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Concepts of management development

May 10, 2004

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Historically, changes are taking place in the socio-economic conditions of the families. Although most nations are influenced by the agriculture, but there are some influenced more by the industrial development and have developed new aspects in the management.

The management, in a broader perspective, is conceived as designing plans and acquiring expertise in planning on the basis of the given objective. Management development is an action-oriented process for increasing and improving the efficiency of a person, as well as of the organization through planning, organizing, staffing, directing and controlling.

The national growth, measured through the GNP, requires social development by providing better and higher education to its population. The educational improvement goes together with the better facilities for maintaining good health which requires hospitals.

In the case of educational and health institutions various aspects and theories of the management are involved as in any other economic/business organizations.

For national development, the government at federal, provincial and local levels must try to increase the efficiency and effectiveness of educational and health institutions.

Role of the government in the form of public administration requires clear identification and objectives of establishing educational institutions and health organizations. Unless the bureaucracy acquires expertize i.e., good management knowledge through contribution, the national development will remain slow.

The importance of management development in improving the efficiency of educational and health institutions has been pointed out. Now the concentration would on business development which provides the products required by educational and health institutions, as well as services for family consumption and to individuals who may be professionals, vocationists or entrepreneurs - big or small.

The development of new concepts and theories in management and their proper application is essential for developing various kinds of socio-economic institutions including the business organizations.

While defining the 'management', Prof. Dalton E. McFarland states that the management is a fundamental, integrating process designed to achieve, organize, purposeful results.

The management, therefore, is defined as the process by which managers create, direct, maintain and operate purposive organizations through coordinated and cooperative human efforts.

This definition implies four ideas: First, the management is dynamic and does not consist of formulas or fixed patterns. Second, its activities are continuous. Third, the change is a way of life in organizations; the process is ongoing and unceasing, and finally the managerial action directs and controls the nature, extent, and the pace of activities in an organization.

Furthermore, the management as a process is reflected in the manager's responsibility to guide, direct, influences, and control the actions of others in working toward objectives. The goal-directed managerial behaviour initiates and monitors a myriad of activities. The management is a name for the process of ongoing decisions and activities by which an organization's work proceeds.

Prof. Heinzich and Prof. Harold Koontz state: "The management is a process designing and maintaining an environment in which individuals, working together in groups, effectively accomplish selected aims. This basic definition needs to be expanded:

1. As managers, the people carry out managerial functions of planning, organizing, staffing, leading and controlling.

2. Management applies to any kind of organization.

3. It applies to managers at all organizational levels.

4. Aim of all the managers is the same; to create a surplus.

5. Managing is concerned with the productivity, this implies effectiveness and efficiency."

Below are reproduced two definitions on the "management" retrieved from the Web:

"Effective utilization and coordination of resources such as capital, plant, materials, and labour to achieve define objectives with maximum efficiency." The process of planning, organizing, executing, coordinating, monitoring, forecasting and exercising control."

For developing countries such as Pakistan, the management has been properly described by the role which managers play in "effective utilization and coordination of resources such as the capital, plant, materials, and the labour to achieve define objectives with maximum efficiency".

In Pakistan we badly need improvements in industrial organizations as well as in farming industry to increase the productivity of not only individuals but of the organization, as a whole.

At present the productivity of factory workers and farmers in Pakistan is among the lowest in the world. For increasing the overall productivity it will be essential to provide satisfactory training programmes for all kinds of individuals who work in factories, farms, commercial organizations - wholesalers, retailers.

So far, in Pakistan training has not been quite effective to increase the efficiency of business managers. As a result of that the productivity of organizations is also much lower in Pakistan. So far a small number of industrial organizations have applied for the ISO.

An interesting question emerges in the mind of an average Pakistani is why the GNP of Pakistan is not high which can be easily increased from 5 to 10 per cent with the greater use of management theories.

Effective utilization of such resources like the capital has not been properly made. For example investment of capital in retailing and wholesaling is much higher than in the industrial units including small and cottage industries. In the area of services, Pakistani banks have not be able to attract quite a large number of men and women to open their account.

The saving rate is also one of the lowest in Pakistan. Here can be several reasons for low income on the one hand and extravagance in social functions on the other. Industrial estates in Pakistan are properly organized and their number is limited, including the small manufacturing units, the cottage industries.

Proper attention has not been given to these by the chambers and the government to enable these to manage their small organizations with greater efficiency. Even medium-sized industrial organizations have quite a large number of sick industries.

These limitations exist mainly because of the bureaucratic management. The Pakistani managers have not received good education to improve the productivity of the nation at any level.

The management development, therefore, is essential for increasing the efficiency of individuals and organizations. Several definitions point out the role of managers in marketing, financing, and human development.

One of the reasons of the present situation is the lack of good business institutions. In several countries university professors have developed a number of theories not only in management areas but in sociology, psychology, anthropology, too. University professors have contributed a lot in the development of the management sciences.