Management Control Systems As An Interdisciplinary Subject
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Management (or managing) is the administration of organizations, whether
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 ...
es,
nonprofit organization A nonprofit organization (NPO), also known as a nonbusiness entity, nonprofit institution, not-for-profit organization, or simply a nonprofit, is a non-governmental (private) legal entity organized and operated for a collective, public, or so ...
s, or a
government bodies A government agency or state agency, sometimes an appointed commission, is a permanent or semi-permanent organization in the machinery of government (bureaucracy) that is responsible for the oversight and administration of specific functions, s ...
through
business administration Business administration is the administration of a commercial enterprise. It includes all aspects of overseeing and supervising the business operations of an organization. Overview The administration of a business includes the performance o ...
, nonprofit management, or the
political science Political science is the scientific study of politics. It is a social science dealing with systems of governance and Power (social and political), power, and the analysis of political activities, political philosophy, political thought, polit ...
sub-field of
public administration Public administration, or public policy and administration refers to "the management of public programs", or the "translation of politics into the reality that citizens see every day",Kettl, Donald and James Fessler. 2009. ''The Politics of the ...
respectively. It is the process of managing the resources of businesses, governments, and other organizations. 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 importan ...
levels of managers, organized in a pyramid structure: *
Senior management Senior management, executive management, or upper management is an occupation at the highest level of management of an organization, performed by individuals who have the day-to-day tasks of managing the organization, sometimes a company or a cor ...
roles include the
board of directors A board of directors is a governing body that supervises the activities of a business, a nonprofit organization, or a government agency. The powers, duties, and responsibilities of a board of directors are determined by government regulatio ...
and a
chief executive officer A chief executive officer (CEO), also known as a chief executive or managing director, is the top-ranking corporate officer charged with the management of an organization, usually a company or a nonprofit organization. CEOs find roles in variou ...
(CEO) or a
president President most commonly refers to: *President (corporate title) * President (education), a leader of a college or university *President (government title) President may also refer to: Arts and entertainment Film and television *'' Præsident ...
of an organization. They set 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. Compare
governance Governance is the overall complex system or framework of Process, processes, functions, structures, Social norm, rules, Law, laws and Norms (sociology), norms born out of the Interpersonal relationship, relationships, Social interaction, intera ...
. *
Middle management Middle management is the intermediate management level of a hierarchical organization that is subordinate to the executive management and responsible for "team leading" line managers and/or "specialist" line managers. Middle management is indire ...
roles include branch managers, regional managers, department managers, and section managers. They provide direction to front-line managers and communicate the strategic goals and policies of senior management to them. *
Line management Line management refers to the management of employees who are directly involved in the production or delivery of products, goods and/or services. As the interface between an organisation and its front-line workforce, line management represents ...
roles 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 and role that is primarily based on authority over la ...
s and the front-line
team leader A team leader is a person who provides guidance, instruction, direction and leadership to a group of individuals (the team) for the purpose of achieving a key result or group of aligned results. Team leaders serves as the steering wheel for a group ...
s, who 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 the core of management. Despite the name, they are usually considered part of the workforce and not part of the organization's management class. Management is taught - both as a theoretical subject as well as its a practical application - across different disciplines at colleges and universities. Prominent major degree-programs in management include
Management Management (or managing) is the administration of organizations, whether businesses, nonprofit organizations, or a Government agency, government bodies through business administration, Nonprofit studies, nonprofit management, or the political s ...
,
Business Administration Business administration is the administration of a commercial enterprise. It includes all aspects of overseeing and supervising the business operations of an organization. Overview The administration of a business includes the performance o ...
and
Public Administration Public administration, or public policy and administration refers to "the management of public programs", or the "translation of politics into the reality that citizens see every day",Kettl, Donald and James Fessler. 2009. ''The Politics of the ...
.
Social scientists Social science (often rendered in the plural as the social sciences) is one of the branches of science, devoted to the study of societies and the relationships among members within those societies. The term was formerly used to refer to the f ...
study management as an
academic discipline An academic discipline or academic field is a subdivision of knowledge that is taught and researched at the college or university level. Disciplines are defined (in part) and recognized by the academic journals in which research is published, a ...
, investigating areas such as
social organization In sociology, a social organization is a pattern of relationships between and among individuals and groups. Characteristics of social organization can include qualities such as sexual composition, spatiotemporal cohesion, leadership, struc ...
,
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. T ...
, and
organizational leadership Leadership studies is a multidisciplinary academic field of study that focuses on leadership in organizational contexts and in human life. Leadership studies has origins in the social sciences (e.g., sociology, anthropology, psychology), in humani ...
. In recent decades, there has been a movement for
evidence-based management Evidence-based management (EBMgt) is an emerging movement to explicitly use the current, best evidence in management and decision-making. It is part of the larger movement towards evidence-based practices. Overview Evidence-based management en ...
.


Etymology

The English verb ''manage'' has its roots in the fifteenth-century
French French may refer to: * Something of, from, or related to France ** French language, which originated in France ** French people, a nation and ethnic group ** French cuisine, cooking traditions and practices Arts and media * The French (band), ...
verb , which often referred in
equestrian The word equestrian is a reference to equestrianism, or horseback riding, derived from Latin ' and ', "horse". Horseback riding (or riding in British English) Examples of this are: *Equestrian sports *Equestrian order, one of the upper classes in ...
language "to hold in hand the reins of a horse". Also the
Italian Italian(s) may refer to: * Anything of, from, or related to the people of Italy over the centuries ** Italians, a Romance ethnic group related to or simply a citizen of the Italian Republic or Italian Kingdom ** Italian language, a Romance languag ...
term (to handle, especially tools or a horse) is possible. In
Spanish Spanish might refer to: * Items from or related to Spain: **Spaniards are a nation and ethnic group indigenous to Spain **Spanish language, spoken in Spain and many countries in the Americas **Spanish cuisine **Spanish history **Spanish culture ...
, 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 spoken by the Latins (Italic tribe), Latins in Latium (now known as Lazio), the lower Tiber area aroun ...
words (hand) and (to act). The French word for
housekeeping Housekeeping is the management and routine support activities of running and maintaining an organized physical institution occupied or used by people, like a house, ship, hospital or factory, such as cleaning, tidying/organizing, cooking, shopp ...
, , derived from ("to keep house"; compare for "household"), also encompasses taking care of domestic animals. is the French translation of
Xenophon Xenophon of Athens (; ; 355/354 BC) was a Greek military leader, philosopher, and historian. At the age of 30, he was elected as one of the leaders of the retreating Ancient Greek mercenaries, Greek mercenaries, the Ten Thousand, who had been ...
's famous book ''
Oeconomicus The ''Oeconomicus'' () by Xenophon is a Socratic dialogue principally about household management and agriculture. ''Oeconomicus'' comes from the Ancient Greek words '' oikos'' for home or house and ''nemein'' which means management, literally ...
'' () on household matters and
husbandry Animal husbandry is the branch of agriculture concerned with animals that are raised for meat, fibre, milk, or other products. It includes day-to-day care, management, production, nutrition, selective breeding, and the raising of livestock. ...
. The French word (or ) 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 Henri Fayol (29 July 1841 – 19 November 1925) was a French mining engineer, mining executive, author and director of mines who developed a general theory of business administration that is often called Fayolism. He and his colleagues developed ...
(1841–1925) stated: "To manage is to forecast and to plan, to organize, to command, to co-ordinate and to control". *
Fredmund Malik Fredmund Malik (born September 1, 1944 in Lustenau, Reichsgau Tirol-Vorarlberg, Tyrol-Vorarlberg) is an Austrian economist with focus on management science and the founder and chairman of a management consultancy (Malik Management) in St. Gallen. ...
(1944– ) defines management as "the transformation of resources into utility". * Management is included as one of the
factors of production In economics, factors of production, resources, or inputs are what is used in the production process to produce output—that is, goods and services. The utilised amounts of the various inputs determine the quantity of output according to the rela ...
– along with machines, materials and money. *
Ghislain Deslandes Ghislain Deslandes is a philosopher born in Angers (France) on the 16th of August 1970. His interdisciplinary discourse spans such topics as management science, leadership studies and postmodern theology. At ESCP Business School, he is full p ...
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 In social psychology, an interpersonal relation (or interpersonal relationship) describes a social association, connection, or affiliation between two or more people. It overlaps significantly with the concept of social relations, which are ...
, institutional and environmental levels". *
Peter Drucker Peter Ferdinand Drucker (; ; November 19, 1909 – November 11, 2005) was an Austrian American management consultant, educator, and author, whose writings contributed to the philosophical and practical foundations of modern management theory. H ...
(1909–2005) saw the basic task of management as twofold:
marketing Marketing is the act of acquiring, satisfying and retaining customers. It is one of the primary components of Business administration, business management and commerce. Marketing is usually conducted by the seller, typically a retailer or ma ...
and
innovation Innovation is the practical implementation of ideas that result in the introduction of new goods or service (economics), services or improvement in offering goods or services. ISO TC 279 in the standard ISO 56000:2020 defines innovation as "a n ...
. 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 Mission (from Latin 'the act of sending out'), Missions or The Mission may refer to: Geography Australia *Mission River (Queensland) Canada *Mission, British Columbia, a district municipality * Mission, Calgary, Alberta, a neighbourhood * ...
, objective, procedures, rules and manipulation of the
human capital Human capital or human assets is a concept used by economists 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 subs ...
of an
enterprise Enterprise (or the archaic spelling Enterprize) may refer to: Business and economics Brands and enterprises * Enterprise GP Holdings, an energy holding company * Enterprise plc, a UK civil engineering and maintenance company * Enterpris ...
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 is commonly defined as the transmission of information. Its precise definition is disputed and there are disagreements about whether Intention, unintentional or failed transmissions are included and whether communication not onl ...
: an enterprise environment (as opposed to a physical or mechanical mechanism) implies human
motivation Motivation is an mental state, internal state that propels individuals to engage in goal-directed behavior. It is often understood as a force that explains why people or animals initiate, continue, or terminate a certain behavior at a particul ...
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 open system (systems theory), environment, is described by its boundaries, str ...
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, also known as biota, refers to matter that has biological processes, such as Cell signaling, signaling and self-sustaining processes. It is defined descriptively by the capacity for homeostasis, Structure#Biological, organisation, met ...
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 to ...
, motivational
psychological Psychology is the scientific study of mind and behavior. Its subject matter includes the behavior of humans and nonhumans, both consciousness, conscious and Unconscious mind, unconscious phenomena, and mental processes such as thoughts, feel ...
tools, goals, and economic measures (profit, etc.) may or may not be necessary components for there to be management. At first, one views management functionally, such as measuring quantity, adjusting
plan A plan is typically any diagram or list of steps with details of timing and resources, used to achieve an Goal, objective to do something. It is commonly understood as a modal logic, temporal set (mathematics), set of intended actions through wh ...
s, and meeting goals, but this applies even in situations where planning does not take place. From this perspective,
Henri Fayol Henri Fayol (29 July 1841 – 19 November 1925) was a French mining engineer, mining executive, author and director of mines who developed a general theory of business administration that is often called Fayolism. He and his colleagues developed ...
(1841–1925) considers management to consist of five function (engineering), 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 circular definition, circularity, the shifting nature of definitions and the connection of Managerialism, managerial practices with the existence of a managerial class, managerial cadre or of a social class, class. One habit of thought regards management as equivalent to "
business administration Business administration is the administration of a commercial enterprise. It includes all aspects of overseeing and supervising the business operations of an organization. Overview The administration of a business includes the performance o ...
" and thus excludes management in places outside commerce, for example in Charitable organization, charities 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 schools". 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. Historically this use of the term often contrasted with the term ''Industrial relations, labor'' – referring to those being managed.


Levels

A common management structure of organizations includes three management levels: low-level, middle-level, and top-level managers. Low-level managers manage the work of non-managerial individuals who are directly involved with the production or creation of the organization's products. Low-level 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 low level and the top level of the organization. These managers manage the work of low-level 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 board chairman. These managers are classified in a hierarchy of Authority (sociology), authority and perform different tasks. In many organizations, the number of managers at every level resembles a pyramid. Each level is explained below in specifications of their different Duty, 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 is a governing body that supervises the activities of a business, a nonprofit organization, or a government agency. The powers, duties, and responsibilities of a board of directors are determined by government regulatio ...
(including non-executive directors, executive directors and independent directors),
president President most commonly refers to: *President (corporate title) * President (education), a leader of a college or university *President (government title) President may also refer to: Arts and entertainment Film and television *'' Præsident ...
, Vice president, vice-president, CEOs and other members of the Corporate title, C-level executives. Different organizations have various members in their C-suite, which may include a chief financial officer, 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 planning, strategic plans, Policy, 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 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 Marketing is the act of acquiring, satisfying and retaining customers. It is one of the primary components of Business administration, business management and commerce. Marketing is usually conducted by the seller, typically a retailer or ma ...
. 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. However, 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 are 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 chief executive or managing director, is the top-ranking corporate officer charged with the management of an organization, usually a company or a nonprofit organization. CEOs find roles in variou ...
or CEO). The CEO typically hires other positions. However, board involvement in the hiring of other positions such as the chief financial officer (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 General contractor, contractors; for example, the board (through the audit committee) typically selects the auditor. Helpful skills for 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 the preparation of department budgets, procedures, and schedules; appointment of middle-level executives such as department managers; coordination of departments; media and governmental relations; and shareholder 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 top management's objectives, defining and discussing information and policies from top management to lower management, and most importantly, inspiring and providing 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 a non-management operator, liable to the policy of the specific organization. The efficiency of the middle level is vital in any organization since it bridges the gap between top-level and bottom-level staff. Their functions include: * Designing and implementing effective group and inter-group work and information systems * Defining and monitoring group-level performance indicators * Diagnosing and resolving problems within and among workgroups * Designing and implementing reward systems that support cooperative behavior, as well as making decisions and sharing 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 and role that is primarily based on authority over la ...
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. Low-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 and education

Colleges and universities around the world offer 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. Higher education has been characterized as a necessary factor in the managerial revolution in the 20th century.


Requirement

While some professions require academic credentials in order to work in the profession (e.g., law, medicine, and engineering, which require, respectively the Bachelor of Law, 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, Bill Gates 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 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. Many other undergraduate degrees include the study of management, such as Bachelor of Arts and Bachelor of Science degrees with a major in
business administration Business administration is the administration of a commercial enterprise. It includes all aspects of overseeing and supervising the business operations of an organization. Overview The administration of a business includes the performance o ...
or management and the Bachelor of Arts (BA) or Bachelor of Science (BS) in
political science Political science is the scientific study of politics. It is a social science dealing with systems of governance and Power (social and political), power, and the analysis of political activities, political philosophy, political thought, polit ...
(PoliSci) with a concentration in
public administration Public administration, or public policy and administration refers to "the management of public programs", or the "translation of politics into the reality that citizens see every day",Kettl, Donald and James Fessler. 2009. ''The Politics of the ...
or the Bachelor of Public Administration (B.P.A), a degree designed for individuals aiming to work as bureaucrats in the Public administration, 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. To manage technological areas, one often needs an undergraduate degree in a Science, technology, engineering, and mathematics#Immigration policy, 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, corporate finance, entertainment, global management, healthcare management, investment management, 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 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 ...
, such as the Master of Public Administration (MPA) degree (also offered as a Master of Arts or Master of Science 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 several types of management doctorates: the Doctor of Management (DM), the Doctor of Business Administration (DBA), the Doctor of Public Administration(DPA), the Ph.D. in business administration, the Ph.D. in management, and the Ph.D. in political science with a concentration in public administration. In the 2010s, doctorates in business administration and management were available with many specializations.


Good practices

While management trends can change 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 of opportunities for minorities and women in the workplace, 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. Promotion (rank), Promotion prospects can incentive, incentivise performance improvements. 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. Good practices identified for managers include "walking the shop floor", and, especially for managers who are new in post, identifying and achieving some "quick wins" which demonstrate visible success in establishing appropriate objectives. Leadership writer John Kotter uses the phrase "Short-Term Wins" to express the same idea. As in all work, achieving an appropriate work-life balance for self and others is an important management practice.


Evidence-based management

Evidence-based management is an emerging movement to use the current, best evidence in management and decision-making. 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 published peer-reviewed (often in management or social science journals) research evidence that bears on whether and why a particular management practice works; judgment 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 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 Steward (office), stewards). Others, however, detect management-like thought among ancient Sumerian traders and the builders of the pyramids of ancient Egypt. Slave owners through the centuries faced the problems of exploiting and motivating a dependent but sometimes unenthusiastic or recalcitrant workforce, but many pre-industrial business, 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 service (economics), services or improvement in offering goods or services. ISO TC 279 in the standard ISO 56000:2020 defines innovation as "a n ...
s such as the spread of Arabic numeral system, Arabic numerals (5th to 15th centuries) and the codification of Double-entry bookkeeping system, double-entry book-keeping (1494) provided management tool, tools for management assessment, planning and control. * An organization is more stable if members have the right to express their differences and solve their conflicts within it. * While one person can begin an organization, "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 the Industrial Revolution in the 18th and 19th centuries, military theory and practice contributed approaches to managing the newly popular factory, 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 ownership, owners of enterprises in those times to carry out management functions by and for themselves. But with the growing size and complexity of organizations, a distinction between owners (individuals, industrial dynasties, or groups of shareholders) 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 Bureaucracy, bureaucratic state, and the earliest (by the second century BC) example of an meritocracy, administration based on merit through Imperial examination, 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 books, 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 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'' by Chanakya (written around 300 BC), and ''The Prince'' by Italian author Niccolò Machiavelli (). Written in 1776 by Adam Smith, a Scotland, Scottish Ethics, 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 pin (device), pins. While individuals could produce 200 pins per day, Smith analyzed the steps involved in the manufacture and, with 10 specialists, enabled the 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, quality control, quality-control procedures, cost accounting, cost-accounting, interchangeability of parts, and plan, 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 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 élite 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's ''The Principles of Scientific Management'' (1911), Lillian Moller Gilbreth, Lillian Gilbreth's ''Psychology of Management'' (1914), Frank Bunker Gilbreth, Frank and Lillian Moller Gilbreth, Lillian Gilbreth's ''Applied motion study'' (1917), and Henry L. Gantt's charts (1910s). J. Duncan wrote the first college management textbook in 1911. In 1912 Yoichi Ueno introduced Taylorism to Japan and became the first management consultant of the Japanese management culture, "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 degree (MBA) in 1921. People like
Henri Fayol Henri Fayol (29 July 1841 – 19 November 1925) was a French mining engineer, mining executive, author and director of mines who developed a general theory of business administration that is often called Fayolism. He and his colleagues developed ...
(1841–1925) and Alexander Hamilton Church, 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 Dill Scott, Walter Scott (1869–1955) and J. Mooney applied the principles of psychology to management. Other writers, such as Elton Mayo (1880–1949), Mary Follett, 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 sociology, sociological perspective.
Peter Drucker Peter Ferdinand Drucker (; ; November 19, 1909 – November 11, 2005) was an Austrian American management consultant, educator, and author, whose writings contributed to the philosophical and practical foundations of modern management theory. H ...
(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 Corporation, General Motors until 1956) commissioning a study of the organization. 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 Maynard Stuart Blackett, Patrick Blackett worked in the development of the applied mathematics, applied-mathematics science of operations research, initially for military operations. Operations research, sometimes known as "management science" (but distinct from Taylor's scientific management), attempts to take a science, 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 (systematized in 1954), the (developed by in post-war Germany), business process reengineering, re-engineering (the early 1990s), Six Sigma (1986), management by walking around (1970s), the Viable system model (1972), and various information technology, 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 Tom Peters, "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 business philosophies and popular management theories, 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: # Finance, financial management # human resource management # management cybernetics # information technology management (responsible for management information systems ) # marketing management # operations management and Manufacturing, production management # strategic management


21st century

Branches of management theory also exist relating to Non-profit organization, nonprofits and to government: such as
public administration Public administration, or public policy and administration refers to "the management of public programs", or the "translation of politics into the reality that citizens see every day",Kettl, Donald and James Fessler. 2009. ''The Politics of the ...
, public management, and educational management. Further, management programs related to civil society organizations have also spawned programs in nonprofit management and social entrepreneurship. Many of the assumptions made by management have come under attack from business ethics, business-ethics viewpoints, critical management studies, and anti-corporate activism. This could include violations to a company’s Ethics policy, ethics policy. 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.


Nature of work

In profitable organizations, management's primary function is the satisfaction of a range of Stakeholder (corporate), 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 overall complex system or framework of Process, processes, functions, structures, Social norm, rules, Law, laws and Norms (sociology), norms born out of the Interpersonal relationship, relationships, Social interaction, intera ...
, shareholders vote for the
board of directors A board of directors is a governing body that supervises the activities of a business, a nonprofit organization, or a government agency. The powers, duties, and responsibilities of a board of directors are determined by government regulatio ...
, 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 Henri Fayol, Fayol, management operates through five basic functions: planning, organizing, commanding, coordinating and controlling. * Planning: Deciding what needs to happen in the future and generating action plans (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 personal network, connections. * Interpersonal: used to communicate, motivate, mentor and delegate. * Diagnostic: ability to mental image, visualize appropriate responses to a situation. * Leadership: ability to communicate a vision and inspire people to embrace that vision. ** cross-cultural leadership: the ability to understand the effects of culture on leadership style. * Behavioural: 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 management * Outline of business management


References


External links

* * * {{Authority control Management, Management occupations, Majority–minority relations