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Management: Introduction, Nature,

Significance and Scope
Definition of Management:

 Follett defined management as: "the art of getting things done through people"
 Lawrence appley “Management is the accomplishment of results through the efforts of other
people”.
 Harold Koontz, "Management is the art of getting things done through others and with
formally organised groups.
 William Glueck, “Management is the effective utilization of human and material resources
to achieve the enterprise objective.”
 F.W. Taylor (father of scientific management)
"Management is an art of knowing what is to be done and seeing that it is done in the best
possible manner." (Planning and controlling)
 Stanley Vance “Management is simply the process of decision-making and control over the
action of human beings for the express purpose of attaining predetermined goals.”
 McFarland "a process, by which managers create, direct, maintain, and operate purposive
organizations through systematic, coordinated, cooperative human effort."
 Weirich and Koontz “Management is the process of designing and maintaining an
environment in which individuals, working together in groups, efficiently and accomplish
selected aims."
Conclusion:
Management of an organization is the process of establishing objectives and goals of the
organization periodically, designing the work system and the organization structure, and
maintaining an environment in which individuals, working together in groups, accomplish
their aims and objectives and goals of the organization effectively and efficiently.

Characteristics or Features of Management

1. Management is goal oriented process:
Management always aims at achieving the organisational objectives. The functions and
activities of manager lead to the achievement of organisational objectives; for example,
if the objective of a company is to sell 1000 computers then manager will plan the course
of action, motivate all the employees and organise all the resources keeping in mind the
main target of selling 1000 computers.
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2. Management is Pervasive:
Management is a universal phenomenon. The use of management is not restricted to
business firms only it is applicable in profit-making, non-profit-making, business or non-
business organisations; even a hospital, school, club and house has to be managed
properly. Concept of management is used in the whole world whether it is USA, UK or
India.
3. Management is Multidimensional:
Management does not mean one single activity but it includes three main activities:
i. Management of work
ii. Management of people
iii. Management of operations
(a) Management of work:
All organisations are set up to perform some task or goal. Management
activities aim at achieving goals or tasks to be accomplished. The task or work
depends upon the nature of Business for example, work to be accomplished in
a school is providing education, in hospital is to treat patient, in industry to
manufacture some product. Management makes sure that work is accomplished
effectively and efficiently.
(b) Management of people:
People refer to Human resources and Human resources are the most important
assets of an organisation. An organisation can win over competitor with
efficient employees only because two organisations can have same physical,
technological and financial resources but not human resources. Management
has to get task accomplished through people only.
Managing people has two dimensions:
(i) Taking care of employee’s individual needs
(ii) Taking care of group of people
(c) Management of operations:
Operations refer to activities of production cycle such as buying inputs,
converting them into semi-finished goods, finished goods.
Management of operations concentrates on mixing management of work with
management of people, i.e., deciding what work has to be done, how it has to
be done and who will do it.

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4. Management is a continuous process:
Management is a continuous or never ending function. All the functions of management
are performed continuously, for example planning, organising, staffing, directing and
controlling are performed by all the managers all the time. Sometimes, they are doing
planning, then staffing or organising etc. Managers perform ongoing series of functions
continuously in the organisation.
5. Management is a group activity:
Management always refers to a group of people involved in managerial activities. The
management functions cannot be performed in isolation. Each individual performs
his/her role at his/her status and department, and then only management function can
be executed. Even the result of management affects every individual and every
department of the organisation so it always refers to a group effort and not the individual
effort of one person.
6. Management is a dynamic function:
Management has to make changes in goal, objectives and other activities according to
changes taking place in the environment. The external environment such as social,
economical, technical and political environment has great influence over the
management.
As changes take place in these environments, same are implemented in organisation to
survive in the competitive world.
7. Intangible:
Management function cannot be physically seen but its presence can be felt. The
presence of management can be felt by seeing the orderliness and coordination in the
working environment. It is easier to feel the presence of mismanagement as it leads to
chaos and confusion in the organisation.
For example, if the inventory of finished products is increasing day by day it clearly
indicates mismanagement of marketing and sales.
8. Composite process:
Management consists of series of functions which must be performed in a proper
sequence. These functions are not independent of each other. They are inter-dependent
on each other. As the main functions of management are planning, organising, staffing,
directing and controlling; organising cannot be done without doing planning, similarly,
directing function cannot be executed without staffing and planning and it is difficult to
control the activities of employees without knowing the plan. All the functions inter-
dependent on each other that is why management is considered as a composite process
of all these functions.
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9. Balancing effectiveness and efficiency:
Effectiveness means achieving targets and objectives on time. Efficiency refers to
optimum or best utilisation of resources. Managements always try to balance both and
get the work done successfully. Only effectiveness and only efficiency is not enough for
an organisation: a balance must be created in both.
For example, if the target of an employee is to produce 100 units in one month time and
achieving the target by wasting resources and mishandling the machinery, will not be in
the interest of organisation. On the other hand, if the employee spends lot of time in
handling the machine carefully and managing the resources carefully and fails to
complete the target on time, it will also not be in the interest of organisation. Manager
sees to it that this target is achieved on time-and with optimum use of resources.

Objectives of Management
In any organization there are different objectives and management has to achieve all
objectives in an effective and efficient manner. These objectives of management can be
classified into three categories:
1. Organizational objectives
2. Social objectives
3. Personal objectives
(i) Organisational Objectives
Management is responsible for setting and achieving objectives for the
organisation. The main objective of any organization should be to utilise human
and material resources to the maximum possible advantage, i.e., to fulfil the
economic objectives of a business.
(a) Survival: The basic objective of any business is survival. In order to survive, an
organization must earn enough revenues to cover costs.
(b) Profit: Management has to ensure that the organization makes a profit. Profit
provides a vital incentive for the continued successful operation of the enterprise.
(c) Growth: To remain in the industry, management must exploit fully the growth
potential of the organization. There are many indicators of growth such as sales
volume, increase in the employee count, the number of products or the increase in
capital investment.
(ii) Social Objectives
As a part of society, every organisation whether it is business or non-business, has
a social obligation to fulfil which is to consistently create economic value for
various constituents of society. This includes:
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 Environmental friendly methods of production.
 Giving employment opportunities to the disadvantaged sections of society.
 Providing basic amenities like schools and crèches to employees.
(iii) Personal Objectives
Organization consists of different types of individual who joins it to satisfy their
diverse needs. The individual may seek to satisfy needs such as:
 Competitive salaries and perks
 Peer recognition
 Personal growth and development

Importance and Significance of Management:

1. Management helps in Achieving Group Goals

Organisation consists of number of persons who work as a group. Management helps in
achieving group goals by giving a common direction to the individual effort. For example,
an employee’s objective is to earn maximum wages whereas the organisational objective
is to maximize output. Employees can achieve their objectives by maximizing output
which helps in the achievement of organisational goal too. This is what management
strives to achieve.
2. Management Increases Efficiency:
The main aim of every manager in any organisation is to minimise the cost and to increase
the output through effective planning, organising, directing, staffing, controlling etc.
Efficiency increases when we use fewer resources (i.e. inputs) and achieve more benefit
or output. In any organisation, input resources are men, money, material and machinery.
Management uses these inputs efficiently by properly allocating them to reduce the
wastage which ultimately decreases cost and thus leads to higher profits.
3. Management Creates a Dynamic Organisation:
The environment in which an organisation works is subject to continuous changes and the
people working in the organisation resist change because they don’t want to move from
a familiar and secure environment to a new environment. An organisation must change
itself and its goal according the needs and aspirations of the environment. Management
helps to adapt to these changes in order to be successful. For example, to survive in the
Indian market, Mc Donald, a leader in fast foods, has made major changes in its menu.

4. Management helps in Achieving Personal Objectives:

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Management not only helps in achieving the organisational objectives but also the
personal objectives of the employees. With the help of self-motivation and leadership
techniques, management helps individuals to develop spirit of cooperation, commitment
and team spirit etc. that help them to achieve their personal goals as well.
5. Management helps in the Development of the Society:
An organisation has many obligations towards different groups that constitute it. The
process of fulfilling all the objectives must help in growth and development of the
organisation as well as society.
For example, providing better quality goods and services, generating employment
opportunities, increasing the wealth of the nation, providing fair wages to the workers
etc. Effective management helps the organisation in fulfilling all these obligations.

Management: Nature
Management as a Multidisciplinary or Science, Arts and Profession:
Management as a Multidisciplinary
Management has to get the work done through people. It has to manage people. This
is a very difficult job because different people have different emotions, feelings,
aspirations, etc. Similarly, the same person may have different emotions at different
times. So, management is a very complex job. Therefore, management uses
knowledge from many different subjects such as Economics, Information Technology,
Psychology, Sociology, etc. Therefore, it is multidisciplinary in nature.
Management as a Science:
Science can be defined as a systematic and organised body of knowledge based on
logically observed findings, facts and events. Science comprises of exact principles which
can be verified and it can establish cause and effect relations.
Main characteristics/features of science are:
1. Systematic body of knowledge: In science organised and systematic study material
is available which is used to acquire the knowledge of science. Like science in
management also there is availability of systematic and organised study material. So first
feature of science is present in management.
2. Scientific principles are derived on the basis of logical and scientific
observations: The scientists perform logical observation before deriving any principle or
theory. They are very objective while doing the observations. But when managers are
observing they have to observe human beings and observation of human being cannot be
purely logical and objective. Some kind of subjectivity enters in the observations so this

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feature of science is not present in management. All the scientific principles have same
effect, wherever we try them whereas effect of management principles varies from one
situation to other.
3. Principles are based on repeated experiments:
Before developing scientific principles scientists test these principles under different
conditions and places. Similarly, managers also test and experiment managerial principles
under different conditions in different organisations. So this feature of science is present
in management.
Management is not a science
1. Universal Validity: Scientific principles have universal application and validity.
Management principles are not exact like scientific principles so their application and use
is not universal. They have to be modified according to the given situation. So this feature
of science is not present in management.
2. Replication is possible:
In science replication is possible as when two scientists are undertaking the same
investigation working independently and treating the same data under the same
conditions may desire or obtain the identical or exactly same result.
But in management managers have to conduct research or experiments on human beings.
So if’ two managers are investigating same data, on different sets of human beings they
will not get identical or same result because human beings never respond in exactly
identical manner. So this feature of science is also not present in management.
Management as an Art:
Art can be defined as systematic body of knowledge which requires skill, creativity and
practice to get perfection. The main features of art are:
1. Systematic body of knowledge/Existence of theoretical knowledge:
In every art there is systematic and organized study material available to acquire
theoretical knowledge of the art. For example, various books on different ragas are
available in music. In management also there is systematic and organised body of
knowledge available which can help in acquiring managerial studies. So this feature
of art is present in management also.
2. Personalised application:
In the field of art only theoretical knowledge is not enough. Every artist must have
personal skill and creativity to apply that knowledge. For example, all musicians learn
same ragas but they apply these ragas according to their personal skill and creativity
which makes them different.

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In management also all managers learn same management theories and principles.
But their efficiency depends on how well they use these principles under different
situations by applying personal skills and creativity so this feature of art is also present
in management.
3. Based on Practice and creativity:
The artist requires regular practice of art to become more fine and perfect. Without
practice artists lose their perfection. Art requires creative practice, i.e., artist must
add his creativity to the theoretical knowledge he has learned. Same way with
experience managers also improves their managerial skills and efficiency. So this
feature of art is also present in management
Management as a Profession:
Profession can be defined as an occupation backed by specialised knowledge and
training, in which entry is restricted. The main features of profession are:
1. Well defined Body of knowledge
2. Restricted Entry
3. Presence of professional associations
4. Existence of ethical codes
5. Service Motive
Managements Scope:
The following activities are covered under the scope of management:
(i) Planning
Planning means deciding in advance on what, how, and when something is to
be done. It involves projecting the future course of action for the business as
a whole and also for the different sections within it. Planning is thus, the
preparatory step for actions and helps in bridging the gap between the present
and the future.
(ii) Organization
Organizing is the next function of management. Organizing involves break-ing
a plan into activities, grouping those activities, and allocating resources to
them. This is done by structuring the functions and duties to be performed by
a group of people for the purpose of attaining the objective of the enterprise.
Functions and activities of the enterprise depend upon the objectives to be
accomplished and are directed towards fulfilment of such objectives. This
necessitates the establishment of activity-authority relationships in the
enter-prise.
(iii) Staffing

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Organization, as a function of management, helps the executives to establish
positions and lay down their functional relations to each other. However, it is
through staffing function that different positions in the organizational
structure are manned. The staffing process, therefore, provides the
organization with adequate, competent, and qualified personnel at all levels.
(iv) Directing
Mere planning, organizing, and staffing are not sufficient to set the tasks in
motion. Management has well-coordinated plans, properly established duty-
authority relations, and able personnel, yet it is through the function of
direction that the manager is able to make the employees accomplish their
tasks by making them integrate their individual efforts with the interest and
objectives of the enterprise.
It calls for properly motivating, communicating with, and leading the
subordinates. Motivation induces and inspires the employees to perform
better, while through good leadership, a manager is able to make his
subordinates work with zeal and confidence.
(v) Controlling
While directing, the manager explains to his subordinates the work expected
of each of them and also helps them perform their respective jobs to the best
of their abilities so that the enterprise objectives can be achieved. But even
then, there is no guarantees that work will always proceed according to plan.
It is this possibility of actions deviating from plans that calls for constant
monitoring of actual performance so that appropriate steps may be taken to
make them conform to plans. Thus, the controlling task of management
involves compelling the events to conform to plans.
The important steps to be initiated in this direction are as follows:
1. Measurement of accomplishments against pre-determined standards and
recording of deviations
2. Analysing and probing the reasons for such deviations
3. Fixing of responsibility in terms of persons responsible for negative
deviations
4. Correction of employee performance so that group goals are achieved
through effective implementation of plans devised to attain them.
(vi) Co-ordinating
Coordination deals with harmonizing work relations and efforts at all levels for
achieving some common purpose. It may be described as unifying and achieving

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harmony among individual efforts for the purpose of accomplishing group
goals. The whole idea of coordination is to adjust, reconcile, and synchronize
individual efforts so that group efforts become more effective and help to
achieve some common objectives.
The operational aspects of business management, called the branches of
management, are as follows:
(i) Production Management
(ii) Marketing Management
(iii) Financial Management
(iv) Personnel Management
(v) Office Management

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ACRONYMS 

NATURE AND SIGNIFICANCE OF MANAGEMENT FEATURES OF MANAGEMENT

“My Charming Dad Is Giving Grand Party (MCD PI𝑮𝟐 )”

1. Multi-Dimensional
2. Continuous
3. Dynamic
4. Intangible
5. Group Activity
6. Group Goals”
7. Pervasive
IMPORTANCE OF MANAGEMENT
“GDP depends upon Efficient Society”
1. Achieving Group Goals
2. Dynamic Organisation
3. Achieving Personal Objectives
4. Increases efficiency
5. Helps in Development of Society

MANAGEMENT AS AN ART
“CAT”
1. Based on practice and Creativity
2. Personalised Application
3. Existence of Theoretical knowledge
MANAGEMENT AS SCIENCE
“USP”
1. Universal validity
2. Systematic Body of knowledge
3. Principles based on Experimentation
http://dalalvandana1978.blogspot.com/2018/02/acronyms-to-remember-business-studies.html

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