Nature & Significance of Management

Contents:

• Introduction
• Definition
• Concept of Management
• Characteristics of Management
• Objective of Management
• Importance of Management
• Nature of Management
• Levels of Management
• Functions of Management
• Coordination

Introduction:

Management is essential for all organisation big or small, profit or non profit or manufacturing management is necessary so that individual make their best contribution toward group objectives.

Managers take decisions who will do what, when to do it & what resources they will need.

Basic job of managers is optimum utilisation of resources-physical,financial and human resource to achieve organisational goals.

Definition:

• Management is a process of designing & maintaining an environment in which individuals, working together in groups  efficiently accomplish selected goals.

Koontz& Heinz Weihrich

• Management is defined as process of planning, organising. actuating an organisational operations in order to achieve coordination of the human resources in an effective & efficient attainment of objectives.

Trewelly & M.Gene Newport

Concept of Management:

• Process
• Efficiency
• Effectiveness

Process:   

Process is nothing but  functions of management- Planning, organising, staffing, directing, controlling etc.

Efficiency: 

Efficiency: It includes cost benefit analysis. It focus on deriving more benefits by using less  resources insists of using less resources such as money, material, equipment's to get more output. 

Effectiveness:

Being effective or doing work effectively means doing the task on time or achieving the organisational goals.

Relation between Efficiency & Effectiveness:

• Effectiveness & Efficiency both are equally important as being effective means completing the task but it not enough to just complete the task, it must be done correctly without wastage of resources.
• Effectiveness & Efficiency are the 2 sides of coin one is without & 2nd is of no use.
• Effectiveness & Efficiency both make higher profit & prosperity for an organisation.
• Failure of an organisation means ineffectiveness and in efficiency.

Characteristics:

• Goal oriented process: Management always aims at achieving the organisational goals.                                                                  The functions and activities of manager leads to achievement of organisational goals.                                                                        Management unites the efforts of different individuals in the organisation towards achievement of goals.
• Management is pervasive:Managerial activities are performed in all types of organisation, in all departments & at all levels.       Management is required in all organisation big or small , profit or non profit making organisation.                                                  Concept of management is used in whole world.
• Management is multi-Dimensional:Management does not means one single activity but it includes 3 main activities-

1. Management of work
2. Management of people
3. Management of operations

_ Management of work - It includes planning, organising,             controlling.

_Management of people- It includes Staffing , directing.

_Management of operations- It includes production sales and purchases.

• Management is continuous process: Management is continuous or never ending process.                                               All functions of management are performed continuously by managers at all time.
• Management is a group activity: Management always refers to group of people involved in managerial activity.                            The result of management affects every individual & department of an organisation so it refers to a group effort not a individual effort of one person.
• Management is a dynamic function:Management has to make changes into goals or objectives according to the change of environment.                                                                                    The external environment such as technical, social,political has great impact on over the management.                                            Changes are made for survival of an organisation in the competitive world.
• Management is intangible:Management cant be seen but its presence can be felt.                                                                        Management can be felt by orderliness & coordination in working environment.

Objectives:

_Organisational objectives

_Social objectives

_Personal objectives

1. Organisational objectives- it includes survival profit & growth.
2. Social objectives- it includes quality products, reasonable price, economic wealth, economic opportunity.
3. Personal objectives-it includes adequate salary, good working conditions, peer recognition, training & development & social recognition.

Importance:

• Creates dynamic organisation
• Improves efficiency
• Helps in achieving group goals
• Helps in development of society
• Helps in achieving personal objectives.

_Helps in achieving group goals:Management is required not for itself but for achieving goals of the organisation.                                    Task of manager is to give common direction to the individual effort in achieving the overall goal of organisation.

_Improves efficiency:The aim of manager is to reduce costs and increase productivity through:- Planning,organising,directing,staffing,controlling.

_Management creates dynamic organisation:All organisation have to function in an environment which is constantly changing.                Changes often means moving from a familiar,secure environment & newer & more challenging one.                                                             People adapt changes to maintain competitive edge.

_Helps in achieving personal objectives: Personal goals can be achieved by contributing to overall organisational objectives.              Management helps individual to develop team spirit, cooperation & commitment to group success.