The nature and purpose of management
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Table of Contents 1. Management – Concept, Objectives, Importance 1.1 Definition of Management 1.2 Nature of Management 1.3 Characteristics of Management 1.4 Objectives of Management 1.5 Importance of Management 2. Levels of Management – Top, Middle Supervisory (First Level) 2.1 Levels of Management 2.2 Managerial Skills 3. Management Functions 4. Coordination – Nature and Importance 4.1 Characteristics of Coordination 4.2 Types of Coordination Checkout Tan Print's Business Studies for NTA CUET (UG) 2022 which intends to cater to the principal needs of all the students preparing for the Common University Entrance Test (CUET) at the Undergraduate Level in the Business Studies Domain. The underlying concepts are articulated precisely. Several illustrations with examples & coherent charts are given in this book.1. Management – Concept, Objectives, Importance1.1 Definition of ManagementManagement has been defined by various scholars as: According to George R. Terry,
According to Henry Fayol,
According to Peter Drucker,
According to Harold Koontz,
According to Mary Parker Follett,
According to Ross Moore,
According to F. W. Taylor,
Thus, management can be defined as a dynamic process of utilizing the organizational resources to achieve organizational goals in an effective and efficient manner. There are certain terms which require elaboration. These are (a) process, (b) effectively, and (c) efficiently. The organizational resources that act as inputs in the process of management are: Men, Money, Materials, Machines, Methods and Markets. These are the six M’s of management. The management process is effective when the desired goal is achieved within the time. It is efficient if the desired goal is completed by using minimum resources or minimum cost. Management is said to be poor if it is effective but inefficient. Management is said to successful if it is effective as well as efficient. Management should be efficient otherwise it is useless. 1.2 Nature of Management1. Management as a Science Science as a discipline has the following characteristics: i. Systematic body of knowledge Management satisfies these requirements to a certain extent: i. Management is a systematic body of
knowledge with its own theories and principles. Thus, it can be said that management is not an exact science. It is a social science as it deals with humans or in the words of Ernest Dale – ‘Management is a soft science’. 2. Management as an Art Art implies application of knowledge. It is highly personalized activity to achieve desired goals. Since, art varies from person to person it is prone to failure. Just like any other art: i. management is also application of knowledge in different situations. Thus, management is a perfect art or rather a fine art. 3. Management as a Profession According to McFarland, various characteristics of a professional activity are: i. based on special skills and knowledge Management is a professional activity like doctors and lawyers. Although every organization tries to design their ethical codes of behaviour individually, there is absence of a uniform code of conduct. Thus, management can be considered as a developing profession. 1.3 Characteristics of Management(i) Management is a goal-oriented process: Every organisation has formed for some specific purpose. The goal of management should be to achieve these purposes. These should be simple and clearly stated. (ii) Management is all pervasive: The activities involved in managing an organisation are common to all whether it is performed economic, social or political activity. A petrol pump needs to be managed as much as a hospital or a school. Management is not only required for (iii) Management is multidimensional: Management is a complex activity that has three main dimensions. These are: (a) Management of work: (iv) Management is a continuous process: The process of management is a series of continuous, composite, but separate functions (planning, organising, directing, staffing and controlling). (v) Management is a group activity: An organisation is a group of diverse individuals with different needs. Every member of the group has a different purpose for joining the organisation but as members of the organisation they work towards fulfilling the common organisational goal. This requires team work and coordination of individual effort in a common direction. (vi) Management is a dynamic function: Management is a dynamic function and has to adapt itself to the changing environment. An organisation interacts with its external environment which consists of various social, economic and political factors. In order to be successful, an organisation must change itself and its goals according to the needs of the environment. (vii) Management is an intangible force: Management is an intangible force that cannot be seen but its presence can be felt in the way the organisation functions. 1.4 Objectives of ManagementObjectives can be classified into organizational objectives, social objectives and personal or individual objectives (i) Organisational Objectives: Management is responsible for setting and achieving objectives for the organisation. It has to achieve a variety of objectives in all areas considering the interest of all stakeholders including, shareholders, employees, customers and the government. The main objective of any organisation should be to utilise human and material resources to the maximum possible advantage, These are survival, profit and growth. (ii) Social objectives: It involves the creation of benefit for society. As a part of society, every organisation whether it is business or non-business, has a social obligation to fulfil. (iii) Personnel objectives: Organisations are made up of people who have different personalities, backgrounds, experiences and objectives. They all become part of the organisation to satisfy their diverse needs. These vary from financial needs such as competitive salaries and perks, social needs such as peer recognition and higher level needs such as personal growth and development. Management has to reconcile personal goals with organisational objectives for harmony in the organisation 1.5 Importance of ManagementImportance of management to an organization can be gauged through the activities it performs. These activities can be listed as:
2. Levels of Management – Top, Middle Supervisory (First Level)2.1 Levels of ManagementIn an organisation managers differ in their status and power. There is a line of demarcation that distinguish managers on the basis of powers and authority they enjoy. There are generally three levels of management in any organisations.
2.2 Managerial Skills1. Conceptual, Human and Technical Skills According to Robert Katz, successful management of an organization depends on application of three skills by the managers. These are: i. Conceptual Skills Conceptual skills refer to the problem-solving ability of managers. This requires managers to treat the organization as a whole, understand the functioning of various sub-systems of the organization and foresee any changes that may affect the organization. ii. Human Skills Human skill or interpersonal skill is related to manager’s attitude towards others. It refers to the ability of a manager to understand and empathise with his superiors, peers and subordinates. Thus, human skill reflect the ability to work as a group member and encourage team work. iii. Technical Skills Technical skill refers to the ability to use special skills, understand the techniques and handle materials, tools and equipment. It is primarily concerned with the methods and procedures related to various activities of the organization. A manager requires Conceptual, Human as well as Technical skills to perform his functions but the degree of skill various at different levels. At the top level, the main task of management is policy making which requires a high degree of conceptual skills and relatively low degree of technical skills. At the lower level, the main task of management is supervision and guidance of the workers which requires a high degree of technical knowledge and relatively low degree of conceptual skills. The human skill holds equal significance at all levels. 2. Hard and Soft Skills i. Hard Skills Hard skills represent the special skills required to perform a job. These are acquired and developed through studying and training. For example: proficiency in accounting or a software such as Tally is acquired by study, practice and training. ii. Soft Skills These skills are not job-specific and can be applied to a wide range of activities. These are self-taught and self-developed through experience and do not require any kind of training. For example: communication skills, problem-solving skills, ability to lead etc. 3. Management FunctionsManagement is a continuous process composed of different functions that mangers have to perform for attainment of desired goals. These functions are broadly classified into two parts: 1. Primary Functions Following are the main functions of management:
2. Secondary Functions Following are the subsidiary functions of management which are needed to be performed to carry out the primary functions:
Different scholars have stated functions of management as: Henry Fayol: According to Fayol, the process of management includes five functions: Planning, Organising, Commanding, Coordinating and Controlling. George R. Terry: According to Terry, the four functions of management include, Planning, Organising, Actuating and Controlling. Harold Koontz and Cyril O’Donnell: According to Koontz and O’Donnell, the five functions of management are: Planning, Organising, Staffing, Directing/Leading and Controlling. Luther Gullick and Lyndall Urwick: Gullick and Urwick framed an acronym representing the functions of management as PODSCORB. The functions according to the acronym are: Planning (P), Organising (O), Directing (D), Staffing (S), Coordinating (CO), Reporting (R) and Budgeting (B). 4. Coordination – Nature and ImportanceCoordination: Coordination refers to organizing and synchronizing activities of different sub-systems of an organization to achieve the objectives of the organization. Coordination avoids chaos and brings harmony within the organization. It is the common thread that integrates various factions of management to effectively and efficiently achieve the desired objectives. Thus, coordination is not a distinct function of management, rather it is the essence of management. 4.1 Characteristics of Coordination1. Coordination is an all pervasive function Coordination is required everywhere in an organization – at every level, in every activity and in every department to ensure achievement of desired aim. 2. Coordination is a conscious function Managers have to make efforts to bring about coordination in the organization. It cannot take place on its own. 3. Coordination brings focus Different departments strive to achieve their individual goals. In the absence of coordination it will become chaotic. Thus management coordinates the activities of all the departments in one direction i.e. achievement of common goal. 4.2 Types of Coordination1. Internal Coordination The coordination within the organization is internal coordination. The individuals and groups working at different levels as well as different departments of the organisations need to be coordinated to achieve the common goals. Internal coordination can be further categorized as: i. Vertical Coordination It refers to coordination among activities of people working at different levels within the organization. For example: plans of different departments must be integrated and derived from the overall plan of the organization. ii. Horizontal Coordination It refers to the coordination among activities of different departments operating at the same level within the organization. 2. External Coordination External coordination refers to the coordination of different activities of the organization with its external environment. The external environment of the organization comprises customers, suppliers, financial institutions, local authorities etc. Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any. What is the purpose of management?Management is the coordination and administration of tasks to achieve a goal. Such administration activities include setting the organization's strategy and coordinating the efforts of staff to accomplish these objectives through the application of available resources.
What are the 4 nature of management?Henry Fayol: According to Fayol, the process of management includes five functions: Planning, Organising, Commanding, Coordinating and Controlling. George R. Terry: According to Terry, the four functions of management include, Planning, Organising, Actuating and Controlling.
What is the purpose and scope of management?Management involves handling people organized in a group. All the individuals a manager has to interact with have various levels of dynamism, understanding, and sensitivity. Management requires retaining, motivating, and developing people at work and ensuring their satisfaction as social beings.
What are the 7 characteristics and nature of management?Nature and Characteristics of management are Goal Oriented, Universal, Integrative Force, Social Process, Multidisciplinary, Continuous Process, Intangible, and Art and Science both.
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