Nature and Significance of Management Test - 36

Successful coordination of activities results from Effective Planning, Organising and Directing. These are very important managerial functions which helps an organisation to reach its goal and objectives efficiently.

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.

Decision theory approach is concerned with the persons, or organization groups making the decision making process. Decision theory approach is an interdisciplinary approach. It helps to determine that how the decisions are made in a job environment which is uncertain. It helps to analyze decision making process.

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.

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.

Cooperating is not a function of management.

There are Five functions of a management which are as follows: planning, organising, staffing, directing, controlling

Coordination is needed to perform all these five functions of a management.

Coordination is the process by which a manager synchronises or binds all the activities 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.

Management is a group activity because an organisation is a collection of diverse individuals with different needs. Every member of the group has a different purpose for joining the organisation but as members of the organisation they work towards fulfilling the common organisational goal.

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 rs 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 effective because he has achieved the target. At the same time he is not efficient because he has achieved this target at higher production cost.

Google and Microsoft make the provision of creche, laundry, gym and entertainment facilities for their employees. Personal objective of management is achieved by the management.