What is Management?

Management is a universal phenomenon. It is a very popular and widely used term. All organizations
- business, political, cultural or social are involved in management because it is the management
which helps and directs the various efforts towards a definite purpose. According toHarold Koontz,
“Management is an art of getting things done through and with the people in formally organized
groups. It is an art of creating an environment in which people can perform and individuals and can
co-operate towards attainment of group goals”. According to F.W. Taylor, “Management is an art of
knowing what to do, when to do and see that it is done in the best and cheapest way”.

Management is a purposive activity. It is something that directs group efforts towards the attainment
of certain pre - determined goals. It is the process of working with and through others to effectively
achieve the goals of the organization, by efficiently using limited resources in the changing world. Of
course, these goals may vary from one enterprise to another. E.g.: For one enterprise it may be
launching of new products by conducting market surveys and for other it may be profit maximization
by minimizing cost.

Management involves creating an internal environment: - It is the management which puts into use
the various factors of production. Therefore, it is the responsibility of management to create such
conditions which are conducive to maximum efforts so that people are able to perform their task
efficiently and effectively. It includes ensuring availability of raw materials, determination of wages and
salaries, formulation of rules & regulations etc.

Therefore, we can say that good management includes both being effective and efficient. Being
effective means doing the appropriate task i.e, fitting the square pegs in square holes and round pegs
in round holes. Being efficient means doing the task correctly, at least possible cost with minimum
wastage of resources.

Management can be defined in detail in following categories :

1. Management as a Process
2. Management as an Activity
3. Management as a Discipline
4. Management as a Group
5. Management as a Science
6. Management as an Art
7. Management as a Profession

Management as a Process
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As a process, management refers to a series of inter-related functions. It is the process by which

management creates, operates and directs purposive organization through systematic, coordinated
and co-operated human efforts, according to George R. Terry, “Management is a distinct process
consisting of planning, organizing, actuating and controlling, performed to determine and accomplish
stated objective by the use of human beings and other resources”. As a process, management
consists of three aspects:

1. Management is a social process - Since human factor is most important among the other
factors, therefore management is concerned with developing relationship among people. It is
 the duty of management to make interaction between people - productive and useful for
obtaining organizational goals.
2. Management is an integrating process - Management undertakes the job of bringing
together human physical and financial resources so as to achieve organizational purpose.
Therefore, is an important function to bring harmony between various factors.
3. Management is a continuous process - It is a never ending process. It is concerned with
constantly identifying the problem and solving them by taking adequate steps. It is an on-
going process.

Management as an Activity

Like various other activities performed by human beings such as writing, playing, eating, cooking etc,
management is also an activity because a manager is one who accomplishes the objectives by
directing the efforts of others. According to Koontz, “Management is what a manager does”.
Management as an activity includes -

1. Informational activities - In the functioning of business enterprise, the manager constantly

has to receive and give information orally or in written. A communication link has to be
maintained with subordinates as well as superiors for effective functioning of an enterprise.
2. Decisional activities - Practically all types of managerial activities are based on one or the
other types of decisions. Therefore, managers are continuously involved in decisions of
different kinds since the decision made by one manager becomes the basis of action to be
taken by other managers. (E.g. Sales Manager is deciding the media & content of
advertising).
3. Inter-personal activities - Management involves achieving goals through people. Therefore,
managers have to interact with superiors as well as the sub-ordinates. They must maintain
good relations with them. The inter-personal activities include with the sub-ordinates and
taking care of the problem. (E.g. Bonuses to be given to the sub-ordinates).

Management as a Discipline
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Management as a discipline refers to that branch of knowledge which is connected to study of

principles & practices of basic administration. It specifies certain code of conduct to be followed by the
manager & also various methods for managing resources efficiently.

Management as a discipline specifies certain code of conduct for managers & indicates various
methods of managing an enterprise. Management is a course of study which is now formally being
taught in the institutes and universities after completing a prescribed course or by obtaining degree or
diploma in management, a person can get employment as a manager.

Any branch of knowledge that fulfils following two requirements is known as discipline:
 1. There must be scholars & thinkers who communicate relevant knowledge through research
and publications.
2. The knowledge should be formally imparted by education and training programmes.

Since management satisfies both these problems, therefore it qualifies to be a discipline. Though it is
comparatively a new discipline but it is growing at a faster pace.

Management as a Group
Management as a group refers to all those persons who perform the task of managing an enterprise. When we
say that management of ABC & Co. is good, we are referring to a group of people those who are managing. Thus
as a group technically speaking, management will include all managers from chief executive to the first - line
managers (lower-level managers). But in common practice management includes only top management i.e. Chief
Executive, Chairman, General Manager, Board of Directors etc. In other words, those who are concerned with
making important decisions, these persons enjoy the authorities to use resources to accomplish organizational
objectives & also responsibility to for their efficient utilization.

Management as a group may be looked upon in 2 different ways:

1. All managers taken together.

2. Only the top management

The interpretation depends upon the context in which these terms are used. Broadly speaking, there are 3 types
of managers -

1. Patrimonial / Family Manager: Those who have become managers by virtue of their being owners or
relatives of the owners of company.
2. Professional Managers: Those who have been appointed on account of their specialized knowledge
and degree.
3. Political Managers / Civil Servants: Those who manage public sector undertakings.

Managers have become a part of elite group of society as they enjoy higher standard of living in the society.

Management as a Science
Science is a systematic body of knowledge pertaining to a specific field of study that contains general facts which
explains a phenomenon. It establishes cause and effect relationship between two or more variables and
underlines the principles governing their relationship. These principles are developed through scientific method of
observation and verification through testing.

Science is characterized by following main features:

1. Universally acceptance principles - Scientific principles represents basic truth about a particular field
of enquiry. These principles may be applied in all situations, at all time & at all places. E.g. - law of
gravitation which can be applied in all countries irrespective of the time.

Management also contains some fundamental principles which can be applied universally like the
Principle of Unity of Command i.e. one man, one boss. This principle is applicable to all type of
organization - business or non business.
 2. Experimentation & Observation - Scientific principles are derived through scientific investigation &
researching i.e. they are based on logic. E.g. the principle that earth goes round the sun has been
scientifically proved.

Management principles are also based on scientific enquiry & observation and not only on the opinion of
Henry Fayol. They have been developed through experiments & practical experiences of large no. of
managers. E.g. it is observed that fair remuneration to personal helps in creating a satisfied work force.

3. Cause & Effect Relationship - Principles of science lay down cause and effect relationship between
various variables. E.g. when metals are heated, they are expanded. The cause is heating & result is
expansion.

The same is true for management, therefore it also establishes cause and effect relationship. E.g. lack
of parity (balance) between authority & responsibility will lead to ineffectiveness. If you know the cause
i.e. lack of balance, the effect can be ascertained easily i.e. in effectiveness. Similarly if workers are
given bonuses, fair wages they will work hard but when not treated in fair and just manner, reduces
productivity of organization.

4. Test of Validity & Predictability - Validity of scientific principles can be tested at any time or any
number of times i.e. they stand the test of time. Each time these tests will give same result. Moreover
future events can be predicted with reasonable accuracy by using scientific principles. E.g. H 2 & O2 will
always give H2O.

Principles of management can also be tested for validity. E.g. principle of unity of command can be
tested by comparing two persons - one having single boss and one having 2 bosses. The performance
of 1st person will be better than 2nd.

It cannot be denied that management has a systematic body of knowledge but it is not as exact as that of other
physical sciences like biology, physics, and chemistry etc. The main reason for the inexactness of science of
management is that it deals with human beings and it is very difficult to predict their behavior accurately. Since it
is a social process, therefore it falls in the area of social sciences. It is a flexible science & that is why its theories
and principles may produce different results at different times and therefore it is a behavior science. Ernest Dale
has called it as a Soft Science.

Management as an Art
Art implies application of knowledge & skill to trying about desired results. An art may be defined as
personalized application of general theoretical principles for achieving best possible results. Art has
the following characters -

1. Practical Knowledge: Every art requires practical knowledge therefore learning of theory is
not sufficient. It is very important to know practical application of theoretical principles. E.g. to
become a good painter, the person may not only be knowing different colour and brushes but
different designs, dimensions, situations etc to use them appropriately. A manager can never
be successful just by obtaining degree or diploma in management; he must have also know
how to apply various principles in real situations by functioning in capacity of manager.
2. Personal Skill: Although theoretical base may be same for every artist, but each one has his
own style and approach towards his job. That is why the level of success and quality of
performance differs from one person to another. E.g. there are several qualified painters but
M.F. Hussain is recognized for his style. Similarly management as an art is also personalized.
Every manager has his own way of managing things based on his knowledge, experience and
personality, that is why some managers are known as good managers (like Aditya Birla,
Rahul Bajaj) whereas others as bad.
3. Creativity: Every artist has an element of creativity in line. That is why he aims at producing
something that has never existed before which requires combination of intelligence &
imagination. Management is also creative in nature like any other art. It combines human and
 non-human resources in useful way so as to achieve desired results. It tries to produce sweet
music by combining chords in an efficient manner.
4. Perfection through practice: Practice makes a man perfect. Every artist becomes more and
more proficient through constant practice. Similarly managers learn through an art of trial and
error initially but application of management principles over the years makes them perfect in
the job of managing.
5. Goal-Oriented: Every art is result oriented as it seeks to achieve concrete results. In the
same manner, management is also directed towards accomplishment of pre-determined
goals. Managers use various resources like men, money, material, machinery & methods to
promote growth of an organization.

Thus, we can say that management is an art therefore it requires application of certain principles
rather it is an art of highest order because it deals with moulding the attitude and behavior of people
at work towards desired goals.

Management as both Science and Art

Management is both an art and a science. The above mentioned points clearly reveals that
management combines features of both science as well as art. It is considered as a science because
it has an organized body of knowledge which contains certain universal truth. It is called an art
because managing requires certain skills which are personal possessions of managers. Science
provides the knowledge & art deals with the application of knowledge and skills.

A manager to be successful in his profession must acquire the knowledge of science & the art of
applying it. Therefore management is a judicious blend of science as well as an art because it proves
the principles and the way these principles are applied is a matter of art. Science teaches to ’know’
and art teaches to ’do’. E.g. a person cannot become a good singer unless he has knowledge about
various ragas & he also applies his personal skill in the art of singing. Same way it is not sufficient for
manager to first know the principles but he must also apply them in solving various managerial
problems that is why, science and art are not mutually exclusive but they are complementary to each
other (like tea and biscuit, bread and butter etc.).

The old saying that “Manager are Born” has been rejected in favor of “Managers are Made”. It has
been aptly remarked that management is the oldest of art and youngest of science. To conclude, we
can say that science is the root and art is the fruit.

Management as a Profession
Over a large few decades, factors such as growing size of business unit, separation of ownership
from management, growing competition etc have led to an increased demand for professionally
qualified managers. The task of manager has been quite specialized. As a result of these
developments the management has reached a stage where everything is to be managed
professionally.

A profession may be defined as an occupation that requires specialized knowledge and intensive
academic preparations to which entry is regulated by a representative body. The essentials of a
profession are:

1. Specialized Knowledge - A profession must have a systematic body of knowledge that can
be used for development of professionals. Every professional must make deliberate efforts to
acquire expertise in the principles and techniques. Similarly a manager must have devotion
and involvement to acquire expertise in the science of management.
2. Formal Education & Training - There are no. of institutes and universities to impart
education & training for a profession. No one can practice a profession without going through
a prescribed course. Many institutes of management have been set up for imparting
education and training. For example, a CA cannot audit the A/C’s unless he has acquired a
 degree or diploma for the same but no minimum qualifications and a course of study has
been prescribed for managers by law. For example, MBA may be preferred but not
necessary.
3. Social Obligations - Profession is a source of livelihood but professionals are primarily
motivated by the desire to serve the society. Their actions are influenced by social norms and
values. Similarly a manager is responsible not only to its owners but also to the society and
therefore he is expected to provide quality goods at reasonable prices to the society.
4. Code of Conduct - Members of a profession have to abide by a code of conduct which
contains certain rules and regulations, norms of honesty, integrity and special ethics. A code
of conduct is enforced by a representative association to ensure self discipline among its
members. Any member violating the code of conduct can be punished and his membership
can be withdrawn. The AIMA has prescribed a code of conduct for managers but it has no
right to take legal action against any manager who violates it.
5. Representative Association - For the regulation of profession, existance of a representative
body is a must. For example, an institute of Charted Accountants of India establishes and
administers standards of competence for the auditors but the AIMA however does not have
any statuary powers to regulate the activities of managers.

From above discussion, it is quite clear that management fulfills several essentials of a profession,
even then it is not a full fledged profession because: -

a. It does not restrict the entry in managerial jobs for account of one standard or other.
b. No minimum qualifications have been prescribed for managers.
c. No management association has the authority to grant a certificate of practice to various
managers.
d. All managers are supposed to abide by the code formulated by AIMA,
e. Competent education and training facilities do not exist.
f. Managers are responsible to many groups such as shareholders, employees and society. A
regulatory code may curtail their freedom.
g. Managers are known by their performance and not mere degrees.
h. The ultimate goal of business is to maximize profit and not social welfare. That is why
Haymes has rightly remarked, “The slogan for management is becoming - ’He who serves
best, also profits most’.”