The following are the topics involved in Nature and Significance of Management chapter:
Management Definition: Management is defined as the process of planning, organizing and controlling of organization operations to achieve the objects of an organization in effective and efficient manner.
->Types of concepts in Management: There are two types
i) Traditional concept: To achieve the organization goals through others.
ii) Modern Concept: To achieve the organization goals efficiently and effectively with the aim.
->Characteristics of Management:
i) Goal-Oriented Process: Organisation existence depends on objectives and management is the process of combining efforts of every individual to achieve the goal.
ii)All pervasive: the Management is applicable to all types of an organization either small or big and profit or non-profit
Management has multiple activities. Mainly,
- Management of house
- Management of people
- Management of operations
iv)Continuous process: Management is a continuous process because it continuously performed interrelated functions
iv)Group Activity: Management is a group activity because For Every Individual in an organization wants to contribute their efforts to achieve the organizational goals.
v) Intangible: we cannot touch the management but we can felt by the organization functions
->Management objectives: objectives are classified into social, organizational and personal
i) Organisational objectives
Survival: it exists for a long time in the competitive market.
Profit: it is used for successfully continued operations.
Growth: It measurement of a successful organization.
ii) Social objectives: It involves the creation of benefit for society
iii) Personal objectives: objectives of the good salary, promotion, social recognition, healthy working conditions of the employee.
- Helps to achieve Group goals: it integrates the objectives of individuals
- Increases efficiency: It increases the productivity with help of proper planning, organizing and directing of an organization.
- Creates a Dynamic organization: the manager keeps changes in an organization in a dynamic way.
- Helps to achieve Personal objectives: To achieve personal objectives through motivation and leadership.
- Helps in Development of society:
It creates employment, generates new technology by providing good quality products and services to help in the development of society.
->Management is an Art:
- It is based on practice and creativity
- The existence of Theoretical knowledge is available from the lots of literature
->Management as a Science:
It is systematized body of knowledge and principles are based on experimentation.
->Management as a profession:
It does not match with a complete criterion of a profession but it has some features of the profession.
- Top Management: It consists of senior-most executives referred as a chairman, Chief executive officer, Directors
- Middle management: these are under top level management
- Operational Management: they are foremen and supervisors.
- Planning: it is the process of how to develop sales to achieve the organizational objectives.
- Organization: It is the process of organizing grouping tasks and allocating resources.
- Staffing: It implies right people
- Directing: It involves leading, influencing, motivating employees
- Controlling: it is the process of follow up actions for the performance
->Coordination: Coordination is combination of all activities
Such as purchase, production, sales, finance to ensure the working of an organization.
i) Characteristics :
- Integrates group efforts
- Ensures units of action
- Continuous process
- Pervasive function
- Responsibility of all managers
- Growth size: when there is growth automatically increases the employment of an organization
- Functional Differentiation: In every organization have separate departments and different goals. When linking these activities is achieved by only coordination.
- Specialisation: For coordination different specialists are required to achieve the different approaches and judgments etc.