Meaning of Management || What is Management

Introduction

(Management is an essential part of any goal oriented activity. Every organisation requires planning of activities, organisation of resources, establishment of communication system, leading and motivation of people, and control of operations for the realisation of its goals or objectives) This chapter is modest attempt to present the meaning, objectives and basic nature of management and to describe the roles of managers at different levels of management in the organisation.

MEANING OF MANAGEMENT

(The term 'management' has been defined differently by different authors. Traditional authors define it as an art of getting things done whereas modern authors define it as a process of accomplishing certain objectives through the utilisation of human and other resources.

Modern Definition

Modern management writers consider management much more than getting things done through others. Managing involves creating a conducive environment in the organisation whereby individuals are motivated to work efficiently for the achievement of organisational objectives. To quote Harold Koontz and Cyril O'Donnell, "Management is the creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform efficiently and effectively towards the attainment of group goals."

Management is the process of getting things done with the aim of achieving organisational objectives effectively and efficiently. The basic elements of this definition are discussed below:

(i) Process. The term process in the definition means the primary functions or activities that management performs to get things done. These functions are planning, organising, staffing, directing and controlling which we will discuss later in the chapter.

(ii) Effectiveness. Being effective or doing work effectively means finishing the given task. Effectiveness in management is concerned with doing the right things completing activities and achieving goals. In other words, it is concerned with the end result.

(iii) Efficiency. It means optimum utilisation of resources in performing the given task. It signifies the relationship between inputs and outputs. Efficiency would be greater if less inputs are used to produce the required amount of goods or if more goods are produced with the given input.

(iv) Organisational Objectives. The modern concept of management insists that all the activities of managers must be directed towards the achievement of organisational goals these goals should be considered as common goals of all employees.

Effectiveness vs. Efficiency. These two terms are different but they are interrelated. For management, it is important to be both effective and efficient. Effectiveness and efficiency are two sides of the same coin. But these two aspects need to be balance and management at times, has to compromise with efficiency. For example, it is easier to be effective and ignore efficiency, i.e., complete the given task but at a high cost. Suppose, a company has two units to produce colour TVs and each has a target of 4,000 units per month. If the first unit achieves this target at the cost Rs. 6,000 per unit as compared to the second unit which achieves the target at the cost of Rs. 6,500 per unit, the first unit would be considered more efficient.