CONTENT

1. Introduction.2
2. A brief history of management2
3. Management functions and roles.3
4. Management levels..4
5. Main types of management: financial management6
6. Human resource management.7
7. Information technology management..8
8. Marketing management9
9. Operations management.10
10. Strategic management.10

1. Introduction

The organization and coordination of the activities of a business in order to achieve

defined objectives is the definition of management. It is the series of activities, actions
and efforts that tend to organize and present the business or goods you are dealing with.
It is most commonly considered as one of the primary aspects of production. Management
includes planning, organizing, staffing, leading or directing, and controlling an
organization to accomplish the goal. Resourcing encompasses the deployment and
manipulation of human resources, financial resources, technological resources, and
natural resources. Management is also an academic discipline, a social science whose
objective is to study social organization.
According to the management guru Peter Drucker (1909-2005), the basic task of
management includes both marketing and innovation. (Drucker. F. Peter. (1999).
Management Challenges for the 21st Century. Burlington, USA: Elsevier Ltd)
Practice of modern management originates from the 16th century study of low-efficiency
and failures of certain enterprises, conducted by the English statesman Sir Thomas More
(1478-1535). Management consists of the interlocking functions of creating corporate
policy and organizing, planning, controlling, and directing an organizations resources in
order to achieve the objectives of that policy.

2. A brief history of management

As for the term itself, the verb manage comes from the Italian maneggiare (to handle,
especially tools), which derives from the Latin word manus (hand). The French word
mesnagement (later mnagement) influenced the development in meaning of the English
word management in the 17th and 18th centuries.
Some see management (by definition) as late-modern (in the sense of late modernity)
concept. On those terms it cannot have a pre-modern history, only harbingers (such as
stewards). Others, however, detect management-like-thought back to Sumerian traders
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and to the builders of the pyramids of ancient Egypt. Innovations such as the spread of
Hindu-Arabic numerals (5th to 15th centuries) and the codification of double-entry bookkeeping (1494) provided tools for management assessment, planning and control. Many
forms of management have been appearing through history, but the first comprehensive
theories of management appeared around 1920. The Harvard Business School offered the
first Master of Business Administration degree (MBA) in 1921. Aforementioned Peter
Drucker (19092005) 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 until 1956) commissioning a study of the organization. Drucker wrote 39
books, many in the same fashion.

Up to the end of 20th century, these six branches of management emerged:

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financial management

human resource management

information technology management (responsible for management information

systems)

marketing management

operations management or production management

strategic management

3. Management functions and roles

It is considered that modern management consists of these basic functions: planning,

organizing, coordinating, commanding, and controlling.

Planning: Deciding what needs to happen in the future and generating plans for
action (deciding in advance).

Organizing: Making sure the human and nonhuman resources are put into place

Coordinating: Creating a structure through which an organization's goals can be

accomplished.

Commanding: Determining what must be done in a situation and getting people

to do it.

Controlling: Checking progress against plans.

4. Management levels

It is generally accepted that most business organizations have three levels of management:
first, middle and top-level managers. These managers are classified in a hierarchy of
authority, and perform different tasks. In many organizations, the number of managers in
every level resembles a pyramid.
Top-level management
The top consists of the board of directors (including non-executive directors and
executive directors), president, vice-president, CEOs and other members of the C-level
executives. They are responsible for controlling and overseeing the entire organization.
They set a tone at the top and develop strategic plans, company policies, and make
decisions on the direction of the business. In addition, top-level managers play a
significant role in the mobilization of outside resources and are accountable to the
shareholders and general public.
Helpful skills of top management vary by the type of organization but typically include a
broad understanding competition, world economies, and politics. In addition, the CEO is
responsible for implementing and determining (within the boards 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 communication.
Another important concept in management is CEO. Chief executive officer (CEO) (US
version) or managing director (MD) (British version) describes the position of the most
senior corporate officer (executive) or administrator in charge of managing a for-profit
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organization. The CEO of a company usually reports to the boards of directors (a body of
elected or appointed members who jointly manage the activities of a company or
organization) and without his consent the board of directors cannot make any decisions.
In some other countries, the position of CEO is called a president or chief executive (CE).
Middle-level management
This level consists of general managers, branch managers and department managers. A
general manager is any executive who has overall responsibility for managing both the
revenue and cost elements of a company's income statement, known as profit & loss
(P&L) responsibility. A general manager usually oversees most or all of the firms
marketing and sales functions as well as the day-to-day operations of the business.
Frequently, the general manager is responsible for effective planning, delegating,
coordinating, staffing, organizing, and decision making to attain desirable profit making
results for an organization. (Sayles, Leonard (1979). Leadership. New York: McGrawHill).
Middle-level managers are accountable to the top management for their departments
function. They devote more time to organizational and directional functions. Middle
management is the midway management of a categorized organization, being secondary
to the senior management but above the deepest levels of operational members. 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 work groups.

Design and implement reward systems that support cooperative behavior. They
also make decision and share ideas with top managers.

First-level management
It consists of supervisors, section leaders, foremen, etc. A supervisor is a lowmanagement category that is primarily based on authority over a worker or charge of a
workplace. The term itself can be used to refer to any personnel who have this task as part
of their job description.

This management level focuses on controlling and directing. They usually have the
responsibility of assigning employees tasks, guiding and supervising employees on dayto-day activities, ensuring quality and quantity production, making recommendations,
suggestions, and up channeling employee problems, etc. First-level managers are role
models for employees that provide:
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Basic supervision

Motivation

Career planning

Performance feedback

5. Main types of management: financial management

Financial management refers to the efficient and effective management of money (funds)
in such a manner as to accomplish the objectives of the organization. It is the specialized
function directly associated with the top management. The significance of this function
is not seen in the Line but also in the capacity of Staff in overall of a company. It has
been defined differently by different experts in the field. Some of the definitions include:
-

Financial Management is the Operational Activity of a business that is

responsible for obtaining and effectively utilizing the funds necessary for efficient
operation. by Joseph Massie

Business finance deals primarily with rising administering and disbursing funds
by privately owned business units operating in non-financial fields of industry.
by Kuldeep Roy

Financial Management is an area of financial decision making, harmonizing

individual motives and enterprise goals. By Weston and Brigham

Financial management is the area of business management devoted to a judicious

use of capital and a careful selection of sources of capital in order to enable a
business firm to move in the direction of reaching its goals. by J.F.Bradlery

Topics in modern financial management include:

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Managerial finance, a branch of finance concerned with the managerial

significance of finance techniques.

Corporate finance, a branch of finance concerned with monetary resource

allocations made by corporations.

Financial management for IT services, financial management of IT assets and

resources.

Financi Association, an organization for finance and economics students and

professionals.

Financial Management Service, a bureau of the U.S. Treasury which provides

financial services for the government.

Financial management, a professional designation in Canada indicating a financial

planner.

6. Human resource management

Human resource management (HRM, or simply HR) is a function in organizations

designed to maximize employee performance of an employers strategic objectives.
(Johnason, P. (2009, pp. 19-37). HR is primarily concerned with the management of
people within organizations, focusing on policies and systems. HR departments and units
in organizations typically undertake a number of activities, including employee
recruitment, training and development, performance appraisal, and rewarding (e.g.,
managing pay and benefit systems). HR is also concerned with industrial relations, that
is, the balancing of organizational practices with requirements arising from collective
bargaining and from governmental laws.
HR is a product of the human relations movement of the early 20th century, when
researchers began documenting ways of creating business value through the strategic
management of the workforce. The function was initially dominated by transactional
work, such as payroll and benefits administration, but due to globalization, company
consolidation, technological advances, and further research, HR as of 2015 focuses on

strategic initiatives like mergers and acquisitions, talent management, succession

planning, industrial and labor relations, and diversity and inclusion.
Dave Ulrich lists the functions of HR as: aligning HR and business strategy, reengineering organization processes, listening and responding to employees, and
managing transformation and change. More specifically, it has four basic functions:
staffing, training and development, motivation and maintenance.

7. Information technology management

IT management is the discipline whereby all of the information technology resources of

a firm are managed in accordance with its needs and priorities. These resources may
include tangible investments like computer hardware, software, data, networks and data
center facilities, as well as the staff who are hired to maintain them.
The central aim of IT management is to generate value through the use of technology. To
achieve this, business strategies and technology must be aligned.
IT Management is different from management information systems. The latter refers to
management methods tied to the automation or support of human decision making. IT
Management refers to IT related management activities in organizations. MIS is focused
mainly on the business aspect, with strong input into the technology phase of the
business/organization.
The below concepts are commonly listed or investigated under the broad term IT
Management:

Business/IT alignment

IT governance

IT financial management

IT service management

Sourcing

IT configuration management
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8. Marketing management

Marketing management is the organizational discipline which focuses on the practical

application of marketing orientation, techniques and methods inside enterprises and
organization and on the management of a firm's marketing resources and activities.
Globalization has led firms to market beyond the borders of their home countries, making
international marketing highly significant and an integral part of a firm's marketing
strategy. (Joshi, Rakesh Mohan. (2005). Marketing managers are often responsible for
influencing the level, timing, and composition of customer demand accepted definition
of the term. In part, this is because the role of a marketing manager can vary significantly
based on a businesss size, corporate culture, and industry context.
Marketing management employs various tools from economics and competitive strategy
to analyze the industry context in which the firm operates. These include Porters five
forces, analysis of strategic groups of competitors, value chain analysis and others.
(Porter, Michael. (1998).
Marketing management often finds it necessary to invest in research to collect the data
required to perform accurate marketing analysis. As such, they often conduct market
research (alternately marketing research) to obtain this information. Marketers employ a
variety of techniques to conduct market research, but some of the more common include:

Qualitative marketing research, such as focus groups and various types of

interviews

Quantitative marketing research, such as statistical surveys

Experimental techniques such as test markets

Observational techniques such as ethnographic (on-site) observation

9. Operations management

Operations management is an area of management concerned with overseeing, designing,

and controlling the process of production and redesigning business operations in the
production of goods or services. It involves the responsibility of ensuring that business
operations are efficient in terms of using as few resources as needed, and effective in
terms of meeting customer requirements. It is concerned with managing the process that
converts inputs (in the forms of raw materials, labor, and energy) into outputs (in the form
of goods and/or services).

10. Strategic management

Strategic management involves the formulation and implementation of the major goals
and initiatives taken by a companys top management on behalf of owners, based on
consideration of resources and an assessment of the internal and external environments
in which the organization competes. (Nag, R.; Hambrick, D. C.; Chen, M.-J (2007).
Strategic management provides overall direction to the enterprise and involves specifying
the organization's objectives, developing policies and plans designed to achieve these
objectives, and then allocating resources to implement the plans. Academics and
practicing managers have developed numerous models and frameworks to assist in
strategic decision making in the context of complex environments and competitive
dynamics. Strategic management is not static in nature; the models often include a
feedback loop to monitor execution and inform the next round of planning. Dr. Vladimir
Kvint defines strategy as a system of finding, formulating, and developing a doctrine that
will ensure long-term success if followed faithfully. (Kvint, Vladimir. (2009).
Formulation of strategy involves analyzing the environment in which the organization
operates, then making a series of strategic decisions about how the organization will
compete. Formulation ends with a series of goals or objectives and measures for the
organization to pursue. Environmental analysis includes the:
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Remote external environment, including the political, economic, social,

technological, legal and environmental landscape (PESTLE);

Industry environment, such as the competitive behavior of rival organizations, the

bargaining power of buyers/customers and suppliers, threats from new entrants to
the industry, and the ability of buyers to substitute products (Porters 5 forces);
and

Internal environment, regarding the strengths and weaknesses of the

organizations resources (i.e., its people, processes and IT systems).

According to Henry Mintzberg, there are five types of marketing strategies

(Mintzberg, Henry. and Quinn, J.B. 1988):
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Strategy as plan a directed course of action to achieve an intended set of goals;

similar to the strategic planning concept;

Strategy as pattern a consistent pattern of past behavior, with a strategy realized

over time rather than planned or intended. Where the realized pattern was different
from the intent, he referred to the strategy as emergent;

Strategy as position locating brands, products, or companies within the market,

based on the conceptual framework of consumers or other stakeholders; a strategy
determined primarily by factors outside the firm;

Strategy as ploy a specific maneuver intended to outwit a competitor; and

Strategy as perspective executing strategy based on a theory of the business or

natural extension of the mindset or ideological perspective of the organization.

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LITERATURE:

1. Porter, Michael (1998). Competitive Strategy (revised ed.). The Free Press.
2. Drucker. F. Peter. (1999). Management Challenges for the 21st Century.
Burlington, USA: Elsevier Ltd
3. Joshi, Rakesh Mohan, (2005) International Marketing, Oxford University Press:
New Delhi and New York
4. Johnason, P. (2009). Human resource management: A critical approach. London:
Routledge.
5. Ulrich, Dave (1996). Human Resource Champions. The next agenda for adding
value and delivering results. Boston, Mass.: Harvard Business School Press.
6. Kleiman. Lawrence, S. (2010). Management and Executive Development.
Business: Encyclopedia of Business. Retrieved 25 May 2011.
7. Mintzberg, Henry and Quinn, J.B. (1988). The Strategy Process. Prentice-Hall,
Harlow.
8. Kvint, Vladimir (2009). The Global Emerging Market: Strategic Management and
Economics. London: Routeledge.
9. Nag, R.; Hambrick. D. C.; Chen, M.-J. (2007). What is strategic management,
really? Inductive derivation of a consensus definition of the field (PDF). Strategic
Management Journal 28 (9): 935955. Retrieved October 22, 2012.
10. http://www.wikipedia.org

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