Principles of Management

The following are the topics involved in Nature and Significance of Management chapter:

Management Definition: Management is defined as the process of planning, organizing and controlling of organization operations to achieve the objects of an organization in effective and efficient manner.

->Types of concepts in Management: There are two types

i) Traditional concept: To achieve the organization goals through others.

ii) Modern Concept: To achieve the organization goals efficiently and effectively with the aim.

->Characteristics of Management:

i) Goal-Oriented Process: Organisation existence depends on objectives and management is the process of combining efforts of every individual to achieve the goal.

ii)All pervasive: the Management is applicable to all types of an organization either small  or big and profit or non-profit

iii) Multidimensional:

Management has multiple activities. Mainly,

•  Management of house
•  Management of people
•  Management of operations

iv)Continuous process: Management is a continuous process because it continuously performed interrelated functions

iv)Group Activity: Management is a group activity because For Every Individual in an organization wants to contribute their efforts to achieve the organizational goals.

v) Intangible: we cannot touch the management but we can felt by the organization functions

->Management objectives: objectives are classified into social, organizational and personal

i) Organisational objectives
Survival: it exists for a long time in the competitive market.
Profit: it is used for successfully continued operations.
Growth: It measurement of a successful organization.

ii) Social objectives: It involves the creation of benefit for society
iii) Personal objectives:  objectives of the good salary, promotion, social recognition, healthy working conditions of the employee.

->Management Importance:

•  Helps to achieve Group goals: it integrates the objectives of individuals
•  Increases efficiency: It increases the productivity with help of proper planning, organizing and directing of an organization.
•  Creates a Dynamic organization: the manager keeps changes in an organization in a dynamic way.
• Helps to achieve Personal objectives: To achieve personal objectives through motivation and leadership.
•  Helps in Development of society:

It creates employment, generates new technology by providing good quality products and services to help in the development of society.

->Management is an Art:

•  It is based on practice and creativity
•  The existence of Theoretical knowledge is available from the lots of literature

->Management as a Science:

It is systematized body of knowledge and principles are based on experimentation.

->Management as a profession:

It does not match with a complete criterion of a profession but it has some features of the profession.

->Management Levels:

•  Top Management: It consists of senior-most executives referred as a chairman, Chief  executive officer, Directors
•  Middle management: these are under top level management
•  Operational Management: they are foremen and supervisors.

->Management Functions:

•  Planning: it is the process of how to develop sales to achieve the organizational objectives.
•  Organization: It is the process of organizing grouping tasks and allocating resources.
•  Staffing:  It implies right people
•  Directing: It involves leading, influencing, motivating employees
•  Controlling: it is the process of follow up actions for the performance

->Coordination: Coordination is combination of all activities

Such as purchase, production, sales, finance to ensure the working of an organization.

i) Characteristics :

• Integrates group efforts
• Ensures units of action
• Continuous process
• Pervasive function
• Responsibility of all managers

ii) Importance:

• Growth size: when there is growth automatically increases the employment of an organization
• Functional Differentiation: In every organization have separate departments and different goals. When linking these activities is achieved by only coordination.
• Specialisation: For coordination different specialists are required to achieve the different approaches and judgments etc.