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Coordinating the efforts of persons

Management (or managing) is the administration of organizations, whether they are a business, a nonprofit organization, or a government body through business administration, nonprofit management, or the political science sub field of public administration respectively. It is the process of managing the resources of businesses, governments, and other organizations. Larger organizations generally have three hierarchical levels of managers, in a pyramid structure:

Senior management roles include the board of directors and a chief executive officer (CEO) or a president 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. Middle management roles include branch managers, regional managers, department managers, and section managers. They provide direction to the front line managers and communicate the strategic goals and policy of senior management to the front line managers. Line management roles include supervisors and front line team leaders, 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 across different disciplines at colleges and universities. Prominent major degree programs in management include Management, Business Administration and Public Administration. Social scientists study management as an academic discipline, investigating areas such as social organization, organizational adaptation, and organizational leadership. In recent decades, there has been a movement for evidence based management.

The English verb manage has its roots in the fifteenth century French verb mesnager, which often referred in equestrian language "to hold in hand the reins of a horse". Also the Italian term maneggiare (to handle, especially tools or a horse) is possible. In Spanish, manejar can also mean to rule the horses. These three terms derive from the two Latin words manus (hand) and agere (to act). The French word for housekeeping, ménagerie, derived from ménager ("to keep house"; compare ménage for "household"), also encompasses taking care of domestic animals. Ménagerie is the French translation of Xenophon's famous book Oeconomicus on household matters and husbandry. The French word mesnagement (or ménagement) influenced the semantic development of the English word management in the 17th and 18th centuries.

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 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 responsibilities and likely job titles.

The top or senior layer of management is a small group which consists of the board of directors (including non executive directors, executive directors and independent directors), president, vice president, CEOs and other members of the C level executives. Different organizations have various members in their C suite, which may include a chief financial officer, chief technology officer, and so on. They are responsible for controlling and overseeing the operations of the entire organization. They set a "tone at the top" and develop strategic plans, company policies, and make decisions on the overall direction of the organization. In addition, top level managers play a significant role in the mobilization of outside resources. Senior managers are accountable to the shareholders, the general public, and public bodies that oversee corporations and similar organizations. Some members of the senior management may serve as the public face of the organization, and they may make speeches to introduce new strategies or appear in marketing. The board of directors is typically primarily composed of non executives who owe a fiduciary 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 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 contractors; for example, the board (through the audit committee) typically selects the auditor. Helpful skills of top management vary by the type of organization but typically include a broad understanding of competition, world economies, and politics. In addition, the CEO is responsible for implementing and determining (within the board's framework) the broad policies of the organization. Executive management accomplishes the day to day details, including instructions for 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.

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.

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 for minorities and women in the workplace, by offering increased flexibility in working hours, better retraining, and innovative (and usually industry specific) performance markers. Managers destined for the service sector are being trained to use unique measurement techniques, better worker support, and more charismatic leadership styles. Human resources finds itself increasingly working with management in a training capacity to help collect management data on the success (or failure) of management actions with employees. 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 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.

Some see management as a late modern (in the sense of late modernity) conceptualization. On those terms it cannot have a pre modern history – only harbingers (such as stewards). Others, however, detect management like thought among ancient 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 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 (5th to 15th centuries) and the codification of double entry book keeping (1494) provided 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 industrial revolutions in the 18th and 19th centuries, military theory and practice contributed approaches to managing the newly popular factories. Given the scale of most commercial operations and the lack of mechanized record keeping and recording before the Industrial Revolution, it made sense for most owners of enterprises in those times to carry out management functions by and for themselves. But with 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.

The field of management originated in ancient China, including possibly the first highly centralized bureaucratic state, and the earliest (by the second century BC) example of an administration based on merit through testing. Some theorists have cited 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. 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 (c. 1515). Smith described how changes in processes could boost productivity in the manufacture of pins. While individuals could produce 200 pins per day, Smith analyzed the steps involved in the manufacture and, with 10 specialists, enabled the production of 48,000 pins per day. 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.

Branches of management theory also exist relating to nonprofits and to government: such as public administration, 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 viewpoints, critical management studies, and anti corporate activism. As one consequence, workplace democracy (sometimes referred to as Workers' self management) has become both more common and more advocated, in some places distributing all management functions among workers, each of whom takes on a portion of the work. However, these models predate any current political issue and may occur more naturally than does a command hierarchy.

In profitable organizations, management's primary function is the satisfaction of a range of stakeholders. This typically involves making a profit (for the shareholders), creating valued products at a reasonable cost (for customers), and providing great employment opportunities for employees. In case of nonprofit management, one of the main functions is, keeping the faith of donors. In most models of management and governance, 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 is rare.

According to Fayol, management operates through five basic functions: planning, organizing, commanding, coordinating and controlling. Planning: Deciding what needs to happen in the future and generating 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.

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.

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.