Quick summary
Management is the process of getting things done through and with people by planning, organising, staffing, directing and controlling resources to achieve goals efficiently and effectively. This topic covers the meaning, nature and importance of management, whether it is a science, art or profession, the difference between management and administration, the levels of management and the skills a manager needs.
Key points
- Koontz and O'Donnell: management is "the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims".
- Nature: goal-oriented, universal, continuous process, group activity, intangible, dynamic, multidisciplinary, a system of authority.
- Management (व्यवस्थापन) is both a science (systematic body of knowledge, principles) and an art (personal skill, practice, creativity); it is an inexact (social) science.
- Management as a profession: has specialised knowledge and formal education (MBA), but lacks compulsory licensing and a single binding code of conduct, so it is only partly a profession.
- Functions (Koontz): planning, organising, staffing, directing, controlling; coordination is the essence of management.
- Levels: top (board, CEO – policies and goals), middle (department heads – implement plans), lower/operative (supervisors, foremen – direct workers).
- Skills (Robert Katz): technical (most at lower level), human (needed at all levels), conceptual (most at top level).
- Management vs administration: administration decides policies and goals (thinking function, top level); management executes them (doing function, middle and lower levels). In practice both overlap.
- Importance: achieves goals, optimum use of resources, reduces cost, creates a sound organisation, helps growth and development of society.
- Management ethics: honesty, fairness to employees, customers and society.
Important terms
- Efficiency – doing work with the least cost and resources ("doing things right").
- Effectiveness – achieving the goal on time ("doing the right things").
- Coordination – harmonising efforts of different people and departments.
- Professionalism – managing on the basis of expertise and ethics rather than family ownership.
Key facts
| Level | Who | Main skills |
|---|---|---|
| Top | Board, MD, CEO | Conceptual, human |
| Middle | Department heads, branch managers | Human, some technical and conceptual |
| Lower | Supervisors, foremen | Technical, human |
| Basis | Administration | Management |
|---|---|---|
| Nature | Thinking, policy-making | Doing, executing |
| Level | Top | Middle and lower |
| Found in | Government, NGOs | Business firms |
5 important questions
Q1. Define management.
Management is the process of planning, organising, staffing, directing and controlling the efforts of people and the use of resources to achieve organisational goals efficiently and effectively (based on Koontz and O'Donnell).
Q2. What are conceptual skills?
The ability to see the organisation as a whole, understand how its parts relate, analyse complex situations and think about the future. It is most needed by top managers for strategy and policy decisions.
Q3. Explain the nature and characteristics of management.
Outline: definition → goal-oriented → universal → continuous → group activity → intangible but seen in results → dynamic → integrative → system of authority → multidisciplinary. One-line explanation each.
Q4. Is management a science, an art or a profession? Discuss.
Outline: features of science and how management fits (body of principles, cause-effect) but inexact → features of art (skill, practice, creativity) – fits fully → features of profession (knowledge, education, association, code of ethics, service motive) – partly fits; AIMA in India but no compulsory membership → conclusion: management is a science and an art, and is moving towards a profession.
Q5. Distinguish between management and administration. Explain the levels of management.
Outline: table of differences (nature, level, function, influence, usage) → three levels with functions of each (top: objectives, policies; middle: interpret policies, coordinate; lower: supervise work, maintain quality) → diagram of the management pyramid.
Exam tip
Write the Koontz definition and draw the management pyramid; both are quick marks in 2-mark and 10-mark answers.