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 buying and selling products (such as goods and services). It is also "any activity or enterprise entered into for profit."
Having a business name does not sep ...
, 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 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
A ...
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
A currency, "in circulation", from la, currens, -entis, literally meaning "running" or "traversing" is a standardization of money in any form, in use or circulation as a medium o ...
,
natural
Nature, in the broadest sense, is the physics, physical world or universe. "Nature" can refer to the phenomenon, 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. ...
,
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
A fad or trend is any form of collective behavior that develops within a culture, a generation or social group
In the social sciences, a social group can be defined as two or more people who interact with one another, share similar ch ...
. 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
Postgraduate or graduate education refers to academic or professional degrees, certificates, diplomas, or other qualifications ...
(MBA.),
Master in Management (MSM or MIM) and, for the public sector, the
Master of Public Administration (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
A Doctor of Philosophy (PhD, Ph.D., or DPhil; Latin
Latin (, or , ) is a classical language belonging to the Italic languages, Italic branch of the Indo-European languages. Latin was orig ...
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 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 orga ...
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 especial ...
(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
supervisors 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, and
organizational leadership.
Etymology
The English verb "manage" has its roots by the XV century
French 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
Latin (, or , ) is a classical language belonging to the Italic languages, 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 ...
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, Ξενοφῶν ; – probably 355 or 354 BC) was a Greek military leader, philosopher, and historian, born in Athens
Athens ( ; el, Αθήνα, Athína ; grc, Ἀθῆναι, Athênai (pl.) ) is both the cap ...
's famous book ''
Oeconomicus'' ( grc-gre, Οἰκονομικός) on household matters and
husbandry
Animal husbandry is the branch of agriculture
Agriculture or farming is the practice of cultivating plants and livestock
Livestock are the domesticated animals raised in an agricultural setting to provide labor and produce divers ...
. 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 (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 en ...
. 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 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
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 inqu ...
: 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 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, is described by its boundaries, structure and purpose and expres ...
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
...
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, 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" 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, natio ...
, as for example in
charities and in the
public sector
The public sector, also called the state sector, is the part of the economy composed of both public service
A public service is any service intended to address specific needs pertaining to the aggregate members of a community. Public serv ...
. 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, ...
s". Some such institutions (such as the
Harvard Business School) 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
A corporation is an organization—usually a group of people or a company
A company, abbreviated as co., is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objecti ...
.
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
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 ...
apply management concepts. The concept and its uses are not constrained. Management as a whole is the process of planning, organizing, directing,
leading 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 orga ...
(including
non-executive directors,
executive directors and
independent directors), president, vice-president,
CEOs and other members of the
C-level 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 fin ...
,
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
A fiduciary is a person who holds a legal or ethical relationship of trust
Trust often refers to:
* Trust (social science), confidence in or dependence on a person or quality
It may also refer to:
Business and law
* Trust law, a body of ...
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 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 especial ...
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 fin ...
(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
A partnership is an arrangement where parties ...
communication.
Middle management
Consist of
general manager
A general manager (GM) is an executive who has overall responsibility for managing both the revenue
In accounting, revenue is the total amount of income generated by the sale of goods and services related to the primary operations of the b ...
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
supervisors, 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 (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
In law, common law (also known as judicial precedent, judge-made law, or case law) is the body of law created by judges ...
,
Doctor of Medicine
Doctor of Medicine (abbreviated M.D., from the Latin
Latin (, or , ) is a classical language belonging to the Italic languages, Italic branch of the Indo-European languages. Latin was originally a dialect spoken in the lower Tiber area (th ...
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
Engineering is the use of scientific principles t ...
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 design
Industrial design is a process of design applied to physical products that are to be manufactured by mass production. It is the cre ...
,
Bill Gates
William Henry Gates III (born October 28, 1955) is an American business magnate and philanthropist. He is a co-founder of Microsoft
Microsoft Corporation is an American multinational corporation, multinational technology company, te ...
and
Mark Zuckerberg. 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
Postgraduate or graduate education refers to academic or professional degrees, certificates, diplomas, or other qualifications ...
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 si ...
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
Latin (, or , ) is a classical language belonging to the Italic languages, Italic branch of the Indo-European languages. Latin was originally a dialect spoken in the lower Tiber area (then known ...
degrees with a major in
business administration or management and Bachelor of Public Administration (B.P.A), a degree designed for individuals aiming to work as
bureaucrats in the
government jobs.
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,
organizational behavior,
organizational theory,
strategic management,
accounting
Accounting, also known as accountancy, is the measurement
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 d ...
,
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 of the firm to the shareholder
A shareholder (in the United States ...
, entertainment, global management,
healthcare management,
investment management
Investment management is the professional asset management of various securities, including shareholdings, bonds, and other asset
In financial accounting, an asset is any resource owned or controlled by a business or an economic entity. I ...
, 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 genera ...
.
A
Master of Business Administration
A Master of Business Administration (MBA; also Master's in Business Administration) is a postgraduate degree
Postgraduate or graduate education refers to academic or professional degrees, certificates, diplomas, or other qualifications ...
(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 ...
(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 (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
...
in
Public Administration
Public Administration (a form of governance
Governance is the process of interactions through the laws, norms, power or language
Language is a structured system of communication. The structure of a language is its grammar and ...
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 amo ...
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 (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
A Doctor of Philosophy (PhD, Ph.D., or DPhil; Latin
Latin (, or , ) is a classical language belonging to the Italic languages, Italic branch of the Indo-European languages. Latin was orig ...
) 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
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 ...
. 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 Age, early Bronze Ages between the sixth and fifth millennium BC. It is one of ...
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 en ...
s such as the spread of
Arabic numerals (5th to 15th centuries) and the codification of
double-entry book-keeping (1494) provided
tools 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 distin ...
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
A partnership is an arrangement where parties ...
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
Sun Tzu ( ; zh, t=孫子, s=孙子, first= t, p=Sūnzǐ) was a Chinese military general, strategist, philosopher, and writer who lived during the Eastern Zhou period of 771 to 256 BCE. Sun Tzu is traditionally credited as the author of '' Th ...
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
The Spring and Autumn period was a period in Chinese history from approximately 770 to 476 BC (or according to some authorit ...
'' 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
François-Marie Arouet (; 21 November 169430 May 1778) was a French Enlightenment writer, historian, and philosopher. Known by his '' nom de plume'' M. de Voltaire (; also ; ), he was famous for his wit, and his criticism of Christianity— ...
claimed that the Chinese had "perfected moral science" and
François Quesnay 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
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 instit ...
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
Sanskrit (; attributively , ; nominally , , ) is a classical language belonging to the Indo-Aryan branch of the Indo-European lang ...
'' by
Chanakya
Chanakya (Sanskrit
Sanskrit (; attributively , ; nominally , , ) is a classical language belonging to the Indo-Aryan branch of the Indo-European languages. It arose in South Asia
South Asia is the southern subregion of Asia
...
(written around 300 BC), and ''
The Prince'' by Italian author
Niccolò Machiavelli (c. 1515).
Written in 1776 by
Adam Smith, a
Scottish moral philosopher, ''
The Wealth of Nations'' discussed efficient organization of work through
division of labour.
[
]
Smith described how changes in processes could boost productivity in the manufacture of
pins. 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 (1723–1790) and
John Stuart Mill (1806–1873) provided a theoretical background to
resource allocation,
production (economics), and
pricing issues. About the same time, innovators like
Eli Whitney (1765–1825),
James Watt (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. Standardizatio ...
,
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 ba ...
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 for perceived limitations of this belief). Examples include
Henry R. Towne's ''Science of management'' in the 1890s,
Frederick Winslow Taylor
Frederick Winslow Taylor (March 20, 1856 – March 21, 1915) was an American mechanical engineer. He was widely known for his methods to improve industrial efficiency. He was one of the first management consultants. In 1909, Taylor summed up ...
's ''
The Principles of Scientific Management'' (1911),
Lillian Gilbreth's ''Psychology of Management'' (1914),
Frank
Frank or Franks may refer to:
People
* Frank (given name)
* Frank (surname)
* Franks (surname)
* Franks
The Franks ( la, Franci or ) were a group of Germanic peoples whose name was first mentioned in 3rd-century Roman sources, and associ ...
and
Lillian Gilbreth's ''Applied motion study'' (1917), and
Henry L. Gantt's charts (1910s). J. Duncan wrote the first
college 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 textbo ...
in 1911. In 1912
Yoichi Ueno 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 n ...
and became the first
management consultant of the "
Japanese management style". His son Ichiro Ueno pioneered Japanese
quality assurance.
The first comprehensive theories of management appeared around 1920. The
Harvard Business School offered the first
Master of Business Administration
A Master of Business Administration (MBA; also Master's in Business Administration) is a postgraduate degree
Postgraduate or graduate education refers to academic or professional degrees, certificates, diplomas, or other qualifications ...
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
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 be ...
to management. Other writers, such as
Elton Mayo (1880–1949),
Mary Parker Follett (1868–1933),
Chester Barnard (1886–1961),
Max Weber (1864–1920), who saw what he called the "administrator" as
bureaucrat,
Rensis Likert (1903–1981), and
Chris Argyris (born 1923) approached the phenomenon of management from a
sociological
Sociology is a social science
Social science is one of the branches of science, devoted to the study of societies and the relationships among individuals within those societies. The term was formerly used to refer to the field of s ...
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 camps 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 automotive manufacturing company headquartered in Detroit, Michigan
Michigan () is a state in the Great Lakes region of the upper Midwestern United States. With a popula ...
until 1956) commissioning a study of the
organisation. Drucker went on to write 39 books, many in the same vein.
H. Dodge,
Ronald Fisher
Sir Ronald Aylmer Fisher (17 February 1890 – 29 July 1962) was a British polymath
A polymath ( el, πολυμαθής, , "having learned much"; la, homo universalis, "universal human") is an individual whose knowledge spans a sub ...
(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
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 evidenc ...
of
operations research
Operations research ( en-GB, operational research) (U.S. Air Force Specialty Code: Operations Analysis), often shortened to the initialism
An acronym is a word or name formed from the initial components of a longer name or phrase. Acronym ...
, initially for military operations. Operations research, sometimes known as "
management science" (but distinct from Taylor's
scientific management), 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 (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 bipedality, bipedalism and exceptional cognitive skills due to a large and complex Human brain, brain. This has enabled the development of ad ...
#
Management cybernetics
#
information technology management
Information technology management or IT management is the discipline whereby all of the information technology
Information technology (IT) is the use of computer
A computer is a machine that can be programmed to carry out sequence ...
(responsible for
management information systems )
#
marketing management
#
operations management and
production management
#
strategic management
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 and to government: such as
public administration
Public Administration (a form of governance
Governance is the process of interactions through the laws, norms, power or language
Language is a structured system of communication. The structure of a language is its grammar and ...
,
public management, and
educational management. Further, management programs related to
civil-society organizations have also spawned programs in nonprofit management and
social entrepreneurship
Social entrepreneurship is an approach by individuals, groups, start-up companies or entrepreneurs, in which they develop, fund and implement solutions to social, cultural, or environmental issues. This concept may be applied to a wide range of ...
.
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. 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 people, the people have the authority to deliberate and decide legislation ("direct democracy"), or to choo ...
, 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, 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
Governance is the process of interactions through the laws, norms, power or language
Language is a structured system of communication. The structure of a language is its grammar and the free components are its vocabulary. Languages ...
, 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 orga ...
, 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: used to communicate,
motivate, 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 v ...
: ability to communicate a vision and inspire people to embrace that vision.
**
cross-cultural leadership: 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
*
Engineering management
*
Outline of business management
References
External links
*
*
*
{{Authority control
Leadership
Organizational theory
Majority–minority relations