Professionalization of management

The society of 1900s had few, small- sized institutions managed by the family heads. For fulfilling the needs of the society. Government was the only institution banked upon by the individuals. There were almost no or very few business institutions. Small workshop, small educational and health centers and professions war praised at the individual level.

With emergence of large scale business and non- business organizations during mid 1900s, our society became a society of institutions .became a pluralist society in the sense that people relied on a number of institutions for satisfying their varied needs, like economic goods, health care, social and security needs, education, research needs etc.

There was, thus the diversion of ownership from management. Managers were, therefore, appointed who helped this enterprise by:-

1. Increasing their productivity
2. Analyzing the impact of organizational activities on the social values, culture and beliefs.
3. Creating new business opportunities rather than optimizing the existing ones. This created manager entrepreneurs.
4. increasing the level of performance in the field of economic tasks, health vary education or protection to environment.
5. Producing economic and social development along with savings and capital investment.

The institutions of today must be managed effectively to remain competitive in the era of globalization. Management today is viewed as a –

1. Force to bring economic, organizational and social reform.
2. Work with its own tools, skills and techniques.
3. Discipline with and organized body of knowledge which can be applied in almost every situation and every organization- business or non-business.
4. Culture with a set of traditional values, co toms and beliefs. This helps in molding the cultural aspects of the society.
5. Practice where management is a discipline which is not just a codified set of knowledge. Management is something which is practiced, performed and is result-oriented.
6. Multi- institutional force, where the need for management is felt in all institutions, business as well as non-business. Management helps the institution perform the functions for which it exists.
7. Multinational discipline. The world today is a single market and management cannot be confined within the national boundaries of the country. Management is gradually becoming an institution of a global economy.

In light of the facts discussed above, where business and non- business houses moved from owner- management to professional- management the remarks made by peter F.Drucker are noteworthy:

“Management is independent of ownership, rank or power. It is an objective function and ought to be grounded in the responsibility for performance. Professional- management ice function, a discipline , a task to be done and managers are the professionals who practice this function, a discipline, a task to be dine out the function  discharge thawed tasks.

1. As business firms grew in size; it became difficult to manage then in the traditional way. The management policies were re- examined and sophisticated management techniques were applied which required  professionalisation of management.

2. Initially the public sector was managed by non- professional managers. With increase in their complexity and growing internationalization, the marked did not remain protective and free from competition. Ownership and management got separated and professionally qualified managers were appointed to run these enterprise.
 
3. Availability of trained, skilled and educated managers has also led to professionalisation of management. Management education is imparted on full- time and Prut-time short-term management development courses ate also offered by many institutes many business organization in the private and public sect have management development ventures to train their mangers.

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