Good Morning

Everyone!!!
Nature & Significance of
Management
- By Group 1 to 10
Meaning of Management
Management is the creation of internal environment where individuals working
in a group can perform effectively and efficiently for the achievement of
organizational goal.
It is the process of getting things done with the aim of achieving goal
‘Effectively’ and ‘Efficiently’.

 Effectiveness: Means completing the right task to achieve the deputed

goal within the time frame. It is concerned with doing the right task,
completing the assigned job on time, no matter whatever the cost.
 Efficiency: Means completion of task with minimum resource. It is
concerned with doing the job in cost effective manner I.e. getting maximum
output with minimum input.
Characteristics of Management

CHARACTERISTICS

Goal Oriented Process Continuous Process

All Pervasive Group Activity

Multidimensional Dynamic Function

1. Goal Oriented Process: Management always aims to achieve pre-determined goals,
which are clearly stated within an organisation. Example, goal of a company can be to
raise their production by a certain amount.
2. All Pervasive: Activities involved in management process are common to all organisation,
whether social, economical, political, etc. Management is a universal concept.
3. Multidimensional: Management is a complex activity with multiple dimensions. Its 3 main
dimensions are Management of Work, Management of People, and Management of
Operations.
4. Continuous Process: Management is a continuous process. All functions, from planning
to controlling are simultaneously performed by managers on a continuous basis.
5. Group Activity: An organisation consists of different individuals with different purposes.
They all are required to work together to achieve organisational goals. It requires team
work and coordination.
6. Dynamic Function: An organisation interacts with ever changing external environment. In
order to survive and grow, an organisation must change. Therefore, management is a
dynamic function.
Objectives of Management

Organisational Social Personal

Employment Opportunities Financial Needs

Survival

Lawful
Business Social Needs
Profit

Basic Amenities Healthy Working

Growth
Conditions

Good Quality
Products
Objectives are the ends towards which all activities of an organisation are directed.
Objectives can be classified into 3 categories:

1. Organisational objective – They are the main objectives, which are needed to
achieve the economic goals of the organisation. Every organisation aims to
achieve 3 main organisational objectives.

a. Survival: Survival is only possible when the organisation is able to earn enough
revenue to cover its costs.
b. Profit: It is the lifeblood of a business. Profit is the reward for risk bearing and
provides a vital incentive for continued successful operation of a business.
c. Growth: An organisation must grow and expand to survive in the long run.
Growth of an organisation indicates how well it is able to exploit its potential
opportunities.
2. Social objectives – It refers to objectives, which are desired to be achieved
for the benefit of the society. They include:
a. Using environment friendly methods of production
b. Generation of employment opportunities
c. Providing basic amenities to employees
d. Supply of good quality goods at fair price
e. Avoiding unfair trade practices.

3. Personal objectives – An organization is made up of different individuals.

Since employees are one of the most valuable resources, satisfaction of
their objectives is very important.
a. Financial needs, like salaries and perks
b. Social needs, like peer recognition
c. Higher level needs, like personal growth and development
d. Safe and healthy working conditions
Importance of Management
Helps in achieving
group goals

Creates dynamic
Increases efficiency
organisation
Importance

Helps in achieving Helps in development

personal objectives of society
1. Achieving Group Goals: Management creates teamwork and coordination in
the group. Managers give common direction to individual efforts in achieving the
overall goals of the organization.

2. Increases Efficiency: Management increases efficiency by using resources in

the best possible manner to reduce cost and increase productivity.

3. Creates Dynamic organization: Management helps the employees overcome

their resistance to change and adapt as per changing situation to ensure its
survival and growth.

4. Achieving personal objectives: Management helps the individuals achieve

their personal goals while working towards organizational objectives.

5. Development of Society: Management helps in the development of society by

producing good quality products, creating employment opportunities and
adopting new technologies.
Nature of Management

Nature

Management as a Management as a
Science Profession

Management as an Art
Management as a science
Science is a systematic body of knowledge acquired through observation and experimentation
that explains certain general truths or operation of general laws.

features of science vs management

1. Being a systematised Body of knowledge – Science is considered as a systematic body

of knowledge whose principals are mainly based on cause and effect relationship.
2. Principals based on observation and experimentation – The principals in science are
first developed through observation and then tested through repeated experimentation
under controlled conditions .
3. Universal validity – Scientific principles have universal validity in all situations and at all
times .

On comparing the features of science with management, we can say that management cannot
be considered an exact science, but we can refer to it as inexact science or social science.
Management as an art
Art can be considered as a skilful and personal application of systematic knowledge to bring
desired results.

Features of art vs Management

1. Existence of theoretical knowledge – Management is based on existence of some

theoretical knowledge of concepts and principle. For example, literature on dancing or
public speaking .
2. Personalised application – Art is a personalised concept as everyone applies the
theoretical knowledge in his own way. For example, two dancers, 2 actors or two writers
will always differ in demonstrating their art.
3. Based on practice and creativity – Application of art needs regular practice to do
things creatively and skilfully. art can be improved through constant practice.
 

We can say that management is an art as it satisfies all its characteristics.

Management as a Profession
Profession refers to an occupation backed by specialized knowledge and training
in which entry is restricted.

Features of profession:

1. Well defined knowledge – Every profession has a well-defined body of

knowledge, which can be acquired through instructions. This feature is present
in management as it also consists of systematic knowledge of concepts,
theories and principles.

2. Restricted entry – Every profession restricts entry through examination. For

example, CA. This feature is not applicable as management is open to all
individuals who want to learn the skills of management.
3. Professional association – All professions are affiliated to a professional
association which regulates entry, grants certificate of practice, and enforces a
code of conduct. This feature is not applicable to management as it is not
compulsory for a manager to be a member of any association.

4. Ethical code of conduct – All professions are bound by a code of conduct

which guides the behavior of its members. This feature is also not present in
management as there is no uniform code of conduct for managers.

5. Service motive – This feature is not cent percent applicable in management as

the basic aim of management is to help the organization achieve its stated goal.
Levels of Management

The hierarchy of management President,

positions from top to bottom is Chairman,
called levels of management. etc.
Top Level Management

Purchase Manager, Production

Manager, Finance Manager,
etc.
Middle Level Management

Supervisor, Superintendent, Foreman, Section Officer,

etc.
Operational Level Management
Top Level Management
Top level management consists of the senior most executives of the organisation.
It includes Board of Directors, Chairman, Chief Executive Officer, Chief Financial
Officer, President, Vice President, General Manager, etc.

Main Functions of Top Level Management

1. To integrate and coordinate diverse activities of different departments
according to overall objectives of the organisation.
2. To analyse business environment and its implications for the survival of the
business.
3. To formulate overall organisational goals and strategies for their achievement.
4. To arrange resources of men, materials, machines and money to achieve
desired goals.
Middle Level Management
Middle level management acts as a link between top and lower level
management. They are subordinate to top level management and superior to
lower level management.
Middle level management consists of departmental heads like, Purchase
Manager, Production Manager, Finance Manager, Marketing Manager, etc.

Main functions of middle level management

1. To interpret policies framed by top management.
2. To ensure that their department has necessary personnel.
3. To assign necessary duties and responsibilities to them.
4. To motivate them to achieve desired objectives.
5. To cooperate with other departments to achieve smooth functioning of the
organisation.
Lower level management
It is the lowest level in the hierarchy of management. The authority and
responsibility of this level is very limited.
Lower level of management consists of supervisors, foreman, superintendent,
section officer, etc.

Main functions of lower level management

1. To oversee efforts of workforce
2. To interact with actual workforce and pass on instructions to middle level
3. To ensure that quality of output is maintained, wastage of materials is
minimised, and safety measures are maintained.
4. To represent worker’s grievances
5. To ensure safe and proper working environment to workers.
Functions of Management

Functions

Planning controlling

Organising Directing

Staffing
1. Planning – Planning is the purpose of ascertaining in advance what is supposed to be
done and who has to do it. This signifies establishing goals in advance and promoting
a way of delivering them effectively and efficiently.

2. Organizing – Organizing  is the administrative operation of specifying grouping tasks,

duties, authorizing power and designating resources needed to carry out a particular
system. It determines who will do a distinct job, where and when it will be done.

3. Staffing – Staffing  is obtaining the best resources for the right job. This is also called
the human resource operations and it includes activities such as selection, placement,
recruitment and coaching of employees.

4. Directing – Directing involves directing, leading and encouraging the employees to

complete the tasks allocated to them. Motivation and leadership are 2 chief elements
of direction.

5. Controlling  – Controlling is the management operation of controlling organizational

achievement towards the accomplishment of organizational intentions. It comprises
ascertaining criteria of performance, computing the current performance, comparing
this with organized rules and taking remedial action if necessary.
Coordination
Coordination is the process by which a manger synchronises the activities of different departments
towards the achievement of common goals.
It is the force that binds all other functions of management.

Nature of Coordination
1. Integrates group efforts – Coordination unifies unrelated interests into purposeful activity. It gives
a common focus to group efforts.
2. Ensure unity of action – Coordination aims to achieve unity of actions to realise a common
purpose. It acts as a binding force between departments.
3. Continuous process – Coordination is a never ending process. It begins at planning and ends at
controlling.
4. All pervasive – Coordination is required in all departments and at all levels because of
interdependence of various actions. It is a necessity to bring harmony and integration of activities.
5. Deliberate function – Manager has to coordinate efforts of different people in a deliberate manner.
Coordination does not occur spontaneously nor can it be achieved by force.
Importance of Coordination
1. Growth in size – With increase in size of organisation, number of employees
also rise, at times, it may become difficult to integrate their efforts and activities.
Therefore, for organisational efficiency, coordination helps to harmonise
individual goals and organisational goals.

2. Functional differentiation – In an organisation, activities are frequently

divided into departments. All these departments have their own objectives. It
often leads to clash of interest between various organisation. Coordination
helps to synchronise activities of these departments, so that they can achieve
organisation goals efficiently.

3. Specialisation – Due to increasing complexities of modern technology, and

diversity of tasks, a number of specialist are hired. It often leads to conflict
amongst different specialists. Coordination helps to reconcile the differences in
approach, interest or opinion of the specialist.
Case Studies

1. ABC Ltd. Is able to achieve its target sales within prescribed times as
employees are happy and there is orderliness and coordination in the work
environment. Discuss the characteristics of management depicted here.

2. “In an organisation, the objective of marketing department is to increase

sales by 10% by offering discounts. However, the finance department is
reluctant to offer discount as it means loss of revenue”. One of the
importance of coordination help to resolve this conflict. Identify it.
Presented by:

1.Adarsh
2.Aman
3.Anshika
4.Ananya
5.Animesh
6.Annishh
7.Anvi
8.Ayushi
9.Atharva
10.Aditi