NATURE AND PURPOSE OF MANGEMENT

Business Studies.

What is Management?– Management is the process of planning,

organizing, staffing, directing, and controlling the enterprise resource efficentively for achieving the goals of the organization. Effectiveness in management is concerned with doing the right task, completing activities and achieving goals. Efficiency means doing the task correctly and with minimum cost.

Characteristics of Management– Management is a goal-oriented process.– Management is all pervasive.– Management is multidimensional.– Management is a continuous process.– Management is a group activity.– Management is a dynamic function.– Management is an intangible force.

Objectives of Management:–Organizational Objectives

–Social objectives–Personal objectives

Importance of Management:– Management helps in achieving group goals

– Management increases efficiency– Management creates a dynamic organization– Management helps in achieving personal objectives– Management helps in the development of society

Nature of Management:Management as an Art

• Existence of theoretical knowledge

• Personalized application

• Based on practice and creativity

Management as a Science

• Systematized body of knowledge

• Principles based on experimentation

• Universal validity

Management as a Profession

• Well-defined body of knowledge

• Restricted entry• Professional

association• Ethical code of

conduct• Service motive

Levels of Management.. Top Level

• Consists of Chairperson, CEO, Chief Operating Officer or equivalent and their team.

• They integrate and coordinate the various activities of the business.

Middle Level

• Consists of divisional heads, Supervisor and Operations Manager etc.

• Main tasks are to follow policies of the top management, to ensure the availability of resources & to coordinate all activities, assign duties, etc.

Lower Level

• Consists of Foremen and supervisors etc.

• Main task is ensure that the policies are followed as per directions, maintain discipline among the workers, etc.

Functions of Management:• deciding in advance what to do in future and how to do it.

Planning

• to assign duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan.

Organizing

• finding the right people for the right job.

Staffing

• leading, influencing and motivating employees to perform the tasks assigned to them.

Directing

• monitoring the organizational performance towards the attainment of organizational goals.

Controlling

Coordination?– Coordination is the essence of

management. It is the process of achieving unity of action among interdependent activities and departments of an organization.

Characteristics of Coordination– Coordination integrates group efforts– Coordination ensures unity of action– Coordination is a continuous process– Coordination is an all pervasive function– Coordination is a deliberate function

Coordination is the responsibility of all managers

Importance of Coordination:–Growth in size

–Functional differentiation–Specialization