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CHAPTER

NATURE AND SCOPE OF
MANAGEMENT
Learning Objectives

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Definition of Management
Concepts of Management
Role and Importance of
Management
Distinction between
Management and Administration

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Levels of Management
Nature of Management
Professionalisation of
Management
Skills of Management
Scope of Management

very human being has several needs and desires
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Therefore, people work together to meet
their mutual needs which they cannot fulfil individually
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It is
by working and living together in organised groups and institutions
that people satisfy their economic and social needs
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, family, school, government, army, a
business firm, a cricket team and the like
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The
task of getting results through others by coordinating their efforts is
known as management
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Management—Principles and Practices

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Different scholars from different disciplines view and interpret
management from their own angles
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The
bureaucrats look upon it as a system of authority to achieve business
goals
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The definitions by some of the leading management thinkers and
practitioners are given below:
(i) Management consists in guiding human and physical resources
into dynamic, hard-hitting organisation unit that attains its
objectives to the satisfaction of those served and with a high
degree of morale and sense of attainment on the part of those
rendering the service
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Appley
(ii) Management is the coordination of all resources through the
process of planning, organising, directing and controlling in
order to attain stated objectives
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Sisk
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—James L
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—American Society of Mechanical Engineers
(v) Management is the creation and maintenance of an internal
environment in an enterprise where individuals, working in
groups, can perform efficiently and effectively towards the
attainment of group goals
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—F
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Taylor
(vii) To manage is to forecast and to plan, to organise to command,
to coordinate and to control
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—Ralph C
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—E
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—George R
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—American Management Association
(xii) Management is a multipurpose organ that manageduction it will create job for thousands of people
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Senior managers also enjoy a high standard of living in
society
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Nature and Characteristics of Management
The salient features which highlight the nature of management are as
follows:
(i) Management is goal-oriented: Management is not an end in itself
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Management has no
justification to exist without goals
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The basic goal of management is to ensure efficiency and economy in the utilisation of
human, physical and financial resources
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Thus, management is purposefull
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Management—Principles and Practices

(iii)

(iv)

(v)

(vi)

(vii)

(viii)

Wherever two or more persons are engaged in working for a
common goal, management is necessary
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g
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Thus, management is a
pervasive activity
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Managers at all
levels perform the same basic functions
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Management reconciles the individual goals with organisational
goals
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It integrates human and
other resources
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It is a social process because it is
concerned with interpersonal relations
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According to Appley, “Management is the development of people not the direction of things
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It is the pervasiveness of
human element which gives management its special character
as a social process”
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Therefore, it
depends upon wide knowledge derived from several disciplines
like engineering, sociology, psychology, economics, anthropology, etc
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Management is a continuous Process: Management is a dynamic
and an on-going process
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Management is Intangible: Management is an unseen or invisible
force
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However, the managers who perform the
functions of management are very much tangible and visible
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Management is also a discipline
involving specialised training and an ethical code arising out of
its social obligations
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It
involves both the determination and the accomplishment of organisational goals
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(i) Organisational objectives: Management is expected to work for the
achievement of the objectives of the particular organisation in
which it exists
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(c) Growth and expansion of the enterprise
(d) Improving the goodwill or reputation of the enterprise
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These objectives are as follows:
(a) Fair remuneration for work performed
(b) Reasonable working conditions
(c) Opportunities for training and development
(d) Participation in management and prosperity of the enterprise
(e) Reasonable security of service
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It is expected to fulfil the objectives of the society which are given below:
(a) Quality of goods and services at fair price to consumers
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(c) Conservation of environment and natural resources
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(e) Preservation of ethical values of the society
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3 ROLE AND IMPORTANCE OF MANAGEMENT
Management is indispensable for the successful functioning of
every organisation
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No business runs in itself, even on momentum
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According to Peter Drucker,“ management is a dynamic lifegiving
element in an organisation, without it the resources of production
remain mere resources and never become production”
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Each
person may be working efficiently, but the group as a whole
cannot realise its objectives unless there is mutual cooperation

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Management—Principles and Practices

(ii)

(iii)

(iv)

(v)

(vi)

and coordination among the members of the group
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He
reconciles the objectives of the group with those of its members
so that each one of them is motivated to make his best contribution towards the accomplishment of group goals
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Optimum utilisation of resources: Managers forecast the need for
materials, machinery, money and manpower
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They create and maintain an
environment conducive to highest productivity
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They provide training and guidance to
employeers so that they can make the best use of the available
resources
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Management directs day-to-day operations in such a manner that all
wastage and extravagance are avoided
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Survival and growth: Modern business operates in a rapidly
changing environment
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Management keeps
in touch with the existing business environment and draws its
predictions about the trends in future
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Changes in business environment create risks as well as opportunities
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In this way, managers facilitate the
continuity and prosperity of business
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People
earn their livelihood by working in these organisations
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In this way
managers help to satisfy the economic and social needs of the
employees
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Management is the most crucial
factor in economic and social development
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Capital investment and import of technical knowhow cannot lead to economic growth unless wealth producing
resources are managed efficiently
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That is why management is regarded as a key to the
economic growth of a country
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4 DISTINCTION BETWEEN MANAGEMENT
AND ADMINISTRATION
There has been a controversy on the use of these two terms-management and administration
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Several
American writers consider them as two distinct functions
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But Schuze and Sheldon found
distinction between these two concepts
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Oliver Sheldon in his “The Philosophy of Management” defines
‘Administration as a function is concerned with the determination of
the corporate policy, the coordination of finance, production and distribution, the settlement of the compass (i
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, structure) of the organisation, under the ultimate control of the executive
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Thus Sheldon declares administration as a thinking process and management as doing process
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The following
figure depicts this line of thinking

Fig
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Administration and Management

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Breach considers management as a social process entailing the responsibility for effective planning, regulation, coordination and control of
operations including the responsibility for personnel supervision
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Few authors treat administration as part of management
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(i) Administration is different from management: According to this view
point, administration is a higher level activity while management is a lower level function
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This view is held largely by American experts on management
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According to them, administration is superior to management
as the latter has only a peripheral role in determination of objectives and policies
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This viewpoint has been
propounded by Breach

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