nature and significance of management

21
Nature and Significance of Management Akhila Ramesh, M.Com; MBA

Upload: ars-talent-academy

Post on 22-Mar-2017

128 views

Category:

Presentations & Public Speaking


7 download

TRANSCRIPT

Page 1: Nature and significance of management

Nature and Significance of

Management

Akhila Ramesh, M.Com; MBA

Page 2: Nature and significance of management

Learning Objective

• Describe the charateristics of management and its important function

• Explain the nature of management as an art, science and profession

• Explain the functions of management

• Appreciate the nature and importance of coordination

After studying this chapter you should be able to

Page 3: Nature and significance of management

MANAGEMENT CONCEPT

Essential for all organisations – big or small / profit or non-profit / services or manufacturing

Consists of a series of inter-related functions performed by all managers

Management is the process of getting things done with the aim of achieving goals effectively & efficiently

Page 4: Nature and significance of management

Effectiveness Vs Efficiency

Two sides of a coin

Achieving goals effectiveness

With minimum resources efficiency

High efficiency + high effectiveness aim of all managers

Inefficiency + ineffectiveness poor management

Page 5: Nature and significance of management

Characteristics of Management

Management is a Goal oriented process

• Different organisations have different goals

• Goals should be simple and clearly stated

• Unites the efforts of all individuals in achieving the goals

Management is all pervasive

• Common to all organisation types – economic / social / political

• Common to all departments within the organisation

Management is multi-dimensional

• Management of work – quantum of work translated in to goals to be achieved and assigns means to achieve the same

• Management of people – employees as individuals / individuals as group of people; making their strengths effective and their weaknesses irrelevant

• Management of operations – production process – flow of raw materials – production technology – desired output for consumption – interlinked with work and people

Page 6: Nature and significance of management

Management is a continuous process

• Continuous, composite separate functions like planning organising, staffing, directing & controlling

Management is a group activity

• Collection of diverse individuals with different needs

• Coordination of individual efforts into achieving common organisational goal

Management is a dynamic process

• A dynamic function – has to adapt itself to changing environment

• External environment – social, economic and political factors

Management is an intangible force

• Cannot be seen but its presence can be felt

• Effect can be seen – where targets are met, employees are happy, orderliness everywhere instead of chaos

Page 7: Nature and significance of management

Objectives

Organisational

• Fulfill variety of objectives in all areas considering the interest of all stakeholders

• Main objective to utilise human and material resource to the maximum possible advantage – economic objective like survival, profit & growth

• In order to survive – to earn enough revenue to cover the expenses / cost

• Profit – essential for survival as well as covering the risks of business

• Growth – to remain in the market, a business should utilise opportunities and grow. Growth can be measured in terms of increase in sales volume, number of employees or capital investment

Page 8: Nature and significance of management

Social

• Creation of benefit for the society

• Consistently creating economic values for all the segments of the society like

• Environmental friendly production methods

• Employment opportunities for the disadvantaged sections

• Providing basic amenities like schools, creches for the employees

Personal

• Organisations are made up of people with different personalities, background, experiences & objectives

• Fullfilling needs

• Financial – salaries, perks etc.,

• Social – peer recognition

• Personal growth and development

Management must reconcile personal objectives with

organisational objectives for harmony in the organisation

Page 9: Nature and significance of management

Importance of Management

Helps in achieving group goals

Increases efficiency

Creates dynamic organisation

Helps in achieving personal objectives

Helps in development of society

Page 10: Nature and significance of management

Nature of Management Management is as old as civilisation

Differentiating factor between civilised and uncivilised society

Earliest practices were a set of rules and regulations grew out of experiences of government and commercial organisations

Development of trade and commerce led to development of management principles

Study of management evolved along with modern organisations

Grown into a dynamic subject with its own special charateristics

Is Management a Science or an art or both?

Page 11: Nature and significance of management

Management as science

SCIENCE MANAGEMENT

Systematised body of knowledge – based on cause and effect relationship

• Has its own theory and principles which have been developed over a period of time

• Draws principles from other disciplines like economics, sociology, psychology etc

Principles based on Experimentation • Principles have evolved after repeated experimentation and observation in different type of organisation

• Can be called “Inexact “ science because it deals with human beings which cannot be predicted or replicated

Universal validity and application • Since management is inexact science, their application is not universal. They have to be modified according to the situation.

• But these principles provide basic standardised techniques which can be used by all for training and development purpose.

Hence it can be concluded that Management is an “Inexact” Science

Page 12: Nature and significance of management

Management as an art

ART MANAGEMENT

Existence of theoretical knowledge

• Existence of theoretical knowledge • Lots of literature available based on study,

observations and experience • A good manager practices the art of management

based on the materials available in various areas

Personalized application • A good manager works through a combination of practice , creativity, imagination, initiative and innovation

Based on practice and creativity

• One can achieve perfection after long practice and based on his own creativity

• Involvement in the activities of the organisation, study of critical situation and formulation of theories unique to the situation in concern

All management practices are based on the same set of principles. Distinguishing factor between a successful and less successful manager is the

level of application of these principles

Page 13: Nature and significance of management

Management as a profession

PROFESSION MANAGEMENT

Well defined body of knowledge

• Management has a systematic body of knowledge comprising well defined principles

• Knowledge can be acquired through different colleges professional institutes and exclusive management institutes

• Variety of books and journals are available

Restricted entry • There is no restriction. Anyone can become a manager irrespective of his educational qualification

Professional association • AIMA – All India Management Association • But no compulsion for managers to become members of

such association

Ethical code of conduct • There is no specified ethical code of conduct

Service motive • Basic purpose of business is to achieve its goal – profit maximisation

• In modern parlance, along with profit maximisation, an organisation also has to serve the society where it is located – providing basic amenities, education, etc

Page 14: Nature and significance of management

Levels of Management

Top Management

•President, VP, Chairman, MD, CEO, CFO, CMO, COO

Middle Management

•Functional managers like, HR, Finance, Production, Plant, Marketing, Operations

Operational / Supervisory Management

Page 15: Nature and significance of management

Functions

• Coordinating the activities of different departments • Welfare & survival of the organisation • Overall goals and strategies for the organisation • Framing policies • Responsible for the activities of the business

• Interpret the policies framed by the organisation • Ensure that their department has required personnel • Assign necessary duties and responsibilities • Motivate them for higher productivity to achieve desired objectives • Cooperate with other departments for smooth functioning of the

organisation

• Interact with the actual workforce and communicate the instructions of the middle management

• directly oversee the work of the personnel

• Quality maintenance, minimised wastage of material etc.,

• Maintains discipline and communicate workers grievances

• Maintains the work area and working conditions

Page 16: Nature and significance of management

Functions of Management

Planning

Organising

Staffing Directing

Controlling

• Primary function of Management • Where we are to where we want to go • Cannot prevent problems but predict

them & prepare contingency plans

• Assigning duties, grouping tasks, establishing authority & allocating resources

• Who, what & where • Different type of

organisations require different organisation structures

• Monitoring performance towards attainment of goals

• Establishing standards of performance, measuring current performance, comparing and taking corrective measures

• Leading, influencing & motivating employees

• Effective commnication techniques which will create conducive environment

• Praise & criticism – to bring out the best in the employees

• Finding the right people for the right job • Training & development, career planning,

compensation etc • Human resource function of management

Page 17: Nature and significance of management

Coordination – the essence of management

Synchronising the activities of various departments

Basic force binding all the functions of management

Process of coordinating begins at the planning stage itself

Coordination therefore involves synchronisation of the different actions or efforts of various units of the organization. This provides the requisite

amount, quality, timing and sequence of efforts which ensures that planned objectives are met with minimum conflict

Page 18: Nature and significance of management

Characteristics

Integrates group efforts

Ensures unity of action

Is a continuo

us process

All pervasive function

Responsibility of

all managers

Deliberate

function

Page 19: Nature and significance of management

Importance

Growth in size

• As the company grows, number of employees increase

• Each individual differ in habit of work, effort, background, approaches, relationship with others etc.,

• Each will have their own goals and aspirations

Functional differentiation

• Functions of an organisation is divided into department, divisions / sections

• Each department will have their own objectives

• All departments are interdependent in terms of work and information

• Coordination links all the departments to attain common objective

Specialisation

• High degree of specialisation in modern organisations

• Ego clashes arise among the specialists based on their professional criteria

• Coordination is required by an independent person to reconcile the differences in approach, interest or opinions

Page 20: Nature and significance of management

Coordination vs Cooperation

Basis Coordination Cooperation

Meaning Process of achieving unity of action among interdependent activities Implementing plans harmoniously for the achievement of desired goals

Voluntary efforts of individuals to work together

Nature Does not arise automatically Conscious and deliberate action of manager to provide unity of action

Willingness of the employees to help each other voluntarily

Requirement

Essential for achieving organisational goal where group of people are working together

Arises out of desire of people to work together

Scope Includes cooperation and has wider scope

Narrow scope. Helps towards establishing coordination

Page 21: Nature and significance of management