Meaning of Management : No organization can run successfully unless there is

management.

Harold Knoots says, “Management is the art of getting things done through and with
people.”

It indicates that management is the essential part of any group activity.

It is important activity to control/manage men, machines, material and money in

direction towards predetermined objectives.

Management is concerned with planning, policy formulation and co-ordinating

functions.

It also includes quality control of product.

According to E.F.L. Brech “Management is the process of controlling the whole

productive machinery.”

So, management is an important factor in the business.

It is considered as important as brain in human body. Without brain human body is
only collection of
bones and flesh which is of no use; likewise if management is not in business it is
only collection of money, machines, material and men which is not useful in
achieving the objectives.

From the above information we can understand the meaning of management that it is
the art of getting things done by a group of people with the effective utilization
of available resources.

The management is thus the dynamic life-giving element in each and every
organization.

Without it the resources of production will remain resources only and never change
in the production.

definition

According to the Theo Haimann the term management is used in three different
senses, viz.

i) Management as a Noun.

ii) Management as a Discipline and

iii) Management as a Process or group of functions.

i) Management as a Noun– In this sense the term ‘Management’ refers to the ‘group
of persons’ managing the affairs of the organization. (i.e.- The governing
body of any Institution, Board of Directors of a company, Executive council or
Managerial council of an Institution etc.)

ii) Management as a Discipline– In this sense the term ‘Management’ is described as

a subject or faculty, which can be taught and learnt. Various
universities, commerce colleges, Business schools and Management Institution offer
the diplomas and degrees in the management discipline, e.g. BBA, BCA, B.Com.,
M.Com., MBA, C.A, C.S, DBM, DMM, DIT etc.

iii) Management as a Process / functions– In this sense the term ‘Management’

relates to the process of managing or managerial functions like planning,
organizing,
staffing, directing, co-ordinating, communicating, reporting, budgeting and
controlling

Characteristics of Management –

Following are the important characteristics of Management.

1) Management is universal- Management is applicable to all forms of human

organizations whether it is profit- making or non- profit making.

2) Management is a social process-To get things done from the people manager has to
establish inter-personal relations with them. He has to understand the behavior of
all as individual members as well as members of a group.

3) Getting things done through people/ group- In the words of Koontz and O’Donnell,
“Management is the art of getting things done through people or organized groups.”

4) Management is an integrating / unifying force.-Management is integrating people

into a single working force with available physical resources.

5) Management is objective/ target oriented-Management is purposeful or goal-

oriented activity. The success of management is measured by the extent to which
organization goals are achieved.

6) Management is dynamic, and not static-Management is not a stereotype activity

but is ever changing. It is a complex
and dynamic activity. Management adapts itself to changes in environment, and also
initiates and introduces changes. i.e . innovations, change in methodology etc.

7) Management is a system of authority-In management scalar- chain indicates system

of authority. Every body in the organization knows under whom he is working, whose
orders he has to follow and to whom he is answerable.

8) Decision-making-Decisions are taken in all the activities of management. The

success is judged by the quality of decisions taken by the managers.

9) Continuous process-Management is not one time activity, but it is continuous

activity. The cycle of management continues to operate so long as the organization
continue to exist.

10) Management is born as well as acquired ability-Management is considered not

only as an inborn ability but also an acquired ability by proper training.

11) Proper utilization of resources-Management is concerned with the best and

proper utilization of the resources.
12) Intangible-Management is intangible, it cannot be seen with eyes, It is
evidenced or measured only by the quality results of organization, such as
increased productivity,
the increased morale of the employees etc.

planning

The planning is the most important and primary function of management.

Due to planning the objectives of the organization can be achieved very easily.

The work is completed in time without disturbance because of proper planning.

In this modern business world the scale of business has become very large and so
the planning is becoming essential.

Planning means predetermination of future work regarding how and when to be done.

Planning includes Time-table, scheduling and budgeting of work to be done.

In short planning is a primary function of management. Which accelerates to other

functions of management.

"planning can be defined as thinking in advance what is to be done , when it is to

be done how it is to be done and by whom it should be done."

planning bridges the gap between where we are and where we want to go. It is the
thinking process and organized foresight based on past experience and analysis of
present situation.

characterstics

1-planning contributes to objects

2- planning is the primary function of management

3-pervasive

4-planning is continuous
5-planning is futuristic

6-planning invloves decision making

7- planning is mental excercise

importance

1- planning provides direction

2-planning reduces the risk of uncertainities

3-planning reduces overlapping and wasteful activities

4-planning promotes innovative ideas

5- planning facilitates decision making

6- planning establishes standard for controlling

process

setting up of the objectives

developing premises

listing the various alternatives for achieving the objectives

evaluation of different alternatives

selecting an alternative

implementing the plan

follow up

decision making

Management includes a chain of functions like planning, Organizing , Direction, Co-

ordination and control.

In case of every function the management needs to take decisions.

Decision- Making is a crucial and central Job.

Decision is a choice whereby a person comes to a conclusion about the solution of

given problem.

It is the selection of a course of action from two or more alternative courses of

action.
It is an intellectual and continuous process. In case of industry to achieve the
objectives of the business and to face the problems of organizations management
needs to select the best alternative out of many alternatives.

According to George Terry – “Decision Making is the selection based on some

criteria from two or more alternatives”.

Features / Characteristics of Decision- Making

1) Selection of Best Alternatives – Decision- Making means selection of the best

alternative out of various alternatives. Decision making implies that a manager
selects the most desirable alternative to salve a problem.

2) Intellectual Activity – Decision- making is a rational and intelligent process.

A manager has to think seriously and then choose the most appropriate way of
doing a thing.

3) Goal- Oriented – Decision – making is goal-oriented activity. Every decision has

to solve a specific problem. Every problem has many solutions but the best
solution is based on a specific objective of the business.

4) Continuous Activity – Decision – making is a continuous activity. It is related

with many functions. In case of management functions from planning,
organizing, co-ordination and controlling there is decision- making involved.

5) Means to an end – A decision is a means to an end and not an end. it is a device

to achieve some results, Decision – making shows the results and effects in long
run.

6) Related to Situation – Decisions are different in different situations selection

of alternative changes as pen changing priorities and priorities changes as pen
situation.