Management Meaning, Definition, Nature, Scope, Levels, Importance

Table of Contents:- 

  • Meaning of Management
  • Definition of Management
  • Nature of Management
  • Scope of Management
  • Functions of Management
  • Levels of Management
  • Skills of Management
  • Management as Science or Art
  • Management as Art
  • Management as Science
  • Management is Both Science and Art
  • Importance of Management

Meaning of Management

The term management stands for the act of planning, organising, directing and controlling the activities of human beings and physical resources to accomplish a predefined objective. Being broad the term management carries many contextual meanings.

It is looked upon as a class of persons, as factors of production, as a process and as an exploiting set of people from the viewpoint of socialists, economists, management practitioners and trade unionists, respectively.

Management is an activity or a process performed by a group of people collaborating with authorities to make decisions and policies. In further simplification, it can be stated that management is the job of a manager, who exhibits the art of managing people and getting things done with the help of formally organised groups of people.

Definition of Management

According to James D. Mooney and Allan C. Reiley, “Management is the art of directing and inspiring people”.

According to Louis Allen, “Management is what a manager does”.

According to Koontz and O’Donnel, “Management is the creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform efficiently and effectively toward the attainment of group goals. It is the art of getting the work done through and with people in formally organised groups”.

According to Peter Drucker, “Management is a multipurpose organ that manages a business, manages manager and manages workers and work”.

Nature of Management

The nature of management can be explained with the help of the points given below:

The Nature of Management is listed below:

  1. Management is a Continuous Process
  2. Management as a Career
  3. Management is Goal-oriented
  4. Management is a Human Activity
  5. Management is Universal
  6. Management is Dynamic
  7. Management is Decision-making
  8. Management is Discipline
  9. Management is both Science as well as an Art
  10. Management provides Guidance
  11. Management Denotes Authority
  12. Management Ensures Coordination
  13. Management is Primarily a Leadership Activity
  14. Management is Profession

1) Management as a Discipline

Management may not fit well in the context of a discipline like other physical sciences but its status is gradually increasing amongst the practitioners of management. In recent times, the status of management as a discipline has been increasing as it provides certified information and knowledge to management practitioners and also aims at discovering new aspects of the business world.

2) Management as a Science as well as an Art

Effective management combines elements of both art and science to balance creativity and analytical thinking effectively leading and guiding a team towards success. Management is an organised body of knowledge and states various facts and truths, it can be considered a science. Management is also an art, as it involves managing various processes which require different sets of skills by managers.

3) Management provides Guidance

Management provides guidance and explains how human and material resources can be utilised most efficiently. It suggests techniques for effective and economic utilisation of scarce resources to achieve the objectives of a business enterprise. It is the art of getting things done by achieving coordination among employees who carry out specific and diverse business operations.

4) Management Denotes Authority

Authority dictates and compels people to work and behave in a particular manner that is set by the management for them. Authority is the basis of effective management; without it, the managerial process cannot operate efficiently. Management gives the authority to the managers to guide, direct and control. This authority enables the management to attain a higher position in the hierarchy of any business organisation.

5) Management Ensures Coordination

Coordination is important at every organisational stage. Coordination among employees and departments is crucial for the smooth functioning of the business. Mutual harmony among employees enables an organization to achieve its organizational objectives effectively.

6) Management is Human Activity

Management can be termed as a human activity and the functions of management can only be performed by the organisational staff members. Thus, no artificial entities or corporate bodies are capable of carrying out managerial functions. It is an intangible activity that can be sensed or experienced rather than directly observed or physically interacted with.

7) Management is Dynamic

​Maintaining a consistent environment over a long period can be very challenging for every business. The business environment is in a continuous evolution state. Therefore, management must continuously adapt to every shift in the corporate world. Management tools and techniques play an important role in converting the threats associated with the environment into opportunities. Management must adjust itself according to the changing goals, requirements, and challenges faced by the business.

8) Goal-oriented

Every organisation has to attain a set of pre-determined goals. The success or failure of the management depends on the extent to which these objectives have been achieved.

9) Management is Primarily a Leadership Activity

Management is essentially the art of getting things done by people. One of the main. roles of a manager is to exercise leadership practice. Leadership is an important factor in the success of an enterprise. It is the process of influencing people to contribute to the achievement of organizational goals willingly. Some of the qualities of a good manager are willpower, knowledge, decisiveness, motivation, integrity, etc. An effective manager must possess the ability to inspire and guide a group of people towards maximising their potential.

10) Management as a Career

Management on its own is an excellent career option offering diverse growth opportunities. Management also offers insights into interesting, stimulating and specialised areas like human resources, marketing, finance, supply chain management, etc. These are all upcoming challenging areas and lucrative career options.

11) Management is Decision-making

Effective decision-making is an essential skill for every business manager, as informed and strategic decisions impact the success and growth of the entire organization. Decisions are based on the available. facts and figures and depend on the understanding and analysis of the managers. A variety of technical methods are used to determine the best decision for the overall success and improvement of the organization. For example, a finance manager is responsible for making decisions related to activities like organising funds, preparing budgets, cost control, etc.

12) Management is a Continuous Process

Management is a never-ending process. To effectively use financial and personnel resources, within an organization, a series of steps must be continuously followed such as planning, organising, staffing, directing, and controlling. All these functions are interdependent and one function cannot operate without the presence of the other. Hence, management is an unending process that follows several steps so that the problems are identified and resolved.

13) Management is a Profession

Management is a profession, it is not an inherent ability of an individual. Managers are not born; they are made by proper training and acquiring managerial skills. As management m is a discipline and body of knowledge, any qualified person can become a manager.

14) Management is Universal

The application of management is universal, i.e., it can be applied anywhere and everywhere. Every business activity, clubs, government offices, charitable or religious institutions, army, etc., come under the scope of management.

Scope of Management

The scope of management can be understood with the help of the following points:

1) Functional Areas of Management

The scope of management can be visualised in the following functional areas:

i) Personnel Management: Personnel management involves recruiting and selecting employees, training them, providing them with social security, ensuring labour welfare, maintaining industrial relations, etc. It is also responsible for conducting activities. like promoting, transferring, demoting. terminating and retiring the employees.

ii) Financial Management: Financial management involves financial planning, budgetary control, making cost control forecasts, managing earnings, statistical control, management accounting, etc.

iii) Production Management: Production management involves time-study, quality inspection and control, and production planning. motion studies, tools and techniques of production control, etc.

iv) Purchasing Management: Purchasing management deals with material control, inviting tenders for purchasing materials, entering into contracts, placing orders, etc.

v) Logistics Management: management deals with Logistics different components like material handling. warehousing, and order processing. transportation, inventory control, etc.

vi) Maintenance Management: It involves maintaining and taking good care of organisational infrastructure like machinery, plants, buildings, etc.

vii) Office Management: It involves activities like staffing, preparing office layouts, availability and maintenance of office equipment etc.

viii) Development Management: Development management involves conducting research, experiments, etc.

ix) Marketing Management: Marketing management is wide in scope and deals with marketing processes, marketing mix decisions, managing risks in marketing, market research, market planning and control, etc.

2) Management is an interdisciplinary approach

Management principles are based on multiple disciplines. For the successful application of management principles and practices, the study of different fields like psychology, economics, mathematics, commerce, etc., is very crucial.

3) Activity Point of View

Management principles. and practices can be used in the following functions and activities:

i) Planning: Planning activities involve formulating rules, objectives, policies, processes, strategies, etc. These activities. also help the managers in deciding what, how and when to achieve.

ii) Organising: Organising is the process of assigning designations by distributing work in the form of suitable duties.

iii) Staffing: Staffing activities. involve assigning human resources to the designations developed during the organising process.

iv) Directing: While directing, managers are responsible for leading the employees, guiding them and providing them with information regarding the do’s and don’ts of the organisation.

v) Controlling: Controlling involves comparing the results with the set objectives, detecting deviations if any, and taking corrective measures to remove them so that the actual results are equivalent to the set objectives.

4) Agent of Change

With the help of research and 5 development techniques, management concepts can be applied in different fields for change. traditional methods and implementing modern management practices.

5) Universality of Management

Management principles are universally accepted and hence, can be applied to any group activity to achieve common objectives.

Functions of Management

Every business organisation has its own predetermined goals to achieve. The realisation of those goals may not be possible without a concerted and unified effort from all members of the organization who follow the instructions of a central coordinating agency.

  1. Planning
  2. Controlling
  3. Organising
  4. Directing
  5. Staffing

For example, in the case of a football or hockey team, one cannot win the game until and unless there is a combined attempt by the players under the appropriate guidance of a captain of the team. The central coordinating agency in this context is management, and the approach to getting things done is known as the process of management.

Hence, management is a complex process that involves a series of activities performed in a particular sequence. Each activity plays an essential role in contributing towards achieving the organisational objectives. Individual actions or activities performed in the management process are designated as functions of management.

In the process of management, individual functions are carried out according to a time-specific arrangement. Thus, the management process can be referred to as a process. where the manager performs functions in a sequential time-bound manner.

Management is a social process as it is accountable for achieving the goals of the organisation by regulating its functions and also ensuring that the planning activities are being carried out cost-effectively and efficiently.

Management is an ever-changing process that involves various components and practices. The practices performed by management differ significantly from operational-level activities such as marketing, procurement, finance, production and more. These dynamic activities are performed by the top, middle and operative-level managers. The main functions of the management process are explained below:

1) Planning

The deliberate effort to attain the expected result through a predetermined future course of action is termed as planning. It involves visualisation of activities that need to be done, the methods for doing them, where they are to be done, what will be the outcome and the methods to evaluate the outcomes.

According to Henry Fayol, “every management should visualise a plan that comprises the desired result, foreseeing the line of action, methods to be adopted and stages to go through”.

2) Organising

Organizing is the second function of management, involving planning, dividing and re-dividing work into smaller tasks, developing strategies, distributing tasks among designated staff, and allocating authority to every position to ensure its proper functioning.

With proper organising, the effectiveness of the company is enhanced, repetition, redundancy and duplication of the operations is avoided; thereby reducing the operating cost of the company. It is the responsibility of the management to organise the required resources beforehand and then to follow the planned activities.

3) Staffing

It is the process of selecting and appointing people for the positions formed by the process of organisation. Staffing is the process of recruiting, deploying and retaining sufficient and qualified employees or staff to create and maintain a favourable working environment thereby improving the organisational effectiveness. In large companies, the staffing process is carried out by coordinating with the human resource department.

4) Directing

Effective direction is an essential component for achieving the desired goals. After the orientation, the role of senior manager is important as they guide and motivate the team members to improve their performance and develop a sense of motivation, passion, confidence, and enthusiasm towards their work. 
Directing motivates the employees to perform their responsibilities towards realising the organisational goals. While planning. organising and staffing are the preliminary functions of the actual business activities, direction adds a spark to the organisation by bringing the processes into motion.

5) Controlling

The role of the manager of wide and therefore incomplete even when the above-explained functions of management are in place. The manager needs to review and assess the organisational activities regularly and take necessary steps to ensure that the plans are being carried out in. compliance with the predetermined path.

Controlling is a process that ensures tasks are performed as per expectations and checks for current and future deviations. The controlling function helps the management in identifying the deviations if any, and make necessary adjustments to achieve organizational goals.

Levels of Management

Every organisation has a chain of command which determines the powers and the ranks held by the managerial personnel. Levels of management can be divided into the following categories:

1) Top Management

Top level management involves the senior people that hold the highest managerial positions within an organization. This position is held by the senior authorities in an organisation including the Board of Directors, Chief Executive Officer (CEO), sectional heads, etc. They are involved in the long-term planning, laying down policies and strategies for organisational development and selecting methods to be adopted for achieving the objectives. They act as a medium of communication for maintaining relations with external suppliers and agencies. Being the leaders of the organisation, they are accountable for good or poor performance of the organisation.

2) Middle Management

Departmental heads form the middle level management. They are responsible for giving instructions to departments, monitoring and maintaining coordination between the various activities in the several units and divisions of middle level. Middle level managers play the role of the mediator between top level management and lower level management. They convey the decisions taken by the top management and explain their importance to the lower level management they ensure decisions are communicated, understood, and implemented.  They also transmit the feedback and suggestions provided by supervisors to senior leadership. Their role is to motivate, inspire and encourage the operational level managers to increase their performance levels.

3) Supervisory or Operative Management

First-line supervisors like superintendent, section. officer, foreman, supervisor, etc., come under the operative management level. The instructions and guidelines set by the middle level management are followed by the lower level management.  They are responsible for ensuring the tasks performed by the workers are efficient and on time. Middle level managers are responsible for coordinating production activities, assigning jobs, arranging equipment, and other related tasks. It is the responsibility of these managers to get the work done of the desired quality in a specific period. They provide technical assistance to the workers; ensure availability of necessary facilities; report problems and offer feedback to the higher level authorities, etc. It is also a part of their job description to prepare a daily plan of action as per the guidelines specified by senior-level managers.

Managerial Skills /Skills of Management

To transform an idea into action successfully individual talent and skills are required.  Individuals cannot possess all the qualities and skills required for success. However, an individual who understands these skills and is willing to learn can acquire them through training and conscious efforts. Proper training and development can sharpen the skills of managers. A manager should possess social skills, motivational skills, communication skills, etc., to discharge his duties and responsibilities effectively. The various skills required by a manager are grouped into three broad heads technical skills, human-relations skills and conceptual skills. These are discussed below in detail:

1) Conceptual Skills

These skills are related to ideas. The thought process behind developing new and innovative products is called conceptualising. Conceptual skills are also known as soft skills and are not easy to identify. These skills are present in the form of vision, inspiration, idealistic ideas, imagination, etc.  These skills are also known as general management skills, which help managers visualize small elements present in a situation and the interdependence of these elements. This helps the manager understand the situation from a broader perspective.

2) Technical Skills

Technical skills are also known as hard skills. It refers to the specific knowledge, skills and expertise in particular subjects or areas. This subject matter expertise is essential for managers to effectively perform their responsibilities. Technical skills are related to the knowledge and proficiency in the various techniques, processes, procedures, and methodologies within a specific field of expertise. Technical skills can be enhanced by proper training and on-the-job experience. Professionals like engineers, architects, accountants, etc., possess the knowledge required to perform their job but the skills are developed further by actually practising. the work. For example, if a person is responsible for maintaining inventory in an organisation then he must possess the required technical skills to efficiently maintain the flow of inventory.

3) Human Skills

A manager should be social and friendly towards his subordinates. He should understand people and develop positive interpersonal relationships with them. A manager should have the capacity to clearly explain his ideas to his subordinates. He should have the ability to judge the possible outcomes of his actions. A manager should have self-evaluation skills so that he can analyse and develop his behaviour and attitude. Human skills are consistently required by managers at every level of management.

Thus, human skills are relation-based, conceptual skills are idea-based and technical skills are action-based. However, every person may not necessarily possess these skills in equal proportion to become a successful manager. Every skill may be present in varying amounts depending upon the personal and professional background of the individual. Thus, a manager should possess management skills in the proportion required to perform his roles and functions. Top level management is expected to possess skills which may not be expected by the lower-level management, and vice versa.

The importance of these skills differs from the top to the bottom of the organisational hierarchy which can be understood as follows:

1) Managers at the operational level should possess more technical skills in comparison with ‘conceptual skills which are rarely used at this. management level. The managers at the supervisory level are in direct contact with the subordinates to provide proper assistance and guidance. Thus human skills’ are also extremely significant at the operational level for creating cooperation and mutual understanding between the management and the workers.

2) Middle level management acts as an intermediary between the top-level and lower level management. Thus, human skills are very important at this stage. It is the responsibility of the middle level managers to understand the decisions taken by the senior authority and convey the same to the workers. Also, ‘conceptual skills’ are required at this level as the managers have to develop and implement various techniques to increase production levels.

3) Managers at the highest hierarchy level require conceptual skills to develop novel ideas to accomplish the predetermined standards of the organisation. They need to select various policies and strategies for long-term planning. Inter-personal skills are also required to manage the activities carried out in the organisation and also to maintain cordial relations with external agencies efficiently and effectively.

However, technical skills are required at a minimal level because employees are not in direct contact with supervisory staff. They deal with planning cost-effective techniques to achieve shared goals and deliver high-quality products to consumers.

Management as Science or Art

Many theorists and logicians have contributed their thoughts to classifying management as a science. while many other philosophers and theoreticians believe that management is an art. The classification of management as an art, a science, or a combination of both has become an argumental discussion which is not yet resolved. For understanding and determining the management process, it is essential to accurately identify its fundamental nature as an art, science, or both. However, there is a significant difference in the learning processes of both fields. Learning an art is a matter of continuous practice while learning a science involves the integration of numerous scientific principles.

Management is difficult to understand. It cannot be definitively categorized as a science or an art. However, many experienced business professionals believe that management is indeed an art. They consider it as a natural expression of human behaviour, which is at times, incredible, Management as an art is flexible, creative and spontaneous.

Likewise, managers are considered as artists and leaders, who develop innovative ideas for fulfilling their organisational requirements.  By developing essential skills and acquiring knowledge, these managers are accustomed to their business environments and know how to predict and effectively address complex situations that may arise.

Although management is not an exact science like chemistry, biology, or physics, yet, it can be categorised as science, as it is based on various principles and considered as a well-organised body of tests, experiments, knowledge and observations.

The following factors differentiate management as science or art:

1) Science is considered a system of acquiring knowledge, whereas art articulates and expresses knowledge in the form of distinct individual representations.

2) Art is individualistic, flexible, and emotional, while science is considered a rational, unbiased, and experimental field.

3) Science is objective, while art has a subjective nature.

4) Art does not provide solutions to particular problems. Instead, it creates more open-ended thoughts and opinions. It is an instrument of self-expression and links the inner expressions of a person with the external world. However, science facilitates in explaining all the natural phenomena and methodical processes happening around the whole universe.

Management as Art

Art involves the application of both skills and knowledge which is essential for achieving a particular objective. The essential elements of art are given below:

  1. Practical Knowledge
  2. Result-Oriented Approach
  3. Personal Skills
  4. Improvement through Practice

1) Personal Skills

All artists have different. personal styles or approaches to performing their tasks. Even if they hold similar training skills or qualifications, their skills differentiate them from each other. In the same way, management is individualistic as every manager possesses a unique methodology and approach to resolving organisational issues. Thus, it is a combination of technical knowledge and personal skills which helps a manager to become successful.

2) Practical Knowledge

Practical knowledge is. evident in every art form. Along with learning theories, artists also practice their applications. In the same way, for a manager to accomplish his targets, practical knowledge is important and not merely learning management theories or becoming a management graduate can solve the purpose. Management personnel are often evaluated based on how efficiently they use their practical knowledge. Hence, they should apply their practical experience and knowledge to effectively resolve managerial challenges.

3) Improvement through Practice

An artist can improve his piece of work by practising it over and over again. This will lead him/her towards perfection. In the same way, a manager can develop perfection by regularly practising business-related processes.

4) Result-Oriented Approach

Art can produce definite and concrete results. A management process is designed to achieve its pre-determined objectives. To attain such objectives, every manager of an organisation utilises his expertise and talent. He/she skillfully employs factors of production for organisational development and achievement of goals. Thus, art is result-oriented.

5) Creativity

All art forms are creative. Every artist tries to create something unique and original, for which, focused imagination and intelligence are required. Likewise, management also involves creativity, similar to all other art forms. Creative integration and coordination of all factors of production aid a manager in producing different products and services. Thus, understanding and convincing people at work is a creative high-order art form.

Management as Science

Science is a systematically organised body of knowledge regarding a particular field of study. It comprises common facts and principles that describe a particular event or happening. These facts and principles develop a cause-and-effect relationship between various elements.  In addition, they help clarify past events and can be instrumental in predicting results. For developing the principles of science, various scientific methods of experiments. and observations are used. Such scientific principles are universally applicable.

The key features of the principles of science are listed below:

1) It generates a cause-and-effect relationship among two or more factors.

2) Scientific principles and facts act as a credible guide for anticipating future happenings as they possess universal reliability and validity.

3) It consists of universally applicable principles and commonly known facts.

4) It evolves through several scientific experiments and observations.

The following points determine the extent to which management fulfils the above-mentioned conditions:

1) Universal Principles

Scientific principles represent the fundamental concepts related to a particular field. These principles are objective and illustrate the best concepts of a subject. They can be applied anytime, almost in every situation, and hence are considered universal principles. Similarly, management also comprises fair and reliable universal principles. These principles, however, need certain changes and modifications according to varying business situations.

2) Cause-and-Effect Relationship

Similar to scientific principles, under which all the elements and factors are interrelated with a cause-and-effect relationship, the variables of management also exhibit interconnectivity through cause-and-effect relationships. For example, the management of a firm can become inefficient due to an improper balance of power and duty.

3) Scientific Enquiry and Experiments

Systematic enquiries and scientific experiments form the basis of scientific principles. These principles ensure an impartial evaluation of any problematic situation.  Also, the selected remedial measure can be logically explained. These principles undergo analytical testing and are scientifically approved. They are not framed by random thoughts of individuals or religious Maharishis; rather they are formulated based on scientific enquiry and experiments. Similar to scientific principles, management principles are also established based on research-based examination and analysis. Numerous experiments and practical experiences of several managers contribute towards the formulation of these management principles.

4) Systematic Body of Knowledge

Comprising common principles and business strategies, management is a systematic body of knowledge. These principles and methods act as policies for all levels of managers and enable them to effectively manage various corporate situations.

5) Tests of Validity and Predictability

Scientific principles will always give the same outcome when tested several times. They have high credibility and predictability. They also help in predicting future events with rational accuracy. Similarly, the validity and predictability of management principles can also be evaluated, as they are also universally applicable. For example, if two different individuals, one with two bosses and the other with a single boss, are evaluated based on unity of command, then. a person with a single boss will perform higher than the other. This outcome is the same for all business situations.

Hence, it can be certainly concluded that management is a science, as it consists of various managerial principles which form a systematic body of knowledge. However, these principles are sometimes moulded, to apply them to different business situations. Therefore, management is identified as a soft science and also well-known as a social science.

Management is Both Science and Art

Management integrates the characteristics of both. art and science. A sensible integration of both art and science produces efficient management. In. such integration, science plays the role of providing basic principles and art guides to managers in their implementation.

The principles essential for managing are contributed by the systematic body of management knowledge, such as strategies for motivating employees towards work. However, every manager uses them in their unique way, like an art. These principles decrease the manager’s reliability on perceptions and provide the right directions, but, it requires continuous practice to produce effective management,

According to Koontz and O’Donnell, “Essentially managing is the art of doing and management is the body of knowledge that underlies that art”.

Potential businesspersons and working managers. should learn various managerial principles provided by management as a science.

This is the reason that the conventional proverb, “managers are born” is rejected and is then replaced by another proverb “managers are made”, as individuals can be trained to become managers. However, according to the concept of art managers can achieve success only when they continuously practice these principles. Hence, managerial principles provided by management science should be supported by their consistent practice as well as creativity for efficient management.

Importance of Management

Management plays an important role in the growth. and welfare of an organisation. The importance of Management is listed below:

  1. Motivates to Take Initiative
  2. Helps in Expansion and Growth
  3. Improves Corporate Image
  4. Reduces Wastage of Resources
  5. Enhances Employee Relations
  6. Fosters Teamwork

The importance of management is described as follows:

1) Encourages Innovation

Innovation is essential in today’s competitive business environment. Management facilitates the introduction of new ideas. and concepts; use of new and productive methodologies; installation of advanced technologies; launch of innovative products and services; etc. Hence, it can be said that management has an important role in maintaining the competitive position of the organisation.

2) Improves Corporate Image

Efficient management helps in providing good quality products and services to the consumers. Offering the best goods and services at reasonable and economical prices creates a good image of the organisation in the industry. This leads to improvement in the brand image and goodwill of the company. A good corporate image creates many opportunities for the organisation and creates a dominant position in the market.

3) Improves the Standard of Living of the Employees

Management ensures that the profits earned by the organisation are also shared with its employees. Management inspires the employees by improving the working environment and conditions which in turn ensures their productivity. It also offers non-financial and financial incentives to satisfy their monetary and non-monetary needs. Thus, satisfying the monetary needs of the employees along with offering them psychological and emotional satisfaction improves their standard of living.

4) Reduces Wastage of Resources

There are three main types of resources used in every organisation víz, physical, human and financial resources. The planning and controlling function of management should be efficient so that the resources are utilised efficiently. Each management activity if conducted as per the predetermined standards and norms will reduce wastage and spoilage of resources and increase organisational productivity. This will enable the organisation to provide high-quality products at competitive prices to the customers.

5) Helps in Expansion and Growth

By exercising. proper managerial skills, a manager can ensure effective and efficient use of resources. Since each activity is performed as per the predetermined norms and standards, there is a reduction in the wastage and spoilage of the resources. Management motivates the employees to give better performance and attempts to reduce absenteeism and employee turnover. These activities in turn enhance the growth and growth prospects of the organisation.

6) Enhances Employee Relations

Management helps in establishing proper coordination between the various sections, divisions, and departments of the organisation. Cordial relations between the top level, middle-level level and lower level management results in a sense of team spirit among employees, Each department and employee is governed by the standards laid down by management that are designed to coordinate with one another. Effective cooperation and coordination between employees at different levels of management results in the overall productivity of the organisation.

7) Improves Efficiency

The cost involved in an activity and the returns expected are directly proportional to the efficiency with which the activity is conducted. Higher efficiency helps in achieving higher profitability returns at minimum cost. Managers can increase organisational efficiency by using different managerial tools. and techniques. Thus, managerial activities contribute to the overall success, bring prosperity and provide benefits to the employees within an organisation.

8) Promotes Motivation

Employees can be encouraged by providing financial and non-financial incentives to increase their work. efficiency. Financial incentives (like bonuses, profit sharing, allowances, etc..) and non-financial incentives (including promotion, career development and advancement opportunities, job security and stability), both contribute positively towards improving the performance and efficiency of the employees. These incentives give a feeling of empowerment to the employees regarding their role within the organization. This results in increased productivity and profits.

9) Fosters Teamwork

Management motivates its employees to work in a team, which increases coordination among team members and ultimately boosts productivity. Unity among the team members is essential for achieving the common objectives of the organisation.

10) Motivates to Take Initiative

To do an activity without being influenced or motivated by someone is termed initiative. Management always encourages employees to take the initiative to perform activities that are new yet beneficial for the organisation. Management encourages the employees to formulate new plans, and strategies and implement them for the benefit of the organisation without being influenced by the higher authorities. Self-induced activities give a sense of contentment to the employees and thus, encourage them to continue doing such work and bring success to the organisation.

11) Decreases Employee Turnover and Absenteeism

Management is always practising different ways to reduce absenteeism and employee turnover. Absenteeism means remaining absent. from the service without obtaining prior permission from the senior management. Labour turnover means the rate at which the workers or employees leave the organisation. The main reason for turnover is lack of motivation. If managers. identify the motivational needs of employees and provide suitable incentives, employees will not think of leaving the organisation. Reduction in turnover helps to minimize the expenses associated with the cost of new recruitment. Management provides good working conditions. which helps in reducing absenteeism.


1. What is the nature and scope of management?

The nature and scope of management involve various factors used for guiding and coordinating organisational resources and activities towards fulfilling organisational objectives. The Nature of Management is Process-Driven, Universal and Social Process, Goal-Oriented and Dynamic. The scope of Management involves Functional Areas, Management Levels, Resource Utilization, Performance Management and Organizational Culture.

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