Chapter

Nature of Management

MEANING OF MANAGEMENT:
Traditional viewpoint:
Management is the art of getting things done through others. This point has been criticised on the following grounds:

1) It fails to reveal the function of a manager and skills used for getting things done.
2) Treat people as tools & does not consider their feelings, emotions and needs. 3) It is of manipulative character Modern viewpoint:
Management is the force that unifies human as well as non-human resources in the service of organizational goals. It is a process of getting results with and through people.

Management is concerned with ideas, things and people.

Ideas provide the basic inputs and inspiration in the management process. Things refers to mobilisation, allocation and deployment of materials, machinery, technology and other facilities to convert ideas into results and performance. People refers to procurement, development, maintenance and integration of human beings working in the organisation.

Management is the effective utilisation of human & material resources to achieve the enterprise objectives.

CONCEPT OF MANAGEMENT
Management is the process of getting things done with the aim of achieving organizational objectives effectively and efficiently. Or Management is the creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform efficiently and effectively towards the attainment of the group goals (Koontz). Basic elements of definition are as follows: a) Process b) Effectiveness c) Efficiency d) Organizational objective
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Definition:

CONCEPT OF MANAGEMENT
Management Defined

Prof Haimann has interpreted the term management in three distinct aspects:
a) b) c)

Management as a field of study or a subject. Management as a team or class of people or a noun. Management as a process. According to George R. Terry, Management is a distinct process . . . performed to

determine and accomplish stated objectives by the use of human beings and other
resources.

Management As A Noun
In popular usage, management refers to a group of people who direct the activities of other people and material resources towards the attainment of predetermined goals.

Management as a Process
Management as a process refers to a series of inter-related functions, such as planning, organising, staffing, leading and controlling. It consists of social process, integrating process, continuous process.

Management as a Group/Team
The term management is used to denote the persons who manage the affairs of an organisation. Thus, as a group of persons, management includes all those who are responsible for making decisions and supervising the work of others.

Management as a Discipline
As a discipline, management is a specialised branch of knowledge which involves the study of certain principles and practices.

Management as an Activity
Management refers to a separate class of activities which are performed by managers. Managerial activity consists of planning, organising, staffing, directing and controlling. It consists of Informational, decisional, Interpersonal activities.

CONCEPT OF MANAGEMENT
Managerial Concerns
Efficiency
Doing

things right

Getting the most output for the least inputs

Effectiveness
Doing

the right things

Attaining organizational goals

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CONCEPT OF MANAGEMENT
Effectiveness and Efficiency in Management

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Characteristics of Management
The various interpretations of management emphasise three things: (i) management is a process and involves a series of continuing and related activities, (ii) it tries to concentrate on reaching organisational goals, (iii) and it reaches these goals by working with and through other people and other organisational resources. The important features which reveal the nature of management may be stated thus: Management is intangible Management is goal-oriented Management is universal process Management is a social process

Management is a group activity

Management is both science and art Management is a continous process Management is multidisciplinary
Cont

Importance of Management
The importance of management can be understood from the following points: Optimum use of resources

Effective leadership and motivation

Establishes sound industrial relations Achievement of goals Change and growth Improves standard of living

Management Vs. Administration

There are three points of view: 1. Administration is above Management- Americans point of view 2. Administration is a part of Management-British school of thought 3. Administration and Management are one and same. So, to resolve the conflict between both the terms, management has been classified into: Administrative Management Operative Management

Distinction between Administration and Management

Point of distinction
Nature Scope

Administration
Thinking function (what is to be done and when). Determines broad objectives and policies. Top level function. Conceptual and human skills. Mostly in government, military, educational, social and cultural organisations.

Management
Doing function (who should do it and how). Implements plans and achieves goals through people. Middle and lower level function. Technical and human skills. Mostly in business organisations.

Level Skills needed Usage

Management as an ART

Art involves systematic application of theoretical knowledge and personal skills to achieve desired results. Art represents the how of human behaviour because it is the knowhow to accomplish concrete practical results. Management is an art because of following reasons: Involves knowledge and skills Achieve practical results It is creative Personalised process Requires judgement and skills

Management as a Science

Science is an organised or systematised body of knowledge as it establishes cause and effect relationship between different variables and contains concepts, principles and theories. It represents why of human behaviour.

FEATURES OF SCIENCE: - Systematized body of knowledge - Observations and experiments - Universal validity

Levels of Management
Top

management Middle management Supervisory management

Skills of Management
Technical

skills Human skills Conceptual skills

Henry Mintzberg Managerial Roles

Managers fill many roles as they carry out the management functions. These roles can be grouped into three categories: Interpersonal roles Figurehead Liaison Leader Informational roles

Monitor Disseminator Spokesman Decisional roles Entrepreneur Disturbance Handler Resource Allocator Negotiator

Managerial Roles

Interpersonal Roles- involve interaction with people.

Figurehead: managers perform symbolic duties, for eg. Making speeches, welcoming officials visitors, distributing gifts to retiring employees.
Leader: Manager Motivates, inspires, sets an example for the employees

Liaison: Maintain relationship with outsiders (other organisations, governments, industry groups etc.

Managerial Roles

Informational role: involves collection, use of information for the purpose of communication.

-Monitor: observes, collects and review the information about his organisation and external events.
-

Disseminator: transmits information and judgements about internal and external events. Spokesman: speaks for organisation, engages in public relations.

Managerial Roles

Decisional Roles: involves taking decisions about various issues in the organisation.

-Entrepreneur: Initiates changes, authorises action, sets goals, formulates plans.

-

Disturbance handler: handles conflicts, complaints and competitive actions.

Resource allocator: Approves budget and schedules, sets priorities and distributes resources. Negotiator: bargains with suppliers, dealers, trade union, agents etc.

Functions of Management
Managers are known by the work they do, the functions they perform. According to the functional approach, in every organisation managers perform certain basic functions in order to achieve results. These functions may be broadly classified into five categories:

planning,
organising, directing, staffing and controlling.

Coordination and Cooperation

Coordination is the orderly arrangement of group efforts to provide unity of action in the pursuit of a common purpose. It is a deliberate effort by manager. Cooperation denotes collective efforts of group members who contributed voluntarily to accomplish a particular objective. It is voluntary attitude of Org. members.

Coordination-the Essence of management

Every function of management is an exercise in coordination:
PLANNING ORGANISING

1.Planning 2.Organising 3.Staffing 4.Directing 5.Controlling

CONTROLLING

MANAGEMENT
STAFFING

DIRECTING

THANKS