Chapter 1. Nature and Significance of management
Chapter 1. Nature and Significance of management
Management
Management
|
Organizing |
|
Purchase |
|
Sales |
|
Production |
|
Directing and
Controlling |
|
Staffing |
|
Controlling |
|
Planning |
|
Management of Operation |
|
Management of People |
|
Management of Work |
Difference between Effectiveness and
Efficiency
|
Basic Of Difference |
Effectiveness |
Effciency |
|
Meaning |
It
refers to completion of task on time. |
It
refers to completion of task correctly with minimum cost with no wastage of
resources. |
|
Objective |
It is concerened withte
achievement of end result. |
It is concerned with cost benefit
analysis utilizing minimum resources and getting maximum benefits. |
|
Consideration |
Producing
target production on time. |
Producing
target production to its minimum cost. |
|
Focus |
The quality of the end product and
its completion, within the given time. |
The focus is on the optimum
utilization of resources, there is a continuous cost benefit analysis i.e.,
more benefit at a lower cost. |
Characteristics Of Management
1. M/anagement
is a goarl-oriented process
Ø An organization has a set of basic goals which are the basic
resons for its existence
Ø Management integrates the efforts of different individuals
in the organization towards the achieving of these goarls
2. Management
is all pervasive
Ø Management is a universal phenomenon. The use of management
is not restricted to business firms only, it is applicable to profit-making,
non-profit-making, business or non-business organizations: even a hospital,
school, hostel, club and even house has to be managed properly
3. Management
is multidimensional
A.
Management Of
Work:
v All organizations
exist for the performance of some work or goals, Management activiteies aim at
achiving goals or work/tasks that are to be accomplished.
B.
Management Of
People:
v The task of
management is to make people work towards achieving the organization’s goal, by
turning their strengths effective and their weakness irrelevant.
C.
Management Of
Operations:
v Organisation of
any nature, for its survival, has to procue and provide servies. This is done
by a production process, where raw material, technology etc. are transformed
into desired output or produce.
4. Management
is a continuous process
Ø The process of
management includes planning, organizing, directing, staffind and controlling.
These functions are performed simultaneously and continuously by all the
managers all the time for the achievement of the goals.
5. Management
is a group activity
Ø An organization
is a collection of diverse individuals with different needs. Every meber of the
group has a different purpose for joining the organisationbut as members of the
organization they work towards fulfilling the common organizational goals.
6. Management
is a dynamic function
Ø Management is a
dynamic function and has to adapt itself to the changing or dynamic
environment.
7. Management
is an intangible force
Ø Management is a
intangible, unseen force. Its functioning is not visible but its results are
felt.
Survial To provide employment opportunities Adequate reward to employees
Profit To
prevent envirounment pollution To Provide healthy atmosphere
Growth To
contriute in rising standard of living etc.
To provide participation in
profit
1.
Organisational Objective
Management
has to achieve a variety of objectivers in all areas considering the interest
of all stakeholders including shareholders, employees, customers and the
government. These are:
a)
Survival: Every business wants to survive or
continue for a long. Management must make efforts to ensure long run survival
by generatin sufficient revenues to conver its costs.
b)
Profit: Management has to ensure that the
organization makes a profit. Profit provides a vital incentive for the
continued successful poerations of the enterprise. Profti is essential for
convering costs and risks of the business.
c)
Gowth: A business needs to add to its
prospects in the long run, for this it is important for the business to grow.
Growth of a business can be measured in terms of sales volume, increase in the
number of employees, the number of products or the increase in capital
investment etc.
2.
Social Objectives
Ø To perform viarious activiteieswhich
are useful and beneficial for the society like quality goods at reasonable
price, creating employment opportunities and all other activities which bring
prosperity to the society.
3. Personal
Objectives
Providing best opportunities for the
development and well being of employees working in the organization like
training and development of workers, proper salaries, healthy working
conditions etc.
Importance
of Management
1.
Management helps in achieving group
goals:
Ø The task o a manager is to guide and
to vgive a common direction to the various acivities, individuals and groups
efforts in achieving the overall goals of the organization.
2. Management
increases efficiency:
Ø The aim of amanager is to reduce
costs and increase productivity through better planning, organizing, directing,
staffing of controlling the acivities of the organization.
3. Management
creates a dynamic organization:
Ø Management helps people adapt to
thease changes so that the organization is able to maintain its competitive
edge.
4. Management
helps in achieving personal objectives:
Ø A manager motivates and leads his
team in such a manner that individual members are able to achieve personal
goals while contributing to the overall organizational objective.
5. Management
helps in the development of society:]
Ø It helps in development of the
society by providing quality goods & services, creating employment
opportunities, incorporating new technologies and always striving for growth
and development.
Level
Of Management
|
Operational Level Management |
|
Middle Level Management |
|
Top Level Management |
|
Authority
|
|
Accountability |
|
Determining
Objectives |
Interpretation
of policies to low level |
Representing
grivevances of workers |
|
Framing
Plans and plicies |
Organizing
activities of department |
Good
working conditions |
|
Organizing
activities |
Recruitment
and selection of employees |
Safety
of workers |
|
Assembling
all the resources |
Motivating
people to perform to their best |
Helping
middle level in recruitment and selection |
|
Welfare
and survival of organization |
Controlling
and instructing employees |
Welcoming
suggestion of workers |
|
Liaison
with outside world |
Co-operation
with other departments |
Maintaining
quality standards |
|
Performance
appraisal |
Implementing
the plans framed by top level |
Boosting
the morale of workers |
Nature Of
Management
Management as a
sience
Science
is described as a body “representing knowledge gathered by observation and experiment,
critically tested, systematized and brought under general principles,” science
consists of principles which can be verified and is based on cause and effect
relation.
1. Systematized
body of knowledge:
Ø Principles of
science can be understood because of availability of systematic and organized
knowledge.
2. Principles
based on experimentation:
Ø Scientific
principles are first developed throught observations and then tested through
repeated experimentation under controlled conditions.
3. Universal
Validity:
Ø Scientific
principles have universal validity.
Management
as an ART
Art
is concerned with the practical application of the theoretical knowledge. It is
mainly concerned with the application of knowledge and skill creativity in
different situtations.
Art has following essential
features:
1. Existence
of theoretical and practical knowledge:
Ø Art pre supposes the existence of
certain theoretical knowledge in each field of practice, it may be dance, public speaking, acting,music etc.
Ø Management is concerned with putting
the available knowledge into practice so as to accomplish predetermined goals.
2. Personalised
Application:
Ø Management is a practice rather than
a science. It is not knowledge but performance. The test of management lies in
skillful use of one’s technical knowledge and proficiency to ensure maximum
productivity and profitability at the minimum cost.
3. Based
On Practice and Creativity:
Ø As art develops through constant
practice, similarly, management also deve3lops by practice.
Ø An efficient manager can convert a
challenge into an opportunity by mobilizing the available resource at his
command to make the best of a challenging situation.
Management both
as Science and ART
Management
is both science as well as art. Like, science it has systematic and well-organized
body of knowledge and like art it requires personal skill, creativity and
practice to apply such knowledge in best possible way.
Management as a profession
The
rapid development of business and the sepration of ownership and management in
the corporate form of enterprises have contributed.
The following are
the main features of profession:
1. Well-defined
body of knowledge:
Ø All professionas
are based on a well-defined body of knowledge that can be acquired through
instruction and training.
Ø It is based on
tested and experimented principlese on various business situations.
2. Restricted
Entry:
Ø The entry to a
profession is restricted through an examination or thourgh acquiring an
educational/professional degree.
3. Professional
Association:
Ø All professions
are associated to a professional association which regulates entry, grants
certificate of practice and formulates and enforces a code of conduct.
4. Ethical
Code Of conduct:
Ø All professions
are bound by a code of conduct which guides the behavior of its members.
Ø The code of
conduct means rules and regulations framed to guide the behavior of
professionls.
5. Service
Motive:
Ø The basic motive
of aprofession is to serve their client’s intersts by rendering dedicated and
committed services.
Ø The task of a
lawyer is to ensure that his client gets justice.
1. Planning
Ø Planning is
always the first function performed by every manager.
Ø Planning is
refers to deciding in advance what to do, how to do, when to do, and who is
going to do it.
Ø Planning is the
ase of all other function of management
2. Organising
Ø Customizing is
the management function of assigning the duites, grouping tasks, publishing
authority and allocating resources required to carry out a specific plan.
3. Staffing:
Ø Staffing simply
means’ finding the right people for the rights job.”
Ø It is a very
important aspect of management is to make sure that the right people with the
right qualification are available at the right places and times to accomplish
the goals of the organization.
4. Directing:
Ø Controlling is
the management function of monitoring organizational performing towards the
attainment of organizational goals.
Ø In this function
manager try to match the actual performance with the planned performance.
Coordination
Ø Coordination can be defined as-
Ø “Synchronization of efforts form the
stand-point of the tim and the sequence of execute.”
Ø “Coordination is the base or primary
function of every manager.”
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