Nature and Significance of Management Test - 5

Management is multidimensional as it has three main dimensions:

1. Management of work

2. Management of People

3. Management of operations

Management is multidimensional which has three dimensions:

1. Managment of work

2. Management of people

3. Management of operations

Management is directly concerned with managment of people as people are an organisation's greatest asset. Getting things done through people is still a major task for the manager.

Managing people has two dimensions

(i) it implies dealing with employees as individuals withdiverse needs and behavior;

(ii) it also means dealing with individuals as a group of people.

Management has three objective:

1. Organisational/Economical - a. Survival   b. Profit  c. Growth

2. Social 

3. Personal

Management is not limited upto political objective as it is very narrow concept. In this world the objective of management of any organisation can be broadly classified into three catagories discussed above.

There are three organisational/economical objective of managment:

1. Survival

2. Profit

3. Growth

Supply of quality goods is a social objective as it involves the creation of benefit for the society. By supplying quality goods an organisation creates the benefit to customer as well as to entire society 

Providing facilities of Schools, creches and hospitals is the social objective of management. As far as organisational objective is concerned, it includes economic objectives of an organisation such as - Survival, Profit and Growth. On the other hand personal objective includes financial (salaries and perks) and non financial incentives (peer recognition and higher level needs) to an employee.

Chairman, Chief Executive Officer, Chief Operating Officer, Managing Director, Board Of Director, President, Vice-President are senior most executives in an organisation. Top Management is a team consisting of managers from different functional levels, heading finance, marketing etc. For example Chief Marketing Officer, Chief Finance Manager etc.They are part of Top Level Management.

Science is a Systematised body of knowledge. Its principles are based on a cause and effect relationship. For example, the phenomenon of an apple falling from a tree towards the ground is explained by the law of gravity. Science has its own vocabulary of terms and concepts. Whereas Art is concerned with application of that knowledge.

All professions are based on a well-defined body of knowledge that can be acquired through instruction.

Management is based on a systematic body of knowledge comprising well-defined principles based on a variety of business situations. This knowledge can be acquired
at different colleges and professional institutes and through a number of books and journals.

Management is a dynamic function and has to adapt itself to the changing environment.An organisation interacts with its external environment which consists of various social, economic and political factors. In order to be successful, an organisation must change itself and its goals according to the needs of the environment.

Effectiveness is concerned with the end result. Effectiveness basically means finishing the given task irrespective of the cost incurred.

Example - Suppose, a company's target production os 5000 units in a year. To achieve this target the manager has to operate on double shifts due to power failure most of the time. This manager is able to produce 5000 units but at a higher production cost. In this case manager is effecitve beacause he has achieved the target. At the same time he is not efficient beacause he has achieved this target at higher production cost.