UNIT 1: NATURE AND CONCEPT

OF MANAGEMENT

Learning Objectives:
After reading and analysing the unit, you
should be able to:
1. Elaborate the definition and functions of
management
2. Discuss the evolution of management
theories
 INTRODUCTION

Every human being has several needs and desires.

But no work individual can satisfy all his wants.
Therefore, people work together to meet their mutual
needs which they cannot fulfil individually.
Management is considered a process because it
involves a series of interrelated functions. It consists
of getting the objective4s of an organization and
taking steps to achieve objectives. The management
process includes planning, organizing, staffing,
directing and controlling functions.
Management as a process has a following implications:
1. SOCIAL PROCESS: Management involves interactions
among people. Goals can be achieved only when
relations between people are productive. Human factor
is he most important part of the management.
2. INTEGRATED PROCESS: Management brings human,
physical and financial resources together to put into
effort. Management integrates human efforts so as to
maintain harmony among them.
3. CONTINUOS PROCESS: Management involves continuous
identifying and solving problems. It is repeated every
now and then till the goal is achieved.
4. INTERACTIVE PROCESS: Managerial functions are
contained within each other..
DEFINITION AND FUNCTIONS OF
MANAGEMENT

MANAGEMENT means the group of persons occupying

managerial positions. It refers to all those individuals who
perform managerial functions.
There are several types of managers which are listed as under:
1. Family managers who have become managers by virtue of
their being owners or relatives of the owners of a company.
2. Professional managers who have been appointed on account
of their degree or diploma in management
3. Civil Servants who manage public sector undertakings
NATURE AND CHARACTERISTICS OF
MANAGEMENT
The salient features which highlight the nature of
management are as follows:
1. Management is goal-oriented: Management is not an end in
itself. It is a means to achieve certain goals.
2. Management is Universal: Management is an essential
element of every organized activity irrespective of the size
or type of activity.
3. Management is an integrative force: The essence of
management lies in the coordination of individual efforts in
to a team.
4. Management is a social process: Management is done by
people, through people and for the people
5. Management is multidisciplinary: Management has to deal
with human behaviour under dynamic conditions.
6. Management is a continuous process: Management is a
dynamic and an on-going process.
7. Management is Intangible: Management is an unseen or
invisible force.
8. Management is an Art as well as Science: It contains a
systematic body of theoretical knowledge and it also involves the
practical application of such knowledge.
 ROLE AND IMPORTANCE OF MANAGEMENT
According to Peter Drucker “ Management is a dynamic life-giving elements in an
organization, without it the resources of productions remain mere resources and
never become a production”.

The importance of management has been highlighted clearly in the following points:
1. Achievement of group goals: A human group consists of several persons, each
specializing in doing a part of total task.
2. Optimum utilization of resources: Managers forecast the need for materials,
machinery, money and manpower.
3. Minimization of the cost: Managers forecast the need for materials, machinery,
money and manpower.
4. Survival and growth: Modern business operates in a rapidly changing
environment.
5. Generation of Employment: People earn their livelihood by working in these
organization.
6. Development of the nation: Efficient management is equally important at the
national level. Management is the most crucial factor in economic and social
development.
 FUNCTIONS OF MANAGEMENT
1. PLANNING: entails the setting of goals and includes the creation of a
blueprint to achieve them. It is essential that managers create objectives,
which serve to focus the efforts of employees, motivate them and provide a
standard against which performance can be measured.
2. ORGANIZING: another important managerial function which can be defined
as the allocation of resources to achieve the goals.
3. LEADING: Without the ability to influence subordinates toward goal
achievement, manager cannot be effective.
4. CONTROLLING: Control can be defined as a methodological process through
which managers monitor employees and their activities to ensure that they
are in alignment with the company’s objectives.
5. LEADERSHIP STYLES: Leadership is critical to a company’s profitability. The
methods and manner that a manager uses to spur workers toward the
achievement of the company’s objectives is termed leadership style.
 FOUR MAIN LEADERSHIP STYLES:

1. AUTOCRATIC LEADERSHIP
 Autocratic leaders control the decision-making entirely and express no
interest in the suggestions of employees. This leadership style is useful
in situations that demand speedy decision-making and when information
is confidential, but it may demoralize employees and result in less
creative decision-making.

2. DEMOCRATIC LEADERSHIP
 Democratic leaders seek the input of employees in decision-making. This
style motivates employees, but it may be time-consuming because of the
ongoing consultations.

3. PATERNALISTIC LEADERSHIP
 A paternalistic leader, as the name suggests, adopts a father-like
approach.

4. LAISSEZ FAIRE LEADERSHIP

 This means allowing persons to do as they please. Managers that adopt
 EVOLUTION OF MANAGEMENT THEORIES

Management theory originated with “scientific” and

bureaucratic” management that used measurement, procedures
and routines as the basis for operations. Organizations
developed hierarchies to apply standardized rules to the
workplace and punished workers for not following them. With
the “human relations” movement, companies started
emphasizing individual workers.
 MANAGEMENT THEORIES AND
PRACTICE
Management practice relies upon case studies and the individual experiences of managers when
dealing with workplace situations. Since both schools of management have flaws and benefits, a
business owner should study both styles of management in order to improve profitability.
BENEFITS:
• Employees most commonly leave their jobs due to poor management practices, a situation that
increases costs and lowers the talent present in a business, according to the University of Vermont.
CONSIDERATIONS:
• Management theories face limitations, because models of human behaviour in a business do not
consider all the variables that can impact profitability.
UNIFORMITY:
• Management theories work best from a macro perspective, such as when business determines the
appropriate model for management as a whole or starts a large project that it has never attempted
before.
PERSONALIZATION:
• Management practices focus more on dynamics between groups, which allows managers more
flexibility in making decisions and helps employees function together as a unit they work together on
a project.
APPLICATION:
* A small business owner will usually study and implement management practices, because he requires
flexibility to sustain his business mode.
IMPORTANCE OF MANAGEMENT
THEORY
A popular saying holds that “ the difference between
theory and practice is that in theory there is no
difference”. This witticism is especially relevant to
management theory because many managers would
deny that management theory has such similarity to
practice. The role of the management theory is to
provide guidelines for effective practice. However, the
ability of any theory to do so is a matter of debate.