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.
