IBPS Specialist (HR) Officers Professional Knowledge Study Material - Management and its Functions

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Management and Its Functions

Concept of Management

Scholars from different disciplines view and interpret management from their own angles. The basic definition of management can be expressed as "Management is the act of getting people together to accomplish desired goals and objectives using available resource efficiently and effectively".

Management comprises planning, organising, directing, controlling and staffing (a group one or more people or entities) for the purpose of accomplishing a goal. Management brings together all Six M's, i.e., Men, Money, Machines, Materials, Methods and Markets.

Definitions of Management

Some definitions of management by leading management thinkers and practitioners are given below. 

FW Taylor defined management as "Management is the art of knowing what you want to do and then seeing that it is done in the best possible and cheapest way".

Koontz defined management in his book "The Management Theory Jungle." as "Management is the art of getting things done through and with people in formally organised groups." 

Henry Fayol gave the following definition of management in his book, "Industrial and General Administration." "To manage is to forecast and to plan, to organise, to command, to coordinate and to control." 

Peter Drucker defined management in his book 'The Principles of Management.' as  "Management is a multi-purpose organ that manages business and manages managers and manages workers and work." 

Mary Parker Follet defined management as "Management is the art of getting things done through people." 

Lawrence A Appley defined management as "Management consists in guiding human and physical resources into dynamic, hard hitting organisation unit that attains its objectives to the satisfaction of those served and with a high degree of morale and sense of attainment on the part of those rendering the service." 

Henry L Sisk defined management as "Management is the coordination of all resources through the process of planning, organising, directing and controlling in order to stated objectives."

Nature of Management

Mangement is considered as many form because of the following features

Management as Multidisciplinary

• Although, management is altogether a separate discipline but it draws knowledge and concepts from various disciplines such as psychology, sociology, economics, anthropologies, ecology etc. 
• Infact, management is an integrated system and a complete package of the ideas and knowledge generated from various disciplines.
• Management integrates the ideas, knowledge, skills and concepts from various disciplines and presents newer innovative concepts which can be put into practice for effective management in the organisation. 

Management Principles are Relative not Absolute

Management principles are applied keeping in view the time, place, socio-culture factors, individuals working in the organisation, nature of organisation itself and other environmental as well as economic conditions. 

Management as a Science or an Art

There is controversy between two different schools of thought whether management is science, art or a combination of both. 

Management is considered as science because of the following features 

• There is logical consistency.
• There is systematic explanation of activities. 
• There is critical evaluation of all aspects.
• There is experimental analysis of all statements.
• There is logical formulation of problems. o There is obvious deduction of specific hypothesis. 
• There is testing of every theorem. 
• There is logical illustration of every concept. 
• There is empirical confirmation of every theorem.
• There is continuous advancement through knowledge. There is proper proof, prediction, definition measurement and confirmation of all concepts like science. 

But principles of management are not as strict as the principles of science. They are subject to change while applying in different organisation and different locations, because of cultural and social difference. 

That's why management is referred as an applied science rather than a pure science. 

Management is considered as an art because of the following features 

• There is application of skills, concepts, theorems, principles and norms are not enough. 
• There is an ardent need of creativity and art in the hands of managers. There is need of experience and practice to get excellence. 
• There is involvement of feelings, guesses, descriptions, opinions, thoughts and expressions.

Management as Profession

There is existence of knowledge in the management concepts which is very important while handling managerial concepts skill or degree. 

Management is considered as profession on following ground 

• There is need to acquire a particular knowledge, to become good manager just like other professions as doctors and engineers.
• Now, various professional associations are also there to support the view of management as professor e.g., AIMA-All India Management Association and many more; the way they are with other professional domains. o There are specific ethical codes for management profession like other professions of doctors, advocates etc. 
• There are special and specific motives of this profession for the society. 

Universality of Management 

• Management principles are inevitable and necessary for all kinds of organisations. 
• Management principles are all pervasive and therefore applicable to all the levels of management as well as all the departments. 

Management is Goal Oriented

Management is a means to achieve certain goals which are termed as oranisational goals.

• These goals are achieved with the utilization of all available resources. 
• The management will be purposeful and successful only if the group goals or organisational goals are accomplished. 

Management a Social Process

• Management is to manage people, through people and for people.
• It becomes social process as it concerns internersonal relations very much. 
• Management is development of people not the direction of things; therefore the direct concern with society. 

Management as Dynamic Process 

• Management is a dynamic and on going process. The cycle of Management continues to operates so long as there is organised action for the achievement of groups goals.

Importance of Management

Basically, there are many importance of management which are as follows

Effective Utilisation of Resources 

• Management is to make optimum utilisation of all the available resources. 
• Management helps in creating and maintaining an environment conductive to highest productivity. 

To Incorporate Innovations

Management is not only science but an art also and therefore creates new ideas, new concepts, new products and new methods to improve the efficiency and achieve excellence.

Development of Resources

Management is a continuous process and does not stop anywhere. It believes there is always a scope of improvement and therefore it keeps on developing the available resources.

Integrating Various Team Groups

• Management is to integrate various individuals to work efficiently so that the group can realise its objectives. 
• Management looks for mutual co-operation and co-ordination among all group members. 
• Management is to reconcile the objectives of the group with those of its members so that each one is motivated and starts working towards accomplishing the objectives. 

Stability in the Society

Management is to manage people and the collective noun of people in society. Society is stable and imbibed with positive energy when people are managed.

Minimisation of Cost 

• In this cut throat competition it is very important to minimise the cost to allure the customer for the sustainable survival. 
• Management plays an important role in reducing costs and improving efficiency and thus enabling the enterprise to be competent to face competitions and earn profits. 

Employment Generation 

• Management plays an important role in setting up and expanding business enterprises and thereby opening new vistas of employment. 
• Management helps to satisfy the economic and social needs of the employees and thereby creating a happy and prosperous society. 

Development of the Nation

• Efficient management is the crucial factor for the economic and social development of the country. 
• Management may increase national wealth by increasing the income and living standards of people.
• Management is regarded as the key to the economic growth of a country.

Functions of Management

Basically there are five important functions of management which are as follows

• Planning
• Organising 
• Directing 
• Controlling 
• Staffing 

That's all for today friends. In our next lesson, we shall learn about the distinction between Management and Administration. Happy Reading :)

Shared by Mohana A. Nair

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