What is Management?
Management is the coordination and administration of tasks to achieve a goal. Such administration activities include setting the organization’s strategy and coordinating the efforts of staff to accomplish these objectives through the application of available resources. Management can also refer to the seniority structure of staff members within an organization.
In other words, Management is a technique of extracting work from others in an integrated and coordinated manner for realizing specific objectives through the productive use of material resources.
Mobilizing the physical, human, and financial resources and planning their utilization for business operations in such a manner as to reach the defined goals can be benefited management.
Meaning of Management
Let’s understand the meaning of management in detail:
Management is a very broad term that can be analyzed in different ways. The meaning of management varies depending upon the context in which it is used. A few important meanings of management are stated below:
Management as a Noun
Management as a noun refers to all those persons who are engaged in managing a business organization and have both responsibility and authority to manage an organization and for those who are responsible for the work of others at all levels.
Management as a Process
Management as a process refers to a continuous and dynamic business process. Planning, organizing, staffing, directing, coordination, communication, motivation, and control are important aspects of the modern managerial process.
Management as a Discipline
Management as a discipline refers to various principles, practices, and techniques of management of a business organization. Like Economics, Sociology, and Philosophy it is an entirely different field and new subject.
As a branch of knowledge, it denotes a code of conduct for managers and prescribes the techniques, methods, and skills for managing things. It is a young discipline.
Management as a Profession
Like medicine, law, and teaching, management is also a profession. In any profession specialized knowledge, experience, and competency are needed, likewise, these things are also needed in studying management.
Definition of Management
These are the simple and easy-to-understand definitions of management by authors:
Nature of Management
Following are the nature of management explained below:
- Art as Well as Science
- Management is an Activity
- A Continuous Process
- To Achieving Pre-determined Objectives
- Organized Activities
- A factor of Production
- Management as a System of Activity
- Management is a Discipline
- Management is a Purposeful Activity
- Aims at Maximizing Profit
- Management is a Profession
- Universal Application
- Management is Getting Things Done
- Management as a Class or a Term
- Management as a Career
- Direction and Control
- Management is Needed at All Levels
- Leadership Quality
Art as Well as Science
Management is both an art and a science. It is an art in the sense of possessing managing skills by a person. In another sense, management is a science because developing certain principles of laws that are applicable in a place where a group of activities is co-coordinated.
Management is an Activity
Management is the process of activity relating to the effective utilization of available resources for production. The term ‘resources’ includes men, materials, money, and machine in the organization.
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 for the best advantages of the organization and its objectives.
To 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.
Management is a group of organized activities. A group is formed not only in a public limited company but also in an ordinary club. All organizations have their own objectives. These objectives will be achieved only by a group of people.
These persons’ activities should be organized in a systematic way to achieve the objectives that cannot be achieved without any organized activities.
A factor of Production
The factor of production includes land, labor, capital, and entrepreneurs. Here, land refers to a place where production is carried on. Labour refers to the paid employees of the organization who are working at different levels as skilled, unskilled, semi-skilled, managers, and supervisors and like capital refers to the working capital in the form of cash, raw materials, and production.
According to Peter. F. Drucker, “whatever rapid economic and social development took place after World War II, it occurred as a result of systematic and purposeful work of developing managers and management. Development is a matter of human energies rather than of economic wealth and the generation of human energies is the task of management. Management is the mover and development is the consequence.”
Management as a System of Activity
A system may be defined as a set of component parts working as a whole. Authority may be defined as a right to command others for getting a particular course of organizational work done. Individuals are the foundation stones of management.
An individual has some goals as a member of the organization. There may be a conflict between his own goals and the management’s expectations of that individual. Such conflict is resolved by the management by ensuring the balance between individual goals and organizational expectations.
Authority is vested with many persons to take decisions and influence the behavior of the sub-ordinates. The very purpose of using authority rest with superiors as given in the organization chart and social norms. The utilization of authority is based on the personality factors of the user and the behavior of the person over whom it is used.
Management is a Discipline
The boundaries of management are not exact as those of any other physical science. It may be increased by the continuous discovery of many more aspects of business enterprise. So, the management status as a discipline is also increased in the same manner.
Management is a Purposeful Activity
Management is concerned with the achievement of the objectives of an organization. These objectives are achieved through the functions of planning, organizing, staffing, directing, controlling, and decision-making. The organizational objectives are clearly defined and explained to every employee.
Management is a Distinct Entity
Management is distinct from its functional activities. The functions have the nature of “to do” but the management has the nature of “how to get things done” A manager requires some amount of skill and knowledge to get work done.
Aims at Maximizing Profit
the available resources are properly utilized to get desired results. The results should be the maximizing profit or increasing profit by the economic function of a manager.
There are a number of decisions taken by the management every day. Decision-making arises only where there is the availability of alternative courses of action. If there is only one course of action, the need for decision-making does not arise the quality of decisions taken by the manager determines the organization’s performance.
The success or failure of an organization depends upon the degree of the right decision taken by the manager.
Management is a Profession
Management is a profession because it processes the qualities of a profession. A fund of knowledge is imparted and transferred in this profession and the same is followed by management. The established principles of management are applied in practice.
The principles and practices of management are applicable not to any particular industry alone but applicable to every type of industry. The practice of management is different from one organization to another according to its nature.
Management is Getting Things Done
A manager does not actually perform the work but he gets the things done by others. According to Koontz and O’Donnell, “Management is the art of getting things done through and with people in formally organized groups”.
Management as a Class or a Term
A class may be defined as a group of people having homogenous characteristics to achieve common objectives. Engineers and doctors are grouped as a class in society. Each and every doctor has the same objectives in life just like engineers and doctors, the management people have got similar aspirations to achieve corporate objectives.
Management as a Career
Nowadays, management is developed as a career focused on certain specializations. Financial management, cash management, portfolio management, Marketing management, Personnel management, industrial management, and Business management are some of the specializations of management. Specialists are appointed to the key posts of top management.
Direction and Control
A manager can direct his subordinates in the performance of a work and control them whenever necessary. If the available resources are not unlisted properly by him, he fails to achieve the corporate objective in the absence of direction and control. Generally, direction and control deal with the activities of human effort.
The management is not static. In the fast-developing business world, new techniques are developed and adopted by the management. Management is changed according to social change. Social change is the result of the changing business world.
Management is Needed at All Levels
The functions of management are common to all levels of the organization. The top executive performs the functions of planning, organizing, directing, controlling, and decision-making. The same functions are also performed by the lower-level supervisor.
Leadership quality is developed in the persons who are working at the level of management. According to R.C. Davis, “Management is the function of executive leadership everywhere”.
FAQ Related to Management
What is the simple meaning of management?
Management is the process of designing and maintaining an environment in which individuals work together in groups, towards efficiently accomplishing the selected aims.
What is the best definition of management?
Management is a process of the planning, organizing command, coordination, and control of technical, financial security, and accounting activities. By Louis A. Allen
What are the natures of management?
The natures of management are given below:
1. Art as Well as Science
2. Management is an Activity
3. A Continuous Process
4. To Achieving Pre-determined Objectives
5. Organized Activities
6. A factor of Production
7. Management as a System of Activity
8. Management is a Discipline
9. Management is a Purposeful Activity
10. Management is a Distinct Entity.