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1. Define Management and its characteristics?

Management is a comprehensive word which is used in different sciences in the modern


business and industrial world. Management is an executive function which is primarily concerned
with carrying out of the policies laid down by the administration. It is that function of an
enterprise which concerns itself with the direction and control of the various activities to attain the
business objectives. In short, Management may be defined as the agency that provides leadership,
guidance and control for the achievement of the objectives set by the administration.
The main characteristics of management are as follows:
I. Management is an activity: Management is an activity which is concerned with the efficient
utilization of human and non-human resources of production.
II. Invisible Force: Management is an invisible force. Its existence can be felt through the
enterprise or institution it is managing.
III. Goal Oriented: Management is goal oriented as it aims to achieve some definite goals and
objectives. According to the Haimann, "Effective management is always management by
objectives". Managers and other personnel officers apply their knowledge, experience and skills to
achieve the desired objectives.
IV. Accomplishment through the efforts of Others: Managers cannot do everything themselves.
They must have the necessary ability and skills to get work accomplished through the efforts of
others.
V. Universal activity: Management is universal. Management is required in all types or
organizations. Wherever there are some activities, there is management. The basic principles of
management are universal and can be applied anywhere and in every field, such as business, social,
religious, cultural, sports, administration, educational, politics or military.
VI. Art as well as Science: Management is both an art and a science. It is a science as it has an
organized body of knowledge which contains certain universal truths and an art as managing
requires certain skills which apply more or less in every situation.

Activity

Art

Goal Oriented

Management

Ownership

Science

Invisible Force
Integrated Process
Multidisciplinary Knowledge

VII. Multidisciplinary Knowledge: Though management is a distinct discipline, it contains


principles drawn from many social sciences like psychology, sociology etc.
VIII. Management is distinct from ownership: In modern times, there is a divorce of
management from ownership. Today, big corporations are owned by a vast number of shareholders
while their management is in the hands of paid qualified, competent and experienced managerial
personnel.
IX. Need at all levels: According to the nature of task and scope of authority, management is
needed at all levels of the organization, i.e., top level, middle and lower level.
X. Integrated process: Management is an integrated process. It integrates the men, machine and
material to carry out the operations of the enterprise efficiently and successfully. This integrating
process is result oriented.

2. What are the scopes of management?


The field of management is very wide. The operational areas of business management may be
classified into the following categories:

Production

Marketing

Managemen

Financial

Personal

(i) Production Management: Production management implies planning, organizing, directing and
controlling the production function so as to produce the right goods, in right quantity, at the right
time and at the right cost. It includes the following activities:
(a) Designing the product.
(b) Location and layout of plant and building.
(c) Planning and control of factory operations.
(d) Operation of purchase and storage of materials.
(e) Repairs and maintenance.
(f) Inventory cost and quality control.
(g) Research and development etc.
(ii) Marketing Management: Marketing management refers to the identification of consumers
needs and supplying them the goods and services which can satisfy these wants. It involves the
following activities:
(a) Marketing research to determine the needs and expectation of consumers.
(b) Planning and developing suitable products.
(c) Setting appropriate prices.
(d) Selecting the right channel of distribution.
(e) Promotional activities like advertising and salesmanship.
(iii) Financial Management: Financial management seeks to ensure the right amount and type of
funds to business at the right time and at reasonable cost. It comprises the following activities:
(a) Estimating the volume of funds required for both long-term and short-term needs of business.
(b) Selecting the appropriate source of funds.
(c) Raising the required funds at the right time.
(d) Ensuring proper utilization and allocation of raised funds so as to maintain safety and liquidity
of funds and the creditworthiness and profitability of business.
(e) Administration of earnings.
(iv)Personnel Management: Personnel management involves planning, organizing and
controlling the procurement, development, compensation, maintenance and integration of human
resources of an organization. It consists of the following activities:
(a) Manpower planning
(b) Recruitments,

(c) Selection,
(d) Training
(e) Appraisal,
(f) Promotions and transfers,
(g) Compensation,
(h) Employee welfare services, and
(i) Personnel records and research,

3. What are the seven concepts of getting result through management?


The seven concepts for getting results through people are:
1. Management by Communication.
2. Management by System.
3. Management by Results.
4. Management by Exception.
5. Management by Participation.
6. Management by Motivation.
7. Management by Objectives.

1. Management by Communication.
Communication means the process of passing information and
understanding from one person to another where as managing is getting things done through others.
Communication is a continuous and coordinated process of telling, listening and understanding.
Information without understanding is considered as an ineffective communication. Only with good
communication, misunderstanding can be eliminated. Therefore, he success of all managerial
functions depends on successful communication.
2. Management by System.
It is a philosophy of management or an approach to management problems
whereby experimentation and analysis displace the blind acceptance of things traditional and
conventional. The management by system can be summarized as
1.
2.
3.
4.
5.
6.
7.
8.

Recognize the problem, analyze it and define objectives.


Gather and analyze the necessary data.
Synthesize the possible alternative.
Review and evaluate each alternative.
Test conclusions, if possible.
Take selected action.
Review results.
Formulate and test principles.

3. Management by Results.
The management deals with control or getting the work done through
coordinated and cooperative efforts of people who have been properly organized into working
groups, for the accomplishment of specified purpose. Progress and improvement is evaluated only
by comparison of the conditions before and after betterment has been made. It includes four
elements.

(a)Quality to be measured.
(b)Selection of standard/quality.
(c)Determination of standards.
(d)Means to compare quality.
4. Management by Exception.
It is a "policy by which management devotes its time to investigating only
those situations in which actual results differ significantly from planned results. The idea is that management
should spend its valuable time concentrating on the more important items. Attention is given only to material
deviations requiring investigation."

5. Management by Participation.
It aims in establishing relationship with employee to such an extent that the employee can regard
each of one as one of their own and treat as brother. It is based on four principles.
1)
2)
3)
4)

Belief in the doctrine of trusteeship.


Recognition that employee is not merely a means of production.
Realization that an employer is a giver and less a taker.
Workers dont want money, they need money.

Once these basic principles are accepted by the employee and workers, they treat
all as an indispensable part of themselves.
6. Management by Motivation.
It actually relates the will to work. Steps are to be taken to understand the motive of work
and to find out ways and means for realization of activity. It helps and encourages the workers and
employees of the organization.It are the dynamic aspect of management, distinct from the
mechanic. Management is concerned with the power behind the machinery, the wills of the
individual men and women who cooperate in the task.
7. Management by Objectives.
It involves effective participation and involvement by each member of the organization. It aims in
making all individual output centered, result oriented, optimum committed and achievement
motivated. It comprise of following steps.
1. The establishment of the objectives as a whole for both long as well as short term.
2. The long term and short term objective for each manager clarifying the result and
performance standards.
3. Periodic performance review and discuss progress towards result.
4. Counseling all employee and managers of the organization.
Difference between Administration and Management.

Ans. According to School of Thought Administration is a top-level function which centres round the
determinatiom of major policies and objectives of a business enterprise(i.e. Thinking function), while
Management is a lower-level function which relates to the implementation of policies and directing
operations to attain the objectives laid down by administration (i.e. Doing function)

POINT

MANAGEMENT

ADMINISTRATION

Nature of Work

It puts into action the policies and plans laid


down by the administration.

Type of function

It is an executive function.

It is concerned about the


determination of objectives and
major policies of an organization.
It is a determinative function.

Scope

It takes decisions within the framework set


by the administration.
It is a lower level activity.

It takes major decisions of an


enterprise as a whole.
It is a top-level activity.

It is a group of managerial personnel who


use their specialized knowledge to fulfil the
objectives of an enterprise.
Its decisions are influenced by the values,
opinions, and beliefs of the managers.

It consists of owners who invest


capital in and receive profits from an
enterprise.
Its decisions are influenced by public
opinion government policies, social,
and religious factors.
Planning and organizing functions
are involved init.
It requires technical activities.

Level of authority
Nature of status
Decision making

Handles

Motivating and controlling functions are


involved in it.
It needs administrative rather than technical
abilities.
Management handles the employers.

Nature of usage

It is used in business enterprises.

Illustrations

The following are usually designated as


Managers: General Manager of any
company, Managing Director of company,
Director of personnel Administration
Department etc.

Main functions
Abilities

Administration handles the business


aspects such as finance.
It is popular with government,
military, education, & organization.
The following are designated as
administrators :Collectors,
Commissioners, Vice Chancellor,
Registrars, Minister, Income Tax &
Sales Tax Officers, Chief Justice etc.

Give a brief note on the importance of study of Business Administration and Management under the present
politico-economic conditions of the country.
Ans. The following arguments may be put forth in its support:
1. Combat the increasing competition successfully.
Modern business is extremely complex and competitive. The markets are vast and the
competition is cut-throat.
In this age of competition, every nation is busy in producing greater, better and cheaper
goods. But this aim cannot be achieved without a through knowledge of the science of
cutting costs. viz, business administration and management.e.g., financial control,
production control, sales control, accounting control, etc.
2. Co-ordinate the various factors of production.

The study of the principles and practice of business administration and management also
enables a man to convert the disorganized resources of men, machines, money and materials
into a useful enterprise.
Efficient administrators and managers conceive the service an enterprise can render,
mobilize the required means of production, co-ordinate activities both within the enterprise
and with the outside world, and inspire people associated with the enterprise to work toward
common objectives.

3. Meet the growin challenge of service and technology.


The need for competent, resourceful, innovating administrators and managers and their
opportunity to make significant social contributions.
One conspicuous challenge we face is rapid increasing complexity of technology.
4. smooth growth of big business.
As compared to proprietary, partnership and co-operative institutions, there are bigger
problems in the case of big businesses like the joint stock companies, wherein production is
carried on a large scale, with huge capital and a large number of personnel.
The problem of big business can be successfully solved only with the aid of administrative
and managerial techniques.
5. Providing capable administrators and managers for tomorrow.
One of the aims of management education is to broaden the outlook of executives, develop
their abilities for better functioning in their present or future jobs, and increase their
potential abilities to handle higher level jobs.
In other words, the personal development of an executive is a very important aim of
management education.
Another aim is to prepare future executives in business.

Short the classification of management.


Ans.