CONCEPT,NATURE AND IMPORTANCE I OF
MANAGEMENT
By Rekha Prasad
• Every individual works in the organized group to achieve what he can’t achieve individually
• Management is an essential part of any group activity. Group can be:-
– Family – Play group– Work group– School– Business firm– A government
• Management is universal process• Wherever there is human activity, there is
management
“Management”
Management is looked at from the following angles
• As a Noun
• As a Process
• As a Discipline
Management as a Noun
Management refers to all those persons who are concerned with getting the things done through others.
Ex.---persons of supervisory responsibilities,
MD, GM, Board of Directors
HUMAN RELATIONSHIP CONCEPT
Management as a Process
Management refers to all that manager does.
Ex.---Planning, Organizing , Staffing, Directing, Controlling
FUNCTIONAL CONCEPT
Management as a Discipline
Management refers to a body of knowledge, a practice and a discipline.
Management refers to the principles and practices of management as a subject of study
Definition of Management
Functional ConceptTo manage is to forecast and plan, to
organize, to command, to coordinate and to control
----Henry Fayol
Human Relation Concept
Management is the art of directing and inspiring people ---- Mooney & Railey
Management is the art of getting things done through & with people in
formally organized groups. Its an art of creating an environment in
which people can perform and individuals could co-operate towards
attaining of group goals ---- Herold Koontz
Nature/Characteristics of Management
• Goal- oriented—(economic & social objective)
• Continuous process
• Coordinative Force
• Intangible Force
• Part of Group Effort
• Accomplishes Results through the Cooperation of Others
• Balances Effectiveness & Effeciency
• Dynamic Discipline
• Science as well as an Art
• Universal in character
• Needed at all levels of Organization
Purpose/Objectives of Management• Optimum utilization of resources
• Minimizing the element of risk
• Improving performance
• Planning for the future.
• Growth and Development of business
• Better quality goods
• Ensuring regular supply of goods
• Discipline and Morale
• Mobilizing the best talent
• Research and Development
Importance of Management
1. Accomplishment of goals
2. Optimum utilization of resources
3. Sound Organisation
4. Providing Vision & Foresight
5. Harmony in work
6. Helping the Employees in Achieving Personal Objectives
7. Development of Society & Nation
8. Increased profit
Scope of Management
• Planning• Organizing• Staffing• Directing • Controlling• Reporting• Budgeting
• Financial Management
• Personnel Management
• Production management
• Purchase Management
• Material Management
• Office Management
Branches of Management
A Science or an Art ? The debate whether management is
a science or an art is complicated. Management depicts characteristics of both.
Management as a Science
Science is a systematized body of knowledge pertaining to a particular field of enquiry.
i. Systematized body of knowledge
ii.Scientific Observation
iii.Experimentation
iv.Verifiable Principles
v.Universal Application
Mgt as Science
• Systematized body of knowledge that uses scientific methods of observation
• Principles are evolved on the basis of continued observation
• Principles are exact & universal application without any limitation
• Cause & effect relationship• Validity can be verified and they prove a reliable basis of
predicting future events
It is systematized body of knowledge acquired by mankind
through observation and experimentation and which is
capable of verification
LIMITATION OF MANAGEMENT AS A SCIENCE OR
MANAGEMENT AS AN INEXACT OR SOCIAL SCIENCE
• Management principles are not fundamental truths & not supported by research (not a exact science).
• It is difficult to establish cause & effect relationship• Application of management principles depend upon
situations & factors.• Management deals with people at work & it is very difficult
to predict their behavior accurately.• Principles of management do not have a universal
application (soft science or behavioral science)• Management lacks certainty of results
Management as an Art
Art signifies the application of Knowledge & personal skills to bring about desired results
i. Body of Knowledge
ii. Personalised Application of Knowledge & Skills
iii. Practice
iv. Creativity
Mgt as an ArtIt is systematic application of skill or knowledge in effecting
accomplishment of results.
It represents the methods or ways of doing specific thing and
indicates how an objective is to be achieved.
Every art is practical and is concerned with creation of
something.• Personal skill
• Practical knowledge
• Regular practice
• creativity
MANAGEMENT IS AN ART
AS WELL AS
SCIENCE
Management as a Proffesion
i. Specialised field of Knowledge
ii. Restricted entry based on Education & Training
iii. Representative or Professional association
iv. Ethical Code of Conduct for self regulation.
v. Social Responsibility
vi. Professional fee.
Mgt & Admin
Three Views
• Administration is part of management
• Administration comes first, management follows it
• Management and administration are same
1. Management2. Administration
Management = Administration
1. Administration2. Management
Recommended