NATURE &

SIGNIFICANCE OF
MANAGEMENT
BUDDIES
USINESS
B
SERICS BUSINESS STUDIES
Management According to Marrie and Douglas ;

“Management is the process by which a co-operative

group directs actions of others toward common
goals.”
Management is defined as the process of planning,
organising and controlling an organisation’s operations
in order to achieve the target efficiently and
effectively. It is essential for all organisations.

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Concepts of Management
(i) Traditional Concept Management is the art of
getting things done through others.

(ii) Modern Concept Management is defined as the

process (refers to the basic steps) to get the things
done with the aim of achieving goals effectively and
efficiently (effectiveness refers to achievement of
task on time and efficiently implies optimum use of
resources).
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EFFICIENCY V/S EFFECTIVENESS

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Characteristics of Management
Management is a Goal Oriented Process
Organisation’s existence is based on objectives and management is the
process which unites the efforts of every individuals to achieve the goal.

Management is All Pervasive

The use of management is not restricted, it is applicable in all
organisations big or small, profit or non-profit making.

Management is a Continuous Process

It is a never ending process. It consists of series of interrelated
functions which performs continuously.
Characteristics of Management
Management is Multidimensional
It does not contain one activity, it is a complex activity including three main activities
(a) Management of house
(b) Management of people
(c) Management of operations

Management is a Group Activity

Organisation is a collection of many individuals, every individual
contributes towards achieving the goal.

Management is an Intangible Force

It cannot be seen or touched only it can be felt in the way the
organisation functions.
Objectives of Management

Organisational Social Personal

Objectives Objectives
(a) Survival It exists for a long
Objectives
Objectives of
time in the competition market. Involves employees like good
(b) Profit It provides a vital
incentive for the continued creation of salary, promotion,
successful operations.
social recognition,
(c) Growth Success of an benefit for healthy working
organisation is measured by
growth and expansion of society. conditions.
activities.
Importance of Management
Management Helps Achieving Group Goals
It integrates the objective of individual along with organisational
goal.

Management Increases Efficiency

It increases productivity through better planning, organising,
directing the activities of the organisation.

Management Creates a Dynamic Organisation

Organisation have to survive in dynamic environment thus
manager keep changes in the organisation to match
environmental changes.
Importance of Management
Management Helps in Achieving Personal Objectives
Through motivation and leadership, management helps in
achieving the personal objectives.

Management Helps in the Development of Society

It provides good quality products and services, creates
employment, generate new technology in that sense it helps in the
development of the society.
MANAGEMENT AS AN ART
Art is the experienced and personal utilisation of subsisting information to
accomplish solicited outcomes. It can be procured via education, research and
practice. As art is involved with the personal utilisation of data some kind of
inventiveness and creativity is needed to follow the fundamental systems acquired.

It show several characterstics of art such as

1.The presence of theoretical knowledge:

Art assumes the presence of specific academic knowledge. Specialists in their particular fields have
obtained specific elementary postulates which are appropriate to a specific sort of art. For instance,
the literature on public speaking, acting or music, dancing is publicly acknowledged.
2.Personalised application:
The application of this primary information differs from person to person. Art, hence, is a highly
personalised notion.

3.Based on custom and creativity:

Art is practical. Art includes the creative practice of subsisting intellectual knowledge. We know
that music is based on 7 notes. However, what makes the style of a musician different or distinctive is
his performance of these notes in an artistic way that is uniquely his own solution.
MANAGEMENT AS A SCIENCE
Science is an organised collection of knowledge that emphasises definite universal
truths or the action of comprehensive laws. The central characteristics of science
are as follows:

1.The organised body of knowledge: Science is a precise entity ofknowledge.

Its systems are based on a purpose and consequence association.
2.Universal validity: Scientific conventions have global genuineness and
application.
3.Systems based on experimentation: Scientific conventions are originally
formed via research and then tested via repeated trial and error under the
regulated situations.
MANAGEMENT AS A PROFESSION
The profession can be described as an occupation upheld by specific education and
practice, in which entry is limited. A profession has the following features:

The well-defined theory of knowledge:

All services are based on a well-defined form of education that can be procured through
education.

Restricted entry:
The entrance to a profession is defined through an examination or through obtaining an educational degree. For instance, to
become a chartered accountant in India an aspirant has to clear a detailed examination regulated by the Institute of Chartered
Accountants of India (ICAI).

Professional community:
All professions are affiliated to a professional association which controls entry, presents a certificate of training and
expresses and supports a system of government. To be qualified to study in India, lawyers have to become members of the
Bar Council which monitors and regulates their actions.
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LEVELS OF MANAGEMENT
FUNCTIONS-LEVELS OF MANAGEMENT
TOP LEVEL MIDDLE LEVEL LOWER LEVEL
Interpretation of the policies Issuing of orders and
Determination of the framed by the Top Level instructions
objectives for the Management Preparation of plan for
organization activities
Selection of suitable operative
Framing of plans and policies Assigning and assisting in work
and supervisory personnel
Coordination and control of Representing workers’
Assigning of duties and
the performance grievances
responsibilities to the Lower
Analysis of the business Ensuring a safe and proper
environment
Level Management
work environment
Setting up an organizational Motivating employees to get
Helping the middle level
framework desired objectives
management
Assembling of the resources Cooperating with the entire
Encourage initiative of
organization employees
FUNCTIONS OF MANAGEMENT
It refers to deciding in advance what to do, how to do
and developing a may of achieving goal efficiently and
PLANNING effectively.
It refers to the assigning of duties, grouping tasks,
ORGANISING establishing authority and allocating of resources
required to carry out a specific plan.
STAFFING It implies right people for the right job.
It involves leading, influencing, motivating employees to
DIRECTING perform the task assigned to them.

It refers to the performance measurement and follow

CONTROLLING up actions that keep the actual performance on the
path of plan.
COORDINATION-The Essence of Mangement
Co-ordination means binding together all the activities such as purchase, production, sales,
finance to ensure continuity in the working of the organisation. It is considered as a separate
function of management, in order to achieve harmony among individual, efforts towards the
accomplishment of goods.

CHARACTERSTICS OF COORDINATION
(i) It integrates group efforts.
(ii) It ensures units of action.
(iii) It is a continuous process.
(iv) It is an all pervasive function.
(v) It is the responsibility of all
managers.
IMPORTANCE OF COORDINATION
Growth in Size:
When there is a growth in size, the number of people employed by the organisation also increases.
Thus to integrate the efforts, co-ordination is needed.

Functional Differentiation
In an organisation, there are separate department and different goals. The process of
linking these activities is achieved by co-ordination.

Specialisation:
Modern organisation is characterised by a high degree of specialisation. Co-ordination is required among
different specialists because of their different approaches, judgement etc.
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