Nature and significance of management
Management – Meaning & Definition
Management is a group activity which co-ordinates human resources and non – human
resources in order to attain the objectives of an organization. It includes ‘ planning,
organizing, staffing, directing, coordinating and controlling.
Definitions:
“Management is the art of getting things done through other people.” – Mary Parker Follet
“Management is what a manager does.” – Peter F. Drucker
Management is Essential for the success of an organization. It ensures proper use of factors of
production like men, material, machinery, methods and money.
Efficiency and Effectiveness of Management
Efficiency and effectiveness are both commonly used management terms. Efficiency means
whatever we produce or perform; it should be done in a perfect way. Efficiency refers to
doing things in a right manner. It is defined as the output to input ratio and focuses on getting
the maximum output with minimum resources. Effectiveness has a broader approach, which
means the extent to which the actual results have been achieved to fulfil the desired outcome,
there for, doing accurate things. Being Effective is about doing the right things, while being
efficient is about doing things right.
Difference between Efficiency and Effectiveness:
Efficiency Effectiveness
1) Work is to be done in a correct manner 1) Doing accurate work only
2) Emphasis is on inputs and outputs 2) Emphasis on means and ends
3) Short run objective 3) Long run objective
4) Narrow concept (Introverted) 4) Wide concept (Extroverted)
Characteristics/Nature of Management
1. Management is goal oriented.
2. Management is universal in character.
3. Management is multidimensional, which include
• Management of works
• Management of people
• Management of operations
4. It is a continuous process.
, 5. It is a group activity.
6. It is a dynamic function
7. It is an intangible force.
Objectives of Management
Management fulfils three basic objectives like organisational, social and personal.
1. Organisational Objectives: Management is responsible for setting and achieving
objectives of the organisation. It includes:
• Survival: Management must strive to ensure the survival of the organization.
• Profit: Management has to ensure that the organization makes reasonable
profit.
• Growth: management must exploit fully the growth potential of the
organization
2. Social objectives: Social objectives are defined as the fulfilment of responsibility of
an organisation towards society. They are:
• Providing quality goods to consumers at reasonable price.
• Using environmental friendly methods of production.
• Giving employment opportunities to the society.
• Providing basic amenities like hospitals, schools, etc., to the employees and
general public.
• Payment of taxes to the government
3. Personal objectives: It refers to the objectives to be determined with respect to
employees of the organisation. They are:
• Giving adequate remuneration.
• Providing good working environment.
• Participation in management and providing a share in the profit.
• Opportunities for training and development.
• Management has to reconcile personal objectives with organisational
objectives for harmony in the organisation.
Need and Importance of Management
1. Achieving Group Goals: Efficient management co-ordinates all the activities for the
achievement of organisational goals.
2. Increases Efficiency: Management helps to reduce costs and increase productivity
through better planning, organising, directing, staffing and controlling the activities of
the organisation.
3. Creates Dynamic Organisation: A good management enables the business to adapt
and adjust according to the changes in the business environment.
Management – Meaning & Definition
Management is a group activity which co-ordinates human resources and non – human
resources in order to attain the objectives of an organization. It includes ‘ planning,
organizing, staffing, directing, coordinating and controlling.
Definitions:
“Management is the art of getting things done through other people.” – Mary Parker Follet
“Management is what a manager does.” – Peter F. Drucker
Management is Essential for the success of an organization. It ensures proper use of factors of
production like men, material, machinery, methods and money.
Efficiency and Effectiveness of Management
Efficiency and effectiveness are both commonly used management terms. Efficiency means
whatever we produce or perform; it should be done in a perfect way. Efficiency refers to
doing things in a right manner. It is defined as the output to input ratio and focuses on getting
the maximum output with minimum resources. Effectiveness has a broader approach, which
means the extent to which the actual results have been achieved to fulfil the desired outcome,
there for, doing accurate things. Being Effective is about doing the right things, while being
efficient is about doing things right.
Difference between Efficiency and Effectiveness:
Efficiency Effectiveness
1) Work is to be done in a correct manner 1) Doing accurate work only
2) Emphasis is on inputs and outputs 2) Emphasis on means and ends
3) Short run objective 3) Long run objective
4) Narrow concept (Introverted) 4) Wide concept (Extroverted)
Characteristics/Nature of Management
1. Management is goal oriented.
2. Management is universal in character.
3. Management is multidimensional, which include
• Management of works
• Management of people
• Management of operations
4. It is a continuous process.
, 5. It is a group activity.
6. It is a dynamic function
7. It is an intangible force.
Objectives of Management
Management fulfils three basic objectives like organisational, social and personal.
1. Organisational Objectives: Management is responsible for setting and achieving
objectives of the organisation. It includes:
• Survival: Management must strive to ensure the survival of the organization.
• Profit: Management has to ensure that the organization makes reasonable
profit.
• Growth: management must exploit fully the growth potential of the
organization
2. Social objectives: Social objectives are defined as the fulfilment of responsibility of
an organisation towards society. They are:
• Providing quality goods to consumers at reasonable price.
• Using environmental friendly methods of production.
• Giving employment opportunities to the society.
• Providing basic amenities like hospitals, schools, etc., to the employees and
general public.
• Payment of taxes to the government
3. Personal objectives: It refers to the objectives to be determined with respect to
employees of the organisation. They are:
• Giving adequate remuneration.
• Providing good working environment.
• Participation in management and providing a share in the profit.
• Opportunities for training and development.
• Management has to reconcile personal objectives with organisational
objectives for harmony in the organisation.
Need and Importance of Management
1. Achieving Group Goals: Efficient management co-ordinates all the activities for the
achievement of organisational goals.
2. Increases Efficiency: Management helps to reduce costs and increase productivity
through better planning, organising, directing, staffing and controlling the activities of
the organisation.
3. Creates Dynamic Organisation: A good management enables the business to adapt
and adjust according to the changes in the business environment.
