CONCEPT,NATURE AND IMPORTANCE I OF

MANAGEMENT

By Rekha Prasad

• Every individual works in the organized group to achieve what he can’t achieve individually

• Management is an essential part of any group activity. Group can be:-

– Family – Play group– Work group– School– Business firm– A government

• Management is universal process• Wherever there is human activity, there is

management

“Management”

Management is looked at from the following angles

• As a Noun

• As a Process

• As a Discipline

Management as a Noun

Management refers to all those persons who are concerned with getting the things done through others.

Ex.---persons of supervisory responsibilities,

MD, GM, Board of Directors

HUMAN RELATIONSHIP CONCEPT

Management as a Process

Management refers to all that manager does.

Ex.---Planning, Organizing , Staffing, Directing, Controlling

FUNCTIONAL CONCEPT

Management as a Discipline

Management refers to a body of knowledge, a practice and a discipline.

Management refers to the principles and practices of management as a subject of study

Definition of Management

Functional ConceptTo manage is to forecast and plan, to

organize, to command, to coordinate and to control

----Henry Fayol

Human Relation Concept

Management is the art of directing and inspiring people ---- Mooney & Railey

Management is the art of getting things done through & with people in

formally organized groups. Its an art of creating an environment in

which people can perform and individuals could co-operate towards

attaining of group goals ---- Herold Koontz

Nature/Characteristics of Management

• Goal- oriented—(economic & social objective)

• Continuous process

• Coordinative Force

• Intangible Force

• Part of Group Effort

• Accomplishes Results through the Cooperation of Others

• Balances Effectiveness & Effeciency

• Dynamic Discipline

• Science as well as an Art

• Universal in character

• Needed at all levels of Organization

Purpose/Objectives of Management• Optimum utilization of resources

• Minimizing the element of risk

• Improving performance

• Planning for the future.

• Growth and Development of business

• Better quality goods

• Ensuring regular supply of goods

• Discipline and Morale

• Mobilizing the best talent

• Research and Development

Importance of Management

1. Accomplishment of goals

2. Optimum utilization of resources

3. Sound Organisation

4. Providing Vision & Foresight

5. Harmony in work

6. Helping the Employees in Achieving Personal Objectives

7. Development of Society & Nation

8. Increased profit

Scope of Management

• Planning• Organizing• Staffing• Directing • Controlling• Reporting• Budgeting

• Financial Management

• Personnel Management

• Production management

• Purchase Management

• Material Management

• Office Management

Branches of Management

A Science or an Art ? The debate whether management is

a science or an art is complicated. Management depicts characteristics of both.

Management as a Science

Science is a systematized body of knowledge pertaining to a particular field of enquiry.

i. Systematized body of knowledge

ii.Scientific Observation

iii.Experimentation

iv.Verifiable Principles

v.Universal Application

Mgt as Science

• Systematized body of knowledge that uses scientific methods of observation

• Principles are evolved on the basis of continued observation

• Principles are exact & universal application without any limitation

• Cause & effect relationship• Validity can be verified and they prove a reliable basis of

predicting future events

It is systematized body of knowledge acquired by mankind

through observation and experimentation and which is

capable of verification

LIMITATION OF MANAGEMENT AS A SCIENCE OR

MANAGEMENT AS AN INEXACT OR SOCIAL SCIENCE

• Management principles are not fundamental truths & not supported by research (not a exact science).

• It is difficult to establish cause & effect relationship• Application of management principles depend upon

situations & factors.• Management deals with people at work & it is very difficult

to predict their behavior accurately.• Principles of management do not have a universal

application (soft science or behavioral science)• Management lacks certainty of results

Management as an Art

Art signifies the application of Knowledge & personal skills to bring about desired results

i. Body of Knowledge

ii. Personalised Application of Knowledge & Skills

iii. Practice

iv. Creativity

Mgt as an ArtIt is systematic application of skill or knowledge in effecting

accomplishment of results.

It represents the methods or ways of doing specific thing and

indicates how an objective is to be achieved.

Every art is practical and is concerned with creation of

something.• Personal skill

• Practical knowledge

• Regular practice

• creativity

MANAGEMENT IS AN ART

AS WELL AS

SCIENCE

Management as a Proffesion

i. Specialised field of Knowledge

ii. Restricted entry based on Education & Training

iii. Representative or Professional association

iv. Ethical Code of Conduct for self regulation.

v. Social Responsibility

vi. Professional fee.

Mgt & Admin

Three Views

• Administration is part of management

• Administration comes first, management follows it

• Management and administration are same

1. Management2. Administration

Management = Administration

1. Administration2. Management