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CONCEPT AND NATURE OF MANAGEMENT Management is a universal phenomenon. It is a very popular and widely used term.

All organizations - business, political, cultural or social are involved in management because it is the management which helps and directs the various efforts towards a definite purpose. According to Harold Koontz, Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals can co-operate towards attainment of group goals!. According to ".#. $aylor, Management is an art of %nowing what to do, when to do and see that it is done in the best and cheapest way!. Management is a purposive activity. It is something that directs group efforts towards the attainment of certain pre - determined goals. It is the process of wor%ing with and through others to effectively achieve the goals of the organization, by efficiently using limited resources in the changing world. &f course, these goals may vary from one enterprise to another. '.g.( "or one enterprise it may be launching of new products by conducting mar%et surveys and for other it may be profit ma)imization by minimizing cost. Management involves creating an internal environment. It is the management which puts into use the various factors of production. $herefore, it is the responsibility of management to create such conditions which are conducive to ma)imum efforts so that people are able to perform their tas% efficiently and effectively. It includes ensuring availability of raw materials, determination of wages and salaries, formulation of rules * regulations etc. $herefore, we can say that good management includes both being effective and efficient. +eing effective means doing the appropriate tas% i.e, fitting the s,uare pegs in s,uare holes and round pegs in round holes. +eing efficient means doing the tas% correctly, at least possible cost with minimum wastage of resources.

$he study and application of management techni,ues has %ept on changing with time. -arious dimensions have got added with the changing nature of the discipline of management as various contributions came forth from time to time. In the present day conte)t, the following dimensions are integral to the nature of management( Continuous Process( Management is a never ending process. It will remain the part of organization till the organization itself e)ists. Management is an unending process as past decisions always carry their impact for the future course of action. Universal in Nature( Management is universal in nature i.e. it e)ists everywhere in universe wherever there is a human activity. $he basic principles of management can be applied anywhere whether they are business or non-business organization.

Multidisciplinary( Management is basically multidisciplinary. $hough management has been developed as a separate discipline, it draws %nowledge and concepts of various other disciplines li%e sociology, psychology, economics, statistics etc. Management lin%s ideas and concepts of all these disciplines and uses them for the benefit of the organization. Management is a group activity. Management is a vital part of group activity. As no individual can satisfy all her/his needs herself/himself, 0s1/he unites with her/his co-wor%ers and wor% together as an organized group to achieve what 0s1/he cannot achieve individually. Management is goal oriented( Management is a goal oriented activity. It wor%s to achieve some predetermined ob2ectives or goals which may be economic or social. Dynamic( Management is dynamic in nature i.e. techni,ues to mange business changes itself over a period of time. ystem o! aut"ority( Authority is power to get the wor% done by others and compel them to wor% systematically. Management cannot perform in absence of authority. Authority and responsibility depends upon position of manager in organization. Relative principles( Management principles are relative and not absolute, and they should be applied according to the need of the organization. 'ach organization is different from the other, and the differences might e)ist because of time, place, socio-cultural factors etc. Management is an art( Management is considered as art as both re,uires s%ills, %nowledge, e)perience and creativity for achievement of desired results.i Management is science. Management is considered as science. 3cience tells about the causes and effects of applications and is based on some specific principles and procedures. Management also uses some principles and specific methods. $hese are formed by continuous observations. COPE OF MANAGEMENT

4enerally, the scope of management hovers around the following functional areas( 5 6roduction management 5 Mar%eting management 5 "inancial management 5 6ersonal management Production management( 6roduction means creation of utilities by converting raw material into final product by various scientific methods and regulations. It is very important field of management. -arious sub-areas of the production department are as follows. Plant lay out and location( $his area deals with designing of plant layout, decide about the plant location for various products and providing various plant utilities Production planning( Managers have to plan about various production policies and production methods.

Material management( $his area deals with purchase, storage, issue and control of the material re,uired for production department. Researc" and Development( $his area deals with research and developmental activities of manufacturing department. 8efinement in e)isting product line or develop a new product are the ma2or activities. #uality Control( 9uality control department wor%s for production of ,uality product by doing various tests which ensure the customer satisfaction.

Mar$eting management% Mar%eting management involves distribution of the product to the buyers. It may need number of steps. 3ub areas are as follows Advertising( $his area deals with advertising of product, introducing new product in mar%et by various means and encourage the customer to buy thee products. ales management( 3ales management deals with fi)ation of prices, actual transfer of products to the customer after fulfilling certain formalities and after sales services. Mar$et researc"( It involves in collection of data related to product demand and performance by research and analysis of mar%et.

Finance and accounting management( "inancial and accounting management deals with managerial activities related to procurement and utilization of fund for business purpose. Its sub areas are as follows Financial accounting( It relates to record %eeping of various financial transactions, their classification and preparation of financial statements to show the financial position of the organization. Management accounting( It deals with analysis and interpretation of financial record so that management can ta%e certain decisions on investment plans, return to investors and dividend policy Ta&ation( $his area deals with various direct and indirect ta)es which an organization has to pay. Costing( :osting deals with recording of costs, their classification, analysis and cost control.

Personnel Management% 6ersonnel management is the phase of management which deals with effective use and control of manpower. "ollowing are the sub areas of personnel management Personnel planning( $his deals with preparation inventory of available manpower and actual re,uirement of wor%ers in organization. Recruitment and selection( $his deals with hiring and employing human being for various positions as re,uired.

Training and development( $raining and development deals with process of ma%ing the employees more efficient and effective by arranging training programmes. It helps in ma%ing team of competent employees which wor% for growth of an organisation. 'age administration( It deals in 2ob evaluation, merit rating of 2obs and ma%ing wage and incentive policy for employees. (ndustrial relation( It deals with maintenance of overall employee relation, providing good wor%ing conditions and welfare services to employees.

FUNCT(ON OF MANAGEMENT "or theoretical purposes, it may be convenient to separate the function of management but practically these functions are overlapping in nature i.e. they are highly inseparable. 'ach function blends into the other * each affects the performance of others. Planning( It is the basic function of management. It deals with chal%ing out a future course of action * deciding in advance the most appropriate course of actions for achievement of predetermined goals. According to K&&<$=, 6lanning is deciding in advance - what to do, when to do * how to do. It bridges the gap from where we are * where we want to be!. A plan is a future course of actions. It is an e)ercise in problem solving * decision ma%ing. 6lanning is determination of courses of action to achieve desired goals. $hus, planning is a systematic thin%ing about ways * means for accomplishment of predetermined goals. 6lanning is necessary to ensure proper utilization of human * nonhuman resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, ris%s, wastages etc. Organi)ing% It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry "ayol, $o organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel>s!. $o organize a business involves determining * providing human and non-human resources to the organizational structure. &rganizing as a process involves( Identification of activities. :lassification of grouping of activities. Assignment of duties. ?elegation of authority and creation of responsibility. :oordinating authority and responsibility relationships.

ta!!ing%

It is the function of manning the organization structure and %eeping it manned. 3taffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, comple)ity of human behavior etc. $he main purpose o staffing is to put right man on right 2ob. According to Kootz * &>?onell, Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal * development of personnel to fill the roles designed un the structure!. 3taffing involves( Manpower 6lanning 0estimating man power in terms of searching, choose the person and giving the right place1. 8ecruitment, selection * placement. $raining * development. 8emuneration. 6erformance appraisal. 6romotions * transfer.

Directing% It is that part of managerial function which actuates the organizational methods to wor% efficiently for achievement of organizational purposes. It is considered life-spar% of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the wor%. ?irection is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. ?irection has following elements( 3upervision Motivation Aeadership :ommunication 3upervision- implies overseeing the wor% of subordinates by their superiors. It is the act of watching * directing wor% * wor%ers. Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to wor%. 6ositive, negative, monetary, non-monetary incentives may be used for this purpose. Aeadership- may be defined as a process by which manager guides and influences the wor% of subordinates in desired direction. :ommunications- is the process of passing information, e)perience, opinion etc from one person to another. It is a bridge of understanding. Controlling% It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. $he purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur. According to $heo Haimann, :ontrolling is the process of chec%ing whether or not

proper progress is being made towards the ob2ectives and goals and acting if necessary, to correct any deviation!. According to Koontz * &>?onell :ontrolling is the measurement * correction of performance activities of subordinates in order to ma%e sure that the enterprise ob2ectives and plans desired to obtain them as being accomplished!. $herefore controlling has following steps( 'stablishment of standard performance. Measurement of actual performance. :omparison of actual performance with the standards and finding out deviation if any. :orrective action.

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6roduction management ?esigning the product Aocation and layout of plant and building 6lanning and control of factory operations &perations of purchase and storage of materials 8epairs and maintenance Inventory cost and ,uality control 8esearch and development Mar%eting Management Mar%eting research to determine the needs and e)pectation of consumers 6lanning and developing suitable products 3etting appropriate price 3electing the right channel of distribution 6romotional activities li%e advertisement and salesmanship to communicate with the customers "inancial Management 3electing the appropriate source of funds 8aising the re,uired funds at the right time Administration of earnings 'stimating the volume of funds 6ersonnel management Manpower planning 8ecruitment 3election $raining Appraisals 6romotions $ransfers :ompensation 'mployee welfare services 6ersonnel records, research etc.

Art is about creative communication of ideas and emotions. 3cience is about establishing truth or finding ob2ective facts through verifiable e)perimentation.