CONCEPT,NATURE AND
IMPORTANCE I OF
MANAGEMENT
By Rekha Prasad

• Every individual works in the organized
group to achieve what he can’t achieve
individually
• Management is an essential part of any
group activity. Group can be:-
– Family
– Play group
– Work group
– School
– Business firm
– A government
• Management is universal process
• Wherever there is human activity, there is
management

“Management”
Management is looked at from the following
angles
• As a Noun
• As a Process
• As a Discipline

Management as a Noun
Management refers to all those persons who
are concerned with getting the things done
through others.
Ex.---persons of supervisory responsibilities,
MD, GM, Board of Directors
HUMAN RELATIONSHIP CONCEPT

Management as a Process
Management refers to all that manager
does.
Ex.---Planning, Organizing , Staffing,
Directing, Controlling
FUNCTIONAL CONCEPT

Management as a Discipline
Management refers to a body of knowledge,
a practice and a discipline.
Management refers to the principles and
practices of management as a subject of
study

Definition of Management
Functional Concept
To manage is to forecast and plan, to
organize, to command, to coordinate and
to control
----Henry Fayol

Human Relation Concept
Management is the art of directing and inspiring people
---- Mooney & Railey
Management is the art of getting things done through & with people in
formally organized groups. Its an art of creating an environment in
which people can perform and individuals could co-operate towards
attaining of group goals
---- Herold Koontz

Nature/Characteristics of Management
• Goal- oriented—(economic & social objective)
• Continuous process
• Coordinative Force
• Intangible Force
• Part of Group Effort
• Accomplishes Results through the Cooperation of Others
• Balances Effectiveness & Effeciency
• Dynamic Discipline
• Science as well as an Art
• Universal in character
• Needed at all levels of Organization

Purpose/Objectives of Management
• Optimum utilization of resources
• Minimizing the element of risk
• Improving performance
• Planning for the future.
• Growth and Development of business
• Better quality goods
• Ensuring regular supply of goods
• Discipline and Morale
• Mobilizing the best talent
• Research and Development

Importance of Management
1. Accomplishment of goals
2. Optimum utilization of resources
3. Sound Organisation
4. Providing Vision & Foresight
5. Harmony in work
6. Helping the Employees in Achieving
Personal Objectives
7. Development of Society & Nation
8. Increased profit

Scope of Management
• Financial
• Planning Management
• Organizing • Personnel
• Staffing Management Branches of
• Directing • Production Management
• Controlling management
• Reporting • Purchase
• Budgeting Management
• Material
Management
• Office Management

A Science or an Art ?
The debate whether management is
a science or an art is complicated.
Management depicts characteristics
of both.

Management as a Science
Science is a systematized body of
knowledge pertaining to a particular field
of enquiry.
i. Systematized body of knowledge
ii. Scientific Observation
iii.Experimentation
iv.Verifiable Principles
v.Universal Application

Mgt as Science
It is systematized body of knowledge acquired by mankind
through observation and experimentation and which is
capable of verification
• Systematized body of knowledge that uses scientific
methods of observation
• Principles are evolved on the basis of continued
observation
• Principles are exact & universal application without any
limitation
• Cause & effect relationship
• Validity can be verified and they prove a reliable basis of
predicting future events

LIMITATION OF MANAGEMENT AS A SCIENCE
OR
MANAGEMENT AS AN INEXACT OR SOCIAL
SCIENCE
• Management principles are not fundamental truths & not
supported by research (not a exact science).
• It is difficult to establish cause & effect relationship
• Application of management principles depend upon
situations & factors.
• Management deals with people at work & it is very difficult
to predict their behavior accurately.
• Principles of management do not have a universal
application (soft science or behavioral science)
• Management lacks certainty of results

Management as an Art
Art signifies the application of Knowledge &
personal skills to bring about desired
results
i. Body of Knowledge
ii. Personalised Application of Knowledge & Skills
iii. Practice
iv. Creativity

Mgt as an Art
It is systematic application of skill or knowledge in effecting
accomplishment of results.
 It represents the methods or ways of doing specific thing and
indicates how an objective is to be achieved.
Every art is practical and is concerned with creation of
something.
• Personal skill
• Practical knowledge
• Regular practice
• creativity

MANAGEMENT IS AN
ART
AS WELL AS
SCIENCE

Management as a Proffesion
i. Specialised field of Knowledge
ii. Restricted entry based on Education & Training
iii. Representative or Professional association
iv. Ethical Code of Conduct for self regulation.
v. Social Responsibility
vi. Professional fee.

Mgt & Admin
Three Views
• Administration is part of 1. Management
2. Administration
management
• Administration comes first,
1. Administration
management follows it 2. Management
• Management and administration
are same Management = Administration