Quite often the term management is used to refer to both the persons who occupy managerial

positions as well as to the activities which managers perform. In fact, there can be five different
concepts of management:

1. Management as an economic resource:

According to an economist, management is one of the factors of production, the other factors being
land, labor, capital and entrepreneurship. In a small enterprise, the owner may himself act as the
manager. But in large corporations, there is a divorce between ownership and management.

Management is the most active factor of production because it assembles and integrates the other
factors. The efficient use of land and capital depends upon labor which is in turn governed by
management.

Management coordinates the other Ms (manpower, methods, markets, materials, machinery and
money) of an organization and, therefore, it occupies a unique place among the productive factors
as can be seen.

The efficiency of management factor can be improved through training and development of
executives. The importance of management increases with the tempo of industrialization.

The economic and social development of mankind since the Second World War has occurred as a
result of systematic and purposeful work on developing managers.

We no longer talk of capital and labor but of management and labor. As an economic resource,
management makes a productive enterprise out of physical and human resources.

Efficient management is the most important input in the success of an organization. The inputs of
manpower, materials, machinery and money do not by themselves ensure growth; they become
productive through the catalyst of management.

2. Management as a class or elite:

Sociologists look upon management as a distinct class in society with its own status system. With
the growing importance of organizations and the need for their efficient management, managers
have become a very powerful or elite group in society.

In the words of Peter Ducker, the professional executive has become the key leadership figure in
modern industrial society. As a team or group of persons, management consists of all those who are
responsible for the establishment and accomplishment of objectives through the direction of others.

These people are individually known as ‘managers’. Any person who performs the managerial job is
a manager. Managers have the required knowledge and skills. The managerial class exercises
leadership and coordinates the efforts of human beings.

This class includes various types of managers e.g., family managers, profes sional managers, civil
servants who manage public enterprises, etc. The management team of an organization is
comprised of all executive right from the chief executive unto the supervisor.

For instance, the statement that the management of X company is very good refers to the managers
of that company. As a competent class,- managers strike a balance among diverse interest.

3. Management as a system of authority:

Experts in the field of administration consider management as a system of authority. Accord ing to
Her bison and Myers, “management is a rule-making and rule- enforcing body, and within itself it is
bound together by a web of relationships between superiors and subordinates”.

There is a hierarchy of authority among people operating in an organization. Managers at different

levels possess varying degrees of authority. In general, the higher level managers have the
authority to lay down the goals and policies of the enterprise while those at the lower level are
authorized to execute the plans and policies to achieve the desired goals.
There should be well defined superior subordinate relationships at all levels of decision making.
Management is “a multipurpose organ that manages a business and manages managers and
manages worker and work”.

Over the decades there have been different approaches to management authority, e.g.,
authoritarian, humanitarian, constitutional and par-deceptive approach.

4. Management as a separate discipline:

As a field of study or academic discipline, management is an organized body of knowledge. It is

comparatively a new field of learning and is being taught in universities and institutes of
management. Several specialized courses have been developed in different branches of
management.

Management discipline is a part of social sciences and humanities. It provides the principles and
practices and a person must learn them in order to become a successful manager.

Today, management is a very popular subject and there is great rush for admission into
management courses. The growing importance of management discipline has been described as
‘Managerial Revolution’. Management is a young and growing discipline and its status is likely to
increase in the times to come,

5. Management as a process:

As a process, management is a series of inter-related activities by which managers determine and

accomplish goals in organized Endeavour. It is a rational, intellectual, dynamic and continuous
process, common to all organizations. Management is an important process of coordinating and
integrating specialized activities of several persons for the achievement of common objectives.

It is the process through which all the resources are organized and utilized to attain maximum
output and efficiency through minimum in out. The process of managing consists of planning
(preparing for future), organizing (combining resources), staffing, directing (guiding and supervising
people) and controlling (keeping on the right track) of human efforts in order to achieve common
objectives.

This is the most popular interpretation of the term management because it describes what managers
do. The true character of management can be seen as a process composed of several elements or
functions. Management is what managers do.

The different concepts of management described above are not contradictory to one another. They
are merely different ways of looking at management. In fact, management is a synthesis of all these
viewpoints.

Scope of Management In Various Areas Of Management

Management can be broadly classified into functional areas like

1. Production Management

Production management is the process of managing the conversion of inputs into outputs. The
production function shows how much of one output can be produced with a given level of inputs.

2. Financial Management

Financial management is managing money and financial resources for an organization. It involves the
management of cash, credit, and capital assets.
It is concerned with the financial needs of a business. It deals with the financing, investment, and
safeguarding of funds to sustain profitability over a period of time.

3. Personnel Management

Personnel management is the process of managing human resources. It involves the recruitment,
selection, development, and motivation of employees. Personnel managers are responsible for
ensuring that current and future company needs are met by identifying key skills needed within the
organization, analyzing potential candidates' skills, experience and knowledge to determine if they
possess these required traits, and hiring them.

4. Marketing Management

5. Maintenance Management

6. Materials Management and Purchasing

7. Material Management

8. Purchasing and Procurement

Purchasing management involves the identification of goods and services required, evaluating
suppliers, selecting and awarding contracts, and receiving and inspecting goods and services.

The goal is to obtain favorable terms while minimizing risks to the organization. The purchasing
department must also ensure that all purchases are in compliance with government regulations, such
as those related to labor standards or environmental regulations.

9. Transport Management

Transport management is the collection and analysis of data related to all areas of transport, including
shipments, freight charges, volumes, and revenue. Transport management aims to improve the
efficiency of operations to maximize profits while minimizing costs. Companies that use this strategy
will often purchase software or hire consultants who can provide them with accurate information about
their company's performance in each area.

10. System Management

11. Rural Management

12. Office Management

Office management is a set of managerial and supervisory activities, processes, and functions
concerned with planning and controlling departmental office activities. It is concerned with developing,
operating, controlling, and evaluating these functions to meet cost-effectiveness, quality, productivity,
and service objectives. The basic objective of office management is to improve performance within an
organization by optimum use of all available resources.