NATURE AND SIGNIFICANCE OF MANAGEMENT

Successful organisations do not achieve their goals by chance but by

following a deliberate process called management.
Management is a process of getting things done with the aim of
achieving goals effectively and efficiently.

The concept of Management insists on three terms:

1. Process: Process refers to series or sequence of steps, management is
a process because it performs series of functions to get the things
done. These functions are planning organising, staffing, directing and
controlling.

2. Effectiveness: It is concerned with doing the right task, completing

activities or achieving the goal on time.

3. Efficiency: It refers to do the task in the right way.

RELATION BETWEEN EFFICIENCY AND EFFECTIVENESS

Effectiveness and efficiency are equally important as being effective

means completing the task but it is not enough to just complete the
task, Organisation it must be done correctly without any wastage of
resources. Effectiveness and efficiency are the two sides of a same
coin, one without other is of no use.

FEATURES OF MANAGEMENT
1. Management is Goal-oriented Process. Management always aims at
achieving the organisational objectives. The functions and activities of
manager lead to the achievement of organisational objectives.

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2. Management is Pervasive: Managerial activities are performed in all
types of organisations, in all departments and at all levels.

3. Management is multi dimension :Management does not mean one

single activity includes three main activities:
(a) Management of work
(b) Management of people.
(c) Management of operations
• Management of work. All organisations are set up to perform
some task or goal. Management activities aim at achieving goals to
be accomplished.
• Management of people: People refer to human resources and
human resources are the most important assets of an
organisation. Management has to get task accomplished through
people by making their strength effective and their weakness
irrelevant.
Managing people has two dimensions:
• Taking care of employee's individual needs.
• Taking care of group of people.
• Management of operations: Operations refers to activities of
production cycle such as buying inputs, converting them into semi-
finished goods, finished goods
4. Management is a Continuous Process: Management is a continuous
or never ending function. All the functions of management are
performed continuously, for example, planning, organising, staffing,
directing and controlling are performed by all the managers all the
time.

5. Management is a Group Activity: Management always refers to a

group of people involved in managerial activities.
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6. Management is a Dynamic Function: Management has to make
changes in goal, objectives and other activities according to changes
taking place in the environment.

7. Intangible: Management function cannot be physically seen but its

presence Can be felt.

OBJECTIVES OF MANAGEMENT
Objectives are the ends towards which the activities of an organisation
are directed
objectives of an organisation can be of three major categories:
1. Organisational objectives
2. Social objectives
3. Personal objectives
The three important organisational objectives of a manager are:
1) Survival: The basic purpose of every organisation is to survive and
exist in the competitive market for a long period of time and it is
possible only when it is able to cover its cost.

2) Profit: The most important objective of every organisation is

earning profit. Profit is essential for survival, growth and expansion
of business. Profit is the reward given to businessman for bearing
risk.

3) Growth: Business organisation must grow and expand their

activities. The success of any organisation is measured by the
growth rate and growth is measured in terms of sales, number of
branches, number of products, number of employees, etc.

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 SOCIAL OBJECTIVES
Social objectives of the organisations deal with the commitment of the
organisation towards the society.

The major social objectives of organisations are:

1.Supply of quality products at reasonable prices.
2.Contribution towards desirable civic activities.
3.Generation of economic wealth.
4.Generation of employment opportunities.
5.Financial support to community.
6.Organising educational, health and vocational training programmes.
7.Participating actively in social service projects of Government and
NGOs.
8.Using environmental friendly methods of productions.
9.Providing employment opportunities to weaker section of society.

PERSONAL OBJECTIVES / HUMAN OBJECTIVES / INDIVIDUAL

OBJECTIVES
Individual objectives are related to the employees of the organisation.
The main individual objectives of management are:
1. Competitive salary to fulfil financial needs of employees.
2. Promotion, training, personal growth and development of
employees to fulfil needs of employees.
3. Peer recognition, self-respect, respect for colleague to fulfil social
need.
4. Good and healthy working conditions for safety of employees

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 IMPORTANCE OF MANAGEMENT

1. Management helps in achieving group goal: Management tries to

integrate the objectives of individuals along with organisational goal.
Management directs the efforts of all the individuals in the common
direction of achieving organisational goal.
2. Management increases efficiency: Managers try to reduce the cost
and improve productivity with minimum wastage of resources.
Management insists on efficiency and effectiveness in the work
through planning, organising, staffing, directing and controlling.
3. Management creates a dynamic organisation: Organisations have to
survive in dynamic environment so managers keep making changes in
the organisation to match the environmental changes.

4. Management helps in achieving personal objectives: An efficient

manager is the one who brings maximum freedom for employer as
well as employees.

5. Management helps in development of society: Efficient management

always has multiple objectives, they give due importance to social
obligations, towards different groups of people such as employees,
customers, suppliers, etc.

NATURE OF MANAGEMENT
1. MANAGEMENT AS A SCIENCE: Science can be defined as a systematic
and organised body of knowledge based on logically observed
findings, facts and events
features of science are:
1. Systematic body of knowledge: In science organised and systematic
study material is available which is used to acquire the knowledge of
science. So, first feature of science is present in management.

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2. Principles are based on experimentation: Scientific principles are
developed through observations and then tested through repeated
experiments. The management principles are also developed
through observation and experiments but since management deal
with human being and human behaviour cannot be accurately
predicted. This feature of science is partially present.
3. Universal validity: Scientific principles have universal application
and validity. Management principles are not exact like scientific
principles. They have to be modified according to the given situation.
So this feature of science is not present in management.
[

2. MANAGEMENT AS AN ART: Art can be defined as systematic body of

knowledge which. requires skill, creativity and practice to get
perfection.
The main features of art are:
1. Systematic body of knowledge: In every art there is systematic and
organised study material available to acquire theoretical knowledge
of the art. In management also there is systematic and organised
body of knowledge available 10. So, this feature of art is present in
management also.
2. Personalised application: In the field of art only theoretical
knowledge is not enough. Every artist must have personal skill and
creativity to apply that knowledge. In management also all
managers learn same management theories and principles. So, this
feature of art is also present in management.

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 3. Based on practice and creativity: The artist requires regular
practice of art to become more fine and perfect. Without practice
artists lose their perfection. Art requires creative practice, i.e., artist
must add his creativity to the theoretical knowledge he has learned.
Same way with experience managers also improve their managerial
skills and efficiency. So this feature of art is also present in
management.

3. MANAGEMENT AS A PROFESSIONAL: Profession can be defined as an

occupation backed by specialised knowledge and training, in which
entry is restricted.
The main features of profession are:
1. Well-defined body of knowledge: In every profession there is
practice of systematic body of knowledge which helps the
professionals to gain specialised knowledge of that profession. In
case of management also there is availability of systematic body of
knowledge. So presently this feature of profession is present in
management also.
2. Restricted entry: The entry to a profession is restricted through an
examination or degree. Whereas there is no legal restriction on
appointment of a manager, anyone can become a manager
irrespective of the educational qualification. But now many
companies prefer to appoint managers only with MBA degree. So,
presently this feature of profession is not present in management
3. Presence of professional associations. For all the professions,
special associations are established and every professional has to
get himself registered with his association before practising that
profession. In case of management various management
associations are set up at national and international levels. So,

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 presently this feature of profession is not present in management
but very soon it will be included and get statutory backing also.

4. Existence of ethical codes: For every profession there are set of

ethical codes fixed by professional organisations and are binding on
all the professionals of that profession. In case of management
there is force on ethical behaviour of managers. So, presently this
feature of profession is not present in management.

5. Service motive: The basic motive of every profession is to serve the

clients with dedication. Whereas basic purpose of management is
achievement of management goal.So presently this feature of
profession is not present but very soon it will be included.

LEVELS OF MANAGEMENT
1. Top level management.
2. Middle level management.
3. Supervisory level, operational or lowe level management

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1. TOP LEVEL MANAGEMENT: It includes group of crucial persons
essential for leading and directing the efforts of other people. The
managers working at this level have maximum authority.

Main functions of top level management are:

1. Determining the objectives of the enterprise: The top level
managers formulate the main objectives of the organisation. They
form long term as well as short term objectives.
2. Framing of plans and policies: The top level managers also frame
the plans and policies to achieve the set objectives.
3. Organising activities: It is to be performed by persons working at
middle level. The top-level management assigns jobs to different
individuals working at middle level.
4. Assembling all the resources such as finance, fixed assets, etc: The
top level management arranges all the finance required to carry on
day to day activities. They buy fixed assets to carry on activities in
the organisation.

5. Responsible for welfare and survival of the organisation: Top level

is responsible for the survival and growth of the organisation. They
make plan to run the organisation smoothly and successfully.

2. MIDDLE LEVEL MANAGEMENT: They act as a linking pin between top

and lower-level management. They also exercise the functions of top
level for their department.
Main functions of middle level management are:
1. Interpretation of policies framed by top management to lower
level: Middle management act as linking pin between top level and
lower level management.

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 2. Organising the activities of their department for executing the
plans and policies: Generally middle level managers are the head
of some department. So they organise all the resources and
activities of their department.

3. Finding out or selecting and appointing the required employees

for their department: The middle level management selects and
appoints employees of their department.

4. Motivating the persons to perform to their best ability: The middle

level managers offer various incentives to employees so that they
get motivated and perform to their best ability
3. SUPERVISORY LEVEL / LOWER LEVEL / OPERATIONAL LEVEL:
Managers of this group actually perform the activities according to the
plans of top and middle level of management. The authority is limited.
Functions of lower-level management are:

1. Representing the problems of workers.

2. Maintaining good working conditions and developing healthy

relations between superior and subordinate.

3. Looking to safety of workers

4. Minimising the wastage of materials and maintaining safety

standards.

FOCUS OF MANAGEMENT FUNCTION AT DIFFERENT LEVELS:

1. Top level concentrate on planning and organising.

2. Middle level keeps their focus on staffing and coordination.

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3. Lower-level focus on directing and controlling as they give direction to
workers.

FUNCTIONS OF MANAGEMENT

1. Planning: Planning can be defined as "thinking in advance what is to

be done, when it is to be done, how it is to be done and by whom it
should be done.
2. Organising: Identifying and grouping different activities in the
organisation and bringing together the physical, financial and human
resources to establish most productive relations for the achievement
of specific goal of organisation.
3. Staffing: Staffing consists of manpower planning, recruitment,
selection, training, compensation, promotion and maintenance of
managerial personnel. Staffing involves, finding the right person for
the right job having the right qualification, doing the right job at the
right time.

4. Directing: Directing means instructing , inspiring , guiding and

motivating employees in the organisations.

5. Controlling: Controlling function can be defined as comparison of

actual performance with the planned performance. If there is any
difference or deviation then managers try to find out the reasons of
deviation and suggest corrective measures to come on the path of
plan.

COORDINATION

The process by which manager synchronises the activities of different

departments is known as coordination.

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 COORDINATION THE ESSENCE OL MANAGEMENT

1. Coordination is needed to perform all the functions of management:

The process of coordination begins at planning stage when top
management plans for whole organisation. Based on plans then
organisational structure is developed. Staff is selected and trained as
per organisation structure and plan. To ensure right execution of plan
directions are given. Controlling ensure no difference between plan
and actual performance.
2. Coordination is required at all the levels:

1. Top level requires coordination to integrate all the activities of

organisation.
2. Coordination is required at middle level to balance the activities of
different departments.
3. Lower level requires coordination to integrate the activities of
workers.
3. Coordination is the most important function of an organisation: Any
company which fails to coordinate its activities cannot survive and
run successfully for a long period of time. It is through the process of
coordination that a manager ensures orderly arrangement of
individual and group efforts in realisation of common objectives.

FEATURES OF COORDINATION

1. Coordination integrates group efforts. The concept of coordination

always applies to group efforts. There is no need for coordination
when only single individual is working.
2. Ensure unity of efforts: The main aim of every manager is to
coordinate the activities and functions of all individuals to common
goal.
[[[[[

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3. Continuous process: Coordination is a non-ending function. It is a
continuous function. The managers work continuously to achieve
coordination and maintain coordination because without coordination
companies cannot function efficiently.
4. Coordination is a pervasive function: Coordination is a universal
function, it is required at all the levels, in all the departments.

5. Coordination is the responsibility of all managers: Coordination is not

the task of only top level managers but managers working at different
levels try to coordinate the activities of organisation.

IMPORTANCE OF COORDINATION/NEED OF COORDINATION

1. Growth in size: The need of coordination increases with the increase

in size of organisation because in large organisation there are more
number of persons working, each individual has his own needs and
objectives, so there is more need to bring together or synchronise the
efforts of these employees towards common goal.

2. Functional differentiation: The functions of an organisation are

divided into different departments, sections or divisions and each
department works in isolation by giving more importance to its
objective. So, coordination is needed to minimise the differences
among departments.

3. Specialisation: In large and modem organisation there is high degree

of specialisation and the specialists or experts. There are number of
specialists working in the organisation. If all of them work in their own
way it will result in chaos and confusion. So, there is need to
coordinate the activities of all the specialists in a common direction
and get maximum benefit of these specialists.

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