NATURE AND SIGNIFICANCE OF MANAGEMENT
In modern time human needs are continuously raising it is impossible to fulfill them single-handed and men cannot produce single thing by themselves. Now the question is how to overcome these problems? Through the medium of management, all the above mention problem can be solved. “Management is a process of getting things done with the aim of achieving goal effectively and efficiently
Management is an intangible goal-oriented process it helps us in achieving our goal and is applicable to all kind of institutes doing all type of activity – business or non-business. If we deduct management out of activities, the result will be zero. It always works in a group. A single person cannot manage each and everything alone for this several persons has to join their hands together. It also helps us to survive in a dynamic environment as nothing is stable in our economy so management helps us to adapt that changes
Objectives are divided into three categories
1. Organizational objective: It refers to the utilization of human and physical resources available in the organization. While fixing the objective management keeps into consideration the benefit of all related parties. This also fulfills organizations economic objective which is “growth, survival, and profit”.
2. Social objectives: It refers to the consideration of the interest of the society during managerial activity. An organization is established in society and runs with the resources provided by society. That is why it became the responsibility of every organization to take proper care of society.
3. Personal objective: It refers to the objective to be determined with respect to the employee of the organization. It is necessary to fulfill the basic needs of employees for the smooth working of the organization. Basic needs are:
i. Financial need
ii. Social need
iii. Higher-level need
Levels of management:
There are 3 levels of managements
1. Top-level: In top-level “Board of directors, CEO, CFO, etc are included. Top-level has all the authority and because of the authorities officers, they are accountable to the owners or the shareholders of the company. Their main work is to determine the objective and frame the policies and also to provide resources for further process. It also has a relation with other countries and firms.
2. Middle level: It lies between top level and lower level. Under this “Divisional head, Department heads, Functional manager, etc take place. The main functions of middle-level management are interpreting the policies framed by the top level and motivate the employees working at a lower level to work most efficiently to achieve the goals of the organizations.
3. Lower level: It includes First Line manager. They are responsible for the working condition, the safety of the workers and the quality of the product. They also help middle level in recruiting, training and promoting employees.
The essence of management:
Coordination is known as the essence of management. “Coordination is the process whereby an executive develops an orderly pattern of group efforts among his employees and secures the unity of actions in pursuit of common purpose”.
Coordination is needed at all level of the organization. If any work is done solely by one person coordination is not required because everything is done by only one person. Therefore it can be said that coordination is mainly concern with group efforts. The work at every level of management is performed by a group of people, therefore, coordination is required and if it is absent no work can be done properly everything will be messed up.
The person who tries to manage everything ends up with managing nothing
Importance of management
Anything-Management = Zero
The above mention equation tells us the importance of management very well. Here by anything, we mean any kind of activity.
Management helps us in achieving group goal as the manager provide directions to the efforts of the employees and also increase the efficiency through optimum utilization of resources. Management helps in the development of society. Manager by fulfilling their social responsibility helps in the development of society. These responsibilities include employment opportunities, prevention from pollution etc.
Management has been defined as a process. Under the management process many activities interrelated to each other are included:
1. Planning – “It refers to thinking before hands. In other words, planning is the determination of a future course of action to achieve a desirable result. Under planning, it should be ascertained that what should be done, how it should be done and by whom it should be done.
2. Organizing – “It refers to a harmonious adjustment of various parts to achieve the common objective”. In order to make the first function of management functions, a structure of roles needs to be framed and sustained. The process of creating this structure of roles is known as an organization. Planning us just to put some idea in writing, but to convert them into reality a group of people is needed and to streamline the activity of the group of people organization is required.
3. Staffing – “It refers to filling and keeping filled the post with people”. After organizing come staffing which deploys people on these posts so that job can be performed? In the view of fact that the success if the organization is how adroitly every employee works.
4. Directing – “It refers to instructing, guiding, communicating and inspiring people in the organization. It includes:
5. Controlling – “It refers to bringing the actual result closer to the desired result”.
In this a manager monitor whether the jobs are performed in accordance with the set plans or not. He also checks whether the quality and quantity of job performed are in alignment with the pre-determined parameters or not.
Management plays an important role in every organization it may be school, NGO nonprofit organization, etc. If it is absent no work will be done properly. The organization may suffer loses and lack of confidence among people. So we should follow the concept of management to overcome all our problems.
Read another class 12 business studies notes on Procedure for purchase and sale of securities in a stock exchange
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