Managementinbusinessesandorganizationsis the function that coordinates the efforts of people to accomplish goals andobjectivesusing available resources efficiently and effectively.Management includesplanning,organizing,staffing,leadingor directing, andcontrollinganorganizationto accomplish the goal.Resourcingencompasses the deployment and manipulation ofhuman resources,financialresources,technologicalresources, andnatural resources. Management is also anacademic discipline, asocial sciencewhose objective is to study social organization.Etymology[edit]The verb 'manage' comes from theItalianmaneggiare(to handle, especially tools), which derives from the twoLatinwordsmanus(hand) andagere(to act).In that course, the French wordmnagerie, derived frommnager(to keep house; cf.mnagefor household), for housekeeping also encompasses taking care of domestic animals. Later,mesnagement(resp.mnagement) influenced the development in meaning of the English wordmanagementin the 17th and 18th centuries.[1]Thus, it should be noted thatMnagerieis the French translation ofXenophon's famous bookOeconomicus[2](Greek:) on household matters andHusbandry.While theItalianwordmaneggiarerefers to subaltern responsibilities, the work of an executive would be described asgestire.Definitions[edit]Views on the definition and scope of management include: According toHenri Fayol, "to manage is to forecast and to plan, to organise, to command, to co-ordinate and to control."[3] Fredmund Malikdefines it as "the transformation of resources into utility." Management included as one of the factors of production - along with machines, materials and money Peter Drucker(19092005) saw the basic task of a management as twofold:marketingandinnovation. Nevertheless, innovation is also linked to marketing (product innovation is a central strategic marketing issue). Peter Drucker identifies marketing as a key essence for business success, but management and marketing are generally understood[by whom?]as two different branches of business administration knowledge. Andreas Kaplanspecifically definesEuropean Managementas a cross-cultural, societal management approach based on interdisciplinary principles.[4] Directors and managers should have the authority and responsibility to make decisions to direct an enterprise when given the authority[citation needed] As a discipline, management comprises the interlocking functions of formulating corporate policy and organizing, planning, controlling, and directing a firm's resources to achieve a policy's objectives The size of management can range from one person in a small firm to hundreds or thousands of managers in multinational companies. In large firms, the board of directors formulates the policy that the chief executive officer implements.[5]Theoretical scope[edit]Management involves identifying the mission, objective, procedures, rules and the manipulation of the human capital of an enterprise to contribute to the success of the enterprise. This implies effective communication: an enterprise environment (as opposed to a physical or mechanical mechanism), implies human motivation and implies some sort of successful progress or system outcome. As such, management is not the manipulation of a mechanism (machine or automated program), not the herding of animals, and can occur in both a legal as well as illegal enterprise or environment.Management does not need to be seen from enterprise point of view alone, because management is an essential function to improve one's life and relationships. Management is therefore everywhere and it has a wider range of application. Based on this, management must have humans, communication, and a positive enterprise endeavor. Plans, measurements, motivational psychological tools, goals, and economic measures (profit, etc.) may or may not be necessary components for there to be management. At first, one views management functionally, such as measuring quantity, adjustingplans, meetinggoals. This applies even in situations where planning does not take place. From this perspective,Henri Fayol(18411925)[6]considers management to consist of sixfunctions:1. Forecasting2. Planning3. Organizing4. Commanding5. Coordinating6. ControllingHenri Fayolwas one of the most influential contributors to modern concepts of management.[citation needed]In another way of thinking,Mary Parker Follett(18681933), defined management as "the art of getting things done through people". She described management as philosophy.[7]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, the shifting nature of definitions and the connection of managerial practices with the existence of amanagerial cadreorclass.One habit of thought regards management as equivalent to "business administration" and thus excludes management in places outsidecommerce, as for example incharitiesand in thepublic 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 institutions (such as theHarvard Business School) use that name while others (such as theYale School of Management) employ the more inclusive 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 acorporation. Historically this use of the term often contrasted with the term"Labor"- referring to those being managed.But in the present era management's use is identified in the wide areas and its frontiers have been pushed to a broader range. Apart from profitable organizations even non-profitable organizations (NGO) apply management concepts. The concept and its uses are not constrained. Management on the whole is the process of planning, organizing, staffing, leading and controlling.Nature of managerial work[edit]In profitable organizations, management's primary function is the satisfaction of a range ofstakeholders. 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 nonprofit management, add the importance of keeping the faith of donors. In most models of management andgovernance, shareholders vote for theboard 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 is rare.In thepublic sectorof countries constituted asrepresentative democracies, voters elect politicians to public office. Such politicians hire many managers and administrators, and in some countries like theUnited Statespolitical appointees lose their jobs on the election of a new president/governor/mayor.Historical development[edit]Some see management (by definition) as late-modern (in the sense of latemodernity) conceptualization. On those terms it cannot have a pre-modern history, only harbingers (such asstewards). Others, however, detect management-like-thought back toSumeriantraders and to the builders of the pyramids ofancient Egypt. Slave-owners through the centuries faced the problems of exploiting/motivating a dependent but sometimes unenthusiastic or recalcitrant workforce, but many pre-industrialenterprises, given their small scale, did not feel compelled to face the issues of management systematically. However,innovationssuch as the spread ofHindu-Arabic numerals(5th to 15th centuries) and the codification ofdouble-entry book-keeping(1494) providedtoolsfor management assessment, planning and control.With the changing workplaces ofindustrial revolutionsin the 18th and 19th centuries,militarytheory and practice contributed approaches to managing the newly-popularfactories.[8]Given the scale of most commercial operations and the lack of mechanized record-keeping and recording before the industrial revolution, it made sense for mostownersof 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 ofshareholders) and day-to-day managers (independent specialists in planning and control) gradually became more common.Early writing[edit]While management (according to some definitions) has existed for millennia, several writers have created a background of works that assisted in modern management theories.[9]Someancient military textshave been cited for lessons that civilian managers can gather. For example, Chinese generalSun Tzuin the 6th century BC,The Art of War, recommends being aware of and acting on strengths and weaknesses of both a manager's organization and a foe's.[9]Various ancient and medieval civilizations have produced "mirrors for princes" books, which aim to advise new monarchs on how to govern. Examples include the IndianArthashastrabyChanakya(written around 300BC), andThe Princeby Italian authorNiccol Machiavelli(c. 1515).[10]Further information:Mirrors for princesWritten in 1776 byAdam Smith, aScottishmoral philosopher,The Wealth of Nationsdiscussed efficient organization of work throughdivision of labour.[10]Smith described how changes in processes could boost productivity in the manufacture ofpins. While individuals could produce 200 pins per day, Smith analyzed the steps involved in manufacture and, with 10 specialists, enabled production of 48,000 pins per day.[10]19th century[edit]Classical economists such asAdam Smith(17231790) andJohn Stuart Mill(18061873) provided a theoretical background toresource-allocation,production, andpricingissues. About the same time, innovators likeEli Whitney(17651825),James Watt(17361819), andMatthew Boulton(17281809) developed elements of technical production such asstandardization,quality-controlprocedures,cost-accounting, interchangeability of parts, andwork-planning. Many of these aspects of management existed in the pre-1861 slave-based sector of theUSeconomy. That environment saw 4 million people, as the contemporary usages had it, "managed" in profitable quasi-mass production.Salaried managers as an identifiable group first became prominent in the late 19th century.[11]20th century[edit]By about 1900 one finds managers trying to place their theories on what they regarded as a thoroughly scientific basis (seescientismfor perceived limitations of this belief). Examples includeHenry R. Towne'sScience of managementin the 1890s,Frederick Winslow Taylor'sThe Principles of Scientific Management(1911),FrankandLillian Gilbreth'sApplied motion study(1917), andHenry L. Gantt's charts (1910s). J. Duncan wrote the firstcollegemanagement-textbookin 1911. In 1912Yoichi UenointroducedTaylorismtoJapanand became the firstmanagement consultantof the "Japanese-management style". His son Ichiro Ueno pioneered Japanesequality assurance.The first comprehensive theories of management appeared around 1920. TheHarvard Business Schooloffered the firstMaster of Business Administrationdegree (MBA) in 1921. People likeHenri Fayol(18411925) andAlexander Churchdescribed the various branches of management and their inter-relationships. In the early 20th century, people like Ordway Tead (18911973),Walter Scottand J. Mooney applied the principles ofpsychologyto management. Other writers, such asElton Mayo(18801949),Mary Parker Follett(18681933),Chester Barnard(18861961),Max Weber(18641920), who saw what he called the "administrator" asbureaucrat[12]),Rensis Likert(19031981), andChris Argyris(* 1923) approached the phenomenon of management from asociologicalperspective.Peter Drucker(19092005) wrote one of the earliest books on applied management:Concept of the Corporation(published in 1946). It resulted fromAlfred Sloan(chairman ofGeneral Motorsuntil 1956) commissioning a study of theorganisation. Drucker went on to write 39 books, many in the same vein.H. Dodge,Ronald Fisher(18901962), and Thornton C. Fry introduced statistical techniques into management-studies. In the 1940s,Patrick Blackettworked in the development of theapplied-mathematicsscienceofoperations research, initially for military operations. Operations research, sometimes known as "management science" (but distinct from Taylor'sscientific management), attempts to take ascientificapproach to solving decision-problems, and can apply directly to multiple management problems, particularly in the areas oflogisticsand operations.Some of the more recentdevelopments include theTheory of Constraints,management by objectives,reengineering,Six Sigmaand variousinformation-technology-driven theories such asagile software development, as well as group-management theories such asCog'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 forpopularised systems of management ideasto peddle their wares. In this context manymanagement fadsmay have had more to do withpop psychologythan with scientific theories of management.Towards the end of the 20th century, business management came to consist of six separate branches,[citation needed]namely:1. financial management2. human resource management3. information technology management(responsible formanagement information systems)4. marketing management5. operations managementor production management6. strategic management21st century[edit]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.[citation needed]Branches of management theory also exist relating tononprofitsand to government: such aspublic administration,public management, and educational management. Further, management programs related tocivil-societyorganizations have also spawned programs innonprofitmanagement andsocial entrepreneurship.Note that many of the assumptions made by management have come under attack frombusiness-ethicsviewpoints,critical management studies, andanti-corporate activism.As one consequence,workplace democracy(sometimes referred to asWorkers' self-management) has become both more common and advocated to a greater extent, 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 acommand hierarchy. All management embraces to some degree a democratic principlein that in the long term, the majority of workers must support management. Otherwise, they leave to find other work or go on strike. Despite the move toward workplace democracy, command-and-control organization structures remain commonplace asde factoorganization structure. Indeed, the entrenched nature of command-and-control is evident in the way that recent layoffs have been conducted with management ranks affected far less than employees at the lower levels. In some cases, management has even rewarded itself with bonuses after laying off lower-level workers.[13]According to leadership academicManfred F.R. Kets de Vries, a contemporary senior management team will almost inevitably have somepersonality disorders.[14]