Bullet points on Nature and Significance of Management

Meaning of Management :
 Management is the art of getting things done through and with others.
 Successful organizations do not achieve their goals by chance but by following a deliberate process
called ‘management’.
 Management is essential for all organizations big or small, profit or non-profit, services or
manufacturing.
 Management, has therefore, been defined as a process of getting things done with the aim of
achieving goals effectively and efficiently
 Effectiveness in management is concerned with doing the right task, completing activities and
achieving goals.
 Efficiency means doing the task correctly and with minimum cost by utilizing resources optimally

Objectives of Management :
Management seeks to achieve certain objectives derived from the basic purpose of the business.
Objectives of Management include Organizational objectives, Personal objectives and Social objectives.
Organizational Objectives
a. Survival-Management aims at ensuring the survival of the organization
b. Profit-Management ensures the organization makes good profits that in turn help build its goodwill
c. Growth-Management helps increasing the sales, no. of employees, capital, investment and goodwill
of the organization

Personal Objectives
 Management ensures that employees earn competitive wages, allowances and other incentives
 Management provides opportunity for development and training and promotion of the employees
 Management helps provide recognition to meritorious employees

Social Objectives
 Environment Protection
 Employment Generation
 Women Empowerment
 Community Welfare, etc

Importance of Management
1. Management helps in achieving Group Goals
2. Management enhances Efficiency
3. Management establishes a Dynamic Organisation
4. Management helps in achieving Personal Objectives
5. Management helps in Development of the Society

Functions of Management

a. Planning is about setting goals in advance and developing a way to achieving them efficiently and
effectively
b. Organisingis the process of assigning duties, grouping jobs to be performed, establishing authority-
responsibility relationships and allocating the resources to carry out the assigned tasks.
c. Staffing refers to finding the right person for the right job and covers areas like manpower
planning, recruitment, selection, training and development
d. Directing involves leading, influencing, guiding, influencing and inspiring subordinates to
successfully accomplish the tasks assigned to them. It involves supervising, motivation, leadership and
communication on part of every manager
e. Controlling is a function which involves monitoring organizational performance

Levels of Management
 Authority-Responsibility relationship in an organization binds individuals and gives rise to different
levels of management.
 The chain of command consisting of a series of managerial positions is called Management
Hierarchy
 Every individual in the hierarchy is responsible for successful completion of a particular task.
Top Management includes top or senior most positions in an organization like BODs, MDs, chairman, the
chief executive officer, chief operating officer, president and vice-president, chief finance officer, vice
president (marketing), etc.

Functions Performed by Top Management:

 They formulate overall organisational goals and strategies for their achievement
 They coordinate the activities of different departments
 They are engaged in overall policy framework for the organization
 They are responsible for the welfare and survival of the organisation.
 They analyse the business environment and its implications for the survival of the firm.
 They are responsible for all the activities of the business and for its impact on society.

Middle Management includes department heads, regional heads, divisional heads etc who are subordinate
to the top management and superiors for the first line or supervisory management

Functions Performed by Middle Level Management:

 They are concerned with interpreting the policies framed by the top management and executing plans
laid.
 They are responsible for implementing and controlling plans and strategies developed by top
management.
 They are responsible for all the activities of first line managers
 They ensure that their department has the necessary personnel
 They assign necessary duties and responsibilities to the personnel in their department
 They motivate the personnel of their department to achieve their goals
 They co operate with other departments for smooth functioning of the organisation.

Supervisory or Operational Management includes foremen, line managers, superintendent, section officers
etc that are subordinate to the middle level managers and superiors for the workers

Functions Performed by Supervisory Level Management:

 They are mainly concerned with overseeing the activities of the workers by providing them necessary
training and other facilities
 They interact with the actual work force and pass on instructions of the middlemanagement to the
workers
 They make sure that quality of output is maintained, wastage of materials is minimized and safety
standards are maintained by all the workers
 They serve as a link between the workers and middle level managers.
 They ensure sufficient availability of resources and good quality of output.

WORKERS ARE NOT MANAGERS

Features of Management
1. Management is Goal Oriented
Management unites the efforts of different individuals in the organisation towards achieving these
goals.

2. Management is a Group Activity

An organisation is a collection of diverse individuals with different needs. Every member of the group
has a different purpose for joining the organisation but as members of the organisation they work
towards fulfilling the common organisational goal.

3. Management is All Pervasive

The activities involved in managing an enterprise are common to all organisations whether economic,
social or political.

4. Management is an Intangible Force

The effect of management is noticeable in an organisation where targets are met according to plans,
employees are happy and satisfied, and there is orderliness instead of chaos.

5. Management is a Dynamic Function

 An organisation interacts with its external environment which consists of various social, economic and
political factors. In order to be successful, an organisation must change itself and its goals according to
the needs of the environment.

6. Management is a Continuous Process

The process of management is a series of continuous, composite, but separate functions (planning,
organising, directing, staffing and controlling).

7. Management is Multi-Dimensional
Management is a complex activity that has three main dimensions:
a. Management of People
Human resources are an organisation’s greatest and “getting work done through people” is a major task for the
manager.Managing people has two dimensions
(i) it implies dealing with employees as individuals with diverse needs and behavior;
(ii) it also means dealing with individuals as a group of people

b. Management of Work
All organisations exist for the performance of some work.Management translates this work in terms of goals to
be achieved and assigns the means to achieve it.

c. Management of Operations
This is interlinked with both the management of work and the management of people. This requires production
of a desired output through a process of conversion of raw materials to finished goods with the help of human
resource

Nature of Management

A. Management as an Art

The basic features of any art are as follows:

a. Existence of theoretical knowledge:
Experts in their respective areas of art have derived certain basic principles which are applicable to a
particular form of art. For example: Painting, Classical Dance, Classical Music etc have their own theoretical
guidelines for learners.

b.Personalised application:
Every individual learner applies their own style in a personalized manner. For example: Two musicians with
similar background may compose very different music.

c. Based on practice and creativity:

Each individual learner has their own personalized style which evolves with their creativity, practice and
experience. For example: A musician with 15 years of experience may be more evolved than a someone who is
just starting.

Management can be said to be an art since it satisfies the following criteria:

a. It has a theoretical knowledge base
There is a lot of literature available in various areas of management like marketing, finance and human
resources which the manager has to specialise in. There is existence of theoretical knowledge.
b. It has a personalized application
There are various theories of management, as propounded by many management thinkers, which prescribe
certain universal principles. A manager applies these scientific methods and body of knowledge to a given
situation, an issue or a problem, in his own unique manner.

It is based on practice and creativity of the manager

A manager applies this acquired knowledge in a personalised and skillful manner in the given situation.
A good manager works through a combination of practice, creativity, imagination, initiative and innovation. A
manager achieves perfection after long practice.

B. Management as a Science
The basic features of any science are as follows:
a. Systematised body of knowledge:
All Sciences have a systematic body of knowledge and principles are based on a cause and effect relationship.
For example: Laws of motion , Law of gravity etc

b. Principles based on experimentation:

Scientific principles are first developed through observation and then tested through repeated experimentation
under controlled conditions.

c. Universal validity:
Scientific principles have universal validity and application.

Management is Not an exact Science because of the following criteria:

a. It has a systematic body of knowledge
Management has its own theory and principles that have developed over a period
of time.

b. The principles of management are not supported by research although they are sometimes based on
experimentation
The principles of management have evolved over a period of time based on repeated experimentation and
observation in different types of organisations. However, since management deals with human beings and
human behaviour, the outcomes of these experiments are not capable of being accurately predicted or replicated.

c. The principles of management do not have universal validity

Principles of management have to be modified according to a given situation and are not as exact as the
principles of science, their application and use is not universal.

B. Management as a Profession
A profession has the following characteristics: a
a. Well-defined body of knowledge:
All professions are based on a well-defined body of knowledge that can be acquired through instruction. For
example: There are many Management Institutes which offer a specialized Programme leading toa Masters in
Business Administration(MBA).

b. Restricted entry:
The entry to a profession is restricted through an examination or through acquiring an educational degree. For
example: To become a chartered accountant in India a candidate has to clear a specified examination
conducted by the Institute of Chartered Accountants of India.

c. Professional association:
All professions are affiliated to a professional association which regulates entry, grants certificate of practice
and formulates and enforces a code of conduct. For example: To be able to practice in India lawyers have to
become members of the Bar Council which regulates and controls their activities.

d. Ethical code of conduct:

All professions are bound by a code of conduct which guides the behaviour of its members. For example: All
doctors, for example, take theoath of ethical practice at the time they enter the profession.

e. Service motive:
The basic motive of a profession is to serve their client’s interests by rendering dedicated and committed
service. For example:The task of a lawyer is to ensure that his client gets justice.

Management does not meet the exact criteria of a profession but its on way to becoming one because:
a. Management is supported by a well-defined body of knowledge
This knowledge can be acquired at different colleges and professional institutes and through a number of books
and journals. The subject of management is taught at different institutions.

b. Mangers are aware of their social responsibility

The basic purpose of management is to help the organisation achieve its stated goal.However, profit
maximisation as the objective of management
c. There are some organisations like AIMA and IMT that have been established to professionalise
management
There is, however, no compulsion for managers to be members of such an association nor does it have any
statutory backing.

d. There is no restriction on anyone being appointed as a manager in an organsiation

Anyone can be called a manager irrespective of the educational qualifications possessed and good management
team that is efficient and effective it automatically serves society by providing good quality products at
reasonable prices.

Meaning of Coordination:
Coordination aims at synchronizing group efforts to provide unity of action in pursuit of organizational
goals.

Nature of Coordination
1. Coordination integrates group efforts
2. Coordination ensures unity of action
3. Coordination is a continuous process
4. Coordination is an all pervasive function
5. Coordination is the responsibility of all managers
6. Coordination is a deliberate function

Importance of Coordination
1. Growth in Size – With growth in the number of employees, coordination is needed to harmonize
individual goals with organizational goals
2. Functional Differentiation – Coordination is needed to maintain harmony between departmental goals
and organizational goals
3. Specialisation- Coordination is needed to resolve any conflicts arising amongst departmental
specialist, keeping in mind the organizational goals

Coordination is the essence of management because on the right job.

OR
Coordination involves synchronisation of the different actions or efforts of the various units of an
organisation.
a. Helps in Planning
The process of coordinating the activities of an organisation begins at the planning stage itself. Top management
plans for the entire organization.
Coordination helps in balancing the master plan with plans of different departments.

b. Helps in Organising
Based on planning, coordination helps in developing the organisational structure.
Coordination therefore helps in avoiding duplication of work

c. Helps in Staffing-
Based on planning and organizational structure, coordination helps in staffing.
Coordination therefore helps in placing the right person on the right job

d. Helps in Directing
In order to ensure that plans are executed according to organizational goals laid, directing is required.
Coordination therefore helps in effective balancing of motivation, supervision, leadership and communication

e. Helps in Controlling
Any discrepancies between planned and actual activities are taken care of at the stage of controlling.
It is through the process of coordination that a manager ensures the orderly arrangement of individual and group
efforts to ensure unity of action in the realisation of organisational objectives.
Coordination thus makes sure that the actual results confirm to the plans