Nature and Significance of Management Test - 3

There are five functions of Management, Which are as follow :-

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

Cooperating is not a separate function of management. Cooperating means work together for a common purpose or benefits. While performing different functions of management, Members of an organisation may cooperate each other. Cooperation can be there in all the functions of management. But it can not be considered as a separate function of management.

Management is considered both art and science. Because :-

1. The practice of management is an art.

2. However, managers can work better if their practice is based on the principles of management. These principles constitute the science of management.

There are three organisational/economic objectives of management :

1. Survival   2. Profits   3. Growth

Providing employment to the disadvantaged sections of society is a part of social objective of management.

Top level managers formulate the plan and policy for overall organisation. Middle level managers is responsible for implementing and controlling plans, policies and strategies developed by top management. Operational/Supervisory management directly oversee the efforts of the workforce.

Coordination neither a function nor an objective of management. 

• Coordination is the force that binds all the other functions of management.Coordination is implicit and inherent in all functions of an organisation.
• There are only three objectives of management :
  • Organisational/Economic objective
  • Social objective
  • Personal objective

Conclusion - Coordination is an essence of management.

Coordination is the process by which a manager synchronises or binds all the actvities of different department and all other functions of management. It is a common thread that runs through all activities of different department such as purchase, production, sales, finance etc.

There are various types of plans which are as follow:

1. Objective  2. Strategy  3. Policy  4. Procedure  5. Method  6. Rule  7. Programme  8. Budget

Policies and Strategies are forumlated under planning function.

Efficiency is concerned with minimum cost (resources). Efficiency means using less resources (i.e., the inputs) to derive more benefits (i.e., the outputs).Efficiency is also increased when for the same benefit or outputs, fewer (minimum) resources are used and less costs are incurred.

Example - XYZ Ltd., a garment manufacturing company set the target production of 100 garments per month for each worker. Ravi, a worker produces 100 garments at the cost of Rs. 200 per garment. On the other hand, Mohan achieves the target of 100 garments at the cost of Rs.150 per garment. As Mohan utilise minimum resources (cost) to achieve the target, he is efficient.

Middle level management consists of divisonal and departmental heads. As there may be following functional department in an organisation:

1. Production department  2. Finance department  3. Marketing department  4. Human Resource department

The manager, who heads these department comes at middle level management. so finance manager comes under middle level management.

• President, Chairman, Director, Chief executive officer, Chief finance officer etc. are senior-most top executives of the organisation who comes at Top level management
• Supervisor directly oversees the efforts of the workforce who comes at supervisory or operational management.

Top Level Management is responsible for welfare and survival of an organisation because they are responsible for all the activities of the business and its impact on society.They formulate overall organisational goals and strategies for their achievement. They analyse the business environment and its implications for the survival of the organisation.