Nature and Significance of Management
Meaning of Management
Management is a process which directs actions of others towards common goals under the process of planning, organising, staffing, directing, controlling wherein organisation operates in order to achieve targets effectively and efficiently.
Concept of Management
- Traditional Concept: It refers to the concept under which work is done through others.
- Modern Concept: It refers to the concept which involves a process to get the things done in an effective and efficient manner.
Objectives of Management
- Organisational Objective: It is one of the main objectives of any organisation wherein all the resources that are present in an organisation are fully utilised to achieve the goals. Some of its objectives are as follow:
- Survival: Every management works in such a way that it can last longer in the competitive market.
- Profit: It is another objective of the organisation to earn profit through the activities which are performed in an organisation.
- Growth: Every business wants to expand its business or organisational activities which can be measured by sales, number of employees etc.
- Social Objective: It refers to the objective under which the interest of the society is taken in mind while doing management activities. Some of the examples are; providing employment opportunities, saving environment from pollution etc.
- Personal Objective: The objectives which are in respect of the employees of the organisation, can be fulfilled in the following ways:
- Financial Needs: It includes good salary, perquisites etc.
- Social Needs: It includes healthy working environment in the organisation
- Higher Level Needs: It includes opportunity for the self-development to establish harmony.
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Features and Characteristics of Management
- Management is Goal Oriented: Management realises the goals of the organisation as it can be different for every individual and it encourages the employees to put in their best efforts.
- Management is all Pervasive: Pervasive is the term which means everywhere. Therefore management is not restricted to any single organisation but applicable to all the organisation whether big or small, profit-making or non-profit making organisations.
- Management is Multi-Dimensional: It is a group of activities which is performed mainly in three ways:
- Management of Work
- Management of People
- Management of Operation
- Management is a Continuous Process: Under management, a series of activities is performed which is never ending.
- Management is a Group Activity: It is not performed by an individual but performed by a group of individuals to achieve the target.
- Management is Intangible Force: Management is an intangible force which cannot neither be seen nor touched but can be felt during the functioning of the organisation.
Significance of Management
Anything – Management = Nothing
- Helps in Achieving Group Goals: Management integrates the objectives of the employees along with the goals of the organisation.
- Increases Efficiency: The efficiency of the activities to be performed is increased through good planning, organising, staffing, directing and controlling.
- Creates a Dynamic Organisation: Managers keep an eye on the activities and alter them for the survival in the dynamic environment.
- Helps in Achieving Personal Objectives: Through the directing process, an employee gets motivation and qualities of leadership by which the remuneration of the employee increases.
- Helps in Development of Society: Through good quality products and services, it generates employment opportunities therefore management helps in the development of the society.
Management as Art
Management is termed as art because it includes the use of converting theoretical knowledge into practical knowledge. Its characteristics are as follow:
- Existence of Theoretical Knowledge: Under the term theoretical knowledge an individual gets to know about how a work can be accomplished.
- Existence of Personalised Concept: Under this, an individual uses his theoretical knowledge to get the things done.
- Based on Practice and Creativity: The skills of managers can’t be derived in one day but it is a concept which requires lots of practice to become expert.
Management as Science
Management is termed as science because it includes a systematised body of knowledge which explains certain general truths whose characteristics are as follow:
- Systemaised Body of Knowledge: Management is a systemaised body of knowledge for it contains certain principles and rules which are developed after many years of research.
- Principles based on Experimentation: The continuous efforts done by the managers in order to get efficiency in the management through collecting facts, statistics and analysis.
Management as a Profession
Profession refers to the specialised knowledge and skill sets which can be used to serve different section of the society but in accordance of the management it can’t be called as a profession, only some points satisfy the term of the management as profession which are as follow:
- Well-defined body of knowledge: A well-defined body is needed to conduct all the managers. In terms of management, it applies on them.
- Service Motive: Every manager has a motive to serve to the organisation through his skill sets and experience. Therefore, management can be accepted in this term.
Levels of Management
- Top Level Management: It is the top level of management which consists of Board of Directors (BOD) and other top level managers who determine objectives, policies, activities and assemble all the resources and approve budget in such a manner that organisation can fulfill its goals efficiently.
- Middle Level Management: This level lies between the top and lower level of the organsation, it includes heads of departments, divisional heads and many other persons who act as an intermediate ad interpret policies by preparing orgaisational set-up and motivating all the employees in such a manner that coordination can be established to achieve the targets set by the top management.
- Operational Management: This level lies below the middle level which is also known as Lower-level, Supervisory level which supervises the workers by solving all the grievances of the workers inviting suggestions from workers and ensuring safe environment along with the safety of the workers and creating good relationship among workers.
Functions of Management
- Planning: Under this, plans are made to achieve the targets performing different steps and are considered to be a futuristic approach.
- Organising: Under this, work is divided among different departments assigning them the duties, grouping task, establishing authority and allocating the resources in such a manner to carry out specific plan.
- Staffing: In Staffing, Posts are filled with the persons and kept filled with the skilled and deserving persons.
- Directing: It includes leading, influencing and motivating the employee in such a manner so that he can perform the tasks which is assigned to him.
- Controlling: It includes certain steps whereby actual performance can be measured and can be compared to the planned performance.
Coordination- Essence of Management
Coordination refers to the process of binding-up all the activities of the organisation together so that harmony can be maintained and continuity of the organisation does not break and processes keep on going. It is considered as a different function of the management so that objectives of the organisation can be successfully met.
Features of Coordination
- Coordination Merges Group Efforts: It helps to merge all the efforts of the group in one direction to achieve the objective.
- Ensures Unity of Action: Through coordination, unity is created among different departments of the organisation.
- Continuous process: It is a continuous process which is performed every now and then.
- Pervasive in Nature: It is applicable to all the spheres of organisation whether business or non-business, profit or non-profit making organisations.
- Deliberate Function: It is a deliberate function which is performed separately.
Importance of Coordination
- Growth of the Organisation: With the increase in the size of the organisation or increase in the number of employees, it is required to establish coordination among them.
- Functional Differentiation: An organisation may have different departments with different goals as per the department. Therefore, through coordination, goals of different departments are merged together in order to meet the overall goal of the organisation.
- Interdependence: With the increase in the level of independence, greater level of coordination is required in an organisation.
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