Nature of Management
Management is the process of getting things done through others in a systematic manner for achieving predetermined objectives. In other words, all the activity done by the managers such as planning, organizing, staffing, directing, and controlling is management. According to George R. Terry, “Management is a distinct process consisting of planning, organizing, activating and controlling perform activities to determine and accomplish stated objectives by the use of human beings and others resources.”
Management is known as backbone of an organization. The functioning of an organization depends on its management system. An efficient management system is essential for successful functioning of an organization. For example, when we say; Unilever Nepal Ltd. is reputed company of Nepal, it means management system of this company is effective.
Characteristics of Management
The common characteristics of management involves
- universal activity,
- social process,
- dynamic activity,
- group activity,
- distinct process,
- both science and art,
- a profession,
- multi-disciplinary in nature,
- both tangible and intangible are the common features of management.
Management: Science, Art or Profession
There are controversy and variation among scholars whether management is a science, an art, or a profession. Some have opinion that it is science i.e. social science, some have opinion that it is an art or skill, and others have opinion that it is a profession.
Management as Science: Science is a systematized body of knowledge, principles and truth which are experimentally proved. The basic principles of management are based on scientific observation and experiment and are applied in all types of organisations. So it is a social science as it deals with people and their behavior. Following are the features of science which are also covered by management:
- Existence of systematized body of knowledge,
- Basic truth and universally applicable principles
- Use of scientific methods of observation
- Principles based on experiment and research
- Established cause and effect relationship
Management as ART: Art is a skill, talent, and intellectual work for the practical implementation of theoretical knowledge to achieve specific objective. The main motive of art is to come into a specific result through deliberate effort. It needs creativity and personalized process and style. The main features of art which are covered by the management are
- existence of practical knowledge,
- personal skill,
- result-oriented approach,
- improvement through practice.
Management as Profession: A profession may be defined as an occupation of specialized and personal nature of service for which there is a fee called professional charge is to be paid. The examples of profession are occupation of lawyer, doctors, engineers, accountants, etc. The common features of profession which are covered by the management are
- specialized knowledge,
- formal education and training,
- representation of association,
- service element/social obligation
- ethical standards
Management and Administration
In general terms, there is no fundamental difference between management and subordinates. However, there is controversy among scholars regarding the concept of management and administration.
According to the American point of view, management, and administration are two different concepts. Administration concentrates in higher level authority. Management is the part of subordinate level authority and has responsibility to direct and control human efforts for execution of plans and policies lay down by administration.
According to the British point of view, management is a comprehensive term which includes both administration and entrepreneurship. They have view that administration is the part of management which is concerned with providing guidance for formulation of plans and policies and for the development of strategy to achieve goal. It is the function which covers middle and in some extended lower level management
According to the modern concept, management, and administration are same concept. There is no basic or fundamental difference between them. Both are intellectual and mental concepts. If any difference is there between management and administration it is only in terminology.
Generally, the term administration is used in government and legal organizations whereas the term management is used in social and business organizations.
Functions of Management
All the managerial activities from setting of objectives to taking necessary steps to ensure for achieving organizational objectives are managerial functions. The common functions of management are
- directing (supervision, motivation, leadership, communication, coordinating),
Levels of Management
Except in small scale organizations, management hierarchy is divided into different levels and in each level, a manager or head is appointed. According to nature and size of the organization, management system may be divided into three levels
- top level
- middle level, and
- lower level
Top level management is constituted with a management committee elected directly from shareholders as members of board of directors. Besides, this level also involves chief executive like chairman managing director or general manager. This level of management is responsible for welfare and development of the organization
Middle level of management consists of departmental heads like personnel manager production manager, marketing manager, finance manager, procurement manager and similar other positions. This level plays the role of mediator between TOP level management and first-line management.
Subordinate level management is known as first-line or operating level management. This level consists of supervisors foreman, sales officers, account officers superintendents, and other operational heads. They are responsible for the implementation of plans and strategies developed by the middle-level management This level is directly responsible for the completion of works and planned objectives.