Chapter1: Nature of Management

Management defined

There are many definitions of management but most perceptive managers are convinced that
it is an organized effort of people whose purpose is to achieve the objectives and goals of an
organization. Of course, it is not that simple. To gain a better understanding of management,
let’s review the ideas and views expressed by academicians and practitioners.

Management as a Process

McFarland defines management as “A process by which managers create, direct, maintain

and operate purposive organization through systematic, coordinated, cooperative human
efforts”. An important tern in this definition is “Process”. This term emphasis the dynamic or
ongoing nature of management, an activity over varying span of time. The dynamic nature
implies that change is reality of organizational life. In managing organizations, managers
create changes adopt organizations to changes and implement changes successfully in their
organizations. Businesses fail and become bankrupt because managers fail in their attempt to
cope with the change.

Management as coordination

Donally, Gibson and Ivancevich also support the view of management as a process but their
stress in more on co-ordination. According to them, “Management is a process by which
individual and group effort is coordinated towards group goals”. In order to achieve goals,
coordination is essential and management involves securing and maintaining this
coordination. This coordination effort is also stressed in the definition of Koontz and
O’Donnell. According to them, “Management is a process of designing and maintaining an
environment in which, individuals, working together in groups efficiently and effectively
accomplish group goals”.

Management as a Function

There are those who view management as a function rather than a process. Dunn, Stephens
and Kelly contend that “Management is a role which includes a set of duties, responsibilities,
and relationships-involved in work organizations”. These duties and responsibilities constitute
the function a manager performs. The duties and responsibilities a manager performs are quite
different from those performed by managerial employees.

Management is getting things done through other people

A simple definition of management that is often quoted and it sounds very simple. According
to this definition, managers do not do things they get other people to do things. If managing is
an individual ability to get things done, then it is not a problem. We can plan and perform

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things according to our own convince and interests. When somebody else is involved and
wants to get things done through them, there is a difficulty. All sorts of problems arise,
personalities come into contact and conflict.

Interpersonal problems crop up. We have to understand the behavior of other people and must
have knowledge as to how to motivate them in order to get things done through them. We
have to consider the conveniences and interest of others also in planning and implementing
things.

In getting things done through others, people have to be coaxed, they have to be shown, they
have to inspired, they have to be motivated and this is what management means. These
activities are performed not only by the people at the top but from the chairman of the board
to the front line supervisors and foremen. They use the above mentioned methods to get
things done through other people.

A comprehensive definition of Management

In mid 1940s, academic people from various business schools in the United States gathered
together with the sole purpose of deciding whether a definition of management could be
written that businessmen would accept and practice and academicians would teach.
Ultimately they came up with the fallowing definition. No individual is identified with this
definition. The definition reads;

“Management is guiding human and physical resources into a dynamic organization units that
attain their objectives to the satisfaction of those served and with the high degree of moral and
sense of attainment on the part of those rendering the services”.

What is Management?

Introduction

Management is a vital aspect of the economic life of man, which is an organized group
activity. A central directing and controlling agency is indispensable for a business concern.
The productive resources – material, labor, capital etc. are entrusted to the organizing skill,
administrative ability and enterprising initiative of the management. Thus, management
provides leadership to a business enterprise. Without able managers and effective managerial
leadership the resources of production remain merely resources and never become production.
Under competitive economy and ever-changing environment the quality and performance of
managers determine both the survival as well as success of any business enterprise.
Management occupies such an important place in the modern world that the welfare of the
people and the destiny of the country are very much influenced by it.

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Definition

“Management is the process of getting things done through the efforts of other people in
order to achieve the predetermined objectives of organization”.

Management may also be defined as: “The process by which execution of given purpose put
into operation and supervise”. A concise statement: “The function of executive leadership
anywhere”.

Another statement: Management may be defined as “A technique by which the purpose and
objectives of particular human group are determined, defined, clarified and completed”

From business Point of view

“Management is the art of securing maximum results with the minimum of efforts so as to get
maximum prosperity and happiness for both employer and employee and give public the best
possible service”. Complete definition of management: “Management is a distinct process
consisting of planning, organizing, staffing, leading and controlling utilizing both in each
science and art and followed in order to accomplish predetermined objectives of the
organization”.

Necessity of Management

1. Management is an essential activity of all organizational level (Low, middle, and upper
level)

2. Management applies to:

 Small and large Organizations.

 Profit and nonprofit Organization.

 Manufacturing Organization.

 Service rendering Organization.

Manager

Manager is also known as leader and administrative, Manager is a person who under take the
tasks and function of managing at any level, in any kind of enterprise.

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Managerial Skills

There are four skills of managers are expected to have ability of:

1. Technical skills

Technical skills that reflect both an understanding and a proficiency in a specialized field. For
example, a manager may have technical skills in accounting, finance, engineering,
manufacturing, or computer science.

Human Skills

Human skills are skills associated with manager’s ability to work well with others, both as a
member of a group and as a leader who gets things done through other.

Concept Skills

Conceptual skills related to the ability to visualize the organization as a whole, discern
interrelationships among organizational parts, and understand how the organization fits into
the wider context of the industry, community, and world.

Conceptual skills, coupled with technical skills, human skills and knowledge base, are
important ingredients in organizational performance.

Design Skills

It is the ability to solve the problems in ways that will benefit the enterprise. Managers must
be able to solve the problems.

The Skills vary at different levels:

Top management Concept and design Skills.

Middle Human Skills.

Supervisor’s Technical skills.

Skills of management at different levels.

The Function of Managers

There are five functions of managers: Planning, Organizing, Staffing, Leading, and
Controlling. The functions of managers provide a useful structure for organizing management
knowledge

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1. Planning

Planning involves selecting missions and objectives and the action to achieve them it requires
decision making, that choosing future courses of action from among alternatives. There are
five types of planning:

 Missions and objectives.

 Strategies and polices.

 Procedures and rules.

 Programs.

 . Budgets

2. Organizing / staffing

Organizing is the part of managing that involves establishing an intentional structure of roles
for people to fill in an organization. The purpose of an organization structure is to creating an
environment helpful for human performance. It is then management tools and not an end.
Although the structure must define the task to be done, the rules so established must also be
designed in the light of the abilities and motivations of the people available designing an
effective organization structure is not an easy managerial task. Many problems arises in
making structures fit situations.

Staffing involves filling and keeping filled, the positions in the organization. This is done by
identifying the work force requirement inventorying the people available and recruiting,
selecting, placing, promoting, appraising, planning the careers, compensating and training.

4. Leading

Leading is influence people so that they will contribute to organization and group goals. All
managers would agree that most problems arises from peoples desires and problems , their
behavior as individuals and in groups and that effective managers also need to be effective
leaders. Leading involves motivation, leadership styles and approaches and communications.

5. Controlling

Controlling is measuring and correcting individuals and organizational performance. It

involves measuring performance against goals and plans, showing where the deviations from
standards exit and helping to correct them. In short controlling facilitates the accomplishment
of plans. Control activity generally relate to the measurement of achievement. Some means of
controlling like the budget for expenses, inspection, record of labors-hours lost, are generally
familiar. Each shows whether plans are working out.