NATURE AND SIGNIFICANCE OF MANAGEMENT

Successful organisations do not achieve their goals by chance but by

following a deliberate process called management.
Management is a process of getting things done with the aim of achieving
goals effectively and efficiently.

The concept of Management insists on three terms:

1. Process: Process refers to series or sequence of steps, management is a
process because it performs series of functions to get the things done.
These functions are planning organising, staffing, directing and controlling.

2. Effectiveness: It is concerned with doing the right task, completing

activities or achieving the goal on time.

3. Efficiency: It refers to do the task in the right way.

RELATION BETWEEN EFFICIENCY AND EFFECTIVENESS

Effectiveness and efficiency are equally important as being effective means

completing the task but it is not enough to just complete the task,
Organisation it must be done correctly without any wastage of resources.
Effectiveness and efficiency are the two sides of a same coin, one without
other is of no use.

FEATURES OF MANAGEMENT
1. Management is Goal-oriented Process. Management always aims at
achieving the organisational objectives. The functions and activities of
manager lead to the achievement of organisational objectives.
2. Management is Pervasive: Managerial activities are performed in all
types of organisations, in all departments and at all levels.

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3. Management is multi dimension :Management does not mean one single
activity includes three main activities:
(a) Management of work
(b) Management of people.
(c) Management of operations
• Management of work. All organisations are set up to perform some
task or goal. Management activities aim at achieving goals to be
accomplished.
• Management of people: People refer to human resources and human
resources are the most important assets of an organisation.
Management has to get task accomplished through people by making
their strength effective and their weakness irrelevant.
Managing people has two dimensions:
• Taking care of employee's individual needs.
• Taking care of group of people.
• Management of operations: Operations refers to activities of
production cycle such as buying inputs, converting them into semi-
finished goods, finished goods
4. Management is a Continuous Process: Management is a continuous or
never ending function. All the functions of management are performed
continuously, for example, planning, organising, staffing, directing and
controlling are performed by all the managers all the time.
5. Management is a Group Activity: Management always refers to a group
of people involved in managerial activities.
6. Management is a Dynamic Function: Management has to make changes
in goal, objectives and other activities according to changes taking place
in the environment.

7. Intangible: Management function cannot be physically seen but its

presence Can be felt.
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 OBJECTIVES OF MANAGEMENT
Objectives are the ends towards which the activities of an organisation are
directed
objectives of an organisation can be of three major categories:
1. Organisational objectives
2. Social objectives
3. Personal objectives
The three important organisational objectives of a manager are:
1) Survival: The basic purpose of every organisation is to survive and exist
in the competitive market for a long period of time and it is possible
only when it is able to cover its cost.
2) Profit: The most important objective of every organisation is earning
profit. Profit is essential for survival, growth and expansion of business.
Profit is the reward given to businessman for bearing risk.
3) Growth: Business organisation must grow and expand their activities.
The success of any organisation is measured by the growth rate and
growth is measured in terms of sales, number of branches, number of
products, number of employees, etc.

SOCIAL OBJECTIVES
Social objectives of the organisations deal with the commitment of the
organisation towards the society.

The major social objectives of organisations are:

1.Supply of quality products at reasonable prices.
2.Contribution towards desirable civic activities.

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3.Generation of economic wealth.
4.Generation of employment opportunities.
5.Financial support to community.
6.Organising educational, health and vocational training programmes.
7.Participating actively in social service projects of Government and NGOs.
8.Using environmental friendly methods of productions.
9.Providing employment opportunities to weaker section of society.

PERSONAL OBJECTIVES / HUMAN OBJECTIVES / INDIVIDUAL

OBJECTIVES
Individual objectives are related to the employees of the organisation.
The main individual objectives of management are:
1. Competitive salary to fulfil financial needs of employees.
2. Promotion, training, personal growth and development of employees
to fulfil needs of employees.
3. Peer recognition, self-respect, respect for colleague to fulfil social need.
4. Good and healthy working conditions for safety of employees
IMPORTANCE OF MANAGEMENT
1. Management helps in achieving group goal: Management tries to
integrate the objectives of individuals along with organisational goal.
Management directs the efforts of all the individuals in the common
direction of achieving organisational goal.

2. Management increases efficiency: Managers try to reduce the cost and

improve productivity with minimum wastage of resources. Management
insists on efficiency and effectiveness in the work through planning,
organising, staffing, directing and controlling.

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3. Management creates a dynamic organisation: Organisations have to
survive in dynamic environment so managers keep making changes in the
organisation to match the environmental changes.
4. Management helps in achieving personal objectives: An efficient manager
is the one who brings maximum freedom for employer as well as
employees.
5. Management helps in development of society: Efficient management
always has multiple objectives, they give due importance to social
obligations, towards different groups of people such as employees,
customers, suppliers, etc.

NATURE OF MANAGEMENT
1. MANAGEMENT AS A SCIENCE: Science can be defined as a systematic and
organised body of knowledge based on logically observed findings, facts
and events
features of science are:
1. Systematic body of knowledge: In science organised and systematic
study material is available which is used to acquire the knowledge of
science. So, first feature of science is present in management.
2. Principles are based on experimentation: Scientific principles are
developed through observations and then tested through repeated
experiments. The management principles are also developed through
observation and experiments but since management deal with human
being and human behaviour cannot be accurately predicted. This
feature of science is partially present.
3. Universal validity: Scientific principles have universal application and
validity. Management principles are not exact like scientific principles.
They have to be modified according to the given situation. So, this
feature of science is not present in management.
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2. MANAGEMENT AS AN ART: Art can be defined as systematic body of
knowledge which. requires skill, creativity and practice to get perfection.
The main features of art are:
1. Systematic body of knowledge: In every art there is systematic and
organised study material available to acquire theoretical knowledge of
the art. In management also there is systematic and organised body of
knowledge available 10. So, this feature of art is present in management
also.
2. Personalised application: In the field of art only theoretical knowledge
is not enough. Every artist must have personal skill and creativity to
apply that knowledge. In management also all managers learn same
management theories and principles. So, this feature of art is also
present in management.
3. Based on practice and creativity: The artist requires regular practice of
art to become more fine and perfect. Without practice artists lose their
perfection. Art requires creative practice, i.e., artist must add his
creativity to the theoretical knowledge he has learned. Same way with
experience managers also improve their managerial skills and
efficiency. So this feature of art is also present in management.

3. MANAGEMENT AS A PROFESSIONAL: Profession can be defined as an

occupation backed by specialised knowledge and training, in which entry
is restricted.
The main features of profession are:
1. Well-defined body of knowledge: In every profession there is practice
of systematic body of knowledge which helps the professionals to gain
specialised knowledge of that profession. In case of management also
there is availability of systematic body of knowledge. So presently this
feature of profession is present in management also.

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 2. Restricted entry: The entry to a profession is restricted through an
examination or degree. Whereas there is no legal restriction on
appointment of a manager, anyone can become a manager
irrespective of the educational qualification. But now many companies
prefer to appoint managers only with MBA degree. So, presently this
feature of profession is not present in management
3. Presence of professional associations. For all the professions, special
associations are established and every professional has to get himself
registered with his association before practising that profession. In
case of management various management associations are set up at
national and international levels. So, presently this feature of
profession is not present in management but very soon it will be
included and get statutory backing also.
4. Existence of ethical codes: For every profession there are set of ethical
codes fixed by professional organisations and are binding on all the
professionals of that profession. In case of management there is force
on ethical behaviour of managers. So, presently this feature of
profession is not present in management.

5. Service motive: The basic motive of every profession is to serve the

clients with dedication. Whereas basic purpose of management is
achievement of management goal.So presently this feature of
profession is not present but very soon it will be included.

LEVELS OF MANAGEMENT
1. Top level management.
2. Middle level management.
3. Supervisory level, operational or lowe level management

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1. TOP LEVEL MANAGEMENT: It includes group of crucial persons essential for
leading and directing the efforts of other people. The managers working at
this level have maximum authority.
Main functions of top level management are:
1. Determining the objectives of the enterprise: The top level managers
formulate the main objectives of the organisation. They form long term
as well as short term objectives.
2. Framing of plans and policies: The top level managers also frame the
plans and policies to achieve the set objectives.
3. Organising activities: It is to be performed by persons working at middle
level. The top-level management assigns jobs to different individuals
working at middle level.
4. Assembling all the resources such as finance, fixed assets, etc: The top
level management arranges all the finance required to carry on day to
day activities. They buy fixed assets to carry on activities in the
organisation.
5. Responsible for welfare and survival of the organisation: Top level is
responsible for the survival and growth of the organisation. They make
plan to run the organisation smoothly and successfully.

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2. MIDDLE LEVEL MANAGEMENT: They act as a linking pin between top and
lower-level management. They also exercise the functions of top level for
their department.
Main functions of middle level management are:
1. Interpretation of policies framed by top management to lower level:
Middle management act as linking pin between top level and lower level
management.
2. Organising the activities of their department for executing the plans
and policies: Generally middle level managers are the head of some
department. So they organise all the resources and activities of their
department.
3. Finding out or selecting and appointing the required employees for
their department: The middle level management selects and appoints
employees of their department.
4. Motivating the persons to perform to their best ability: The middle
level managers offer various incentives to employees so that they get
motivated and perform to their best ability

3. SUPERVISORY LEVEL / LOWER LEVEL / OPERATIONAL LEVEL: Managers

of this group actually perform the activities according to the plans of top
and middle level of management. The authority is limited.
Functions of lower-level management are:

1. Representing the problems of workers.

2. Maintaining good working conditions and developing healthy relations

between superior and subordinate.

3. Looking to safety of workers

4. Minimising the wastage of materials and maintaining safety standards.

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 FOCUS OF MANAGEMENT FUNCTION AT DIFFERENT LEVELS:
1. Top level concentrate on planning and organising.
2. Middle level keeps their focus on staffing and coordination.
3. Lower-level focus on directing and controlling as they give direction to
workers.
FUNCTIONS OF MANAGEMENT
1. Planning: Planning can be defined as "thinking in advance what is to be
done, when it is to be done, how it is to be done and by whom it should be
done.
2. Organising: Identifying and grouping different activities in the organisation
and bringing together the physical, financial and human resources to
establish most productive relations for the achievement of specific goal of
organisation.
3. Staffing: Staffing consists of manpower planning, recruitment, selection,
training, compensation, promotion and maintenance of managerial
personnel. Staffing involves, finding the right person for the right job
having the right qualification, doing the right job at the right time.
4. Directing: Directing means instructing , inspiring , guiding and motivating
employees in the organisations.
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5. Controlling: Controlling function can be defined as comparison of actual

performance with the planned performance. If there is any difference or
deviation then managers try to find out the reasons of deviation and
suggest corrective measures to come on the path of plan.

COORDINATION

The process by which manager synchronises the activities of different

departments is known as coordination.

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 COORDINATION THE ESSENCE OL MANAGEMENT

1. Coordination is needed to perform all the functions of management: The

process of coordination begins at planning stage when top management
plans for whole organisation. Based on plans then organisational structure
is developed. Staff is selected and trained as per organisation structure
and plan. To ensure right execution of plan directions are given.
Controlling ensure no difference between plan and actual performance.
2. Coordination is required at all the levels:
1. Top level requires coordination to integrate all the activities of
organisation.
2. Coordination is required at middle level to balance the activities of
different departments.
3. Lower level requires coordination to integrate the activities of workers.
3. Coordination is the most important function of an organisation: Any
company which fails to coordinate its activities cannot survive and run
successfully for a long period of time. It is through the process of
coordination that a manager ensures orderly arrangement of individual
and group efforts in realisation of common objectives.

FEATURES OF COORDINATION
1. Coordination integrates group efforts. The concept of coordination
always applies to group efforts. There is no need for coordination when
only single individual is working.
2. Ensure unity of efforts: The main aim of every manager is to coordinate
the activities and functions of all individuals to common goal.
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3. Continuous process: Coordination is a non-ending function. It is a

continuous function. The managers work continuously to achieve
coordination and maintain coordination because without coordination
companies cannot function efficiently.

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4. Coordination is a pervasive function: Coordination is a universal function,
it is required at all the levels, in all the departments.

5. Coordination is the responsibility of all managers: Coordination is not the

task of only top level managers but managers working at different levels
try to coordinate the activities of organisation.

IMPORTANCE OF COORDINATION/NEED OF COORDINATION

1. Growth in size: The need of coordination increases with the increase in

size of organisation because in large organisation there are more number
of persons working, each individual has his own needs and objectives, so
there is more need to bring together or synchronise the efforts of these
employees towards common goal.

2. Functional differentiation: The functions of an organisation are divided

into different departments, sections or divisions and each department
works in isolation by giving more importance to its objective. So,
coordination is needed to minimise the differences among departments.

3. Specialisation: In large and modem organisation there is high degree of

specialisation and the specialists or experts. There are number of
specialists working in the organisation. If all of them work in their own way
it will result in chaos and confusion. So, there is need to coordinate the
activities of all the specialists in a common direction and get maximum
benefit of these specialists.

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