Management- Meaning, Importance & Process

Management- Meaning, Importance & Process

Management- Meaning, Importance & Process

Meaning of Management

The term management has been defined differently by eminent authorities on the subject. This is because management deals with people whose behaviour and attitude are highly unpredictable. Some authorities on the subject view management as “an art of getting things done through others.” The modern view is that “management’ is the development of people and not the direction of things.” Some other view management as a social process since the functions of management are basically concerned with people. Some of the definitions of management are discussed below.

Definitions:

1. In the words of F. W. Taylor “Management is the art of knowing what you want to do and then seeing that you do in the best and cheapest way.
2. In the words of Lawrence A. Appley, “Management is the development of people and not the direction” of things It is personnel administration”
3. In the words of Harold – Koontz, “Management is the art of getting things done through and with formally organized group”.

Importance of Management

The importance of management can be described under the following heading:

1. To establish effective policies for institutions :

   Managers have greater role in setting up the policies for the organisation. They formulated the investment policies in which the capital of the organisation could be profitably involved.

2. To establish objectives of institution:

   Setting of the objectives is also an important function of the management. This function cannot be entrusted to anyone else other than managers.

3. Achieving pre-determined objectives:

   The objectives set by the top management could be achieved only with the help of efficient managers. It is the efficient management that makes the organisational activities in line with other objectives.

4. To establish coordination between internal and external environments:

   Coordination is the important function of the management. This is because all efforts become ineffective without coordination. Internal environment constitutes the employees and officers who work with different departments. Coordination between the various departmental functions are the important function of the management. The external environment constitutes shareholders, trade unions, government and society. Coordination between these agencies are very essential.

5. Fulfilment of social responsibility:

   Management of a business has responsibilities towards serious sections of the society such as its employees, shareholders, creditors, consumers, government suppliers of goods, and other business organisations, etc. Professional managers are very well aware-about these responsibilities and ensure that they are fulfilled.

6. Better coordination between production and distribution of goods and services:

   Efficient management provides better coordination between production and distribution of goods. It establishes coordination between material, machine and men so as to contribute largely towards production. It also contributes towards efficient distribution of goods and services.

7. Coordination between inventions and existing methods :

   At the present time the scientific development based on new inventions is taking place rapidly. Efficient and effective management coordinates new changes with the existing working methods programmes, etc. to increase efficiency.

8. Provides large employment:

   Large production units create large employment opportunity.

9. Raises standard of living:

   Providing goods and services at fair prices, higher employment opportunities, good wages and incentive payments, availability of goods and services according to needs, preferences, change in fashion, etc., raise the living standards of the people in the country.

10. Removal of poverty:

    India is a country where the majority of the population is living below poverty line. Management of business can play an important role in reducing poverty by setting up industries in backward areas as well as by setting up labour intensive units under the small sector.

11. Formation of capital:

    The formation development and expansion business activities have paved the way for development of capital market in the country. The capital formation in a country is tied with various factors like larger, employment, good wages and incentives to the workers, availability of goods and services at reasonable prices, savings leading to capital formation.

12. Prosperity of the nation:

    The ultimate object of business activities of a country is to provide employment to the people, larger production so that goods and services will be available to people at reasonable prices, optimum uses of resources by participation in the government programmes for balance development of the country. These things are necessary for the property of a nation.

13. Establishment of good labour relations:

    Good relations with the workers and their union is essential for industrial peace; for which it is necessary to fulfill the minimum needs of the workers, providing them with good wages and incentives, undertaking labour welfare schemes etc. Efficient management always maintain good relations with workers.

14. To face the competition effectively:

    Today’s business operates in a competitive situation. In such a situation, a long-term survival in the business field mainly depends on its managerial effectiveness by effective utilization of resources.

15. Maximum utilization of resources of production:

    In the words of Douglas W. Foster. “Management is concerned with creating the conditions and relationships which bring about the full utilization of all resources of an enterprise.” Management is the machinery that can establish effective relationship with the various sources of production so that maximum utilization or resources could be made possible.

Process (functions) of management

“George Terry says Management is a distinct process consisting of planning, organising, actuating and controlling.”

Accordingly the process or functions of management includes the following steps:

1. Planning-

   Planning is determination of future course of action to achieve the desired goals. Planning is what to achieve and how to achieve. So planning includes determination of objectives setting rules and procedures policies, strategies, budgeting etc.

2. Organising:

   This function of management is related to developing a framework where the total work is divided into manageable components in order to facilitate achievement of goals. It is the process of dividing work into feasible tasks or duties, grouping of such duties in the form of positions, positions into departments and sections, assigning duties to individual positions and delegating authority to suitable positions so that the task is completed as per norms.

3. Directing:

   To implement planning; decisions are taken and these decisions are implemented by executive machinery. Effective execution of the decision is made possible by ‘Direction’. Direction is concerned with directing human efforts towards organisational goal achievement.

4. Controlling:

   Controlling function involves comparison of actual performance (results) with targeted achievements. If there are deviations, reasons are found out and bottlenecks are removed with new instructions to the executors.

5. Coordinating:

   In the words of Henry Fayol, “to coordinate, is to harmonise all the activities of a concern to facilitate its working and success.” The task of coordination is essentially a matter of seeing that activities are performed in proper sequence and a proper time according to set norms.

6. Motivation:

   Motivation is the act of stimulating someone to get the desired course of action or to push the right button to get the desired action. It starts with the need, satisfaction of the employees so that they may direct their energies for accomplishment of organisational goals.

Nature of Management Functions

The management functions have the following characteristics:

1. These are universal:

   The functions are universal in the sense that a manager has to perform all these functions in the organisation whether it is business organisation or non-business organization, whether it is a big business or small or medium business.

2. They have inter-related quality:

   All managerial functions can be thought of as sub-functions of each other. Thus these are contained within each other.

3. A sequence of functions is not always possible:

   It means the process does not always start with planning (in the case of ongoing organization) and end with motivation. Start and end may be at any point.

4. No fixed importance of functions:

   Which managerial function is more important and which is less not fixed. But it differs from task to task, from level to level and organization to organization. So the relative importance of the functions is identified in relation to management levels.

Conclusion

If a developing country like India wants to achieve a higher rate of growth, there is a need to pay great emphasis on the managerial revolution. It is more important than green, revolution. This is because the managerial revolution can alone help to achieve a break- through in Industrial field.

Important links

• Selection Factors Influencing Strategic Choices
• Strategic Analysis- Meaning, Types, Strengths & Weaknesses
• MNCs (Multinational Companies)- Origin, Growth, & Its Effects
• Corporate Governance- Meaning & Scope
• Conflict in Organisation- Positive & Negative Effects
• Conflict Management Technique- Conflict Resolution & Stimulation
• Classification of Attitude in Organisational Behaviour
• Personality- Meaning, Definitions & Characteristics
• Small Scale Industries- Characteristics, Objectives, Role, Problems etc.
• Government Grants & Incentives for Dev. Industries in Backward Areas

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