NATURE AND SIGNIFICANCE OF

MANAGEMENT

Prepared by:Sandeep Kumar N V

HSST Commerce,Katukukke HSS Kasaragod
Mob:9496357371,E
mail:sandeepneelian@gmail.com
Residence :PILICODE
MANAGEMENT
The word ‘management’ can be styled as—
> manage
>men
>tactfully
Management is essential for all organisations big or small, profit
or non-profit, services or manufacturing.

No organization can work smoothly and efficiently without

management. The success of an organization largely depends upon
the efficiency of its management.
DEFINITION 1-Mary Parker Follet

“Management is an art of getting

things done through other people”
DEFINITION 2 -HENRY FAYOL

“To manage is to
forecast and to plan, to
organise ,to command,
to coordinate and to
control.”
DEFINITION 3 -Henry L. Sisk
Effectiveness Vs Efficiency
Effectiveness means accomplishment of
goals
Efficiency means accomplishment of
goals at minimum possible cost through
optimum utilization of resources.
 CHARACTERISTICS OF MANAGEMENT

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1)Management is a group activity:
Management always refers to a group of
people involved in managerial activities. The
management functions cannot be performed
in isolation.
2)Management is goal oriented process:

Management always aims at

achieving the organisational objectives.
3)Management is a continuous process:

Management is a never ending

process. Management functions like
planning,organizing,staffing,directing and
controlling are performed by all managers
all the time.
 4)Management is pervasive(Universal
application):
Management activities are
universally applicable in all types
organizations anywhere in the world.
5)Management is an intangible force:
Management function cannot be physically
seen but its presence can be felt. The
presence of management can be felt by
seeing the orderliness and coordination in
the working environment.
6)Management is a dynamic function:
Management is a dynamic function and has
to adapt itself to the changing environment.
Management has to make changes in goal,
and other activities according to changes
taking place in the environment.
7)Management is multi dimensional:
It includes three main activities:
a)Management of work:All organizations are
engaged in doing some work
b)Management of people:People refer to Human
resources
c)Management of operations:Operations refer to
activities of production. Mixing management of
work with management of people(ie,1&2)
CHARACTERISTICS OF MANAGEMENT:
1)Management is a group activity
2)Management is goal oriented process
3)Management is a continuous process
4)Management is pervasive(Universal application)
5)Management is an intangible force
6)Management is a dynamic function
7)Management is multi dimensional
a)Management of work
b)Management of people
c)Management of operations
OBJECTIVES OF MANAGEMENT
 Management objectives can be
classified into three -
1)Organizational objectives:
Management is responsible for setting and achieving
objectives for the organisation. It aims at maximum
result with minimum resources

The elements of economic objectives are

2)Social objectives :

As a part of society, every organisation whether

it is business or non-business, has a social
obligation to fulfill.
3)Personal objectives :

Its aim is to improve the satisfaction level

of employees
IMPORTANCE OF
MANAGEMENT
1. Management helps in achieving
group goals:

Proper management of all individuals in

an organization is very essential for the
accomplishment of organizational
objective.
2.Management increases efficiency:
Management uses inputs efficiently by
properly allocating them to reduce the
wastage which ultimately decreases cost
and thus leads to higher profits.
3.Management creates a dynamic
organisation:
Appropriate changes must be introduced
in the organization as and when it is needed.

Management motivates employees to

adopt changes by convincing them about
the benefits of it.
4)Management helps in
achieving personal objectives:
Management not only helps in
achieving the organisational objectives
but also the personal objectives of the
employees.
5)Management helps in the development
of society:
Management develops not only the
organization but also the society
 IMPORTANCE OF MANAGEMENT
1.Management helps in achieving group
goals
2.Management increases efficiency
3.Management creates a dynamic
organisation:
4.Management helps in achieving personal
objectives
5.Management helps in the development of
society
MANAGEMENT AS
AN ART
 1) MANAGEMENT AS AN ART
Art means the application of knowledge
and personal skill to achieve desired
results. It can be acquired through study,
observation and experience.
 Features of an Art
1)Practical Knowledge:
Every art requires practical knowledge
therefore learning of theory is not
sufficient.
 2)Personal Skill(Personalised
application):
Theoretical base may be same for
every artist, but each one has his
own style and approach towards his
job. Eg:Two actors will differ in demonstrating their art
 3)Creativity
Art involves creative practice of
existing theoretical knowledge.Every
artist has an element of creativity in
line.
 4)Perfection through practice
Practice makes a man perfect.
Every artist becomes more and
more proficient through constant
practice.

In 1980 In 1990 In 2020

 5)Goal-Oriented:
Every art is result oriented as it
seeks to achieve concrete
results.
 Management can be said to bean art
since it satisfies the following criteria-
➢
Practical Knowledge is needed for a manger
➢
Personal Skill-Every manager has his own
way
➢
Creativity-Management is also creative in
nature
➢
Perfection through practice-Managers learn
through an art of trial and error
➢
Goal-Oriented -Management is a goal
oriented activity
CONCLUSION
➢
On the basis of above discussion,
we have observed that the field
of management fulfils all
features of art.
➢
Therefore, we can say,
management is an art.
MANAGEMENT AS
A SCIENCE
 2)MANAGEMENT AS A SCIENCE
Science - Systematic body of knowledge
acquired through observation and
experimentation
It is based on logically observed findings,
facts and events.
 Features of science
1)Systematic body of knowledge:
Science is a systematic body of
knowledge. In science, there is
systematic study materials available to
acquire the knowledge of science.
2)Principles based on Experimentation &
Observation:

Scientific principles are derived

through scientific investigation &
researching i.e. they are based on logic.
 3)Universal application
Scientific principles have
universal validity and that can be
applied in all situations and will be
the same result.
4)Test of Validity & Predictability :

Validity of scientific principles can

be tested at any time or any number of
times.
E.g. H2 & O2will always give H2O.
 Based on the above features, we can say that
management has some characteristics of science.
➢
Systematic body of knowledge-Management is also a
systematic body of knowledge
➢
Experimentation & Observation-Principles are based on
observation & experimentation.
➢
Universal application-Their application and use is not
universal.
➢
Test of Validity & Predictability-We cannot test the validity
of management principle.
CONCLUSION:
Management cannot be compared with the principles of physical science
like Physics,Chemistry .Therefore, management is an inexact or soft
science or pseudo-science
MANAGEMENT AS
A PROFESSION
3)MANAGEMENT AS A PROFESSION
A profession is an occupation
backed by specialized knowledge and
training and to which entry is regulated
by a representative body.
 FEATURES OF PROFESSION
1)Well-defined body of knowledge:
All professions are based on a well-
defined body of knowledge that can be
acquired through instruction.
 2)Restricted entry:
The entry to a profession is
restricted through an examination or
through acquiring an educational
degree.
 3)Professional association
For all the professions, special associations are
established and every professional has to get
himself registered with his association before
practising that profession.
 4)Ethical code of conduct:

All professions are bound by a code of

conduct which guides the behaviour of its
members.
 Based on the above features, we can say that
management has some characteristics of profession.
➢
Well-defined body of knowledge:Management is a systematic
body of knowledge

➢
Restricted entry:Anyone can become a manager irrespective of
the educational qualification.

➢
Professional association:In case of management various
management associations are set up at national and international
levels. Eg:AIMA,National Institute of Personal Management etc

➢
Ethical code of conduct:All India Management Association
(AIMA) has devised a code of conduct for Indian managers
We can conclude that presently all the features of profession are not present in
management but very soon,these will be included in the management So we can say
management is on the path of becoming a profession.
MANAGEMENT ASSOCIATIONS

Note:The National Institute of Personnel Management (NIPM) is

a professional association for human resource management
professionals

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 LEVELS OF
MANAGEMENT

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LEVELS OF MANAGEMENT
Levels of Management’ refers to a line of
demarcation between various managerial
positions in an organization.

There are generally three levels of

management. They are-
1)Top Level
2) Middle Level
3)Lower Level
1)Top Level(Higher/Administrative level):
The top management is the ultimate
source of authority and it manages goals
and policies for an enterprise. It devotes
more time on planning and coordinating
functions.
Top level management consists of -

Chief operating officer (coo)

Chief executive officer (ceo)

Chief financial officer (cfo)

President

Vice president

Managing Director

Chairman

Board of directors etc
Functions of Top Level Management:
1)Lays down the objectives of the business
organization.
2)Preparing the plans and policies to achieve
the set objectives.
3)They appoint the executives for middle level.
4)Controls all the departments of the
organization.
5)Builds and maintain relations with outside
public.
6)Co-ordinates the activities.
2) Middle Level
(Executory level):
 TOP

MIDDLE
2) Middle Level (Executory level):
Middle level management consists of
departmental heads. They are responsible for
implementing the plans and strategies developed by
top level managers.
They receive orders and instructions from top
managers and get the work done through lower
managers. They act as a link between top
management and supervisory management.
Middle level management consists of -


Production manager

Purchase manager

Sales manager

Marketing manager

Finance manager

Human resource manger
Functions of Middle Level Management:

1)Implement the policy decisions made by the

top management.
2)Communicating policies of top level to the
lower level.
3)Directing the managers at the lower level.
4)Reporting to top level management.
5)Watch day to day results.
6)Organizing the activities of their concerned
department.
3)Lower Level
(Supervisory or Operational)
Management:
3)Lower Level (Supervisory or
Operational) Management:
Lower level is also known as supervisory /
operative level of management.

They assign specific jobs to the workers,

evaluate their performance and report to the
middle level management.
Lower level management consists of -

Supervisors

Foreman

Section officers

Superintendent

Overseer
Functions of Lower Level Management:
1)Assigning duties to individual workers.
2)Planning of day to day work
3)Act as a link between middle level
management and workers.
4)Provide on the job training to workers.
5)They help to solve the grievances of the
workers.
6)They ensure discipline in the enterprise.
7)They motivate workers.
8)Ensure the safety of workers.
FUNCTIONS OF
MANAGEMENT
1)Planning:
2)Organising:

3)Staffing:
4)Directing:
5)Controlling:
FUNCTIONS OF MANAGEMENT
FUNCTIONS OF MANAGEMENT:
The activities or elements which a
manager performs are called functions of
management.
They are planning, organizing, staffing,
directing and controlling.
1)Planning:
Planning:
Planning means deciding in advance what to do
and how to do it. Planning is a process of thinking
before doing.
Planning is concerned with the determination of
the objectives to be achieved and the course of
action to be followed to achieve them.
2)Organising:
Organising:
Organising refers to identification and
grouping of activities to be undertaken in the
organization and establishing an organizational
structure to execute the plan. It includes-
a)Identification & grouping of activities.
b)Bring together all resources.
c)Establish a productive relation.
3)Staffing:
Staffing:
Staffing refers to procure suitable
employees to fill various jobs in the
enterprise. Its aim is to place the right
person for the right job and at the right
time.

Staffing includes recruitment of employees, their

selection, placement, training, promotion, transfer,
remuneration etc.
4)Directing:
 Directing:
It is concerned with instructing, guiding,
and inspiring people in the organization to
achieve organizational goals.

Directing is not only issuing orders and

instructions by superior to subordinate, but also
guiding, motivating and leading them.
5)Controlling:
Controlling:
It deals with the measurement and
correction of the performance of persons
against the predetermined standard.

It involves the following steps:

Co ordination:
Co ordination:
 Coordination refers to the process of
integrating the activities of different units of an
organization to achieve the organizational goals.
 Coordination is needed in all the functions
of management and in all the levels of
management, therefore, coordination is
considered as the essence of
management.
Coordination: The Essence of Management

a)Coordination is needed to perform all the

functions of management

b)Coordination is required at all levels of

management

c)Coordination is the most important function of an

organization
Features of Coordination:
1)Coordination Integrate Group Efforts:
Coordination unifies unrelated or
diverse interests into purposeful work
activity.
2)Coordination ensures unity of action:
It acts as the binding force between
departments and ensures that all action is aimed at
achieving the organisational objective.

Eg: Purchase department should purchase enough material

which are necessary for the production department. Imbalance
between these two departments will cause loss to the
organization.
3)Coordination is a continuous process:
Coordination is not a one time
function, it is a continuous process.

Management is a continuous process and

coordination is associated with all other functions
of management, so that it is a continuous process.
4)Coordination is a pervasive function:

Coordination is a universal function; it is

required at all levels, in all departments and to
perform all the functions due to interdependence
of various activities on each other.
5)Coordination is the responsibility of
all managers:
Top level managers coordinate the overall
plans and policies of organization, middle
level try to coordinates the departmental
activities and lower level coordinates the
activities of workers.
IMPORTANCE OF
COORDINATION:
1)Growth in size:
In large organization there are more
number of persons working, each
individual has his own needs and
objectives, so there is more need to
harmony individual goals and
organizational goals through
coordination.
2)Functional Differentiation:
The functions of an organization are
divided into various departments like
production, finance, marketing, human
resources etc. Coordination is needed to
ensure unity of action of various departments.
 3)Specialization:
Now a days many organizations appoint
specialists in different jobs. They do not take
advice from others. Here also coordination plays
an important role to bring harmony among
these personnel for the benefit of the
orgnaisation.
Elements of Co -ordination:

a)Integration
b)Balancing
c)Timing

Prepared by:Sandeep Kumar N V

HSST Commerce,Katukukke HSS Kasaragod
Mob:9496357371,E mail:
sandeepneelian@gmail.com
 Management in 21 st Century:
As today the whole world is a global village
where countries are exchanging technologies,
goods and services with each other. The
modern organisation is a global organisation
that has to be managed in a global
perspective.
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