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UNIT-1
NATURE AND SCOPE OF MANAGEMENT
Meaning of Management: -
Management is an art or a process or a tool which include a number of functions like planning,
organizing, staffing, directing and controlling which is very much essential for achieving the
business goal effectively and efficiently.

Definition of Management: - As per Traditional Approach

1. “Management is the art of getting things done through others.”
2. “Management is the art of getting things done through and with the help of people
formally organized group.”

As per Modern approach: -

1. “Management is the art of knowing exactly what you want your men to do and seeing that
they do it in the best and cheapest way”.
2. “Management is the co-ordination of all the resources through the process of planning,
organizing, staffing, directing and controlling in order to attain the stated objectives”.

What is effectiveness?
Effectiveness means a situation when the goals are achieves with in a stipulated time with a
given resources.

What is Efficiency?
Efficiency means a situation where the resources of the organizations i.e. men, material,
machine and money are utilized properly.

CHARACTERISTIC OF MANAGEMENT: -
Following are the important characteristics of management.
1. Management is goal-oriented process.
The aim of management is to achieve the organizational goal. The manager of the
organization use various process or functions to reach the organizational goal.
2. Management is pervasive
Management is universal in nature. It is not restricted to business firm only. It is
applicable to business or non-business, profitable or non-profitable, school, universities,
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hospital, club etc. The concept of management is used in the whole world whether it is
India, U.K., and U.S.A.

3. Management is a continuous process

Management is a continuous or never-ending process. All the functions of the
management are performed continuously in the organization. The functions of
management such as planning, organizing, staffing, directing and controlling are
performed by all the manager all the time.
4. Management is a group activity
Management refers to a group of persons involved in the managerial activities. Different
employees of the organization are assigned different task to perform for achieving the
organizational goal. The combine efforts of group activity help to achieve the business
goal smoothly.
5. Management is a Dynamic function/process
Management must change as per the requirements of the environment, both internal as
well as external. Due to change in environment the goal, objectives, policy and other
activities may change. The external factor such as social, economical, political and
technical has great influence on the management.
6. Management is intangible in nature
Management is intangible in nature because it cannot be seen and touch but we can feel
it. If the managerial activities are performed as per the plan, it is a symbol of good
management. On the other hand, if the managerial functions are not performed as per the
plan, it may be a mismanagement and lack of co-ordination.
7. Management is a composite process
Management is a composite process because it includes numbers of functions. The
managerial functions are performed one after another; hence management is a composite
process. The managerial function such as organizing, staffing, directing and controlling
are performed after planning.
8. Management is a multi-dimensional
Management is not restricted to single activities. It includes:
a. Management of work
b. Management of people
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c. Management of operation
Management has to plan various activities to achieve its goal. Human resources are
very much essential and its management must be performed achieve goals. The
operation must be performed as per the given plan. so, management is a
multidimensional.

9. Balancing, effective and efficiency:

Effectiveness and efficiency of the organization must be balanced to achieve the
organizational goal and it is possible with the better management. Effectiveness means
achieving the target on time and efficiency refers to optimum utilization of resources.

IMPORTANCE OF MANAGEMNT: -
Following are the importance of management:
1. Management helps to achieving business goals: Management helps individual in the
organization to achieve the business goal by providing proper direction. All the resources
of the organization i.e., men, material, machine and money are utilized properly for
achieving the business goals.
2. Management improves efficiency: Management always used its resources in the best
and cheapest way to reduce the cost and minimize the wastage. The proper use of the
resources improves the efficiency of the business and helps to achieve the goal.
3. Management creates dynamic organization: The organization is operates in the
changing business environment. Management always adjusted as per the requirement of
the organization. Employees of the organization do not like any changes in the
organization. Management convinced employees that change is not only beneficial for the
organization but will also benefit them.
4. Management helps in achieving individual’s objective: Management helps in
combining the personal goals of the employees with that of organizational goals. The
individual and organization goal are generally in the same direction and management
adjust all the managerial activities to achieve the goal smoothly. If the individual
objectives of the organization are satisfied, the organizational objectives will
automatically achieve.
5. Management helpful in the development of society: Management is multidimensional
in nature. They always give importance to society, consumer, employees and owner etc.
Management provides quality goods at reasonable price to the society. The increased
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productivity helps in financial incentives (benefit) to employees and increased gross

domestic product (GDP) and helps in the growth of the nation.
6. Management brings harmony in work: The employees of the organization come from
different part of society, with different social background and life style. If every employee
works in his own way, then there will be a chaos in the organization. Management of the
organization guides the employees properly and arranged their activities in such way that
there may create harmony in work. The harmony always creates good working
environment in the organization.

OBJECTIVES OF MANAGEMENT: -
Objective means goals towards the achievement of every organization. An objective is used as a
yardstick for the measurement of efficiency of the organization.
The objectives of management have been classified into three categories i.e.
1. Organisational Objectives
2. Social Objectives
3. Individual Objectives
1. Organisational Objectives: The main objective of organization is growth and
development. It is generally said that the profit maximization is the only objective of a
business but it is not correct. Every management aims to achieve various objectives
which help in reducing cost, increasing efficiency and generate profit for the organization.
Following are the important organizational objectives
a. Survival: Each and every organization aims to survive in the competitive market.
It always tries to reduce cost and earn reasonable profit for survival.
b. Growth: Every organization tries to grow and expand its activities. The growth
may be measured by the increase in volume of sales, number of branches, increase
in number of employees, increase in profit etc.
c. Profitability: Profit is the reward for a businessman. Profit is essential for an
organization for its survival, growth and expansion.
2. Social Objectives: Social objective means commitment of a business towards the society.
A business use resources of the society and earn profit from it. It is the duty of the
business to contribute for the welfare of the society.
The main social objectives are
1. Supply of quality goods at a reasonable price.
2. Generation of economic wealth.
3. Creating employment opportunities for people.
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4. Financial support to community.

5. Contribution towards civil amenities.
6. Organizational educational, health and vocational training programmers for
people.
7. Using environmental friendly methods of production.
8. Participating in social welfare activities of the government and NGO’s.

3. INDIVIDUAL OBJECTIEVE: Individual objectives are related to employees of the

organization. Employees are the valuable resources of the organization. The employees of
the organization are motivated to perform their task to maximize of the organization.
The main objectives of employees are:
a. Competitive salaries
b. Personal development such as promotion, incentives, training etc.
c. Personal recognition.
d. Social recognition.
e. Better and healthy working condition.

NATURE OF MANAGEMNT: - Is management is a science:-

Management will be a science, if it satisfied the following features: 1.
Systematic body of knowledge
2. Continuous observation.
3. Principle based on repeated experiments
4. Universal validity 5. Replication is possible.
Conclusion: Management cannot be treated as a perfect science, but as its principles are
subject to change with time, situation and human nature, it is better to call it applied
science or inexact science.

Is Management is an art:-
Before find out management is an art we must know the meaning of art.
Art means a systematic application of skill on knowledge in fulfilling the desired task.
Art requires systematic body of knowledge which requires skill, creativity and practice to
get perfection.
Management is an art because of the following reason:
a. It has a systematic body of knowledge.
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b. If it uses personalized application of knowledge.

c. If it is based on practice and creativity.

Is management is a profession: -
A profession is defined as an occupation acquired by specialized knowledge and training
and entry regulated by a representative body.
Management may be profession, if it satisfied the following characteristics.
a. If it has a well defined body of knowledge.
b. If it has a professional association.
c. It must have a restricted entry.
d. It must have code of conduct.
e. It must have service motive.
LEVEL OF MANGEMENT
The term level of management refers to a line of separation between various managerial
positions in an organization. In an organization authority and responsibility are transferred from
top to bottom for achieving the organizational goal smoothly.
The level of management can be classified into three categories:
a. Top level/Administrative level management
b. Middle level/ Executory level
c. Lower level/ Supervisory level/ Operational level management

TOP LEVEL MANAGEMENT

Top level of management consist of
1. Board of director (BOD)
2. Chairman
3. President
4. Vice-president
5. Chief executive officer (CEO)
6. Chief-financial controller (CFC)
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Function of top-level management: - Following are the function of top-level management

1. Determining the objective of the organizations: - The top-level management
determines the long term and short-term objectives of the organizations.
2. Framing plans and policies: - Top level management prepares various plans and policies
to achieve the pre-determined objective in the organization.
3. Assigning jobs to middle level managements: - Top level managements assigning
various duties to the employees of the middle level management to achieve the
organization goal.
4. Arranging resources for the enterprises: - Top level management arrange various
resources that is men, material, machine and money for the enterprise to achiever the
predetermine goals smoothly or easily. It is very much essential to perform the activity as
per the plan.
5. Responsible for welfare and survival of organization: - The top-level management is
responsible for the growth and survival of the organization the plan and policies are
prepared for the welfare and survival of the organization.
6. Providing overall leadership: -Top level management provides overall leadership to the
organization. It provides directions to the employee of the all over management for
achieving the organizational goal.

MIDDLE LEVEL MANAGEMENT The middle level management consists of a.

Production manager b. Purchase manager c. Sales manager d. Marketing manager e.
Plant head f. Departmental head Function of middle level management: -
Following are the function of middle level management.
1. Interpretation of policies of top management: - The plans and policies are prepared at
top level management. Middle level management interprets these policies and prepared
guideline for the lower-level management.
2. Organizing activities of the departments: - Middle level management prepares various
activities for different department and arranges resources to carry out the activities.
3. Selecting employees for the department: - Middle level management organizes the
activities for various department and select suitable person to run their department.
4. Motivating employees: - The manager of middle level managements motivates the
employees to perform their activities in the best possible way.
5. Instructing and controlling employees: - Middle level management gives instruction to
employees for performing their works properly and controls their performance.
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6. Co-operating with other department: - Middle level management helps to co-operate

other department for smooth running of organization.
7. Implementing policies: - Middle level management implements the policies frames by
the top-level managements.

LOWER-LEVEL MANAGEMENT Lower-level management consist of

a. Supervisor
b. Foreman
c. Superintendent
d. Section officer
e. Clerical staff
Lower-level management is the lowest level in the step of level of management. The quality and
quantity of output depends upon the efficiency of this level of management.
Function of lower-level management: -
Following are the function of lower-level management.
1. Addressing problems and grievances of employees: - Supervisory staff comes in direct
contract with the employees. The grievances and problems of employees are discussed
with them and are passed to the middle level management for redressal.
2. Maintaining good working conditions: - Lower-level management required to provide
good and healthy working conditions at factory level. It motivates the employees to
improve their performance.
3. Assisting in requirement and selection of employees: - Lower-level management
assists the middle level management in requirement and selection of the employees for
the firm on business.
4. Getting feedback from employees: - The employees of the firm gives feedback to the
lower level management about the various issues related to their work the employees are
encouraged to give suggestions to them supervisions and they are rewarded for good
suggestion.
5. Maintaining standard quality of goods: - Lower-level management maintains standard
quality of goods to survive in the market.
6. Minimizing wastage of materials: -Lower-level management ensures that wastage of
material is minimized.
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7. Motivating workers: -Lower-level management always motivates the workers of the

firm to improve their performance by developing team spirit.