Chapter 1_ Nature of Mgt_1.7.docx

Chapter 1: Nature and Significance of Management

Meaning of Management

• Management is a process of achieving organizational goals through others effectively and efficiently.

Definitions of Management

1. Art of getting things done through people (Mary Parker Follett).

2. Creation and maintenance of an internal environment for efficient group performance (Koonts & O'Donnel).

Effectiveness vs. Efficiency

• Effectiveness: Achieving goals on time.

• Efficiency: Achieving goals with minimal resources.

• Importance of balancing effectiveness and efficiency for successful management.

Characteristics of Management

1. Goal-oriented: Aims at achieving specific objectives.

2. Pervasive: Applicable in all types of organizations.

3. Multidimensional:

   • Management of Work: Different organizational activities (e.g., factories, schools).

   • Management of People: Focusing on human resources.

   • Management of Operations: Overseeing production inputs and outputs.

4. Continuous Process: Involves planning, organizing, staffing, directing, and controlling.

5. Group Activity: Must be conducted within a team or group.

6. Dynamic Function: Principles must adapt to organizational changes.

7. Intangible Force: Its impact is seen through results like profit increases.

Objectives of Management

1. Organizational Objectives: Goals for survival, profit, and growth.

2. Social Objectives: Conducting business in line with societal expectations.

3. Personal Objectives: Aligning personal goals with organizational goals for harmony.

Importance of Management

1. Helps achieve group goals effectively.

2. Increases efficiency through optimal resource use.

3. Creates a dynamic organization that adapts to change.

4. Aids in achieving personal objectives alongside organizational ones.

5. Contributes to societal development.

Nature of Management

1. Art: Application of knowledge and personal skills to achieve desired results.

   • Existence of theoretical knowledge.

   • Personalization in application.

   • Based on practice and creativity.

2. Science: Organized body of knowledge based on observations.

   • Systematic knowledge and experimentation.

   • Universal validity.

3. Profession: Occupation with specialized knowledge and regulated entry.

   • Well-defined knowledge body.

   • Restricted entry through formal education.

   • Professional associations and ethical codes.

Levels of Management

1. Top Level Management:

   • Includes CEO, managing directors.

   • Responsible for policy framing and decision-making.

2. Middle Level Management:

   • Comprises departmental heads.

   • Acts as a bridge between top and lower management.

3. Lower Level Management:

   • Includes supervisors and foremen.

   • Assigns tasks and manages daily operations.

Functions of Management

1. Planning: Determining future actions for goal achievement.

2. Organizing: Establishing relationships among members.

3. Staffing: Recruiting and maintaining the right personnel.

4. Directing: Guiding and inspiring team members.

5. Controlling: Measuring performance against standards.

Coordination in Management

• Integration of various activities for achieving organizational goals.

• Essential across all management functions and levels.

Characteristics and Importance of Coordination

1. Integration: Uniting related activities.

2. Unity of Action: Coordination ensures aligned objectives among departments.

3. Continuous Process: Ongoing in nature, tied to all management functions.

4. Pervasive Function: Required at all levels of management.

5. Deliberate Function: Requires conscious effort from leadership.

6. Growth and Specialization: Coordination harmonizes efforts in large, specialized organizations.

Management in 21st Century

• Modern organizations operate in a global environment influenced by advancements in communication technology and international relations.