NATURE AND SIGNIFICANCE OF MANAGEMENT

Management is an art of getting things done with and through

others. Management can be defined as, the process of getting
things done with the aim of achieving organizational goals
effectively and efficiently.

Efficiency and Effectiveness

Efficiency (completing the work at low cost) means doing the

task correctly at minimum cost through optimum utilization of
resources while effectiveness (Completing the work on time) is
concerned with end result means completing the task correctly
within stipulated time. Although efficiency and effectiveness are
different yet they are inter related. It is important for
management to maintain a balance between the two.

1.Rohini prepared a well-documented and factual report on

Co’s performance but she could not present it in Board
meeting as she could not complete it on time.

[Hint: Efficient but not effective]

2.Best roadways promised to deliver goods in time and

charged extra money from Mr. Singh. But the goods were
not delivered on time.

[Hint: Efficient but not effective]

Characteristics of Management

1. Goal oriented Process It is a goal oriented process, which is

to achieve already specified and desired objectives by proper
utilization of available resources.

2. Pervasive: Management is universal in nature. It is used in all

types of organizations whether economic, social or political
irrespective of its size, nature and location and at each and every
level.

3. Multidimensional:It is multidimensional as it involves

management of work, people and operations.

4. Continuous: It consists of a series of function and its

functions are being performed by all managers simultaneously.
The process of management continues till an organization exists
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 of the organization.

5. Dynamic function : It is a dynamic function since it has to

adapt according to need, time and situation of the changing
business environment. For example, McDonalds made major
changes in its ‘Menu’ to survive in the Indian market.
6. Intangible Force: It is intangible force as it can’t be seen but
its effects can be felt in the form of results like whether the
objectives are met and whether people are motivated or not and
there is orderliness and coordination in the work environment.

Objectives of Management

(1) Organizational objectives:

Organizational Objectives can be divided

into Survival (Earning enough revenues to cover
cost); Profit (To cover cost and risk); and Growth (To improve
its future prospects).

(A)Survival – Management by taking positive decisions with

regard to different business activities ensures survival of
business for long term.
(B) Profit – It plays an important role in facing business risks
and successful running of business activities.
(C) Growth – Management must ensure growth which can be
measured by increase in sales, number of employees, number of
products, additional investment, etc.
(2) Social Objectives:

Social objectives is to provide some benefits to society like

applying environmental friendly practices in the production
process and giving employment to disadvantaged sections of
society, etc. Example: TISCO, ITC, and Asian Paints.

(3) Personal Objectives:

(4)

Personal Objectives is to focus on diverse personal objectives of

people working in the organization which need to be reconciled
with organizational objectives.

Importance of Management

(1) Achieving Group Goals: Management creates team work

and coordination in the group. Managers give common direction
to individual efforts in achieving the overall goals of the
organization.
(2) Increases Efficiency: Management increases efficiency by
using resources in the best possible manner to reduce cost and
increase productivity.

(3)Creates Dynamic organization: Management helps the

employees overcome their resistance to change and adapt as per
changing situation to ensure its survival and growth.

(4)Achieving personal objectives: Management helps the

individuals achieve their personal goals while working towards
organizational objectives.

(5)Development of Society: Management helps in the

development of society by producing good quality products,
creating employment opportunities and adopting new
technologies.

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 as
follows:
(1)Existence of theoretical knowledge: In every art,
Systematic and organized study material should be available
compulsorily to acquire theoretical knowledge.
(2) Personalized application: The use of basic knowledge
differs from person to person and thus, art is a very personalized
concept.

(3)Based on practice and creativity: Art involves in consistent

and creative practice of existing theoretical knowledge.

In management also a huge volume of literature and books are

available on different aspects of management. Every manager
has his own unique style of managing things and people. He
uses his creativity in applying management techniques and his
skills improve with regular application. Since all the features of
art are present in management. so it can called an art.

Management as a Science

Science is a systematized 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
systematized body of knowledge based on principles and
experiments.
(2)Principles based on experiments and
observation: Scientific principles are developed through
experiments and observation.

(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 & observations which are universally applicable
but they have to be modified according to given situation.

As the principles of management are not as exact as the

principles of pure science, so it may be called-an inexact
science. The prominence of human factor in the management
makes it a Social Science.

Management as Profession
Profession means an occupation for which specialized
knowledge and skills are required and entry is restricted. 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 frames code
of conduct relating to the profession.

(4)Ethical Code of Conduct: All professions are bound by a

code of conduct which guides the behavior 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-fledged profession like doctor, lawyer, etc.,
but very soon it will be recognized as full-fledged profession.

Levels of Management: Top, Middle and Operational Levels

“Levels of management” means different categories of

managers, the lowest to the highest on the basis of their relative
responsibilities, authority and status.

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 organizational
goals & strategies.

Middle Level

Consists of Divisional or Departmental heads, Plant

Superintendents and Operation Managers 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 and responsibilities to them.

Lower Level/Supervisory Level

Consists of Foremen and supervisor etc. Main task is to 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:
Thinking in advance what to do, when to do, and
who is going to do it. It bridges the gap between where we are
and where we want to reach.

2. Organising: organization means deciding the framework of

working how many units and sub-units are needed,how many
posts are needed, how to distribute the authority and
responsibilities.

3. Staffing:It refers to recruitment, selection, training,

development and appointment of the employees. 4.Directing: It
refers to guiding, instructing, inspiring and motivating the
employees.

4. Controllingare the main functions of management.Controlling

is monitoring the organizational performance towards the
attainment of the organizational goals.

Coordination (The Essence of Management):

Coordination is the force which synchronizes all the functions of
management and activities of different departments. Lack of
coordination results in overlapping, duplication, delays and
chaos. It is concerned with all the three levels of management as
if all the levels of management are looked at together, they
become a group and as in the case of every group, they also
require coordination among themselves. So, it is not a separate
function of management, rather it is the essence of management.

l. Coordination integrates group efforts: It integrates diverse

business activities into purposeful group activity ensuring that
all people work in one direction to achieve organizational goals.

2. Coordination ensures unity of action: It directs the

activities of different departments and employees towards
achievement of common goals and brings unity in individual
efforts.

3. Coordination is a continuous process: It is not a specific

activity matter it is required at all levels, in all departments till
the organization continues its operations.

4.Coordination is all pervasive function: It is universal in

nature. It synchronizes the activities of all levels and
departments as they are interdependent to maintain
organizational balance.

5. Coordination is the responsibility of all managers: It is

equally important at all the three-top, middle and lower levels of
management. Thus it is the responsibility of all managers that
they make efforts to establish coordination.
6. Coordination is a deliberate function: Coordination is
never established by itself rather it is a conscious effort on the
part of every manager. Cooperation is voluntary effort of
employees to help one another. Effective coordination cannot be
achieved without cooperation of group members.