Chapter 1 –Nature and Significance of Management – notes

“Management is the process -----------of working--------- with and through others---------- to

effectively achieve-------organisational objectives --------by efficiently using limited
resources -----------in the changing environment.”
KREITNER

IN THIS CHAPTER WE ARE GOING TO COVER :

CONCEPT MAP
• Management is essential for all organisations big or small, profit or non-profit,
services or manufacturing.
• Management is necessary so that individuals make their best contribution towards
group objectives.
• Management consists of a series of interrelated functions that are performed by all
managers. THEY ARE : (POSDCo)
▪ Planning
▪ Organising
▪ Staffing
▪ Directing
▪ Controlling

• The time spent by managers in different functions however is different. Managers at

the top level spend more time in planning and organising than managers at lower
levels of the organisation.

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 CONCEPT
• Management is a very popular term and has been used extensively for all types of
activities and mainly for taking charge of different activities in any enterprise.
• It is an activity which is necessary wherever there is a group of people working in an
organisation.
• People in organisations are performing diverse tasks but they are all working towards
the same goal. Management aims at guiding their efforts towards achieving a common
objective — a goal.
• Thus, management has to see that tasks are completed and goals are achieved (i.e.,
effectiveness) with the least amount of resources at a minimum cost (i.e.,
efficiency).
• MANAGEMENT, HAS THEREFORE, BEEN DEFINED AS------- *A
PROCESS* OF GETTING THINGS DONE ------WITH THE AIM OF -----
*ACHIEVING GOALS* *EFFECTIVELY* AND *EFFICIENTLY*.

We need to analyse this definition. There are certain terms which require elaboration.
These are
(a) PROCESS, (b) GOALS (c) EFFECTIVELY, and (d) EFFICIENTLY.

➢ *Process in the definition means the primary functions or activities that

management performs to get things done. These functions are planning,
organising, staffing, directing and controlling.
➢ * Being effective or doing work effectively basically means finishing the
given task. Effectiveness in management is concerned with doing the right
task, completing activities and achieving goals. In other words, it is
concerned with the end result.
But it is not enough to just complete the tasks. There is another aspect
also, i.e., BEING EFFICIENT or as we say doing work efficiently.
➢ Efficiency means doing the task correctly and with minimum cost. There is
a KIND OF COST-BENEFIT ANALYSIS involved and the relationship
between inputs and outputs. If by using less resources (i.e., the inputs) more
benefits are derived (i.e., the outputs) then efficiency has increased.
Efficiency is also increased when for the same benefit or outputs, fewer
resources are used and less cost are incurred. Input resources are money,
materials, equipment and persons required to do a particular task.
Obviously, management is concerned with the efficient use of these
resources, because they reduce costs and ultimately lead to higher profits.

EFFECTIVENESS VERSUS EFFICIENCY

Although both terms are related to each other, but effectiveness is a precondition for an
efficient management.
• Efficiency means “DOING THINGS RIGHT” and Effectiveness means “DOING THE
RIGHT”
Thus efficiency is the ability to do things right and is an input output concept. IT
ESTIMATES THE ABILITY OF A MANGER in justifying the input(resources) with the
amount of output( Results)
Hence in an organization an efficient effort would lead to maximization of output and
benefits and minimization of input (or without any wastage) resulting in achievement of
objectives in accost effective manner.

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• Effectiveness in contrast involves choosing the right goals. And taking right decisions as
far as attainment of goals is concerned. A wrong decision in a situation may lead to lack
of effectiveness which would further lead to wastage of resources (inefficiency).
Even if the activities are done with utmost competence, the output produced will not be of
desired expectation due to wrong decisions at the beginning. Therefore no amount of
efficiency can make up for lack of effectiveness.*WE CAN SAY THAT
EFFECTIVENESS IS THE PREREQUISITE TO EFFICIENCY.
➢ The management is concerned not only with getting job completed effectively but also
with doing so as efficiently as possible. Thus, for management, it is important to be both
effective and efficient. Effectiveness and efficiency are two sides of the same coin and
these two aspects need to be balanced, BUT, management at times, has to
compromise with efficiency.
➢ For example, it is easier to be effective and ignore efficiency i.e., complete the given task
but at a high cost. Suppose, a company’s target production is 5000 units in a year. To
achieve this target the manager has to operate on double shifts due to power failure most
of the time. The manager is able to produce 5000 units but at a higher production cost. In
this case, the manager was effective but not so efficient, since for the same output, more
inputs (labour cost, electricity costs) were used.
➢ At times, a business may concentrate more on producing goods with fewer resources i.e.,
cutting down cost but not achieving the target production. Consequently, the goods do not
reach the market and hence the demand for them declines and competitors enter the
market. This is a case of being efficient but not effective since the goods did not reach
the market.
➢ Therefore, it is important for management to achieve goals (effectiveness) with minimum
resources i.e., as efficiently as possible while maintaining a balance between effectiveness
and efficiency.
➢ Usually high efficiency is associated with high effectiveness which is the aim of all
managers. But undue emphasis on high efficiency without being effective is also not
desirable. Poor management is due to both inefficiency and ineffectiveness.

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FEATURES OF MANAGEMENT

1) Management is a Goal oriented Process.

• Every organization (business or non-business, small or large ) strive to achieve certain
objectives. These should be simple and clearly stated. Different organisations have
different goals. For example, the goal of a retail store may be to increase sales, but the
goal of The Spastics Society of India is to impart education to children with special
needs.
• The concept of management enables an organization to achieve its basic goals which
is the essential reason of its existence.
• Management with its certain functions (Planning, Organizing, Staffing,
Directing, Controlling) unites the efforts of different individuals, departments
towards achieving these goals.
For example :an business organization decides to expand its business in coming 5
years .The managers will plan a course of action and organize the activities to achieve
these goals.

2) Management is all pervasive.

• Management is said to be an all Pervasive function ie it is present everywhere. The
activities involved in managing an enterprise are common to all organisations whether
economic, social or political.
• The very existence of some goals and objectives will essentially requires the
management of resources that are to be used to achieve them.
• Thus the force of management is virtually applied to every type of organization,
irrespective of the SIZE, PURPOSE (business or non business), ORIGIN,
NATURE OF BUSINESS UNIT.
• An Auto Plant, A city government, A Cricket Team, A Hospital or a School: ALL
REQUIRE management irrespective of the place of operations. (i.e. countries).
What mangers do in India, USA, Germany or Japan is the same THOUGH their
application of functions may be quite different. This difference is due to the
differences in culture, tradition and history.

(3)Management is a continuous process:

• The process of management is a series of continuous, composite, but separate
functions (planning, organising, directing, staffing and controlling).
• These functions are inter-related and inter-dependent to each other and are
simultaneously performed by all the managers all the time i.e. continuously.
• With every new project in hand a manager needs to perform all the functions as per the
requirements of the environment and project’s specifications.
• Each function forms the basis of the functions next to it and the cycle of these
functions makes the management as an on-going process.

4) Management is Multidimensional
• Management, in the contemporary environment has become a complex activity.
• It may be presumed as a complex and multi-tasking activity that makes it multi-
dimensional.

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 • The 3 MAIN DIMENSIONS are –
Management of Work Management of People Management of
Operations
• All the Organizations • Human Resource is • Operations can be
exist to achieve some considered as the defined as the process
objectives through important and most of converting input
performance of some
required amongst the into output. The
work.
OTHER RESOURCES. production process
• For achieving these
objectives they perform • The very notion, (Operations) results in
various tasks e.g. In a Management is an ART the final output (either
manufacturing unit a to GET THE THINGS goods or services) that
product is manufactured, DONE WITH & an organization dealing
in a restaurant a THROUGH OTHERS into.
customers need is
INDICATE THIS. • *A manager
satisfied, in a hospital
patients are treated. • Thus apart from MANAGES all the
• Management of these managing all other opertions i.e. from
respective units Resources it becomes arranging the required
translates (convert) their very essential to resources till the final
task into objectives and MANAGE HUMAN
outcome in their
then assigns all the RESOURCE AT ITS
FIRST PLACE. IT respective fields.
possible and required
HAS TO • This dimension is
means to achieve them.
• This is done in terms of DIMENSIONS: interlinked with both
problems to be solved, (i) Dealing with diverse the management of
decisions to be made, need & behavior, work and management
plans to be established, ii) Dealing with employees
of people.
budgets to be prepared, AS A GROUP.
responsibilities to be
• The Task of a Manager
assigned and authority to
be delegated. is TO MAKE PEOPLE
THIS IS REFERRED TO WORK towards the
achievement of goals
AS MANANGEMENT OF
through Human
WORK. Resource by making
their strengths effective
and their weaknesses
irrelevant.
>Thus Management can be seen as a Multi-dimensional Activity.

(5) Management is a group activity:

• An organisation is a collection of diverse individuals with different needs. Every
member of the group has a different purpose for joining the organisation but as members
of the organisation they work towards fulfilling the common organisational goal.
• Management is regarded as Group Activity, where a manager has to manage the group
of individuals and their activities, series of functions, and different departments.
• Thus it can be said that wherever there is group, MANAGEMENT is required to
develop Team spirit and combine all Individual efforts to deliver the common objectives
through the process of coordination.
• At the same time management should enable all its members to grow and develop as
needs and opportunities change.

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(6) Management is a Dynamic Function.
• Management is a dynamic (ever-changing) function which needs to adapt to the
changing business environment. This makes the task of a manager more dynamic in
nature.
• In order to be successful an organization must change itself and its goals according to the
changing requirements of the business environment which consist of various social
economic and political factors.
• For eg: Pizza Hut ,Dominos ,all fast food chain centers are adding wheat based
ingredients in their food stuff as customers are becoming more cautious for their diets to
be more healthy.

(7) Management is an intangible force:

• The process of management cannot be seen but just can be felt or is reflected in the way
organization is functioning.
• The difference between a managed and mismanaged activity can just be felt by noticing
that the targets are not met on time according to plans, employees are happy, quality in
output, smooth operations i.e. there is orderliness instead of chaos.
• Thus the force of management gets the things done in its orderly ways through the
managers and non- managerial employees. Management is seen in actions, it is not
action in itself.

OBJECTIVES OF MANAGEMENT

• Objectives are those end points for the attainment of which all activities are
undertaken. An organization strives to attain certain predetermined objectives in many
areas.
• Further in contemporary business environment, a business unit survives not only to
earn profit as its only objective, but it is essentially important on its part to
contribute for social development (by defining social objectives) and fulfill
expectation of every employee from the company. (by defining individual
objectives)
• Thus the objectives must be derived from the basic purpose of the business. In any
organisation there are different objectives and management has to achieve all
objectives in an effective and efficient manner.
Objectives of management can be broadly divided into the following three categories:

OBJECTIVES

Individual/
Organizational
Social Objectives
/Formal Objectives
Personal Objectives

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ORGANISATIONAL / FORMAL OBJECTIVES

• It refers to ascertain the objectives for the whole organization during managerial
activities. These objectives forms the very basis or reasons for the existence of an
organization.
• While fixing these objectives, management keeps into consideration benefits of all the
stakeholders (like owners, employees, customers, government, etc.).
• The main objective of any organization should be to utilise human and material
resources to the maximum possible advantage, i.e., to fulfill the economic objectives of a
business.
• With a view to this an organization strives to attain its following 3 economic objectives
that invariably are its formal/ Organizational objectives also:

❖ SURVIVAL
The basic objectives of any business are survival. Management must strive to ensure the
survival of the organisation. In order to survive, an organisation must earn enough
revenues to cover costs.

❖ PROFIT
Mere survival is not enough for business. Management has to ensure that the organisation
makes a profit. Profit provides a vital incentive for the continued successful operation of
the enterprise. Profit is essential for covering costs and risks of the business.
❖ GROWTH
A business needs to add to its prospects in the long run, for this it is important for the
business to grow. To remain in the industry, management must exploit fully the growth
potential of the organisation. Growth of a business can be measured in terms of sales
volume increase in the number of employees, the number of products or the increase in
capital investment, etc. There can be other indicators of growth.
MANAGEMENT PLAYS AN IMPORTANT ROLE IN ACHIEVING THE ABOVE
OBJECTIVES BY CONSTANTLY MAKING EFFORTS THROUGH VARIOUS
FUNCTIONS PLANNING ,ORGANISING, STAFFING , DIRECTING AND
CONTROLLING.

SOCIAL OBJECTIVES OF MANAGEMENT

Social objectives of management involve the creation of benefits and economic value for
different constituents of society. Since each business or non business unit is a part of
society, the compliance of social responsibilities through pursuing social objectives becomes
inevitable.
• Following responsibilities are listed which a manger has to follow to satisfy the
society’s norms:
➢ To contribute in improving living standards and supply the quality products at
reasonable prices.
➢ Working towards the improvement of community by providing financial support for
the development of an area, facilities like schools, charitable health facilities, parks,
etc.
➢ Generation of employment opportunities for all the sections of society (including the
challenged and disadvantaged sections of society)
➢ Helping in rehabilitation process during any crisis.(natural or man- made)
➢ Using environmental methods of production, packaging and other functioning of
business.
➢ Not to get involved in malpractices like manipulation of accounts against the interest
of its stakeholders, adulteration of goods, etc.
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INDIVIDUAL / PERSONAL OBJECTIVES:
• It refers to consideration of the interest of employees during the managerial activities.
• An organization can be viewed as a group of individuals (with diverse needs) having
different personalities, backgrounds, experiences ----working together for the attainment
of Organizational objectives.
• They all become part of the organisation to satisfy their diverse needs. These vary from
financial needs such as competitive salaries and perks, social needs such as peer
recognition and higher level needs such as personal growth and development.
• Thus to secure the willingness of people to work with full spirits and high morale it
becomes essential for the managers to satisfy the needs of the employees working with
them.
➢ MAIN OBJECTIVES OF MANAGEMNT IN THIS REGARD CAN BE LISTED IN
THE CATEGOARY OF FINANCIAL AND NON FINANCIAL INCENTIVES
.They are:
• To give deserving and competitive remuneration packages.
• To provide good working conditions and healthy environment
• To provide a possible and fair share in profit as per the requirements and
contribution of employees.
• To provide job security
• To enable the employees to have a say in management through allowing them
to participate in decision making process by giving suggestions.
• To facilitate the skill development of employees by imparting training
opportunities
• To provide career development through providing opportunities for
promotions.
Thus ,Management has to reconcile personal goals with organisational objectives for
harmony in the organisation.

MANAGERIAL LEVELS AND HIERARCHY

• Management is a universal term used for certain functions performed by individuals in

an enterprise who are bound together in a hierarchy of relationships.

• All the employees working in an organization can be divided into two categories:

➢ Managerial Members
➢ Non-Managerial Members

• Managers are the persons who manages some or the other persons/activity by implementing
the functions of management (planning, organizing, staffing ,directing and controlling) in
order to get the work done with and through others for the achievement of organizational
objectives.
• Except Workers, all others are called as Managers irrespective of their designation.
• So workers constitutes the Non Managerial category
• These two categories can be shown in hierarchy of jobs leading to creation of Levels of
Management. This is shown in following diagram:

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 Top
Level
Mgt
Middle
Level
Manangement

Lower level or
Operational
management

• Every individual in the hierarchy is responsible for successful completion of a

particular task. To be able to fulfill that responsibility he is assigned a certain amount
of authority or the right to take a decision. This authority-responsibility relationship
binds individuals as superiors and subordinates and gives rise to different levels in an
organization

1. SENIOR MANAGEMENT (OR “TOP LEVEL MANAGEMENT” OR “UPPER

MANAGEMENT”)

They consist of the senior-most executives of the organisation. Personnel working at

this level are considered as at the crucial positions who are responsible for leading and
directing the efforts of other people working at levels subordinate to them.
• They have maximum authority. The job (designations )at this level are :
BOARD OF DIRECTORS,CHIEF EXECUTIVE OFFICERS,CHAIRMAN,
MANAGING DIRECTOR,GENERAL MANAGER, CHIEF OPERTING
OFFICER,ETC.

• This level of management is accountable to the stakeholders, specially

shareholders, governmnet, etc.
• Top management is a team consisting of managers from different functional levels,
heading finance, marketing etc. For example chief finance officer, vice president
(marketing). Their basic task is to integrate diverse elements and coordinate the
activities of different departments according to the overall objectives of the
organisation.

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 • The job of the top manager is complex and stressful, demanding long hours and
commitment to the organisation.
• FOLLOWING ARE THE FUNCTIONS PERFORMED AT THIS LEVEL:
1. Determining the overall goals and objectives of the enterprise. The top level
managers formulate the main objectives of the organisation. They form
long term as well as short term objectives.
2. Framing of overall plans, policies and strategies: The top level managers
also frame the plans and policies to achieve the set objectives.
3. They are responsible for all the activities of the business and for its impact
on society.
4. They are also help responsible for Coordinating and controlling the overall
activities of the business enterprise.
5. Responsible for welfare and survival of the organisation—Top level is
responsible for the survival and growth of the organisation. They make
plans to run the organisation smoothly and successfully.
6. They analyse the business environment and its implications for the survival
of the firm.
7. Organising activities to be performed by persons working at middle level. The
top level management appoints and assigns jobs to different individuals working
at middle level. They also approve the budgets prepared by different
departmental heads(managers)
8. Assembling all the resources such as finance, fixed assets etc. The top level
management arranges all the finance required to carry on day to day activities.
They buy fixed assets to carry on activities in the organisation.
9. Liaison with outside world, for example, meeting Government officials etc. The
top level management remains in contact with government, competitors,
suppliers, media etc.
• They have to be very aware of external factors such as markets.
• Their decisions are generally of a long-term nature
• Their decisions are made using analytic, directive, conceptual
and/or behavioral/participative processes
• They are responsible for strategic decisions.
• They have to chalk out the plan and see that plan may be effective
in the future.
• They are executive in nature.
2. MIDDLE MANAGEMENT
The personnel working at this level are departmental heads or managers that include
production manager, purchase managers, etc. This level lies between the top level and the
lower level of management. They are responsible for executing the plans and policies
that are made by top level management

• They are subordinate to top managers and superior to the first line managers. They
are usually known as division heads and are accountable to the Top level
management for the responsibility (duties) dispersed and authority delegated.
• Their authority level is decided by the Top level management and as per the
degree of decentralization.
• Followings are the designations at this level:
Divisional heads; Departmental Heads; Deputy departmental Heads
• Their main task is to carry out the plans formulated by the top managers. For this
they have to –(Main functions):
(a) Interpret the policies framed by top management to lower level. Middle level
management act as linking pin between top level and lower level management.
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 They only explain the main plans and policies framed by top level management
to lower level.
(b) Organising the activities of their department for executing the plans and policies.
Generally middle level managers are the head of some department. So they
organise all the resources and activities of their department.
(c) Ensure that their department has the necessary personnel: Finding out or
recruiting/selecting and appointing the required employees for their department
and assign necessary duties and responsibilities to them
(d) Motivating the persons to perform to their best ability. The middle level
managers offer various incentives to employees so that they get motivated and
perform to their best ability to achieve desired objectives
(e) Controlling and instructing the employees, preparing their performance reports
etc. The middle level managers keep a watch on the activities of low level
managers. They prepare their performance appraisal reports.
(f) Cooperate with other departments for smooth functioning.

• Mid-level managers have a specialized understanding of certain managerial tasks

related to their department only.
• They are responsible for carrying out the decisions made by top-level management.
• Certain organizations divide middle level management into 2 parts---like the upper
level middle management (departmental heads)---and lower level middle
management(deputy departmental heads)
• The job at this level is considered to be the toughest one.

LOW-LEVEL MANAGEMENT Supervisory or Operational Management

• Managers(Foremen and supervisors) at this level are assigned with minimum

authority and are placed at the lowest level of management.
• They are in direct link with the workers .This level is also known as Supervisory
Management as they directly oversee the efforts of the workforce.
• The MANAGERS are also called as FIRST LINE MANAGERS.

• The authority level and responsibility at this level of management is least (or
limited) as they have to work within the framework of the duties assigned to
them by middle level managers as per the plan drawn by the top level officials.
• Following are the designations at this level:
Foreman and supervisors (production department), office superintendent
,(office/administration department).

• Main functions are:

(a) Representing the problems or grievances of workers before the middle level
management. The supervisory level managers are directly linked with subordinates
so they are the right persons to understand the problems and grievances of
subordinates. They pass these problems to middle level management.
(b) Maintaining good working conditions and developing healthy relations between
superior and subordinate. The supervisory managers provide good working
conditions and create supportive work environment which improve relations
between supervisors and subordinates.
(c) Looking to safety of workers. Supervisory level managers provide safe and
secure work environment for workers.

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 (d) Helping the middle level management in recruiting, selecting and appointing the
workers. The supervisory level managers guide and help the middle level managers
when they select and appoint employees.
(e) Communicating with workers and welcoming of their suggestions. The
supervisory level managers encourage the workers to take initiative. They welcome
their suggestions and reward them for good suggestions.
(f) They try to maintain precise standard of quality and ensure steady flow of output.
The supervisory level managers make sure that quality standards are maintained by
the workers.
(g) They are responsible for boosting the morale of the workers and developing the
team spirit in them. They motivate ‘the employees and boost their morale.
(h) Minimising the wastage of materials.
• This level of management ensures that the decisions and plans taken by the
other two are carried out.
• Lower-level managers’ decisions are generally short-term ones.

IMPORTANCE OF MANAGEMENT
Management is an integral activity to any organization. It is universally necessary in all
organizations. It is the force that holds everything together and that sets everything in motion.
---Management is the life giving element in every business. Without it, the resources of
production remain resources and shall never become production.

“Anything minus management is nothing”

It is observed that most of the failures of the business is due to poor management.
So it becomes essential to understand the relevance of management for the business scenario.
This can be highlighted as follows:

1. Management helps in achieving Group Goals

• Management is required not for itself but for achieving the goals of the organisation.
The very essence of management is to achieve the organizational goals in short and
long run.
• The process of management helps in achieving the group goals by giving the common
directions to the individual efforts.
• Each function of management (Planning, Organising, staffing, directing and controlling)
is designed with a view to achieve the predetermined goal by ensuring effectiveness and
unity in group efforts.
• THUS with process of management and coordination an organization is able to achieve
its objectives (formal, individual and social).
2) Management helps in achieving personal objectives.
• The process of management by way of motivation and leadership assists the managers
to help their team members to achieve individual/personal objectives.
• Since there are many individuals with diverse needs working in an organization, the role
of a manager thus lies in enabling them to achieve the objectives of his team members
by providing them incentives, motivating them under the process of directing. Through
motivation and leadership, the management helps the individuals to develop team
spirit, cooperation and commitment to group success.
• HENCE management through its proper means ensures the satisfaction of individual
objectives while mainly working for the achievement of Organizational Objectives.
3) Management helps in the development of Society
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 • Proper management of resources ensures judicious and maximization utilization of
limited resources.
• Further management by pursuing its social objectives ensures
▪ the provision of good quality products at the reasonable prices to satisfy the
customers
▪ Good compensation to satisfy their employees
▪ Use of Environment friendly ways
▪ To create the employment opportunities for the underprivileged section of
society.
▪ To adopt new adopt new technology for the greater good of the society.
• Thus the overall effect of properly managed organization results in growth and
development of society and nation as well (from economic as well as from society’s
point of view)

4) Management increases efficiency

• Efficiency means using resources at the competitive cost. Management of resources
facilitates maximum utilization of resources with minimum wastage. The aim of the
managers is to reduce the cost and increase the productivity through better planning,
organizing, staffing, directing and controlling the activities of the organization.
• THIS also reduces wastage and overlapping of tasks hence leading to efficiency in
operations at a competitive cost.

5) Management creates a Dynamic Environment

• It is the most required feature on the part of management to create a dynamic
environment in the organization.
• This is due to the fact that all the organizations (business/non business) have to
function in an environment which is ever-changing. The organization needs to adapt
change as and when required otherwise it can lag behind.
• The job of the manager is to facilitate change .It is generally seen that an individual
in an organization resist change. ----A manager through proper motivational
techniques helps his team members welcoming and adapting change so as to maintain
competitive edge for the organisations.

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NATURE OF MANAGEMNET :some important issues
• Management has different principles which are derived on certain basis .These basis
leads to the need of understanding the nature of management. In the light of this need,
different authors have regarded MANAGEMENT AS:

Management
as a

A SCIENCE
AN ART PROFESSION

➢ The principles of management are evaluated against the principles of

respective concept.
➢ And then a conclusion is drawn to comment the nature of management in that
capacity.
➢ On a general note,
• Management is getting more close to being science as the managers are
becoming more logical in their approach.
• It is regarded as a Perfect/Fine Art
• And it is moving towards being called as profession as a trend.

• MANGEMENT AS SCIENCE
➢ Science can be defined as a systematic and organized body of knowledge
based on logically observed findings, facts and findings.
It is comprised of exact principles which can be verified and it can establish cause and
effect relationship

➢ To be called as science , A SUBJECT MUST QUALIFY FOLLOWING

CHARACTERISTICS(features of Science)
i. Systematic body of Knowledge: Science is a systematic body of
knowledge. Its principles are based on a cause and effect relationship.
ii. Principles are based on experimentation: The scientific principles are
derived after repeated experiments under different conditions and
places. They are based on the logical and scientific observations which
do not have any subjectivity
iii. Universal application of the principles with no deviation in results
irrespective of place, situation, etc.
iv. There is cause and effect relationship in scientific principles.

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 ➢ A close analysis of the above features in respect to management reveals
that although Management qualifies for the following principles
i) It also has systematic body of knowledge which is
supported by organized study material. It has its own
theories and principles which have been developed over a
period of time. All the management related courses are
based on specialized studies like human resource
management, finance management, etc.
ii) The results or the principles of management studies are also
based on repeated experiments and observations by the
managers under different conditions in different
organizations. All the decisions made by managers are
ought to be logically inclined. However, the implications of
the decisions taken may bring discretion of the managers
involved.
iii) We can very well establish the cause and effect relationship
in the application of managerial principles.

➢ The above features verify the management as to be a science concept but

due to involvement of human element management principles are
practiced with great amount of subjectivity. And even though it has
universal application ,the results tends to give variations based on
different situations, time and organization
➢ Since the principles of management are not as exact as the principles of
science, the application and use is not universal they have to be modified
according to the given situation. Thus Management cannot be considered
as a perfect science but it is very well known as A social science or soft
science or behavioral science.

MANAGEMNT AS AN ART

➢ Art can be defined as a skill to put in action a systematic body of

knowledge for the achievement of the given task.
Therefore it can be asserted that art consist in doing a job efficiently and achieving an
objective effectively by using:

----Practical knowledge (know –how)

----Personal skills

➢ To be called as an art ,A SUBJECT MUST POSSES THE FOLLOWING

FEATURES:
i) Personal skills
ii) Situational
iii) Personal judgment
iv) Development through constant practice
v) Practical knowledge
➢ Let us see that whether the management’s features satisfy
the features of Art or not:

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 i) Like in Art ,the management practices also involve theories
based on studies, observation ,experience. all this supported by
proper study material presenting all the fields like marketing
finance ,etc. THERE IS EXISTENCE OF THEORITICAL
KNOWLEDGE IN MAANGEMENT PRACTICES ALSO.
ii) An artist needs to be situational and creative in his application.
Similarly a manager applies his scientific knowledge to solve
the problems related to a particular situation as per the
requirement and in his personalized unique manner.
The success of a manger depends upon how well he handles the
situation using his experience, creativity, imagination and
innovation.

Further a manger attains his growth level through continuous

practice in long run which is again very similar to the growth
process of an artist.

iii) An artist uses his personalized and skillful approach to present

his ideas. Similarly a manager needs to apply his acquired
knowledge depending upon different situations in a
personalized manner. This leads to different styles of
management.
• All the management practices are based on same set of principles, as compare
to the features of Art. Alike in the field of art , wht distinguishes a successful
manger from a less successful manager is the ability to put the principles into
practice.
• Thus considering the above discussion, we can conclude that management
fulfills all the features of An art subject exactly. Therefore we caN say that
management can be regarded as a subject of Art completely or it can be
termed as Fine or Exact Art.
Management as a blend of ART and SCIENCE

It is said that Management is oldest of Art and Youngest of Science.

It is said that "management is the oldest of arts and the youngest of sciences". This
explains the changing nature of management but does not exactly answer what
management is? To have an exact answer to the question it is necessary to know the
meanings of the terms "Science" and "Art".
What is "SCIENCE" and ‘’ ART?
• Science can be defined as a systematic and organized body of knowledge based
on logically observed findings , facts and findings. It comprised of exact
principles which can be verified and it can establish cause and effect relationship
• Art' refers to "the way of doing specific things; it indicates how an objective is to
be achieved." Management like any other operational activity has to be an art.
Most of the managerial acts have to be cultivated as arts of attaining mastery to
secure action and results.
Management is both a Science as well as an Art
Management is both a science as well as an art. The science of management provides
certain general principles which can guide the managers in their professional effort. The
art of management consists in tackling every situation in an effective manner. As a
matter of fact, neither science should be over-emphasised nor art should be discounted;
the science and the art of management go together and are both mutually interdependent
and complimentary.
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 Management is thus a science as well as an art. It can be said that-"the art of
management is as old as human history, but the science of management is an event of
the recent past."

• MANAGEMENT AS PROFESSION
Profession can be defined as an occupation which has a well-defined body of knowledge,
is learned intellectually and organizationally. In a profession, examination or education
restricts entry. It is primarily concerned with services to others.

➢ To be called as a profession any occupation needs to satisfy the following traits:

i) Well defined body of knowledge.
ii) Restricted entry through examination
iii)Professional association.
iv) Existence of ethical code of conduct
v) Existence of service motive
➢ BY COMAPRING THE ABOVE FEATURES with the field of management we
can analyse that whether management can be regarded as a professional occupation or
not :

i) WELL DEFINED BODY OF KNOWLEDGE:

All professions are based on a well-defined body of knowledge that can be acquired through
instruction.
Similarly, all over the world management is being taught in the universities and management
institutes. There are abundance of management theories and study material available that
makes management also a body of knowledge like any other profession.

ii) RESTRICTED ENTRY:

The entry to a profession is restricted through an examination or through acquiring an
educational degree. For example, to become a chartered accountant in India a candidate has
to clear a specified examination conducted by the Institute of Chartered Accountants of India

In the same way, there are many formal training institutions like IIMs which are programs. These
institutes restrict the entry for the admissions through examinations. Therefore entrance in
management studies is also restricted to certain examinations. However, even in today’s time
organisations may prefer experience than qualification.
Thus this feature is not fully present in the case of management.

iii) PROFESSIONAL ASSOCAITION

All professions are affiliated to a professional association which regulates entry, grants
certificate of practice and formulates and enforces a code of conduct. To be able to practice in
India lawyers have to become members of the Bar Council which regulates and controls their
activities.
Although there are number of associations working at national and international levels like
All India Management associations (AIMA). But legally it is not compulsory for the
managers to be the part these associations.
Therefore this feature of profession is not fully satisfied by management.

iv) EXISTENCE OF ETHICAL CODE OF CONDUCT

All professions are bound by a code of conduct which guides the behaviour of its members.
All doctors, for example, take the oath of ethical practice at the time they enter the
profession.

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In the same manner the mangers are also expected to follow certain code of conducts listed
by their respective associations, but they are not legally bounded to follow them.

Therefore this feature of profession is also not fully present in the field of management.

iv)EXISTENCE OF SERVICE MOTIVE

The basic motive of a profession is to serve their client’s interests by rendering
dedicated and committed service. Like, the task of a lawyer is to ensure that his client gets
justice.

As in today’s world the concept of social responsibility expects from manager to work
for service motive, a sound management is in a way also contributes towards the
development of society but its desired means.

But the managers’ main motive is still to earn profits for its owners due to which the
service motive is considered as just a subsidiary motive.

After comparing all the features we can say that although management is not
fully satisfying the features of profession; but a close analysis will reveal that it is
certainly moving towards being a profession.”MANGEMNT IS EMERGING AS A
PROFESSION -AS A TREND”

COORDINATION- Definition and concept:

• A manager has to perform five interrelated functions in the process of managing an

organisation which is a system made up of different interlinked and interdependent
subsystems.
• A manager has to link these diverse groups towards the achievement of a common goal. The
process by which a manager synchronises the activities of different departments is known as
coordination.
• Coordination is the force that binds all the other functions of management. It is the
common thread that runs through all activities such as purchase, production, sales, and
finance to ensure continuity in the working of the organisation.
• Coordination is sometimes considered a separate function of management. It is however, the
essence of management, for achieving harmony among individual efforts towards the
accomplishment of group goals. Each managerial function is an exercise contributing
individually to coordination. Coordination is implicit and inherent in all functions of an
organisation.
• The process of coordinating the activities of an organisation begins at the planning stage
itself. Top management plans for the entire organisation. According to these plans the
organisational structure is developed and staffed. In order to ensure that these plans are
executed according to plans directing is required. Any discrepancies between actual and
realised activities are then taken care of at the stage of controlling. It is through the process
of coordination that a manager ensures the orderly arrangement of individual and group
efforts to ensure unity of action in the realisation of common objectives. Coordination
therefore involves synchronisation of the different actions or efforts of the various units of
an organisation. This provides the requisite amount, quality, timing and sequence of efforts
which ensures that planned objectives are achieved with a minimum of conflict.

Nature/ Characteristics of Coordination

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 1) Coordination integrates the Group efforts
• Coordination is applied to the group efforts and not to an individual. If only an
individual is working then the question of coordination does not arise.
• Coordination helps to integrate the efforts of all individuals who may have their personal
goals in mind while working. Their efforts are directed towards the common goals of the
organization.

2) Coordination ensures Unity of Action

• The managers working at different levels ensure that the efforts of individuals are
focused towards achieving the organsational goals.
• It is the force that bids to synchronize the working of individuals and departments
and eliminates the overlapping of activities.

*Production

*Finanace ORGANISATIONA *Marketing

L OBJECTIVES

*Human
Resources

*UNRELATED AND DIVERSE ACTIVITIES

3) Coordination is a Continuous Process

• Coordination is not one time process
• It begins at planning function and continues till controlling
• Results of particular period helps in better subsequent planning and activities related to
one department are consistently coordinated with the activities of other departments.
• Thus, it is regarded as an ongoing/ continuous process.

4) Coordination is an all Pervasive function.

• Coordination is required throughout the organsiation at different levels, among different
divisions, different departments, different groups and individuals.
• There may be some common and related activities amongst different divisions,
departments, and levels that affect the working of other.
• So to eliminate the overlapping, confusions and conflicts and avoid wastage of resources
coordination is required.
5) Coordination is the function of all the managers
• Maintaining coordination is required at all levels. Top level coordinates with middle
level to ensure that all policies are implemented.
• Middle level coordinates with lower level as well as top level and operational level
coordinates the activities with the middle level and actual workforce to avoid overlapping
and wastage of resources.
• Thus coordination is not the responsibility of any single level or manager; it’s the
function to be performed by all the managers.
6) Coordination is a Deliberate Function
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 • Every manager has to coordinate the efforts of different people working in the
organization. It is to be ensured even if all people cooperate with each other.
• Coordination MAKES SUCH COOPERATION FRUITFUL and gives proper direction
for the achievement of goals of the organization.

IMPORTANCE OF COORDINATION

1) Unity of action

Coordination brings unity of action among interdependent activities and departments of an

organization .This helps in achievement of organizational goals irrespective of the fact that all
activities are performed individually.

2. Avoids conflicts among departments.

Coordination helps in avoiding conflict amongst all department that are working with
individual objectives. Thus binding the activities of different department together helps the
organization to realize the group goals by avoiding the conflicts in individual objectives.

3. Harmonious implementation of plans.

Coordination helps in harmonious implementation of plans for the achievement of objectives

by securing cooperation in efforts. Cooperation amongst employees leads to willingness to
coordinate and thus the plans are achieved well in time.

3. Brings efficiency and economy

Coordination brings efficiency and economy by keeping together the team and by ensuring
suitable allocation of tasks to the various members and seeing that the tasks are performed
with harmony among the members themselves .The harmony and cooperation avoids the
overlapping of activities thereby resulting in efficiency leading to economy of operations.

4. High morale of employees

Coordination high morale of employees by providing a systematic work environment without
chaos .The smooth operations and achievement of results at the specified time motivates the
employees at work.Further assignment of right jobs and clear work relationships boost up the
morale of employees at the work.

Need of Coordination or why coordination is required :- (exp –from the book)

i) Specialty of the personnel.

ii) functional differentiation
iii) growth in size

Why coordination is considered as the essence of management!

Coordination can be defined as “Synchronization of efforts from the stand-point of time
and the sequence of execution”. In general coordination means bringing together the
activities and resources of organisation and bringing harmony in them.
Coordination is the base or primary function of every manager because various
departments of an organisation are working independently and there is need to relate and
integrate their activities.
Coordination: The Essence of Management:
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Coordination brings unity of action and integrates different activities of organisation.
Coordination is considered as the essence of management because of following reasons
1. Coordination is needed to perform all the functions of management:
(i) In planning coordination is required between main plan and supportive plans of
different departments.
(ii) In organising coordination is required between different resources of an organization
and also between authority responsibility and accountability.
(iii) In staffing coordination is required between skill of a person and job assigned to him,
between efficiency and compensation etc.
(iv) In directing function coordination is required between superior and subordinates,
between orders, instructions, guidelines and suggestions etc.
(v) In controlling function coordination is required between standards and actual
performance.
2. Coordination is required at all the levels:
(i) Top level requires coordination to integrate all the activities of organisation and lead the
efforts of all the individuals in one common direction.
(ii) Coordination is required at middle level to balance the activities of different
departments so that these can work as a part of one organisation only.
(iii) Lower level requires coordination to integrate the activities of workers towards
achievement of organisational objectives.

3. Coordination is the most important function of an organization:

Any company which fails to coordinate its activities cannot survive and run successfully
for a long period of time.
For example, Allwyn Company, established in 1942, was the first company to produce a
double-decker bus. It was running successfully as a leading electronic industry, especially
in refrigeration industry. By the end of 1980 the company faced the problem of
coordination. There was lack of balance and integration of different activities; as a result
the company started facing huge losses and by 1993 company had an accumulated loss of
Rs. 168 crore. Company failed to balance its departmental activities and product folios.
So in short we can say without coordination no company can work efficiently and earn
profit.

Q. Explain 3Elements of coordination.

Ans.
1. Integration. It means all the diverse and unrelated interests of various groups and
individuals should be integratedtogether so as to complete the work efficiently and
effectively.
2. Balancing. There should be proper balancing between various activities
ofProduction, Purchase, finance and Marketing so that coordination should
supplement the activity of each department by the other departments.
3. Timing. It means scheduling of all the activities so that they can be completed
within time limit.
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