MANAGEMENT- MEANING, NATURE & IMPORTANCE

People work together to meet their mutual needs, which they cannot fulfil individually. It is by
working together in organized groups and institutions that people satisfy their economic and social
needs. The task of getting results through others by coordinating their efforts is known as
management.

Concept (meaning) of Management

1. Management as an activity

management is centred in administrators or managers of the firm who integrate men, management
and money into an effective operating unit.

There are 5 Ms. of management- manpower, materials, machinery, methods and money.

Management as an activity has the following implications:

 interpersonal activity
 group activity
 goal-oriented activity
 decisional activity.

2. Management as a group

As a group Management refers to all those people who perform the task of managing an
organization. It consists of a Board of directors, chief executives, heads of departments, branch
managers, superintendents, supervisors, etc. All the managers from the chief executive to the first
line supervisors are collectively known as management.

There can be several types of managers:

 family managers
 professional managers
 civil servants or IAS officers.

Managers have become a very powerful and respected group in modern society. This is because the
senior managers of the company make decisions that affect the lives of a large number of people. As
a group, management is a rule-making and rule-enforcement body.

3. Management as a discipline.

As a discipline, management implies A specialized branch of knowledge which involves the study of
principles and practices of administration.

4. Management as a process

Management as a process is what managers do. The functions are performed to transform inputs
into outputs so as to achieve the desired results. The management process consists of planning,
organizing, staffing, directing and controlling functions. Management as a process has the following
implications:

 integrated process
 continuous process
  irritative process
 social process
 universal process.

Definitions of management.
1. Classical concept

“Management is what management does is the task of planning, executive and controlling.”

These functions are performed to utilize efficiently human and other resources for the achievement
of some common objectives. These definitions focus only on the attainment of business objectives
and make no mention of the social obligations of management

2. Productivity Concept

“Management is the art of knowing exactly what you want people to do and seeing that they do it in
the best and cheapest way.”

This is maximizing productivity is the sole objective of management. Human aspects of management,
so essential for the success of every human activity, are overlooked in this definition.

3. Human relations or neo-classical concept

“Management is the art of getting things done through others and with people in informally
organized groups.”

This definition recognizes the role of people in productivity. Management principles cannot help in
increasing productivity without the cooperation of people.

4. Decision-making and leadership Concept

“Management is simply the process of decision-making and control over the actions of human beings
for the express purpose of attaining predetermined roles.”

The definition focuses on decision-making and leadership. It involves the implementation of

decisions and activities required for securing the desired results.

5. Integration concept or modern management

“Management is defined as a process of planning, organizing, activating and controlling an

organization's operations in order to achieve coordination of human and material resources.”

“Essential in the effective and efficient attainments of objective management is the force that
integrates human and non-human resources into an ineffective operating unit.”

Characteristics of management.
1. Management is goal-oriented. The success of management is measured by the fulfilment of
desired goals.

2. Management is universal. It is required in all types of organizations, big or small, business or non-
business. The basic functions of management are performed at every level of authority. Top, middle
and lower.
3. Management is a group activity. Management is concerned with the efforts of people in a group.
They function as a team.

4. Management is a system of authority. Management is rule-making and rule-enforcing authority.

5. Management is a social process. Management involves getting things done with and through
people.

6. Management is a dynamic function. Management is performed continuously so as to more

policies and practices of an organization according to the changes in its environment. Therefore
management is a never-ending function.

7. Management is both an art and a science. It is a science as it contains certain principles that have
universal application whereas it also depends on the personal skills of management managers and in
this sense management is an art.

8. Management is a distinct entity.

9. Management is intangible. Management is an invisible force. However, the persons who perform
managerial activities are very much touchable and visible.

10. Management is an integrating force. Management is a unifying force as it coordinates individual

efforts into a team. It integrates human efforts with non-human resources.

11. Management is multidisciplinary. It involves several disciplines such as economics, sociology,

psychology, anthropology, etc.

12. Management is creative. Management makes them happen.

Nature of management.
Management can be analyzed in terms of art, science and profession.

Management as a science.

Management, as in science, is a systematic body of knowledge. Observations and experiments

through container observation and experiments develop knowledge after careful analysis and query
and expiration management

Objectives of management.
1. Profitability. Profits can be earned when managers make the best use of men, money, materials,
machinery and other resources.

2. Prosperity and growth. Management should aim at continuously improving the performance of
the organization.

3. Change and innovation. Uncertainties of the future In this age of science and technology,
continuous research and development are necessary for developing new and better methods.

4. Development of people. It should create and maintain an involvement conducive to the

development of people.

5. Discipline and morale. Management aims to improve discipline among people by exercising
authority, assigning responsibility and introducing features of evaluation and concern. It ensures a
sense of achievement in higher morale by creating and maintaining a better work environment.
6. Rightful decision making. The quality of decisions often determines the future of an enterprise.

7. Improving image good management. It attempts are maintaining and maintaining a sound event
of the organization.

8. Quality goods at fair prices Management aims at providing products of better quality at
reasonable prices.

Importance of management
1. Achievement of group active objectives. Each person may be working efficiently, but the group as
a whole cannot realize its objectives without mutual cooperation and coordination among the
individual efforts. Management creates coordination and team spirit.

2. Optimum utilization of resources. Management brings together human and material resources in
the right proportion. It helps increase the productivity and profitability of business.

3. Minimization of cost. A business can only be successful when it is able to supply the required
products and services at the lowest possible cost. By eliminating wastage and minimizing cost,
management enables an enterprise to face cut-throat competition,

4. Survival and growth. An enterprise is to adapt itself to the changing demands of the market.
Environmental changes will create both threats and opportunities.

5. A higher standard of living.

6. Generation of employment. By setting up new enterprises and expanding existing enterprises,

managers create jobs for people. Management helps in developing human resources through
trimming and guidance. Management also creates such an environment which gives job satisfaction
and happiness.

7. The development of a nation. efficient management is equally important at a national level.

Management is the most crucial factor in economic and social development.

Levels of management
Top management, middle management, lower operation or supervisory management.