CHAPTER

Concept and Nature of

1 Management

LEARNINGOUTCOMES
After studying this chapter, the student shall be able to:
Explain the Concept of Management
Define Management as a Process and as a Discipline
Highlight the Nature and Characteristics of Management
Analyse the Need and Importance of Management
Differentiate between Management and Administration
Explain Management as a Science and an Art
Explain Management as a Profession

An organisation is commonly viewed as a group of people contributing their efforts towards certain
common objectives. The process by which organisational objectives are achieved is called Management.
Thus management is an essential part of any goal oriented activity. Every organisation requires
planning of activities, organisation of resources, establishment of communication system, leading
and motivation of people, and control of operations for the realisation of its goals or objectives. This
chapter is amodest attempt to present the meaning, objectives and basic nature of management
and to describe management as ascience, an art and a profession.

1.1 Definition of Management

Traditional authors define
The term 'management' has been defined differently by different authors.
of accomplishing
it as an art of getting things done whereas modern authors define it as a process
in practice, the
certain obiectives through the utilisation of human and other resources. However,
company. These
'management' is used to represent agroup of managers, i.e., top management of a
viewpoints have been discussed below.

1.1.1 Management as an Art of Getting Things Done

others. This is the
Traditionally, management is defined as an art of getting things done through
known as 'Manager'.
simplest definition of management. The person who directs the efforts of others is
employees.
He accomplishes the goals of the organisation through and with the help of operative

1.1
1.2 MANAGEMENT PROCESS AND ORGANISATIONAL BEHAVIOUD

Box 1: Managenment: Art of Getting Things Done

"Management is the art of getting things done through people." -Mary Parker Follett
"Management consists of getting things done through other.. Amanager is one who accomplishes
organisational objectives by directing the efforts of others". C.S. George
The traditional viewpoint about management is considered inappropriate in the present-day
environment where workers are educated and have higher level of aspirations. It has been criticized
on the following grounds :
() This definition is vague as it does not give the functions which a manager has to perform
to get results from others.
(i) It gives the impression of the manipulative character of the practice of management.
(ii) The employees are merely treated as means for getting results. In other words, their
position is like a cog in the wheel.
(iv) The needs of the workers have been ignored. The workers are supposed to work like
machines.
(v) It ignores the needs of the workers and does not offer them human treatment. The
present-day workers are not motivated by wages or economic rewards only. They expect
the satisfaction of their social and psychological needs by the organisation.
Management is certainly more than just getting things done through others. It may be viewed
as a technique of getting things done through others by satisfying their needs and providing them
opportunities for growth and advancement.
1.1.2 Management as Effective Utilisation of Resources
All organisations use some combination of human, financial, physical and information resources
to achieve their goals. Human resources include managers and workers, financial resources are the
capital used by the organisation to finance operations, physical resources include raw materials,
office and production facilities, equipment, etc. and information resources are usable data to make
effective decisions. These resources are utilised by the management to achieve organisational goals
objectives such as profitability, social responsibility, growth and public image.
Management is the process of utilisation of organisational resources with the aim of
achieving organisational goals effectively and efficiently. Utilisation of human, financial, physical
and information resources in an effective and efficient manner is at the core of management. This
is done by the management by performing the functions of planning, organising, staffing, dìrecting
and controlling. In other words, management involves planning, organising, staffing, directing and
controlling the activities of the enterprise for the effective and efficient utilisation of resources to
achieve organisational goals.

Box 2: Management: Effective Utilisation of Resources

"Management is the process of working with and through others to effectively achieve organisational
objectives by efficiently utilising the limited resources in the changing enironment."Kreitner
"Management entails the utilisation of human efforts and material resources towards the achievement
of organisational objectives.". -B.M. Richman
 CONCEPT AND NATURE OF MANAGEMENT 1.3

The basic elements of the above definitions are discussed below :

) Process. The term 'process' in the definition means the primary functions or activities
that management performs to get things done. These functions are planning, organising,
staffing, directing and controlling which we will discuss later in the chapter.
(i) Effectiveness. Being effective or doing work effectively means finishing the given task.
Eftectiveness in management is concerned with doing the right things, completing activities
and achieving goals. In other words, it is concerned with the end result of an activity.
(ii) Efficiency. It means optimum utilisation of resources in performing the given task. It
SIgnifies the relationship between inputs and outputs. Efficiencywould be greater if less
inputs are used to produce the required amount of goods or if more goods are produced
with the given inputs.
(m) Goal Orientation. The modern concept of management insists that all the activities of
managers must be directed towards the achievement of organisational goals.
Efectiveness vs. Efficiency. These two terms are different, but interrelated. For management,
it is important to be both effective and efficient. Effectiveness and efficiency are two sides of the
same coin. But these two aspects need to be balance and management at times, has to compromise
with efficiency. For example, it is easier to be effective and ignore efficiency, i.e., complete the
given task but at a high cost. Suppose, a company has two units to produce LED TVS and each has
a target of 4,000 units per month. If the first unit achieves this target at the cost ? 6,000 per unit
as compared to the second unit which achieves the target at the cost of 6,500 per unit, the first
unit would be considered more efficient. However, both the units are effective as they are able to
achieve the given targets.
For the long-term survivaland growth of a business, its management must try to achieve goals
(ie.,effectiveness) with the use of minimum resources (i.e., efficiency) and thus maintain a balance
between effectiveness and efficiency.

1.2 Managenment as a Process

As a process, management refers to a series of inter-related functions or elements to achieve
organisational objectives through the effective and eficient utilisation of organisational resources.
It involves five functions, namely, (a) planning, (b) organising, (c) staffing, (d) directing or leading, and
(e) controlling. As shown in Fig. 1.1 (on next page), it is through the performance of these functions
that management is able to effectively and efficiently utilise human, financial, physical, technological
and information resources to produce goods and services required by the society.
Box 3: Management as aProcess
"To manage is to forecast and plan, to organíse, to command, to coordinate and to control."
Henrl Fayol
"Management is the handling of all resources through the process of planning, organising, directing
Gary Dessler
and controlling to attain stated objectives."
"Management is a distinct process consisting of planning, organising, actuating (directing) and
controlling, performed todetermine and accomplish stated objectives with the use of human beings
and other resources." George R. Terry
1.4 MANAGEMENT PROCESS AND ORGANISATIONAL
Management is called a process because it comprises a series of interrelated
lead to the
BEHAVIOUR
functions that
achievement of certain objectives. These functions include planning, organising,
directing and controling. Theoretical a manager reaches the last step, viz., control, his job
end here. He will again start with planning on the basis of his past experience and does not
learning
staf ing,
projection about the future. But in practice, one can't say that a manager will organise and his
the job of planning is over or will direct only when the stage of organising is complete. Inonly when
a manager has to perform these functions simultaneously to achieve the desired
management is a never-ending process. objectives.praThus,
ctice,
Planning Directing

Resources:
Human
Financial Organisational
Physical Objections
Technological
Information
Staffing

Organising Controlling

Fig. 1.1. Overview of Management Process.

As a process, management has two broad features :
() Management is a continuous process: It does not stop anywhere. When a manager reaches
the last step, viz., control, his job does not end here. Actually, he will again start with planning
on the basis of his past observations and experience and his projection about the future.
(i1) Thefunctions of management are inter-dependent and inter-related : Each function blends into
the other functions and affects their performance and is also affected by the other functions.
There is an interaction between the functions of management. Moreover, in actual practice,
there is no rigid sequence of the functions of management. Every manager has to perform
these functions simultaneously to achieve the objectives of his unit.

Box 4: Elements or Functions of Management

(0) Planning : It means determining the objectives of the unit or activity. It also involves deciding
in advance as to what is to be done, how and when.
(1) Organising : It refers to identification of activities to be carried out, grouping of similar activities
and creation of departments. Organisation also leads to creation of authority and responsibility
relationships throughout the enterprise.
(Gi) Staffing : It involves manpower planning employment of personnel and their training, appraisal,
remuneratíon, etc.
(v) Directing : It is a very broad function concerned with the inter-personal relations. It includes
communication with subordinates, providing them leadership and also motivating them.
() Controlling : It refers to comparing the actual performance with the plans or standards.
Corrective steps are taken when the actual performance is not upto the mark.
 CONCEPT AND NATURE OF MANAGEMENT 1.5

13Management as a Group
Management has become a very common term. People use this term to denote a team or group
of managers who run an organisation. Management of an enterprise is represented by the group
of people which performs managerial functions for the accomplishment of its goals. These people
are individually known as Managers. In other words, a manager is a person who performs the
managerial functions of planning, organising, staffing,directing and controlling and is a member of
the management team of the organisation. Used in this sense, management of a company includes
allthe managers from the chief executive to the first line supervisor.
However, in practice, the term 'management' is used to imply the top management of a
company. When we say that management of lNFOSYSIS or WIPR is very efficient, we imply the
efficiency of the company's top executives.

14 Management as a Discipline
Management has been widely recognised as a discipline or a distinct field of study. It is taught as
a specialised branch of knowledge in educational institutions. As a field of study, the management
discipline consists ofaspecific body of knowledge including management concepts, principles, theories,
techniques and practices. Management is amulti-disciplinary discipline as has drawn heavily from
anthropology, psychology, sociologyand several other fields.
Management theories and approaches are based on knowledge drawn from diverse disciplines.
For instance, classical theory is based on military sciences and industrial engineering. Neo classical
and behavioural science approaches were developed in association with psychologists, sociologists
and anthropologists, systems approach is based on general system theory drawn from Biology.
Management is often called an eclectic discipline. The term 'eclectic' means consisting of
something drawn from a broad and diverse range of sources. It implies that the discipline of
management is inclusive and all embracing. It is diversified and multi-disciplinary. It picks up relevant
concepts and techniques from a broad range of disciplines to enable the students to be conversant
with the modern thoughts. Further, the field of management is ever expanding as it can borrow latest
concepts from multifarious sources and integrate them with the existing management knowledge.
Thus, it is allembracing and inclusive and can equip the managers to deal with contemporary issues
and problems.

1.5Nature and Characteristics of Management

To understand the nature of management, it is essential to know the features or characteristics of
management. The basic characteristics of management are as follows :
1. Management is Goal-Oriented. The purpose of management is to achieve the goals of the
organisation. For instance, management of a business aims at satisfaction of customers,
earning of profits and increasing the goodwill and image of the business. There is no
need of management if there are no pre-determined goals or objectives. The success
of management is judged by the extent to which organisational goals are achieved. The
basic purp0se of management is to achieve maximum efficiency of the organisation.
 MANAGEMENT PROCESS AND ORGANISATIONAL BEHAVIOUR
1.6
Management is a Contihuous process. ie ibe
2. Management is a Continuous Process.
again. Management doeS not stop anywhere. It is an
functions are repeated time and
execution of plans through oreanicin
ongoing process of planning the activities and
staffing, directing and controlling.
management is the coordination
2 Management is a Coordinative Force. The essence of
pertormance. It brings together
or integration of human and other resources for effective
the efficient use of
physical and financial resources and leads the human resources for
divided into varimue
non-human resources. All these resources are properly organised and
Management acts as a
work-units for the purpose of achieving greater coordination.
catalyticagent in getting maximum productivity.
force.
4. Management is an Intangible Force. Management has been called the unseen
Its presence is evident by the results of its efforts--orderliness, informed emplovees.
buoyant spirit and higher output. Thus, existence of management is felt by looking at
the results of its efforts. People often comment on the effectiveness (or ineffectiveness)
of management on the basis of the end results although they cannot observe it during
operation.
5. Management is a part of Group Effort. Management is an integral part of any group
activity. It is essential to undertake any organised activity. It involves the use of group
efforts in the pursuit of well defined goals or objectives. It cannot exist independent of
the group or organisation it manages.
6. Management accomplishes Results through the Cooperation of Others. The managers
cannot do everything themselves. They must have the necessary ability and skills to get
work accomplished through the efforts of others. They must motivate the subordinates
for the accomplishment of the tasks assigned to them. It is through motivation that
managers can influence the behaviour of their subordinates.
7. Management balances Effectiveness and Efficiency. Sound management requires that al
organisational activities are performed effectively and efficiently. An organisation is said
to be effective if it is able to accomplish its objectives. It will be termed as efficient if it
is able to accomplish its objectives by making optimum use of resources. For example,
each of the two Product Managers of a company is given the target to produce 2000
refrigerators per month. Both attain their targets and so are effective. But the cost of
production per refrigerator of thefirst Production Manager is 9,000 per set and that of
the second is 9,800 per set. The first Production Manager will be termed both effective
and efficient.
8. Management is an Eclectic Discipline. Management is a distinct branch of knowledge
which encompasses concepts, the:ories, principles and practices meant for managing
organisations effectively and efficie ntly. It is taught as a field of study in universities and
management institutes. Manageme nt is an eclectic discipline which drawsawide range or
knowledge from multiple discipline s like psychology, anthropology, sociology, economics,
industrial engineering, et.. That i: why, management is also called a multi-disciplinary
discipline.
3. Management is aScience as well as an Art. Management has an organised body of
Knowiedge consisting of distinct concepts, principles and techniques which have wide
 CONCEPT AND NATURE OF MANAGEMENT 1.7

applicatton. So, it is treated as a science. The application of these concepts, principles and
techniques requlres speclalised knowledge and skills on the part of the manager. Since
the skills acquired by a manager are his personal possession, management is viewed as
an art. The skills can be learnt through training and experience.
10. Management is Pervaslve or Unlversal. Management is essential for effectve performance
of any organised activity. Thus, it is universal in nature. The principles and techniques of
management have universal application. They can be applied to all types of organisations
business, social, educational and religious. However, the principles and techniques should
not be applied blindly as they are not rigid laws. They should be modified to suit the
given situation and the type of organisation.

1.6 Need and Importance of Managementie

Peter F. Drucker refers to management as the dynamic life-giving element of every business enterprise.
Management is the thinking organ that provides vision to the business. It is also the integrating
force for the accomplishment of business objectives.
The importance of management to a modern business has been discussed below :
I. Accomplishment of Goals. It is the management which determines the goals of the
organisation and of various departments and functionalgroups. The goals are communicated
to the employees to seek their cooperation. All organisational activities are directed
towards the organisational objectives. Clear-cut definition of goals is essential for the
success of any organisation.
2. Effective Utilisation of Resources. Management ensures optimum utilisationof resources.
Through planning and organisation, management eliminates all types of wastages and
achieves efficiency in all business operations. Management motivates workers to put in
their best performance. This would lead to the effective working of the business.
3. Sound Organisation. Management establishes sound organisation for the accomplishment
of the desired objectives. It clarifies authority responsibility relationships among various
positions in the enterprise. It fills various positions with persons having the right
qualifications and training. Management also provides the workers with proper environment
and encourages the spirit of co-operation.
4. Providing Vision and Foresight. Management keeps itself in touch with the external
environment and supplies vision and foresight to the enterprise. It helps in predicting
what is going to happen in future which will influence the working of the enterprise. It
also takes steps to ensure that the enterprise is able to meet the demands of changing
environment.
5. Harmony inWork. In an organisation employees come from different backgrounds, they
have different attitudes and different styles of working and if everyone starts following his
own style, itcould lead to chaos and confusion in the organisation. By giving directions,
managers bring about uniformity and harmony in the actions of employees.
6. Helping the Employees in Achieving Personal Objectives. Every manager motivates and
leads his team in such a manner that individual members are able to achieve personal
 PROCESSAND U
MANAGEMENT
organisational objective.
Through BEHAVIOUR
1.8

goals while
overall
contributing to the individuals to develop
management helps
team spirit, cooperationmotivatiaonnd
leadership
and success. enterprise. All the policy
commitment to group

7. Meeting
Challenges.
Management is the
Management keeps
brian
itself in
of
touch
any
with the external
predicting what is
deci
environment
going to
sio ns
and
are taken by it.
to
enterprise. It
the
helps in
It also takes steps
enterprise. tohappenin
ensure
supplies foresightinfluence the working of the
future which will the demands of the changing environments.
meet
that the
enterprise is able to Management plays a pivotal and crucial role in
Nation.
of Society and According to Petter Drucker,
8. Development
economicand social
development
economic
of a country. development" Efficient
and social
"Management
management of
factor in following ways:
is the crucial and the of nation in the
society
resources helps the
utilisation of resources.
() Efficient
products and services.
(i) Provision of good quality
opportunities.
(üi) Creation of employment
innovations.
(iv) Encouraging technological health and education facilities to poo.
provision of
(v) Contribution to social causes like technology for production
development by adpoting green
(vi) Contribution to sustainable goods.
packaging and distribution of
national income of the country.
(vi) Contribution to the

Management and Administration

1,7
downobjectives of the enterprise, formulating its policies,
Administration is concerned with laying undertaking. Administration
the broad organisation structure, and overall control of the control of
determining
includes determination of objectives and policies and overall
is a top level function which "Administration defines the goal; management strives
Sheldon,
business operations. To quote Oliver function, whereas management is an executive function
Administration is a determinative
towards it."
laid down by administration.
concerned with implementation of policies between 'management'
often a debate as to whether or not there is adifference
There is over the use of
'administration'. Conflicting views by various authors have led to a controversy
and 'administration' has given
debate over the use of the terms management' and
these terms. The
rise to three viewpoints : management is
higher level function, whereas
() American Viewpoint :Administration is a
a lower level function.
term and includes administration.
(i) British Viewpoint : Management is a generic
(ii) Modern Viewpoint : Both the terms are used interchangeably.
of the terms 'management a
Now we shall discuss these viewpoints on the usage
'administration' : Sheldonand
Function. The American authors like Oliver
() Administration is a Higher Level management
William Spriegel consider administration as a determinative function and determination of
anexecutive function. Administration involves setting of major objectives,
 1.9
CONCEPT AND NATURE OF MANAGEMENT

policies, laying down broad programmes and soforth. Management refers essentially to
the executive function, i.e., the directon of human efforts with a view to getting things
done. Thus, administration comes first and management follows it.
hold
() Management is a Generic Term. The British authors like Brech and Kimball and Kimball
that management is a broad term and includes administration. Management is concerned
with goal-setting and policy-making whereas administration deals with implementation
of goals and policies. Thus, the first and the second viewpoints differ from each other.
(in) Management and Administration are Synonymous. The modern viewpoint advocates
that there is no distinction between the terms 'management' and 'administration. The
distinction between management and administration may be of academic interest only.
But in practical life, this distinction seems superfluous. In order to avoid the Controversy,
we can classify management into: (a) Administrative management; and (b) Operative
management as shown in Fig. 1.2.
A d m i t i s t r a tM
i oà
nn a g e m e n t

Top Management

Middle Management

Lower Management

Fig. 1.2. Administration and Management.

TABLE 1.1: MANAGEMENT vs. ADMINISTRATION

Basis Management Administration

1. Definition Management means getting the work|Administration is concerned with the
done through and with others by formulation of objectives, plans and
leading and motivating them. policies of the organisation.

2, Nature of Functions Management refers to execution of Administration relates to decision

decisions. It is a doing function. making. It is a thinking function.

3. Stage of Itisconcerned with implementation ofIt is concerned with determination of

Performance policies laid down by administration.major objectives and policies.

4 Leading of Human It is actively concerned with directionIt is not directly concerned with
Eforts of human efforts at the operative direction of operative personnel.
level.

5. Type of Authority Management has operational Administration has authority to take

authoritytoexecute administrative strategic and policy decisions.
decisions.
 MANAGEMENT PROCESS AND
1.10 ORGANISATIONAL
6. Level in the
Onganisation
Management is relevant at lower Administration refers

levels of management.
levels of management, BEHANIO
Management decides who
shall Administration determines
7. Decision is to be done
making
implement the administrative
be done.
and when
decisions.

term'adminstrdeatipoanr'timsaensotsc,iated
widely| Thet
8. Usage The term'management' is with
used in business organisations in
the private sector.
non-business organisationsS
as government
pubir
enterprises,,mili-tary organisationg
socio-cultural organisations,

9. Designations in General Manager, Managing| Minister, Secretary,

Onganisations Director, Plant Superintendent, Director,
Branch Manager, Controller, etc. etc.
Com mis ioner
Vice-Chancel or.Registar,
10. Influencing Managerial decisions are influenced Administrative decisionsare infuenre
Factors mainly by organisational mission,| by economic environment,
objectives, policies values and |forces, government policies,Societ al
beliefs of managers.

1.8 Management as a Science

Science is asystematized body of knowledge pertaining to a particular field of enquiry. It
concepts, hypotheses, theories, and principles to explain cause and effect relationship
contains
or more factors. Any subject which is scientificaly developed and between two
consists of
principles is a science. In order to be organised as a science, adiscipline shoulduniversally accepted
have the following
characteristics :
() Systematized Body of Knowledge. It should have a
including concepts, principles and theories.
systematic body of knowledge
(ii) Scientific Observation. t should have
scientific
There should be no scope of personal likes and methods observation and enquiry
of
dislikes of the scientist.
(iin) Experimentation. Scientific principles are
evolved through observation and tested by
repeated experimentation to check their validity. They should produce the same cause
and effect relationship every time.
(iv) Verifiable Principles. Once an
and testing, it takes the form ofobservation
is confirmed by repeated
a scientific experimentau
by repeating the experiment. The results are principle.
the same Anybody can Thus, itthecan principle
every time. verify besaid
that application of aprinciple
(v) ensures predictable results.
Universal Application. The scientific principles have universal validity and appplication.
They give the same results
everywhere the prescribed conditions are satisneo.
if
 cONCEPT AND NATURE OF MANAGEMENT 1.11

It is a wellkhown fact that the management has systematised body of knowledge pertaining
to its field. The researchers in management use scientifc techniques to collect and analyse data
about human cause and effect relationship. These have been developed which also establish cause
and effect relanonship. These principles have alsobeen verified bymany researchers. More or less,
these principles have universal application in different type of organisations in different countries.
That is why, management is called a science.
However, management is not a perfect science like other physical sciences such as astronomy,
physics, chemistry, biology, etc. The main reasons for the inexactness of science of management
are as follows :
() Many of the principles of management are not supported by research.
(i) In management, it is difficult to establish cause and effect relationship as in Chemistry
or Biology.
(in) Application of management principles depends upon situations and factors.
(/V) Management deals with people at work and it is very difficult to predict their behaviour
accurately. Since it is a social proce_s, it is also called a Social Science.

1.9 Management as an Art or Practice

Art signifies the application of knowledge and personal skills to bring about desired results. It
is based on scientific knowledge and principles. If a science is learnt, an art is practised. Stated
differently, science is to seek knowledge and art is to apply knowledge. An art has the following
features:
and
() Body of Knowledge. Art is based on theoretical knowledge of concepts, principles
applications about a particular field such as music, painting, etc.
application
(i) Personalised Application of Knowledge and Skills. Art implies personalised
or
of knowledge and skills about a particular field, say, music or painting. Every artist
practitioner develops his personal skills and style of producing concrete results.
(ii) Practice. Art is learnt and refined through continuous practice.
and style to create better
(iv) Creativity. Art is creative in nature. An artist uses his skills
results.
:
Management is considered an art because of the following reasons
of management concepts,
() The practice of management does involve the use of knowledge
principles and techniques.
with various problems of the unit
(ii) Every manager has to apply his personal skills to deal judgement to take managerial
he is managing. At times, he may have to use personal
decisions.
there is no best management. Every
(ii) Management is situational, meaning thereby that
with various situations.
manager has to apply his knowledge and skills to deal
through continuous practice.
(iv) The art of management can be learnt and mastered
the accomplishment of concrete results.
(v) The process of management is directed towards
that managing creates new
Like any other art, management is creative in the sense
situation needed for further improvement.
 MANAGEMENT PROCESS AND
1.12
ORGANISATIONAL
Box 5: Managemnent as a Science
Management is both a sclence and an art. It Is
and an Art
science because it
consldered a has an
BEHANIOR
of
body knowledge which contains certaln universal truths. It is called an art because
organised
requires application of certain skills which are the
provides knowledge about certain things and art deals
possession of
personal
with the
the
application of
knowledge of science of
ma
manager. n
Scaig
eni
knowedge ande
ncg
skills. A manager to be SUCcessful must acquire the
learm to apply this knowledge. A manager should be an applied scientist. management
He should
to put his knowledge
only specialised knowledge of management, but also the skillsmanager should use
and
possess nt
Just as a doctor uses his knowledge to treat his patients, a
into pracice.
his
to solve the organisational problem. knowledge
1.10 Management as a Profession
The term 'profession' may be defined as an occupation backed by specialised body of
and to which entry is regulatediby arepresentative body. The essential requirements of a
follows:
() Specialised field of knowledge.
knowledorgeo:faensditornair ng
are as

(ii) Restricted entry based on education and training.

(i) Representative or professional association.
(iv) Ethical code of conduct for self-regulation.
(v) Social recognition.
(vi) Professional fee.
TABLE 1.2:APPLICATION OF PROFESSIONAL CRITERIA TO MANAGEMENT

Professional Criteria Management

1. Specialised Body of KnowledgeManagement has a systematised body of knowledge and
principles.

2. Entry based on Education and Entry tothis field does not require any prescribed qualification
Training training.
3. Professional Association There is no professional association of which membership is
essential for practising manager. In India, we have AIMA, but is
not essential to hold its membership to be a manager.
4. Code of Ethics ManagerS are not bound by any common code of conduct. Some
SSOciation have framed codesof conduct for members, but they
exist on paper only.
5. Social Responsibilities There is a growing concern for social responsibilities of
management.
*Management can be. considered aprofession because of the following reasons
be
( The field that can
of.management is supported by a well-defined body of knowledge
taught and learnt in institutes and universities.
cONCEPT AND NATURE OF MANAGEMENT 1.13

() Management of modern organisations requires competent application of management

principles, techniques and skills., Thus, there ls a need of formal education and training
in management. Many institutes of management have come up now in India and abroad
which offer courses like MBA, PGDBM to create competent managers.
(ii) Certain associations of managers have been formed in different countries of the world.
These associations have prescribed standards of education and training for their members.
(iv) The associations of managers [such as All India Management Association (AIMA)] have
prescribed codes of conduct for their members.
(V) Managers are aware of their social responsibilities towards various groups of the soCiety
including Customers, labour, suppliers, gOVernment, etc. They are guided by service motive.
The managers enjoy higher status in the society.

Box 6: Art, Science and Profession

Management is an art as it is concerned with the application of knowledge and skills to achieve
the objectives of the organisation.
Management is often called a science as it has s systematised body of knowledge, concepts and
scientific principles. But it is inexact science as the principles are not applicable in all ituations.
Management is a social science as it deals with human element.
Managenment is not a full-fledged profession because :
() there is no universally recognised degree to become a manager;
(i) there is no all-India body to regulate the practice of management; and
(ii) there is no widely accepted code of conduct for managers.
However, management is proceeding towards professonalisation.
Management can'tbe fully regarded as aprofession because it does not fulfil all the requirements
of a profession as is the case with medical or accountancyprofession. Argumentsagainst professional
status of management are as follows :
are no prescribed standard
() Entry to management profession is not restricted. There
qualifications (e.g., MBA) and training programme to become a manager.
Medical Council of
(i) Management doesn't have an all-India representative association like
standards
Indiaor lnstitute of Chartered Accountants of India to prescribe professional
and enforce them.
is the case with doctors and
(iii) There is no ethical code of conduct for the managers as
chartered accountants.
However, it is moving in that
Thus, professionalisation of management is not complete yet.
direction.

Review Questions
Short Answer Type Questions
1. "Management is the art of getting things done." Comment.
2. Explain the meaning of management as a process. Acc. Ne.
3. "Management is goal-oriented". Explain.
 MANAGEMENT PROCESS AAND ORGANISATIONAL
1.14
management.
BEHAVIOUR
4. Briefly explain the functions of
science.
5. Explain management as a
science ? Discuss.
6. Is management aperfect
of art". Explain.
7. "Management has certain features
as a profession.
8. Briefly explain the features of management
profession? Discuss.
9. Can management be regarded as a
Long1. Answer Type Questions
Define the term 'Management' and explain its basic features. Review in brief the main functions
of management.
2. Why is management called a process ? Describe the characteristics of management. Also describe
management as a science with the help of examples.
3, "Management is the effective utilisation of human and material resources to achieve the enterpriss's
objectives." Comment.
4. "Management is the force which leads, guides and directs an organisation in the accomplishment
of predetermined objectives"' Discuss and give asuitable definition of management.
5. "Management isthe coordination of all resources through the process of planning, organising
staffing, directing and controlling in order to attain stated objectives." Comment on the above
statement and describe briefly the functions of management.
6. "To manage is to forecast and plan, to organise, to command, to coordinate and to control". Discuss
the statement.
7. Explain the difference between management and administration.
8. Is management ascience or an art or both ? Discuss.
9. "Management is both a science and an art." Explain this statement.
10. "Management is neither a pure science nor a fine art." Comment.
11. "Management is regarded as an art by some, a science and an inexact science by others, the
truth seems to be somewhere in between." In the light of this statement, explain the nature of
managenment.
12. Explain briefly management as an art, as a science and as a profession.
13. "Management is atrinity of art, science and profession." In the light of this statement, explain the
nature of management.
14. What is a profession ? Do you feel that management is a full fledged
profession?
15. Why is management not recognised as a profession comparable with
Explain. medical or legal profession?