NATUE & SIGNIFICANCE OF MANAGEMENT

Management: “Management is the process of getting things done with the aim of achieving organisational
goals effectively and efficiently”.

Characteristics of management
1. Management is a goal oriented process: an organisation has a set of basic goals which are the basic reason for
its existence. They should be simple and clearly stated. Different organisations have different goals. Management
integrates the efforts of different individuals in the organisation towards achieving these goals.

2. Management is all pervasive: The activities involved in managing and organisation or common to all
organisations whether economic, social and political. What managers do in India the USA Germany or Japan is the
same. How they do it may be quite different this difference is due to the differences in culture tradition and
history.

3. Management is multi dimensional:

 Management of work: All organisations exist for the performance of some work. This is done in terms of
problems to be solved, decisions to be made, plans to be established, budgets to be prepared and authority to be
delegated.
 Management of people: Human resource is an organisations greatest asset. Despite all developments in
technology "getting work done through people" is still a major task for the manager.
 Management of operations: no matter what the organisation it has some basic product or service to
provide in order to survive this requires a production process which intels the flow of input material and
the technology for transforming this input into the desired output for a consumption.

4. Management is a continuous process : The process of management is a series of continuous composite but
separate functions being performed by the manager as planning, organising, deducting, staffing and controlling.
These functions are simultaneously performed by all managers all the time.

5. Management is a group activity : An organisation is a collection of different individuals with different needs.
Every member of the group has a different purpose for joining the organisation but as members of the
organisation they work towards fulfilling the common organisational goal this requires team work and
coordination of individual efforts in a common direction.

6. Management is a dynamic function: An organisation interacts with its external environment which consists of
various social, economical, technical, legal and political factors. In order to be successful an organisation must
change itself and its goals according to the needs of the environment.

7. Management is an intangible force: Management is an intangible force that cannot be seen but it's presence
can be felt in the way of organisation functions the effect of management is noticeable in an organisation where
targets are met according to plans.
 Objectives of management

1. Organisational objectives: Management is responsible for setting and achieving objectives for the
organisation variety of objectives in all areas considering the interest of all stakeholders including
shareholders employee’s customers and the government.
 Survival: the basic objective of any businesses to Survival for this management needs to earn minimum
profit to cover its cost. Survival is that an organisation exists for many years continuously.
 Profit: profit is the very important objective of every management that strive to achieve. Management
has to ensure that the organisation makes a maximum profit. Profit is essential for covering cost and risk
of the business.
 Growth: a business needs to and its prospects in the long group for this it is important for the business to
grow. Growth of a business can be measured in terms of increasing production and sales, number of
employees, increasing capital and expansion of business through many branches.

2. Social objectives: It involves the creation of benefit for society as a part of society every organisation
whether it is business or non business as a social obligation to fulfil.
 Creating employment opportunity: unemployment has become the major issue in India to overcome this
problem as a social objective all the organisations as the provide employment opportunity to the
unemployment this reduces the national problem.
 Quality of products: it's every organisations responsibility toward the society to produce the best quality
products which will be helpful for the customers.
 Financial Contribution to the backward society: organisations must come forward by putting the financial
hands to support backward societies like orphanages, old age homes and other institutions which are
financially not supported.
 Free campaigns: organisations should provide free campaigns like medical campaigns, health checkups
centres free educational trainings and so on.

3. Personal objectives: organisations are made up of people who have different, backgrounds, experience
and taste and preference. They are become part of the organisation to satisfy their different needs.
 Remuneration: Remuneration or salary is the main reason for the existence of employees in the
organisation without the remuneration no employee works in the organisation. It’s their basic need. It has
to be full filled by giving reasonable salary.
 Recognition: Employees should be motivated through much recognisational activity in the organisation
like giving bonus appreciation in the group giving extra incentives and awarding.
 Healthy working environment: all the employees require the working environment of the organisation
should be healthy the surrounding people and the management should corporate with the each
individual.
 Importance of management
1. Management helps in achieving group goals: management is required not for itself but for achieving the goals
of the organisation that ask of a manager is to give a common direction to the individual efforts in achieving the
overall goal of the organisation.

2. Management increases efficiency: The aim of a manager is to reduce cost and increase productivity through
better planning organising directing staffing and controlling of the activities of the organisation.

3. Management creates a dynamic organization: all organisations after function in the environment which is
constantly changing. External changes like political, social, technological, economical and legal environments. The
management helps in changing the internal environment as per the changes made in the external environment.

4. Management helps in achieving personal objectives: through motivation, leadership the management helps
individuals to achieve personal goals like salary, promotion, recognition while contributing to the overall
organisational objectives.

5. Management helps in the development of society: organisation has multiple objectives to serve the purpose
of the different groups that constitute in the process of full filling all this management helps in the development
of the organisation and true that it helps in the development of society it helps to provide good quality products
and service creates employment opportunity adopts new technology.

Nature of Management

1. Management as an Art:
“Art is the skilful and personal application of existing knowledge to achieve desired results. It can be
acquired to study observation and experience”.
Features of Art
 Existence of theoretical knowledge: Art pre supposes the existence of certain periodical knowledge
exports in their respective areas have derived certain basic principles which are applicable to particular
form of art.
 Personalized application: The use of this basic knowledge varies from individual to individual art therefore
is a much personalised concept.
 Based on practice and creativity: Art involves the creative practice of existing theoretical knowledge a
successful manager practices the art of management in the day today job of managing and enterprise
based on study observation and experience.

2. Management as a science:
“Science is a systematic body of knowledge that explain certain general truth or the operation of general
laws”.

Features of Science
  Systematised body of knowledge: The principles are based on cause and effect relationship that's why
science is a systematic way of getting the required knowledge is.
 Principles based on experimentation: Scientific principles are first developed through observation and
then tested through repeated examination under controlled conditions.
 Universal validity: scientific principles have universal validity. These principles are not ment only for few
years instead these principles are valid till the universe exists.

3. Management as a profession:
“Profession is that organisations look for individuals with the specific qualification and experience to
manage them. It’s educational qualification required by the individual to manage an organisation.
Features of Profession
 Well define body of knowledge: All professions are based on a well defined body of knowledge that can
be acquired through instructions.
 Restricted entry: The entry to a profession is restricted through an examination or through acquiring an
educational degree.
 Professional association: All professions have affiliated to a professional association with regulates entry
grants certificate of a practice and formulas and enforces are code of conduct.
 Ethical code of conduct: All professions are born by a code of conduct which gets the behaviour of its
members or doctors for example take the oath of ethical practice at the time they enter the profession.
 Service Motive: the basic Motive of a profession used sir their clients interact by rendering dedicated and
committed service.

Levels of management
”Management is a universal term used for certain functions performed by individuals in an enterprise who are
born together in a hierarchy of relationships. There are three levels of management”.

1. Top level management: they consist of the senior most executive of the organisation by whatever name
they are called. They usually referred to as the chairman, the chief executive officer (CEO) chief operating
officer (COO) President and vice President and managing director.
 There mean task is to co-ordinate the activities of different departments,
 They are responsible for the welfare and survival of the organisation.
 The main function of management that is planning is being done by the top level management.
2. Middle level management: it is the link between top and lower level management. They are subordinate
to the top manager and superiors to the lower level management they are usually known as divisional
heads for example production manager sales manager finance manager HR manager research and
development Manager.
3. Operation level management: operational level management directly over see the efforts of the work
force. There authority and responsibility is limited according to the plans drawn by the top management.
They interact with the actual work force and pass an instruction to the middle management and to the
workers. It consists of functional foremen, team leaders, supervisors and floor in charges.

Functions of management
 1. Planning
2. Organising
3. Staffing
4. Directing
5. Controlling

Co-ordination
According to theo haimann " coordination is the process of synchronising the activities of different departments
to achieve organisation goals effectively and efficiently with the minimum conflict".

Characteristics of coordination

1. Coordination integrates group efforts: coordination brings together the unrelated or diverse interest into
purposeful work activity. It gives a common focus to the group to ensure that performances as it was planned and
scheduled.

2. Coordination ensures unity of action: coordination acts as the binding force between departments and
ensures that all actions are aimed at achieving the goals of the organisation.

3. Coordination is continuous process: coordination is not a onetime function but a continuous process. It begins
at the planning stage and continues till controlling.

4. Coordination is an all pervasive function: coordination is required at all levels of management like top, middle
and lower level. it integrates the efforts of different departments and different levels the purchase and sales
department efforts have to be co-ordinated by management.

5. Coordination is the responsibility of all managers: coordination is the main function of every manager. in the
organisation top level managers need to co-ordinate with their subordinates, middle level management
coordinates with both the top level and lower level management, Operation level management coordinates the
activities of its workers to ensure that work proceeds according to plans.

6. Coordination is a deliberate function: the manager has to co-ordinate the efforts of different people in a
conscious and deliberate manner. Coordinating the activities of individuals who have different tastes and
preferences, ideas, creativity and background. It becomes difficult for the manager to co-ordinate.

Importance of coordination
1. Growth in size: organisation growing size the number of people employed by the organisation also increases
at times it may become difficult to integrate their efforts and activities all individuals differ in their habits of a
work background approach to situations and relationship with others.

2. Functional differentiation: functions of an organisation are divided into departments divisions and sections in
an organisation there may be separate departments of Finance production marketing or human resource all
these departments may have own objectives policies and their own style of working.

3. Specialisation: modern organisations are characterized by a high degree of specialisation. specialisation arises
out of the complexity of modern technology and the diversity of tasks to be performed. organisations therefore
need to employer number of specialists.