Chapter 2 Nature of Management

Chapter Index

S. No

Reference

No

Particulars

Slide

From-To

1 Learning Objectives 3

2 Topic 1 Concept of Management 4-9

3 Topic 2 Functions of Management 10

4 Topic 3 Role of Management in Society 11-13

Topic 4 Distinction Between Management and

Administration 14-15

6 Topic 5 Roles and Responsibilities of Managers 16-18

Learning Objectives

Explain the nature and purpose of management

List the functions of management

State the role of management in society

Compare and contrast management with administration

Explain the roles and responsibilities of managers

Concept of Management

Management is a process of creating and maintaining an environment where

individuals work together to achieve certain goals by using the available

resources optimally.

Management can be defined from different viewpoints, which are:

Different Viewpoints

Traditional Modern 7 Ms 4 Ps

Some definitions of management given by experts are as follows:

In the words of E.F.L Breach, Management is

concerned with seeing that the job gets done; its tasks

all centre on planning and guiding the operations that

are going on in the enterprise.

Peter. F. Drucker the renowned management expert

has defined management as the substitution of thought

for brawn and muscle, of knowledge for folklore and

superstition, and of cooperation for force.

As per George R. Terry, Management is a process

consisting of planning, organising, actuating and

controlling, performed to determine and accomplish the

objectives by the use of people and resources.

Some of the characteristics of management highlighting its nature are:

Management is goal-oriented and purposive

Management is universal

Management is continuous

Management is a group activity

Purpose of Management

Achievement of goals and objectives

Optimum utilisation of resources

Cost minimisation

Survival and growth

Management as a Science

Management is called science as it has its own principles that can

be applied everywhere but it is not like natural or exact science

but it is more like behavioural science.

Webster’s College Dictionary defines science as any skill or technique that reflects a precise application of facts or a principle.

Thus, management is also called science as it involves the

application of systematic methods of enquiry and analysis of

information to take critical business decisions.

Viewpoints on management as art by some management experts.

Management as an Art

Henry Mintzberg: He stated that management is an art as managers

do not necessarily have routine behaviour. Instead, they use their own

social and political skills to solve problems and determine an

appropriate course of action

David E. Lilienthal: According to him, managers are artists as they

need to respond differently to different employees and motivate them

in order to get the work done by them.

Peter Drucker: He termed management as liberal art as it involves the

practice and application of knowledge, wisdom, and leadership.

Functions of Management

The five management functions that are common in every organization are:

Com

mon

Ma

na

gem

en

t F

un

ctio

ns Planning

Organising

Staffing

Directing

Controlling

Role of Management in Society

Some objectives of the society that management has to meet are:

Dealing fairly with suppliers, dealers, competitors, and other third

parties.

Providing good quality products at fair prices to consumers.

Making timely payment of taxes to the government.

Conserving the biological environment and natural resources.

Preserving the ethical values of the society.

Social responsibility, also called Corporate Social Responsibility (CSR), refers to

the duties and obligations of an organisation towards welfare of the society.

The activities of a business should not harm, rather they should protect the

interests of the society. For this, the actions need to be taken by businesses are:

Aligning social goals with corporate goals

Presenting progress reports in the area of social

responsibility

Judging social performance by applying various

approaches

CSR practices of a business are generally focused on its internal and external

stakeholders. The social responsibility of a business towards different interest groups

are:

•Responsibility towards shareholders

•Responsibility towards customers

•Responsibility towards employees

•Responsibility towards community and society

•Responsibility towards government

•Responsibility towards other stakeholders

Distinction Between Management and Administration

Administration is different from management

Prof. Dalton E. McFarland has given five

characteristics of a profession:

1. The existence of a body of specialised knowledge

and techniques

2. A formalised method acquiring training and

experience

3. Establishment of a representative organisation

with professionalism as its goal

4. Ethical codes of conduct

5. Due regard for the priority of a service over the

desire for monetary reward

Management is a Profession

Roles and Responsibilities of Managers

The manager acts as a bridge between senior management for translating higher-

level strategies and goals into operating plans that drive the business. A manager

performs a number of functions including:

Engaging and training of new staff

Providing training, coaching and developing existing employees

Conducting timely performance evaluations

Translating corporate goals into functional and individual goals

Keep monitoring and controlling expenses and budgets

Tracking and reporting scorecard results to senior management

Making plans and setting goals for future.

On the basis of the position in the organisation, various types of managers are:

Types of Managers

Types of Managers

Top Managers

Middle Mangers

Lower Managers

Styles of Managers

Styles of Managers

Directive managerial style

Paternalistic managerial style

Democratic managerial style

Authoritative managerial style