The document discusses the nature and principles of management. It provides definitions and characteristics of management. Management is described as both an art and a science that involves planning, organizing, staffing, directing and controlling organizational resources and activities to achieve objectives. The document also outlines the functions of management, importance of management, and differences between administration and management.

1. CHAPTER 1
NATURE OF MANAGEMENT
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2. Introduction
A business develops in course of time with
complexities. Management is not only essential to
business concerns but also essential to Banks,
Schools, Colleges, Hospitals, Hotels, Religious
bodies etc. Every business unit has objectives of
its won. These objectives can be achieved with
the co-operative efforts of several personnel. As
E. Demock has rightly said “ the management is
not a matter of pressing a button, pulling a lever,
issuing orders, scanning P & L statement,
promulgating rules and regulations. Rather it is
the power to determine what shall happen to the
personalities and happiness of entire people, the
power to shape the destiny of a nation and of all
the nations which make up the world”
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3. Principle of Management
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4. Meaning of Management
Management is the art of getting things
done by a group of people with the
effective utilization of available resources.
There are various definitions given by
various management gurus but simply
management is the process consisting of
the functions of planning, organizing,
staffing, directing and controlling the
operations to achieve specified objectives
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5. Features or Characteristics of
Management
Art as well as science
Management is an activity
Management is a continuous process
Management achieving pre-determined
objectives:
Organized Activities
Management is a factor of production
Management as a system of activity
Management is a discipline
Management is a purposeful activity
Management is a distinct entity
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6. Features or Characteristics of
Management
Management aims at maximizing profit
Decision – making
Management is a profession
Universal application
Management is getting things done
Management as a class or a team
Management as a career
Direction and control
Dynamic
Management is needed at all levels
Leadership quality
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7. Characteristics of Management
Art as well as science: Management is
both an art of possessing of managing skill
by a person and a science because of
developing certain principles or laws
applicable in a place where a group of
activities are co-coordinated.
Management is an activity: It is a process
of activity relating to the effective
utilization of available resources.
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8. Characteristics of Management
Management is a continuous process: The
process of management mainly consists of
planning, organizing, directing and controlling
the resources. The resources (men and money)
of an organization should be used to the best
advantages of the organization to achieve the
objectives.
Management achieving pre-determined
objectives: The objectives of an organization
are clearly laid down. Every managerial activity
results in the achievement of objectives fixed
well in advance.
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9. Characteristics of Management
Organized Activities : Management is a group of
organized activities. It can be in the form of
limited company or a small club. All the
organizations have an objectives and these
objectives is achieved through systematic way of
organized activities.
Management is a factor of production : The factors
of production includes land, labor, capital and
entrepreneurs. Land means a place where
production is carried on. Labour refers to paid
employees either skilled, unskilled, semi-skilled,
manager, supervisor and the like. Capital refers to
the working capital in the form of cash, raw
material and finished goods and fixed capital as in
the form of plant facilities and production facilities.
These land, labour and capital can not achieve the
organizations goals. It can be achieved only by an
entrepreneur in case of small organization and by
management in case of large organizations.
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10. Characteristics of Management
Management as a system of activity :
Individuals are foundation of the management.
Management ensures the goal congruence
between individuals and organization
objectives.
Management is a discipline: The boundaries of
management are not exact like other physical
science. It may be increased by continuous
discovery of more aspects of business
enterprise.
Management is a purposeful activity:
Management is concerned with objective
achievement through planning, organizing,
staffing, directing, controlling and decision
making.
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11. Characteristics of Management
Management is a distinct entity: Management is
distinct from its functional activity. As function
is “to do” while management is to “ how to get
things done”
Management aims at maximizing profit: The
available resources are properly utilized to get
desired results.
Decision – making: Decision making arises
because there is availability courses of actions.
The quality of decision taken determines the
organization performance
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12. Characteristics of Management
Management is a profession: It posses
the qualities of a profession.
Universal application: The same
principles of management are applicable
in every type of industry only the
practice differs from one to another.
Management is getting things done:
Manager gets things done by others.
Management as a class or a team: Class
means group of people having
homogeneous characteristics to achieve
common objectives.
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13. Characteristics of Management
Management as a career: Now a day’s
management is developed as a career focused
on specialization like Finance, Marketing,
Systems, Personal etc and they are appointed
in the key posts of the management.
Direction and control: Manager directs his
subordinates in the performance whenever
necessary. Direction & control deals with the
activities of human effort.
Dynamic: The management is not static in the
ever changing fast developing business world
as new techniques are developed and adopted
by the management
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14. Characteristics of Management
Management is needed at all levels:
The functions of planning,
organizing, directing, controlling
and decision making is performed
by all the level of organization.
Leadership quality: Leadership
quality is developed in the persons
who are working in the top level
management.
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15. Functions of Management
The important functions of management are as
below
Planning
Organizing
Staffing
Directing
Co-coordinating
Motivating or actuating
Controlling
Innovation
Representation
Decision Making
Communication
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16. Importance of Management
Management meets the challenge of change
Accomplishment of group goals
Effective utilization of business
Effective functioning of business
Resource development
Sound organization structure
Management directs the organization
Integrates various interests
Stability
Innovation
Co-ordination and team spirit
Tackling problems
A tool for personality OF MANAGEMENT
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17. Luther Gullik classifies the functions
of management as
POSDCORB:
Planning, Organising, Staffing,
Directing, Co-ordinating, Reporting
and Budgeting.
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18. Importance of Management
Management meets the challenge of change: In this ever
changing business world, an efficient management saves
the business brought by the challenges.
Accomplishment of group goals: The achievement of
objectives depends upon proper planning of available
resources and quality of decision taken and control made
by the unit.
Effective utilization of business: In eight M’s man, money,
materials, machines, methods, motivation, markets and
management, management has control over remaining
M’s.
Effective functioning of business: Ability, experience,
mutual understanding, co-ordination, motivation and
supervision are the factors for effective functioning of
business. Management utilizes the abilities of workers
and fulfills their executions through motivation
techniques.
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19. Importance of Management
Resource development: Resources like men, material,
money and machines are identified and developed by the
management.
Sound organization structure: Sound organization
structure clearly defines the authority and responsibility.
Management directs the organization: Management
directs and controls the org.
Integrates various interests: Management takes steps to
integrate various interests to achieve the objectives of an
organization.
Stability: The fluctuations caused by changing policy of
the government, pressures from competitors and
changing preferences by customers in the business are
stabilized by the management.
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20. Importance of Management
Innovation: New ideas are developed by
management and implemented in the
organization.
Co-ordination and team spirit: Management
coordinates the activities of different
departments and establishes team spirit to
achieve the objectives.
Tackling problems: Good management acts as a
friend of workers while tackling problems.
A tool for personality development:
Management gives direction and training to the
workers that help them to raise their efficiency
and productivity
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21. Administration and Management
There are various opinions of writers
for the meaning of administration
and management. In general,
administration is distinguished as a
top level function while management
as a lower level functions
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22. Difference between
Administration and Management
Sr. No. Basis of Distinction Administration Management
1 Policy and Objectives Determines policy to be followed and decide Implements the policy and achieve
the objectives to be achieved. the objectives.
2 Directing of human efforts Not directly involves in the execution of plan Directly involves in the execution
and achievement of objectives. of plan and achieving
objectives.
3 Main functions Planning, organizing and staffing. Direction, motivation and control.
4 Levels of executives Top level executives (owners or board of Lower level executives( Manager,
directors) supervisor and workers)
5 Position Acts as a principal Acts as an agency
6 Knowledge Requires administrative ability more than Requires technical ability more
technical ability than administrative ability.
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