THE NATURE OF MANAGEMENT

What is Management?
 Management is the art of getting things done through people.
 Management is not only essential for the success of a business or an organization but it plays equally a
very important role in organizing social, political, religious and any kind of group.
According to James L Lundy
“Management is principally the task of planning, coordinating, motivating and controlling the efforts of
others towards a specific objective”.
According to Heinz, Weihrich, and Koontz (2005)
“Management is defined as the process of designing and maintaining an environment for efficiently
accomplishing selected aims.”

Nature/Characteristics of Management

1. Management is universal: Management is taken as universal activity whether an organization is big or small,
government, hospitals, schools, colleges, etc. management is needed. Wherever there is a human activity there
is management. Every step of life requires management because with the help of management each & every
task can be handled easily, properly & effectively.
2. Management, social process: Since human factor is most important among the other factors, therefore
management is concerned with developing relationship among people. It is the duty of management to make
interaction between people - productive and useful for obtaining organizational goals.
3. Goal oriented: Effective management is always management by objectives and also it has no justification to
exist without goals. An efficient and good management tries to achieve the predetermined goals by the minimum
resources. Management is established only to achieve the goal. Hence, it is goal oriented.
4. Science & Art: Management combines features of both science as well as art. It is considered as a science
because it has an organized body of knowledge which contains certain universal truth. It is called an art because
managing requires certain skills which are personal possessions of managers.
5. Group Effort: It deals with group of activities because no individual can do all the activities at the same time.
So, it is based on group efforts. It is also used to achieve the common goals with group efforts. A group also can
achieve the predetermined goals easily and effectively.
6. Intangible: 'Intangible' means things that cannot be seen or touch it can only be felt example Goodwill.
Management is an intangible force because it is an unseen force. Its presence can be felt at every step
performed.
7. Required at all level: It is one of such process which requires all level, top level, middle level & low level of
an organization. According to levels the process of management is different.
 Top-level managers: The board of directors, president, vice-president, and CEO are all examples of top-
level managers.
Functions: executive coaching, change management, leadership, delegation & empowerment, etc.
 Middle-level managers: General managers, branch managers, and department managers are all
examples of middle-level managers. They are accountable to the top management for their department’s
function. Middle-level managers devote more time to organizational and directional functions than top-
level managers.
Functions: problem solving, team building, talent development, performance management, etc.
 Low-level managers: Supervisors, section leads, and foremen are examples of low-level management
titles. These managers focus on controlling and directing.
Functions: emotional intelligence & coaching for performance, etc.
8. Separate from ownership
Separation of ownership and management in corporate governance involves placing the management of
the firm under the responsibility of professionals who are not its owners. Owners of a company may
include shareholders, directors, government entities, other corporations and the initial founders.
9. Management as Profession
With the gradual development of theory and practice of management, claim is lately been made of its
being recognized as profession in the same way as law, medicine, engineering and teaching.
10. Purposeful activity
Management is concerned with achievement of objectives of an organization. These objectives are
achieved through the functions of planning, organizing, staffing, directing, controlling and decision-
making.
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Reporters: JO LEE A. ORCULLO

JACEL C. HANDAYAN
Subject: PA 205 Organization and Management
11. Multidisciplinary
Management is multidisciplinary because it includes knowledge/information from various disciplines-
economics, statistics, math’s, psychology, sociology, ecology, operations research, history, etc. ... Yet
managers can work better by using the organized knowledge about management.
12. Management is dynamic
Management is a dynamic activity/ process as it involves making changes in the goals, objectives and
activities of the organization from time to time depending upon changes happening in the business
environment. The external environment keeps on changing continuously and hence objectives &
functioning of the organization have to be changed from time to time depending upon changes happening
in external or business environment.
13. Relative, Not Absolute Principles
Management principles are relative, not absolute, and they should be applied according to the need of
the organization.

Intrinsic to the Nature of Management:

1. Coordination – harmonious, integrated action of the various parts and processes of an organization;
2. Efficiency – is being able to yield the maximum output from a minimum amount of input; and
3. Effectiveness – as being adopted to produce an effect, or being able to do things correctly.

Management functions include the following: (POSDICON)

1. Planning – Involves determining the organization’s goals or performance objectives, defining strategic
actions that must be done to accomplish them, and developing coordination and integration activities.
2. Organizing – Demands assigning tasks setting aside funds, and bringing harmonious relations among
the individuals and work groups or teams in the organization.
3. Staffing – Indicates filling in the different job positions in the organization’s structure.
4. Directing (or Leading) – Entails influencing or motivating subordinates to do their best so that they would
be able to help the organization’s endeavor to attain their set goals.
5. Controlling – Involves evaluating, if necessary, correcting the performance of the individuals or work
groups or teams to ensure that they are all working toward the previously set goals and plans of the
organization.

Importance of Management
Management meets the challenge of change: In this ever-changing business world, an efficient management
saves the business brought by the challenges.
Accomplishment of group goals: The achievement of objectives depends upon proper planning of available
resources and quality of decision taken and control made by the unit.
Effective utilization of business: In eight M’s man, money, materials, machines, methods, motivation, markets
and management, management has control over remaining M’s.
Effective functioning of business: Ability, experience, mutual understanding, co- ordination, motivation and
supervision are the factors for effective functioning of business. Management utilizes the abilities of workers and
fulfills their executions through motivation techniques.
Resource development: Resources like men, material, money and machines are identified and developed by
the management.
Sound organization structure: Sound organization structure clearly defines the authority and responsibility.
Management directs the organization: Management directs and controls the organization.
Integrates various interests: Management takes steps to integrate various interests to achieve the objectives
of an organization.
Stability: The fluctuations caused by changing policy of the government, pressures from competitors and
changing preferences by customers in the business are stabilized by the management.
Innovation: New ideas are developed by management and implemented in the organization.
Co-ordination and team spirit: Management coordination the activities of different departments and
establishes team spirit to achieve the objectives.
Tackling problems: Good management acts as a friend of workers while tackling problems.
A tool for personality development: Management gives direction and training to the workers that help them to
raise their efficiency and productivity.

Reporters: JO LEE A. ORCULLO

JACEL C. HANDAYAN
Subject: PA 205 Organization and Management