Management is the art of getting things done from various people by effectively utilizing the available resources.

1. Welingkar’s Distance Learning Division
CHAPTER-01
NATURE OF MANAGEMENT
We Learn – A Continuous Learning Forum

2. Welingkar’s Distance Learning Division
Introduction
 A business develops in course of time with complexities.
Management is not only essential to business concerns but
also essential to Banks, 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”
We Learn – A Continuous Learning Forum

3. Welingkar’s Distance Learning Division
A team is not made only of individuals.
A team is made of a common goal and
a common ideal. A common cause,
and a motivating force is
the spirit of the team.
We Learn – A Continuous Learning Forum

4. Welingkar’s Distance Learning Division
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
We Learn – A Continuous Learning Forum

5. Welingkar’s Distance Learning Division
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
We Learn – A Continuous Learning Forum

6. Welingkar’s Distance Learning Division
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
We Learn – A Continuous Learning Forum

7. Welingkar’s Distance Learning Division
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.
We Learn – A Continuous Learning Forum

8. Welingkar’s Distance Learning Division
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.
We Learn – A Continuous Learning Forum

9. Welingkar’s Distance Learning Division
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 organizations goals. It can be achieved only by
an entrepreneur in case of small organization and by management in case
of large organizations.
We Learn – A Continuous Learning Forum

10. Welingkar’s Distance Learning Division
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.
We Learn – A Continuous Learning Forum

11. Welingkar’s Distance Learning Division
Characteristics of Management
 Management is a distinct entity: Management is a 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
We Learn – A Continuous Learning Forum

12. Welingkar’s Distance Learning Division
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.
We Learn – A Continuous Learning Forum

13. Welingkar’s Distance Learning Division
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
We Learn – A Continuous Learning Forum

14. Welingkar’s Distance Learning Division
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.
We Learn – A Continuous Learning Forum

15. Welingkar’s Distance Learning Division
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
We Learn – A Continuous Learning Forum

16. Welingkar’s Distance Learning Division
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 development
We Learn – A Continuous Learning Forum

17. Welingkar’s Distance Learning Division
 Luther Gullik classifies the functions of
management as

 POSDCORB:
 Planning, Organising, Staffing, , Directing, Co-
ordinating, Reporting and Budgeting.
We Learn – A Continuous Learning Forum

18. Welingkar’s Distance Learning Division
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.
We Learn – A Continuous Learning Forum

19. Welingkar’s Distance Learning Division
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.
We Learn – A Continuous Learning Forum

20. Welingkar’s Distance Learning Division
Importance of Management
 Innovation: New ideas are developed by management and
implemented in the organization.
 Co-ordination and team spirit: Management coordination 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
We Learn – A Continuous Learning Forum

21. Welingkar’s Distance Learning Division
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
We Learn – A Continuous Learning Forum

22. Welingkar’s Distance Learning Division
Difference between Administration
We Learn – A Continuous Learning Forum
Sr.
No.
Basis of
Distinction
Administration Management
1 Policy and
Objectives
Determines policy to be
followed and decide the
objective to be achieved.
Implements the policy and achieve
the objectives.
2 Directing of
human efforts
Not directly involves in the
execution of plan and
achievement of objectives
Directly involves in the execution of
plan and achieving objectives.
3 Main functions Planning, organizing and staffing Directions, motivation and control.
4 Levels of
executives
Top level executives (owners or
board of directors)
Lower level executives ( Manager,
supervisor and workers)
5 Position Acts as a principal Acts as an agency
6 Knowledge Requires administrative ability
more than technical ability
Requires technical ability more than
administrative ability.