Nature and Significance of Management

  1. Multidimensional:
  1. Management of work:Management translates the work in terms of goals to be achieved and assigns the means to achieve it.(by planning and organizing)
  2. Management of people:  make people work towards achieving the organization’s goals, by making their strengths effective and weakness irrelevant. (by staffing, directing, controlling)
  3. Management of operationsprovides a process that involves the flow of input material and transforming this input into the preferred output for consumption. (purchase, production, sales, finance, advertisement)
  1. Continuous process:
    • The management process is a series of continuous but separate functions (planning, organizing, directing, staffing and controlling which are together performed by all managers all the time.
  2. Group activity:
    • Inorganizationdifferent individuals have different needs.
    • Higher salary, promotion, learning
    • A common goal can be met through teamwork and coordination
  3. Dynamic function:
  • Adapt itself to the changing environment which is consists of various social, economic and political factors.
  • In order to be successful, an organization must change itself and its goals according to the needs of the environment.
  1. Goal-oriented process:
    • The different organizations have different goals
    • School to provide quality education, mobile company to increase the customer base
    • efforts of different individuals in the organization towards achieving these goals
  2.  Intangible force:
  • It does not have a physical shape that can be seen and touched,
  • Its presence can be felt when organization achieve goals, targets are met according to plans and employees are happy and satisfied.
  1. All pervasive:
    • Management is common to all organizations whether economic, social or political.
    • This difference is due to the differences in culture, tradition and history

Importance of Management

  1. Group goals:
    • Management gives a common direction to the individual departments (like finance, production, purchase) for achieving the overall goal of the organization.
    • It unites physical (material-machine-money) resources and human resources in one direction of profit –survival and growth.
  2. Useful in a dynamic organization:
  • All organizations have to function in an environment that is constantly changing(SLEPT)
  •  Management helps people adapt to these changes to survive and grow and able to maintain its competitive edge
  1. Increases efficiency:
    •  Managers try to reduce costs and increase productivity through better planning, organizing, directing, staffing and controlling the activities of the organization.
    • As a result per unit cost of production is reduced.
  2. Development of society:
    • Helps to provide good quality products and services, creates employment opportunities, adopts new technology for the benefit of the people and leads the path towards growth and development.
  3. Enhance personal objectives:
    • Through motivation and leadership, the management helps individuals to develop team spirit, cooperation and commitment to group success.
    • A manager motivates and leads his team in such a manner that individual members can achieve personal goals while contributing to the overall organizational objective.