NATURE OF MANAGEMENT

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CHAPTER 1

• NATURE OF MANAGEMENT

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Introduction

• A business develops in course of time with
  complexities. Management is not only essential to
  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

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Principle of Management
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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

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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

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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

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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.

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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.

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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 entrepreneur in
  case of small organization and by management in
  case of large organizations.

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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.

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Characteristics of Management

• Management is a distinct entity Management is
  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

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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.

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Characteristics of Management

• Management as a career Now a days 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

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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.

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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

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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

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• Luther Gullik classifies the functions of
  management as
• POSDCORB
• Planning, Organising, Staffing, Directing,
  Co-ordinating, Reporting and Budgeting.

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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 Ms
  man, money, materials, machines, methods,
  motivation, markets and management, management
  has control over remaining Ms.
• 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.

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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.

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Importance of Management

• Innovation New ideas are developed by management
  and implemented in the organization.
• Co-ordination and team spirit Management
  coordinates 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

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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

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Difference between Administration and Management
Sr. No. Basis of Distinction Administration Management
1 Policy and Objectives Determines policy to be followed and decide the objectives 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. Direction, 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.