Chapter 1 - Nature and Significance of Management
Definition
Management is the process of creating and maintaining an environment in which
people, working in groups, efficiently achieve selected aims. It applies to all types of
organisations-commercial or non-profit, large or small-and shows how individuals
and resources are combined to accomplish common objectives.
Management is both a science (with a structured set of knowledge) and an art
(through practical application). It is a dynamic function, which means it must change
and adjust with time and situations.
Management, has therefore, been defined as a process of getting things done
through others with the aim of achieving goals effectively and efficiently.
Key dimensions of Management
• Management of work: Every organisation exists to perform certain tasks.
Management plans, organises, assigns responsibilities, grants authority and
allocates resources to ensure that the organisation's work is completed. It
involves problem-solving, decision making, budgeting and control.
• Management of people: People are the most valuable resource of any
organisation. Even with advanced technology, the main challenge is to get
work done through people. This requires motivation, communication,
leadership and training.
• Management as a group activity: An organisation is made up of many
individuals with different needs and motives. They must be brought
together to work towards common objectives; this requires teamwork,
coordination and integration of efforts.
Efficiency and Effectiveness
Efficiency means doing things in the right manner with minimum waste of resources
(time, money, materials, effort). It emphasises the means or the process of achieving
objectives.
, Effectiveness means doing the right things - achieving the desired results and
accomplishing organisational goals. It emphasises the ends or the outcomes.
Both are necessary for good management. A manager must aim to be effective first
(achieve objectives) and then efficient (use minimum resources). Excessive emphasis
on efficiency without effectiveness may produce low-value outcomes; effectiveness
without efficiency may be costly and unsustainable.
Effectiveness V/s Efficiency
Characteristics of Management
• Goal-oriented process: Management always aims at achieving
predetermined objectives by proper use of resources.
• All-pervasive: Management is required in all types of organisations-business,
social, political, educational-at all levels and in all departments.
• Multidimensional: Management deals with work, people and operations; it is
not confined to a single activity.
• Continuous process: Management consists of a series of interrelated
functions that continue as long as the organisation exists.
• Group activity: It involves coordinating the efforts of a group of people to
achieve common goals.
• Dynamic function: Management must adapt to changing situations,
environments and technologies. Example: McDonald'schanged its menu to
suit Indian tastes to survive and grow in the Indian market.
• Intangible force: Management cannot be seen or touched; it is observed
through the behaviour and results of an organisation.
Definition
Management is the process of creating and maintaining an environment in which
people, working in groups, efficiently achieve selected aims. It applies to all types of
organisations-commercial or non-profit, large or small-and shows how individuals
and resources are combined to accomplish common objectives.
Management is both a science (with a structured set of knowledge) and an art
(through practical application). It is a dynamic function, which means it must change
and adjust with time and situations.
Management, has therefore, been defined as a process of getting things done
through others with the aim of achieving goals effectively and efficiently.
Key dimensions of Management
• Management of work: Every organisation exists to perform certain tasks.
Management plans, organises, assigns responsibilities, grants authority and
allocates resources to ensure that the organisation's work is completed. It
involves problem-solving, decision making, budgeting and control.
• Management of people: People are the most valuable resource of any
organisation. Even with advanced technology, the main challenge is to get
work done through people. This requires motivation, communication,
leadership and training.
• Management as a group activity: An organisation is made up of many
individuals with different needs and motives. They must be brought
together to work towards common objectives; this requires teamwork,
coordination and integration of efforts.
Efficiency and Effectiveness
Efficiency means doing things in the right manner with minimum waste of resources
(time, money, materials, effort). It emphasises the means or the process of achieving
objectives.
, Effectiveness means doing the right things - achieving the desired results and
accomplishing organisational goals. It emphasises the ends or the outcomes.
Both are necessary for good management. A manager must aim to be effective first
(achieve objectives) and then efficient (use minimum resources). Excessive emphasis
on efficiency without effectiveness may produce low-value outcomes; effectiveness
without efficiency may be costly and unsustainable.
Effectiveness V/s Efficiency
Characteristics of Management
• Goal-oriented process: Management always aims at achieving
predetermined objectives by proper use of resources.
• All-pervasive: Management is required in all types of organisations-business,
social, political, educational-at all levels and in all departments.
• Multidimensional: Management deals with work, people and operations; it is
not confined to a single activity.
• Continuous process: Management consists of a series of interrelated
functions that continue as long as the organisation exists.
• Group activity: It involves coordinating the efforts of a group of people to
achieve common goals.
• Dynamic function: Management must adapt to changing situations,
environments and technologies. Example: McDonald'schanged its menu to
suit Indian tastes to survive and grow in the Indian market.
• Intangible force: Management cannot be seen or touched; it is observed
through the behaviour and results of an organisation.
