Welingkar’s Distance Learning Division

CHAPTER-01

NATURE OF MANAGEMENT

We Learn – A Continuous Learning Forum

Welingkar’s Distance Learning Division

Introduction A business develops in course of time with complexities.

Management is not only essential to business concerns but also essential to Banks, business concerns but also essential to Banks, Schools, Colleges, Hospitals, Hotels, Religious bodies etc. Every business unit has objectives of its won. These objectives can be achieved with the co-operative efforts of several personnel. As E. Demock has rightly said “the management is not a matter of pressing a button, pulling a lever, issuing orders, scanning P & L statement, promulgating rules and regulations. Rather it is the power to determine what shall happen to the personalities and happiness of entire people, the power to shape the destiny of a nation and of all the nations which make up the world”

We Learn – A Continuous Learning Forum

Welingkar’s Distance Learning Division

A team is not made only of individuals.A team is made of a common goal and

a common ideal. A common cause,and a motivating force is

the spirit of the team.

We Learn – A Continuous Learning Forum

Welingkar’s Distance Learning Division

Meaning of Management

Management is the art of getting things done by a group of people with the effective utilization of available resources. There are various definitions given by various management gurus but simply management is the process consisting of the functions of planning, organizing, staffing, directing and controlling the operations to achieve specified objectives

We Learn – A Continuous Learning Forum

Welingkar’s Distance Learning Division

Features or Characteristics of Management

Art as well as science Management is an activity Management is a continuous process Management achieving pre-determined objectives: Organized Activities Management is a factor of production Management as a system of activity Management is a discipline Management is a purposeful activity Management is a distinct entity

We Learn – A Continuous Learning Forum

Welingkar’s Distance Learning Division

Features or Characteristics of Management

Management aims at maximizing profit Decision ––making Management is a profession Universal application Management is getting things done Management as a class or a team Management as a career Direction and control Dynamic Management is needed at all levels Leadership quality

We Learn – A Continuous Learning Forum

Welingkar’s Distance Learning Division

Characteristics of Management

Art as well as science: Management is both an art of possessing of managing skill by a person and a science because of developing certain principles or laws applicable in a place where a group of activities are co-coordinated.

Management is an activity: It is a process of activity relating to the effective utilization of available resources.

We Learn – A Continuous Learning Forum

Welingkar’s Distance Learning Division

Characteristics of Management

Management is a continuous process: The process of management mainly consists of planning, organizing, directing and controlling the resources. The resources (men and money) of an organization should be used to the best advantages of the organization to achieve the objectives.

Management achieving pre-determined objectives: The objectives of an organization are clearly laid down. Every managerial activity results in the achievement of objectives fixed well in advance.

We Learn – A Continuous Learning Forum

Welingkar’s Distance Learning Division

Characteristics of Management Organized Activities : Management is a group of organized activities. It can

be in the form of limited company or a small club. All the organizations have an objectives and these objectives is achieved through systematic way of organized activities.

Management is a factor of production : The factors of production includes land, labor, capital and entrepreneurs. Land means a place where production is carried on. Labour refers to paid employees either skilled, unskilled, semi-skilled, manager, supervisor and the like. Capital refers to the working capital in the form of cash, raw material and finished goods and fixed capital as in the form of plant facilities and production facilities. These land, labour and capital can not achieve the organizations goals. It can be achieved only by an organizations goals. It can be achieved only by an entrepreneur in case of small organization and by management in case of large organizations.

We Learn – A Continuous Learning Forum

Welingkar’s Distance Learning Division

Characteristics of Management Management as a system of activity : Individuals are foundation of

the management. Management ensures the goal congruence between individuals and organization objectives.

Management is a discipline: The boundaries of management are not exact like other physical science. It may be increased by continuous discovery of more aspects of business enterprise.

Management is a purposeful activity: Management is concerned with objective achievement through planning, organizing, staffing, directing, controlling and decision making.

We Learn – A Continuous Learning Forum

Welingkar’s Distance Learning Division

Characteristics of Management

Management is a distinct entity: Management is a distinct from its functional activity. As function is “to do” while management is to “how to get things done”

Management aims at maximizing profit: The available resources are properly utilized to get desired results.

Decision ––making: Decision making arises because there is availability courses of actions. The quality of decision taken determines the organization performance

We Learn – A Continuous Learning Forum

Welingkar’s Distance Learning Division

Characteristics of Management Management is a profession: It posses the qualities of a profession.

Universal application: The same principles of management are applicable in every type of industry only the practice differs from one to another.

Management is getting things done: Manager gets things done by others.

Management as a class or a team: Class means group of people having homogeneous characteristics to achieve common objectives.

We Learn – A Continuous Learning Forum

Welingkar’s Distance Learning Division

Characteristics of Management Management as a career: Now a day’s management is

developed as a career focused on specialization like Finance, Marketing, Systems, Personal etc and they are appointed in the key posts of the management.

Direction and control: Manager directs his subordinates in the performance whenever necessary. Direction & control deals with the activities of human effort.

Dynamic: The management is not static in the ever changing fast developing business world as new techniques are developed and adopted by the management

We Learn – A Continuous Learning Forum

Welingkar’s Distance Learning Division

Characteristics of Management

Management is needed at all levels: The functions of planning, organizing, directing, controlling and decision making is performed by all the level of organization.

Leadership quality: Leadership quality is developed in the persons who are working in the top level management.

We Learn – A Continuous Learning Forum

Welingkar’s Distance Learning Division

Functions of Management

The important functions of management are as below Planning Organizing Staffing Directing Co-coordinating Motivating or actuating Controlling Innovation Representation Decision Making Communication

We Learn – A Continuous Learning Forum

Welingkar’s Distance Learning Division

Importance of Management Management meets the challenge of change Accomplishment of group goals Effective utilization of business Effective functioning of business Resource development Sound organization structure Management directs the organization Integrates various interests Stability Innovation Co-ordination and team spirit Tackling problems A tool for personality development

We Learn – A Continuous Learning Forum

Welingkar’s Distance Learning Division

Luther Gullik classifies the functions of management as

POSDCORB:

Planning, Organising, Staffing, , Directing, Co-ordinating, Reporting and Budgeting.

We Learn – A Continuous Learning Forum

Welingkar’s Distance Learning Division

Importance of Management

Management meets the challenge of change: In this ever changing business world, an efficient management saves the business brought by the challenges.

Accomplishment of group goals: The achievement of objectives depends upon proper planning of available resources and quality of decision taken and control made by the unit.

Effective utilization of business: In eight M’s man, money, materials, machines, methods, motivation, markets and management, management has control over remaining M’s.

Effective functioning of business: Ability, experience, mutual understanding, co-ordination, motivation and supervision are the factors for effective functioning of business. Management utilizes the abilities of workers and fulfills their executions through motivation techniques.

We Learn – A Continuous Learning Forum

Welingkar’s Distance Learning Division

Importance of Management Resource development: Resources like men, material, money and machines are

identified and developed by the management.

Sound organization structure: Sound organization structure clearly defines the authority and responsibility.

Management directs the organization: Management directs and controls the org.

Integrates various interests: Management takes steps to integrate various interests to achieve the objectives of an organization.

Stability: The fluctuations caused by changing policy of the government, pressures from competitors and changing preferences by customers in the business are stabilized by the management.

We Learn – A Continuous Learning Forum

Welingkar’s Distance Learning Division

Importance of Management Innovation: New ideas are developed by management and

implemented in the organization.

Co-ordination and team spirit: Management coordination the activities of different departments and establishes team spirit to achieve the objectives.

Tackling problems: Good management acts as a friend of workers while tackling problems.

A tool for personality development: Management gives direction and training to the workers that help them to raise their efficiency and productivity

We Learn – A Continuous Learning Forum

Welingkar’s Distance Learning Division

Administration and Management

There are various opinions of writers for the meaning of administration and management. In general, administration is distinguished as a top level function while management as a lower level functions

We Learn – A Continuous Learning Forum

Welingkar’s Distance Learning Division

Difference between Administration

We Learn – A Continuous Learning Forum

Sr. No.

Basis of Distinction

Administration Management

1 Policy and Objectives

Determines policy to be followed and decide the objective to be achieved.

Implements the policy and achieve the objectives.

2 Directing of human efforts

Not directly involves in the execution of plan and achievement of objectives

Directly involves in the execution of plan and achieving objectives.

3 Main functions Planning, organizing and staffing Directions, motivation and control.

4 Levels of executives

Top level executives (owners or board of directors)

Lower level executives ( Manager, supervisor and workers)

5 Position Acts as a principal Acts as an agency

6 Knowledge Requires administrative ability more than technical ability

Requires technical ability more than administrative ability.