Nature of Management
Universal process: Wherever there is human activity, there is management. Without efficient management, objectives of the company can not be achieved.
Factor of production: Qualified and efficient managers are essential to utilization of labor and capital.
Goal oriented: The most important goal of all management activity is to accomplish the objectives of an enterprise. The goals should be realistic and attainable.
Supreme in thought and action: Managers set realizable objectives and then mastermind action on all fronts to accomplish them. For this, they require full support form middle and lower levels of management.
Group activity: All human and physical resources should be efficiently coordinated to attain maximum levels of combined productivity. Without coordination, no work would accomplish and there would be chaos and retention.
Dynamic function: Management should be equipped to face the changes in business environment brought about by economic, social, political, technological or human factors. They must be adequate training so that can enable them to perform well even in critical situations.
Social science: All individuals that a manager deals with, have different levels of sensitivity, understanding and dynamism.
Important organ of society: Society influences managerial action and managerial actions influence society. Its managers responsibility that they should also contribute towards the society by organizing charity functions, sports competition, donation to NGO’s etc.
System of authority: Well-defined lines of command, delegation of suitable authority and responsibility at all levels of decision-making. This is necessary so that each individual should what is expected from him and to whom he need to report to.
Profession: Managers need to possess managerial knowledge and training, and have to conform to a recognized code of conduct and remain conscious of their social and human obligations.
Process: The management process comprises a series of actions or operations conducted towards an end.
Scope of Management
Although it is difficult to precisely define the scope of management, yet the following areas are included in it:
1. Subject-matter of management: Planning, organizing, directing, coordinating and controlling are the activities included in the subject matter of management.
2. Functional areas of management: These include:
Financial management includes accounting, budgetary control, quality control, financial planning and managing the overall finances of an organization.
Personnel management includes recruitment, training, transfer promotion, demotion, retirement, termination, labor-welfare and social security industrial relations.
Purchasing management includes inviting tenders for raw materials, placing orders, entering into contracts and materials control.
Production management includes production planning, production control techniques, quality control and inspection and time and motion studies.
Maintenance management involves proper care and maintenance of the buildings, plant and machinery.
Transport management includes packing, warehousing and transportation by rail, road and air.
Distribution management includes marketing, market research, price-determination, taking market risk and advertising, publicity and sales promotion.
Office Management includes activities to properly manage the layout, staffing and equipment of the office.
Development management involves experimentation and research of production techniques, markets, etc.
3. Management is an inter-disciplinary approach: For the correct implementation of the management, it is important to have knowledge of commerce, economics, sociology, psychology and mathematics.
4. Universal application: The principles of management can be applied to all types of organizations irrespective of the nature of tasks that they perform.
5. Essentials of management: Three essentials of management are:
- Scientific method
- Human relations
- Quantitative technique
6. Modern management is an agent of change: The management techniques can be modified by proper research and development to improve the performance of an organization.
