NATURE AND SIGNIFICANTS OF MANAGEMENT

Concept: Management is the process of planning, organising, staffing, directing and controlling the resources efficiently and effectively for achieving the organisational goals.

Characteristics: (a) goal oriented process, (b) pervasive, (c) multidimensional (d)

group activity, (e) continuous process, (vi) dynamic function, (vii) intangible force

Objectives : (a) organisational (b) social, and (c) personal objectives

Importance: (a) achieves group goals (b) increases efficiency (c) creates dynamic

organization (d) helps achieve personal goals (e) development of society

Management as Art: Theoretical knowledge, personal application, based on practice,

creativity

Management as a Science : (a) Systematic body of knowledge (b) principles

based on application, (c) universal validity

Management as a Profession: (a) well defined body of knowledge (b).restricted entry (c) professional association (d) ethical code of conduct Management fulfills some but not all of these requirements

Levels of management: (a) Top Level management (b) Middle Level management

(c) Supervisory or operational or lower level management

Functions of Management: Planning, organising, staffing, directing and controlling

Coordination : The process of achieving unity of action among interdependent activities and departments of an organisation. It is the essence of management as it is required in all managerial functions.

1. MEANING/CONCEPT OF MANAGEMENT:

Management is the process of getting things done with the aim of achieving goals

effectively and efficiently.

• Process: refers to the primary function like planning, organising, staffing,directing and controlling performed by the management to get things done.

• Effectiveness: means completing the right task to achieve the deputed goal within the time frame.

• Efficiency: means completion of task using minimum resources

DEFINITION OF MANAGEMENT:

“Management is the process of working with and through others to effectively achieve the organisational objectives by efficiently using limited resources in the changing environment.”

 

MANAGEMENT OBJECTIVES-

 Organisational Objectives:

Survival:- Ensure that the organisation survives and exists in the future.

Profitability:-Earning adequate profit in order to survive and grow

 Growth:- Growth indicates how well it exploits the potential opportunities.

Social Objectives:

• Producing quality products at reasonable rates,

• generating employment opportunities,

• Community progress and development by providing schools and crèches to employees In fact most of the firms have taken upon themselves the concept of social responsibility as one of the basic element of business objectives .

• Environmental friendly method of production.

Personal Objectives:

• Meeting the Financial needs like competitive salaries and perks

• Social and safety needs of the employee like peer recognition, self respect and respect for colleagues

• Higher level needs like implementation and monitoring of policies for personal growth

and survival

• Reconcile personal goals with organisational objectives for harmony in the organisation.

Characteristics of Management

1. Goal oriented Process : It is a goal oriented process, which is undertaken to achieve already specified and desired objectives.

2. Pervasive : Management is pervasive in nature. It is used in all types of organizations whether economic, social or political and at every level.

3. Multidimensional : It is multidimensional as it involves management of Work, People and operations.

4. Continuous : It is a continuous process i.e. its functions are being performed by all managers  simultaneously. The process of management continue till an organisation exist for attaining its objectives.

5. Group Activity : It is a group activity since it involves managing and coordinating activities of different people as a team to attain the desired objectives.

6. Dynamic function : it is a dynamic function since it has to adapt to the changing environment.

7. Intangible Force : It is an intagible force as it cannot be seen but its effect

are felt in the form of results like whether the objectives are met and

whether people are motivated or not.

Objectives of management

(A) Organizational objectives of Survival (Earning enough revenues to cover cost); Profit (To Cover cost and risk); & Growth (To improve its future Prospects).

(B) Social Objectives of giving benefits to society like using environmental friendly practices and giving employment to disadvantaged sections of society etc.

(C) Personal Objectives because diverse personal objectives of people working in the organization have to be reconciled with organizational objectives.

Importance of management

(1) Achieving Group Goals : Management helps in achieving group goals. Manager give common direction to the individual effort in achieving the overall goal of the organisation.

(2) Increases Efficiency : Management increases efficiency by using resources in the best possible manner to reduce cost and increase productivity.

(3) Creates Dynamic Organisation : Management helps in creating Dynamic organisation which could adopt changing situations easily.

(4) Achieving Personal Objectives : Management helps in achieving objectives of individuals working in the organisation.

(5) Development of Society : Management helps in the development of society by producing good quality products, creating employment opportunities and adopting new technology.

Management as an Art

Art refers to skillful and personal application of existing knowledge to achieve desired results. It can be acquired through study, observation and experience. The features of art are as follows.

(1) Existence of theoretical knowledge : In every art systematic & organised study material should be available compulsorily to acquire theoretical knowledge.

(2) Personalised application : The use of basic knowledge differ from person to person and thus, art is a very personalised concept.

(3) Based on practice and creativity : Art involves the creative practice of existing theoretical knowledge.

All the features of art are present in management so it can be called an art.

Management as a science

Science is a systematised body of knowledge that is based on general truths which can be tested anywhere, anytime. The features of science are as follows

(1) Systematized body of knowledge : Science has a systematised body of knowledge based on principles and experiments.

(2) Principles based on experiments & observation : Scientific principles are developed through experiments and observations.

(3) Universal Validity : Scientific principles have universal validity and application. Management has systematic body of knowledge and its principles are developed over a period of time based on repeated

experiments & observation, which are universally applicable.As the principles of management are not as exact as the principles of pure science, so it may be called inexact science.

Management as a profession :

Profession means an occupation for which specialised knowledge and skills are required. The main features of profession are as follows.

(1) Well defined body of knowledge : All the professions are based on well defined body of knowledge.

(2) Restricted entry : The entry in every profession is restricted through examination or through some minimum educational qualification.

(3) Professional Associations : All professions are affiliated to a professional association which regulates entry and frame code of conduct relating to the profession.

(4) Ethical code of conduct : All professions are bound by a code of conduct which guides the behaviour of its members

(5) Service Motive : The main aim of a profession is to serve its clients. Management does not fulfill all the features of a profession and thus it is not a full pledged profession.

Levels of Management : Top, Middle and operational levels.

Top Level

Consists of Chairperson, Chief Executive Officer, Chief Operating Officer or equivalent and their team.

Chief task is to integrate and to coordinate the various activities of the business, framing policies, formulating organisational goals & strategies.

Middle Level

Consists of divisional heads, Plant Superintendent and Operations Manager etc. Main tasks are to interpret the policies of the top management, to ensure the availability of resources to implement Policies & to coordinate all activities, ensure availability of necessary personnel & assign duties & responsibilties to them.

Lower Level / Supervisory Level

Consists of Foremen and supervisors etc.Main task is ensure actual implementation of the policies as per directions,bring workers grievances before the management & maintain discipline among the workers.

 Functions of management:

1. Planning - Setting objectives and targets and formulating an action plan of what is to

be done, how to be done and when to do it

2. Organising - Assignment of duties, task, establishment of authority and

responsibility relationships, allocating the resources required to perform the planned

task.

3. Staffing - Finding and placing the right person at the right job at the right time.

4. Directing - Leading, influencing, motivating the staff chosen to perform the assigned

task efficiently and effectively.

5. Controlling - Ensuring/Monitoring the activities in an organisation are performed

as per the plan.

COORDINATION Meaning.

It is the synchronisation of various activities and efforts in an organisation providing the required amount of quality, timing and sequence; thus nsuring the achievement of the planned goal with minimum content.

FEATURES OF COORDINATION:

• Integrates Group Effort: It is an orderly arrangement of group effort and not individual effort

• Ensures unity of action: It is a binding force between departments and ensures that all efforts are focussed towards achieving the organisational goal

• It is a Continuous Process never ending process as its needs are felt at all levels and steps in the organisations. It begins at the planning stage and continues till controlling

• It remains the function and responsibility of every manager: the top level coordinates the overall plan, middle level coordinates the efforts of the different sections and subsections and lower level management coordinates the activities of the workers

• A Deliberate function: It does not occur spontaneously nor is it achieved by force it is a deliberate action taken.

• All pervasive function it is needed in all departments and at all levels. Lack of coordination can lead to overlapping of activities.