Nature and significance of

management
Mona Ghai

Meaning of management
Management is the process of
designing and maintaining an
environment in which individuals,
working together in groups,
efficiently and effectively achieve the
goals.
Process- involves series of interrelated functions.
Efficient- maximum output with
minimum resources. Correct task

Characteristics of
management
1. Management is goal oriented- Simple and clearly stated.
2. Pervasive-Universal concept- economic, social and political
organization- business or non- business, big or small.
3. Multidimensional
1. Mgmt. of work-what is to be done
2. Mgmt of people- who is to do it
3. Mgmt of operations- how to do it

4. Continuous process
5. Group activity- helps people to realize their individual as
well as organizational goals through group efforts
6. Dynamic function
7. Invisible presence is felt

Objectives of management
(objectives- ends towards which all activities of an
organization are directed)
Organizational- needed to achieve the economic goals.
Survival
Profit
Growth

Social
Personal or individual
Financial needs- salaries and perks
Social peer recognition
Higher levels- personal growth and development
Good and healthy working conditions

Importance of management
1. Management helps in achieving
group goals
2. It increases efficiency
3. Creates a dynamic organization
4. Helps in achieving personal
objectives
5. Helps in development of society

Nature of management
1. Management as science- systematic body of knowledge,
acquired through observation and experimentation, that
explains certain truths or the operation of general laws
which are universally accepted.
2. Management as an art- skillful and personal application
of systematic knowledge to bring desired results. Its
based on creativity and practice
3. Management as a profession
1.
2.
3.
4.
5.

Well defined body of knowledge- IIMs

Restricted entry- *CA institute
Professional association- *AIMA
Ethical code of conduct-* doctor
Service motive-* lawyers

Levels of management
1. Top- top level managers are responsible for welfare and survival of the
organization. Its stressful and complex job that demands long hours and
commitment
1. To integrate diverse elements and coordinate the activities according to the
overall objectives of the organization
2. To analyze the business environment and its implications for the survival of
the firm
3. To formulate the overall organizational goals and strategies for their
achievements
4. To arrange resources of men, machines, materials and money to achieve the
desired goals.
2. Middle-link between top and lower level, usually known as divisional heads,
managers or superintendents. Responsible for implementing and controlling plans
and strategies framed. They are responsible for all the activities of first line
managers.
1. To interpret the policies framed by top mgmt
2. Ensure that the dept has necessary personnel
3. Assign necessary duties and responsibilities to personnel
4. Motivate them to achieve desired objectives.
5. Cooperate with other depts for smooth functioning of the organization

Levels of management
cont..
3. Lower/ operational/ supervisory- authority and
responsibility is limited according to the plans
drawn by top mgmt.
1. To oversee the efforts of workforce
2. To interact with actual workforce and pass on
instructions of middle mgmt to workers
3. To ensure that the quality of output (loyalty,
hardwork and discipline of workers) is maintained ,
wastage of materials is minimized and safety
standards are maintained
4. To represent workers grievances
5. To ensure proper working conditions to workers

Functions of management
Planning- bridges the gap between where we are
and where we want to go
Organizing- assigning duties, grouping tasks,
establishing authority and allocating resources.
Staffing- right person at the right job
Directing- process of supervising, motivating,
leading and communicating with subordinates to
achieve organizational goals
Controlling establishing standards, measuring
current performance, comparing and taking
corrective measures.

Management functions at different

levels
Managerial
level
TOP

Plannin
g
Organiz
ing

MIDDLE

Staffing
Directin
g

LOWER

Managerial functions

Controlli
ng

Coordination
Process by which the manager
synchronizes the activities of
different departments towards the
achievement of common goal.
Essence of management
Is needed in all management functions
Is needed at all levels

Features of coordination
1.
2.
3.
4.
5.
6.

Integrates group efforts

Ensures unity of action
Continuous process
Universal
Responsibility of all managers
Is deliberate function

Importance of coordination
1. Growth in size
2. Functional differentiation
3. Specialization