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NATURE &
CHAPTER 01

MANAGEMENT
SIGNIFICANCE OF
 1. MANAGEMENT
1.1. MANAGEMENT
- [management] The process of getting things done with the aim of
achieving goals effectively and efficiently.
- Management has three important terms: process, effectively,
efficiently.

1.2. OBJECTIVES
1.2.1. ORGANIZATIONAL OBJECTIVES
1. Survival
- Management has to strive to ensure the organization's survival.
- To survive, an organization must earn enough revenue to cover
costs.
2. Profit
- Since mere survival isn't enough, management has to ensure that
the organization makes a profit.
- It serves as a vital incentive for the continuous successful
operation of the organization.
3. Growth
- Management must fully exploit the growth potential of an
organization, to remain in the industry.
- The growth of the an organization can be measured in terms of
increase in: sales volume, employees, capital investment.

1.2.2. SOCIAL OBJECTIVES

1. Participate in social activity
2. Follow an ethical code of conduct
3. Supply quality products at reasonable prices
4. Use environmental friendly production methods
5. Generate employment opportunities for weaker sections of society

1.2.3. PERSONAL OBJECTIVES

1. Provide competitive salary to fulfill employee's financial need
2. Provide respect and recognition
3. Provide healthy working condition

1.3. IMPORTANCE
1. Organizational, personal and group goals
- A management must achieve the goals of an organization.
- The task of a manager is: giving a common direction to the
individual effort.
2. Dynamic organization
- A management must help people adapt to changes, so that the
organization is able to maintain it's competitive edge.
- It's observed that individuals resist change, since it means moving
from a familiar environment into a challenging environment.
3. Efficiency

 -The task of a manager is: reducing costs and increasing

productivity.
- This can be done through better planning, organizing, directing,
staffing, controlling the activities of the organization.
4. Societal development
- An organization has the objective to serve the purpose of the groups
that constitute it.
- It helps create employment opportunities, provide quality products
and services, adopt new technologies for betterment of people.

1.4. NATURE
1.4.1. ART
1. Theoretical knowledge
- There are many principles on management, which have been
formulated by various experts.
2. Personalized application
- A good manager, works by combining practice, creativity,
imagination, initiative, innovation.
3. Practice and creativity
- A person becomes a good manager, with constant practice and
experience, leading to different management styles.

1.4.2. SCIENCE
1. Systematized body of knowledge
- Management is a well-defined body of knowledge, containing many
principles, which have been formulated by various experts.
2. Experimentation principles
- The principles of management are based on personal observation and
tested through repeated experimentation.
3. Universal validity
- The principles of management lack universal validity, since it
deals with complex human behavior, due to varied reactions.

1.4.3. PROFESSION
1. Body of knowledge
- There are many principles on management, which have been
formulated by various experts.
2. Professional association
- It's not necessary for a member of such an association to become a
management, for several management associations.
3. Service motive
- A good management ensures that it serves objectives of profit
maximization and social welfare, through it's existence.

1.5. LEVELS
1.5.1. TOP MANAGEMENT
- It decides the objectives of the organization.
- It formulates plans and policies.
- It organizes activities to be performed by middle-level employees.

 - It consists of president, chief executive officer, vice-president.

1.5.2. MIDDLE MANAGEMENT

- It recruits employees.
- It cooperates with other departments for smooth functioning.
- It motivates employees to perform their best ability.
- It consists of the manager's and first-line superior's subordinates.

1.5.3. BOTTOM MANAGEMENT

- It represents the problems of workers before the middle-level.
- It maintains healthy working conditions of workers.
- It helps middle-level in the recruitment process.
- It consists of foremen, supervisors, superintendents.

1.6. FUNCTIONS
1.6.1. PLANNING
- [planning] The function of determining what's to be done, who's to
do, when it's to be done, where it's to be done, in advance.

1.6.2. ORGANIZING
- [organizing] The function of assigning duties, grouping tasks,
establishing authority, to carry out a specific plan.

1.6.3. STAFFING
- [staffing] The function of finding the right person for the right
job.

1.6.4. DIRECTING
- [directing] The function of leading, influencing, motivating
employees to perform the tasks assigned to them.

1.6.5. CONTROLLING
- [controlling] The function of monitoring organizational performance
towards attaining organizational goals.

1.7. TERMS
- [effective] The extent to which someone or something is successful
towards meeting the desired outcome.
- [efficiency] The act of performing activities with minimum wastage
and resource wastage.
BASIS EFFECTIVE EFFICIENCY

TASK FOCUS Doing assigned task accurately Doing assigned task in the right way

EFFORTS Not effort oriented Effort oriented

STRATEGY Not strategy oriented Strategy oriented

TIME Not time oriented Time oriented

2. COORDINATION

 - [coordination] The integration of efforts of group members to

provide unity of action to achieve organizational goals.
- It's a continuous process, beginning at the planning stage and
continuing until controlling.
- It's the function of every manager in the organization, that is:
- top-level managers coordinate with subordinates to ensure
organizational policies are carried out.
- middle-level managers coordinate with top-level and first-line
managers.
- bottom-level managers coordinate the activities of workers to
ensure that work continues, as planned.

2.1. IMPORTANCE
1. Size
- It integrates individuals goals with organizational goals to
achieve organizational efficiency, for them to grow in size.
2. Functional differentiation
- It ensures unity of action amongst departments which have
independent functioning, by linking their activities.
3. Specialization
- It integrates the efforts of various specialists in the organization
which avoids conflicts.

2.2. ESSENCE OF MANAGEMENT

1. Needed in all management functions
1. Planning
- It's required between organizational plans and departmental
plans.
2. Organizing
- It's required to achieve balance between authority,
responsibility, accountability.
3. Staffing
- It's required to achieve balance between job requirement and
personal qualities.
4. Directing
- It's required between supervision, motivation, leadership and
communication.
5. Controlling
- It's required to ensure actual results conform to expected
results.
2. Needed at all levels of management
1. Top-level
- It's required to coordinate organizational activities to
accomplish organizational goals.
2. Middle-level
- It's required to coordinate the efforts of different sections and
sub-sections.
3. Lower-level
- It's required to coordinate the activities of workers to ensure
the progress of work.