Big picture
Every organisation, whether a school, a hospital, a cricket team or a company, has goals and limited resources. Management is the process of getting things done through others, effectively and efficiently, to achieve those goals.
Board exams test this chapter mainly through case studies: a short story about a business, followed by "identify the characteristic", "identify the level", or "which objective is being met?". So learn every concept together with a recognisable example.
Learning goals
Define management and distinguish efficiency from effectiveness.
Explain the seven characteristics of management.
Explain the organisational, social and personal objectives of management.
Explain why management is important.
Examine management as an art, a science and a profession.
Describe the functions of top, middle and supervisory (operational) management.
Outline the five functions of management.
Explain coordination: its nature and importance.
Core ideas
1. Concept: effectiveness and efficiency
Management is a process of getting things done with the aim of achieving goals effectively and efficiently.
Process: a series of functions — planning, organising, staffing, directing and controlling.
Effectiveness: completing the job, achieving the target on time. It is about the end result.
Efficiency: doing the job with minimum cost, using resources (money, time, materials) without waste. It is about the input–output ratio.
Situation | Effective? | Efficient? |
|---|---|---|
A bakery delivers 1,000 cakes for a wedding on time, but wastes flour and pays heavy overtime | Yes | No |
A bakery bakes cakes at very low cost, but delivers them a day late | No | Yes |
A bakery delivers on time at a low cost | Yes | Yes |
A good manager aims for both. Focusing on one at the expense of the other is a common failing.
2. Characteristics of management
Characteristic | Meaning | Example |
|---|---|---|
Goal-oriented | Management exists to achieve definite goals | A shoe company aims to raise market share from 10% to 15% this year |
All-pervasive | Management is needed in every type of organisation, at every level, in every country | A temple trust, a hospital and a software firm all need management |
Multidimensional | It manages work (the task to be done), people (as individuals and groups) and operations (the production process) | A restaurant manager sets targets, handles staff, and organises the kitchen |
Continuous | The functions are performed again and again, without end | Managers plan, organise and control every day |
Group activity | It works through people with different needs towards common goals | A project team of designers, engineers and marketers |
Dynamic function | It adapts to a changing environment | A restaurant chain adds vegetarian menus in a new region |
Intangible force | It cannot be seen, but its presence is felt in how well things run | Targets met, staff satisfied, the office runs smoothly |
3. Objectives of management
Type | Meaning | Examples |
|---|---|---|
Organisational | Achieving the organisation's own goals by using resources well | Survival (earning enough to cover costs), profit (to cover costs and risks), growth (sales, employees, products, capital) |
Social | Creating benefit for society | Environment-friendly production, jobs for disadvantaged groups, schools and dispensaries for employees' families |
Personal | Meeting the diverse needs of employees | Fair pay (financial needs), recognition and peer relations (social needs), personal growth and development (higher-level needs) |
4. Importance of management
Helps achieve group goals: it gives direction to the efforts of individuals towards common goals.
Increases efficiency: it reduces costs and raises productivity through better planning, organising and control.
Creates a dynamic organisation: it helps the organisation adapt to change, and people accept it.
Helps achieve personal objectives: motivation and leadership help employees meet their own goals while working for the organisation.
Helps in the development of society: it provides good-quality products, creates jobs, adopts new technology and supports growth.
5. Management as an art, a science and a profession
As an art. Art is the skilful and personal application of existing knowledge to achieve results.
Feature of art | Applied to management |
|---|---|
Existence of theoretical knowledge | There is a lot of literature on management |
Personalised application | Each manager applies the knowledge in their own way |
Based on practice and creativity | Managers improve through practice and creative thinking |
Management satisfies all the features of an art.
As a science. Science is a systematised body of knowledge with principles based on cause and effect, tested through experiments.
Feature of science | Applied to management |
|---|---|
Systematised body of knowledge | Management has its own theory and principles |
Principles based on experimentation | Principles came from observation and repeated testing |
Universal validity | Management principles are not exact; they depend on human behaviour and situations |
Management is an inexact (or soft) science: it has systematic knowledge and tested principles, but they are not universally valid in the way physics laws are.
As a profession.
Feature of a profession | Applied to management |
|---|---|
Well-defined body of knowledge | Yes; management is taught in colleges |
Restricted entry (exam or degree) | No; anyone can become a manager without a specific degree |
Professional association | Partly; the All India Management Association exists, but membership is not compulsory |
Ethical code of conduct | Partly; there is no code that every manager must follow |
Service motive | Partly; profit is the main goal, though serving society is increasingly stressed |
So management does not fully meet the features of a profession, though it is moving in that direction.
6. Levels of management
Level | Who | Main functions |
|---|---|---|
Top | Chairperson, CEO, managing director, board of directors | Integrate diverse elements; set overall goals and strategies; responsible for the welfare and survival of the organisation; analyse the business environment |
Middle | Divisional and departmental heads, plant superintendents | Interpret the policies of top management; ensure their department has the necessary personnel; assign duties to subordinates; motivate them; cooperate with other departments |
Supervisory (operational) | Foremen, supervisors | Directly oversee workers; maintain quality of output and minimise wastage; ensure safety; pass on workers' grievances to higher levels; maintain discipline |
The supervisory level is the link between management and workers, so it has a direct effect on the quality of work.
7. Functions of management
Planning: deciding in advance what to do and how to do it.
Organising: assigning duties, grouping tasks, establishing authority and allocating resources.
Staffing: finding and placing the right people in the right jobs.
Directing: leading, motivating, communicating with and supervising employees.
Controlling: monitoring performance against plans and taking corrective action.
Each of these has its own chapter. Remember that they are performed in a cycle, and planning and controlling are closely linked.
8. Coordination: the essence of management
Coordination is the force that binds all the functions of management and synchronises the activities of different departments and individuals. It is not a separate function; it runs through all five.
Example. A mobile phone launch fails if marketing advertises the launch date before production can make enough phones. Coordination ensures purchase, production, finance and marketing work to the same timetable.
Characteristics of coordination
Integrates group efforts into united action with a common focus.
Ensures unity of action: everyone works towards the same objectives.
Is a continuous process: it starts at planning and goes on until control.
Is an all-pervasive function: needed at all levels and in all departments.
Is the responsibility of all managers: top managers coordinate the whole organisation, middle managers their departments, supervisors their workers.
Is a deliberate function: managers must coordinate consciously; even willing cooperation needs coordination to be useful.
Why coordination is needed (importance)
Growth in size: the more people and departments, the harder it is to keep everyone aligned.
Functional differentiation: departments like production, finance and marketing have their own objectives, which may conflict.
Specialisation: specialists often think only of their own field, and their work must be combined into a whole.
A reliable approach to case-based questions
Underline the key phrase in the case ("in every country", "on time but at high cost", "adapts to the new tax").
Match it to the concept: characteristic, objective, importance, level, function or coordination.
Quote the line from the case that supports your answer.
If asked for "values", look for social objectives such as caring for the environment or employing the disabled.
Connections that matter
Principles of management gives managers guidelines for carrying out these functions.
Planning, organising, staffing, directing and controlling each have their own chapter.
Business environment explains why management must be dynamic.
Common mistakes
Mixing up efficiency and effectiveness. Efficiency is cost; effectiveness is completing the target on time.
Calling management an exact science. It is an inexact science.
Calling management a full profession. Restricted entry is the clearest missing feature.
Treating coordination as a sixth function. It is the essence of all functions.
Saying coordination is only top management's job. It is the responsibility of every manager.
Revision checklist
I can define management and explain efficiency and effectiveness with an example.
I can identify all seven characteristics in a case.
I can classify objectives as organisational, social or personal.
I can explain management as an art, an inexact science and an emerging profession.
I can list the functions of each level of management.
I can explain the characteristics and importance of coordination.