NATURE AND SIGNIFICANCE OF

MANAGEMENT
Management
Definition
A process of getting things done with
the aim of achieving goals effectively
and efficiently.
 Process
Primary functions or Activities that
management performs to get things
done.
Effective:
Finishing the given task
Concerned with the end result
Efficiency:
Doing the task correctly with
minimum cost
 Cost- Benefit analysis
 Relationship between inputs and
outputs.
 By using less resources more
benefits are derived.
 Same benefit/output is reached by
fewer resources is also called
efficiency
This is also considered as Efficiency
Same benefit or outputs are achieved
with
fewer resources or less cost incurred
 Effectiveness and Efficiency
Effective Efficiency
• Complete the given task • Cost benefit/ Reducing the cost
• Don’t bother about the cost the • Try to complete the task with
only aim is to complete the task fewer resources/ cutting down
• Ex 5000 unit in year the cost
• Double shift due to power • 5000 unit in a year is not
failure achievable
• Appoint more employees to • Due to this competitors will try
complete the task to occupy the market
 Characteristics of Management
1.Management is a goal- Oriented Process
 Should be simple and clearly stated
 The goals will differ from organisation to
organisation
Goal or retail – Increase sales
NGO – Provide services
 Management unites the effort of all the
individuals in the organisation to achieve the
common goal
Management is all pervasive
• The managing activities are common to all
organisations
( Petrol pump, School, Hospitals)
• What managers do In India is same in USA,
Germany and in Japan
( Some difference may be there due to
culture, tradition, history)
III. Management is Multidimensional
a) Management of work
b) Management of people
c) Management of operation
a)Management of work
• All organisations are exist to perform some
work.
In factory – Products are manufactured
In Garments – Customer need is satisfied
In hospital – Patient is treated
• Management translates this work in terms
of goals to be achieved and assigns the
b) Management of People
• “Getting work done through people”
is still a major task for the managers
It has two dimensions
1) Dealing with employees as individual
with diverse needs and behaviour
2) Dealing with individuals as a group
of people
Management of operations:
• This requires a production process
and technology which transforming
the input material into desired
output for consumption.
• It interlinked management of work
and Management of people
iv) Management is a continuous
process
These functions(Planning, Organising, Staffing,
Directing, Controlling) are simultaneously
performed by all managers all the time
v)Management is a group activity
• Every member of the organisation
has a different purpose for joining
• But as a member of the
organisation they should work to
fulfil the common organisational
goals
VI Management is a dynamic function
• An organisation interacts with its
external environment
( Social, Political, Economical, Legal, Technological)
• In order to successful the
organisation should change itself
and its goal according to the
environment changes
VII Management is an intangible force:
• Cannot seen but its presence can
be felt through its functions by
 Targets are met according to
plan
 Employees are happy, Satisfied
 Orderliness in everything
 Objectives
of
Management
1.Organsiational Objectives
• Management create objectives
with the consideration of all stake
holders(Sh.holders,Employees,
Customers, Government, etc.)
• Main objective is utilising human
and material resources to the
maximum possible advantages
 • An organisation must earn enough
Survival revenues to cover the cost

• Profit will make the organisation for the

Profit continuous successful operation
• Cover the costs and risk of the business

• It is measured in terms of sales volume

Growth • Number of employees increased
• Increased capital investment
2. Social Objectives
• It is the concern on the society
• It’s a social obligation
Environmental friendly production
method
create employment opportunities to
the disadvantaged sections
Build a school, Crèches to employees
3.Personal Objectives
The organisation filled with personal
from different backgrounds,
experiences and personalities.
Financial needs: Salaries and perks
Social needs: Peer recognition
Higher level needs :
Importance
of
Management
i) Management helps in achieving
group goals:
Create a common direction to the
individual effort in achieving the
overall goal of the organisation
( a big task of the manager)
II) Management increases efficiency
Reduce cost and increase productivity
( through better planning, organising, directing,
staffing and Controlling)
 III) Management creates a dynamic
organisation:
• Generally the individuals in an organisation
resist changes
• It is more challenging them to moving
newer system from familiar and secure
environment
• Management helps people to adapt to these
changes to maintain the competition
IV) Management helps in achieving
personal objectives
A Manager motivate the personal to
achieve their personal goal while
contributing to the overall
organisational objectives
(Develop the team spirit, cooperation
and commitment)
 V) Management helps in the
development of society
• Provide good quality products and
services
• Create employment opportunities
• Adopt new technology for the
growth and development
 Nature
of
Management
 ART
ART IN BUSINESSS
• Existence of theoretical • A Successful manger gain this
knowledge based on study, observation and
Experts in the respective field they experiences
have certain basic principles and • Lot of Literature also available to
theoretical knowledge gain this knowledge like
Ex: Different theories of Literature, Marketing, Human Resources,
Dance, Music, Acting Finance etc.
 ART
ART IN BUSINESSS
• Personalised Application • Mangers also applies the
• Basic knowledge varies from scientific method and body of
individual to individual knowledge to a given situation in
their own method
• Ex. Two dancer
• A good manager works through
• Two singer combination of practice,
• Two actors creativity, initiative and
innovation
 ART
ART IN BUSINESSS
• Based on practice and creativity • A manger applies his knowledge
• Art involves the creative practice in the organisation. He studies
of existing theoretical knowledge critical situations and formulates
his own theories for the given
• Composition of the music with situation
seven notes is differ from person
to person
 SCIENCE
SCIENCE IN BUSINESSS
• Systematised Body of Knowledge • Management has its own
Its principles are based on cause and systematised Body of knowledge
effect relationship • It has its own theory and principles
Ex( Law of Gravity) which is created over a period of
time
• Management has its own
vocabulary of terms and concept
 SCIENCE
SCIENCE IN BUSINESSS
• Principles based on • Principles of management have
experimentation: evolved over a period of time
• Developed through observation and based on experimentation and
then tested through repeated observation
experimentation • The outcome of the experiments
are not accurate or un predictable
• So it is a inexact Science
 SCIENCE
SCIENCE IN BUSINESSS
• Universal Validity: • Principles of Management are not
• Scientific Principles have universal as exact as principles of science
validity and application • Not universal
 PROFESSION
PROFESSION IN BUSINESSS
Well-defined body of knowledge. The subject of Management is
All professionals acquired well taught at different institutions such
defined knowledge through as IIM.
instruction This knowledge can be acquired at
different colleges and professional
institutes and through a number of
books and journals
 PROFESSION
PROFESSION IN BUSINESSS
Restricted Entry No restriction to become a Manger
To become a professional is Any one can appointed or
restricted through an examination or designated as Manager and not
acquiring an educational degree based on their degree or
(Ex CA – examined by ICAI, educational qualification
Doctor – IMA, Lawyers – Bar Council)
 PROFESSION
PROFESSION IN BUSINESSS
Professional Association For managers like AIMA ( All India
All professions are affiliated to a Management Association) is there
Professional association However there is no compulsion for
Who regulates entry , Grants managers to be a member of such
certificate, Create Code of conduct an association
Ex : Lawyers : Bar-Council
Doctors – IMA
CA - ICAI
 PROFESSION
PROFESSION IN BUSINESSS
Ethical code of conduct
Professions are bound by a code
conduct
Which guides the behaviour of its
members
 PROFESSION
PROFESSION IN BUSINESSS
Service Motive
The basic motive of a profession is to • The basic motive of the
serve the clients organisation is profit
maximisation
• Its aim not only profit
maximisation with good team if it
work effectively and efficiently it
automatically serves society by
providing good quality products at
a reasonable prices
 Levels
of
Management
 Top Level
• They are Functional Heads
• Responsible for the Welfare and survival of the
organisation
• They formulate overall organisational goals and
strategies for their achievement
• They are responsible for all the activities of the
business
• The job roll is Complex and Stressful demanding
Middle Level
• Subordinate to the top and Superior to
the first line managers.
• They are divisional heads
• Responsible for Implementing and
controlling plans and strategies
developed by top management.
• Responsible for all the activities of first
 Middle level task
1. Interpret the policies framed by top
management
2. Ensure that their department has the
necessary personnel
3. Assign necessary duties and
responsibilities
4. Motivate them to achieve the objective
5. Co- Operate with other departments
 Supervisory or Operational Management
• Supervisors directly oversee the efforts of
the workforce.
• They Interact with workforce and pass on
instructions of the middle management
• Quality of the output is maintained by
them
• Wastage of materials are minimised
• Safety standards are maintained.