1. Meaning of management
Management is the process of getting things done effectively (on time, meeting the goal) and efficiently (at least cost) through others.
The word is used in four senses:
- As an activity: what managers do — interpersonal (dealing with people), informational (receiving and passing on information) and decisional (taking decisions) tasks.
- As a group: the body of persons who manage an organisation, from directors to supervisors.
- As a discipline: an organised field of study with its own concepts and principles, taught in schools and colleges.
- As a process: a chain of inter-related functions — planning, organising, staffing, directing and controlling — performed to reach goals.
| Management as… | What it means | You hear it as… |
|---|---|---|
| An activity | What managers do: interpersonal, informational and decisional tasks | A manager's busy day |
| A group | The body of persons who manage an organisation | "The management has decided…" |
| A discipline | An organised field of study with its own principles | "I am studying management" |
| A process | A chain of functions: plan, organise, staff, direct, control | How work moves from idea to result |
| Kind of activity | What the manager does | Imagined example |
|---|---|---|
| Interpersonal | Deals with people inside and outside | Meets a buyer; settles a quarrel |
| Informational | Receives and passes on information | Shares news of a craft fair |
| Decisional | Takes decisions | Chooses which order to accept |
Key terms
- Management
The process of getting things done effectively and efficiently through others.
- Effectiveness
Completing the right task on time.
- Efficiency
Doing the task at the least cost of resources.
2. Objectives of management
- Organisational objectives: survival (earning enough to cover costs and stay in business), profit (a surplus over costs to reward owners and fund growth) and growth (expanding sales, capacity, products or markets).
- Social objectives: creating benefit for society — quality products at fair prices, eco-friendly methods, jobs for disadvantaged groups, support to the community.
- Personal objectives: meeting the varied needs of employees — financial (fair pay), social (recognition by peers) and higher-level (personal growth and development).
A good manager balances all three kinds.
| Kind | Includes | Imagined example |
|---|---|---|
| Organisational | Survival, profit, growth | A trekking firm cuts costs to stay open in a bad year |
| Social | Benefit to society: safe products, jobs, clean environment | A seafood exporter treats its waste water |
| Personal | Employees' financial, social and higher-level needs | A spice firm pays for evening classes for workers |
| Aim of an imagined pickle cooperative in Rajahmundry | Kind of objective |
|---|---|
| Earn enough in the mango season to last the year | Organisational: survival |
| Start selling in two new states | Organisational: growth |
| Buy mangoes at fair prices from small growers | Social |
| Give each member a bonus and a chance to learn bookkeeping | Personal |
Key terms
- Organisational objectives
Survival, profit and growth of the firm.
- Social objectives
Benefits the firm creates for society.
- Personal objectives
Meeting the financial, social and higher-level needs of employees.
3. Characteristics of management
- Goal-oriented: all management work aims at definite objectives; success is judged by how far they are met.
- Pervasive: management is needed in all organisations — business or not, large or small — and at every level.
- Continuous: its functions are performed again and again; controlling leads into fresh planning.
- Group activity: an organisation is a group of individuals with different needs; management unites their efforts towards common goals.
- Intangible: management cannot be seen or touched, but its presence is felt in orderly work, met targets and satisfied people.
| Characteristic | In short |
|---|---|
| Goal-oriented | Everything aims at definite objectives |
| Pervasive | Found in every kind of organisation and at every level |
| Continuous | Its functions repeat without a break |
| Group activity | Unites people with different needs towards common goals |
| Intangible | Cannot be seen, but its results can be felt |
| Clue in a case | Characteristic |
|---|---|
| Many different kinds of organisation all plan and check work | Pervasive |
| Nobody sees the managers, but everything runs smoothly | Intangible |
| The next plan starts as soon as one ends | Continuous |
Key terms
- Pervasive
Found in every kind of organisation and at every level.
- Intangible
Cannot be seen, though its effects can be felt.
4. Management as a science, an art and a profession
Science — features: systematised body of knowledge; principles based on observation and experiment; universal validity. Management has organised knowledge and tested principles, but because they deal with human behaviour they do not hold exactly everywhere: an inexact (soft) science.
Art — features: existence of theoretical knowledge; personalised application; based on practice and creativity. Management meets all three: it is an art.
Profession — features: well-defined body of knowledge; restricted entry; professional association; ethical code; service motive. Management has a body of knowledge, but entry is not restricted, association membership is not compulsory, and no code is binding by law: not a full profession.
Verdict: management is both an art and an inexact science, and it is moving towards becoming a profession.
| Feature of science | Does management have it? |
|---|---|
| Systematised body of knowledge | Yes: organised principles and theories |
| Principles based on observation and experiment | Yes, though people cannot be tested like chemicals |
| Universal validity | Only partly: results vary with people and situations |
| Feature of art | In management |
|---|---|
| Theoretical knowledge exists | Many books and principles on managing |
| Personalised application | Each manager applies them in an own style |
| Practice and creativity | Skill grows with practice and fresh ideas |
| Feature of a profession | Met by management? |
|---|---|
| Well-defined body of knowledge | Yes |
| Restricted entry (degree or licence) | No: anyone can be a manager |
| Compulsory professional association | No: membership is voluntary |
| Ethical code with penalties | Not fully: codes exist but are not binding by law |
| Service motive | Partly: firms serve society but mainly pursue their goals |
| Is management… | Verdict |
|---|---|
| A science? | Yes, but an inexact one |
| An art? | Yes |
| A profession? | Not fully; it is moving that way |
Key terms
- Inexact science
A science whose principles do not give identical results everywhere because they deal with people.
- Restricted entry
Entry to an occupation only through a set degree, examination or licence.
5. Importance of management
- Helps achieve group goals: it directs individual efforts towards the common goals of the organisation.
- Increases efficiency: better planning, organising and control reduce waste and cost.
- Creates a dynamic organisation: it helps people accept and adapt to change.
- Helps achieve personal objectives: through fair pay, recognition and growth.
- Helps in the development of society: through quality goods, jobs, new technology and responsible use of resources.
| Importance | Imagined example |
|---|---|
| Helps achieve group goals | Every crew member works towards finishing repairs before the season |
| Increases efficiency | A potter's kiln schedule saves firewood |
| Creates a dynamic organisation | Weavers adopt new yarns as tastes change |
| Helps achieve personal objectives | Fair pay and recognition keep staff motivated |
| Helps in the development of society | Better goods, more jobs, new technology |
Key terms
- Dynamic organisation
One that keeps adapting to changes in its environment.
6. Levels of management and their functions
Top management (board, chief executive, directors): analyses the environment; frames overall objectives and strategies; arranges resources; is answerable for the survival and welfare of the whole organisation.
Middle management (department, plant and regional heads): interprets the policies of top management; assigns duties to supervisors; ensures enough staff and resources; coordinates departments; motivates supervisors.
Supervisory (lower) management (foremen, line supervisors): oversees workers directly; keeps quality and discipline; passes workers' problems upward and managers' instructions downward; guides and trains workers.
Time: planning takes more of a top manager's time; direct supervision takes more of a supervisor's. Operative workers are managed but are not a level of management.
| Level | Who | Main functions |
|---|---|---|
| Top | Board, chief executive, directors | Frame goals and strategy; read the environment; answerable for survival and welfare |
| Middle | Department, plant and regional heads | Interpret policies; assign duties to supervisors; coordinate departments; motivate |
| Supervisory | Foremen, line supervisors | Oversee workers; keep quality and discipline; pass problems upward |
| Imagined person at a cashew processor in Odisha | Level |
|---|---|
| Directors who decide to double capacity | Top |
| Factory manager who sets yearly targets for each shed | Middle |
| Shed supervisor who guides shellers each day | Supervisory |
| Sheller who works the machine | Operative, not management |
Key terms
- Top management
The highest level, which sets goals and strategy.
- Middle management
The link between top and supervisory managers.
- Supervisory management
The level in direct contact with workers.
Exam tips
Common mistakes
- Mixing up pervasive (found everywhere) with continuous (never stops).
- Calling management a full profession, or an exact science.
- Listing jobs for disadvantaged groups as a personal objective (it is social).
- Treating operative workers as a level of management.
How marks are usually awarded
- 1 mark: the correct option, sense, objective or level.
- 2–3 marks: each point named and explained, linked to the case.
- 5 marks: parts answered separately; science, art and profession questions need each feature tested and a verdict.
- Case questions: quote the line, name the idea, explain the link.