DEFINITION OF MANAGEMENT ; ITS NATURE AND PURPOSE

THE MEANING OF MANAGEMENT.

Management is the process of planning, organizing, leading, and controlling an

The definition of management can be broadly classified into four groups:

1. Process School:
Management, according to the s process school of management focuses on viewing management
as a set of interrelated functions or activities that contribute to the achievement of organizational
goals. This perspective emphasizes the systematic and sequential nature of managerial activities.
The key functions in the process school include planning, organizing, leading, and controlling.
Managers continuously plan, organize, lead, and control to adapt to changing circumstances and
work towards organizational objectives.
2. Human Relations School:
The Human Relations School views management as a social system, emphasizing the importance
of understanding and addressing the human aspects of organizations. It recognizes the
significance of employee relationships, motivation, and satisfaction in achieving organizational
success.
3. Decision School:
Decision-making school of management focuses on the idea that management is essentially the
process of making effective decisions. According to this perspective, the success of an
organization depends on the quality of decisions made by its managers. It explores models and
methods for effective decision-making.
4. System and Contingency School:
 System School:
Management is often viewed as a system because it involves various interrelated components
that work together to achieve organizational goals. A system is a set of interrelated and
interdependent parts working together to achieve a common goal. In the context of management,
these parts include planning, organizing, leading, and controlling.
Example:
Imagine a manufacturing company that produces smartphones. The management system includes
planning (deciding on production targets), organizing (arranging resources and workforce),
leading (motivating and guiding employees), and controlling (monitoring production processes
and quality). Each of these components is interconnected, and changes in one area can impact the
entire
The Contingency School ;According to this School, organisations like any living organism must
adapt themselves to their environments for survival and growth. According to Contingency
School, there is no best way to design organisations and manage them. Managers should design
organisations, define goals and formulate policies and strategies in accordance with the
prevailing environmental conditions
Purpose of Management
The purpose of management is to coordinate and oversee the activities of an organization to
achieve its goals and objectives. Management involves planning, organizing, leading, and
controlling resources (including human, financial, and physical resources) to achieve
organizational goals effectively and efficiently. Here are key aspects of the purpose of
management:

1. Goal Achievement: Management exists to help organizations reach their objectives. This
involves setting clear goals, formulating strategies to achieve them, and then guiding the
organization through the process of executing those strategies.
2. Resource Optimization: Management ensures that an organization's resources, including
people, money, time, and technology, are utilized efficiently. This involves making decisions
about resource allocation to maximize productivity and minimize waste.
3. Decision Making: Managers are responsible for making informed decisions that impact the
organization. This includes strategic decisions related to long-term goals as well as operational
decisions that affect day-to-day activities.
4. Organizational Efficiency: Management is concerned with making the most effective use of
available resources. This includes designing and optimizing organizational structures, processes,
and systems to enhance overall efficiency.
5. Leadership and Motivation: Managers play a crucial role in leading and motivating employees.
This involves providing direction, inspiring commitment, and creating a positive work
environment to encourage high performance and employee satisfaction.
6. Problem Solving: Management is involved in identifying and addressing challenges that may
arise within an organization. This includes troubleshooting operational issues, resolving
conflicts, and adapting to changes in the business environment.
7. Communication: Effective communication is a fundamental aspect of management. Managers
need to communicate goals, expectations, and information across different levels of the
organization to ensure that everyone is aligned and working towards common objectives.
8. Adaptation to Change: In a dynamic business environment, management is responsible for
guiding the organization through changes. This includes adapting to technological advancements,
market shifts, and other external factors.
9. Risk Management: Managers are tasked with identifying and mitigating risks that may affect
the organization's success. This involves assessing potential challenges and developing strategies
to minimize their impact.

Nature of Management
The nature of management refers to the fundamental characteristics, principles, and aspects that
define the field of management. It encompasses a wide range of activities, responsibilities, and
functions aimed at achieving organizational goals and objectives. Here are some key aspects of
the nature of management:
1. Goal-oriented: Management is fundamentally about achieving specific organizational goals and
objectives. Managers work to align the efforts of individuals and teams toward common targets,
ensuring that resources are used effectively and efficiently.
2. Interdisciplinary: Management draws upon various disciplines such as psychology, sociology,
economics, and engineering. It involves understanding and integrating diverse elements to make
informed decisions and solve complex problems.
3. Dynamic and Ever-Evolving: The business environment is dynamic and constantly changing.
Management must adapt to new challenges, technologies, and market conditions. Flexibility and
adaptability are crucial qualities for effective management.
4. Process-oriented: Management involves a series of interconnected processes, including
planning, organizing, leading, and controlling. These processes are cyclic and continuous,
forming a management cycle that organizations use to operate and improve.
5. Decision-making: Managers are responsible for making decisions that impact the organization's
success. Decision-making involves selecting the best course of action from available alternatives,
often in situations of uncertainty and risk.
6. People-oriented: Management is not just about systems and processes; it also involves working
with people. Managers must understand human behavior, motivation, and communication to lead
and inspire individuals and teams.
7. Resource optimization: Managers must allocate and optimize resources such as human,
financial, and technological resources to achieve organizational goals. This involves efficient
utilization and coordination of resources.
8. Ethical and Social Responsibility: Management involves making decisions with ethical
considerations and taking into account the social impact of those decisions. Responsible
management considers the well-being of stakeholders and the broader community.
9. Global Perspective: In today's interconnected world, management often requires a global
perspective. Businesses and organizations operate in a global context, and managers need to
consider international markets, diverse cultures, and global competition.
10. Continuous Improvement: The nature of management involves a commitment to continuous
improvement. Managers strive to enhance processes, optimize performance, and foster
innovation to stay competitive and meet changing demands
FUNCTIONS OF MANAGEMENT

Management is the process of getting things done through others. This process is identified in a
set of functions performed by managers to accomplish the goals. Management as an organization
plays a dominant role to achieve the targeted goal of profit maximization and increased market
shared.

The main aim of management is to achieve the organizational goals while using the
organizational resources most effectively.

Management is what management does. It is the art of getting things through and with people in
formally organized groups. A manager manages an organization to achieve certain objectives
and goals. For this reason the manager performs some fundamental functions. They are called
managerial functions and basically consist of five elements
Planning:
Planning involves setting goals, defining objectives, and determining the course of action to
achieve those goals. It is the initial step in the management process.
Organizing:
Organizing is the process of arranging resources and tasks to implement the plans successfully.
It involves creating a structure to achieve the organization's objectives.
Directing:
Directing involves leading and influencing people to achieve organizational goals. It is about
guiding and motivating employees to perform their tasks effectively.
Controlling:
Controlling is the process of monitoring and regulating activities to ensure that they are in line
with the plans and objectives of the organization. It involves comparing actual performance with
the planned performance and taking corrective actions when necessary.

Staffing:
Staffing involves acquiring, developing, and managing the human resources needed to
accomplish organizational goals. It includes activities related to recruitment, training,
development, and performance appraisals

SCOPES OF MANAGEMENT

Management has several scopes or areas of focus. These scopes can vary depending on the
organization and its specific needs.

1.Functional Scope: This refers to the different functions or departments within organization,
such as production ,marketing, finance ,personnel management and so on. Managers in each of
these areas are responsible for overseeing the activities and achieving the goals of their
respective function

A .Production Management:
The primary goal of production management is to ensure the efficient and effective utilization of
resources in the production process to meet organizational objectives. It includes the following
activities such as planning, organizing, and controlling the production process. It involves
decision-making related to production methods, technology, quality control, inventory
management, and scheduling.
B .Marketing Management:
Marketing management aims to identify, anticipate, and satisfy customer needs profitably. It
involves creating, communicating, and delivering value to customers. Marketing management
encompasses market research, product development, pricing strategies, promotion and
advertising, distribution channels, and customer relationship management. It is concerned with
creating a strong market presence and achieving competitive advantage.
C. Financial Management:
The primary goal of financial management is to maximize shareholder wealth by ensuring
efficient allocation and utilization of financial resources. Financial management involves
financial planning, budgeting, investment decisions, capital structure management, risk
management, and financial reporting. It aims to optimize the financial structure of the
organization and ensure its long-term financial health.
 D .Personnel Management (Human Resource Management):
Personnel management is focused on managing the organization's human resources to achieve
both individual and organizational goals. It includes activities such as recruitment, selection,
training and development, performance appraisal, compensation and benefits, employee
relations, and workforce planning. The goal is to create a motivated and skilled workforce that
contributes to the overall success of the organization.
2.Operational Scope Management:
Operational scope management involves defining, planning, and controlling the day-to-day
activities and processes necessary to achieve the project's objectives.
3.Technical Scope Management:
Technical scope management involves defining and controlling the technical requirements,
specifications, and constraints of the project.
4.Ethical Scope Management:
Ethical scope management involves integrating ethical considerations and principles into the
decision-making processes and activities of the project.

MANAGERIAL ROLES

Managerial roles can be categorized into three broad categories: interpersonal roles, decision-
making roles, and communication roles. These categories describe the key functions and
responsibilities that managers perform within an organization

Interpersonal Roles: Interpersonal roles refer to the manager's interaction with people both
inside and outside the organization. These roles are centered around building and maintaining
relationships, providing leadership, and being a figurehead. There are three primary interpersonal
roles:

1. Figurehead:
 As a figurehead, managers represent their organization in ceremonial and symbolic capacities.
This might involve attending events, signing documents, and embodying the organization's
values.
2. Leader:
Managers act as leaders by guiding, motivating, and influencing their team members. This
involves setting expectations, providing support, and fostering a positive work culture.
3. Liaison:
In the liaison role, managers build and maintain relationships both within and outside the
organization. They collaborate with other departments, stakeholders, and external partners to
ensure effective communication and cooperation.

Decision-Making Roles: Decision-making roles involve the process of making choices and
taking actions that affect the organization's direction and performance. There are four primary
decision-making roles.

1. Entrepreneur:
Managers act as entrepreneurs when identifying opportunities for innovation and growth. They
take calculated risks, explore new ventures, and drive initiatives that contribute to the
organization's success.
2. Disturbance Handler:
The disturbance handler role involves managing conflicts and crises within the organization.
Managers must address disruptions, resolve conflicts, and work to restore stability and
productivity.
3. Resource Allocator:
Managers make decisions about the allocation of resources such as finances, personnel, and
technology. This includes prioritizing projects, assigning tasks, and ensuring resources are used
efficiently.
4. Negotiator:
Managers, as negotiators, engage in discussions to resolve conflicts and reach agreements. This
role requires effective communication skills, the ability to find common ground, and a focus on
achieving mutually beneficial outcomes.
 Communication Roles Effective communication is a vital aspect of a manager's role, as it helps
ensure that information flows seamlessly within the organization. There are four primary
communication roles

1. Downward Communication:
Managers communicate information, instructions, and expectations to their subordinates. This
ensures that everyone is on the same page regarding goals, tasks, and organizational
developments.
2. Upward Communication:
Managers also need to listen to feedback, concerns, and information from their subordinates.
This helps in maintaining an open and transparent communication channel within the
organization.
3. Horizontal (Lateral) Communication:
Communication between different departments or units within the organization is crucial.
Managers facilitate effective horizontal communication to ensure that teams can collaborate
smoothly and share information.
4. External Communication:
Managers communicate with external stakeholders, such as customers, suppliers, and the
community. This involves representing the organization, managing its reputation, and conveying
key messages to the external environment.
Manager as change agents
Managers can play a critical role as change agents within an organization. Change agents are
individuals or groups responsible for driving and facilitating change initiatives to achieve
organizational goals and objectives. There are some key ways in which managers can act as
effective change agents;

1. Initiating Change: Managers identify the need for change based on factors such as shifts in the
external environment, market trends, or internal challenges. They recognize the need for
improvement or adaptation to remain competitive or address emerging issues.
2. Creating a Vision: Effective change agents, including managers, develop a clear vision for the
desired future state of the organization. They articulate this vision in a way that inspires and
motivates employees to embrace the change.
3. Communicating Effectively: Managers must be skilled communicators to convey the reasons
behind the change, the benefits it will bring, and the steps involved. Clear and transparent
communication helps build trust among employees and minimizes resistance to change.
4. Building Support: Change often faces resistance from employees who may be comfortable with
the status quo. Managers need to build support for the change by involving key stakeholders,
addressing concerns, and demonstrating the positive impact of the proposed changes.
5. Facilitating the Change Process: Managers are responsible for planning and implementing the
steps needed to bring about the desired change. This involves coordinating resources, managing
timelines, and monitoring progress.
6. Adapting to Feedback: A manager as a change agent should be open to feedback and be willing
to make adjustments to the change plan based on the evolving needs and challenges faced by the
organization.
7. Leading by Example: Managers serve as role models during times of change. Their behavior,
commitment, and enthusiasm set the tone for the entire organization. Leading by example
reinforces the importance of the change initiative.
8. Ensuring Sustainability: Successful change agents ensure that the changes implemented are
sustainable in the long term. This involves embedding new practices and behaviors into the
organizational culture.
9. Learning and Development: Managers may need to facilitate learning and development
opportunities for employees to acquire the skills and knowledge required to adapt to the changes.
This can include training programs, workshops, or mentoring.

By taking on these roles, a manager acts as a change agent who guides the organization through
the complexities of change, helping it to adapt and thrive in dynamic environments

UNIVERSALITY OF MANAGEMENT

The universality of management refers to the idea that the principles and functions of
management are applicable across various organizations and industries, regardless of their size,
nature, or purpose. This universality is evident in how management principles are interconnected
and relevant to key business functions, including production, marketing, finance, people,
 processes, and systems. The universality of management lies in the fact that these management
functions are not isolated but are interconnected and interdependent

1. Production:
 Planning: Managers need to plan the production process, set goals, and determine the
most efficient way to achieve them.
 Organizing: Organizing resources, such as materials, equipment, and manpower, to
optimize the production process.
 Controlling: Monitoring production progress, ensuring quality standards, and making
adjustments as necessary.
2. Marketing:
 Planning: Developing marketing strategies, setting objectives, and identifying target
markets.
 Organizing: Allocating resources for advertising, promotions, and sales efforts.
 Controlling: Evaluating the effectiveness of marketing campaigns and adjusting
strategies based on performance.
3. Finance:
 Planning: Budgeting, financial forecasting, and determining the financial needs of the
organization.
 Organizing: Allocating funds to various departments, projects, or investments.
 Controlling: Monitoring financial performance, analyzing variances, and taking
corrective actions to ensure financial goals are met.
4. People:
 Planning: Human resource planning, workforce analysis, and determining staffing
requirements.
 Organizing: Recruiting, training, and developing employees to achieve organizational
goals.
 Controlling: Performance management, feedback, and addressing issues to enhance
employee productivity.
5. Processes:
 Planning: Designing efficient and effective business processes.
  Organizing: Structuring workflows and allocating resources to streamline processes.
 Controlling: Monitoring and improving processes to enhance efficiency and quality.
6. Systems:
 Planning: Developing and implementing information systems and technology strategies.
 Organizing: Integrating technology into various business functions to improve
communication and operations.
 Controlling: Monitoring and managing information systems to ensure they support
organizational objectives.