What is Management?
Management is a set of principles relating to the functions of planning, organising, directing and controlling, and applying these principles in harnessing physical, financial, human and informational resources efficiently and effectively to achieve organisational goals.
Or you can say, Management is a process of getting things done through others. this process is identified in a set of principles performed by managers to accomplish the goals.
In this article, you will learn the nature, functions, and importance of management.
Definition of Management
Some definitions of management are as follows:
“Management is defined as the process by which a co-operative group directs action towards common goals”.Joseph Massie
“Management is a distinct process consisting of planning, organising, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources”.George R Terry
“Management is that function of an enterprise which concerns itself with the direction and control of the various activities to attain the business objectives”.William Spriegel
Nature of Management
The following are the characteristics/nature of management which are discussed below:
- Management is a Universal Process
- Management is a Factor of Production
- Management is Goal-oriented
- Management is Supreme in Thought and Action
- Management is a Group Activity
- Management is a Dynamic Function
- Management is a Social Science
- Management is an Important Organ of Society
- Management as a Process
Management is a Universal Process
The basic nature of management activity remains the same in all areas, whether the organization to be managed is a family, a club, a trade union, a trust, a municipality, a business concern or the government. Slight variations in approach and style may be there from organization to organization, but the management activity is basically the same everywhere.
Management is a Factor of Production
Management is regarded as a factor of production. Just as land, labour and capital have to be brought together and put to effective use for the production and distribution of goods and services, similarly managerial skills have also to be acquired and effectively used for the purpose.
Management is Goal-oriented
The most important goal of all management activity is to accomplish the objectives of an enterprise. These objectives may be economic, socio-economic, social and human and thereby management at different levels seeks to achieve these in different ways.
Management is Supreme in Thought and Action
Determination of the objectives of the enterprise tests the collective wisdom and sense of imagination of its management. The objectives should be neither too high-sounding nor difficult to achieve, nor too low-pitched to rob the workers of their sense of achievement. But, the mere setting of objectives will be of no avail, if there is no vigorous action to achieve them.
Management is a Group Activity
An enterprise will not be able to achieve its objectives if only one or a few individuals or departments are efficient and the rest are inefficient. The calibre of each individual and each department needs to be efficient in order to make a project successful.
Management is a Dynamic Function
Management is a dynamic function of a collective enterprise, which is constantly engaged in casting and recasting the enterprise in the world of an ever-changing business environment. Not only this, but it sometimes also initiates moves that reform and alter the business environment.
Management is a Social Science
Management means getting the tasks done by different people with different qualities. This involves dealing with individuals each one of whom has a different level of sensitivity, understanding and dynamism.
In fact, no definite principles or rules can be laid down with respect to human behaviour. These principles change from individual to individual and from situation to situation.
Management is an Important Organ of Society
Management shares a direct relationship with society. While society influences managerial actions, managerial actions also influence society. Through their decisions, management of large undertakings influences the economic, social, political, religious, moral and institutional behaviour of the members of society.
Management as a Process
Management is an activity consisting of a distinct process, which is known as the management process. This process is primarily concerned with the important task of goal achievement.
No business enterprise can achieve its objectives until and unless all the members of the unit make an integrated and planned effort under the directions of a central coordination agency.
Functions of Management
There are basically five primary functions of management. These are as follows:
Planning is future-oriented and determines an organization’s direction. It is a rational and systematic way of making decisions today that will affect the future of the company.
It is a kind of organized foresight as well as corrective hindsight. It involves predicting the future as well as attempting to control the events. It involves the ability to foresee the effects of current actions in the long run in future.
Example: Business planning, project planning, strategic planning (vision, mission), communications plans, research design planning, etc.
Organizing requires a formal structure of authority and the direction and flow of such authority through which work sub-divisions are defined, arranged and coordinated so that each part relates to the other part in a united and coherent manner so as to attain the prescribed objectives.
Thus, the function of organizing involves determining the activities that need to be done in order to reach the company goals, assigning these activities to the proper personnel and delegating the necessary authority to carry out these activities in a coordinated and cohesive manner. It follows, therefore, that the function of organizing is concerned with:
- Identifying the tasks that must be performed and grouping them whenever necessary
- Assigning these tasks to the personnel while defining their authority and responsibility
- Delegating the authority to these employees
- Establishing a relationship between authority and responsibility
- Coordinating these activities.
Staffing is the function of hiring and retaining a suitable workforce for the enterprise both at managerial as well as non-managerial levels. It involves the process of recruiting, training, developing, compensating and evaluating employees and maintaining this workforce with proper incentives and motivations.
Since the human element is the most vital factor in the process of management, it is important to recruit the right personnel.
The directing function is concerned with leadership, communication, motivation and supervision so that the employees perform their activities in the most efficient manner possible, in order to achieve the desired goals.
The leadership element involves issuing instructions and guiding the subordinates about procedures and methods. The communication must be open both ways so that the information can be passed on to the subordinates and the feedback received from them.
The controlling function consists of those activities that are undertaken to ensure that the events do not deviate from the prearranged plans. The activities consist of establishing standards for work performance, measuring performance and comparing it to these set standards and taking corrective actions as and when needed, to correct any deviations.
Importance of Management
The importance of management is discussed below:
- Management Provides Stability
- Management Provides Innovation
- Management Provides Coordination
- To Tackle Business Problems
- A Tool for Personality Development
- Effective Utilization of the Seven Ms
- Development of Resources
Management Provides Stability
In modern society, management provides stability by changing and modifying the resources in accordance with the changing environment of the society.
Management Provides Innovation
Management provides new ideas, imaginations and visions to the organization and necessary life for better and greater performance.
Management Provides Coordination
Management coordinates the activities of the different departments in an enterprise and establishes team spirit amongst the personnel.
To Tackle Business Problems
Good management serves as a friend, philosopher and guide in tackling business problems. It provides a tool for doing a task in the best possible manner.
A Tool for Personality Development
Management is necessary not only for productivity but also for improvement in the efficiency of mankind. Management helps improve the personality of people and therefore attempts to raise their efficiency and productivity.
Effective Utilization of the Seven Ms
There are seven Ms in business: men, materials, money, machines, methods, markets and management. Management stands at the top of all these Ms It determines and controls all other factors of the business.
Development of Resources
Good management procures good business by creating a vital dynamic and life-giving force in the organization.
What is management?
Management is a set of principles relating to the functions of planning, organising, directing and controlling, and applying these principles in harnessing physical, financial, human and informational resources efficiently and effectively to achieve organisational goals. In this unit, you will define the nature, functions, and importance of management.
What are the functions of management?
There are basically five primary functions of management. These are as follows:
All these five functions of management are closely interrelated. However, these functions are highly indistinguishable and virtually unrecognizable in a job. It is necessary, though, to put each function separately into focus and deal with it.
What is the nature of management?
Nature of management:
1. Management is a Universal Process
2. Management is a Factor of Production
3. Management is Goal-oriented
4. Management is Supreme in Thought and Action
5. Management is a Group Activity
6. Management is a Dynamic Function
7. Management is a Social Science