Grade-XII Business Organization & Office Management

01-NATURE OF MANAGEMENT
Concept of Management:
Management is a universal talk of every work of life. In whatever form, may be a business
activity or any other activity, management will be there. In modern time as the size of business
increases, new products and production techniques are developed, new business policies are made,
government interference become essential. It is a process of getting results by doing things others.
The word management can be explained as Manage!Men!T, which means, manage the
men tactfully to do something in good and proper way to achieve the pre"determined goals of the
organization. #ith the help of good force of managerial person, ratio of development will increase.
#ith the help of efficient management selection of employees for specific $ob, proper management
of tools, machines and other equipments, institutional work can be done. It is the most important
function to control % co"ordinate the efforts of different individual or group of person. It is an art of
handling people. It consists of planning, organizing and controlling. It is a continuous process and
art of getting things done through other people.

Definition:
&ccording to 'oontaz and () *onnell, Management is an art of getting things done
through and with the people in formally organized group.
&ccording to +enry ,ayol, To manage is to forecast and to plan, to organize, to command,
to co"ordinate and to control.
The definitions above show that it is a continuous process of getting things done by proper
use of manpower and other resources. It also helps to control, organize and co"ordinate the function
of an organization.
Characteristics of Management:
&s blood, soul % mind are important for the life, same as management is for business.
-omeone has written, Management is the soul of Industrial development. The progress and
prosperity of business organization is based on management. It is the brain of an organization,
without management nothing can be done in the business. -o, it has some characteristics which are
as follows.
.. Management is universal
/. Management, social process
0. 1oal oriented
2. -cience % &rt
3. 1roup 4ffort
5. Intangible
6. 7equired at all level
8. -eparate from ownership
9. :urposeful activity
.. Management is universal;
Management is taken as universal activity whether an organization is big or small,
government, hospitals, schools, colleges, etc. management is needed. #herever there is a
human activity there is management. 4very step of life requires management because with
the help of management each % every task can be handled easily, properly % effectively.
/. Management, social process;
Management involves dealing with the people, the effort of human beings are
controlled % directed by the management. It has social obligation to make efficient use of
scare material for the benefit of the society.
0. 1oal oriented;
4ffective management is always management by ob$ectives and also it has no
$ustification to exist without goals. &n efficient and good management tries to achieve the
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Grade-XII Business Organization & Office Management
predetermined goals by the minimum resources. Management is established only to achieve
the goal. +ence, it is goal oriented.
2. -cience % &rt;
Management is both science and art. It is based on some skills? knowledge is also
required to achieve the goals effectively. -o, it is concerned with art tough it is not exactly
like music or dance.
3. 1roup 4ffort;
It deals with group of activities because no individual can do all the activities at the
same time. -o, it is based on group efforts. It is also used to achieve the common goals with
group efforts. & group also can achieve the predetermined goals easily and effectively.
5. Intangible;
It is important but unseen process of the organization. #e can only feel it. It cannot
be seen functioning with eyes but can feel by observing the result.
6. 7equired at all level;
It is one of such process which requires all level, top level, middle level % low level
of an organization. &ccording to levels the process of management is different.
8. -eparate from ownership;
Management % ownership are two different things in a company. In a company,
shareholders are the owner and managerial work is in the hand of )@oard of *irectors).
9. :urposeful activity;
The activity of management is connected with planning, direction, controlling, staffing, etc.
and also there is some purpose behind it. Its main aim is to achieve the economic and social
ob$ective. #ithout any purpose management cannot be formed.
Fnctions of Management:
In competitive days management become a typical $ob, a manager have to perform different
types of managerial $ob to achieve the goals of the organization. It is said that, management is
what manager does, Management is that type of process which requires different level of the
requirement of the organization. The functions are defined differently by experts. The main
branches of function of management are as follows.
.. :lanning
/. (rganizing
0. *irecting
2. -taffing
3. =ontrolling
.. :lanning;
It involves the fore"casting of future problem and selecting the proper course of
action to solve the problem. It may be either for a short period or longer or both type. The
main element of planning are what should be doneA +ow shall be doneA #ho will be
responsible for doingA +ow shall be doneA #ho will be responsible for doingA, etc.
:lanning is essential for every level of the management. #ith the help of planning function,
a manager can perform organizational activities properly and clearly.
/. (rganizing;
(rganized efforts are essential for the success of any enterprise. It involves the
division and subdivision of activities into the department, section and $ob as well as the
integration of activities of an organization. It is a collection of various factors like man,
machinery, material, money, etc.
0. *irecting;
It is concerned with guiding the people at work for securing their cooperation in the
execution of work. It helps in influencing, motivating human resources towards the
achievement of organizational goals. The directing function actually starts the work. It guide
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Grade-XII Business Organization & Office Management
the human resources how the work be doneA #ith the help of good directing, people can
easily obtain their goals.
2. -taffing;
Men are the biggest asset of an organization. This function of management is also related
with human resources. +uman resources are very important for proper and regular
functioning of an organization. Bo organization can run without human factor. Bo enterprise
can succeed unless right men are put on the right $ob. The staffing process concerned with
appointment of personnel for individual $ob. It involves the following steps.
i. *etermine the effective man power.
ii. -et their qualification according to work and remuneration.
iii. Training % recruitment of the employees.
3. =ontrolling;
It is the important function in all types of enterprises. It is concerned with measuring
and comparing the operating results with plan and take corrective action if any deviation
occur. -o that similar problem may not occur in future. It involves the following steps.
i. Caying down norms and standard of desired performance.
ii. Measuring the actual performance.
iii. Interpreting and comparing the actual performance.
iv. Taking =orrective action.
!e"e# of Management:
The organization may have various levels of management. The simple meaning of the term
)level) is the arrangement of managerial position. -o, the level of management means dividing the
authority and responsibility among the managerial person. The level of management will depend
upon the size, technology process, quantity of production, nature of organization, etc. 1enerally,
levels of management are categorized in three types.
.. Top Cevel Management
i. -hare +olders
ii. @oard of *irectors
iii. =hief 4xecutive
iv. Managing *irector
/. Middle Cevel Management
i. *epartment +ead
ii. :roduction Manager
iii. ,inance Manager
iv. @ranch Manager
0. Cower Cevel Management
i. -upervision
ii. ,oreman
iii. -ales (fficer
iv. &ccountant
v. Caborer
.. Top Cevel Management;
It is the highest level in managerial process. It is responsible for all over success or failure
of organization. It consists of share holders, @oard of *irectors, =hief 4xecutive, Managing
*irector, etc. It establishes overall organizational goals % strategies for their achievements.
These persons are also responsible for deciding ob$ectives, policies and take final decision.
It includes.
i. *etermination of ob$ective of the organization.
ii. ,ormulate plans % policies
iii. -etup organizational structure.
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Grade-XII Business Organization & Office Management
iv. To attain resources 2M"Men, Material, Machine % money.
v. It provides overall direction and control the operation.
/. Middle Cevel Management
It consist middle order rank of management, such as branch manager, production
manager, finance manager, departmental head, superintendent or other persons of some
rank. It is also known as functional management. The personnel of middle level
management are answerable to top level management and control % order the low level
management. They assist the planning, coordinating, motivating, controlling the activities of
various department. The functions of middle level management are as follows.
i. -elect required no. of employees.
ii. To provide training the new employees.
iii. To report and make suitable recommendation to the top level management.
iv. To motivate the personnel for attaining the goals.
v. To maintain co"operation and coordination.
vi. To issue instructions for the staff.
0. Cower Cevel Management;
It is also known as first line management, ,irst level management and supervisory
management. It includes personnel like fore"man, supervisor, sales officer, finance officer,
etc. Their main $ob is to get work done from other workers and employees who are working
directly under them. They receive instructions from middle level management and act in
accordance with policies % program laid down by top level management.
The main functions of Cow Cevel Management are as follows?
i. To issue the instruction to the workers and supervise and control the work.
ii. =lassify and assign the worker)s $ob.
iii. To solve the problem of workers.
iv. To arrange necessary tools machinery % equipment.
v. To maintain good relation % discipline among the workers.
A$ministration % Management:
It is a higher level activity which is concerned with determination of goals and policy
farming of an enterprise. It decides the ob$ective, policies, rules and regulation through which
various activities of any enterprise are regulated and controlled.
Management is a continuous process which helps in predicting, what is going on to happen
on near future, that will influence the working of an enterprise. It is the brain of an organization.
@ut in management study, management and administration are confusing term and has
become the controversial issue. -ome writers express their view that both are same whether some
regard the term management % administration is differ from each other. &fter analyzing the
different views of various authors, the controversial issue can be explained in the following manner.
.. Bo difference between management % administration;
-ome authors are with the view that there is no difference between management %
administration. & manager has to perform 3 functions like planning, organizing, directing,
staffing % controlling. -imilarly an administrator also performs these 3 functions. -o, these
two terms are interchangeable.
/. &dministration is differ from management;
The second view is that administrator consisting top level management, spend more
time on configuration of plans, policies and lesser time on their execution whereas manager
consisting middle level management and lower level management, spend lesser time on
planning or policy making and more time in execution of plan. This can be explained with
help of following diagram.
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Cow Cevel Mgmt
Middle Cevel Mgmt
Top Cevel Mgmt
Bon"business (rg. D-chools, +ospitals, etc.E
&dministration
Management
D*eals with business organization onlyE
Grade-XII Business Organization & Office Management
*iagonal line in the rectangle indicates the ladder. &s we move up along the ladder the
importance of administration increases i.e. more time is spent on planning, organizing and such as
we move down the ladder importance of management increases i.e. more time is spent on execution
of plans.
Difference &et'een management % a$ministration:
@asis &dministration Management
Meaning Fsed to determine the ob$ectives,
plans % policies
&rt of getting work done through
others.
Bature *ecision making function, it frames
policy.
,unctional activity, which execute the
policy.
&im Fsed for deciding plans % policies of
an enterprises.
Fsed for achieving predetermined
ob$ectives.
Cevel =oncerned with top level
management only.
=oncerned with middle % low level
management.
-cope Its scope is wider than management. Its scope is limited, it is subordinate of
admin.
Fsage It is used with reference to non"
business organization like;
1overnment, Institute, -chools, etc.
It is used in reference to business
enterprises, which have economic
motive.
7elation (nly related to owners and top level
management.
(nly related to employees of any
enterprise.
&bility It requires administrative ability
rather than technical ability.
It requires technical ability rather than
administrative ability.
,unctions Main functions are planning %
organizing.
Main functions are directing %
controlling.
Management-A science( an art or a profession:
In a context of management it is a controversy that management is a science, an art or a
profession. There are different thoughts about management? some consider it is a science, while
some say it is an art, still other call it as a profession. The nature is discussed as below.
.. Management, as a science;
-cience refers to an organized and systematic body of knowledge acquired by
mankind though observation, experimentation and also based on some universal principles,
concepts, and theories. :rinciples of science are developed through testing % observation.
#ith the help of concept of science it can safely be concluded that management is also a
science because it is based upon certain principle and concerned as a systematized body of
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Grade-XII Business Organization & Office Management
knowledge, observation, test and experiment is a science, however it is not exact as physics,
chemistry, biology, etc.
-ince, it is concerned with human % human behavior? it can be called as social
science.
/. Management, as an art;
&rt is concerned with particle knowledge and personal skill for doing out the desired
results. In management, a manager should have practical knowledge % skill. (therwise his
performance will be adversely affected.
Management is a way of doing a specific action while doing the function of an art is
to achieve the success in a given action.
&ccording to 1eorge 7. Terry, &rt is bringing about of a desired result through
application of skill. Thus, art has 3 essential features.
i. :ractical 'nowledge
ii. :ersonal -kill
iii. =oncrete 7esult
iv. =onstructive -kill
v. Improvement through practice
These 3 functions of art also belong to the management. #hen a manager uses his
management skill then he must have practical knowledge for solving managerial problem. &
manager also has power to face the problem to find out the result, which is only possible
when he>she has constructive skills.
To improve the managerial skill, managerial work should be done on regular basis
because regularity and practice make the work effective. -o, we can say that manager is an
artist since he>she posses the skill of getting the work done through and with the people.
Therefore, it can be concluded that manager is an artist and management is bound to
be an art.
0. Management, as a profession;
:rofession is an economic activity. It refers rendering services to other by getting
specialized knowledge. & professional renders his>her services to other for earning his
livelihood.
,eatures of profession are as follows;
i. -tore of 'nowledge
ii. ,acility of Trainings
iii. -ervice Motto
iv. 7estriction on 4ntry
#hile examining the features of profession, these are also related to management. In
management process a manager must have special knowledge about management work. +e
can acquire knowledge from various trainings and professional provides services for the
livelihood and also for earning money % provide services to the society.
#hen an illiterate person wants to professional trainings then there is restriction then
he never become a manager but if an illiterate person having financial resources wants to
establish an enterprise and become its manager then no one can stop him from doing so. -o,
we can say that management also deals with profession and engage in doing different kinds
of work which are related to person.
GGGGGGG
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