Nature and Significance of Management Test - 1

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 categories discussed above

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.

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

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.

Marketing and Personnel Managers are part of Middle level Management because Middle Level Management consists deparmental and divisional heads or managers. Marketing, Personnel, Finance, Production etc. are different departments in an organisation. On the other hand Top Level Management consists Senior most executives such as - Chairman, Chief Executive Officers etc. and Operational Management consists Supervisor and Foreman.

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

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.

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 a goal-oriented process because an organisation has set of basic goals which are the basic reason for its existence. Management units the efforts of different individuals in the organisation towards achieving these goals

Planning is concerned with specially formulation of policies and strategies. Planning is concerned with deciding in advance what to do and how to do. Objectives, Strategies, Policies, Procedures, Methods, Rules, Programme and Budget are different types of plan which are formulated in advance.