nature and significance of management notes

CHAPTER-1 NATURE AND SIGNIFICANCE OF MANAGEMENT Meaning/concept of management: Management is the process of getting things done with the aim of achieving goals effectively and efficiently. Key terms in the definition of management: Process:Process refers to a series or sequence of steps.Management is a process because it involves a series of functions i.e.Planning,Organising,Staffing,Directing and controlling. Effectiveness:Completing the task within time to achieve the end result. Efficiency:Completing the task in a cost effective manner. Relation b/w Efficiency & Effectiveness: Efficiency and Effectiveness are like the two sides of a coin,one without other is of no use.Only being efficient and completing the task without wastage is not sufficient for achieving the goal unless the task is completed on time or effectively. Features/Characteristics/Nature of management : 1)Goal-oriented: Management aims at achieving the organisational objectives by utilising the physical,financial,and human resources.so it is a goal-oriented process. 2)Pervasive:Management is required in all types of organisations,in all departments and at all levels whether it is big or small,profit or non-profit making service or manufacturing.Hence,it is pervasive. 3)Multi-dimensonal:Management is multi-dimensional and consists of three main activities. i)Management of work ii)Management of people iii)Management of operations 4)Continuous:Management is a never ending process.The ongoing series of functions i.e.Planning,Organising,Staffing,Directing and controlling are continuously performed by the managers all the time. 5)Group-activity:Management functions cannot be performed in isolation.Each individual involved in management performs his/her role at his/her own level.Hence it is agroup activity. 6)Dynamic:Management is highly influenced by the social, economical, technical ,and political environment.It has to change its goals and policies to survive in this competitive world.Hence it is dynamic. 7)Intangible:Management cannot be seen but its presence can be felt by seeing the coordination b/w various departments.So,it is intangible. OBJECTIVES OF MANAGEMENT: 1)Organisational objectives: Survival:- Ensure that the organisation survives and exists in the future. Profitability:- Earning adequate profit in order to survive and grow. Growth:- Growth indicates how well it exploits the potential opportunities. 2)Social objectives: • Producing quality products at reasonable rates, • Generating employment opportunities • Environmental friendly methods of production. 3)Personal objectives: • Meeting the Financial needs like competitive salaries and perks • Social and safety needs of the employee like peer • Providing healthy working conditions • More opportunities for growth and development Importance of management 1. Achieving Group Goals:Management is required for achieving the goals of the organisation. Management directs the efforts of different individuals to achieve the overall objective of the organisation. 2. Creates a Dynamic organization:All organisations have to function in a dynamic environment. Management helps people to adapt themselves to these changes so that the organisation is able to maintain its competitive edge. 3. Achieving Personal objectives: A manager motivates and leads all the members in such a manner that all individuals are able to achieve their personal goals while contributing towards the organisational objective. 4. Increases efficiency: 5. Development of society facilitate changes: