IMPERIAL GLOBAL CLASSES

UNIT 1: ManagementNature and Significance

Management
Management is the coordination of all resources through the process of planning,
organizing, directing and controlling in order to attain stated objectives.
Characteristics of Management
The important characteristics of management are:1. Management is a goal oriented processManagement unites the efforts of
different individuals in the organization towards achieving goals.
2. Management is all pervasiveThe activities involved in managing an
enterprise are common to all organizations.
3. Management is multidimensionalManagement is a complex activity that
has three main dimensions. There are management of work, management of
people and management of operations.
4. Management is a continuous processManagement performs the
functions of planning, organizing, directing, staffing and controlling in a
continuous series.
5. Management is a dynamic functionsManagement is a dynamic function
and has to adapt itself to the changing environment.
6. Management is an intangible forceManagement is an intangible force
that cannot be seen but its presence can be felt in the way the organization
functions.
Objectives of management
Management has the following objectives:
1. Organisational objective
Utilising the human resources and material resources to the maximum
possible advantage.
To earn profit for the survival and growth of the business.
2. Social Objectives
Using environmental friendly methods of production.
Giving employment opportunities and providing basic amenities like
schools.
3. Personal objective
Management should pay fair, reasonable and competitive
remuneration to employees.

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Importance of Management
Importance of management can be justified on the following grounds.
1. Management helps in achieving goalsManager gives a common direction
to the individual effort in achieving the overall goal of the organization.
2. Management increases efficiencyManager aims to reduce costs and
increase productivity through better planning, organizing, directing, staffing
and controlling the activities of organization.
3. Management creates a dynamic organizationManagement helps people
to adapt to the changing environment of business so that the organization is
able to maintain its competitive edge.
4. Management achieves personal objectivesA manager motivates his
team in such a manner that individual member are able to achieve personal
goals.
5. Management helps in development of societyManagement helps in
development of society by providing good quality products and by creating
employment opportunities.
Management as an art
Management as an art can be justified on the following grounds:
1. Practical knowledgeManagement has to plan, organize, guide, coordinate
and control the activities of his subordinates, so practical knowledge of there
functions is very essential.
2. Personal skillManagement is personal and individual skill. Every manager
has its own original distinct way of doing his own work.
3. Concrete resultManagerial activities aim at achieving a definite goal.
4. Constructive objectivesManagement as an art creates such environment
where the employee gives his best service to the enterprise.
5. Perfection through practiceLike other arts managerial efficiency is
developed through practice.
Management as a Profession
Management as a profession can be justified on the following grounds:
1. Specialised body of knowledge and skillEvery ordinary human being
cannot efficiently and effectively manage the affairs of the business, unless he
has special ability for the work.
2. Formal trainingTraining is management is available in specialized
institutions.
3. Social responsibilityAn efficient manager renders selfless service to the
society.
4. Code of ConductManagers are also required to keep the information
regarding the enterprise secret, to make the use of the resources for the
business and not to misuse internal information.
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Management as Science
Management as Science can be justified on the following grounds:
1. Universally accepted principlesManagement as Science has
fundamental theories and concepts which are applicable in the real situations
of business.
2. A method of Scientific enquiryThe principles of management are
developed after careful analysis as such they can be applied to achieve the
desired result.
3. Establishing relationship between causes and their effects
Management principles clearly establishes relationship between causes &
their effects.
4. Verifiability of the principlesManagement principles are practically used
in the real situations of the business, so their results are tested and verified.
5. Predictability of resultsManagement theories are based upon scientific
analysis and investigation, so their results are definite, exact & predictable.
Limitations of management as profession:
1. Most of the managers are not properly qualified, even some of them are
illiterate but perform well.
2. Practice of hereditary manages is prevalent.
3. Though all India management association has made a code of conduct but
most of the managers are not even members of this association.
Levels of management:
There are three levels of management. These are:1. Top level management
2. Middle level management
3. Low level management
Top level management
This level is designated as board of directors, managing director, general managers and
senior most managers. Functions of top level management are:1. Determining objectives of the business.
2. Formulating board policies of the business.
3. Taking important decisions.
4. Issuing guidelines to medium level managers.

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Middle level managementThis level is designated as functional manager,
departmental heads & other executive officers. Functions of middle level management
are:1. Interpreting & communication the policies of the top level management.
2. Determining organizational set up of their departments.
3. Issuing instruction to low level managers.
4. Motivating subordinates for higher productivity.
Low level managementThis level of management includes foremen, supervisors, and
inspectors. Functions of low level management are:1. Work as link between middle level management and workers.
2. Ensuring safety of workers, machines tools, equipments etc.
3. Preventing wastage & misuse of raw material.
4. Assigning duties to individual workers.
Coordination Coordination is the orderly arrangement of group efforts to provide unity
of action in pursuit of common purpose.
Nature of CoordinationFeatures of Coordination are:-1. Coordination integrated group effortsCoordination gives a common
focus to group effort into purposeful work activity.
2. Coordination ensures unity of actionThe purpose of coordination is to
secure unity of action in the realization of common purpose.
3. Coordination is a continuous processCoordination is not a one time
function but it begins at planning stage & continues till controlling.
4. Coordination is an all pervasive functionCoordination is required at all
levels of management due to the interdependent nature of activities of various
departments.
5. Coordination is managers responsibilityTop level managers
coordinates their subordinates, middle level manager coordinates both top
and low level managers, and low level manager coordinates workers.
6. Coordination is a deliberate functionA manager has to coordinate the
efforts of different people in a conscious and deliberate manner.
Importance of CoordinationIt is important because of the following reasons:-1. Unity of actionIn order to bring unity of action coordination at all levels is
essential.
2. Integrated effortsCoordination is needed to have balanced & integrated
development of the enterprise.
3. Source of CooperationCoordination is the means to achieve cooperation.
4. Avoiding overlapping and duplicationThe absence of coordination
causes duplication, overlapping and misuse of resources.
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5. Cordial atmosphereCoordination brings employees nearer to each other
and develops brotherhood.
Functions of managementManagement performs the following functions
1. PlanningPlanning is the function of setting goals in advance and
developing a way of achieving them efficiently and effectively.
2. OrganizingOrganizing is the function of assigning duties, grouping tasks,
establishing authority and allocating required resource.
3. StaffingStaffing is the function of finding the right people for right job. It
involves recruitment, selection, placement and training of personnel.
4. DirectingDirecting involves leading, influencing and motivating employees
to perform the tasks assigned to them.
5. ControllingControlling is the management function of monitoring
organizational performance towards the attainment of organizational goals.
Effectiveness versus Efficiency
For management, it is important to be both effective and efficient. It is easy to be
effective and ignore efficiency. Suppose a companys target is 5000 units in a year, but
due to power failure manager has to operated double shift and after that he is able to
produce 5000 units but at higher cost.
So, he is effective but not efficient. At the same time manager can
cut down the cost, but not achieve the target production which will lower down the
demand of their goods in the market. Thus, the manager would become efficient but not
effective.
Therefore, it is important for management to achieve goals with minimum
resources i.e., as efficiently as possible while maintaining a balance between
effectiveness and efficiency.

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