Meaning and Definition of Management
Management is an activity which is necessary wherever there is a group of people working in an organisation, towards a common goal. It is a process of planning, organising, actuating and controlling the organisation’s operations and activities, effectively and efficiently. Thus, management means to manage men tactfully in the organisation to achieve group goals.
Definitions of management given by some of the eminent scholors are given below:
1. According to Harold Koontz and Heinz Weihrich Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.
2. According to Robert L Trewelly and M Gene Newport Management is defined as the process of planning, organising actuating and controlling an organisation’s operations, in order to achieve co-ordination of the human and material resources, essential in the effective and efficient attainment of objectives.
3. According to Kreitner Management is the process of working with and through others to effectively achieve organisational objectives by efficiently using limited resources in the changing environment.
Nature or Features of Management
The salient features of management which highlight its nature and as follows:
1. Management is Goal-oriented: Management is a means to achieve certain economic and social goals. Every organisation has some goals which are the basic reason for its existence. Management unites the efforts of different individuals in the organisation in order to achieve these goals. The basic goal of management is to ensure efficiency and economy in the utilisation of human, physical and financial resources. The success of management is measured by the extent to which the established goals are achieved.
2. Management is Universal: Management is an essential element in every organisation irrespective of the size or type of the organisation. All types of organisations, e.g., family, club, university, government, army, cricket team or business, require management. The basic functions of management are the same in every organisation. Thus, management is all pervasive.
3. Management is an Unifying Force: Management integrates human efforts with physical and financial resources. It creates mutual co-operation so that people can work together efficiently. It also combines men, money, materials and machinery in an appropriate manner.
4. Management is a Social Process: Management is accomplished by, with and through people. It is concerned with interpersonal relations and human behaviour. Managers have to create mutual understanding and co-operation among people. The human factor is inseparable from management.
5. Management is a Group Activity: Management is concerned with group efforts because it creates effective co-operation among people working together in a group. Management cannot be thought of, and does not exist, independent of the organisation it serves. Thus, management is a group rather than an individual activity.
6. Management is Both a Science and an Art: Management consists of a systematic body of knowledge as well as the skill of applying that knowledge to practical situations. The science and art of management are complementary. Scientific principles help to improve the technique of managing. With every improvement in the scientific principles of management, the art of management is bound to improve.
7. Management is a Continuous Process: Management is an ongoing activity. Management goes on without breaks or gaps. Management continues so long as an organisation exists to achieve certain objectives. Managerial functions are performed by all managers all the time.
8. Management is Multi-Dimensional: There are three main dimensions of management.
They are as follows:
(a) Management of Work: Every organisation exists for the performance of some work. Management translates this work in terms of goals to be achieved. All individuals in the organisation are assigned jobs so that the total work can be performed efficiently and effectively.
(b) Management of People: Management gets the work done through people. A manager deals with employees as individuals who have diverse needs and behaviour. He also deals with them as groups. Management makes people work towards the organisation’s goals.
(c) Management of Operations: In order to achieve the goals, various operations of the organisation, such as production of a product or service, its marketing, raising and utilising funds, and so on, have to be managed.
These three dimensions of management are interlinked and interdependent.
9. Management is an Intangible Force: Management is an unseen force. It cannot be seen but its presence can be felt in the way the organisation functions. People judge the effectiveness of management on the basis of the end results. However, the people who manage an organisation are tangible and visible.
10. Management is Creative: Management involves creating an environment wherein people can perform their tasks efficiently and effectively. The internal environment has to change appropriately when there are changes in the external environment. For example, a company which produces colour television sets has to adopt new technology because demand for colour televisions has declined sharply. It must produce LCD/LED sets to survive and grow in the market. Management produces results which are more than the aggregate of individual contributions.
Importance of Management
Management is indispensable for the successful functioning of every organisation. Management is the force that holds everything in an organisation together and that sets everything in motion. Every business needs repeated stimulus which can only be provided by management. According to Drucker, “Management is a dynamic life giving element in an organisation, without which resources of production remain mere resources and never become production.”
The importance of management can be judged more clearly from the following points:
1. Achievement of Group Goals: A human group consists of several persons, each specialising in doing a part of the total task. Each person may be working efficiently, but the group as a whole cannot realise its objectives unless there is mutual co-operation and co-ordination among the members of the group. Management creates team work and co ordination in the group. It reconciles the objectives of the group with those of its members so that each one of them is motivated to make the best contribution towards the accomplishment of group goals.
2. Increasing the Efficiency: Managers forecast the need for materials, machinery, money and manpower. They ensure that the organisation has adequate resources and, at the same time, does not have idle resources. They create and maintain an environment conducive to highest productivity. Managers provide training and guidance to employees that they can make the best use of the available resources.
3. Minimisation of Cost: In the modern era of cut-throat competition, no business can succeed unless it is able to supply the required goods and services at the lowest possible cost per unit. Management directs day-to-day operations in such a manner that all wastage and extravagances are avoided. By reducing costs and improving efficiency, the managers enable an enterprise to face competition and earn profits.
4. Establishment of a Sound Organisation Structure : Management creates a sound organisation structure in accordance with the desired objectives and the nature of the work to be performed to achieve them. It lays down a logical and sound pattern of authority responsibility relationships between various positions. Management also fills this structure with the right persons having the required qualifications and experience. It also creates an appropriate work environment to create mutual understanding, co-operation and team work among the people working together in the organisation.
5. Survival and Growth of an Organisation : Modern business operates in a complex and ever-changing environment. An enterprise has to adapt itself to the changing demands of the market and society. Management helps people to adapt to changes in the environment. Changes in business environment create risks as well as opportunities. Managers enable the enterprise to minimise the risks and maximise the benefits of opportunities. In this way, managers facilitate the continuity and prosperity of business in a dynamic environment.
6. Generation of Employment: By setting up and expanding business enterprises, managers create jobs for the people. People earn their livelihood by working in these organisations. Managers also create such an environment that people working in enterprises can get job satisfaction and happiness. In this way, managers help to satisfy the economic and social needs of the employees.
7. Development of the Nation : Efficient management is equally important at the national level. The development of a country largely depends on the quality of the management of its resources. Capital investment and import of technical know-how cannot lead to economic growth unless wealth-producing resources are managed efficiently. By producing wealth, management increases the national income and the living standards of the people. That is why management is regarded as a key to the economic growth of a country.
