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    Nature and significance of Management

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    Manshi Das

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    Nature and significance of Management

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    Manshi Das
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    2 views5 pages

    Nature and significance of Management

    Uploaded by

    Manshi Das

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Nature and significance of Management (CH - 1)

    CONCEPT OF MANAGEMENT:
    Management is the process of getting things done with the aim of achieving goals effectively
    and efficiently.

    PROCESS
    ‘Process’ in the definition of Management means the primary functions or activities that
    management perform to get things done.
    Management is described as the process of Planning, Organizing, Directing, and Controlling the
    efforts of organizational members and of using organizational resources to achieve goals.

    EFFECTIVENESS
    ‘Effectiveness’ being effective or doing work effectively basically means finishing the given task.
    Effectiveness is concerned with doing the right task, completing activities and achieve goals. In
    other words, it is concerned with end result i.e., finishing the given task.

    EFFICIENCY
    ‘Efficiency’ it is not enough to just complete the tasks. There is another aspect also, i.e., being
    efficient or as we say doing work efficiently.
    Efficiency means doing the task correctly and with minimum cost.

    EFFECTIVENESS V/S EFFICIENCY

    These two terms are different but they are Management at times has to compromise with
    interrelated. For management it is important to efficiency. For Example it is easier to be effective and
    be both effective and efficient. Effectiveness ignore efficiency i.e., complete the given task but at
    and efficiency are two sides of the same coin. high cost.

    At times, a business may concentrate more on


    producing goods with fewer resources i.e.,
    cutting down cost but not achieving the target
    production. Consequently, the goods do not
    reach the market and hence the demand for Therefore, it is important for management to
    them declines and competitors enter the achieve goals (effectiveness) with minimum
    market. this is a case of being efficient but not resources i.e., as an efficiently as possible while
    effective since the goods did not reach the maintaining a balance between effectiveness and
    market. efficiency.
    Characteristics of Management:
     Goal oriented   Group Activity
     Pervasive  Dynamic Function
     Multi-dimensional  Intangible Force
     Continuous Process
    1. MANAGEMENT IS A GOAL-ORIENTED PROCESS:
    An organization has a set of goals which are the basic reason for its existence. These should be
    simple and clearly stated. Different organizations have different goals, e.g., to earn 20% return
    on investment (ROI), to increase sales by 10%, etc. Management unites the efforts of different
    individuals in the organization towards achieving these goals.
    2.MANAGEMENT IS ALL PERVASIVE (MEANS EVERYWHERE):
    Managerial activities are performed in all types of organizations, in all departments and at all
    levels. Management is essential for all organizations, big or small, profit or non-profiteering,
    service or manufacturing.
    3.MANAGEMENT IS MULTI-DIMENSIONAL:
    Management is a complex activity that has three dimensions, these are:
    a. Management of Work: All organizations exist for the performance of some work. In
    garment store a customer’s need is satisfied and, in a hospital, patient is treated.
    Management translates this work in terms of goals to be achieved and assigns the
    means to achieve it.
    b. Management of People: Human resources or people are an organization’s greatest
    asset. Despite all developments in the technology “getting work done through people” is
    still a major task for the manager.
    The task of Management is to make people work towards achieving the organization’s goals by
    marketing their strengths effective and their weakness irrelevant.
    c. Management of Operations: Every organization has some basic product or service to
    provide in order to survive. This requires a production process of transforming input
    material and the technology into the desired output for consumption. This is interlinked
    with both the management of work and the management of people.
    4. MANAGEMENT IS A CONTINUOUS PROCESS:
    An organization is a collection of diverse individuals with different needs. Every member of the group has
    a different purpose for joining the organization but as members of the organization they work towards
    fulfilling the common organizational goal. This requires team work and coordination of individual effort
    in a common direction.
    5. MANAGEMENT IS A GROUP ACTIVITY:
    Management consists of several people who work as a group. Efforts of all the members were
    directed towards the achievement of common goals. Each and every member of the organization
    have a different purpose for joining the organization. But as a member of the organization, they
    work towards fulfilling the common organizational goal.
    6. MANAGEMENT IS A DYNAMIC FUNCTION:
    Management is a dynamic function and has to adapt itself to the changing environment. An
    organization interacts with its external environment which consists of various economic, social,
    legal, technological, and political factors. In order to be successful, an organization must change
    itself and its goals according to the needs of the environment.
    7. MANAGEMENT IS A TANGIBLE / INVISIBLE / UNSEEN FORCE:
    Management cannot be seen but its presence can be felt when targets are achieved according to
    plans, employees are happy and satisfied, and there is orderliness instead of chaos.

    Objectives of Management:
    a. Organizational Objectives b. Social Objectives c. Personnel Objectives

    1. ORGANIZATIONAL / ECONOMIC OBJECTIVES

    The main objective of any organization should be to utilize human and material
    resources to the maximum possible advantage, i.e., to fulfill the economic objectives of a
    business. These are survival, profit and growth.
    Survival: The basic objectives of any business is survival. Management must strive to ensure
    the survival of the organization, in order to survive, an organization must earn enough
    revenues to cover costs.

    Profit: Mere survival is not enough for business. Management has to ensure that the
    organization makes a profit. Profit is essential for covering costs and risks of the business.

    Growth: A business needs to add to its prospects in the long run, for this it is important for the
    business to grow. Growth of a business can be measured in terms of:
     Increase in sales Volume,
     Increase in the number of Employees,
     Increase in the number of products, or
     The Increase in capital investment, etc.
    2. SOCIAL OBJECTIVES
    It involves the creation of benefits for society. As a part of society, every organization
    whether it is business or non- business, has a social obligation to fulfill. This refers to
    consistently creating economic value for various constituents of society. This includes:
     Using environment friendly methods of production,
     Giving employment opportunities to the disadvantaged sections of society, and
     Providing basic amenities like schools and creches to employees.

    3. PERSONNEL OBJECTIVES
    Organizations are made up of people who have different personalities, backgrounds,
    experiences, and objectives. They all become part of the organization to satisfy
    their diverse needs. Management has to reconcile personal objectives with
    organizational objectives for harmony in the organization.
    Objectives of Management:

    Organizational Social
    Objectives Objectives Personnel
    Objectives

    Survival Environmentally friendly methods of Production Financial


    Needs

    Profit Quality Products Social needs

    Growth Higher Level


    Reasonable Price needs

    Employment opportunity

    Basic amenities for community

    Importance of Management:
     Management helps in achieving group goals
     Management increases Efficiency
     Management helps in Achieving Personal Objectives
     Management helps in Development of society
     Management creates a dynamic Organizations

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