NOTES

NATURE AND SIGNIFICATION

OF MANAGEMENT

Management
Is an art of getting things done through others with the main
objective of achieving organizational goals effectively and efficiently.
The nature of management is not restricted to business organization
only, but it is necessary for all kinds of organization in order to work
effectively and efficiently

Effectiveness It refers to completing the task on time.

Efficiently It refers to fully utilization of resources

Under management, the manager always tries to achieve the goal both
effectively (on time) and efficiently (with minimum wastage)

Features of Management

Aims at achieving goal

The first and foremost feature of management is that it is a goal
oriented process, that is the functions and activities of a manager
always aims at achieving the organizational goals.

Management is pervasive(required everywhere)

It is necessary for all organization to manage their activities in order
to work smoothly and efficiently. No organization whether small or
big, can survive without proper and efficient management.

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 NOTES
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Intangible Process
It is true that management is not a thing which can be seen or
touched but the existence of efficient management in an organization
can be easily felt (by orderly and coordinated working environment)

Management is continuous process

In order to manage the organization, the manager has to work
continuously.
The work of a manager is a never ending process, it can only ends
with the end of organization.

Management is a dynamic(regular changing) function

As the business environment is regularly changing, so the
organization has to change his objective on a regular basis in order to
get maximum possible output. i.e. there is no cut and paste method
which can applied everywhere.

Combining effectiveness with efficiency

An organization can not solely depends on any of the above, so the
most important task of a manager is to complete task on time
(effective) with maximum possible utilization of resources
(efficiency).

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Management is multidimensional
Management does not mean a single activity, but it includes three
main activities which are as follows :

1.Management of Work
All the activities of an organization are directed towards the
achievement of organizational goal. The mangers always try to
synchronize the activities in order to get maximum possible output
(without wastage of resources)

2.Management of people
Employees are the blood of an organization, the dedication of
workers towards the organization plays the key role in its success.
Hence, they should be handle with care (that is taking care of)
Taking care of their individual needs
Take care of units needs (groups)

3.Management of Operations
Mixing up of Management of work with management of people
It refers to combining the work with people, that is deciding what
work is to be done, how it is to be done and by whom.

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Management is a Composite Process

It consist of series of steps which must be done in a predetermined
sequence (as they are interdependent on each other)
Planning
Organizing
Staffing FUNCTIONS OF MANAGEMENT
Directing
Controlling

Objectives of Management
Objective refers to the goals towards which the activities of the
organization are directed.
Basically the management has 3 types of objectives, which are as
follows

1.Organizational objective
The objectives which aims towards the growth and prosperity of the
organization are termed to be as organizational objectives
Basically there are 3 types of objectives:- ( Sequence is important )

Survival The first and foremost objective of a newly build

organization is to survive in the competitive market.
The managers try to do every possible thing which helps the firm to
survive in the market.
Example Jio has given free data and calling facility to its consumers,
when it makes his debut in the market in order to survive.

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Profit Once the organization survives in the market, then its next and
prime objective is to start earning profit (the basic reason due to
which the organization comes in existence )

Growth After earning considerable amount of profit, the next

objective is to grow the firm to its maximum possible limit and to
expand its operations and reach.

2.Social Objective
As the society is the warehouse of resources for the organization, so it
is the duty of an organization to do something for the welfare of
society too.
The major work or objective of the organization is as follows
Standard quality of product
Generation of employment opportunities
Use of environment friendly methods of production
Donate some amount in charity

3.Personal Objective
Since employees are the main component of an organization and a
motivated employee is a power bank which leads to success
So the organization must do something to make their employees
motivated
Competitive salary
Healthy working environment
Regular training

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Importance of management

Management creates dynamic environment

The organization has to survive in a dynamic (regular changing) world
so it has adopt changes whenever required. An efficient manager
always tries to motivate the employees in order to survive and
change according to the need and requirement of the market.

Reduces wastage of resources

An efficient manager always tries to reduce the wastage of resources
to the maximum possible extent, in order to make the organization
most efficient to gain maximum returns.

Directs towards goals

The efforts and activities of management are directed towards the
achievement of organizational goal effectively (work on time) and
efficiently (without much wastage of resources).

Helps in achieving personal objective

An effective management always tries to bring organizational and
personal objective in one path only, i.e. in same direction. So that
personal objective can also be fulfilled and an employee can work
with his greatest efficiency.

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Brings Harmony to work

As ‘no two locks can have same key’
Similarly, no two minds can have exact same thinking.
But it is necessary of the welfare of the organization that all the
employees should work in similar manner.
By giving regular and proper directions, management brings
uniformity in actions of the employees.

Helps in development of the society

As we had studies above that management had multiple objectives,
i.e. they also give due importance and attention for the welfare and
development of society so that it can improves his image and market
share.

Levels of Management
In an organization, management works at every stage. But in order to
be more specific, management has 3 levels which are as follows

1. Top Level Management

2. Middle level Management
3. Lower level Management

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1.Top level Management
It includes the group of persons who are basically the image of the
organization
It consist of persons which hare essential for leading and directing the
efforts of all the individuals
Ex Chairman, Board of directors, CEO (Chief Executive officer), etc

Main functions
Deciding objectives
Making policies
Arranging finance and other resources
Connect with outside world on behalf of the organization, etc.

2.Middle level Management

They are the linking pen between top and lower level management.
They are basically responsible for executing the plans made by top
level management to the lower level management
It consist of : heads of every department, i.e. sales head, production
head etc.

Main functions
Making plans for their respective department
Interpretation of plans and policies made by top level management
to lower level
Making coordination with other departments
Motivating the employees of their departments, etc.

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3.Lower level management
Managers of this group had to perform the work according to the
plans and policies made by top and middle level managers.
They are the persons who are responsible for the quality and
quantity of product.
(they are managers not workers, they instruct workers)
It consists : Superintendent, Supervisors, clerk etc

Main Functions
Expressing the problems of workers to middle level management
Maintains quality of product
Tries to reduce wastage of resources
Responsible for the safety of employees
Direct interaction with the workers, etc.

Nature of Management
Management is termed to be as both Art and science
But, from the past few years there has been a debate upon the
nature of management
Whether it is an art or science????
As, it contains many features of art such as
Existence of theoretical Knowledge
Personalised application
Based upon practice and creativity

Also, it contains few features of science, such as

Systematic body of language
Principals are based upon practice and repeated experiment

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Conclusion Management has some feature of science, but contains
almost every feature of being an art
So, it is right to say that management is an art of getting things done
by others, with the aims of achieving organizational goals.

Management as a profession
Profession can be defined as an occupation backed up by specialized
knowledge and training, in which entry is restricted.
Example Doctor, CA etc.
Presently, management can’t be treated as profession because it
lacks many feature of profession, which are as follows
Restricted entry(not restricted under management)
Presence of professional association(not required under
management)
Service motive(management is not at all a service motive)

But as the market is regularly changing, we can easily predict that in

future, management is going to be a profession for sure.

COORDINATION
Coordination refers to bringing together the activities and resources
of organization and bringing harmony to them.
It is not only a function of management but it is treated to be an
essence of management
It is a necessary function of every manager in the organization as
various departments who are working separately must be integrated
in order to get the required result.

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Coordination is an essence of management as

It is required to perform all the functions of management.
Required at all the levels (pervasive function)
Necessary function for management

Features/Nature of Coordination

Continuous Process Coordinating is not a single time activity it

has to be done on a continuous basis.
Since the activities of an organization must be managed at every
particular level so it is to be done on a regular basis.

Pervasive Function Since the coordination is the essence of

management, so it must be required at every level of
management to get the efforts of the individual integrated and
committed towards the organization.

Integrates group efforts Coordination always tries to integrate

the efforts of group of persons in one direction in order to
achieve the desired objective of the organization.
Also coordination applies on group of persons only, there is no need
of coordination when one individual is available.

A responsibility Coordination is not only a function, but it’s the

responsibility of the managers of every level in the organization.
It is to be done by managers at every level.

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Importance of Coordination

Size of organization
As the size of organization increases, the need and importance of
coordination also increases.
As the increase in size of organization increases its number of
employees, which means more different minds are needed to be
coordinated.

Specialization
When number of specialist are employed in one organization then the
need of coordination also maximize, as each specialist work in the
manner he thinks best. So in order to let them work in the favor of
organization, the efforts must be coordinated.

Functional Differentiation
Every organization is divided into various departments and each
department focus on its own objective only, but for the welfare of the
organization they all must be united.

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