement of specific goals and execution of the tasks • Taking into account of requirements and interests - this principle urged to satisfy requirements and interests of workers for the purpose of enterprise goal achievement on motivation bases • Hierarchy - an arrangement of administrative posts in organizational structure since bottom level of management and finishing the higher • Interdependence - the organisation consists of internal factors (The purposes, structure, technology, workers, tasks, resources) which are closely connected among themselves. • Dynamic balance is a continuous development of the enterprise and observance of general balance at each stage of development • Profitability - forms principles of functioning of the enterprise from a position of equation of expenses, profits, provides development of budgetary relations • Activization - a principle which pushes the enterprise to effectiveness, constant development, use of innovations • Systematic character - according to this principle the enterprise is considered as open system which consists from interdependent elements • Autocracy - expects availability of the unique responsible centre which exercises administration and coordination of activity of the enterprise for achievement of its purposes

7. A management purpose is providing of profitability activity of organization on the basis of the rational adjusting of production process of management, development of material and technical and technological base, effective use of skilled potential and bringing in of money.

8. A major task of a management in relation to pharmacy is creation, organization of production of medications and wares of the medical setting, grant of services, taking into account the necessities of users on the basis of present financial and human resources and providing of cost-effective activity of organization, its stable position at the market.

9. The main management tasks: • Receive of income • Reduction of the own spending • Expansion of market segment (to the market of sale)

10. The kinds of management: • Financial management entails planning for the future of a person or a business enterprise to ensure a positive cash flow. It includes the administration and maintenance of financial assets. Besides, financial management covers the process of identifying and managing risks. • Production management deals with the decision making related to production process of that the resulting goods and service is produced according to specifications in the amounts and at the scheduled demanded and at minimum cost. • Operations Management deals with the design and management of products, processes, services. Related activities include managing purchases, inventory control, quality control, storage, logistics and evaluations of processes.

11. Personnel management can be defined as obtaining, using and maintaining a satisfied workforce. It is a significant part of management concerned with employees at work and with their relationship within the organization. • Personnel management is the planning, organizing, compensation, integration and maintenance of people for the purpose of contributing to organizational, individual and societal goals. • Marketing management is a business discipline which is focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities.

12. LEVELS OF MANAGEMENT The term “Levels of Management’ refers to a line of demarcation between various managerial positions in an organization. The number of levels in management increases when the size of the business and work force increases and vice versa. The level of management determines a chain of command, the amount of authority & status enjoyed by any managerial position.

13. LEVELS OF MANAGEMENT

14. Most organizations have three management levels: • low-level, • middle-level, • top-level managers. 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.

16. The main role of the top level management is summarized as follows : • determines the objectives, policies and plans of the organisation. • They mobilises (assemble and bring together) available resources. • The top level management does mostly the work of thinking, planning and deciding. • They prepare long-term plans of the organisation which are generally made for 5 to 20 years. • The top level management has maximum authority and responsibility. They are the top or final authority in the organisation. They are directly responsible to the Shareholders, Government and the General Public. The success or failure of the organisation largely depends on their efficiency and decision making. • They require more conceptual skills and less technical Skills.

17. The middle level management emphasize more on following tasks : • Middle level management gives recommendations (advice) to the top level management. • It executes (implements) the policies and plans which are made by the top level management. • It co-ordinate the activities of all the departments. • They also have to communicate with the top level Management and the lower level management. • They spend more time in co-ordinating and communicating. • They prepare short-term plans of their departments which are generally made for 1 to 5 years. • The middle Level Management has limited authority and responsibility. They are intermediary between top and lower management. They are directly responsible to the chief executive officer and board of directors. • Require more managerial and technical skills and less conceptual skills.

18. The lower level management performs following activities: • Lower level management directs the workers / employees. • They develops morale in the workers. • It maintains a link between workers and the middle level management. • The lower level management informs the workers about the decisions which are taken by the management. They also inform the management about the performance, difficulties, feelings, demands, etc., of the workers. • They spend more time in directing and controlling. • The lower level managers make daily, weekly and monthly plans. • They have limited authority but important responsibility of getting the work done from the workers. They regularly report and are directly responsible to the middle level management. • Along with the experience and basic management skills, they also require more technical and communication skills

20. Japanese management • One of the prominent features of Japanese management is the practice of permanent employment (shushin koyo). • Permanent employment covers the minority of the work force that work for the major companies. • Management trainees are recruited directly from colleges and, if they survive a six-month probationary period with the company, are expected to stay with the companies for their entire working careers.

21. Permanent employees are hired as generalists, not as specialists for specific positions. A new worker is not hired because of any special skill or experience; rather, the individual's intelligence, educational background, and personal attitudes and attributes are closely examined. • On entering a Japanese corporation, the new employee will train from six to twelve months in each of the firm's major offices or divisions. Thus, within a few years a young employee will know every facet of company operations, knowledge which allows companies to be more productive.

22. Thesystem of promotion and reward • An important criterion is seniority. Seniority is determined by the year an employee's class enters the company. • Compensation for young workers is quite low, but they accept low pay with the understanding that their pay will increase in regular increments and be quite high by retirement. • Compensation consists of a wide range of tangible and intangible benefits, including housing assistance, inexpensive vacations, good recreational facilities, and, most important, the availability of low-cost loans for such expenses as housing and a new automobile. Regular pay is often augmented by generous semiannual bonuses. Members of the same graduating class usually start with similar salaries, and salary increases and promotions each year are generally uniform. The purpose is to maintain harmony and avoid stress and jealousy within the group.

23. Another aspect of Japanese management is the company union, which most regular company employees are obliged to join. • The worker do not have a separate skill identification outside of the company. • Despite federations of unions at the national level, the union does not exist as an entity separate from, or with an adversarial relationship to, the company. • The linking of the company with the worker puts severe limits on independent union action, and the worker does not wish to harm the economic wellbeing of the company. Strikes are rare and usually brief.

24. Japanese managerial style and decision making in large companies emphasizes the flow of information and initiative from the bottom up, making top management a facilitator rather than the source of authority, while middle management is both the impetus for and the shaper of policy. • Consensus is stressed as a way of arriving at decisions, and close attention is paid to workers' well-being. Rather than serve as an important decision maker, the ranking officer of a company has the responsibility of maintaining harmony so that employees can work together. A Japanese chief executive officer is a consensus builder.

25. Management in the U.S • In the U.S. all people in the organization have an important role to play and all are valued for their input. Therefore, managers consult employees to gather background information and often have them share in the decision-making process. • Cross cultural communiciation will be more effective when working in United States when you remember that the most productive managers in United States recognize and value the specialized knowledge that employees at all levels bring. Employees expect to be consulted on decisions that affect them and the greater good of the organization.

26. Cross cultural management is more likely to succeed if you understand that businesses in the U.S. have a high tolerance for risk and a ready acceptance for change. The underlying mindset is that change, while difficult, usually brings improvements and enhancements with it.

27. American managers are viewed as facilitators-people who help employees do their best workand not simply decision makers. They empower employees and expect them to take responsibility. • Employees freely cross management levels and speak directly to senior managers. This freedom is particularly apparent at meetings, where everyone in attendance is encouraged to participate openly.

28. THE HISTORY OF MANAGEMENT Development of science about management of people in the course of production Forming of administrative mechanisms on principles of development of human relations Construction of management systems focused on the market Active application of quantitative methods as important directions of formalisation of methods of management and their transformation in management decisions Forming of system and situational approaches Computerisation of management processes

29. THE HISTORY OF MANAGEMENT While management and managers have been with us since humans have had tasks to perform and goals to accomplish (e.g., gathering food or finding shelter), the study of management as a scientific and academic curriculum is relatively new. Around the turn of the twentieth century, an American industrialist and a French engineer began to publish observations in what would become known as the classical, or administrative, school of management thought. It was F. Taylor and A. Fayol.

30. THANK YOU FOR ATTENTION!