Meaning of Management

  • The word “management” derived from Greek word ‘nomos’ which means ‘management’.
  • In order to achieve individual goals, management has become the essence coordinating the individual efforts.
  • Management simply means to manage in a group of people.
  • Management can be defined as a process by which responsible people in an organization get things done through the efforts of other people in group activities.

How is the management form in the Organization or a company?

  • A group of people, who accept the responsibility to run an organization and direct its activities, forms the management of that organization.
  • Proper field of study is required.
  • It is management that provides planning,  organization and direction are necessary for business operations.
  • Management is a VITAL/important function concerned with all aspects of the working of an enterprise/company/organization.
  • Management, may be defined as the art of getting things done.

Definitions of ‘Management’ given by various Economists.

  • Hick defines management as “the process of getting things done by the people (लोगो द्वारा) and through the people (लोगों के माध्यम से)”.
  • Koontz and O’Donnell state that management means, “Getting things done through and with people (लोगों के साथ)”.
  • According to Henry Fayol, “To Manage/supervise is to forecast/predict/anticpate, and to plan/arrange, to organize/systematic order, to command/control and to coordinate/manage.”
  • Haimann observes, “Management is the function of getting things done through people and directing the efforts of individuals towards a common objective”.
  • The purpose of organisations (businesses and institutions) is to create wealth.
  • If the basic purpose of the business or institution is to create wealth, then the primary role of the manager is to add value to this wealth-creating process.

Types of Business and Institutions

  • For-Profit Organisations (Businesses) – Businesses tend/likely  to develop their employees ( which are human assets) for the ultimate purpose of financial goals (i.e., profit). Human Resource benefits society by creating both material and human wealth. Material wealth is usually in the form of financial profit and human wealth through the professional development of their employees/personnel.
  • Not-For-Profit Organisations (Institutions) – Not-for-profit businesses create both material and human wealth, but profits are used for charitable purposes. Typically, institutions such as charities, provide physical and emotional support for the disadvantaged and less fortunate members of society, by helping them manage their problems, creating learning opportunities, helping children to grow and develop, healing the sick, providing stability and a sense of belonging.

How Adding Value By Managers Impact the Management of Institution or Organization?

  • Managers add value to the wealth-creating process of the business or institution by:
    • Changing a part of the company’s strategy,
    • Finding more effective way of marketizing a product,
    • Initiating the redesign of a manufacturing process or technological change
    • Developing and implementing a more effective approach to customer service,
  • Implementing a new organisational structure for the organisation and leading employees through the change process,
  • Selecting and developing the most competent employees as part of a succession planning strategy, and so forth.
  • Effective managers add value to every activity that they engage in i.e. through every conversation they have, day-to-day decisions and activities.
  • Ineffective managers add cost rather than value. Managers are usually not neutral, they either add value or they add cost to the wealth-creating process of the business or institution.

What is the objective of Management Practice?

  • Efficiently (in the least time and at the least cost – usually measured as output divided by inputs; both inputs and output may be measured in units of quantity, money or time).
  • Effectively (doing the right things to a required standard of quality).
  • Well-managed, for-profit organisations improve or maintain their share price,
  • Well-managed, not-for-profit organisations improve or maintain their membership (more people are attached more reputation is built)
  • Well-managed governments are re-elected by voters, – Well-managed countries experience improved living standards.
  • For example a car repair shop might reduce the time spent on repairing items but if the repairs are not done properly and the repairer gets a reputation for poor quality, the shop may quickly lose customers. Hence, the Quality matters.

What are the Objectives/Purpose of Management?

  • Achieving Maximum Output with Minimum Efforts: The main objective of management is to attain/get maximum results with minimum efforts and resources (smart work). Management is basically concerned with discovering and utilizing human, material and financial resources in such a manner that they result in best combination. This combination results in the reduction of various costs.
  • Optimum Use of Resources: Through proper utilization of various factors of production, their efficiency can be increased to a great extent which can be obtained by reducing spoilage, wastages and breakages of all kinds. This in turn leads to the saving of time, effort and money, which is essential for the growth and prosperity of any enterprise.
  • Maximum Prosperity: Management ensures smooth and coordinated functioning of the enterprise. This in turn helps in providing maximum benefits to the employees in the shape of good working conditions, suitable wage system, incentive plans on the one hand and higher profits to the employer on the other.
  • Human Betterment & Social Justice: Management serves as a tool for the betterment of the society. Through increased productivity and employment, management ensures better standards of living for the society. It provides justice through its uniform policies.

What is the Importance of Management?

  • Achieving Group Goals: To assemble and organize the resources, in an effective manner to achieve the goals (E.G., workers working in a factory and has given a goal to produce 100 units of masks,). It directs group efforts towards achievement of pre-determined goals.
  • Optimum/Best Possible Utilization of Resources: Management utilizes all the physical and human resources productively. This leads to efficacy/effectiveness in management. Management provides maximum utilization of scarce resources by selecting its best possible alternate use in industry from out of various uses.
  • Reduces Costs: It gets maximum results through minimum input by proper planning. Management uses physical, human and financial resources in such a manner that it results in best combination. This helps in cost reduction.
  • Establishes Sound Organization: Effective authority and responsibility relationship, i.e., who is accountable to whom, who can give instructions to whom, who are seniors and who are subordinates. Management fills up various positions with right persons with right skills, training and qualifications. All jobs should be clear to everyone.
  • Establishes Equilibrium: To adapt/adjust by the organization according to the changing demand of market / changing needs of societies. It is responsible for the growth and survival of the organization.
  • Prosperity of Society: Good management makes a difficult task easier by avoiding wastage of scarce resources. It improves standard of living and increases the profit which is beneficial to business and society at large.

Whether Management is considered Science Or Art ?

  • Science may be defined as knowledge systematized through application of scientific methods.
  • Science is systematic in the sense that certain relationships, principles and their limitations have been discovered, tested and established into theories, laws and principles But it does not mean that the principles and laws so established are immutable/absolute for all times to come. Discovery of new knowledge and phenomena can always change any principle, irrespective of its nature, standing and application.
  • Science includes physical sciences, such as physics, chemistry, mathematics (also known as exact sciences) and social sciences, such as economics, sociology, psychology (known as variable sciences) as they are based on human behaviour which is unpredictable.
  • Management can be described as a science, albeit/although a variable one, if compared to the nature of exact physical sciences. It is based on coordination, organization, decision-making and so on.
  • Management is complex human phenomena about which knowledge is still limited;
  • Management is still a developing science; and
  • Management is an inter-disciplinary (combination of principles) science-it draws freely from other disciplines, such as economics, sociology and psychology.

What are the Features of Management as an Art?

  • It includes
    • Use of knowhow/knowledge and skills/talent/ability;
    • Accomplishment of concrete results
    • Creation needed for further improvements;
    • It is personalized in the sense that every manager has his own approach to problems.
  •  Science is a body of knowledge, while art denotes the mode of practical application of knowledge.

How do we Consider Management as a Profession?

  • Features of profession are:-
    • Systematic body of knowledge;
    • Need for learning and proper organization;
    • Entry restricted on the basis of examination or education;
    • Dominance of service motive

What is the Functions of Management ?

  • Henry Fayol, the French industrialist and popularly known as the ‘founder of modern management theory’, divided all activities of industrial undertakings into six groups:-
    • Technical
    • Commercial
    • Financial
    • Security
    • Accounting
    • Managerial
  • The elements require in deciding the above functions. He grouped these elements into five managerial functions such as:
    • Planning
    • Organising
    • Leading
    • Directing & Coordinating
    • Controlling
  • Luther Gulick  coined the word POSDCORB using the initial letters of management functions:
    • planning (P),
    • organising (O),
    • staffing (S), 
    • directing (D), 
    • coordinating (CO),
    • reporting (R), and Reporting is a part of control function,
    • budgeting (B). – represents both planning and controlling.

What is Pictorial Representation of Management Process?

For example, of a day-shift manager at a local McDonald’s restaurant who has to every day coordinate the work of individuals taking and filling customer orders at the front counter and the drive-through windows, direct the delivery and unloading of food supplies, and address any customer concerns that arise. The manager ‘manages’ all the parts of this restaurant so that the restaurant’s daily sales goals are met. Managers at all levels in an organisation may be involved in managing the organisation but the balance of activities varies at different levels in an organisation.

What is Development of Management Theory?

  • Recognition of organization and management in the Buddhist order and the Sangha in 530 B.C. Roman Catholic Church and ‘military organizations’ also offer good examples of early application of management principles.

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