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UNIT- 1
NATURE AND SIGNIFICANCE OF MANAGEMENT

Q
...

Ans
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It is the joint
efforts of a group of people who use their skills and knowledge in running the
complete system of the organization
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“Management is an art of getting things done through others
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It involves proper utilization of
resources like material, money, machinery, methods, manufacturing and marketing
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According to Taylor, “Management is the art of knowing what you want to do and
then seeing that it is done in the best and cheapest way
...
”
According to Henry Fayol, “To manage is to forecast and to plan, to organize, to coordinate and to control
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Q
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Ans
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Management is goal oriented- Management is concerned with achieving specific
goals and objectives
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2
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Management involves getting things done by, with and through the efforts of group
members
...

3
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Its presence is evident from the
result of its efforts
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Management involves decision making- Decision-making is an important part of
modern management
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5
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Like an art, it requires skills and knowledge in order to be able to
manage an organization
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It is
however not pure science like physics and chemistry
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Management is getting things done through others- A manager plans activities
and goals of the organization and gets them done through subordinates
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Universal Process: Management is applicable in all organizations
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8
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9
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Q3
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: Management as an art
Art is concerned with application of skills and continuous effort for achieving certain
goals
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It is a resultoriented approach
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It is a creative art as it involves
getting things done through others by motivating them and coordinating their
efforts
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In this
sense, management is an art
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Management is systematized body of knowledge
acquired and developed by mankind through observation and experimentation,
capable of verification
...
Also, like science, management
too has universal application
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Thus, management is both art as well as science
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Management principles are applied as per the
requirements of various situations
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Q
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: Management brings together the 5 Ms viz
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It is a result-oriented activity which focuses on achieving the desired
output
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Optimum utilization of resources- The most important objective of management is
to use various resources of the enterprise in the most economic way so as to avoid
wastages
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2
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, management leads a business to growth and development
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It provides a sense of security to the
employers and employees
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Better quality goods- The aim of sound management is to produce better quality
products at minimum cost
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Ensuring regular supply of goods- Another objective of management is to ensure
regular supply of goods to consumers
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5
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Thus, it provides the benefits of latest research and technology to the society
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Minimize risk- Though the exact future cannot be predicted, yet on the basis of
previous experience and existing circumstances, management tries to prepare the
organization for future contingencies, thus minimizing the element of risk
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5: Discuss the significance/importance of management
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: Management plays a vital role in an organization
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Achieving Group Goals: Management helps in the collaboration
and
coordination of individual efforts so as to accomplish individual targets
together with the group goals
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Increases Efficiency: Management improves productivity by managing
resources in a reliable conceivable way in order to decrease cost upscale
potency
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Smooth operation of business: Management ensures smooth operation of
business through sound planning, organization, direction and effective
control
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Adjustment with change: Management ensures adaptation of the organization
and its working in all changing situations
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Achieving personal objectives: Management promotes leadership and
provides motivation to employees to operate effectively in order to
accomplish their personal aims while working together towards the
organizational goals
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Development of Society: Management helps in the enhancement of
community by manufacturing reliable and quality goods, establishing
employment opportunities and developing innovative technologies
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6: Explain the management process
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Ans
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It is a dynamic process
consisting of various elements and activities
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Different experts have classified functions of management
...
e
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According to Henry Fayol, “To manage is to forecast and plan, to organize, to
command, and to control”
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But the most
widely accepted are functions of management given by Koontz and O’ Donnel which
are Planning, Organizing, Staffing, Directing and Controlling
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e
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Each function blends into the other, affecting the performance of
the rest
...

1
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Planning involves determining future
courses of action to achieve desired goals
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It bridges the gap from
where we are and where we want to be”
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Organizing
Organizing is the process of defining and grouping of activities of the entire process
and establishing the authority and responsibility relationship among them
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Organizing as a process involves:
•
Identification of activities
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•
Assignment of duties
...

•
Coordinating authority and responsibility relationships
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Staffing
According to Kootz & O’Donell, staffing is filling and keeping filled, positions in the
organization structure through defining work-force requirements, appraising,
selecting, compensation and training
...
e
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Staffing involves:
•
Manpower Planning
•
Recruitment, Selection and Placement
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•
Remuneration
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•
Promotions and Transfer
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Directing

Direction is called management in action
...
Direction has the following
elements:
•
Supervision
•
Motivation
•
Leadership
•
Communication
5
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The purpose of
controlling is to ensure that everything occurs in conformity with the standards set
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Establishment of standards of performance
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Measurement of actual performance
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Comparison of actual performance with the standards and finding out
deviation, if any
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Taking corrective action
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7: Differentiate between management and administration
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: The major differences between management and administration are given
below:
1
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On the other hand, administration represents the owners of the
organization
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Management is an activity of business, generally at functional level, whereas
administration is a high-level activity
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While management focuses on policy implementation, policy formulation is
performed by the administration
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Functions of administration include legislation and determination
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5
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6
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Administration is the act of administering the whole organization by a
group of people
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Management can be seen in profit making organizations
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8
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9
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Role of administration is
decisive in nature
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Management focuses on managing people and their work
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Theoretically, it can be said that both are different terms, but practically, we find that
the terms are more or less same
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But we can say that administration is above management
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8: Discuss the levels of management
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: Most organizations have three management levels- Top-level management,
Middle-level management and Lower-level management
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The
three levels of management, which are common in every corporation, are discussed
below
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Top-level Management
Top-level Management consists of the decision-makers in an organization
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Sound top-level management basically defines the success and future of a company
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Top-level management is responsible for making plans and strategies for the
business
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ii
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They
assign tasks and set goals for employees
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Top-level management drafts the policy of the company
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They are solely responsible for the survival and growth of the organization as a
whole
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Middle-level Management
Middle-level management consists of the heads of various departments in an
organization
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They manage most of the
executions and micro-management within an organization
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To communicate the policies and the mission set by top-level management and
maintain a healthy work environment
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To micro-manage the tasks performed by every member of the lower-level
management coordinate between teams
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They are responsible for the performance of lower-level executives by
motivating and encouraging them
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Middle-level management handles all the recruitments and allocations within a
team
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Operational/Lower-level Management
Operational level management is responsible for managing the coordination
between the operative workforce and middle-level management
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Operational level management has very few decision making powers and generally
execute orders received from the middle-level management
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Some of the
essential functions of operational level management are –
i
...

ii
...

iii
...

iv
...

v
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These management levels help define authority and responsibilities within an
organization
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Q
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Ans
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Every group effort requires setting objectives,
making plans, handling people, co-coordinating and controlling activities, achieving
goals and evaluating performance directed towards organizational goals
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”

According to C
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W
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External forces affect management
philosophy
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A set of common principles or a general theory of management underlies
all organizations
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W
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The functions and principles of management are universal, but according to the
nature, size and another background of organizations, their application will differ
according
to
circumstances
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10) Explain the meaning and need/importance of Coordination
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It is the integration or
synchronization of activities or action
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Co-ordination is the essence of
management as in order to coordinate the activities of his subordinates, a manager
has to perform all the other functions of management, viz
...

Theo Haimann states that, “Co-ordination is the orderly synchronizing of efforts of
the subordinates to provide the proper amount, timing and quality of execution so
that their efforts lead to the stated objective, namely the common purpose of the
enterprise
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It is a process of
integration of the activities of the members of an organization to accomplish
organizational goals
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(i) The top level managers co-ordinate the activities of the middle level managers
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(iii)The lower level managers co-ordinate the activities of their subordinates
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There is a need for co-ordination
throughout the organization and at all levels
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2) Team spirit: Co-ordination develops team spirit in the organization
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For this purpose, managers need to develop team spirit among their
subordinates
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4) Reduced conflict of interest: Co-ordination blends the interest of all departments
into one common objective thereby reducing conflicts of interest of each
department
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The
performance of one department is the input of another department
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6) Encourage Initiative: Effective co-ordination encourages subordinates to make
use of initiative
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7) Corporate image: Co-ordination develops a better image for the Organization
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There can be better
quality of goods and services
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8) Optimum use of resources: Co-ordination facilitates optimum use of resources
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The resources of the
Organization are put to best possible use by the members of the Organization
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Higher efficiency is a result of high returns and low costs due to optimum
utilizations of resources
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Q
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Ans: Coordination brings unity of action and integrates different activities
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Co-ordination is the
essence of management for the following purposes:
1
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i
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ii
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iii
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iv
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v
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2
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3
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In its absence, there will be chaos
and mismanagement
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Coordination is required at all levels and in all functions of management, thus
making it the essence of management

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