Nature and Significance of Management - Class 12 | Testbook.com

Understanding Management

Management is an essential element in both our personal and professional lives. It is the backbone of successful businesses. It involves organizing and coordinating activities to achieve specific goals efficiently and effectively. In a nutshell, management is about getting things done with and through others.

It's worth noting that the scope of management extends beyond business organizations. It is equally applicable to all types of administrative and supervisory tasks, ranging from running a small business to managing a large corporation or even a country.

Main Features of Management

• Universal Phenomenon: Management is a universal phenomenon that forms an integral part of any organized activity. Whether it's a small non-profit organization or a multinational corporation, management principles are applicable everywhere.
• Essential Resource: Skilled and experienced managers are indispensable for the optimal utilization of resources and labor.
• Goal-Oriented: Every management activity is directed towards the achievement of specific goals. These goals need to be realistic and achievable.
• Command and Control: Managers set goals and then guide their team to achieve them. They need support from all levels of management for successful implementation.
• Authority Structure: A well-defined authority structure with clear lines of command and control at all levels of decision-making is crucial for effective management.
• Profession: Managers need to possess certain skills and adhere to a code of conduct. They should also be aware of their social and human responsibilities.
• Process: Management is a process consisting of a series of activities directed towards achieving a goal.

Importance of Management

• Accomplishing Group Goals: Management helps in aligning individual objectives with the organization's goals. It promotes teamwork and coordination among employees.
• Improving Efficiency: By managing resources optimally, management helps in reducing costs and enhancing productivity.
• Creating a Dynamic Organization: Management helps in adapting to changes and ensures that these changes are well received within the organization.
• Fulfilling Personal Objectives: Management provides motivation to employees to perform efficiently, thereby helping them achieve their personal goals alongside the organizational objectives.
• Societal Development: Management contributes to societal development by producing quality goods, creating job opportunities, and adopting new technologies.

Characteristics of Management

Let's delve a little deeper into the characteristics that set management apart:

• Goal-Oriented Process: Management is always directed towards achieving specific goals. These goals are the reason for the existence of an organization. For example, a hospital's goal might be to provide quality healthcare, while a university's goal might be to provide quality education.
• All-Pervasive: Management principles are applicable to all types of organizations - be it a business enterprise, a hospital, a hotel, or a college. The scale or nature of operations doesn't affect the applicability of management functions.
• Continuous Process: Management is a continuous process that involves a series of functions like planning, organizing, staffing, directing, and controlling. These functions are performed by all managers irrespective of their levels.
• Intangible Force: Management cannot be seen, but its effect can be felt in an organization where tasks are performed as per plans, employees are satisfied, and there is orderliness instead of chaos.
• Group Activity: Management involves working in groups towards the achievement of pre-determined goals. It is not an individual activity but a collective endeavor.

Understanding the nature, significance, and characteristics of management can be instrumental in achieving both personal and organizational objectives.