What is Management?

Management:

Management is a universal phenomenon. It is a very popular and widely used term. All organizations – business, political, cultural, or social are involved in management because it is the management which helps and directs the various efforts towards a definite purpose.

According to Harold Koontz, “Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals.”

According to F.W. Taylor, “Management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way.”

Management is a purposive activity. It is something that directs group’s efforts towards the attainment of certain Pre-determined goals. It is the process of working with and through others to effectively achieve the goals of the organization, by efficiently using limited resources in the changing world. Of course, these goals may vary form one enterprise to another. E.g. For one enterprise it may be launching of new products by conducting market surveys and for other it may be profit maximization by minimizing cost.

Management involves creating an internal environment. It is the management which puts into use the various factors of production. Therefore, it is the responsibility of management to create such conditions which are conducive (beneficial) to maximum efforts so that people are able to perform their task efficiently and effectively. It includes ensuring (conforming) availability of raw materials, determination of wages and salaries, formulation of rules and regulations etc.

Importance of management:

It helps in achieving group goals:

 It arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards achievement of pre-determined goals. By defining objective of organization clearly there would be no waste of time, money, and effort. Management convers disorganized resources of men, machines, money etc. into useful enterprise. These resources are coordinated, directed and controlled in such a manner that enterprise work towards attainment of goals.

Optimum Utilization of Resources:

Management utilizes all the physical and human resources productively. This leads to efficacy (efficiency) in management. Management provides maximum utilization of scarce (rare) resources by selecting its best possible alternate use in industry from out of various uses. It makes use of experts, professional and these services leads to use of their skills, knowledge, and proper utilization and avoids wastage. If employees and machines are producing its maximum there is no under employment of any resources.

Reduces costs:

It gets maximum results through minimum input by proper planning and by using minimum input and getting maximum output. Management uses physical, human, and financial resources in such a manner which results in best combination. This helps in cost reduction.

Establishes sound organization:

No overlapping of efforts (smooth and coordinated functions). To establish sound organizational structure is one of the objectives of management which is in tune with objective of organization and for fulfillment of this, it establishes effective authority and responsibility relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors and who are subordinates. Management fills up various positions with right persons, having right skills, training, and qualification. All jobs should be cleared to everyone.

Establishes equilibrium:

It enables the organization to survive in changing demand of keeps in touch with the changing environment. With the change in external environment, the initial co-ordination of organization must be changed. So it adapts organization to changing demand of market/ changing need of societies. It is responsible for growth and survival of organization.

Essentials for prosperity of society:

Efficient management leads to better economical production which helps in turn to increase the welfare of people. Good management makes a difficult task easier by avoiding wastage of scarce resource. It improves standard of living. It increases the profit which is beneficial and society will get maximum output at minimum cost by creating employment opportunities which generate income in hands. Organization comes with new products and researches beneficial for society.