Efficiency is getting the most output from the least amount of inputs in order to minimize resource costs.

Efficiency is
often referred to as “doing things right”

Effectiveness is completing activities so that organizational goals are attained and is often described as “doing the right
things”

Nature and concept of management

Definition and Functions of Management

Management involves coordinating and overseeing the work activities of others so that their activities are
completed efficiently and effectively.

Coordinating and overseeing the work of others is what distinguishes a managerial position from a non managerial one.

IMPORTANCE OF MANAGEMENT
1. Management is goal oriented
Management is concern with achievement of specific goals. It is always directed towards achievement of
objectives. The success of management is measured by the extent to which objectives are achieved.
2. Management is associated with group efforts
The business comes into existence with certain objectives which are to be achieved by a group and not by one
person alone. Management gets things done by, with and through the efforts of group members. It co-ordinates
the activities and actions of its members towards a common goal.
3. Management is intangible
It is an unseen force, its presence can be evidence by the result of its efforts up to date order but they generally
remain unnoticed.
. Management is an activity and not a person or group of person
Management is not people or not a certain class but it is the activity, it is the process of planning, organizing,
directing and controlling to achieve the objectives of the organization.
5. Management is situational
Management does not advice best way of doing things. Effective management is always situational. A manager
has to apply principles, approaches and techniques of management after taking into consideration the existing
situations.
6.Management is universal
Most of the principles and techniques of management are universal in nature. They can be applied to
government organization, military, educational institutes, religious institutes etc. They provide working
guidelines which can be adopted according to situations.
7. Management is concern with people
Since management involves getting things done through others only human being performed this activity with
the help of planning and control. The element man can not be separated from the management.
8. Management is the combination of art, science and profession
Management makes use of science as well as art. It is science because it collects knowledge with the methods
and data, analyzes and measures it and decision is taken with the help of experiment. It is a systematic body of
knowledge. Art means application of knowledge for solving various problems. In modern times there is
separation of ownership and management, so professional experts are appointed.

Management Functions- These are needed in order to accomplish the management process or coordinating and
overseeing the work performance of individuals working together in organizations.
The Nature of Managerial Work

Henry Mintzberg

3 categories:

 Interpersonal: This role involves human interaction.

 Informational: This role involves the sharing and analyzing of information.

 Decisional: This role involves decision making.

Negotiation Skills- . It enable managers in all levels to relate well with people

Organization- It is defined as a social setting composed of several groups of people who bond and work together to
achieve a common purpose.

technological dimension- refers to the method available for converting resources into products or services

MANAGEMENT THEORIES
1 Classical Theory (1900 – 1920’s) is the oldest theory. This theory evolved in
response to the shift from handicraft to industrial production. The emphasis is on the
economic rationality of people and organizations, motivated by economic incentives
that through their efforts yield greatest monetary benefits or income. (Scientific
management)
2. Neo-classical theories believe that the best way toward gaining maximum productivity from workers is
through motivation, structure and supporting employees, consider the worker’s intrinsic value in their jobs and
having emphasis in the positive impact of social relationship of worker productivity. Under neo-classical
theories, theorist focuses on human relations and
behavior of the employees.
3. 3. The Modern Theories of Management
Dealing with complexity is the core of modern management theory. Focus ison the interaction between
Organizations, Workers, and Environment.It is a synthesis of several theories such as, behavioral science,
Mathematics,statistics, operations / quantitative research and computing technologies.Application of
management knowledge is extended to non-business areas like
education, government, health care and others.
CLASSIFICATION OF MANAGERIAL SKILLS
Management & Leadership Skills. These skills refer to setting priorities,delegating, motivating and
developing the people under him/her; coach them tobecome top performers and communicates objectives and
goals.
Communication Skills. A skill across the point, it creates a compelling presentation to support company goals
and get buy-in for ideas, inspires others to achieve better results and demonstrate emotional intelligence.
Collaboration Skills. Can value and celebrate differences, build rapport, form alliances and negotiate
effectively.
Critical Thinking Skills. Skill needed to approach problem solving logically, research options, avoid biases
and focuses on meaningful data to draw the right conclusions – even under pressure.
Finance Skills. Skill in weighing financial or budgetary implications of his/her decisions – including the ability
to build a sound budget and formulate reasonable
forecasts.
Project Management Skills. Skill to grasp the scope and objectives of
projects, recognize the roles and responsibilities of others, use Project Management tools to stay on track and
become an effective member of a cross-functional team.
Managerial Skills by Robert Katz:
Technical skills. Competencies important, particularly for lower management.
job-specific knowledge and techniques needed to proficiently perform specific
tasks.
Human skills. Competencies needed for all levels of management. the ability
to work well with other people individually and in a group.
Conceptual skills. Competencies with a substantial importance, particularly for
top management. The ability to think and to conceptualize about abstract and
complex situations.
Frederick W. Taylor- “The Father of Scientific Management”

Organizing- backbone of business