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Chap

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Nature of
Manageme
nt
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MANAGEMENT text and cases, V S P Rao, V Hari Krishna

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Nature of Manageme

Management is the force that unifies human as well as non-human


resources in the service of organisational goals. It is a process of
getting results with and through people.

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MANAGEMENT text and cases, V S P Rao, V Hari Krishna

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Nature of Manageme

What is Management?
It is not easy to define the term management. There are certain genuine
reasons for this :
(i) Management is a vast subject. It is very extensive. It is, therefore,
not possible to put all the essential features of management in a
single formula.
(ii) Management is concerned with human beings, who are
behaviourally highly unpredictable.
(iii) Management is a young developing discipline whose concepts
are continuously changing.

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MANAGEMENT text and cases, V S P Rao, V Hari Krishna

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Nature of Manageme

Management As A Noun
In popular usage, management refers to a group of people who direct
the activities of other people and material resources towards the
attainment of predetermined goals.

Management as a Process
Management as a process refers to a series of inter-related functions,
such as planning, organising, staffing, leading and controlling.

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MANAGEMENT text and cases, V S P Rao, V Hari Krishna

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Nature of Manageme

Management as a Group/Team
The term management is used to denote the persons who manage the
affairs of an organisation. Thus, as a group of persons, management
includes all those who are responsible for making decisions and
supervising the work of others.

Management as a Discipline
As a discipline, management is a specialised branch of knowledge
which involves the study of certain principles and practices.

Management as an Activity
Management refers to a separate class of activities which are
performed by managers. Managerial activity consists of planning,
organising, staffing, directing and controlling.

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MANAGEMENT text and cases, V S P Rao, V Hari Krishna

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Nature of Manageme

Scope of Management
The scope of management is very wide. Basically, it refers to three
distinct ideas. Management may be understood as
(i)

an economic resource,

(ii)

a system of authority, and

(iii) a class or elite.

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MANAGEMENT text and cases, V S P Rao, V Hari Krishna

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Nature of Manageme

Characteristics of Management
The various interpretations of management emphasise three things: (i)
management is a process and involves a series of continuing and related
activities, (ii) it tries to concentrate on reaching organisational goals, (iii)
and it reaches these goals by working with and through other people and
other organisational resources.
The important features which reveal the nature of management may be
stated thus:

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Management is intangible

Management is goal-oriented

Management is universal

Management is a social process

Management is a group activity

Management is a system of authority

Management is an activity

Cont

MANAGEMENT text and cases, V S P Rao, V Hari Krishna

Copyright 2002, Authors

Excel Books

Nature of Manageme

Management is dynamic

Management is a science as well as an art

Management is multidisciplinary

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MANAGEMENT text and cases, V S P Rao, V Hari Krishna

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Nature of Manageme

Importance of Management
The importance of management can be understood from the following
points:

Optimum use of resources

Effective leadership and motivation

Establishes sound industrial relations

Achievement of goals

Change and growth

Improves standard of living

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MANAGEMENT text and cases, V S P Rao, V Hari Krishna

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Nature of Manageme

Distinction between Administration and Management


Point of distinction

Administration

Management

Nature

Thinking function (what is to be


done and when).

Doing function (who should do it


and how).

Scope

Determines broad objectives


and policies.

Implements plans and achieves


goals through people.

Level

Top level function.

Middle and lower level function.

Skills needed

Conceptual and human skills.

Technical and human skills.

Represents

Owners who invest capital and


receive profits.

Paid individuals who work for


remuneration.

Usage

Mostly in government, military,


educational, social and cultural
organisations.

Mostly in business
organisations.

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MANAGEMENT text and cases, V S P Rao, V Hari Krishna

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Nature of Manageme

Principles of Management
Nature of management principles
Management principles change with the change in the environment in
which the organisation exists.

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MANAGEMENT text and cases, V S P Rao, V Hari Krishna

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Nature of Manageme

Why Management Principles?


By means of principles of management, a manager can avoid
fundamental mistakes in his job and foretell the results of his actions
with confidence. Principles help in the following ways:

To increase efficiency

To crystallise the nature of management

To improve research in management

To attain social goals

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MANAGEMENT text and cases, V S P Rao, V Hari Krishna

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Nature of Manageme

What are principles of management?


Fayols principles:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
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Division of work
Authority
Discipline
Unity of command
Unity of direction
Subordination of individual interests to the general interest
Remuneration
Centralisation
Scalar chain
Order
Equity
Stability and tenure of personnel
Initiative
Cont
Esprit de corps
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MANAGEMENT text and cases, V S P Rao, V Hari Krishna

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Nature of Manageme

Mooney and Reileys staff principle

Taylors principle of management by exception

Webers principles

Likerts principle of supportive relationship

Human relations

Modern organisation theories and principles of management

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MANAGEMENT text and cases, V S P Rao, V Hari Krishna

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Nature of Manageme

Universality of Management Principles


Universality of management suggests that the manager uses the same
managerial skills and principles in each managerial position held in
various organisations. Universality implies transferability of managerial
skills across industries, countries. It means that management is generic in
content and is applicable to all types of organisations.

Arguments for Universality

Same functions
Universal principles
Fundamentals are same, the techniques employed and practices
followed are different
Practical evidence

Arguments Against Universality

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Complete substitutability is impossible


Organisational philosophies differ
Universality of principles: a ridiculous statement?
Management is a product of the culture
MANAGEMENT text and cases, V S P Rao, V Hari Krishna

Copyright 2002, Authors

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