We will discuss today the nature and significance of management. We will provide you notes, Pdf, case study, and videos maintaining CBSE standards.

Firstly, I want to share with you what are all the topics which we are going to cover in this article. Also, you can watch all the chapters on our YouTube channel by clicking here.

Topics Which we will cover today will be in the following ways:-

1. Organizations
2. Management
3. Characteristics of management
4. Objectives of management
5. Importance of management
6. Nature of management
7. Level of management
8. Functions of management
9. Co-ordination

Organizations

The organization is a social unit of people that structured and managed to meet a need or to pursue collective goals.

Types of organizations:-

1. Economic organization
2. Non-economic organization
3. Political organization

Economic Organisation

The main aim of the economic organization is to earn profit by satisfying customers’ demand. The company, business, etc came under an economic organization.

Non-Economic Organisation

The main aim of this organization is to provide better service in the interest of the public. School, hospital, etc came under this organization. The social organization also came under the non-economic organization.

Political Organization

A political organization is an organization that involves the political processes including political parties, nonpolitical organizations, advocacy groups, and special interest groups. The organizations belong to this group are involved in political activities.

Management

Management is the most important tool for every organization. It helps the organization to achieve its goal effectively and efficiently by following several processes.

Management of any organization involves the following process:-

• Planning
• organizing
• Staffing
• Directing
• Controlling

Characteristics of nature and significance of management

1_ Management is goal-oriented because every organization exists for the achievements of goals.

2_ Management is pervasive because it is present in every organization.

3_ It is multidimensional because it performs various kinds of activities throughout the organization. Such as:-

1. work management is a part of management that helps to achieve the goal.
2. people management involves various people to work in various parts of the organization to achieve its goal.
3. Management of operations works to convert raw material or input to get output.

4_ Management is a continuous process because it works continuously and will never stop.

5_ It is a group activity because it runs by a group of people working for the development of the organization.

6_ Management is a dynamic function because It works according to the demands and challenges coming to face for the development of the organization.

7_ Management is an intangible force because we can not touch and see it but we can only feel it.

Objectives of management of Nature and significance of management

There are three types of objectives of management they are as follows:-

1. Economic objective
2. Social objective
3. Personal objective

Economic objective

• Profit
• Survival
• Growth

Profit earning is the main goal of any management. More profit, less business risk, and vice versa.

Survival means the business must always run in a market this is only possible when revenue will cover the cost if an organization wants to survive.

Growth is the most important objective of any organization depends upon the demand for the product. The company growth will measure when It will open more branches, fill more employees to work, etc.

Social objectives

Business management must perform the following duties for the society they are as follows:-

1_ Supply desired quality of goods it means that Increases the quality of products with reasonable (cheap) price.

2_ Avoidance of unfair trade practices means the business organization must increase goodwill by removing black marketing, adulteration, hoarding and exaggerating in the advertisement.

3_ Business management must provide employment opportunities because they provide the flow of Income In society.

4_ Provide social service by contributing funds in the form of donation, charity, etc.

5_ Avoidance of pollution by adopting environment-friendly techniques.

Individual objectives

1_ Needs to provide a competitive salary.

2_ Employees should have a good working condition.

3_ Companies should provide training for every employee.

4_ Peer recognition means companies should provide participation to every employee in decision making.

5_ Special benefits like providing a bonus, health insurance, etc to their employees.

Importance of Management of Nature And Significance of Management

1_ Helps in achieving group goals by providing common direction to individuals’ effort.

2_ Increase efficiency by decreasing cost and Increase cost.

3_ Management creates a dynamic function by adapting itself to the changing environment.

4_ Helps In achieving the personal objective because by working in the organization we can earn to fulfill our pet demands. Management provided an equivalent salary according to the efforts of the employee.

5_ Organisation helps in the development of society for example by providing job opportunities and making our society better and school, hospital, industry, etc.

Nature of management

1. Art
2. Science
3. Profession

Management as art requires practice and creativity so it’s an art. So,

1. Management requires a systematic body of knowledge and theoretical knowledge.
2. It requires a personalized application.
3. It requires a huge amount of practice and creativity.

Management as a science is a general truth therefore it is a science. So,

1. It requires a systematic body of knowledge.
2. Principles of management are not based on experiment but it is based on observation.
3. Management doesn’t hold universal validity.

Management as a profession requires specialized knowledge and training but there are no specific criteria for this so it could be a part of the profession. So,

1. It requires a well-defined body of knowledge so management can be a part of the profession in the future.
2. Management needs a professional degree nowadays.
3. Management doesn’t require to follow any code of conduct so it not a profession.

So, finally, we are over with this topic that is the nature of management. So, let’s switch over to another topic.

Level of Management

Every organization has three levels of management. So, they are as follows

• Top-level management
• Middle-level management
• Lower/ supervisory/ operational level management

Top-level management gives the command to middle-level management. So, top-level management have following functions they are as follows:-

• Ultimately responsible for all the activities of the management
• Deciding organizational goals
• Making policies and strategies for the organization
• Welfare and survival of the organization

Further, there are many people who come under top-level management. For example, Chairman, Chief Executive Officer (CEO), Chief Operating Officer, President, Vice President, Board of Director, Managing Directors, General Manager, Chief Financial Officer.

Middle-level management gives the command to lower-level management. So, middle-level management have following functions they are as follows:-

• Interpreting policies framed by top-level management
• Ensuring an optimum number of a person in the department
• Assigning duties and responsibilities to the subordinates
• Coordinating with other departmental heads at the same level

Further, there are many people who come under middle-level management. For example, Operation Manager, Plant Superintendent, Departmental Manager, Purchase / Sales, Marketing Manager, Executive Officer, Divisional Head, etc.

Lower level management gives the command to the workers. So, lower-level management have following functions they are as follows:-

• Giving instructions to the workforce.
• Giving feedback to the workforce.
• Providing job training to the workers.
• Acting as the link between the workers and the management.

Further, there are many people who come under lower-level management. For example, Foreman, Supervisor, Clerks, Sub-Departmental Executive, Section Officer, etc.

So, we have finally covered level of management topic and now we will learn a new topic that is functions of management

Functions of Management of Nature And Significance of Management

Functions of management are as follows ;

• Planning
• Organizing
• Staffing
• Directing
• Controlling
• Coordination

Different functions are performed by different levels of management.

In short, planning and organizing are done by the top level of management. In the same way, staffing and coordination are done by the middle level of management and directing and controlling by a lower level of management.

Planning done by top-level management which includes:-

1. What to do, how to do, when to do and who will do
2. Objectives of the organization how to achieve it

Organizing done by the top level of management in which they do following things they are:-

1. Establish a structure to execute plans
2. Framework of working
3. Distribution of authority (power) and responsibility (work)

Staffing has done by middle-level management. They are as follows:-

1. Recruit staff and appoint and assign work to them
2. Training and development of employees
3. Deciding payment, promotions, increment, etc

Directing done by lower-level management. So, they are as follows:-

1. Supervising
2. Motivating
3. Communicating
4. Instructions to workers

Controlling done by lower-level management. They make sure that the actual performance matches the planned performance.

Co-ordination

It means bringing together different functions of an enterprise. Co-ordination binds all the activities of functions of management.

Characteristic

1_ It integrates group efforts because all the efforts of individuals unite for achievement of organizational goals.

2_ It ensures the unity of actions because it connects the different organisation to create balance and reduces conflicts.

3_ Its a continuous process because it is a never-ending process and will never end until the organization ends.

4_ Its the responsibility of all the managers because followed by each and every manager of the organisation.

5_ Its a deliberate process because its a pre-planned process.

6_ Its pervasive function because it follows in every level of organization.

Importance

• Growth in size– Because as the organisation grows more people is needed to work in the organisation.
• Specialisation– Because every manager is specialised in their work.
• Functional Differentiation-.Because it’s followed by every organisation whether big or small.

Case Study

So, Guys, we have finally over with this chapter.

Summary studies notes of handy lecture business studies notes

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