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1. NATURE AND SIGNIFICANCE OF MANAGEMENT
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NTRODUCTION
Management is a universal concept. It
is needed in every organization,
whether it is a business organization or
non-business organization (like school,
hospital, etc.). The success of an
organization depends on the
successful functioning of
management. For example, HCL has
become a leader in global technology
and IT services due to managerial
efficiency of Shiv Nadar and his
managerial staff.
Consider the following cases:
A school without a principal
A cricket team without a
captain
A country without a
government
In all these cases, situation is likely to
be disorganized and chaotic because
there is no management. So,
management is essential for all
organizations big or small, profit or
non-profit, services or manufacturing.
Management is necessary so that
individuals make their best
contribution towards group objectives.
Management consists of a series of
interrelated functions that are
performed by all managers. However,
time spent by manager in different
functions is different. For example,
manager at the top level spend more
time in planning and organizing than
manager at lower levels of the
organization.
 MEANING OF MANAGEMENT
Management is an activity which is necessary
wherever there is a group of people working in
an organization. People perform diverse tasks
in the organizations, but they all are working
towards the same goal. Management aims at
guiding their efforts towards achieving a
common objective a ‘goal’. So, management
has to ensure that tasks are completed and
goals are achieved with the least amount of
resources at a minimum cost. Thus,
management can be defined as a ‘process’ of
getting things done with the aim of achieving
goals ‘Effectively’ and ‘Efficiency’.
DEFINITIONS OF MANAGEMENT
 Management is the creation of an
internal environment where
individuals working in a group can
perform effectively and efficiently for
the achievement of organization goal.
 Management is the process of
designing and maintaining an
environment in which individuals,
working together in groups, efficiently
accomplish selected aims.
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2. NATURE AND SIGNIFICANCE OF MANAGEMENT
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 Management is defined as the process
of planning, organizing, actuating and
controlling an organisation’s
operations in order to achieve
coordination of the human and
material resources essential in the
effective and efficient attainment of
objectives.
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The concept of management insists on three
essential elements:
1. Management is a ‘Process’:
management is a process as it involves
a series of inter- related functions,
such as planning, organizing, staffing,
directing and controlling. All managers
perform these functions to achieve to
achieve goals.
2. Management requires ‘Effective’
performance: effectiveness in
management is concerned with doing
the right task and achieving goals on
time. It aims at end result. For
example, if a firm achieves its target
production within time, then the firms
is said to be effective.
3. Management needs ‘Efficiency’:
Efficiency means doing the task
correctly and with minimum cost. It is
not enough to just complete the tasks.
Efficiency involve cost-benefit analysis
and relationship between inputs and
outputs. It aims to achieve more
benefits using less resources or inputs
like money, materials, equipment and
persons.

3. NATURE AND SIGNIFICANCE OF MANAGEMENT
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CONCEPT OF MANAGEMENT
Process : involves a series of
inter- related functions
Effectiveness : means doing the
right task and achieving goals on time
Efficiency : means doing the
task correctly and with minimum cost