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Chapter 1 : Nature and Significance Of Management

                          

Management:

Management is the process of designing and maintaining an environment in which individuals working together in groups efficiently and effectively accomplish selected goals.

Objectives of Management

1. Organizational Objectives:
   • Survival
   • Profit
   • Growth
2. Social Objectives. For example:
   • Use eco-friendly methods
   • Generate employment opportunities
3. Personal Objectives. For example:
   • Fair wages and salary
   • Good working conditions
   • Growth prospects

Effectiveness: Definition
According to Koontz, “Effectiveness means doing the right thing.” It means taking correct decisions and actions in every situation to achieve the targets.

Importance of Management

1. Management helps in achieving group goals.
2. Management increases efficiency of the employees.
3. Management creates a dynamic organization.
4. Management helps in achieving personal objectives.
5. Management helps in the development of society.

Features of Management

1. Management is goal oriented as it seeks to integrate the efforts of different individuals towards the accomplishment of both organizational and individual goals.
2. Management is pervasive as it is applicable to all types of organizations (economic, social and political), all sizes of organization (small, medium and large) and at all levels of management (top, middle and lower).
3. Management is multidimensional as it involves three dimensions namely:
   • Management of work i.e. to translate the work in terms of goals to be achieved and to assign the means to achieve it.
   • Management of people, which implies dealing with employees as individuals with diverse needs and also as a group of people.
   • Management of operations, in order to ensure the conversion of inputs into desired outputs for consumption.
4. Management is a continuous process as it is a series of continuous, composite, but separate functions i.e. planning, organizing, staffing, directing and controlling to be performed simultaneously all the time till an organization exists.
5. Management is a group activity requiring team work and coordination of the efforts of the diverse individuals in a common direction.
6. Management is a dynamic function as a business operates in an ever changing environment and this necessitates a constant review and revision of its goals and operations so as to adapt itself effectively to these changes.
7. Management is an intangible force which cannot be seen but the good quality of management is reflected through various indicators like achievement of goals, satisfaction among employees etc.

Functions of Management

1. Managment as a process contains a series of interrelated and interdependent functions namely,
   planning, organising, staffing, directing and controlling.
2. Planning relates to determining in advance what is to be done and who is to do it.
3. Organizing is the process of bringing together human, physical and financial resources and establishing productive relations among them for the purpose of achieving the desired goals efficiently and effectively.
4. Staffing involves manning the organizational structure in order to fill in the roles designed into the structure.
5. Directing involves leading, influencing and motivating employees to perform the tasks assigned to them.
6. Controlling is the management function of ensuring that events conform to plans.

Functions of Levels of Management

Nature of Management
Management as an Art	Management as a Science	Management as a Profession
Art is the skilful and personal application of existing knowledge to achieve desired results.	Science is a systematized body of knowledge that explains certain general truths.	Profession is an economic activity which requires specialized knowledge and skill.
Features of Art / Evaluation of Management as an Art:	Features of Science / Evaluation of Management as a Science:	Features of Profession / Evaluation of Management as a Profession:
1.Existence of theoretical knowledge: Management fulfills this criterion as there exist a number of theories and principles on management which have been formulated by various management experts.	1.Systematized body of knowledge: Management, like Science, is also a well- defined body of knowledge containing a number of theories and principles formulated by various management experts	1.Well defined body of knowledge:Management fulfills this criterion as it includes a set of theories and principles formulated by various management experts.

	Nature of Management
Management as an Art	Management as a Science	Management as a Profession
2.Personalized application:Management fulfills this criterion as a good manager works through a combination of practice, creativity, imagination, initiative and innovation.	2. Principles based on experimentation: Like the principles of pure science, the principles of management are also based on personal observation and tested through repeated experimentation.	2. Restricted entry: Unlike other professions, management as a profession does not fulfill this criteria as anyone can be called a manager regardless of his/her academic qualifications.
3. Based on practice and creativity:Management fulfills this criterion as a person becomes a better manager with constant practice and experience. This also leads to emergence of different styles of management.	3. Universal validity: Unlike the scientific principles, the principles of management lack universal validity as it deals with human behavior which is complex in nature. Different people react differently to the same situation and therefore their behavior cannot be predicted with accuracy.	3. Professional association:Several management associations exist today. However, unlike other professions, it is not necessary to be a member of such an association to become a manager. 4.Ethical code of conduct: All professions are bound by a code of conduct which guides the behavior of its members.
		5. Service motive: Like other professionals, a good management ensures that it serves both the objectives of profit maximisation and social welfare effectively through its existence.
Conclusion – Management is a complete art.	Conclusion – Management is a social science.	Conclusion – Management does not meet the exact criteria of a profession.

COORDINATION

Coordination: DefinitionCoordination is the process of integrating the individual and group efforts in pursuit of common goals.

Importance of Coordination

1. Growth in size: With the growth in the size of an organisation, there is a proportionate increase in the number of its employees.So there is a greater need to unify the efforts of diverse individuals towards the realisation of organisational goals.
2. Functional differentiation: As a result of functional differentiation in an organisation, its people and activities get divided into It facilitates the achievement of desired objectives with minimum conflicts by providing the necessary amount, quality, timing and sequence of efforts.small departments on the basis of functions like marketing, finance etc. Therefore, there is a need to reconcile the goals pursued by each of the departments with the goals of the organisation as a whole.
3. Specialisation: More number of specialists are deployed in the present day organizations keeping in mind the need for specialisation due to greater complexity and diversity in their way of functioning. In order to integrate the different approaches, interests or opinion of the specialists and resolve conflicts between them, coordination is essential

Features of Coordination:

1. It integrates group efforts into purposeful work activity.
2. It ensures unity of action as it acts as a binding force between and among departments.
3. It is a continuous on-going process as it is required till an organisation exists.
4. It is all pervasive as it is required at all levels of management.
5. It is the responsibility of all managers however the scope of their operations varies.
6. It is a deliberate function.

Coordination – The Essence of Management:

1. Although sometimes coordination is considered a separate function of management, it is the essence of management. It helps in creating harmony among individual efforts towards the realization of group goals.
2. It is the force that binds all the other functions of management.
3. It is the common thread that runs through all organizational activities like production, marketing, finance etc. to ensure continuity in the business operations.
4. It prevails through all the functions of management starting from the planning stage itself. The organizational structure is developed in line with the plans. The staffing function is carried out in accordance with the organizational structure. The directing function is performed by guiding, inspiring and motivating employees in the desired manner. The controlling function helps to take care of any discrepancies between actual and planned activities.
5. If facilities the achievement of desired objectives with minimum conflicts by providing the necessary amount, quality, timing and sequence of efforts.