CHAPTER 1

NATURE AND CONCEPT OF MANAGEMENT

WHEN YOU HEAR THE
WORD MANAGEMENT,
WHAT COMES TO YOUR
MIND?
INTRODUCTION
 Globalization is increasingly becoming a cooperative endeavor among all other walks of
people world-wide. Whether in government, business, the church, civil societies, civic
organizations, and other forms of enterprises, the effectiveness with which people work
together toward the attainment of enterprise goals is largely determined by the ability of those
who hold managerial positions.
 Indeed, it is a characteristic of every effective group effort designed to attain group goals at the
least cost of time, money, material, or discomfort, that it adopts the basic processes and
principles of management.
THE NATURE AND CONCEPT
OF MANAGEMENT
According to Haimann, the term "management" has three (3) distinct aspects:
1. Management as a field of study or a subject.
2. Management as a team or class of people or a noun.
3. Management as a process.
SALIENT FEATURES OF
MANAGEMENT
1. Organizational Activity. Management is a group of activities. Management is to coordinate
and integrate the actions and reactions of individuals.
2. Objective and Goal Formulation. Management has definite objectives and goals before it to
attain. Objectives and Goals are set considering the actions and reactions of individuals.
3. Objective and Goal Attainment and Evaluation. Management also evaluates the effectiveness
in attaining the objectives and goals.
4. Organizational Survival. Managers or executives are expected to use the resources available
to them as efficiently as possible to guide the survival of an organization in the competitive
world. The ability to forecast and adjust to change are important aspects of management for
organizational survival.
5. Implementation. Action is the backbone of management. Policies, guidelines, procedures and
programs are implemented by management.
CHARACTERISTICS OF
MANAGEMENT
Following are certain features which illustrate the wide breadth and depth of scope of
management, as advanced by M. U. Qureshi:
1. Universal Process. Management is a universal process which is applied in all types of
organizations social, religious, commercial. political, civic, etc. Every organization whose
purpose is to achieve its goals and objectives through group efforts needs planning coordination,
direction and control, in order to succeed.
2. An Integrative Process. Management is the integration and coordination of human and
physical resources in a manner that it leads to effective performance. Managers apply
knowledge, experiences and principles for getting results. Management seeks to harmonize the
individual goals with organizational goals.
3. Dynamic Function. Management is a dynamic function of organizations or business
enterprises. Its functions change from time to time depending upo the circumstances of the
business climate conditions, such as economic, social, political, technological. and human
conditions Management adjusts itself to the changing atmosphere -- making suitable forecasts
and changes in the policies and programs.
CHARACTERISTICS OF
MANAGEMENT
Following are certain features which illustrate the wide breadth and depth of scope of
management, as advanced by M. U. Qureshi:
4. Social Process. Management is a social process as it primarily deals with emotional/dynamic
and sensitive human beings. The major achievement is to win their confidence and cooperation.
Thus, making it difficult to precisely define the principles of management. Management
principles are constantly influenced by social traditions, customs and regulations.
5. Management Makes Things Happen. Managerial ability is distinctly different from technical
ability. Management is the art of getting things done through people. It implies under a given set
of constraints or problem boundaries how positive results can emerge, by taking well defined
actions.
CHARACTERISTICS OF
MANAGEMENT
Following are certain features which illustrate the wide breadth and depth of scope of
management, as advanced by M. U. Qureshi:
6. Management is a Multi-faceted Discipline. Management has to deal with heterogeneous
resources. Their performance depends upon the proper knowledge and skill of various
disciplines. Management has grown as a body of discipline taking the help of so many social
sciences like Anthropology, Sociology and Psychology, among others. Because of this,
management is also known as a "Behavioral Science."
7. Intangible Force. Managerial ability is an intangible force, it is a social skill which cannot be
seen with the eyes but is evidenced by the quality and level of an organization.
VARIOUS LEVELS OF
MANAGEMENT
 Levels of Management – refers to a line of demarcation between various managerial
positions in an organizational hierarchy.
 Generally, there are three (3) levels of management, namely:

1. Top Management
2. Middle Management
3. Lower Management
VARIOUS LEVELS OF
MANAGEMENT
1. Top Management
- Ultimate source of authority
- Establishes goals and policies for the business organization and devotes more time on the
planning and coordinating functions
- Approves the decisions of the middle management
- Includes Board of Directors, Chief Executive Officers/President, Vice Presidents, Managing
Director/Executive Director, General Managers and other equivalent items/positions.
VARIOUS LEVELS OF
MANAGEMENT
1. Middle Management
- Receive orders and instructions from top management and get things done through lower level
management
- Responsible to the top management for the effective functioning of their departments
- Devote more time on the organization and motivation functions of management
- Includes Production Manager, Sales Manager, Office Manager, Chief Accountant, Chief
Cashier, Branch Managers, Chief Personnel, and other equivalent items/positions
VARIOUS LEVELS OF
MANAGEMENT
1. Lower Management
- Lowest level of management and has direct contact with workers
- Devote more time on supervision of the workers and are responsible for building high morale
among workers
- Includes supervisor, foreman, account officers, sales officers, and all other officers whose
items/positions are equally the same
THREE (3) VIEWS ON THE SUBJECT
OF DISTINCTION BETWEEN
ADMINISTRATION AND
MANAGEMENT
1. The Distinction
Administration is formulation of policies and is a determinative function, while management is
execution of policies and is an executive function.
2. Incorporated Items
- “Management is a generic term with wide functions including administration, which is a narrow
function.”
- Exactly the opposite of the The Distinction viewpoint
3. No Distinction
- “The terms Management and Administration do not make any difference.”
- It is hard to differentiate the two, considering that the same set of persons perform both these
functions.