Nature of Management and its Process

We are all involved in management i.e., of our own self, social and economic activities, and of society at large. To understand this concept better, lets take a simple example. Suppose you have to appear for CS examination in a few months. You have all of four papers to clear. The objective is very clear that you have to pass the examination, but a good time plan and its proper implementation is what is required. Your success will depend on a lot of things like the study plan, the books to be referred and also the discipline in adhering to the time plan. All through this exercise, managing of affairs (time plan, books to be referred and discipline) is the most important. Now this is what is called as managing and all that is to be done in the process of managing is called management. However in business world, management is defined as art of getting things done from others. In todays business environment, the professional manager is responsible for the activities carried out by the organization. Thus, the objectives of this chapter is to enable the students to understand that management is the specific organ of the modern institution on which the performance and survival of the institution depends. It is the function of management to use all resources, available to an organization for the realization of its results so as to enable the firm to earn surplus funds to meet the growth and expansion needs. CONCEPT OF MANAGEMENT
The word management derives its origin from a Greek word nomos which means management. It is concerned with human beings whose behaviour is highly unpredictable. Ever since people began forming groups to achieve individual goals, management has been the essence coordinating the individual efforts. It denotes not only a function but also the people who discharge it. A group of people, who accept the responsibility to run an organization and direct its activities, form the management of the organization. It denotes not only a special position and rank but also a discipline and field of study. It is the management that provides planning, organization and direction which are necessary for business operations. In a more important sense, management is a vital function concerned with all aspects of the working of an enterprise. Management, in this sense, may be defined as the art of getting things done.

Definitions of Management by various economists: Hick defines management as the process of getting things done by the people and through the people. Koontz and ODonnell state that management means, Getting things done through and with people. Henry Fayol, to manage is to forecast, and to plan, to organize to command, to coordinate and to command Haimann observes that, management is the function of getting things done through people and directing the efforts of individuals towards a common objective.

OBJECTIVES OF MANAGEMENT
Every human being has the potential to do remarkable things. To enable every person to understand, develop and utilize his/her potential, management should provide an environment where in the maximum results can be extracted from an individual.

The following are the objectives of management: (i) Achieving Maximum Output with Minimum Efforts
(ii) Optimum Use of Resources

(iii) Maximum Prosperity (iv) Human Betterment & Social Justice IMPORTANCE OF MANAGEMENT To a very large extent the success of an organization is dependent on its management. Therefore the importance of management will help us in understanding its wide scope and also as to how it helps in the success of the organization in the long run. Importance of management is given hereunder:

Achieving Group Goals Optimum Utilization of Resources

Prosperity of Society

Establishes Equilibrium

Reduces Costs

Establishes Sound Organization

MANAGEMENT SCIENCE OR ART

Science may be defined as a body of knowledge systematized through application of scientific method in any department of enquiry. Science is systematic in the sense that certain relationships, principles and their limitations

have been discovered, tested and established into theories, laws and principles.

Features of Management as a Science

The following features of management as a science are required to be properly understood:

(a) Management is an inexact science because it deals with complex human phenomena about which knowledge is still limited; (b) Management is still a developing science; and (c) Management is an inter-disciplinary science-it draws freely from other disciplines such as economics, sociology and psychology. There should also be not much of dispute over describing management as an art. The function of art is to effect change or accomplish goals by deliberate efforts. Practical application of theoretical knowledge is reflected in art. In this sense, management is an art as well. Management principles have been evolved not for the sake of knowledge alone but for their application in concrete situations. In fact, skill in the application of principles to work situations is so important to the job of an executive that some authorities regard management to be essentially an art. The practicing manager can be compared to a carpenter who has to cut, refashion, and combine the wood to execute the order.

Features of Management as an Art

Management is an art because of the following attributes: 1. The process of management involves the use of knowhow and skills; 2. The process of management is directed towards the accomplishment of concrete results; 3. It is creative in the sense that it is the function of creating productive situations needed for further improvements; 4. Management is personalized in the sense that every manager has his own approach to problems. But it does not mean that science and art are mutually exclusive. The fact is that science is a body of knowledge while art denotes the mode of practical application of knowledge. Evidently both are complementary to each other. Thus, theory and practice of management are mutually helpful, go side by side for the efficient functioning of any organization. MANAGEMENT AS PROFESSION Growing administrative complexities, emergence of the corporate form of organization with separation of ownership from management and development of an organized body of systematic knowledge of management are factors of great importance responsible for raising management to the status of a distinct profession. But there are people who still do not agree to management being a profession. To comment on this issue, therefore, one has to be conversant with important features of a profession.

Features of Management as Profession

A field is normally characterized as profession when the following special features are present in it: (i) Systematic body of knowledge; (ii) Need for learning and proper organization; (iii) Entry restricted on the basis of examination or education; and (iv) Dominance of service motive.
Except for restricted entry, management qualifies all other tests of a profession. It is now backed by a systematic body of knowledge. A number of management principles have been developed which need proper learning and education. Besides, in a number of countries management institutes, associations and universities are now imparting knowledge relating to management. Moreover, social and moral climate have thrown new challenges to the management. Management of today must be creative rather than adaptive and be conscious of its ethical and

social responsibilities to the society. Another important development in the field of management has been that the professional management consultants are growing both in number and quality.

SCHOOLS OF MANAGEMENT
Many management scholars and practitioners believe that the theories on management are aimed at establishing the best way of doing things. But it is to be appreciated that management theory and science do not advocate the best way to do things in the light of every situation. In fact, they are meant as a search for fundamental relationships for basic techniques and for organization of available knowledge based on understanding of the concept. And undeniably the situational need determines their mode of application. Clearly therefore, effective management is always situational management - the application of knowledge to realities with a view to attaining desired results.
However, after World War II, the literature on management has grown at an unprecedented rate. This, in turn, has greatly helped in improving research, teaching and practice.

Empirical Approach

Interpersonal Behaviour Approach

Group Behaviour Approach

Decision Theory Approach

Mathematical Approach

Operational Approach

MANAGEMENT FUNCTIONS

Henry Fayol , the French industrialist and popularly known as the founder of modern management theory, divided all activities of industrial undertakings into six groups: Technical Financial Accounting Commercial Security

Managerial

Fayol distinguished between principles and elements of management, using the former for rules and guides, and the elements of management for its functions. He grouped these elements into five managerial functions as:

Planning Commanding

Organising Coordinating

 Controlling Fayols classification of managerial functions is widely acknowledged and acclaimed, though other classifications also exist. For example, Luther Gulick coined the word POSDCORB using the initial letters of management functions: planning (P), organising (O), staffing (S), directing (D), coordinating (CO), reporting (R), and budgeting (B). Reporting is a part of control function, while budgeting represents both planning and controlling. Similarly, Newmann and Summer classified managing process as the functions of (i) organising, (ii) planning, (iii) leading, and (iv) controlling.
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Still another useful method of classifying managerial functions is to group them around the components of planning, organising, staffing, directing/leading and controlling. Circular flow of these functions may be presented as follows:

The above functions of management are common to all business enterprises and organizations in other fields but the manner in which these are carried out will not be the same in different organizations. Similarly, though all these functions constitute the job of a manager, relative importance of each of them will vary from time to time as well as across the hierarchical levels.