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BHASIN CLASSES 9453121933

NATURE AND SINGFICANCE OF MANAGEMENT



Que. Define the term Management.
Ans. Management is used to mean the group of persons who manage the
organisation. It is needed every time and in every activity. It is not only
confined to business organisations but also in organisations such as
government, religious, charitable bodies etc.-
Traditional definition:
According to the traditional view Management is getting things done
through others. This is incomplete as it treats the employees as mere
means to achieve the goals of the organisation. Needs and demands of the
employees of the organisation are overlooked.
Modern definition:
According to the modern view Management is creating the internal
environment of an organization where employees working together in
groups can perform efficiently towards the achievement of the goals. On
this basis Management is goal oriented and involves creating an internal
atmosphere so that group goals can be achieved.

Que. A successful enterprise has to achieve its goals effectively and
efficiently. Explain.
Ans. Management has been defined as a process of getting things done
with the aim of achieving goals effectively and efficiently
Being effective or doing work effectively basically means finishing the given
task. Effectiveness in management is concerned with doing the right task,
completing activities and achieving goals. In other words, it is concerned
with the end result.
But it is not enough to just complete the tasks. Completing task efficiently
is also important. Efficiency means doing the task correctly and with
minimum cost. There is a kind of cost-benefit analysis involved and the
relationship between inputs and outputs. If by using less resources more
benefits are derived then efficiency has increased. Efficiency is also
increased when for the same benefit or outputs, fewer resources are used
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and less costs are incurred. Management is concerned with the efficient
use of the available resources, because they reduce costs and ultimately
lead to higher profits.
For management, it is important to be both effective and efficient.
Effectiveness and efficiency are two sides of the same coin.
Usually high efficiency is associated with high effectiveness which is the
aim of all managers. But undue emphasis on high efficiency without being
effective is also not desirable.

Que. Explain the characteristics/features of Management.
Ans. Key characteristics of management are given below: -
(i) Management is a goal-oriented process: An organisation has a set of
basic goals which are the basic reason for its existence. These should be
simple and clearly stated. Different organisations have different goals.
Commonly managerial success is measured by the extent to which the
objectives are achieved
(ii) Management is all pervasive: Management is relevant for all types of
organization whether economic, social or political. A petrol pump needs to
be managed as much as a hospital or a school. What managers do in India,
the USA, Germany or Japan is the same.
(iii) Management is multidimen-sional: Management is a complex activity
that has three main dimensions. These are:
(a) Management of work: All organisations exist for the performance of
some work. In a factory, a product is manufactured, in a garment store a
customers need is satisfied and in a hospital a patient is treated.
Management translates this work in terms of goals to be achieved and
assigns the means to achieve it.
(b) Management of people: Human resources are an organisations
greatest asset. Managing people has two dimensions (i) it implies dealing
with employees as individuals with diverse needs and behavior; (ii) it also
means dealing with individuals as a group of people. The task of
management is to make people work towards achieving the organisations
goals, by making their strengths effective and their weaknesses irrelevant.
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(c) Management of operations: Every organisation has some basic product
or service to provide in order to survive. This requires a production process
which has the flow of input material and the technology for transfor-ming
this input into the desired output for consumption. This is interlinked with
both the management of work and the management of people.

(iv) Management is a continuous process: The process of management is a
series of continuous, composite, but separate functions (planning,
organising, directing, staffing and controlling). These functions are
simultaneously performed by all managers all the time.
(v) Management is a group activity: An organisation is a collection of
diverse individuals with different needs. Every member of the group has a
different purpose for joining the organization. Management implies group
of persons working in association for the achievement of common
objectives. The result of group efforts affects all the person of the group.
(vi) Management is a dynamic function: Management is a dynamic function
and has to adapt itself to the changing environment. An organisation
interacts with its external environment which consists of various social,
economic and political factors. In order to be successful, an organisation
must change itself and its goals according to the needs of the environment.

(vii) Management is an intangible force: - Management cannot be seen.
One may not see with the naked eye the functioning of management, but
its presence can be felt through orderliness, enthusiastic employees, and
adequate work output. Quite often, the identity of management is brought
in focus by its absence or by the presence of its direct opposite,
mismanagement.
Que. What are the objectives of the Management?
Ans. Management Objectives can be classified into three major categories:
Organisational, Social and Individual. A brief description about each
objective is given below.
(i) Organisational Objectives: Management should be basically concerned
with utilizing human and material resources available to an enterprise for
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deriving best results. This leads to reduction in costs and maximum
prosperity for the organization by generating high profits. Organisational
objectives must take care of the interests of all the stakeholders in a fair
and just manner. The main organizational objectives are survival, profit
and growth.
Survival: The basic objectives of any business is survival. In order to
survive, an organisation must earn enough revenues to cover costs.
Profit: Mere survival is not enough for business. Management has to
ensure that the organisation makes a profit. Profit provides a vital incentive
for the continued successful operation of the enterprise.
Growth: A business needs to add to its prospects in the long run, for this it
is important for the business to grow. An organization can grow and
expand only if it moves in the predetermined direction. An effective
management helps in achieving the objectives but also proves the way for
growth and expansion
(ii) Social objectives: - Social objectives deal with the commitment of an
organization toward society. Such objectives may be pertaining to health,
safety, labour practices, and price regulation. Further, they include
activities intended to further social and physical improvement of the
community and to contribute to desirable civic activities. It should be noted
that most business houses in achieving their primary goals also contribute
to their respective communities by creating needed economic wealth,
employment and financial support to the community.
(iii) Personal objectives:- Individual objectives are pertinent to the
employees of the organization. Each employee joins an organization to
satisfy his needs by working in the firm. These objectives might include
competitive salary, personal growth and development, peer recognition and
societal recognition. In the absence of satisfaction of personal objectives,
employees may lose interest in the work and the performance of the
organizational objectives may suffer.

Que. What is the importance of Management in modern business?
Ans. Management is very much needed for the survival of the business.
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Without proper management resources will remain resources and shall
never become production. Management is important for the following
reasons
1. Helps in achieving group goals: Management is a group activity. It co-
ordinates the efforts of organizational members so as to achieve the
predetermined objectives of the organization.
2. Management increases efficiency: The aim of a manager is to reduce
costs and increase productivity through better planning, organising,
directing, staffing and controlling the activities of the organisation.
3. Management creates a dynamic organisation: All organisations have to
function in an environment which is constantly changing. It is generally
seen that individuals in an organisation resist change. Management helps
people adapt to these changes so that the organisation is able to maintain
its competitive edge.
4. Management helps in achieving personal objectives: A manager
motivates and leads his team in such a manner that individual members
are able to achieve personal goals while contributing to the overall
organisational objective.
5. Management helps in the development of society: An organisation has
multiple objectives to serve the purpose of the different groups that
constitute it. It helps to provide good quality products and services, creates
employment opportunities, adopts new technology for the greater good of
the people and leads the path towards growth and development.

Que. Management is both a science and an art. Explain.
Ans. Some authors describe management as an art because management
relates to practical application knowledge and skill as per the needs of a
given situation. On the other hand there are authors who regard
management as science because management represents a body of well-
tested principles, which can be universally applied. Management as a
Science and Management as an art are discussed below
Management as a science: -
Science is a systematized body of knowledge pertaining to a specific field
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of study and contains general facts that explain a phenomenon. It
establishes the cause and effect relationship between two or more factors
and have certain principles governing the relationship. These principles are
developed through the scientific methods of observation of events and
verification through testing. The principles are absolute facts having
universal application. As such science is characterized by for main features.

(i) Existence of systematized body of knowledge.
(ii) Use of scientific methods of observation.
(iii) Principle based on experiments.
(iv) Universal validity of principles.

On examination we find that while management has some of these
features and it does not have others. For instance management is
systematized body knowledge. Also principles of management are arrived
on the observation and repeated experimentation in various types of
organizations. But the methods of observation followed by management
are not cent percent objective because the subjects are human being
whose behaviour cannot be predicted. The Management principles are
flexible and can be used in different situations with modification. So these
principles do not have universal applicability. Thus management may be
called an inexact science as is the case with other social sciences.

Management as an art

Art is concerned with the application of knowledge and skills. Desired
results are achieved through the application of skill. Thus an art has the
following characteristics. :

(1) It signifies practical knowledge.
(2) It signifies personal skills in particular fields of human activity.
(3) It helps in achieving desired/ predetermined results.
(4) It is creative in nature.
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Management is also an art since it involves application of knowledge and
personal skills to achieve desired results. Every manager has to apply
certain knowledge and skills while dealing with the people to achieve the
desired results. As an art management calls for a combination of abilities,
skills and judgment and a continuous practice of management concepts
and principles.

Management: Both science and an art

Management is combination of an organized body of knowledge and skilful
application of this knowledge. Effective performance of various
management functions necessarily needs an adequate basis of knowledge
and a scientific approach. Thus, management is both a science and an art;.
It is a science because it uses certain principles. It is an art because it
requires continuous practice and personal skills.

From the above discussion it is clear that management is both a science
and an art.

Que. Management is a profession. Explain.
Ans. A profession means an occupation for which specialized skills are
required. In a profession entry is restricted by examination or education.
But these skills are not meant for self-satisfaction but are used for the
large interests of the society. A profession has the following characteristics:
1. Well defined body of knowledge.
2. Restricted entry.
3. Professional association.
4. Ethical Code of conduct.
5. Service Motive
Management can be referred as a profession if it fulfills the above
mentioned features:-
1. Well defined body of knowledge: Every profession has a specialized body
BHASIN CLASSES 9453121933

of knowledge relevant to the area of specialization and it can be imported
through formal methods of instructions or education. Management fulfills
these criteria. The principle and theories of management have been
developed for the existing and potential managers.
2. Restricted entry: Entry in a profession is subject to qualifying prescribed
exams and acquired practice through training and apprenticeship. However
there are no restrictions on a person to become a manager anyone can
become a manager irrespective of ducation. Therefore this criterion is not
fulfilled by the management.
3. Professional association: For every profession a representative
association is there to lay down the code of conduct and membership rules.
Management also has association such as All India Management
Association, National Institution of Personnel Management etc. However
the membership to these associations is not essential for the managers
therefore this criterion is partly fulfilled by the management.
4. Ethical Code of conduct: Members of a profession have to abide by code
of conduct which contains rules and regulations relating to the profession
any member violating the code can be punished and the membership can
be cancelled. The All India Management Association has also framed code
of conduct for the managers but there is no legal backing for this code.
Therefore management does not fulfill this criterion.
5. Service motive: The basic motive of a profession is to serve their clients
interests by rendering dedicated and committed service. The basic purpose
of management is to help the organisation achieve its stated goal. This
may be profit maximisation for a business enterprise. However, profit
maximisation is not the sole objective of the management.. Therefore, if an
organisation has a good management team that is efficient and effective it
automatically serves society by providing good quality products at
reasonable prices.

Conclusion: On the basis of above discussion we find that management
fulfills some of the features of profession. Therefore it can be regarded as
profession. But not full fledged professions like legal or medical profession.
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But the recent trends show that it is moving in that direction.

Que. Explain different levels of management?
Ans. A series of managerial position from top to bottom is called levels of
management. Level of management determines the amount of authority
and status enjoyed by any manager. The levels of management can be
classified into three parts.
(i) Top level Management
(ii) Middle level management
(iii) Supervisory level or operating management

TOP MANAGEMENT
Top management consists of managers at the highest level in the
management chain of command. This includes Board of Directors, Chief
executive and the departmental heads.

Functions of top level Management / Activities Performed by top level
Management
(i) Establishing overall long term goals and ways of attaining them.
(ii) Maintaining liaison with the outside world
(iii) Laying down overall policies
(iv) Providing direction and leadership to the organization as a whole.

MIDDLE MANAGEMENT
Middle level management consist of departmental managers, branch
managers like purchase managers, production managers, personnel
manager, finance manager marketing manager etc.

Function of the middle level management / Activities performed by the
middle level management.

(i) To link the top and supervisory levels of management.
(ii) To transmit orders decisions and instructions down ward.
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(iii) To carry the problems & suggestions upward.
(iv) To inspire lower level managers towards better performance.
(v) To co-ordinate various units and divisions

SUPERVISORY OR OPERATIONAL MANAGEMENT
Supervisory / operative / lower management consist of first line
supervisors. They generally have such designations as superintendent,
section officer, foreman etc. Following are the important functions of lower
management.
(i) Planning day today activities.
(ii) Arranging machinery & tools etc.
(iii) Arraigning jobs and tasks to subordinate
(iv) Supervision of the work of labour.
(v) Reporting the problems faced and suggestions made by workers to the
middle level management.

Que. What are different functions of management?
Ans. Following are the functions of Management
(1) Planning: - It is deciding in advance what to do, how to do when to do
and who is to do. It bridges the gap between where we are to and where
we want to go. It makes it possible for things to occur which would
otherwise not happen. Planning is needed for all functions and at all level
of management though its extent varies with the delegated authority or
position.
(2) Organising: - It refers to the process of bringing together physical
financial & human resources & establishing productive relations among
them for the achievement of predetermined goals. It is concerned with
building a structure of various inter-related parts. The main aim of
Organising is to enable the people to relate to each other to work together
for a common purpose.
(3) Staffing: - The staffing may be defined as the managerial function of
hiring and developing the required personnel to fill in various positions in
the organization. This function involves determination of the size and
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categories of required personnel. It is also concerned with employing the
right people and developing their skills thorough training. The staffing
function focuses on improving the competence and performance of the
employees in the organization.
(4) Directing: - It is the function of managements concerned with
instructing, guiding, supervising, motivating & leading the subordinates to
contribute to the best of their of their abilities for the achievement of
organizational objectives. It is a continuous function of the management.
(5) Controlling: -Controlling is the process of verifying actual performance
is in conformity with planned performance & taking corrective action where
necessary. It provides that performance of work is in accordance with the
organizational plans policies & programmes. It enables managers to detect
deviations in performance if any rectify them and to prevent their repetition
in future.

Que. Define coordination.
Ans. Co-ordination as a function of management refers to the task of
integrating the activities of separate units of on organization to accomplish
the goals efficiently. The purpose of coordination is to ensure that the
goals of units and subunits are pursued in harmony with each other
keeping in view the goals of the organization as a whole.

Que. Co- ordination is the essence of management.
Ans. The work given to different departments units and individual must be
coordinated by all managers at various levels as a regular function. Without
proper co-ordination there is likely to be duplications or over lapping and
even chaos in the organization co-ordination in required in performing
every function of management as follows.
(a) In planning co-ordination is required
(i) Between objectives and available resources and
(ii) Among different functional managers.
(b) In organizing co-ordination is required.
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(i) Between resources of an organization and activities to be performed.
(ii) Among authority responsibility and accountability.
(c) In staffing co-ordination is required
(i) Between skills of workers and jobs assigned to them.
(ii) Between training and technology of production.
(d) In directing co-ordination is required
(i) Among orders, instructions, guidelines, suggestions etc.
(ii) Between superior and subordinates
(iii) Between efficiency and motivation
(e) In controlling co-ordination is required
(i) Between standards fixed and actual performances
(ii)Between correction of deviation and achievement of objectives.

It is clear from the above discussion that Co-ordination is regarded as the
essence of management rather than separate function of management.


Que. Explain the nature of coordination.
Ans. Coordination is the process of achieving unity of action among
independent activities. This would be better achieved if the nature of
coordination is understood clearly as discussed below: -
Nature of Coordination
The definitions given above highlight the following features of coordination:
(i) Coordination integrates group efforts: Coordination integrates unrelated
or diverse interests into purposeful work activity. It gives a common
objective to group effort to ensure that performance is done as per
planning.
(ii) Coordination ensures unity of action: The purpose of coordination is to
secure unity of action in the achievement of a common purpose. It acts as
the binding force between departments and ensures that all action is aimed
at achieving the goals of the organization.
(iii) Coordination is a continuous process: It is not a one time process but a
continuous process. It starts with the establishment of business and runs
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up to its closure. Maintaining coordination among various activities of
business is the essential task of managers. This should happen
continuously
(iv) Coordination is an all pervasive function: Coordination is required at all
levels of management due to the interdependent nature of activities of
various departments. It integrates the efforts of different departments and
different levels.
(v) Coordination is the responsibility of all managers: Coordination is the
function of every manager in the organisation. Top level managers need to
coordinate with their subordinates to ensure that the overall policies for the
organisation are duly carried out. Middle level management coordinates
with both the top level and first line managers. Operational level
management
(vi) Coordination is a deliberate function: A manager has to coordinate the
efforts of different people in a deliberate manner. Even where members of
a department willingly cooperate and work, coordination gives a direction
to that willing spirit. Cooperation in the absence of coordination may lead
to wasted effort and coordination without cooperation may lead to
dissatisfaction among employees.