NATURE AND CONCEPT OF

MANAGEMENT

Presented by : GROUP 1
 Significance of Studying
Management
1. Encourages Initiative

Management encourages initiative. Initiative means to do the right thing at the

right time without being told or influenced by the superior. The employees should
be encouraged to make their own plans and also to implement these plans.
Initiative gives satisfaction to employees and success to organization.

2. Encourages Innovation

Management also encourages innovation in the organization. Innovation brings

new ideas, new technology, new methods, new products, new services, etc. This
makes the organization more competitive and efficient.

3. Facilitates growth and expansion

Management makes optimum utilization of available resources. It reduces wastage

and increase efficiency. It encourages team work and motivates employees. It also
reduces absenteeism and labor turnover. All this results in growth, expansion and
diversification of the organization.
4. Improves life of workers

Management shares some of its profits with the workers. It provides

the workers with good working environment and conditions. It also
gives the workers many financial and non-financial incentives. All
this improves the quality of life of the workers.

5. Improves corporate image

If the management is good, then the organization will produce good

quality goods and services. This will improve the goodwill and
corporate image of the organization. A good corporate image brings
many added benefits to the organization.
6. Motivates employees

Management motivates employees by providing financial and non-financial

incentives. These incentives increase the willingness and efficiency of the
employees. This results in boosting productivity and profitability of the
organization.
7. Optimum use of resources

Management brings together the available resources. It makes

optimum (best) use of these resources. This brings best results to
the organization.

8. Reduces wastage

Management reduces the wastage of human, material and financial

resources. Wastage is reduced by proper production planning and
control. If wastage is reduced then productivity will increase.

9. Increases efficiency

Efficiency is the relationship between returns and cost. Management

uses many techniques to increase returns and to reduce costs.
Higher efficiency brings many benefits to the organization.
10. Improves relations
Management improves relations between individuals, groups,
departments and between levels of management. Better relations
lead to better team work. Better team work brings success to the
organization.

11. Reduces absenteeism and labor turnover

Absenteeism means the employee is absent without permission.

Labor Turnover means the employee leaves the organization.
Labor absenteeism and turnover increases the cost and causes many
problems in the smooth functioning of the organization. Management
uses different techniques to reduce absenteeism and labor turnover
in the organization.

12. Encourages Team Work

Management encourages employees to work as a team. It develops a

team spirit in the organization. This unity bring success to the
organization.
 Define Management

The Process of dealing with or

controlling things or people.
 Universally- Accepted
Functions of Management
 The 5 functions put forward by Henri Fayol may therefore not completely represent the total complexity
faced by managers, and the normative approach may be too rigid to illustrate which functions managers
need to perform in modern contemporary companies and organizations. However, the 5 functions presented
by Henri Fayol give a structured overview of several tasks needed to be performed by all managers, which
gives managers an initial overview of which main functions they should be focusing on in their daily work.

Planning
Managers must plan for future conditions, develop strategic objectives and secure the achievement of future
goals. Therefore, managers must evaluate future contingencies affecting the organization, and shape the future
operational and strategic landscape of the company.

Organizing
Managers must organize the workforce in an efficient manner and structure and align the activities of the
organization. Managers must also train and recruit the right people for the job, and always secure a sufficiently
skilled and educated workforce.

Commanding
Managers must supervise subordinates in their daily work, and inspire them to achieve company goals.
Likewise it is the responsibility of managers to communicate company goals and policies to subordinates. The
commanding of subordinates should always be consistent with company policies, and every manager should
treat subordinates in line with the standards of the company.

Coordinating
Managers must harmonize the procedures and activities performed by the company, meaning that every activity
of each organizational unit should complement and enrich the work of another.

Controlling
Managers must control that company activities are in line with general company policies and objectives. It is
also the responsibility of the manager to observe and report deviations from plans and objectives, and to make
initiatives to correct potential deviations.
 Management as a
Science and an Art
 Management can be considered as both science as well as an art.

Management is Science because of several reasons like - it has universally accepted

principles, it has cause and effect relationship etc, and at the same time it is art
because it requires perfection through practice, practical knowledge, creativity,
personal skills etc.

Management is both an art and a science. Management combines features of both

science as well as art. It is considered as a science because it has an organized
body of knowledge which contains certain universal truth. It is called an art
because managing requires certain skills which are personal possessions of
managers. Science provides the knowledge & art deals with the application of
knowledge and skills.

A manager to be successful in his profession must acquire the knowledge of

science & the art of applying it. Therefore management is a judicious blend of
science as well as an art because it proves the principles and the way these
principles are applied is a matter of art. Science teaches to know and art teaches
to do. E.g. A person cannot become a good singer unless he has knowledge about
various ragas & he also applies his personal skill in the art of singing. Same way it
is not sufficient for manager to first know the principles but he must also apply
them in solving various managerial problems that is why, science and art are not
mutually exclusive but they are complementary to each other (like tea and biscuit,
bread and butter etc.).
 Evolution of
management theories
History
Management theory originated with
"scientific" and "bureaucratic" management
that used measurement, procedures and
routines as the basis for operations.
Organizations developed hierarchies to apply
standardized rules to the workplace and
punished workers for not following them.
With the "human relations" movement,
companies started emphasizing individual
workers. Contemporary management
theories, including system theory,
contingency theory and chaos theory, focus
on the whole organization, with employees as
a key part of the system.
Culture
Management theories have evolved to
acknowledge that corporate culture can be a
contributor to performance. If you can
develop a sense of belonging to a group for
your company, you can manage the business
for improved financial performance and
return on investment. To work well with a
positive corporate culture as a manager, you
have to work through the culture and not try
to control it. A positive corporate culture
takes care of a lot of informal exchange of
information and behavioral norms.
Quantitative Methods
All contemporary management theories emphasize
measurement and quantitative analysis. Management
has evolved to focus on fundamental company
operating results and business variables that are
relevant, specific to goals and quantifiable. Information
technology allows you to analyze large data sets and
extract trends. You can evaluate key performance
indicators, which track data affecting your objectives, to
tell you how well you are advancing toward your goals.
You can perform these evaluations independently of the
management style and organizational structure of the
company.
Competing Approaches
Management theories have evolved into two competing
orientations. Theory X assumes employees don't want
to work and act out of self-interest. Managers have to
put in place a disciplinary structure to guide employees
in the execution of their work. If you function with
theory X, you have to tell employees what to do and
encourage them to do it. Theory Y assumes employees
want to carry out interesting and rewarding work and
seek reward in the achievement. Managers have to set
goals and allow employees to find creative ways to reach
them. If your company culture is in line with theory Y,
you facilitate employee effort and act more like a coach.