Definition of Manage/men/t

• According to Henri Fayol, "to manage is to forecast and to plan, to organize, to

command, to co-ordinate and to control."
• It is "the transformation of resources into utility."
• It is “a vulnerable force, under pressure to achieve results and endowed with
the triple power of constraint, imitation and imagination, operating on
subjective, interpersonal, institutional and environmental levels”.
• Peter Drucker (1909–2005) saw the basic task of management as
twofold: marketing and innovation. Nevertheless, innovation is also linked to
marketing (product innovation is a central strategic marketing issue). Peter
Drucker identifies marketing as a key essence for business success, but
management and marketing are generally understood as two different
branches of business administration knowledge.

Meaning of Management
Management is an individual or a group of individuals that accept responsibilities
to run an organisation. They Plan, Organize, Direct and Control all the essential
activities of the organisation. Management does not do the work themselves. They
motivate others to do the work and co-ordinate (i.e. bring together) all the work
for achieving the objectives of the organisation.
Management brings together all Six Ms i.e. Men , Money, Machines, Materials,
Methods and Markets. They use these resources for achieving the objectives of the
organisation such as high sales, maximum profits, business expansion, etc.
Management:
Management may be labeled as the art of getting work done through people, with
satisfaction for employer, employees and the public.
For getting the work done (of an enterprise) through the efforts of other people, it
is necessary to guide, direct, coordinate and control human efforts towards the
fulfillment of the goals of the enterprise.

The goals of the enterprise are fulfilled through the use of resources like men,
money, materials and machines.
Management may be called an Art as well as Science:
(a) Management has scientific basis because management techniques are
susceptible to measurement and factual determination.
(b) Management is an Art because management means coordinating and getting
work done through others.

Management is an executive function which actively directs human efforts towards

common goals. The main Characteristics of the management is to integrate and
apply the knowledge and analytical approaches developed by numerous other
disciplines.
There are different levels in management i.e., top level and middle level and lower
management.
 NATURE OF MANAGEMENT

Management—as a systematic process—helps identify a group of people who carry

out particular activities, thereby improving an organization’s efficiency and
effectiveness. Here are the salient features that highlight the nature of
management in businesses.

So we have explained in terms of its features which are as follows.

• Universal
• Social
• Intangible
• Dynamic
• Goal-Oriented
• Production Factor
• Co-ordinating
• Crucial Part of Society
• Professional
• Process

Below is the explanation of the features briefly to understand the nature of

management in detail

1. Universal

Management is universal as it’s common and crucial in all organizations. You can
apply the principles of management in all situations regardless of the nature,
location, and size of the enterprise. Management’s universality implies that its skills
are transferable from one person to another which allows managers to get trained
and develop those skills.
2. Social

Management involves handling people organized in a group. All the individuals a

manager has to interact with have various levels of dynamism, understanding, and
sensitivity. Management requires retaining, motivating, and developing people at
work and ensuring their satisfaction as social beings.

3. Intangible

Management is intangible. It’s not a thing or object which you can touch but you
can feel its presence through the results of its efforts as adequate, orderly work
output and employee satisfaction.

4. Dynamic

Management is dynamic as it must remain equipped to face various changes in the

corporate environment caused by social, economic, technological, political, or
human factors. It inspires and thrives on dynamic action.

5. Goal-Oriented

All the activities performed in management processes are goal-oriented. They all
focus on achieving specific goals. Management processes aim to achieve the
organization’s goals that are practical and realistic. It is purposeful as its success is
measured by the extent to which it achieves the desired goals.

6. Production Factor

Managers are vital to utilizing capital and labour. That’s why management is a
significant factor of production. Learn more about Soft Skill For Product Manager
7. Co-ordinating

Management requires coordination between groups of people. All physical and

human resources require efficient coordination to achieve optimal levels of
productivity. Without it, no work would complete leading to retention and chaos.

8. Crucial Part of Society

Society has a great impact on management and similarly, management has an

impact on society. Managers are responsible for contributing to society through
charity, organization, and growth.

9. Professional

Managers must have the proper knowledge and managerial training.They must also
conform to the code of conduct and be conscious of their humans and social
responsibilities.

10. Process
Management consists of a sequence of actions that we conduct towards an end
 Importance of Management

Optimum Utilization of Resources - Management utilizes all the physical & human
resources productively. This leads to efficacy in management. Management
provides maximum utilization of scarce resources by selecting its best possible
alternate use in industry from out of various uses.It makes use of experts,
professional and these services leads to use of their skills, knowledge, and proper
utilization and avoids wastage. If employees and machines are producing its
maximum there is no under employment of any resources.

It helps in Achieving Group Goals - It arranges the factors of production, assembles

and organizes the resources, integrates the resources in effective manner to
achieve goals. It directs group efforts towards achievement of pre-determined
goals. Group Goals: By defining objective of organization clearly there would be no
wastage of time, money and effort. Management converts disorganized resources
of men, machines, money etc. into useful enterprise. These resources are
coordinated, directed and controlled in such a manner that enterprise work
towards attainment of goals.

Reduces Costs - It gets maximum results through minimum input by proper

planning and by using minimum input & getting maximum output. Management
uses physical, human and financial resources in such a manner which results in best
combination. This helps in cost reduction.

Establishes Sound Organization - No overlapping of efforts (smooth and

coordinated functions). To establish sound organizational structure is one of the
objective of management which is in tune with objective of organization and for
fulfillment of this, it establishes effective authority & responsibility relationship i.e.
who is accountable to whom, who can give instructions to whom, who are superiors
& who are subordinates.
Essentials for Prosperity of Society - Efficient management leads to better
economical production which helps in turn to increase the welfare of people. Good
management makes a difficult task easier by avoiding wastage of scarce resource.It
improves standard of living. It increases the profit which is beneficial to business
and society will get maximum output at minimum cost by creating employment
opportunities which generate income in hands. Organization comes with new
products and researches beneficial for society.

Establishes Sound Organization

Management fills up various positions with right persons, having right skills,
training and qualification. All jobs should be cleared to everyone.

Establishes Equilibrium - It enables the organization to survive in changing

environment. It keeps in touch with the changing environment.With the change is
external environment, the initial co-ordination of organization must be changed.
So it adapts organization to changing demand of market/changing needs of
societies. It is responsible for growth and survival of organization.

Functions of Management

Different experts have classified the functions of management in different ways.

Koontz and O’Donnell have given a very convenient classification of management
functions that are generally accepted they are:

➢ Planning
➢ Organizing
➢ Staffing
➢ Directing
➢ Controlling
Planning

It is the basic function of management. It deals with chalking out a future course of
action & deciding in advance the most appropriate course of actions for
achievement of pre-determined goals. A plan is a future course of actions. It is an
exercise in problem solving & decision making. Planning is determination of courses
of action to achieve desired goals. Thus, planning is a systematic thinking about
ways & means for accomplishment of pre-determined goals.

Planning is necessary to ensure proper utilization of human & non-human

resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding
confusion, uncertainties, risks, wastages etc.

Organizing

It is the process of bringing together physical, financial and human resources and
developing productive relationship amongst them for achievement of
organizational goals. According to Henry Fayol, “To organize a business is to provide
it with everything useful or its functioning i.e. raw material, tools, capital and
personnel’s”. To organize a business involves determining & providing human and
non-human resources to the organizational structure. Organizing as a process
involves:

• Identification of activities.
• Classification of grouping of activities.
• Assignment of duties.
• Delegation of authority and creation of responsibility.
• Coordinating authority and responsibility relationships.
• Know more about - Organizing Function of Management
Staffing

It is the function of manning the organization structure and keeping it manned.

Staffing has assumed greater importance in the recent years due to advancement
of technology, increase in size of business, complexity of human behavior etc.

The main purpose of staffing is to put right man/woman on right job i.e. square
pegs in square holes and round pegs in round holes. According to Koontz &
O’Donell, “Managerial function of staffing involves manning the organization
structure through proper and effective selection, appraisal & development of
personnel to fill the roles designed un the structure”. Staffing involves:

• Recruitment, Selection & Placement.

• Training & Development.
• Remuneration.
• Performance Appraisal.
• Promotions & Transfer.
• Know more about - Staffing Function of Management

Directing

It is that part of managerial function which actuates the organizational methods to

work efficiently for achievement of organizational purposes.

It is considered life-spark of the enterprise which sets it in motion and action of

people, because planning, organizing and staffing are the mere preparations for
doing the work. Direction is that inter-personnel aspect of management which
deals directly with influencing, guiding, supervising, motivating sub-ordinate for the
achievement of organizational goals. Direction has following elements:

Supervision- implies overseeing the work of subordinates by their superiors. It is

the act of watching & directing work & workers.

Motivation- means inspiring, stimulating or encouraging the sub-ordinates with

zeal to work. Positive, negative, monetary, non-monetary incentives may be used
for this purpose.
Leadership- may be defined as a process by which manager guides and influences
the work of subordinates in desired direction.

Communications- is the process of passing information, experience, opinion etc

from one person to another. It is a bridge of understanding.

Controlling

It implies measurement of accomplishment against the standards and correction of

deviation if any to ensure achievement of organizational goals.

The purpose of controlling is to ensure that everything occurs in conformities with

the standards. An efficient system of control helps to predict deviations before they
actually occur. “Controlling is the process of checking whether or not proper
progress is being made towards the objectives and goals and acting if necessary, to
correct any deviation”. “Controlling is the measurement & correction of
performance activities of subordinates in order to make sure that the enterprise
objectives and plans desired to obtain them as being accomplished”. Therefore
controlling has following steps:

• Establishment of standard performance.

• Measurement of actual performance.
• Comparison of actual performance with the standards and finding out
deviation if any.
• Corrective action.
 Management as an Art Science and Profession

Management as an Art

Art is the application of knowledge and personal skills to achieve desired results. It
can be developed through education, research, and practice. Art requires a level of
creativity and innovation. Some key characteristics of art are:

Theoretical Knowledge: Art requires a certain level of theoretical knowledge. Every

artist, whether a writer, a painter, or a musician, has a fundamental understanding
of their field.

Personalized Application: The application of this knowledge varies from person to

person, making art a highly individual concept.

Creativity and Tradition: Art is practical and involves the creative application of
existing knowledge. For instance, a chef uses a few basic ingredients to create a
unique dish.

Management as a Science

Science can be divided into a) physical sciences b) social sciences Physical sciences-
physics, chemistry, mathematics are exact and accurate; while social sciences are
not as accurate and exact as they deal with human beings.

Management is a social science It is a systematic body of knowledge that focuses

on universal truths or the operation of general laws. Some key characteristics of
science include:

Organized Body of Knowledge: Science is a systematic body of knowledge based on

cause and effect relationships.

Universal Validity: Scientific principles have universal validity and applicability.

Experimentation: Scientific principles are developed through research and then

tested through repeated experiments under controlled conditions.
Management as a Profession

A profession is an occupation that requires specialized education and training.

Some characteristics of a profession are:

Well-Defined Body of Knowledge: Every profession is based on a well-defined body

of knowledge that can be acquired through education.

Restricted Entry: Entry into a profession is regulated through examinations or

educational qualifications. For example, to become a doctor in India, one has to
clear a rigorous examination conducted by medical boards.

Professional Association: Every profession is associated with a professional body

that regulates entry, provides a certificate of practice, and enforces a code of
conduct. For instance, engineers in India are required to be members of the
Institution of Engineers.

Systems Concept Of Management

The systems theory has had a significant effect on management science and understanding
organizations. A system is a collection of part unified to accomplish an overall goal. If one part
of the system is removed, the nature of the system is changed as well. A system can be looked
at as having inputs (e.g. Resources such as raw materials, money, technology, labor), processes
(e.g., planning, organizing, motivating, and controlling), outputs (products or services) and
outcomes (e.g., enhanced quality of life or productivity for customers/clients, productivity).
Systems share feedback among each of these four aspects of the system. The Systems Theory
may seem quite basic. Yet, decades of management training and practices in the workplace
have not followed this theory. Only recently, with tremendous changes facing organizations and
how they operate, have educators and managers come to face this new way of looking at
things. The effect of systems theory in management is that it helps managers to look at the
organization more broadly. It has also enabled managers to interpret patterns and events in the
workplace
–
i.e., by enabling managers to recognize the various parts of the organization, and, in particular,
the interrelations of the parts. The basic idea of systems approach is that any object must rely
on a method of analysis involving simultaneous variations of mutually dependent variables.
Features of a System
A system is an assemblage of things connected or inter related so as to form a complex unity; a
whole composed of parts and sub-parts in orderly arrangement according to some plan.

1. A system is basically a combination of parts, subsystems. Each part may have various sub-
parts. When a subsystem is considered as a system without reference to the system of which it
is a part, it has the same features of a system.

2. Parts and sub-parts of a system are mutually related to each other, some more, some less;
some directly, some indirectly.

3. A system is not merely the totality of parts and subparts but their arrangement is more
important. It is an interdependent framework in which various parts are arranged.

4. A system can be identified because it has a boundary. The boundary maintains proper
relationship between the systems and its environment.

5. The boundary of the system classifies it into two parts- closed system and open system.

6. System transforms inputs into outputs. This transformation process is essential for the
survival of the system.
Open and Closed Systems
The boundary of the system classifies it into two parts: closed system and open system. All living
organisms are open system while all non-living systems are closed systems. All systems have
boundaries, a fact that is immediately apparent in mechanical systems such as the watch, but
much less apparent in social systems such as organizations.

The boundaries of open systems, interact with other systems or environments, are more
flexible than those of closed systems, which are rigid and largely impenetrable. A closed-system
perspective views organizations as relatively independent of environmental influences. The
closed-system approach conceives of the organization as a system of management,
technology, personnel, equipment, and materials, but tends to exclude competitors, suppliers,
distributors, and governmental regulators. This approach allows managers and organizational
theorists to analyze problems by examining the internal structure of a business with little
consideration of the external environment. The closed-system perspective basically views an
organization much as a thermostat; limited environmental input outside of changes in
temperature is required for effective operation. Once set, the thermostats require little
maintenance in their ongoing, self-reinforcing function. While the closed-system perspective
was dominant through the 1960s,organization scholarship and research subsequently
emphasized the role of the environment. Up through the 1960s, it was not that managers
ignored the outside environment such as other organizations, markets, government
regulations and the like, but that their strategies and other decision-making
Management Principles and Values : Processes gave relatively little consideration to the
impact these external forces might have on the internal operations of the organization. The
distinction between closed and open systems is clear but really no system is closed one but has
some properties of open systems. The classification of various systems into closed and open is
not very proper.
 Definition of Administration

The administration is a systematic process of administering the management of a

business organization, an educational institution like school or college, government
office or any nonprofit organization. The main function of administration is the
formation of plans, policies, and procedures, setting up of goals and objectives,
enforcing rules and regulations, etc.

Administration lays down the fundamental framework of an organization, within

which the management of the organization functions.

Points Administration Management

It is concerned with policy
making; it determines the goals Management is concerned with the
Policy making: to be achieved. implementation of the policy.
Implementation of the It is not directly concerned with It is directly concerned with the
policies : the implementation of policies. implementation of policies.
Functions: Its functions are legislative. Its functions are executive.
Main functions: Planning and organizing Motivation and controlling
It relates to apex or top level It relates to middle and lower level
Management level: management. management.
It is mostly used in government It is mostly used in the private
Sector: or public sector. sector
Collectors, commissioner, Vice
chancellor, registrar, sales tax General manager , managing
Illustrations: and income tax officer etc. director, director etc

Key Differences Between Management and Administration

The major differences between management and administration are given below:

➢ Management is a systematic way of managing people and things within the

organization. The administration is defined as an act of administering the
whole organization by a group of people.
 ➢ Management is an activity of business and functional level, whereas
Administration is a high-level activity.
➢ While management focuses on policy implementation, policy formulation is
performed by the administration.
➢ Functions of administration include legislation and determination.
Conversely, functions of management are executive and governing.
➢ Administration takes all the important decisions of the organization while
management makes decisions under the boundaries set by the
administration.
➢ A group of persons, who are employees of the organization is collectively
known as management. On the other hand, administration represents the
owners of the organization.
➢ Management can be seen in the profit making organization like business
enterprises. Conversely, the Administration is found in government and
military offices, clubs, hospitals, religious organizations and all the non-profit
making enterprises.
➢ Management is all about plans and actions, but the administration is
concerned with framing policies and setting objectives.
➢ Management plays an executive role in the organization. Unlike
administration, whose role is decisive in nature.
➢ The manager looks after the management of the organization, whereas
administrator is responsible for the administration of the organization.
➢ Management focuses on managing people and their work. On the other
hand, administration focuses on making the best possible utilization of the
organization’s resources.

Organisation

Organisation can be defined as a process that defines the resources as well as

allocate them, coordinates human efforts and integrates both in order to achieve
the defined goals.

Organisation is one of the major functions of management. In layman terms, one

can look at organising as an activity to eliminate chaos and introduce a systematic
functioning in the enterprise. But by organisation definition, the organisation helps
in establishing authorities, dividing workloads, assigning responsibilities, grouping
tasks and allocating resources.
This is of utter importance because once the plans have been laid there is a need
to allocate resources, divide tasks, workforce, ensure optimal utilisation of
resources etc. so that the objectives are fulfilled. Further, it facilitates the collective
working of the various members of the enterprise in an ordered manner.

Also, organisation involves defining various roles that need to be filled by suitable
employees and establishing relationships between these defined goals to eliminate
ambiguities in performance. In turn, this groups the activities clarifies the amount
of power and authority in the hands of different employees and clarifies the
responsibility for various activities within the enterprise.