Management meaning, nature and

importance (ch-5)
→ Concept of management.
Business Management is a human activity which directs and control the organization and
operation of business enterprise. Management is centred in the administrators or managers of
the firm, who integrate men, material and money into an effective operating unit.
Management as a group: As a group, management refers to all those person who performed
the task of managing an organization. It is a collective noun consisting of Board of directors, chief,
executive, heads of department, branch manager, Superintendents, Supervisor, etc. All the
managers from the chief executive to the first line supervisor are collectively known as
Management.
Management as a discipline: As a discipline, management employees a specialised branch of
knowledge which involves the study of principles and practices of administration. It refers to the
systematised Body of knowledge and a separate field of study. There are now several renowned
institutions in which management is taught as a specialised body of knowledge.
Management as a process. As a process management is what manager do. Management is
considered as a process because it consists of a series of interrelated elements. These function
should be performed systematically in an orderly manner and proper sequence.
(i) Management is an integrated process because it brings together human physical and financial
resources and integrates them. It integrates human element with material, machinery,
methods, money and markets to achieve predetermined goals.
(ii) Management is a continuous process.
(iii) Management is a social process as managers work with and through people.
→ Definition of management.
Management is the process of realising the detecting human energy towards attaining or definite
goal.
1. Productivity concept: Management is the art of knowing exactly what you want people to do
and seeing what they do it in the best and cheapest way.
2. Human relation (neo-classical) concept: Management is the art of getting things done through
and with people in formally Organised group.
3. Decision making and leadership concept: Management is the art and science of decision
making and leadership.
→ Characteristic of management.
1. Management is a goal oriented: Management aims to achieve economic and social
objectives. It exists and corporate to secure certain results. The success of management is
measured by the fulfillment of desire goals. Therefore, effective management is always
management by objectives. Management is a purposeful activity.
2. Management is universal: Management is all pervading: It is required in all type of
organization big or small, business or non business. The basic function of management are
performed at every level of authority—top, middle or lower.
3. Management is a group activity: Management is concerned with the effort of a group of
people. It unites the effort of different members of the group so that they can function as a
team. It implies the skill in getting things done through group efforts. It involves teamwork.
4. Management is a social process: Management involves getting things done with and
through people. In order to achieve the desired result, a manager has to direct, regulate and
coordinate the effort of human being. Human factor is an important and Indispensable part of
management.
5. Management is a dynamic function: Management is performed continuously so as to
module the policies and practice of the organization according to change in its environment
manager. Also trying to modify the environment in order to ensure the success. The enterprise
therefore management is a never ending function.
6. Management is both an art and science: Management is a science because it contains
certain principle having universal application. But the result of management depends upon
the personal skills of manager and this sense management is an art. However, the art and
science of management are complementary to each other.
7. Management is intangible: Management is an invisible force. It can be felt in the form of
result, but cannot be seen. However, the person who performed managerial activities are very
much tangible and visible.
→ Nature of management.
The nature of management can be analysed in the term of art, science and profession.
Management as a science.
Science means a Systematised body of knowledge which can be acquired. Through observation
and experimentation.
(i) Systematised body of knowledge: Management is a systematised body of knowledge in the form of basic
principles and concepts.
(ii) Observation and experiments: Management knowledge has been built up through continued observation
and experiments. Management expert and practitioners Have developed the knowledge after careful
analysis, enquiry and experience. The principal of management make use of scientific method of
observation and analysis. The methods of observation used in management are not completely objective.
Because management deals with human beings, those behaviour cannot be scientifically Predicted.
(iii) Cause and effect of relationship: Principles of management established cause and effect relationship
between various factors. For example, Dual subordinates leads to confusion.
Management as an art.
Art means the practical application of knowledge and skills to achieve the desired result.
(i) Practical knowledge: Art involves application of theoretical knowledge. Management is the
art of getting things done through people to accomplish the desired results.
(ii) Personal skills: Management is basically an individual skill. Every manager has his own style of
working.
(iii) Creativity: Management is creative in the sense that it Converts inputs into outputs. Is goal
oriented and result oriented.
(iv) Perfection through practice: Art requires continuous practice to gain mastery. Management
also involves regular practice.
Management as a profession.
Profession means a vocation requiring specialised knowledge, practical training, service, Motive
and Code of Conduct.
(i) Specialised knowledge: Management has a well defined body hospitalised knowledge which
is transferable.
(ii) Formal education and training: There are specialised management institutions which provide
education and training in management after Completing education and training, students get
job as manager.
(iii) Service motive: like other professional managers are expected to serve the society Rather
than simply earning profit for the owners.
(iv) Code of conduct: Managers also have a code of conduct. But the code is not legally binding on
managers.
→ Objectives of management
1. Profitability: Management must ensure that the enterprise earn sufficient profit to meet its
various needs. The investor must be given a reasonable return on their money in the form of
dividend, interest, etc.
2. Prosperity and growth: Management should aim at continuously improving the performance
of the organization. It should create an environment in which people can give their best to the
organization.
3. Change and innovation: An organization operates in an every changing environment.
Management should aim at technology and other innovation so that the enterprise can
successfully face the challenges posed by the uncertainties of the future. Management serves
as the agent of change and progress.
4. Discipline and morale: Management aims at improving discipline among people by exercising
authority, assigning responsibility, and introducing Procedure of evolution and control.
5. Improving image: Good management always attempts to build and maintain a sound image of
the organization.
→ Importance of management.
1. Achievement of group objectives: A human group consists of several Persons is specialising
in done a part of the total task. Each person may be working efficiently, but the group of a
whole connect realise its objectives without mutual corporation and coordination among
the individual efforts.
2. Optimum utilization of resources: Management brings together human and material
resources in the right proportion. Men, money, material and machinery May prove
ineffective without sound management.
3. Minimization of cost: It is. In the modern era of cut throat, competition of business can be
successful only when it is able to supply the required product and service at the lowest
possible cost.
4. Survival and growth: Modern business operate in rapidly changing environment. An
enterprise has to adopt itself to the changing Demand of the market and the society.
5. Higher standard of living: Management is necessary not only for business, but for society
as a whole.