Concept, Nature, and Objectives of Management

Introduction

Every organisation, whether it is a business, a school, a hospital, or a government department, requires management. Management is essential for the efficient and effective functioning of any group activity aimed at achieving specific goals.

In simple terms, management is the process of getting things done with the aim of achieving goals effectively and efficiently. It is a distinct process consisting of planning, organising, staffing, directing, and controlling, performed to determine and accomplish the objectives by the use of human beings and other resources.

Concept Of Management

The concept of management can be understood through various perspectives:

• Management as a Process: It involves a series of interrelated functions such as planning, organising, staffing, directing, and controlling. These functions are performed sequentially or simultaneously to achieve objectives.
• Management as an Activity: It is the activity of managing resources (human, physical, financial, informational) to achieve goals.
• Management as a Discipline: It is a field of study with its own principles, concepts, and theories developed over time.
• Management as a Group: It refers to the body of people who perform managerial functions in an organisation.
• Management as a Science and an Art: It has elements of both systematic knowledge (science) and practical application based on skill and creativity (art).

The concept highlights that management is a goal-oriented process involving the optimal utilisation of resources.

Characteristics Of Management

Management possesses several distinct characteristics:

• Management is a Goal-oriented Process: Management always aims at achieving certain predetermined objectives of the organisation. The functions of management are performed to achieve these goals.
• Management is All-pervasive: Management activities are performed in all types of organisations (business, non-business), at all levels (top, middle, operational), and in all departments (production, finance, marketing). It is a universal concept.
• Management is Multidimensional: Management is a complex activity with three main dimensions:
  • Management of Work: Translating the work to be done into goals to be achieved (e.g., producing goods, selling products).
  • Management of People: Managing individuals as individuals with diverse needs and as a group of people.
  • Management of Operations: Integrating management of work and people, dealing with the process of transforming inputs into desired output.
• Management is a Continuous Process: The functions of management are performed continuously. It is an ongoing process that does not stop.
• Management is a Group Activity: Management involves managing a group of people working together towards a common goal. Success depends on teamwork and coordination.
• Management is a Dynamic Function: Management operates in a constantly changing environment (economic, social, political, technological). It must adapt to these changes to be effective.
• Management is an Intangible Force: Management cannot be seen or touched, but its presence can be felt in the smooth and orderly functioning of the organisation.

Objectives Of Management

Management aims at achieving multiple objectives, which can be categorised into organisational, social, and personnel objectives. These objectives need to be balanced for the overall success and sustainability of the organisation.

Organisational Objectives

These are the primary economic objectives that management must achieve for the survival, growth, and profitability of the organisation. They are related to the core purpose of the business.

• Survival: The basic objective of any business is to survive in the market. Management must ensure that the organisation can cover its costs and continue its operations in the long run.
• Profit: Earning sufficient profit is essential for survival, growth, and expansion. Profit serves as an incentive for the efficient working of the organisation and compensation for risk.
• Growth: Businesses need to grow over time. Growth can be measured in terms of increase in sales volume, number of employees, capital invested, or number of products. Management must strive for growth and expansion.

Achieving these organisational objectives requires effective and efficient use of resources.

Social Objectives

These objectives relate to the responsibility of management towards society. Since business operates within society and uses societal resources, it has an obligation to contribute to social well-being.

• Supply of Quality Goods and Services: Providing good quality products and services at fair prices.
• Creation of Employment Opportunities: Generating jobs for people in society.
• Environmental Protection: Adopting eco-friendly practices and minimising pollution.
• Contribution to Community Welfare: Engaging in activities like setting up schools, hospitals, or supporting social causes.
• Fair Trade Practices: Avoiding unfair practices like hoarding, black marketing, and misleading advertising.

Fulfilling social objectives enhances the public image and long-term sustainability of the business.

Personnel Objectives (Individual Objectives)

These objectives are related to the employees of the organisation. Management must strive to achieve the goals of the employees while working towards organisational goals.

• Providing Fair Remuneration: Ensuring competitive salaries and wages.
• Ensuring Good Working Conditions: Providing a safe, healthy, and conducive work environment.
• Providing Opportunities for Growth and Development: Offering training, career advancement opportunities, and skill enhancement.
• Recognising and Respecting Employees: Treating employees with dignity and respect, fulfilling their social and psychological needs.
• Maintaining Healthy Industrial Relations: Fostering a positive relationship between management and workers.

Satisfied and motivated employees contribute effectively to the achievement of organisational objectives.

Importance Of Management

Management is indispensable for the successful functioning of any organisation. Its importance can be highlighted by the following points:

• Management Helps in Achieving Group Goals: Management integrates the efforts of individuals in the organisation to achieve common goals. It creates a sense of direction and coordination among group members.
• Management Increases Efficiency: By using resources optimally (human, physical, financial), management helps in reducing costs and increasing productivity. It ensures getting maximum output with minimum input.
• Management Creates a Dynamic Organisation: Organisations operate in a changing environment. Management helps the organisation adapt to these changes and grow by making necessary adjustments in goals and operations.
• Management Helps in Achieving Personal Objectives: Effective management aligns the personal goals of employees with the organisational goals. It provides opportunities for growth, development, and recognition to employees, leading to their satisfaction.
• Management Helps in the Development of Society: Good management leads to efficient production of goods and services, employment generation, optimum utilisation of resources, and adoption of new technology, all of which contribute to the development of society.

Management is thus considered the key factor that determines the success or failure of an organisation.

Nature Of Management

The nature of management has been a subject of debate. It is often viewed as having characteristics of an art, a science, and a profession.

Management As An Art

Art refers to the skillful and personal application of existing knowledge to achieve desired results. It is about practical application and creativity. Management can be considered an art because:

• Existence of Theoretical Knowledge: Art requires the existence of some theoretical knowledge (e.g., music has ragas, painting has theories of colour). Management also has a body of theories and principles developed by experts.
• Personalised Application: The use of this basic knowledge varies from person to person. An artist applies their knowledge in a unique way. Similarly, a manager applies management principles in a personalised and creative manner based on their experience, intuition, and judgment.
• Based on Practice and Creativity: Art requires continuous practice and creativity to achieve perfection. Management also involves continuous practice, experimentation, and creativity to deal with complex situations and achieve goals effectively.

Just like an artist needs both theoretical knowledge and creative application, a successful manager needs to understand management principles and apply them skillfully in real-world situations.

Management As A Science

Science is a systematic body of knowledge based on logically observed findings, facts, and events. It is characterised by its principles being based on experimentation and having universal validity. Management can be considered a science because:

• Systematised Body of Knowledge: Management has a systematic body of knowledge with its own theories, principles, and concepts that are developed through observation and research.
• Principles Based on Experimentation: Management principles have evolved over time through repeated observation and experimentation in various organisations. However, unlike physical sciences, management principles are not as precise or universally applicable due to the complexity of human behaviour.
• Universal Validity and Predictability: Management principles provide guidelines that can be applied in different situations. However, their application may need modification depending on the specific context. Management deals with human behaviour, which is complex and less predictable than objects in physical sciences.

Management is often considered a 'social science' or 'inexact science' because while it has systematic knowledge and principles, the results are not always precisely predictable due to the human element.

Management As A Profession

A profession is an occupation backed by specialised knowledge and training, formally acquired, and the entry to which is regulated by a professional body. It also has an ethical code of conduct. Management is moving towards being a profession, but it does not fully meet all the criteria:

Based on these points, management is not yet a full-fledged profession like law, medicine, or chartered accountancy, where entry is strictly regulated and adherence to a code of conduct is mandatory. However, professional managers are increasingly being hired, and formal management education is gaining prominence.

Conclusion on the nature: Management is best described as both an art and a science. It is moving towards becoming a profession.

Levels Of Management

In large organisations, there is a hierarchy of management positions. These positions, arranged in order of authority and responsibility, constitute different levels of management. These levels typically include Top, Middle, and Supervisory (Operational) management.

The levels represent the chain of command and the degree of authority and responsibility.

Top Management

This is the highest level in the management hierarchy. It consists of senior-most executives of the organisation.

• Includes: Chairman, Chief Executive Officer (CEO), Chief Operating Officer (COO), President, Managing Director, Board of Directors, General Manager.
• Functions:
  • Laying down the overall goals and strategies of the organisation.
  • Formulating overall policies and plans.
  • Organising the business into departments and sections.
  • Appointing top executives for middle level.
  • Coordinating the activities of different departments.
  • Responsible for the overall welfare and survival of the organisation.
  • Dealing with the external environment (government, public, competitors).

Middle Management

This level acts as a link between top management and supervisory management. They are responsible for implementing the plans and policies formulated by top management.

• Includes: Departmental Managers (e.g., Production Manager, Marketing Manager, Finance Manager), Divisional Managers, Branch Managers, Operations Managers.
• Functions:
  • Interpreting the policies framed by top management.
  • Recruiting and selecting suitable personnel for their respective departments.
  • Assigning duties and responsibilities to employees in their department.
  • Motivating employees to perform to their best ability.
  • Cooperating with other departments for smooth functioning.
  • Communicating decisions and policies from top management to lower levels and concerns from lower levels to top management.

Supervisory Or Operational Management (Lower Level Management)

This is the lowest level of management in the hierarchy. Managers at this level directly oversee the work of the operating employees (workers).

• Includes: Supervisors, Foremen, Section Officers, Superintendents.
• Functions:
  • Directly supervising the efforts of the workforce.
  • Ensuring that work is done according to plans and instructions.
  • Maintaining discipline among the workers.
  • Maintaining quality of output.
  • Providing guidance and training to workers.
  • Communicating workers' grievances and suggestions to middle management.
  • Ensuring safety and security in the workplace.

The quality of output and the quantity of output depend on the efficiency of operational management. They are the link between the management and the workers.

Functions Of Management

Management involves a series of interrelated functions that managers perform to achieve organisational goals. While different experts have classified these functions differently, the most commonly accepted functions are Planning, Organising, Staffing, Directing, and Controlling.

• Planning: This is the primary function of management. It involves deciding in advance what to do, how to do it, when to do it, and who is to do it. Planning bridges the gap between where we are and where we want to go. It involves setting objectives, developing strategies and policies, and preparing programs and budgets.
• Organising: This function involves identifying and grouping the activities to be performed, assigning duties to individuals, grouping similar activities into departments, and creating an authority and responsibility relationship among individuals. It establishes the structure of the organisation.
• Staffing: This function involves finding the right people for the right jobs. It includes activities such as recruitment, selection, training and development, performance appraisal, and remuneration of employees.
• Directing: This function involves leading, influencing, and motivating employees to perform the tasks assigned to them. It includes elements such as supervision, motivation, leadership, and communication.
• Controlling: This function involves ensuring that actual activities conform to planned activities. It includes setting standards, measuring actual performance, comparing actual performance with standards, and taking corrective action if necessary.

These functions are performed by managers at all levels, though the emphasis on each function may vary depending on the level.

Coordination — The Essence Of Management

Coordination is the process of integrating the activities of different departments and individuals in the organisation to ensure unity of action. It is the force that synchronises the efforts of various units and individuals towards the achievement of common goals.

Coordination is not a separate function of management but is considered the essence of management. It is required in all management functions (e.g., coordination between planning and staffing, between directing and controlling) and at all levels of management.

Characteristics Of Coordination

• Coordination Integrates Group Efforts: It is needed when different individuals or departments are working towards a common goal. It brings unity of action among diverse activities.
• Coordination Ensures Unity of Action: It is the binding force that ensures that all efforts are directed towards achieving the common goal, preventing conflicting activities.
• Coordination is a Continuous Process: It is not a one-time activity but is required throughout the life of the organisation.
• Coordination is All-pervasive: It is needed at all levels of management and in all departments.
• Coordination is the Responsibility of All Managers: Every manager, from top to bottom, is responsible for coordinating the activities within their area of work and with other areas.
• Coordination is a Deliberate Function: Coordination is a conscious effort by managers, not something that happens automatically. Managers must deliberately coordinate efforts.

Importance Of Coordination

• Growth in Size: As an organisation grows, the number of people working also increases. Coordination is essential to integrate the efforts of a large number of diverse individuals and departments.
• Functional Differentiation: Organisations are divided into different departments (production, marketing, finance, etc.) with specialised functions. Coordination is needed to ensure that these departments work in harmony towards the common goals, avoiding conflicts or working in isolation.
• Specialisation: Modern organisations employ specialists who may have their own ways of thinking and working. Coordination is necessary to reconcile the approaches of specialists and ensure their efforts contribute to the overall objective.

Coordination is often called the 'essence' of management because without it, the different functions of management (planning, organising, etc.) cannot be performed effectively, and the organisation cannot achieve its objectives harmoniously.

Management In The Twenty-First Century

The 21st century presents new challenges and opportunities for management due to rapid changes in the global environment.

• Globalization: Businesses operate in a globalised world, facing international competition and diverse markets. Management needs to adapt to global practices, understand different cultures, and manage global supply chains.
• Technological Advancement: Rapid changes in technology (digitalization, AI, automation) require managers to constantly update their skills, adopt new tools, and manage technological disruptions. E-Business has become a major area of focus.
• Increased Competition: Competition is fierce, both domestically and internationally. Management must focus on innovation, efficiency, quality, and customer value to stay competitive.
• Changing Workforce: The workforce is becoming more diverse (gender, culture, age) and demands new management approaches focused on flexibility, work-life balance, and employee engagement.
• Emphasis on Ethics and Social Responsibility: Stakeholders are increasingly demanding ethical conduct and social responsibility from businesses. Management must integrate these aspects into their strategy and operations.
• Focus on Sustainability: Environmental concerns and the need for sustainable practices are influencing management decisions.
• Knowledge Economy: Knowledge and information are key resources. Managing knowledge workers and leveraging information effectively are critical.
• Need for Agile Management: The volatile and uncertain environment requires managers to be more flexible, adaptable, and able to make quick decisions.

Management in the 21st century is about navigating complexity, managing change, fostering innovation, upholding ethical standards, and leading diverse teams in a globally connected and rapidly evolving environment.