Management –An

Introduction, Definition & its

Nature
Lecture- 1
In this Lecture, we will discuss about

 What is Management?
 Definition- Management
 Concept of Management-
Management as a Group
Management as a Process
Management as an Activity

 Nature/characteristics of Management
What is Management?
 Management acts as a guide to a group of people
working in the organization and coordinating their
efforts, towards the attainment of the common
objective.
 In other words, it is concerned with optimally using
5M’s, i.e. men, machine, material, money and
methods and, this is possible only when there
proper direction, coordination and integration of the
processes and activities, to achieve the desired
results.
 It is an act of creating and maintaining such
a business environment wherein the members of the
organization can work together, and achieve business
objectives efficiently and effectively.
Definition- Management
 The definition of management is the way something is
handled, careful treatment, supervising skills, or those in
charge of a business or group. ...
 An example of management is how a skillful supervisor
handles a difficult situation. An example of management is
the CEO of an organization.
Some of the common definition of management given by famous writers and
thinkers are:
 According to Harold Koontz and Heinz Weihrich, Management is the
process of designing and maintaining an environment in which
individuals, working together in groups, efficiently accomplish selected
aims.
 According to Robert L. Trewelly and M. Gene Newport, Management is
defined as the process of planning, organising, actuating and controlling an
organisation’s operations in order to achieve coordination of the human
and material resources essential in the effective and efficient attainment of
objectives.
 According to Kreitner, “Management is the process of working with and
through others to effectively achieve organizational objectives by
efficiently using limited resources in the changing environment.
 According to George R Terry, Management consists of planning,
organising, actuating and controlling, performed to determine and
accomplish the objectives by the use of people and resources.
So Management can be defined as a process of getting things done with
the aim of achieving goals effectively and efficiently. Some important
terms in this definition are:
▶ Process: Process means the primary functions or activities that
management performs to get things done. These functions are
planning, organising, staffing, directing and controlling.
▶ Effectiveness: Effectiveness is concerned with the end result. It
basically means finishing the given task. Thus Effectiveness in
management is concerned with doing the right task, completing
activities and achieving goals
▶ Efficient: Efficiency means doing the task correctly and with
minimum cost. Management is concerned with the efficient use of
input resources which ultimately reduce costs and lead to higher
profits.
It is important for management to achieve goals (effectiveness) with
minimum resources i.e., as efficiently as possible while maintaining a
balance between effectiveness and efficiency.
▶
Concept Of Management

 Management as an Activity
 Management as a Group
 Management as a Process
Management as an Activity
Like various other activities performed by human beings such
as writing, playing, eating, cooking etc, management is also
an activity because a manager is one who accomplishes the
objectives by directing the efforts of others. According to
Koontz, “Management is what a manager does”.

 It is the process of recording the day to day doings of an

employee, in an order in which they are done, all while
labeling their activity correctly.

 It is an essential key to the success of a firm as it helps to

control the direction of your business and increase efficiency.

 Managing activities would help the workers prioritize their

daily activities.
Management as a Process
As a process, management refers to a series of inter-related functions. It is the process
by which management creates, operates and directs purposive organization through
systematic, coordinated and co-operated human efforts,
According to George R. Terry, “Management is a distinct process consisting of
planning, organizing, actuating and controlling, performed to determine and
accomplish stated objective by the use of human beings and other resources”. As a
process, management consists of three aspects:
▶ Management is a 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.
▶ Management is an integrating process - Management undertakes the job of
bringing together human physical and financial resources so as to achieve
organizational purpose. Therefore, is an important function to bring harmony
between various factors.
▶ Management is a continuous process - It is a never ending process. It is
concerned with constantly identifying the problem and solving them by taking
adequate steps. It is an on-going process.
Management as a Group
 Management as a group refers to all those persons who
perform the task of managing an enterprise. When we say
that management of ABC & Co. is good, we are referring to a
group of people those who are managing.
 Thus as a group technically speaking, management will
include all managers from chief executive to the first - line
managers (lower-level managers). But in common practice
management includes only top management i.e. Chief
Executive, Chairman, General Manager, Board of Directors etc.
 In other words, those who are concerned with making
important decisions, these persons enjoy the authorities to
use resources to accomplish organizational objectives & also
responsibility to for their efficient utilization.
Nature of Management
Nature of Management
▶ Universal: All the organizations, whether it is profit-making or not, they require
management, for managing their activities. Hence it is universal in nature.
▶ Goal-Oriented: Every organization is set up with a predetermined objective and
management helps in reaching those goals timely, and smoothly.
▶ Continuous Process: It is an ongoing process which tends to persist as long as the
organization exists. It is required in every sphere of the organization whether it is
production, human resource, finance or marketing.
▶ Multi-dimensional: Management is not confined to the administration of people only, but it
also manages work, processes and operations, which makes it a multi-disciplinary activity.
▶ Group activity: An organization consists of various members who have different needs,
expectations and beliefs. Every person joins the organization with a different motive, but
after becoming a part of the organization they work for achieving the same goal.
▶ Dynamic function: An organization exists in a business environment that has various factors
like social, political, legal, technological and economic. A slight change in any of these factors
will affect the organization’s growth and performance. So, to overcome these changes
management formulates strategies and implements them.
▶ Intangible force: Management can neither be seen nor touched but one can feel its existence,
in the way the organization functions.