CHAPTER -1 NATURE AND SIGNIFICANCE OF MANAGEMENT

EXPLAIN THE CONCEPT OF MANAGEMENT

MANAGEMENT IS THE SET OF FIVE FUNCTION TO BE PERFOMED BY GROUP OF PERSONS TO

ACHIEVE THE GOALS IN AN EFFECVTIVE AND EFFICIENT MANNER .THE FIVE FUNCTIONS ARE
PLANNING ,ORGANISING ,STAFFING ,DIRECTING AND CONTROLLING.

EXPLAIN THE CONCEPT OF EFFECTIVE ANS EFFICIENCY.

EFFECTIVENESS- IT IMPLIES COMPLETE THEGIVEN TASK ON TIME EFFECTIVNESS IN MGT. IS

CONCERED WITH DOING THE RIGHT TASK,COMPLETING ACTIVITES AND ACHIEVING GOALS. IT IS
CONCERED WITH THE END RESULT.

EFFICIENCY-IT IMPLIES DOING THE TASK CORRECTLY AND WITH MINIMUM COST, EFFORTS
AND TIME. THERE IS A KIND OF COST –BENEFIT ANALYSIS INVOLVED AND THE RELATIONSHIP
BETWEEN INPUTS AND OUTPUTS.

EXPLAIN THE CHARACTERSTICS OF MANAGEMENT.

CHARACTERSTICS OF MANAGEMENT ARE

1) MANAGEMENT IS A GOAL –ORIENTED PROCESS-

a) an org. has a set of basic goals which are the basic reason for its existence

b) mgt. unities the efforts of different individuals in the org. towards achieving these goals

2) MANAGEMENT IS ALL PERVASIVE:

a) mgt. is pervasive that is required in all types of org .at all the levels of whether economic,
social, or political.

b) A petrol pump need to be managed as much as school or hospital

3) MANAGEMENT IS MULTIDIMENTIONAL:

a) MGT OF WORK- All the organizations exit for he performance of some work. Mgt. translates
this work in terms of goal to be achieved and assign the means to achieve it.

b) MGT. OF PEOPLE- Managing people has two dimentional

*it implies dealing with the employs as individual with diverse needs and behavior

*dealing as individual in a group of people

The task of management is to make people work towards achieving the organizational goals by
making their strength affective and weakness irrelevant

C) MGT OF OPERATION- Every organization has to produce something for survival. This requis a
production process in which with the use of input and technology desired output is produced.
This is interlinked with both mgt of work and mgt of people.

D) MGT. IS CONTINOUS PROCESS- The management is a continous process as it involves a series

of continous functions (planning, staffing, organizing, directing and controlling), these functions
are simultaneously performed by all the managers at same time.

E) MGT. IS GROUP ACTIVITY- In an organization different individuals are working with different
needs and behavior. Every member of the organization group has different purpose for joining
the organization but they work together for the achievement of organizational goals.

F) MGT IS DYNAMIC FUNCTION- Mgt is a dynamic function and has to adopt itself to the
changing environment. In orfder to be succesfull an oganisation must change itself and its goals
acoording to the needs of the environment.

G) MGT IS AN INTANGIBLE FORCE- It is an intangible foce that cant be seen but its presence can
be felt in the way the organization function. Even target are met according to the plans,
employes are happy and satisfied. There is order line instead of conflict. A ll these shows that
there is good management.

IMPORTANCE OF MANAGEMENT
A)MGT HELPS IN ACHIEVING GROUP GOALS- mgt. helps in achieving group goals

by giving a comman direction to all the person working in an organization towards

theachievment of org goals

B)MGT INCREASES EFFICENCY- Mgthelp in increases efficiency

by performing five functions of mgt. ( planning, organizing, staffing directing and controlling )
which help in reducing costs and increase efficiency

C)MGT CREATES A DYANAMIC ORGANISATION- All the organizations have to function in an

environment which is constanly changing.
 Mgt helps people to adopt these changes so that the organization is able to maintain its
competitive edge.

D) MGT HEPLS IN THE DEVELOPMENT OF SOCIETY- Mgt helps in the development of society
by providing good services, good quality product and services create employment opportunity
and by adopting new technology.
e) MGT HELPS IN ACHIEVING PERSONAL OBJECTIVE- Mgt helps individual to develop team
spirit cooperation and commitement to the group success
which helps individual members to achieve their personal goals while contributing to the over
organizational objectives.
COORDINATION
Q. EXPLAIN THE CONCEPT OF COORDINATION
It is the force that binds all the other functions of mgt. It is the essence of mgt
therefore coordination is the synchronization of efforts of various units performing different
different activities towards the achievemen of org. goals

CHARACTERSTICKS, NATURE AND FEATURES

A) COORDINATIONS INTIGRATES GROUP EFFORTS- coordination unities unrelated or
diverse interest into purposeful work activity.
It gives a common focus to group effort to ensure that performance is as per the
planned schedule

B) COORDINATION INVOLVES UNITY IN ACTION- The purpose of the coordination is to

secure unity
its acts as a binding force between the departments and ensure that the action of all
departments are directed for the achievement of organizational goals.

C) COORDINATION IS CONTINOUS PROCESS- It is not a one time function but it is a

continous process it is not a separate function of the management rather it is
required while performing each and every function of mgt in continous manner

D) COORDINATION IS ALL PERVASIVE FUNCTION- It is required at all the levels of mgt due
to the interdependent activity of different departments it indicate the efforts of
different departments at different levels for the achievement of organizational goals.

E) COORDINATION IS THE RESPONSIBILITY OF ALL MANAGERS- It is the function of every

manager of the organization
-TOP LEVEL: top level managers need to coordinate with their subordinstes so that the
overall policies of the organization are duly carried out.
-MIDDLE LEVEL- middle level manager coordinate with both the top level and the first
line managers
 -OPERATIONAL LEVEL- operational lecvel managers coordinate the activities of the
workers.

F) COORDINATION IS ADELIBRATE FUNCTON- A manager has to coordinate the efforts of

different people in an organization in deliberate manners
IMPORTANCE OF COORDINATION
A) GROWTH IN SIZE – As the org. Grow in size the number of person working in
an organisation also increases ,
it may become difficult to integrate their efforts and activities so it become
necessary to ensure that all individual work together for the achievement of
comman goals of the organization
B) FUNCTIONAL DIFFERENTIATION –AS THE ORG. GROW, FUNCTION OF AN ORG. ARE
DIVIDED INTI DIFFERENT DEPARTMENTS,DIVISION AND SECTION. All these
departments have its qwn objectives and policies inspite of this the activities of all
of org. goals
C) SPECIALISATION –Modern organization are characterstised by high degree of
specialization . specialist usually think that they are well qualified to evaluate to
take decision . This often lead to conflict among different specialist therefore
some coordination is required to reconcile their interest and approach

OBJECTIVES OF MANAGEMENT
SOCIAL OBJECTIVE

ENVIRIONMENTAL FRIENDIL’PROVIDING EMPLOYMENT,PROVIDING BASIC AMENITIES

ORGINATIONAL OBJECTIVE

SURVIVAL –The basic objective os any mgt. is survival

In order to suvive an organization must earn enough revenues to cover costs

PROFIT- Profit is required to cover the costs and risks of the business and act a incentive.

Mgt. must ensure to have sufficient profit

Growth- to remain in the business mgt. must exploit fully the growth potential of the org.

Growth is measured in terms of

Increase in sales volume

Increase in no. of employees,increase in no. of products, increase in capital investment

NATURE OF MANAGMENT

MMMMMMMMMMMMMMMMMMMMMMM

EXPLAIN THAT MANAGEMENT AS AN ART

EXPLAIN THAT MANAGEMENT AS ART

ART IS HE SKILLFUL AND PERSONAL APPLICATION OF
EXISTING KNOWLEDGE TO ACHIVE DESIRED RESULT. IT
CAN BE ACQUIRED THROUGH STUDY ,OBSERVATION AND
EXPERIENCE

1) Existence of theoretical knowledge – art have the existence of certain

theortical knowledge . certain principal are derived by the various expert in
their respective areas.

In management also lots of literature available in various ares of mgt. which

the manager has to specialize.

2)Personalised application – Art is personalized concept as the usage of basic

knowledge differ from individual to individual . for ex. Two dancers , two
actors will always differ in demonstrating their art

In management also a manager also applies the scientific method and

knowledge to a given statement in his unique manner .he studies critical
situation and formulates his own theories . this gives rise to different styles of
mgt.

3)Based in practice and creativity – Art is concered with personal application of

knowledge

So some kind of creativity is required to practice the basis principle learnt.

For example ,amusicain makes a unique composition based on seven basic

notes.

In mgt. also a manager works through a combination of practice ,creativity,

imagination,initiative and innovation.

So on the basis of above discussion we can say that mgt. is an art

Q) Do you think that management is a profession or not give reasons in
support of your answer

1) WELL DEFINED BODY OF KNOWLEDGE- All profession are based on a well

defined body of knowledge that can be acquired thourgh instructions . to
become a professionalist one should know the principles ,theories and laws of
that particular profession.

Mgt. is also a specialized body of knowledge as t become a successfi manager

one should know the principal ,theories and laws of management. This
knowledge can be acquired through differentciieges and professional
institution

2) RESTRICTED ENTRY- TO ENTER INTO ANY PROFESSION ONE HAS TO QUALIFY

EXAM .No one can enter into any profession for ex to become a C.A a
candidate has to clear a specified exam conducted by institute .

In mgt. some sort of restriction are there like entry to mgt. Institute such as
Indian institute of mgt. is usually through an examnation.however there is no
restriction on any one being desiganated as manager in any business, but the
demand of qualified managers are more .

3) PROFESSIONAL ASSOCIATION- IEach and every profssion has their own

professional association and it is compulsory o be the member of their
espective association for. Ex. To be practice In indialawyr hav to become
member of the ba council of of india which regulate and control their
activities.
In mgt. also there are various professional association like all india mgt.
association (AIMA) WHO REGULATE THE ACTIVITIES BUT IT IS NOT
COMPULSORY TO BE THE MEMBER OF association
4) ETHICAL CODE OF ONDUCT – Aii profession bound by code of conduc t
framed by their professional association and it s ompulsory to follow all
rules and regulations.
I mgt. also there are also various code of conduct framed by their professional
association but it is nit compulsory to follow hose code of conduct.

5) SERVICE MOTIVE –The basic motive of any profession is to serve the society
and for serving the society they are charging the fees .

In mgt. the basic purpose of mgt. is achieving org. goals by providimg good
quality product at reasonable prices thereby serving the society .

On the basis of above discussion we can say that mgt. is not complete
profession but it is on the line of profession.

MANAGEMENT AS A SCIENCE
1. SYSTEMETIC BODY OF KNOWLEDGE:-
Science is a systematic body of knowledge. Its principles are based on a
cause and effect relationship. For example, the phenomenon of an apple
falling from a tree towards ground is explained by the law of gravity.
Like science, management is a systematic body of knowledge with its
own theory, vocabulary of terms, concepts and principles that have
developed over a period of time.
So this feauture of science is present in management.
2) principles based on observation and experimentation –
scientific principles are first developed through observation and
experimentation
The principle of mgt. also developed on the basis of observation and
experimentation
3) universai applicability and validity – the application of
mgt. principles are universal applicable and universal valid which
implies that the result of mgt. principle are same every where.
The principle of mgt. are also universal applicable that is they can be
applied to every situation but the result of mgt. principles are not same
everywhere as it deals with human and the nature of human beings can
not be constant it keeps on changing .
So on the basis of aboveDISCUSSION we can say that mgt. Is not
complete science or in exact science or we can say that it is behavioural
science as it deals with behavior of human beings.

LEVELS OF MANAGEMENT

FUNCTIONS OF MANAGEMENT
 .

PLANNING- PLANNING IS THE PROCESS OF DECIDING IN ADVANCE ABOUT THE

FUTURE COURSE OF ACTION

ORGANISING- ORGANISING IS THR PROCESS OF ASSIGNING DUTIES, GROUPING

TASKS, ESTABLISHING AUTHORITY AND ALLOCATING RESOURCES
REQUIRED TO CARRY OUT A SPECIFIC PLAN.

STAFFING STAFFING IS CONCERED WITH OBTAINING ,UTILISING AND MAINTAINING A

SATISFACTORY AND SATISFIED WORK FORCE.

DIRECTING -DIRECTING INVOLVES LEADING,INFLUENCING AND MOTIVATING

EMPLOYEES TO PERFORM THE TASKS ASSIGNED TO THEM.
CONTROLLING CONTROLLING IS THE PROCESS OF COMPARING THE ACTUAL
PERFORMANCE WITH THE STD. AND FIND OUT DEVIATION ,IF ANT THEN
TAKING CORRECTIVE ACTION.

LEVELS OF MGT FUNCTIONS

TOP LEVEL INTEGRATE DIVERSE TASK,COORDINATE THE ACTIVITY OF DIFFERENT

MANAGEMENT DEPARTMENTS

RESPOSIBLE FOR THE WELFARWE AND SURVIVAL OF THE

ORGANISATION

,ANALYSIS THE BUSINESS ENVIRONMENT,

DESIGNATION FORMULATE THE POLICIES

RESPONSIBLE FOR THE ACTIVITES OF THE ORG.

CEO,CFO,MANAGING DIRECTOR.CHAIRMAN,VICE PRECIDENT

MIDDLE LEVEL INTERPRET THE POLICIES

MANAGEMENT
ENSURE THAT THEIR DEPARTMENTS HAS THE NECESSARY PERSONNEL

ASSIGN NECSSARY DUTIESAND RESPONSIBILITIES,

MOTIVATE THEM

CO.OPERART WITH OTHER DEPARTMENTS.

PRODUCTION MANAGER ,MARKETING MANAGER,OPERATIONAL

MANAGER,PLANT SUPERINTENDENT,REGIONAL
MANAGER,DIVISIONAL MANAGER.
LOWER LEVEL INTERCT WITH ACTUAL WORK FORCE AND PASS ON THE
MANAGEMENT INSTRUCTION.

SUPERVISOR DIRECTLY OVERSEE THE EFFORTS OF THE WORKFORCE.

THROUGH THEIR EFFORTS QUALITY AND QUANTITY OF OUTPUT IS

MAINTAINED.

ENSURE THE SAFETY STANDARDS ARE MAINTAINED.

FOREMAN,SUPERVISORS