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Nature and Scope of Management in Business
INTRODUCTION
The basic unit of a society is the individual. But no individual can satisfy all his desires himself. Therefore, he unites with his fellow-beings and works in an organized group to achieve what he cannot achieve individually. Human beings are surrounded by organized groups of many kinds, viz, a family, a play group, a work group, a school, a business firm, a government, etc.
An organisation is a set of people working together to achieve common goals. Wherever there is an organized group of people working towards a common goal, some type of management becomes essential. No organisation can run successfully unless there is someone to manage its activities.
It is not difficult to realize the consequences of the situation in which an organized group has no management at all. If various people comprising the group are left to themselves, the result will be utter confusion. Everybody will be managing his own affairs and nobody will be responsible for any thing. Thus, it is the management which makes the people realize the objectives of the group and direct their efforts towards the achievement of these objectives.
Nature and Scope of Management in Business
Management is an essential part of any group activity. It is a primary force within the group or organisation which tends to lead it towards the group goal Management is required to plan, organize, co-ordinate and control the affairs of the organisation. It brings the human and material resources together and motivates people for the achievement of the objectives of the organisation. Without management, resources of production remain resources merely and never become production.
Nature and Scope of Management in Business
Nature and Scope of Management in Business Book
Management is a universal process in all organized, social and economic activities. Wherever there is human activity, there is management. In our real life, we see that every activity we undertake involves an element that ensures co-ordination and cohesiveness to the activity, without which our acts would be unproductive and ineffective. Like the domain of ancient philosophers all mankind is the management’s province.
DEFINITION AND CONCEPTS OF MANAGEMENT
The term ‘management’ has been used in different senses. Sometimes it refers to the process of planning, organizing, staffing, directing, coordinating and controlling, at other times it is used to describe it as a function of managing people. It is also referred to as a body of knowledge, a practice and discipline. There are some who describe management as a technique of leadership and decision- making while some others have analyzed management as an economic resource, a factor of production or a system of authority.
Nature and Scope of Management in Business
Various definitions of management are discussed as follows:
(A) Art of Getting Things Done
Mary Parker Follett, “Management is the art of getting things done through others.” Follett describes management as an art of directing the activities of other persons for reaching enterprise goals. It also suggests that a manager carries only a directing function.
Harold Koontz, “Management is the art of getting things done through and with people in formally organized groups.” Koontz has emphasized that management is getting the work done with the co-operation of people working in the organisation.
J.D. Mooney and A.C. Railey, “Management is the art of directing and inspiring people.” Management not only directs but motivates people in the organisation for getting their best for obtaining objectives.
As per the shore mentioned definitions, management is the art of getting things done through people who may be managers or non managers. At the level of chief executive, the work is got done through functional managers, at middle level the things are implemented through supervisors lower level of management through workers. Human and technical skills play an important role be getting things done.
Nature and Scope of Management in Business
These definitions represent the traditional view point of management while workers are treated as a factor of production only. They are paid wages for doing their work. This view point suffers from the following deficiencies.
(i) This concept does not specify what type of functions are required to be performed for getting things done from others.
ii) Management is treated as an art. These days management has also acquired the status of science.
(iii) The workers are treated as means of getting results. The needs and aspirations of workers are not taken into account.
Management is much more than just getting the things done through others. Management may be a technique for getting things done through others by satisfying their needs and helping them grow. Harold Kosetz emphasized the attainment of business goals with the co-operation of people working in the organisation.
Nature and Scope of Management in Business
(B) Management As A Process
Some authors view management as a process because it involves a number of functions Management refers to all that a manager does. Various functions which are performed by managers to make the efficient use of the available material and human resources so as to achieve the desired objectives are summed up as management. Thus, the functions of planning, organizing, staffing, directing, coordinating and controlling fall under the process of management.
Nature and Scope of Management in Business
Henry Fayol, “To manage is to forecast and plan, to organize, to command, to co-ordinate, and to control. Fayol described management as a process of five functions such as planning, organizing, commanding, coordinating and controlling. Modern authors, however, do not view co ordination as a separate function of management.
George R. Terry, “Management is a distinct process consisting of activities of planning, organizing, actuating and controlling, performed to determine and accomplish stated objectives with the use of human beings and other resources.” Though Terry has described four functions to be a part of management process but managerial functions are classified into five categories.
James L. Lundy, “Management is principally the task of planning, coordinating, motivating and controlling the efforts of others towards a specific objective. “Lundy has also specified some functions which management has to perform for achieving organizational goals.
Louis Allen, “Management is what a manager does.” This is a broad definition linking all the activities of the manager to the concept of management. Whatever work is undertaken by a manager forms a part of management. Above definitions associate management with the functions undertaken for running a business.
Nature and Scope of Management in Business
There may be a difference as to what functions are required to be taken up by the management but functions such as planning, organizing, staffing, directing and controlling form the process of management. These functions are continuously taken up. On the completion of last function, the first function starts again. The functions of management are interdependent and interlinked. In order to achieve the objectives, a manager has to perform various functions simultaneously:
Nature and Scope of Management in Business
(C) Management As A Discipline
Sometimes the term “management’ is used to connote neither the activity nor the personnel who performs it, but as a body of knowledge, a practice and a discipline. In this sense, management
rs to the principles and practices of management as a object of study. Management is taught as pecolod branch of knowledge in educational institutions. It has drawn heavily from Psychology, logy, Anthropology etc. A person acquiring degree or diploma in management can try for a managerial job.
Nature and Scope of Management in Business
Management is treated both as an art as well as science. An art is often regarded as the systematic application of skill or knowledge in effecting accomplishment of results. In management has to use personal skill and knowledge in solving many complicated problems to achieve enterprise objectives.
Management is regarded as a science because it has developed certain principles, generalizations and techniques which have more or less universal application. So management is a study of a specific discipline. When one says that a particular person is in management stream then it is assumed that he is studying a particular field of learning.
Nature and Scope of Management in Business
(D) Art And Science of Decision-Making and Leadership
Decision-making and guiding others is considered an important element of management. A manager has to take various decisions every day for properly running an enterprise.
Donald J. Clough, “Management is the art and science of decision-making and leadership.” The author views management as an art and science of decision-making The quality of decisions acermines the performance of a manager. He has also to provide leadership to subordinates for motivating them to undertake their work.
Rose Moore, “Management means decision-making.” Decision-making cannot be the only function of management even though it is very important.
Nature and Scope of Management in Business
Stanley Vance, “Management is simply the process of decision-making and control over the action of human beings for the express purpose of attaining pre-determined goals.” Stanley Vance has emphasized decision-making and control over the actions of employees for reaching the enterprise goals.
Association of Mechanical Engineers, U.S.A., “Management is the art and science of preparing, organizing and directing human efforts applied to control the forces and utilize the of nature for the benefit of man.” The association has given a wide definition where it has emphasized that management controls and directs human efforts for utilizing natural resources lie the benefit of man.
Nature and Scope of Management in Business
The above mentioned definitions describe management as a science and art of decision making and controlling the activities of employees for obtaining enterprise objectives.
Nature and Scope of Management in Business
(E) An Art of Increasing Productivity
Some authors are of the view that the science of management is used to increase productivity of the enterprise.
John F. Mee, “Management may be defined as the art of securing maximum prosperity with a minimum of effort so as to secure maximum prosperity and happiness for both employees and employer and give public the best possible service.”
F.W. Taylor, “Management is the art of knowing what you want to do….in the best and cheapest way,”
Management is the art of securing maximum productivity at the minimum of cost so that it helps employers, employees and public in general. Public is also a stake holder in business, it should also benefit from good performance of business.
Nature and Scope of Management in Business
(F) Integration of Efforts
Management makes use of human and physical resources for the benefit of the enterprise. Keith and Gubellini, “Management is the force that integrates men and physical plant into un effective operating unit. “Management integrates physical and human resources for operating the manufacturing process in a better way.
Nature and Scope of Management in Business
Barry M. Richman, “Management entails the co-ordination of human and material resources towards the achievement of organizational objectives as well as the organisation of the productive functions essential for achieving stated or accepted economic goals.” Management aims to co-ordinate and integrate various resources in the organisation for achieving enterprise objectives.
The thrust of above mentioned definitions is that integration and co-ordination of various factors of production is essential for running a business properly and this function is undertaken by management.
Nature and Scope of Management in Business
(G) Management As A Group of Managers
The term management is frequently used to denote a group of managerial personnel. When one says that management of such and such company is efficient, he refers to the group of persons who are looking after the working of the enterprise. These persons individually are called managers “Management is the body or group of people which performs certain managerial functions for the accomplishment of pre-determined goals.”
Nature and Scope of Management in Business
All managers perform managerial functions of palming, organizing, staffing, directing and controlling. These persons collectively are called ‘body of managerial personnel.” In actual practice the term ‘management” is used to denote top managements of the organisation. Top management is mainly concerned with determination of objectives, strategic planning, policy formulation and overall control of the organisation.
Nature and Scope of Management in Business
