Concept of Management : Definition, Need, Concept and Nature of Management

The term ‘management’ has been used in different senses. Sometimes it refers to the process of planning, organizing, staffing, directing, coordinating and controlling, at other times it is used to describe it as a function of managing people. It is also referred to as a body of knowledge, a practice and discipline. There are some who describe management as a technique of leadership and decision-making while some others have analyzed management as an economic resource, a factor of production or a system of authority.

DEFINITION OF MANAGEMENT

It is very difficult to give a precise definition of the term ‘management’. Different scholars from different disciplines view and interpret management from their own angles. The economists consider management as a resource like land, labour, capital and organisation. The bureaucrats look upon it as a system of authority to achieve business goals. The sociologists consider managers as a part of the class elite inthe society.The definitions by some of the leading management thinkers and practitioners are given below:

Management is the coordination of all resources through theprocess of planning, organising, directing and controlling inorder to attain stated objectives.        —Henry L. Sisk.

Management is principally the task of planning, coordinating, motivating and controlling the efforts of others towards specific objective.                                    —James L. Lundy

Management is the art and science of organising and directing human efforts applied to control the forces and utilise the materials of nature for the benefit of man. —American Society of Mechanical Engineers

Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way. —F.W. Taylor

To manage is to forecast and to plan, to organise to command,to coordinate and to control.—Henry Fayol

Management is a multipurpose organ that manage a business and manages Managers and manages Workers and work.—Peter Drucker

NEED of  MANAGEMENT

1. Direction, coordination and control of group efforts: In business, many persons work together. They need proper direction and guidance for raising their efficiency. In the absence of guidance, people will work as per their desire and the, orderly working of enterprise will not be possible. Management is needed for planning business activities, for guiding employees in the right direction and finally for coordinating their efforts for achieving best/most favorable results.
2. Orderly achievement of business objectives: Efficient management is needed in order to achieve the objectives of business activity in an orderly and quick manner.
3. Performance of basic managerial functions: Planning, Organising, Co-ordinating and Controlling are the basic functions of management. Management is needed as these functions are performed through the management process.
4.    Effective communication at all levels: Management is needed for effective communication within and outside the Organisation.
5.    Motivation of employees: Management is needed for motivating employees and also for coordinating their efforts so as to achieve business objectives quickly.
6.    Success and stability of business enterprise: Efficient management is needed for success, stability and prosperity of a business enterprise.

Since most managers are responsible for more work than one person can normally perform, a good manager delegates and integrates his or her work (or the work of others). A manager does this by acting as a clear channel of communication within the business that he or she serves. Good management is needed to inject motivation, creativity, discipline, and enthusiasm into areas in which they either don’t exist or they’re not necessarily wanted.

CONCEPTS OF MANAGEMENT

The term management has been interpreted in several ways; some of which are given below:

Management as an Activity:

Management is an activity just like playing, studying, teaching etc. As an activity management has been defined as the art of getting things done through the efforts of other people. Management is a group activity wherein managers do to achieve the objectives of the group. The activities of management are:

• Interpersonal activities
• Decisional activities
• Informative activities

Management as a Process:

Management is considered a process because it involves a series of interrelated functions. It consists of getting the objectives of an organisation and taking steps to achieve objectives. The management process includes planning, organising, staffing, directing and controlling functions.Management as a process has the following implications:

1. Social Process: Management involves interactions among people.Goals can be achieved only when relations between people are productive. Human factor is the most important part of the management.
2. Integrated Process :Management brings human, physical and financial resources together to put into effort. Management also integrates human efforts so as to maintain harmony among them.
3. Continuous Process: Management involves continuous identifying and solving problems. It is repeated every now and then till the goal is achieved.
4. Interactive process: Managerial functions are contained within eachother. For example, when a manager prepares plans, he is also laying down standards for control.

Management as an Economic Resource:

Like land, labour and capital, management is an important factor of production. Management occupies the central place among productive factors as it combines and coordinates all other resources.

Management as a Team:

As a group of persons, management consists of all those who have the responsibility of guiding and coordinating the efforts of other persons.These persons are called as managers who operate at different levels of authority (top, middle, operating). Some of these managers have ownership stake in their firms while others have become managers by virtue of their training and experience. Civil servants and defence personnel who manage public sector undertakings are also part of the management team. As a group managers have become an elite class in society occupying positions with enormous power and prestige.

Management as an Academic Discipline:

Management has emerged as a specialised branch of knowledge. It comprises principles and practices for effective management of organisations. Management has become as very popular field of study as is evident from the great rush for admission into institutes of management. Management offers a very rewarding and challenging career.

Management as a Group:

Management means the group of persons occupying managerial positions. It refers to all those individuals who perform managerial functions. All the managers, e.g., chief executive (managing director), departmental heads, supervisors and so on are collectively known as management.For example, when one remarks that the management of Reliance Industries Ltd. is good, he is referring to the persons who are manag- ing the company. There are several types of managers which are listed as under.

1. Family managers who have become managers by virtue of their being owners or relatives of the owners of a company.
2.  Professional managers who have been appointed on account of their degree or diploma in management.
3. Civil Servants who manage public sector undertakings. Managers have become a very powerful and respected group in modern society. This is because the senior managers of companies take decisions that affect the lives of a large number of people. For example, if the managers of Reliance Industries Limited decide to expand pro- duction it will create job for thousands of people. Managers also help to improve the social life of the public and the economic progress of the country. Senior managers also enjoy a high standard of living in society. They have, therefore, become an elite group in the society.

Nature and Characteristics of MANAGEMENT

The salient features which highlight the nature of management are as follows:

(i)Management is goal-oriented: Management is not an end in itself. It is a means to achieve certain goals. Management has no justification to exist without goals. Management goals are called group goals or organisational goals. The basic goal of manage- ment is to ensure efficiency and economy in the utilisation of human, physical and financial resources. The success of management is measured by the extent to which the established goals one achieved. Thus, management is purposefull.

(ii)Management is universal: Management is an essential element of every organised activity irrespective of the size or type of activity. Wherever two or more persons are engaged in working for a common goal, management is necessary. All types of organisations, e.g., family, club, university, government, army, cricket team or business, require management. Thus, management is a pervasive activity. The fundamental principles of management are applicable in all areas of organised effort. Managers at alllevels perform the same basic functions.

(iii)Management is an Integrative Force: The essence of management lies in the coordination of individual efforts in to a team. Man- agement reconciles the individual goals with organisational goals. As unifying force, management creates a whole that is more than the sum of individual parts. It integrates human and other resources.

(iv) Management is a Social Process: Management is done by people, through people and for people. It is a social process because it is concerned with interpersonal relations. Human factor is the most important element in management. According to Appley, “Man- agement is the development of people not the direction of things. A good manager is a leader not a boss. It is the pervasiveness of human element which gives management its special character as a social process”.

(v) Management is multidisciplinary: Management has to deal with human behaviour under dynamic conditions. Therefore, it depends upon wide knowledge derived from several disciplines like engineering, sociology, psychology, economics, anthropol- ogy, etc. The vast body of knowledge in management draws heavily upon other fields of study.

(vi)Management is a continuous Process: Management is a dynamic and an on-going process. The cycle of management continues to operate so long as there is organised action for the achievement of group goals.

(vii)Management is Intangible: Management is an unseen or invisible force. It cannot be seen but its presence can be felt everywherein the form of results. However, the managers who perform the functions of management are very much tangible and visible.

(viii) Management is an Art as well as Science: It contains a systematic body of theoretical knowledge and it also involves the practical application of such knowledge. Management is also a discipline involving specialised training and an ethical code arising out of its social obligations. On the basis of these characteristics, management may be defined as a continuous social process involving the coordination of human and material resources in order to accomplish desired objectives. It involves both the determination and the accomplishment of organisational goals.

NATURE OF MANAGEMENT

To understand the basic nature of management, it must be analysed in terms of art and science, in relation to administration, and as a profession, in terms of managerial skills and style of managers.Management is Combination of Art and Science Management knowledge exhibits characteristics of both art and sci- ence, the two not mutually exclusive but supplementary. Every discipline of art is always backed by science which is basic knowledge of that art. Similarly, every discipline of science is complete only when it is used in practice for solving various kinds of problems faced by human beings in an organisation or in other fields of social life which is more related to an art. Art basically deals with an application of knowledge personal skill and know-how in a specific situation for effi- ciently achieving a given objective. It is concerned with the best way of doing things and is consequently, personalised in nature. During the primitive stages of development of management knowl- edge, it was considered as an art. There was a jungle of managerial knowledge. It was not codified and systemised. People used it to get things done by others, in their own way giving an impression that whosoever uses it, knows the art of using it. This kind of loose and inadequate understanding of management supported the view that it was an art.

• MANAGEMENT as a Science

Science means a systematic body of knowledge pertaining to a specific field of study. It contains general principles and facts which explains a phenomenon. These principles establish cause-and-effect relationship between two or more factors. These principles and theories help to explain past events and may be used to predict the outcome of actions. Scientific methods of observations, and experiments are used to develop principles of science. The principles of science have universal application and validity. Thus, the essential features of science are as follows:

1. Basic facts or general principles capable of universal application
2.  Developed through scientific enquiry or experiments
3. Establish cause and effect relationships between various factors.
4.  Their Validity can be verified and they serve as reliable guide for predicting future events.

• MANAGEMENT as an Art

Art implies the application of knowledge and skills to bring about the desired results. The essential elements of arts are:

1.  Practical knowledge
2.  Personal skill
3.  Result oriented approach
4.  Creativity
5.  Improvement through continuous practice

 It is a science because it has an organised body of knowledge consisting of certain universal facts. It is known as an art because it involves creating results through practical application of knowledge and skills. However, art and science are complementary to each other. They are not mutually exclusive. Science teaches one to know and art to do. Art without science has no guide and science without art is knowledge wasted. For example, a person cannot be a good surgeon unless he has scientific knowledge of human anatomy and the practical skill of applying that knowledge in conducting an operation. Similarly, a successful manager must know the principles of management and also acquire the skill of applying those principles for solving managerial problems in different situations. Knowledge of principles and theory is essential, but practical application is required to make this knowledge fruitful. One cannot become an effective manager simply by learning management principles by heart. Science (theory) and art (practice) are both essential for the success of management.

• Management as a Profession

A profession is calling that requires specialised knowledge and often, long intensive academic preparation. The essential features of profession are as follows:

1.  Well defined body of knowledge
2. Restricted entry
3.  Service motive
4.  Code of Conduct
5.  Representative professional association

Management is, not strictly speaking, a full-fledged profession like medicine, law or chartered accountancy. Some experts believe that there should be no control over entry into management careers. According to Peter F. Drucker, “Management is a practice rather than a science or profession through containing elements of both. No greater damage could be done to economy and society than to attempt to professionalise management by licensing managers or by limiting access to management to people with special academic degree”.

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