CHAPTER – I
NATURE AND SIGNIFICANCE OF MANAGEMENT
1. DEFINITION OF MANAGEMENT:
“Management is the process of working with and through others to effectively achieve the
organizational objectives by efficiently using limited resources in the changing environment.”
Kreitner
2. MEANING/CONCEPT OF MANAGEMENT:
Management is the process of getting things done with the aim of achieving goals effectively and
efficiently.
a. Process: refers to the primary function like planning, organising, staffing, directing and
controlling performed by the management to get things done.
b. Effectiveness: means completing the right task to achieve the deputed goal within the
time frame.
c. Efficiency: means completion of task using minimum resources.
3. EFFECTIVENESS VS EFFICIENCY
Effectiveness is about doing the right task, completing the assigned job on time, no matter
whatever the cost.
Efficiency is about doing the job in cost effective manner i.e. getting maximum output
with minimum input
Basis
Effectiveness Efficieny
Meaning It refers to the completion of It refers to the completion of work
work on time. correctively with minimum cost and
maximum profit
Simple meaning It simply means doing It simply means doing things
right things correctly in a faster and cost
efficient manner.
Objective To achieve end results Performing task with least wastage
on time of time and effort (cost)
Main Focus Is on time Is on cost
, 4. CHARACTERISTICS OF MANAGEMENT:
I. Management is a goal-oriented process: An organisation has a set of simple and clearly
stated goals, which are the basic reason for its existence. Management unites the efforts of
the individuals in the organisation towards achieving these goals.
II. Management is all pervasive: Management is common to all organisations whether
economic, social or political. For e.g. management is applicable for a government
company, school, private company or a NGO.
III. Management is multidimensional:
Management is a complex activity that has
three main dimensions:
(a) Management of work
(b) Management by people
(c) Management by operation
IV. Management is a continuous process: It
is a series of continuous, composite, but
separate functions, performed by all
managers all the time.
V. Management is a group activity: All
the individuals in the organisation
contributes towards achieving the goals
set by the organization.
VI. Management is a dynamic function: It has to adapt itself to its changing external
environment, which consists of various social, economic and political factors.
VII. Management is an intangible force: It cannot be seen but its presence can be felt from
the way organization functions.
5. MANAGEMENT OBJECTIVES:
Organisational Objectives: Organizational Objectives can be
divided into Survival (Earning enough revenues to cover cost);
Profit (To cover cost and risk); and Growth (To improve its
future prospects).
(a) Survival: Earning enough revenues to cover cost.
Management by taking positive decisions with regard to
different business activities ensures survival of business
NATURE AND SIGNIFICANCE OF MANAGEMENT
1. DEFINITION OF MANAGEMENT:
“Management is the process of working with and through others to effectively achieve the
organizational objectives by efficiently using limited resources in the changing environment.”
Kreitner
2. MEANING/CONCEPT OF MANAGEMENT:
Management is the process of getting things done with the aim of achieving goals effectively and
efficiently.
a. Process: refers to the primary function like planning, organising, staffing, directing and
controlling performed by the management to get things done.
b. Effectiveness: means completing the right task to achieve the deputed goal within the
time frame.
c. Efficiency: means completion of task using minimum resources.
3. EFFECTIVENESS VS EFFICIENCY
Effectiveness is about doing the right task, completing the assigned job on time, no matter
whatever the cost.
Efficiency is about doing the job in cost effective manner i.e. getting maximum output
with minimum input
Basis
Effectiveness Efficieny
Meaning It refers to the completion of It refers to the completion of work
work on time. correctively with minimum cost and
maximum profit
Simple meaning It simply means doing It simply means doing things
right things correctly in a faster and cost
efficient manner.
Objective To achieve end results Performing task with least wastage
on time of time and effort (cost)
Main Focus Is on time Is on cost
, 4. CHARACTERISTICS OF MANAGEMENT:
I. Management is a goal-oriented process: An organisation has a set of simple and clearly
stated goals, which are the basic reason for its existence. Management unites the efforts of
the individuals in the organisation towards achieving these goals.
II. Management is all pervasive: Management is common to all organisations whether
economic, social or political. For e.g. management is applicable for a government
company, school, private company or a NGO.
III. Management is multidimensional:
Management is a complex activity that has
three main dimensions:
(a) Management of work
(b) Management by people
(c) Management by operation
IV. Management is a continuous process: It
is a series of continuous, composite, but
separate functions, performed by all
managers all the time.
V. Management is a group activity: All
the individuals in the organisation
contributes towards achieving the goals
set by the organization.
VI. Management is a dynamic function: It has to adapt itself to its changing external
environment, which consists of various social, economic and political factors.
VII. Management is an intangible force: It cannot be seen but its presence can be felt from
the way organization functions.
5. MANAGEMENT OBJECTIVES:
Organisational Objectives: Organizational Objectives can be
divided into Survival (Earning enough revenues to cover cost);
Profit (To cover cost and risk); and Growth (To improve its
future prospects).
(a) Survival: Earning enough revenues to cover cost.
Management by taking positive decisions with regard to
different business activities ensures survival of business
