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''Manager redirects here. For use in sports, see [[Coach (sport)]][[Manager (baseball)]] or [[Manager (professional wrestling)]].''
{{PropDel}}<br><br>{{subpages}}
:''Enterprise management redirects here. For use in computer networks, see [[Network management]] or [[Systems management]]''
''Manager redirects here. For use in sports, see Coach (sport),  Manager (baseball) or Manager (professional wrestling).''
:''Enterprise management redirects here. For use in computer networks, see Network management or Systems management''


<!-- A split into two articles: '''Management'' (covering theory, practice and scope of management; and '''Manager''' (covering the people who manage) might help clarify and systematise this article.-->
<!-- A split into two articles: '''Management'' (covering theory, practice and scope of management; and '''Manager''' (covering the people who manage) might help clarify and systematise this article.-->


'''Management''' is the act of directing and controlling a group of people for the purpose of coordinating and harmonizing the group towards accomplishing a goal beyond the scope of individual effort. Management encompasses the deployment and manipulation of [[human resources]], [[financial]] resources, [[technological]] resources, and [[natural resources]]. '''Management''' can also refer to the person or people who perform the act of management.
'''Management''' is the act of directing and controlling a group of people for the purpose of coordinating and harmonizing the group towards accomplishing a goal beyond the scope of individual effort. Management encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources. '''Management''' can also refer to the person or people who perform the act of management.


The verb '''Manage''' comes from the [[Italian language|Italian]] ''maneggiare'' (to handle — especially a horse), which in turn derives from the [[Latin]] ''manus'' (hand). The French word ''mesnagement'' (later ''ménagement'') influenced the development in meaning of the English word ''management'' in the 17th and 18th centuries.<ref>[[Oxford English Dictionary|Oxford English Dictionary]]</ref>
The verb '''Manage''' comes from the Italian language|Italian ''maneggiare'' (to handle — especially a horse), which in turn derives from the Latin ''manus'' (hand). The French word ''mesnagement'' (later ''ménagement'') influenced the development in meaning of the English word ''management'' in the 17th and 18th centuries.<ref>Oxford English Dictionary|Oxford English Dictionary</ref>


Management has to do with [[power (sociology)|power]] by position, whereas [[leadership]] involves power by influence. Compare [[stewardship]].
Management has to do with power (sociology)|power by position, whereas leadership involves power by influence. Compare stewardship.


== Functions of management ==
== Functions of management ==
Management operates through various functions, often classified as planning, organizing, leading/motivating and controlling.
Management operates through various functions, often classified as planning, organizing, leading/motivating and controlling.


* Planning: deciding what needs to happen in the future (today, next week, next month, next year, over the next five years, etc.) and generating [[plan]]s for action.
* Planning: deciding what needs to happen in the future (today, next week, next month, next year, over the next five years, etc.) and generating plans for action.


* Organizing: making optimum use of the resources required to enable the successful carrying out of plans.
* Organizing: making optimum use of the resources required to enable the successful carrying out of plans.
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== Theoretical scope ==
== Theoretical scope ==


[[Mary Parker Follett]] (1868–1933), who wrote on the topic in the early twentieth century, defined management as "the art of getting things done through people".
Mary Parker Follett (1868–1933), who wrote on the topic in the early twentieth century, defined management as "the art of getting things done through people".
<ref>
<ref>
''Vocational Business: Training, Developing and Motivating People''  by Richard Barrett - Business & Economics - 2003. - Page 51.
''Vocational Business: Training, Developing and Motivating People''  by Richard Barrett - Business & Economics - 2003. - Page 51.
</ref>
</ref>
One can also think of management functionally, as the action of measuring a quantity on a regular basis and of adjusting some initial [[plan]]; or as the actions taken to reach one's intended goal. This applies even in situations where planning does not take place. From this perspective, Frenchman [[Henri Fayol]]
One can also think of management functionally, as the action of measuring a quantity on a regular basis and of adjusting some initial plan; or as the actions taken to reach one's intended goal. This applies even in situations where planning does not take place. From this perspective, Frenchman Henri Fayol
<ref>
<ref>
''Administration industrielle et générale - prévoyance organisation - commandement, coordination – contrôle'', Paris : Dunod, 1966
''Administration industrielle et générale - prévoyance organisation - commandement, coordination – contrôle'', Paris : Dunod, 1966
Line 33: Line 34:
considers management to consist of five functions:  
considers management to consist of five functions:  


# [[planning]]
# planning
# [[organizing]]
# organizing
# [[leadership|leading]]
# leadership|leading
# [[coordination|co-ordinating]]
# coordination|co-ordinating
# [[controlling]]
# controlling


Some people, however, find this definition, while useful, far too narrow. The phrase "management is what managers do" occurs widely, suggesting the difficulty of defining management, the shifting nature of definitions, and the connection of managerial practices with the existence of a managerial [[cadre]] or [[social class|class]].  
Some people, however, find this definition, while useful, far too narrow. The phrase "management is what managers do" occurs widely, suggesting the difficulty of defining management, the shifting nature of definitions, and the connection of managerial practices with the existence of a managerial cadre or social class|class.  


One habit of thought regards management as  equivalent to "business administration", although this then excludes management in places outside [[commerce]], as for example in [[Charitable organization|charities]] and in the [[public sector]]. Nonetheless, many people refer to university departments which teach management as "[[business school]]s", and some institutions (such as the [[Harvard Business School]]) use that name.  
One habit of thought regards management as  equivalent to "business administration", although this then excludes management in places outside commerce, as for example in Charitable organization|charities and in the public sector. Nonetheless, many people refer to university departments which teach management as "business schools", and some institutions (such as the Harvard Business School) use that name.  


Speakers of English may also use the term "management" or "the management" as a collective word describing the managers of an organization, for example of a [[corporation]].
Speakers of English may also use the term "management" or "the management" as a collective word describing the managers of an organization, for example of a corporation.


== Historical development ==
== Historical development ==


Difficulties arise in tracing the history of management. Some see it (by definition) 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]]s). Others, however, detect management-like activities in the pre-modern past. Some writers trace the development of management-thought back to [[Sumeria]]n traders and to 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 [[business|enterprises]], given their small scale, did not feel compelled to face the issues of management systematically. However, innovations such as the spread of [[Arabic numerals|Hindu-Arabic numerals]] (5th to 15th centuries) and the codification of [[Double-entry bookkeeping system|double-entry book-keeping]] (1494) provided [[management tool|tool]]s for management assessment, planning and control.
Difficulties arise in tracing the history of management. Some see it (by definition) 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 activities in the pre-modern past. Some writers trace the development of management-thought back to Sumerian traders and to 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 business|enterprises, given their small scale, did not feel compelled to face the issues of management systematically. However, innovations such as the spread of Arabic numerals|Hindu-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.


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|owner]]s of enterprises in those times to carry out management functions by and for themselves. But with growing size and complexity of organizations, the split between owners (individuals, industrial dynasties or groups of [[shareholder]]s) and day-to-day managers (independent specialists in planning and control) gradually became more common.
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 growing size and complexity of organizations, the split between owners (individuals, industrial dynasties or groups of shareholders) and day-to-day managers (independent specialists in planning and control) gradually became more common.


=== 19th century ===
=== 19th century ===


Some argue that modern management as a discipline began as an off-shoot of [[economics]] in the 19th century. Classical economists such as Adam Smith (1723 - 1790) and [[John Stuart Mill]] (1806 - 1873) provided a theoretical background to [[resource allocation|resource-allocation]], [[production, costs, and pricing|production]], 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 [[United States of America|US]] economy. That environment saw 4 million people, as the contemporary usages had it, "managed" in profitable quasi-[[mass production]].
Some argue that modern management as a discipline began as an off-shoot of economics in the 19th century. Classical economists such as Adam Smith (1723 - 1790) and John Stuart Mill (1806 - 1873) provided a theoretical background to resource allocation|resource-allocation, production, costs, and pricing|production, 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 United States of America|US economy. That environment saw 4 million people, as the contemporary usages had it, "managed" in profitable quasi-mass production.


By the late 19th century, [[marginal theory of value|marginal economists]] [[Alfred Marshall]] (1842 - 1924) and [[Léon Walras]] (1834 - 1910) and others introduced a new layer of complexity to the theoretical underpinnings of management. [[Joseph Wharton]] offered the first tertiary-level course in management in [[1881]].
By the late 19th century, marginal theory of value|marginal economists Alfred Marshall (1842 - 1924) and Léon Walras (1834 - 1910) and others introduced a new layer of complexity to the theoretical underpinnings of management. Joseph Wharton offered the first tertiary-level course in management in 1881.


=== 20th century ===
=== 20th century ===


By about [[1900]] one finds managers trying to place their theories on what they regarded as a thoroughly scientific basis (see [[scientism]] for the purported limits of this belief). Examples include [[Henry R. Towne]]'s ''Science of management'' in the 1890s, [[Frederick Winslow Taylor]]'s ''[[Scientific management]]'' (1911), [[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 first [[management consultant]] of the "Japanese-management style". His son [[Ichiro Ueno]] pioneered Japanese [[quality]]-assurance.
By about 1900 one finds managers trying to place their theories on what they regarded as a thoroughly scientific basis (see scientism for the purported limits of this belief). Examples include Henry R. Towne's ''Science of management'' in the 1890s, Frederick Winslow Taylor's ''Scientific management'' (1911), 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 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]] invented the [[Master of Business Administration]] degree (MBA) in 1921. People like [[Henri Fayol]] (1841 - 1925) and [[Alexander Hamilton Church|Alexander Church]] described the various branches of management and their inter-relationships. In the early [[20th century]], people like Ordway Tead (1891 - 1973), [[Walter Scott]] and J. Mooney applied the principles of [[psychology]] to management, while other writers, such as [[Elton Mayo]] (1880 - 1949), [[Mary Follett|Mary Parker Follett]] (1868 - 1933), [[Chester Barnard]] (1886 - 1961), [[Max Weber]] (1864 - 1920), [[Rensis Likert]] (1903 - 1981), and [[Chris Argyris]] (1923 - ) approached the phenomenon of management from a [[sociology|sociological]] perspective.  
The first comprehensive theories of management appeared around 1920. The Harvard Business School invented the Master of Business Administration degree (MBA) in 1921. People like Henri Fayol (1841 - 1925) and Alexander Hamilton Church|Alexander Church described the various branches of management and their inter-relationships. In the early 20th century, people like Ordway Tead (1891 - 1973), Walter Scott and J. Mooney applied the principles of psychology to management, while other writers, such as Elton Mayo (1880 - 1949), Mary Follett|Mary Parker Follett (1868 - 1933), Chester Barnard (1886 - 1961), Max Weber (1864 - 1920), Rensis Likert (1903 - 1981), and Chris Argyris (1923 - ) approached the phenomenon of management from a sociology|sociological perspective.  


[[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 Corporation|General Motors]] until 1956) commissioning a study of the [[organisation]]. Drucker went on to write 39 books, many in the same vein.
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 Corporation|General Motors until 1956) commissioning a study of the organisation. Drucker went on to write 39 books, many in the same vein.


H. Dodge, [[Ronald Fisher]] (1890 - 1962), and Thornton C. Fry introduced statistical techniques into management-studies. In the [[1940s]], [[Patrick Maynard Stuart Blackett|Patrick Blackett]] combined these statistical theories with [[microeconomics|microeconomic]] [[theory]] and gave birth to the [[science]] of [[operations research]]. Operations research, sometimes known as "management science" (but distinct from Taylor's [[scientific management]]), attempts to take a [[science|scientific]] approach to solving management problems, particularly in the areas of [[logistics]] and operations.
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 combined these statistical theories with microeconomics|microeconomic theory and gave birth to the science of operations research. Operations research, sometimes known as "management science" (but distinct from Taylor's scientific management), attempts to take a science|scientific approach to solving management problems, particularly in the areas of logistics and operations.


Some of the more [[as of 2006|recent]] developments include the [[theory of constraints]], [[management by objectives]], [[reengineering]], and various [[information technology|information-technology]]-driven theories such as [[agile software development]], as well as group management theories such as [[Cog's Ladder]].  
Some of the more recent developments include the theory of constraints, management by objectives, reengineering, and various information technology|information-technology-driven theories such as agile software development, as well as group management theories such as Cog's Ladder.  


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 fad]]s may have had more to do with [[pop psychology]] than with scientific theories of management.  
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.  


Towards the end of the 20th century, business management came to consist of six separate branches, namely:
Towards the end of the 20th century, business management came to consist of six separate branches, namely:
* [[Human resources|Human resource]] management
* Human resources|Human resource management
* [[Operations management]] or production management
* Operations management or production management
* [[Strategic management]]
* Strategic management
* [[Marketing management]]
* Marketing management
* [[Finance|Financial management]]
* Finance|Financial management
* [[Information technology management]] responsible for [[management information systems]]
* Information technology management responsible for management information systems


=== 21st century ===
=== 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.
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 [[Non-profit organization|nonprofit]]s and to government: such as [[public administration]], [[public management]], and educational management.  Further, management programs related to [[civil society|civil-society]] organizations have also spawned programs in [[nonprofit management]] and [[social entrepreneurship]].  
Branches of management theory also exist relating to Non-profit organization|nonprofits and to government: such as public administration, public management, and educational management.  Further, management programs related to civil society|civil-society organizations have also spawned programs in nonprofit management and social entrepreneurship.  


Note that many of the assumptions made by management have come under attack from [[business ethics]] viewpoints, [[critical management studies]], and [[anti-corporate activism]].  
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]] has become both more common, and more advocated, in some places distributing all management functions among the 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 to some degree embraces democratic principles in that in the long term workers must give majority support to management; otherwise they leave to find other work, or go on strike. Hence management has started to become less based on the conceptualisation of ''classical'' military command-and-control, and more about [[facilitation]] and support of collaborative activity, utilizing principles such as those of [[human interaction management]] to deal with the complexities of human interaction. Indeed, the concept of [[Ubiquitous command and control|Ubiquitous command-and-control]] posits such a transformation for 21st century military management.
As one consequence, workplace democracy has become both more common, and more advocated, in some places distributing all management functions among the 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 to some degree embraces democratic principles in that in the long term workers must give majority support to management; otherwise they leave to find other work, or go on strike. Hence management has started to become less based on the conceptualisation of ''classical'' military command-and-control, and more about facilitation and support of collaborative activity, utilizing principles such as those of human interaction management to deal with the complexities of human interaction. Indeed, the concept of Ubiquitous command and control|Ubiquitous command-and-control posits such a transformation for 21st century military management.


== Nature of managerial work ==
== Nature of managerial work ==


In for-profit work, management has as its primary function 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 rewarding employment opportunities (for employees). In nonprofit management, add the importance of keeping the faith of donors. In most models of management/[[governance]], shareholders vote for the [[board of directors]], 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 occurs only very rarely.  
In for-profit work, management has as its primary function 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 rewarding employment opportunities (for employees). In nonprofit management, add the importance of keeping the faith of donors. In most models of management/governance, shareholders vote for the board of directors, 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 occurs only very rarely.  


In the [[public sector]] of countries constituted as [[representative democracy|representative democracies]], voters elect politicians to public office. Such politicians hire many managers and administrators, and in some countries like the [[United States]] political appointees lose their jobs on the election of a new president/governor/mayor. Some 2500 people serve at the pleasure of the United States Chief Executive, including all of the top US government executives.
In the public sector of countries constituted as representative democracy|representative democracies, voters elect politicians to public office. Such politicians hire many managers and administrators, and in some countries like the United States of America political appointees lose their jobs on the election of a new president/governor/mayor. Some 2500 people serve at the pleasure of the United States Chief Executive, including all of the top US government executives.


Public, private, and voluntary sectors place different demands on managers, but all must retain the faith of those who select them (if they wish to retain their jobs), retain the faith of those people that fund the organization, and retain the faith of those who work for the organization. If they fail to convince employees of the advantages of staying rather than leaving, they may tip the organization into a downward spiral of hiring, training, firing, and recruiting. Management also has the task of [[innovation|innovating]] and of improving the functioning of organizations.
Public, private, and voluntary sectors place different demands on managers, but all must retain the faith of those who select them (if they wish to retain their jobs), retain the faith of those people that fund the organization, and retain the faith of those who work for the organization. If they fail to convince employees of the advantages of staying rather than leaving, they may tip the organization into a downward spiral of hiring, training, firing, and recruiting. Management also has the task of innovation|innovating and of improving the functioning of organizations.


{{POV-section}}
{{POV-section}}
== The importance of control ==
== The importance of control ==
At least two perspectives on role of [[control]] exist:
At least two perspectives on role of control exist:


# Top management expects to control everything, making all decisions, while middle and lower managers implement decisions, and production workers operate only as instructed
# Top management expects to control everything, making all decisions, while middle and lower managers implement decisions, and production workers operate only as instructed
Line 106: Line 107:


== Managerial levels/hierarchy ==
== Managerial levels/hierarchy ==
There are at least two dimensions to the structural relationships between managers and the managed:
*Number of levels of hierarchy
*Span of control at each level of hierarchy; how many people report to a manager of a given level?
Matrix management, however, breaks the strict relationship between manager and managed; a given specialist may report, on different projects, to different managers. A useful distinction made in many military organization is that a function or person will have separate '''administrative''' and '''operational''' chains of command. Administrative management is responsible for individual training, performance reviews, career planning, etc. Operational management is oriented to the task, not the individual. 


The management of a large organisation may have three levels:
The management of a large organisation may have three, or many more levels:


# [[Senior management]] (or "top management" or "upper management")
# Senior management (or "top management" or "upper management")
# [[Middle management]]
# Middle management
# Low-level management, such as [[Supervisor]]s and [[Team leader]]s
# Low-level management, such as Supervisors and Team leaders; such people are also "working management" who carry out some of the work as well as directing others to perform other parts


== References ==
== References ==
Line 119: Line 124:
== See also ==
== See also ==


* [[Adhocracy]]
* Adhocracy
* [[Administration (business)|Administration]]
* Administration (business)|Administration
* [[Administrative incompetence]]
* Administrative incompetence
* [[Collaboration]]
* Collaboration
* [[Collaborative methodologies]]
* Collaborative methodologies
* [[Corporate governance]]
* Corporate governance
* [[Design management]]
* Design management
* [[Engineering management]]
* Engineering management
* [[Futures Studies]]
* Futures Studies
* [[Knowledge visualization]]
* Knowledge visualization
* [[Leadership]]
* Leadership
* [[Management consulting]]
* Management consulting
* [[Management development]]
* Management development
* [[Management fad]]
* Management fad
* [[Management styles]]
* Management styles
* [[Management Technology]]
* Management Technology
* [[Managerialism]]
* Managerialism
* [[Managing upwards]]
* Managing upwards
* [[Micromanagement]]
* Micromanagement
* [[Middle management]]
* Middle management
* [[Music management]]
* Music management
* [[Organizational studies]]
* Organizational studies
* [[Organizational empowerment]]
* Organizational empowerment
* [[Predictive analytics]]
* Predictive analytics
* [[Public administration]]
* Public administration
* [[Scientific management]]
* Scientific management
* [[Senior management]]
* Senior management
* [[Social entrepreneurship]]
* Social entrepreneurship
* [[Virtual management]]
* Virtual management
* [[Peter Drucker]]'s [[management by objectives]]
* Peter Drucker's management by objectives
* [[Eliyahu M. Goldratt]]'s [[theory of constraints]]
* Eliyahu M. Goldratt's theory of constraints
* [[Pointy Haired Boss]] — a negative stereotype of managers
* Pointy Haired Boss — a negative stereotype of managers


=== Lists ===
=== Lists ===
: ''Main lists: [[List of basic management topics]] and [[List of management topics]]''
: ''Main lists: List of basic management topics and List of management topics''


* [[List of marketing topics]]
* List of marketing topics
* [[List of human resource management topics]]
* List of human resource management topics
* [[List of economics topics]]
* List of economics topics
* [[List of finance topics]]
* List of finance topics
* [[List of accounting topics]]
* List of accounting topics
* [[List of information technology management topics]]
* List of information technology management topics
* [[List of production topics]]
* List of production topics
* [[List of business law topics]]
* List of business law topics
* [[List of business ethics, political economy, and philosophy of business topics]]
* List of business ethics, political economy, and philosophy of business topics
* [[List of business theorists]]
* List of business theorists
* [[List of economists]]
* List of economists
* [[List of corporate leaders]]
* List of corporate leaders
* [[List of companies]]
* List of companies


; Timelines
; Timelines
* [[Timeline of management techniques]]
* Timeline of management techniques
{{Social sciences-footer}}
{{Social sciences-footer}}
.
.
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# [http://aomonline.org (United States) Academy of Management - dedicated to the scholarship and practice of management.]
# [http://aomonline.org (United States) Academy of Management - dedicated to the scholarship and practice of management.]
# [http://www.prairienet.org/~dsb/management.htm Managing programmers and software development]
# [http://www.prairienet.org/~dsb/management.htm Managing programmers and software development]
[[Category:Business Workgroup]]
[[Category:Sociology Workgroup]]

Revision as of 06:32, 18 March 2024

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Manager redirects here. For use in sports, see Coach (sport), Manager (baseball) or Manager (professional wrestling).

Enterprise management redirects here. For use in computer networks, see Network management or Systems management


Management is the act of directing and controlling a group of people for the purpose of coordinating and harmonizing the group towards accomplishing a goal beyond the scope of individual effort. Management encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources. Management can also refer to the person or people who perform the act of management.

The verb Manage comes from the Italian language|Italian maneggiare (to handle — especially a horse), which in turn derives from the Latin manus (hand). The French word mesnagement (later ménagement) influenced the development in meaning of the English word management in the 17th and 18th centuries.[1]

Management has to do with power (sociology)|power by position, whereas leadership involves power by influence. Compare stewardship.

Functions of management

Management operates through various functions, often classified as planning, organizing, leading/motivating and controlling.

  • Planning: deciding what needs to happen in the future (today, next week, next month, next year, over the next five years, etc.) and generating plans for action.
  • Organizing: making optimum use of the resources required to enable the successful carrying out of plans.
  • Leading/Motivating: exhibiting skills in these areas for getting others to play an effective part in achieving plans.
  • Controlling: monitoring — checking progress against plans, which may need modification based on feedback.

Theoretical scope

Mary Parker Follett (1868–1933), who wrote on the topic in the early twentieth century, defined management as "the art of getting things done through people". [2] One can also think of management functionally, as the action of measuring a quantity on a regular basis and of adjusting some initial plan; or as the actions taken to reach one's intended goal. This applies even in situations where planning does not take place. From this perspective, Frenchman Henri Fayol [3] considers management to consist of five functions:

  1. planning
  2. organizing
  3. leadership|leading
  4. coordination|co-ordinating
  5. controlling

Some people, however, find this definition, while useful, far too narrow. The phrase "management is what managers do" occurs widely, suggesting the difficulty of defining management, the shifting nature of definitions, and the connection of managerial practices with the existence of a managerial cadre or social class|class.

One habit of thought regards management as equivalent to "business administration", although this then excludes management in places outside commerce, as for example in Charitable organization|charities and in the public sector. Nonetheless, many people refer to university departments which teach management as "business schools", and some institutions (such as the Harvard Business School) use that name.

Speakers of English may also use the term "management" or "the management" as a collective word describing the managers of an organization, for example of a corporation.

Historical development

Difficulties arise in tracing the history of management. Some see it (by definition) 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 activities in the pre-modern past. Some writers trace the development of management-thought back to Sumerian traders and to 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 business|enterprises, given their small scale, did not feel compelled to face the issues of management systematically. However, innovations such as the spread of Arabic numerals|Hindu-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.

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 growing size and complexity of organizations, the split between owners (individuals, industrial dynasties or groups of shareholders) and day-to-day managers (independent specialists in planning and control) gradually became more common.

19th century

Some argue that modern management as a discipline began as an off-shoot of economics in the 19th century. Classical economists such as Adam Smith (1723 - 1790) and John Stuart Mill (1806 - 1873) provided a theoretical background to resource allocation|resource-allocation, production, costs, and pricing|production, 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 United States of America|US economy. That environment saw 4 million people, as the contemporary usages had it, "managed" in profitable quasi-mass production.

By the late 19th century, marginal theory of value|marginal economists Alfred Marshall (1842 - 1924) and Léon Walras (1834 - 1910) and others introduced a new layer of complexity to the theoretical underpinnings of management. Joseph Wharton offered the first tertiary-level course in management in 1881.

20th century

By about 1900 one finds managers trying to place their theories on what they regarded as a thoroughly scientific basis (see scientism for the purported limits of this belief). Examples include Henry R. Towne's Science of management in the 1890s, Frederick Winslow Taylor's Scientific management (1911), 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 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 invented the Master of Business Administration degree (MBA) in 1921. People like Henri Fayol (1841 - 1925) and Alexander Hamilton Church|Alexander Church described the various branches of management and their inter-relationships. In the early 20th century, people like Ordway Tead (1891 - 1973), Walter Scott and J. Mooney applied the principles of psychology to management, while other writers, such as Elton Mayo (1880 - 1949), Mary Follett|Mary Parker Follett (1868 - 1933), Chester Barnard (1886 - 1961), Max Weber (1864 - 1920), Rensis Likert (1903 - 1981), and Chris Argyris (1923 - ) approached the phenomenon of management from a sociology|sociological perspective.

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 Corporation|General Motors until 1956) commissioning a study of the organisation. Drucker went on to write 39 books, many in the same vein.

H. Dodge, Ronald Fisher (1890 - 1962), and Thornton C. Fry introduced statistical techniques into management-studies. In the 1940s, Patrick Maynard Stuart Blackett|Patrick Blackett combined these statistical theories with microeconomics|microeconomic theory and gave birth to the science of operations research. Operations research, sometimes known as "management science" (but distinct from Taylor's scientific management), attempts to take a science|scientific approach to solving management problems, particularly in the areas of logistics and operations.

Some of the more recent developments include the theory of constraints, management by objectives, reengineering, and various information technology|information-technology-driven theories such as agile software development, as well as group management theories such as Cog's Ladder.

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.

Towards the end of the 20th century, business management came to consist of six separate branches, namely:

  • Human resources|Human resource management
  • Operations management or production management
  • Strategic management
  • Marketing management
  • Finance|Financial management
  • Information technology management responsible for management information systems

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 Non-profit organization|nonprofits and to government: such as public administration, public management, and educational management. Further, management programs related to civil society|civil-society organizations have also spawned programs in nonprofit management and social entrepreneurship.

Note that many of the assumptions made by management have come under attack from business ethics viewpoints, critical management studies, and anti-corporate activism.

As one consequence, workplace democracy has become both more common, and more advocated, in some places distributing all management functions among the 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 to some degree embraces democratic principles in that in the long term workers must give majority support to management; otherwise they leave to find other work, or go on strike. Hence management has started to become less based on the conceptualisation of classical military command-and-control, and more about facilitation and support of collaborative activity, utilizing principles such as those of human interaction management to deal with the complexities of human interaction. Indeed, the concept of Ubiquitous command and control|Ubiquitous command-and-control posits such a transformation for 21st century military management.

Nature of managerial work

In for-profit work, management has as its primary function 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 rewarding employment opportunities (for employees). In nonprofit management, add the importance of keeping the faith of donors. In most models of management/governance, shareholders vote for the board of directors, 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 occurs only very rarely.

In the public sector of countries constituted as representative democracy|representative democracies, voters elect politicians to public office. Such politicians hire many managers and administrators, and in some countries like the United States of America political appointees lose their jobs on the election of a new president/governor/mayor. Some 2500 people serve at the pleasure of the United States Chief Executive, including all of the top US government executives.

Public, private, and voluntary sectors place different demands on managers, but all must retain the faith of those who select them (if they wish to retain their jobs), retain the faith of those people that fund the organization, and retain the faith of those who work for the organization. If they fail to convince employees of the advantages of staying rather than leaving, they may tip the organization into a downward spiral of hiring, training, firing, and recruiting. Management also has the task of innovation|innovating and of improving the functioning of organizations.

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The importance of control

At least two perspectives on role of control exist:

  1. Top management expects to control everything, making all decisions, while middle and lower managers implement decisions, and production workers operate only as instructed
  2. Top management does not decide the "right" way to do something, and lower-level staff become involved in decision-making processes.
  3. Some companies use "slopey shoulder syndrome" style management, where people will take credit for when things go right. However when things go wrong they will pass the blame and responsibility to people either below or adjacent in the company structure.

Managerial levels/hierarchy

There are at least two dimensions to the structural relationships between managers and the managed:

  • Number of levels of hierarchy
  • Span of control at each level of hierarchy; how many people report to a manager of a given level?

Matrix management, however, breaks the strict relationship between manager and managed; a given specialist may report, on different projects, to different managers. A useful distinction made in many military organization is that a function or person will have separate administrative and operational chains of command. Administrative management is responsible for individual training, performance reviews, career planning, etc. Operational management is oriented to the task, not the individual.

The management of a large organisation may have three, or many more levels:

  1. Senior management (or "top management" or "upper management")
  2. Middle management
  3. Low-level management, such as Supervisors and Team leaders; such people are also "working management" who carry out some of the work as well as directing others to perform other parts

References

  1. Oxford English Dictionary|Oxford English Dictionary
  2. Vocational Business: Training, Developing and Motivating People by Richard Barrett - Business & Economics - 2003. - Page 51.
  3. Administration industrielle et générale - prévoyance organisation - commandement, coordination – contrôle, Paris : Dunod, 1966

See also

  • Adhocracy
  • Administration (business)|Administration
  • Administrative incompetence
  • Collaboration
  • Collaborative methodologies
  • Corporate governance
  • Design management
  • Engineering management
  • Futures Studies
  • Knowledge visualization
  • Leadership
  • Management consulting
  • Management development
  • Management fad
  • Management styles
  • Management Technology
  • Managerialism
  • Managing upwards
  • Micromanagement
  • Middle management
  • Music management
  • Organizational studies
  • Organizational empowerment
  • Predictive analytics
  • Public administration
  • Scientific management
  • Senior management
  • Social entrepreneurship
  • Virtual management
  • Peter Drucker's management by objectives
  • Eliyahu M. Goldratt's theory of constraints
  • Pointy Haired Boss — a negative stereotype of managers

Lists

Main lists: List of basic management topics and List of management topics
  • List of marketing topics
  • List of human resource management topics
  • List of economics topics
  • List of finance topics
  • List of accounting topics
  • List of information technology management topics
  • List of production topics
  • List of business law topics
  • List of business ethics, political economy, and philosophy of business topics
  • List of business theorists
  • List of economists
  • List of corporate leaders
  • List of companies
Timelines
  • Timeline of management techniques

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External links

  1. Management Courses at MIT Sloan, OpenCourseWare
  2. Research on Organizations: Bibliography Database and Maps
  3. (United States) Academy of Management - dedicated to the scholarship and practice of management.
  4. Managing programmers and software development