Concepts of Management

Concepts of Management:

The term management has been interpreted in several ways; some of which are given below:

Management as an Activity:

Management is an activity just like playing, studying, teaching etc. As an activity, management has been defined as the art of getting things done through the efforts of other people. Management is a group activity wherein managers do to achieve the objectives of the group.

The activities of management are:

Interpersonal activities
Decisional activities
Informative activities

Management as a Process:

Management is considered a process because it involves a series of interrelated functions. It consists of getting the objectives of an organization and taking steps to achieve objectives. The management process includes planning, organizing, staffing, directing and controlling functions.

Management as a process has the following implications:

(i) Social Process: Management involves interactions among people. Goals can be achieved only when relations between people are productive. The human factor is the most important part of the management.

(ii) Integrated Process: Management brings human, physical and financial resources together to put into the effort. Management also integrates human efforts so as to maintain harmony among them.

(iii) Continuous Process: Management involves continuous identifying and solving problems. It is repeated every now and then till the goal is achieved.

(iv) Interactive process: Managerial functions are contained within each other. For example, when a manager prepares plans, he is also laying down standards for control.

Management as an Economic Resource:

Like land, labor, and capital, management is an important factor of production. Management occupies the central place among productive factors as it combines and coordinates all other resources.

Management as a Team:

As a group of persons, management consists of all those who have the responsibility for guiding and coordinating the efforts of other persons. These persons are called as managers who operate at different levels of authority (top, middle, operating). Some of these managers have the ownership stake in their firms while others have become managers by virtue of their training and experience. Civil servants and defense personnel who manage public sector undertakings are also part of the management team. As group managers have become an elite class in society occupying positions with enormous power and prestige.

Management as an Academic Discipline:

Management has emerged as a specialized branch of knowledge. It comprises principles and practices for effective management of organizations. Management has become as a very popular field of study as is evident from the great rush for admission into institutes of
management. Management offers a very rewarding and challenging career.

Management as a Group:

Management means the group of persons occupying managerial positions. It refers to all those individuals who perform managerial functions. All the managers, e.g., chief executive (managing director), departmental heads, supervisors and so on are collectively known as
management.

For example, when one remarks that the management of Reliance Industries Ltd. is good, he is referring to the persons who are managing the company. There are several types of managers which are listed as under.

Family managers who have become managers by virtue of their being owners or relatives of the owners of a company.
Professional managers who have been appointed on account of their degree or diploma in management.
Civil Servants who manage public sector undertakings.

Managers have become a very powerful and respected group in modern society. This is because the senior managers of companies take decisions that affect the lives of a large number of people. For example, if the managers of Reliance Industries Limited decide to expand production it will create the job for thousands of people. Managers also help to improve the social life of the public and the economic progress of the country. Senior managers also enjoy a high standard of living in society. They have, therefore, become an elite group in the society.