Ch.1 NATURE AND SIGNIFICANCE OF MANAGEMENT [BSt-XII]

CHAPTER 1
NATURE AND SIGNIFICANCE  OF MANAGEMENT

CONCEPT OF MANAGEMENT

Management is defined as a process of getting things done with the aim of achieving goals effectively and efficiently. 

Q. What do you mean by Effectiveness?

Ans. Effectiveness is said when manager completes the task in time but without considering cost.

Q. What do you mean by Efficiency?

Ans. Efficiency is said manager completes the task in time considering the cost.

CHARACTERISTICS/FEATURES OF MANAGEMENT

 (i) Management is a goal-oriented process:

 Every organisation has a  set of basic goals to be achieved.

For example:-  to increase sales, to increase profit %.

 (ii) Management is all pervasive/Management is a Universal process:

Management is applicable every where i.e., in all institution (social, religious, hospitals, schools, etc) and at every level.

 (iii) Management is multidimensional: 

It has three main dimensions:-

(a) Management of work: 

All organisations exist for the performance of some work.

For example:  In a factory, a product is manufactured.

(b) Management of people: 

It includes dealing with employees at individuals and as a group of people.

(c) Management of operations: 

It is interlinked with both the management of work and the management of people.

 (iv) Management is a continuous process: 

 The process of management is a series of continuous, composite, but separate functions (i.e., planning, organising, directing, staffing and controlling). 

 (v) Management is a group activity:  

To attain organisational goal team work and coordination is required among individual.

 (vi) Management is a dynamic function: 

Management has to adapt itself to the changing environment.

For example: KFC has introduced many vegetable burger/pizza items in their menu in Indian Market.

 (vii) Management is an intangible force: 

Management cannot be seen cannot be touched it can be felt only.

OBJECTIVES OF MANAGEMENT

(i) Organisational Objectives: 

Management is responsible for setting and achieving objectives for the organisation.

The main objective of any organisation should be to utilise human and material resources to the maximum possible advantage, i.e., to fulfill the economic objectives of a business.

Survival:  In order to survive, an organisation must earn enough revenues to cover costs. 

Profit:  Profit is essential for covering costs and risks of the business.

Growth: Growth help business to operate in a long run.

 (ii) Social objectives: 

1) Provided Employment Opportunities.

2) Care towards society/communities.

3) To care for needy and poor section of people. (orphanage, old age people, etc)

4) Using eco-friendly technique.

5) Reducing pollution.

 (iii) Personal objectives: 

1) Give a safe working condition to the employees or worker.

2) Should provide salaries and wages in time.

IMPORTANCE OF MANAGEMENT

 (i) Management helps in achieving group goals: 

 Management help in giving direction to the individual effort in achieving the overall goal of the organisation. 

 (ii) Management increases efficiency: 

Management help in completing the task in time without wastage of resources.

 (iii) Management creates a dynamic organisation: 

All organisations have to function in an environment which is constantly changing. Management helps people adapt to these changes.

 (iv) Management helps in achieving personal objectives: 

 Through motivation and leadership the management helps individuals to develop team spirit and cooperation.

 (v) Management helps in the development of society: 

Management helps in the development of society through its social objectives.

NATURE OF MANAGEMENT

[a] MANAGEMENT AS AN ART :

 (i) Existence of theoretical knowledge: 

A manager must have both practical and theoretical knowledge to carry day to day activities.

 (ii) Personalised application: 

A manager applies this acquired knowledge in a personalised and skillful manner.

 (iii) Based on practice and creativity: 

'Practice make a man perfect', this also applies in management. Also a manager must have creativity in taking decision.

[b] MANAGEMENT AS A SCIENCE :

Management has some features of science are as follows: 

 (i) Systematised body of knowledge: 

Like Science/management is also a systematic body  of knowledge. 

example: Law of Gravity.

 (ii) Principles based on experimentation: 

Like scientific principles management are through repeated experimentation .

 (iii) Universal validity: 

Principles of management are applicable everywhere.

 (iv) Cause and effect relationship:

Management principle shows cause and effect relationship.

ex: Motivation lead to efficiency.

NOTE: Management is inexact science. they can be modified according to the given situation.

[c] MANAGEMENT AS A PROFESSION :

"Management is considered as full-fledged profession" do you agree. Support your answer.

No, management as not full-fledged.

(i) Well-defined body of knowledge: 

There are large no. of book available on management studies also management is taught in institution and university, therefore management is profession.

(ii) Restricted entry: 

To become a professional specially training and practice is required where as there is no legal on appointment of manager therefore this feature of professor is not present in management.

(iii) Professional association: 

For all profession, every professional has to get him self registered with that association but it is not compulsory for manager therefore this feature is not present in management.

(iv) Ethical code of conduct: 

All professional have to follow a set of codes of conducts but it is not compulsory for all the manager to follow ethical codes. Therefore this features is not present in management.

(v) Service motive: 

Basis motive of every profession is to provide service, where as basic purpose of management can be profit maximization therefore this features is not present in management.

LEVELS OF MANAGEMENT 

(i) Top Management: 

Chairman, the chief executive officer, chief operating officer, president and vice-president are comes under top management Managing Director (MD), chief finance officer (CFO).

Function:

i) It determined the objectives of the organisation long as well as short and take decision.

ii) It also frames plan and policies to achieve the set objective.

iii) It is responsible for welfare and survival of the organisation.

iv) Top level instructs the  middle level.

(ii) Middle Management:

Production manager, Finance manager, Factory supervisor.

Function:

i) It is the link between top and lower management.

ii) Its manager instructs and keep a watch on lower level.

iii) It implement and control plans and policies framed by top level management.

iv) It organizes all the resources and activities of their department.

v) Co-operate with other department for smooth functioning.

vi) Motivate the lower level to perform to their best ability.

(iii) Supervisory or Operational Management:
Former, Supervisors, Superintendent.

Function:
i) It represents the problems or grievance of workers before the middle level management.

ii) It provide safe & secure work environment for worker.

iii) It communicates with  the workers and welcome their suggestion.

iv) It help the middle level management is selecting, recruiting and appointing the employees.

FUNCTIONS OF MANAGEMENT

COORDINATION — THE ESSENCE OF MANAGEMENT

NATURE/CHARACTERISTICS OF COORDINATION 

(i) Coordination integrates group efforts: 
Coordination unifies unrelated or diverse interests into purposeful work activity. 

(ii) Coordination ensures unity of action: 
It acts as the binding force between departments and ensures that all action is aimed at achieving the goals of the organisation. 

(iii) Coordination is a continuous process:
Coordination is not a one-time function but a continuous process from planning to controlling.

(iv) Coordination is an all pervasive function: 
 Coordination is required at all levels of management.

(v) Coordination is the responsibility  of  all managers:  
 Top level managers need to coordinate with both top level and bottom level of management.

(vi) Coordination is a deliberate function: 
 Absence of coordination may lead to wasted effort.


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