The Nature of Management

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

  1. Universal Process
  2. Factor of Production
  3. Goal-Oriented
  4. Supreme in Thought and Action
  5. Group Activity
  6. Dynamic Function
  7. Social Science
  8. Important Organ of Society
  9. System of Authority
  10. Profession
  11. Process

Lets, explain each one;

  • Universal Process

Wherever there is human activity, there is management. Without efficient management, the objectives of the company can not be achieved.

  • Factor of Production

Qualified and efficient managers are essential to the utilization of labor and capital.

  • Goal-Oriented

The most important goal of all management activities is to accomplish the objectives of an enterprise. The goals should be realistic and attainable. The success of management is measured by the extent to which the established goals one achieved. Thus, management is purposeful.

  • Supreme in Thought and Action

Managers set realizable objectives and then mastermind action on all fronts to accomplish them. For this, they require full support form middle and lower levels of management.

  • Group Activity

All human and physical resources should be efficiently coordinated to attain maximum levels of combined productivity. Without coordination, no work would accomplish and there would be chaos and retention.

  • Dynamic Function

Management should be equipped to face the changes in the business environment brought about by economic, social, political, technological or human factors. They must be adequate training so that they can enable them to perform well even in critical situations.

  • Social Science

All individuals that a manager deals with, have different levels of sensitivity, understanding, and dynamism.

  • Important Organ of Society

Society influences managerial action and managerial actions influence society. Its manager’s responsibility that they should also contribute towards the society by organizing charity functions, sports competitions, a donation to NGO’s, etc.

  • System of Authority

Well-defined lines of command, the delegation of suitable authority and responsibility at all levels of decision-making. This is necessary so that each individual should what is expected from him and to whom he needs to report.

  • Profession

Managers need to possess managerial knowledge and training and have to conform to a recognized code of conduct and remain conscious of their social and human obligations.

  • Process

The management process comprises a series of actions or operations conducted towards an end.

Scope of Management

Although it is difficult to precisely define the scope of management, yet the following areas are included in it:

  • Subject-Matter of Management

Planning, organizing, directing, coordinating and controlling are the activities included in the subject matter of management.

  • Functional Areas of Management

These include:

Financial Management includes accounting, budgetary control, quality control, financial planning and managing the overall finances of an organization.

Personnel Management includes recruitment, training, transfer promotion, demotion, retirement, termination, labor-welfare and social security industrial relations.

Purchasing management includes inviting tenders for raw materials, placing orders, entering into contracts and materials control.

Production Management includes production planning, production control techniques, quality control and inspection and time and motion studies.

Maintenance Management involves proper care and maintenance of the buildings, plants, and machinery.

Transport Management includes packing, warehousing and transportation by rail, road, and air.

Distribution Management includes marketing, market research, price-determination, taking market­ risk and advertising, publicity and sales promotion.

Office Management includes activities to properly manage the layout, staffing, and equipment of the office.

Development Management involves experimentation and research of production techniques, markets, etc.

  • Management is an Inter-Disciplinary Approach

For the correct implementation of the management, it is important to have knowledge of commerce, economics, sociology, psychology, and mathematics.

  • Universal Application

The principles of management can be applied to all types of organizations irrespective of the nature of tasks that they perform.

  •  Essentials of Management

Three essentials of management are:

  • Scientific method
  • Human relations
  • Quantitative technique
  •  Modern Management is an Agent of Change

The management techniques can be modified by proper research and development to improve the performance of an organization.

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