Ch.2 Ch.2 Nature of Nature of managementmanagement

““Different management experts have Different management experts have described the nature of management described the nature of management differently in their own time.” differently in their own time.”

1.Management and social 1.Management and social responsibilitiesresponsibilities

2.Management:As a profession2.Management:As a profession

3.Management:An art or a science3.Management:An art or a science

SOCIAL RESPONSIBILITYSOCIAL RESPONSIBILITY

Meaning :-Meaning :- Social responsibility of business refers to Social responsibility of business refers to

its obligation towards various parties of its obligation towards various parties of the society.the society.

Definition:-Definition:- Acc to the international seminar,new delhi Acc to the international seminar,new delhi

(1995), “Social responsibility of business (1995), “Social responsibility of business towards customers,workers,shareholders towards customers,workers,shareholders and the community.”and the community.”

Arguments Arguments against social against social responsibilty:-responsibilty:-

1.1. Contrary to the Contrary to the objective of objective of businessbusiness

2.2. Inefficiency in the Inefficiency in the systemsystem

3.3. Effect of business Effect of business valuesvalues

Arguments for Arguments for social social responsibility:-responsibility:-

1.1. Business is a part Business is a part of societyof society

2.2. 2.avoidance of 2.avoidance of govt regulationsgovt regulations

3.3. Long term self Long term self interest of interest of business.business.

Social responsibility of managers Social responsibility of managers towards various parties of the societytowards various parties of the society

1.1. Towards ownersTowards owners:-:- To ensure safety of the capitalTo ensure safety of the capital To ensure proper dividendTo ensure proper dividend To ensure timely payment of dividendTo ensure timely payment of dividend To ensure the proper utilisation of invested To ensure the proper utilisation of invested

capitalcapital To treat equally different types of shareholdersTo treat equally different types of shareholders To inform about the progress of the organisationTo inform about the progress of the organisation To present correct accountsTo present correct accounts

2.Towards employees:-2.Towards employees:- Giving them appropriate remunerationGiving them appropriate remuneration Providing clean work atmosphereProviding clean work atmosphere Respecting individual dignityRespecting individual dignity Giving them a share of profitGiving them a share of profit Giving security of serviceGiving security of service Giving participation in managementGiving participation in management Adopting incentive giving systemAdopting incentive giving system Solving labour problems in timeSolving labour problems in time Providing for their education and trainingProviding for their education and training Providing opportunity for promotion and Providing opportunity for promotion and

development development

3.Towards consumers3.Towards consumers:-:- Make available good quality goods at cheap ratesMake available good quality goods at cheap rates Bring out real advertisementsBring out real advertisements Avoid adulterationAvoid adulteration Provide after- sales serviceProvide after- sales service Make available goods acc to the tastes of the Make available goods acc to the tastes of the

consumers.consumers. Make available goods to the consumers at the Make available goods to the consumers at the

nearest pointsnearest points Be civil and polite to consumersBe civil and polite to consumers Treat customers like godTreat customers like god Solve their problems politelySolve their problems politely Avoid [rofiteering and stock pilingAvoid [rofiteering and stock piling

4.Towards suppliers4.Towards suppliers:-:- Making timely paymentsMaking timely payments Informing about the tastes of Informing about the tastes of

consumersconsumers Giving appropriate price of the Giving appropriate price of the

material suppliedmaterial supplied Informing them of future Informing them of future

development plansdevelopment plans

5.towards government:-5.towards government:- To pay taxes honestlyTo pay taxes honestly To observe rules laid down by the To observe rules laid down by the

governmentgovernment To help the govt by establishing new To help the govt by establishing new

industriesindustries Not to exploit govt machinery by Not to exploit govt machinery by

unfair meansunfair means

6. 6. Towards competitors:-Towards competitors:- To encourage mutual cooperationTo encourage mutual cooperation To prepare clean atmosphere for To prepare clean atmosphere for

competitioncompetition To encourage market researchTo encourage market research To work jointly for the devlp of businessTo work jointly for the devlp of business To discourage artificial transaction to To discourage artificial transaction to

increase pricesincrease prices

7.Towards the world7.Towards the world:-:- To contribute towards international To contribute towards international

peacepeace To observe rules of international To observe rules of international

marketmarket To help in the devlp of economically To help in the devlp of economically

backward countriesbackward countries To do business honestlyTo do business honestly

8.Towards community8.Towards community:-:- To make available opportunities for To make available opportunities for

employmentemployment To avoid polluting the environmentTo avoid polluting the environment To contribute to the raising of the To contribute to the raising of the

standard of livingstandard of living Avoid indecent advertisementsAvoid indecent advertisements To be a partner in social devlp by To be a partner in social devlp by

establishing educational institutions , establishing educational institutions , hospitals,etc.hospitals,etc.

9.Towards self9.Towards self:-:- Earn reputation by efficient running Earn reputation by efficient running

of the businessof the business Earn sufficient profit through proper Earn sufficient profit through proper

meansmeans Enhance own ability through training Enhance own ability through training

and experienceand experience Take interest in research related with Take interest in research related with

businessbusiness Enter new marketsEnter new markets Do business in a just mannerDo business in a just manner

Management- A professionManagement- A profession

Profession refers to that economic Profession refers to that economic activity which is conducted by a activity which is conducted by a person having some special person having some special knowledge and skill which is used knowledge and skill which is used impartially to serve different sections impartially to serve different sections of the society.of the society.

Is management a Is management a profession?profession?

Body of specialisation knowledge and Body of specialisation knowledge and techniquetechnique

Formalised methods of acquiring Formalised methods of acquiring training and experiencetraining and experience

Establishments of representative Establishments of representative professional associationprofessional association

Code of conductCode of conduct Priority of service over economic Priority of service over economic

considerationconsideration

Management an artManagement an art

Acc to G.R terry: “Art is bringing Acc to G.R terry: “Art is bringing about of a desired result through about of a desired result through application of skill.”application of skill.”

Features:-Features:-Personal skillPersonal skillPractical knowledgePractical knowledgeCocrete result oriented approachCocrete result oriented approachDevelopment through practiceDevelopment through practiceCreative processCreative process

Management – a scienceManagement – a science Acc to Ketnes, “Science is a systematised Acc to Ketnes, “Science is a systematised

body of knowledge which which establishes body of knowledge which which establishes relationship between cause and effect.”relationship between cause and effect.”

FeaturesFeatures:-:-Systematised body of knowledgeSystematised body of knowledgeBased on facts,analysis and experiments.Based on facts,analysis and experiments.Universal applicationUniversal applicationCause and effect relationsip.Cause and effect relationsip.Verification of validity and prediction of Verification of validity and prediction of

results possibleresults possible