Unit 1: Nature of Management

Concept of Management:

Management is the activity of directing leading to achieve the predetermined

goals. In other sense, the word management is combination of three word that
is manage-men-t (tactfully) which means to manage human resources tactfully
for mobilization of other physical resources to meet goal.

According to Robbins "management is the process of getting things done by

other things with the aim of achieving goal effectively and efficiently.”

In conclusion, management is the process of PODSLC. PODSLC means

planning, organizing, staffing, directing, leading and controlling respectively. It
is an art of getting things done through people for the achievement of goals.
Principle of management have been universally applied. It is essential for
organizational effectiveness. Good management achieved the organizational
objectives with the best use of all kind of resources.

Level of management:

The level of management are as follows:

Shareholder

Top Level Management Middle Level Management Lower Level Management

Board of Directors Department Manager Supervision

Chief Executive Officer Division Head Foreman

General Manager Section Head Clerk

Managing Director Head of Departments

Branch Manager

1. Top level of management: Top level management consists of board for

director (BOD). Chief executive officer (CEO), general manager and
managing director. Top level management is the supreme body of an
organization they are responsible in formulating long term plans, policies,
mission, vision, goals, etc. of an organisation.

Important function of top level management:

Important function of top level management are as follows:

i. To determine the goals of an organization

ii. to make plan and policies to attain a goal.

iii. to set up an organization structure to conduct the operation is for plan

iv. To provide overall direction in the organization

v. Investing in research and development

2. Middle level of management: Middle level of management consists of head

of department, branch manager, division head, section head etc. Middle level
management are primarily responsible to implement the policies and plan
developed by the top level management. Middle level management are
essential to bridge the upper and lower level of organization.

Important function of middle level management:

The important function of middle level management are as follows:

i. To interpret the policies found by the top level management

ii. To recruit and select suitable operative supervisory staff.

iii. To assign duties and responsibilities for first line officer.

iv. To motivate personal (staff) to attend a productivity and reward them

properly

3. Lower level of management: Lower level management consists of foreman,

supervisors, sales officer, marketing officer, etc. lower level management is
also known as fast line management and operating level management. It is
directly concerned with the direction and control of the performance of the
operative non-managerial employees.

Important function of lower level management:

The important function of lower level management are as follows:

i. Instruction and guidance to the operating employees and workers.

ii. Preparation of short term plan.

iii. Assignment of duties: it assigns job, duties and responsibilities to the non-
managerial employees.

iv. To arrange the necessary tools and equipment, materials etc. for the
workers.

v. To solve the problems of workers

vi. To inform the unsolved problems of workers to the management.

Feature of Management:

The feature of management are as follows:

1. Process: management is a process. the function short is planning,

organizing, directing, staffing, leading and controlling are included in the
process which proper coordination of resources by means of managerial
function.

2. Group Activity: management is based on group activities. The significance

of management is the group participation both note industrialization. a group
can easily and effectively attain the goals of organization rather than an
individual.

3. Purposeful: every management activity is purposeful. Management it helps

in or contributes greatly for efficient and effective use of different resources to
achieve the goal. The main objective of management is to maximize the
productivity through minimum sources.

4. Both science and art: management is both science and art. It is science
because it is based on same basic principle of universal application. it is also
in because the result of an organization depends upon the personal skills,
efficiency and experience of manager and his subordinates.

5. Profession: management is also profession because it has the feature of

profession like specific knowledge, formal education, service motive, ethical
codes etc. So, in today's world measurement is Taken as a profession.

6. Universal: management is universal in nature. It is necessary and practice

in almost all types of organization. Management institute query or essential
where there is human activity. It means that wherever there is a human
activity, there is management. The principle of management is universally
applicable.

7. Dynamic: management is a continuous and dynamic activity. Principle of

management and not rigid. The principles are flexible as for the need and
requirement of time and organization. The system of management of today
may not be suitable or applicable tomorrow. So, management modifies its
style and system is for time and situation which saves the organization to
adjust itself in changing environment of business.

8. Social Process: management is a social process because it consists of

getting things done through others. This involves dealing with people. the
effort of human beings has to be directed, coordinated and regulated by
management. Moreover, management has a social obligation to make
optimum use of limited resources for the benefit of community as a whole.

9. Multi-disciplinary: Management draws knowledge and concept from other

discipline such as economics, psychology, sociology, statistics, operation,
research etc. management integrates ideas and concepts taken from other
discipline and use them in managing the organization.

Function of management:

The functions of management are:

1. Planning: planning is an important function of management. It involves

selecting courses of action from a set of alternatives. Planning decides
advance as to: what is to be done? And how it is to be done? When it is to be
done? Where it is to be done? You will do it and how results are to be
evaluated? decision making is the part of planning process that involves
development of alternatives, evaluation of alternatives and selecting the best
alternatives

2. Organizing: it is another important function of management. Organizing

involves: determining the activities, the activities to be done, grouping the
activities, assigning the group of activities to individuals and creating structure
of authority and responsibility among the people to achieve of the enterprises.
It is a tool for achieving organizational objectives and mechanisms for propose
full action for implementation of policies and programs.
3. Staffing: staffing is also an important function of management. The staffing
function involves recruitment, selections, socialization, training and
development etc. It is Human resource management function in an
organization. It ensures qualified efficient, experienced and skilled staff.

4. Direction: direction is the act of ordering subordinates by exercising power

for organizational performance. It is required all level of management.
Direction maintains good human relation and is motivates staff.

5. Leading: leading is also important function of management. it influences the

group towards the attainment of goals. Leadership is also considered as
personal quality of an individual who organizes the effort, capabilities and
talents of the followers and directs towards the attainment of organizational
goals. leading involves:

i. Issue, order and instruction.

ii. guiding, training, motivating supervision and communicating

iii. Coordination and influencing.

6. Controlling: define all basic function of management is controlling. It is the

process of maintaining the organization's progress towards its goals. The
controlling function involves: evaluating actual performance, comparing actual
performance to standard and taking corrective action if necessary. It increases
productivity and reduce cost of production.

Management: science, art and profession

Is Management as an art, a science or a profession?

Management as an art: Art is an application of knowledge and skills to get

desired results. Management is also taken as an art; a creative art is it
requires. Acknowledge of innovating and integrating skills in relation to good
resources etc. Management also satisfied basic features of an art. An artist as
to apply his theoretical knowledge into practice to get the desired result. In the
same way the management also applies the theoretical knowledge in practice.
So, it is an art as well. the main element of art and involvement of those
elements in management are as follows:

a. Practical knowledge
b. Personal ability

c. Result oriented

d. Regular practice

e. Creativity

f. Situational

g. Personal judgement.

Management as a science: Science is a systematic body of knowledge with

observation and experiment. Its principles are: universal established, cause
and effect relationship between variables. In the same way, management also
satisfies the features of science which contains systematic body of
knowledge. In the form of general principles which can be applied in all placed
through the world. The principles of management are also based on
experiments and observations. Likewise, it also establishes cause and effect
relationship between variables. So, management is a science. it studies about
human behavior but it is not natural science like physics and chemistry.
Essential features are as follows:

a. Systematic knowledge

b. Based on observation and experimentation

c. Cause and effect relationship

d. Universal validity of principles.

Management is a profession: Profession is an occupation. for a profession

there must be in academic and professional qualification presented by law. A
professional manager is one who specializes in the work of planning,
organizing, leading and controlling the effort through systematic use of
knowledge. The example of profession are occupation of lawyer ,doctor,
accountant, etc. The essential features of profession most helpful in things:

a. Specialized knowledge

b. Formal education and training

c. Social responsibility
d. Representative body.

Management also features these means and features. Therefore, it can also
be taken as a profession.

Q. Difference between Administration and Management:

Basis of
Administration Management
differences

Nature It is mental or thinking It is an executive function

Level It is top level management It is operational or executive level of ma

Work Determination of objectives and policies Implementation of planning and policie

Used mainly in government, education and social Used mainly in business organization w
Use
institution economic motives

Generally personnel or employees are in

Involvement Generally owners are involved in administration
management.

Skill and ability It needs administrative ability. It needs technical and managerial ability

American school of thought believes that British school of thoughts believes that
Belief
management is a part of administration part of management

Determination of objective of formulation of Management function includes planning

Function
function staffing, directing, leading and controlli

Important questions

1. Define management. Explain the features of management.

2. Give the differences between administration and management.
3. Discuss management as an art , a science or profession.
4. What are the function of management?
5. Describe the level of organization of management.