Nature and

Functions Of
Management
Definition Of
Management
• "Management is concerned with
resources, tasks and goals". It is the
process of planning, organising,
staffing, directing and controlling to
accomplish organisational objectives
through the coordinated use of human
and material resources.
Other Definitions Of Management
Management is the accomplishment of results through the efforts of other people. (Lawrence. A.
Appley).

Management is the art of getting things done through and with the people in formally organized
groups. (Koontz. H).

Management is a process of planning, organising, actuating and controlling to determine and

accomplish the objectives by the use of people and resources. (Terry G).

Management is the process by which managers create, direct, maintain and operate purposive
organisations through systematic, coordinated, cooperative human effort. (Mc Fariand).

It is the coordination of all resources through the process of planning organising, directing and
controlling in order to attain stated objectives. (Sisk).
 • Effective Utilisation of Resources: Management tries to
make effective utilisation of various resources. The
resources are scarce in nature and to meet the demand of
the society, their contribution should be maximum for the
general interests of the society. The management not only

Importance decides in which particular alternative a particular resource

should be used, but also takes actions to utilise it in that
particular alternative in the best way.
Of • Development of Resources: Management develops various
resources. This is true with human as well as non-human

Management factors. Lawrence Appley has emphasised that,

management is the development of people. However, most
of the researches for resource development are carried on in
an organised way and management is involved in these
organised activities. Thus, through the development of
resources, management improves the quality of lives of
people in the society.
• To Incorporate Innovations: Today, changes are occurring at a very fast rate in both
technology and social process and structure. These changes need to be incorporated to
keep the organisations alive and efficient. Business organisations are moving from
primitive to sophisticated. Therefore, they require high degree of specialisation, high
level of competence and complex technology. All these require efficient management
so that organisations work in the most efficient way.
• Integrating Various Interest Groups: In the organised efforts, there are various
interest groups and they put pressure over other groups for maximum share in the
combined output. For example, in the case of a business organisation, there are various
pressure groups such as shareholders, employees, government, etc. These interest
groups have pressure on an organisation. In a more advanced and complex society,
more such pressure is on the organisation. Management has to balance these pressures
from various interest groups.
• Stability in the Society: Management provides stability in the society by changing and
modifying the resources in accordance with the changing environment of the society. In
the modern age, more emphasis is on new inventions for the betterment of human
beings. These inventions make old systems and factors mostly obsolete and inefficient.
Management provides integration between traditions and new inventions and
safeguards society from the unfavourable impact of these inventions so that continuity
Management
Functions
 • Planning is the foremost feature of a management
which behaves with plans for future course of action
and decides for the most correct course of actions in
getting fixed goals. According to Koontz, planning is
the advance preparation of action to be taken related
to any work. This will link from the starting of a
phase to the implementation phase. It is a future
1. Planning direction to be taken which could be worked in
problem solving exercises and decision making. It is
studied that planning shows related course of action
to meet the required goals which involves straight
and clear thinking about ways and means for doing
fixed goals. Planning serves as a correct usage
among human as well as non-human resources
 • Organising is related to involvement of physical,
financial, human resources as well as development of
productive relationships which appears amongst
themselves for obtaining organisational criteria‟s. Henry
Fayol relates organisation as arranging a business which
will give everything required for working and
functioning. Practically, organising a business needs
2. finding and showing human and non-human constituents
for organisational arrangements. The process of
Organising Organising includes:
• Exploring activities
• Classifying activity groups
• Declaration of responsibilities
• Delegating authority and responsibility
• Functioning with authority and coordination
 • It involves association of manpower to support an organisation
function. With the advent of new technologies and spreading of
business avenues, staffing play an important role in catering
services rendered by organisations. The idea of staffing is
assign right job for right people. Kootz and O‟Donell
explained staffing as manpower involvement in an organisation
as per desired selection Staffing involves:

3. Staffing • Recruitments after planning

• Processes related to recruitment, selection along with
placement
• Activities related to Training and development
• Basic remuneration to be offered
• Appraisals
• Promotions and transfers
 • This is the sector of managerial function which allows
organisational methods to work correctly and efficiently in
obtaining organisational challenges. This is an inter-personnel
concern of a management that influences, guide, supervise and
motivate sub-ordinates for obtaining organisational parameters.
Direction has the following elements:
• Supervision: Inspecting the work of sub-ordinates with the
help of superiors.
4. Directing • Motivation: This involves the work of a superior to inspire,
stimulate and encourage with passion to work.
• Leadership: It is the capability which shows the guidance
given by mangers to his subordinate to work in certain
direction.
• Communications: This involves sharing, communicating and
passing of related information from one person to another. This
serves as a bridge of understanding.
 • It implies measurement of approach against particular standards with
alterations in deflection, if any, will make sure the approach of
organisational objectives. The idea behind controlling is to make sure
that all will come in conformity with particular standards. A good
effective mechanism will handle to think about deflection earlier at
times when it actually occurs. Controlling, as per Theo Haimann is
basically a mechanism of analysing progress that happens towards
5. particular aims and objectives if required to correct any deflection.
Koontz and O‟Donell explained controlling as mechanism that

Controlling
involves correction of activities of subordinates to ensure about
enterprise objectives with related plans to get them arrived. Therefore,
controlling has the following steps:
• Establishing constant measures
• Measure real performance
• Comparing performances with standards and locating deviations
• Corrective action
 Levels Of
Management
Introduction
• In an organisation, there are certain levels defined by the management
wherein each level is confined with its nature and activities involved.
The levels of management can be classified in three broad categories:
• Top level / Administrative level
• Middle level / Executor level
• Low level / Supervisory / Operative / First-line managers
Top Management
Determines objectives and policies.

Designs the basic operating and financial structure of an organisation.

Provides guidance and direction.

Lays down standards of performance.

Maintains good public relations.

Middle Management

Interprets and explains the policies framed by the top.

Issues detailed instructions.

Participates in operating decisions.

Trains other managers.

Lower Management

Plans day-to-day operations.

Assigns jobs to workers.

Provides supervision and control over work.

Arranges material tools and equipment.

Maintains discipline.
Role Of a Manager
• There are mainly 3 roles that a manager has
• Interpersonal Role
• Informational Role
• Decision Role
 • Figurehead: This includes the traditional role akin to that
of the head of a big family; these gestures go a long way
in building a rapport with the employees. This role would
expect the manager to perform duties of welcoming and
felicitating dignitaries, going for business lunches and
attending important functions of employees.
Interpersonal • Leader: As a leader, every manager must encourage and
persuade his employee to work. He must try to bring
Role together their interpersonal needs with the goal of
organisation. He is the sole motivator of the employees
working under him which means he must enjoy not just
their trust but also their respect.
• Liaison: In his role as a liaison, every manager must
develop contacts outside his perpendicular chain of
command to collect information for his organisation.
 • Monitor: As a monitor, the manager has to constantly
scan his environment for information, debrief his contacts
and his subordinates and decide on unsolicited
information, where much of it a result of the network of
personal contact developed.
• Disseminator: In the role of a disseminator, the manager
Informationa passes some information openly to his subordinates who
would otherwise have no access to it.
l Role • Spokesman: In this role, the manager informs to satisfy
various groups and people who influence his
organisation. He assures his shareholders of financial
performance. He assures consumer groups that the
organisation is fulfilling its social responsibilities. He
satisfies the government that the organisation is abiding
laws.
 • Entrepreneur: In this role, the manager is an idea- seeker who
seeks to improve his unit by adapting it to changing conditions
in the environment.
• Disturbance Handler: In this role, the manager is expected to
seek solutions of various unforeseen problems – for example if
there is a strike, lockdown or a major customer goes bankrupt
it is the duty of the manager to find a solution.
Decision • Resource Allocator: In this role, the manager must divide
Role work and delegate authority among his subordinates. He must
decide who will get what.
• Negotiator: The manager has to spend considerable time in
negotiation. As a representative of his company it is the duty of
the manager to negotiate with the management for the welfare
of the workers, he needs to negotiate with the union leader if
there is a strike issue, or the foremen may negotiate with the
workers on any grievances they may have.
Managerial
Skills
• Technical skills: Adequate Knowledge of and proficiency in a certain
specialised field, such as engineering, computers, financial and managerial
accounting or manufacturing is essential.
• Human skills: This includes ability to serve well individually or in group
since the idea is that managers interact directly with people.
• Conceptual Skills: This involves using logic to solve problems, locating
opportunities, finding problems and locating faults. This skill will help in
selecting critical information among a lots of data by understanding
technology and business structure.
• Communication Skills: This skill involves transposing thoughts into words
or action. It serves to improve image among colleagues and subordinates
with interaction involved among various grounds.
• Effectiveness Skills: This involves contribution or sharing missions or
objectives with focus on customer relation, project management and setting
and maintaining performance levels.
• Interpersonal Skills: It involves regulation and mentoring with diversified
factors related to people and culture, to help cultivate a network inside an
establishment along with commitment and cooperation. In today's
demanding and dynamic workplace, employees who are invaluable to an
organisation must be willing to constantly upgrade their skills and take on
extra work outside their own specific job areas. There is no doubt that skills
will continue to be an important way of describing what a manager does. An
up gradation of individual skills helps in the overall improvement of the
organisation as a whole. It gives it the cutting edge over all other
contemporaries.
• Design skill: Koontz and Weibrich added one more skill to the above list.
Design skill is the ability to solve problems in ways that will help the
organisation. At higher levels, managers should be able to move beyond
perceiving a potential problem. They are expected to design a workable
solution to a problem in the light of realities they face. If managers merely
see a problem and become problem watchers, they will fail.
 Management
And
Administration
 • According to Theo Haimann,
“Administration means overall determination
of policies, setting of major objectives, the
identification of general purposes and lying
What Is down of broad programmes and projects.”
Administration • It refers to the activities of higher level. It
? lays down basic principles of the initiative.
• According to Newman, “Administration
means guidance, leadership and control of
the efforts of the groups towards some
common goals.”
 • Management involves conceiving, initiating and
bringing together the various elements and
coordinating, actuating, integrating the diverse
organisational components while sustaining the
viability of the organisation towards some pre-
determined goals. In other words, it is an art of
What Is getting things done with the help of others in
formally organised groups.
Management?
• The difference between management and
administration can be summarised under two
categories:
• Functions
• Usage / Applicability
Difference
between
Management
And
Administration
based on
Functions
Difference
between
Management
and
Administration
based on Usage
• Practically, there is no difference between management and
administration. Every manager is concerned with both – administrative
management function and operative management function. However,
the managers who are higher up in the hierarchy devote more time on
administrative function and the lower level devote more time on
directing and controlling worker’s performance, i.e. management.
 • Management is a wide concept which is not
restricted to limited region but plays an
Management important role in our everyday life. It begins
with self-arrangement and serves as a
as a Science mixture of planning organising, controlling,
and an Art directing as well as coordinating. It involves
both science and an art which stands clear
among them with several strong constituents.
 • Management continues as a science in experience which is
accurate, scientific as well as correct arrangements possessing
as comprehended as well as digested. Many custodians will
acquire a favourable control of assured quantitative
mechanisms by encompassing financial as well as geometric
documentation along with below scientific as well researched
Management are checked as constituents which is similar as communal
stimulation along with the consequence of contradictory

As a Science incentive systems based on operation of no uniform

assignments. In extension, it may additionally describe a
science which depends on additional enclosed establishment of
truisms which for time being approximated as outclass
behaviours with their emphasis on calculation as well as
explanation of assessments against contexts along with regions.
It believes that management describes as science since it
consists relevantly of balanced as well as accounted operations.
• In acquisition, it endures science since of the measure to which
caretakers are agreeable to invest in acquisition of information along
with their acquiescence on which the management activity is based
upon in form of critical operation of information. Management claims
a comprehensively elaborated thinking to arrange as well as command
the operation of the organisation's reserves, an understanding that
existed precisely relevant in intervals of economic critical moments.
• It can be called as science since the organisations led to expert
handling and monitoring that can achieve better adaptability to have
good planning for running and maintaining business goals.
Management uses precise measurement, research and planning which
makes 'scientific' disciplines to gear up in getting faster response.
 • We can say that management behaves as an
art related to fixed and definite structures,
Management which led to use of creativity, imagination,
initiative and invention in the overall sphere
As a Art of the occupation.
• In management, creativity is required. Skills and the techniques
describe the art of management as described below:
• Managers will fight for resources from all other organisations with
correct skills and methods.
• Managers should only design that gives great value.  Inventors
should be rewarded.
• Purchase apart from what is there and label it again.
• Combine internal and external products in order to have more value.
• Retain employees by being successful.
• Become powerful and challengeable in the market.
• Management can be an art if they possess:
• Logical reasoning with step by step achievement of goals and
purposes.
• Clear and attractive development policies to attain goals.
• Control of desired resources.
• Logical design organisation, direction as well as monitoring of
activities and resources for particular purposes.
• Rewarding and Boosting qualities in getting work done.
• It is seen that management is a mixture of both economic and cultural
activities that aims to be applied everywhere. If the above combination
gets disturbed than management will not function properly.