Nature and Significance of Management

Vocabulary practice flashcards covering terminology, definitions, key figures, and core concepts from the Nature and Significance of Management lecture notes.

Mary Parker Follet

Known as the Mother of Modern Management ($1868 - 1933$), she defined management as "the art of getting things done through others."

F W Taylor

Known as the "Father of the Scientific management" ($1856 - 1915$), who defined management as the art of knowing exactly what you want your men to do and seeing that they do it in the best and cheapest way.

Management (Modern Concept)

The process of getting things done through others with the aim of achieving desired common goals effectively and efficiently.

Effectiveness

Concerned with the end result, it means the accomplishment of goals or achieving targets on time.

Efficiency

Concerned with cutting down costs, it means the accomplishment of goals at minimum possible cost through optimum utilization of resources.

Pervasive

A feature of management indicating it is required at all levels, all organization sizes, all types of business (manufacturing or trading), and all sectors (public or private).

Intangible Force

A feature of management where functions cannot be seen, but its presence is felt through profit and disciplined staff.

Multidimensional Activity

A characteristic of management that includes the management of work, management of people (work force), and management of operations.

Survival

The basic organizational objective of every organization, which is possible only when it is able to cover its cost and earn profit.

Growth

An organizational objective measured in terms of sales, number of branches, number of products, or number of employees.

Social Objectives

Management goals that deal with the commitment of the firm towards society, including using environmental friendly methods and providing employment opportunities.

Personal Objectives

Management goals aimed at improving the satisfaction level of employees through financial needs (salary), social needs (peer recognition), and personal growth.

Management as a Social Science

Management is considered a science but not a pure science because its principles are applied to human beings rather than physical materials and results are not definite.

Top Level Management

Consists of the Board of Directors, CEO, and Chairman; they perform administrative functions, determine business objectives, and frame plans and policies.

Middle Level Management

Consists of departmental heads such as production and sales managers who implement policies, select employees, and act as a link between top and lower management.

Lower Level Management

Consists of supervisors, foremen, and inspectors who are directly related to workers, pass on instructions, and ensure the standard of quality and safety.

Planning

The process of thinking before doing, which means deciding in advance what to do, how to do it, and bridging the gap between current standing and future goals.

Organising

The function of identifying and grouping activities, establishing an organizational structure, and distributing authority and responsibility.

Staffing

The function of finding the right person for the right job at the right time through recruitment, selection, training, and placement.

Directing

The process of instructing, guiding, motivating, and leading people; it is considered the heart of the management process.

Controlling

The management function involving establishing standards of performance, measuring current performance, and taking corrective action for any deviations.

Coordination

Considered the essence of management, it is the process by which managers synchronize the activities of different departments to ensure unity of action.

Henri Fayol

A management theorist who developed $14$ principles of management based on his $30$ years of experience in a Coal Mining Company.

AIMA

The All India Management Association, which has laid down a code of conduct to regulate the activities of managers in India.