Nature and Significance of Management Test - 3

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.

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.

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

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.

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.

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

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.

Management is not a tangible force because it cannot be touched and seen but its presence can be felt in the way organisation functions. The effect of management is noticeable in an organisation when:

1. Targets are met according to plans

2. Employees are happy and satisfied

3. There is orderliness instead of chaos

It can be concluded that Management is an intangible force and not a tangible force.

Management is multidimensional as it has three main dimensions:

1. Management of work

2. Management of People

3. Management of operations

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. This requires team work and coordination of individual effort in a common direction. At the same time management should enable all its members to grow and develop as needs and opportunities change.