Nature and Significance of Management — Business Studies STD 12 Commerce — Question

Features of Management:

1. Management is goal oriented process: Management always aims at achieving the organisational objectives.

The functions and activities of manager lead to the achievement of organisational objectives; for example, if the objective of a company is to sell 1000 computers then manager will plan the course of action, motivate all the employees and organise all the resources keeping in mind the main target of selling 1000 computers.

2. Management is Pervasive: Management is a universal phenomenon. The use of management is not restricted to business firms only it is applicable in profit-making, non-profit-making, business or non-business organisations; even a hospital, school, club and house has to be managed properly. Concept of management is used in the whole world whether it is USA, UK or India.
3. Management is Multidimensional: Management does not mean one single activity but it includes three main activities.

1. Management of work,
2. Management of people,
3. Management of operations.

4. Management is a continuous process: Management is a continuous or never ending function. All the functions of management are performed continuously, for example planning, organising, staffing, directing and controlling are performed by all the managers all the time. Sometimes, they are doing planning, then staffing or organising etc. Managers perform ongoing series of functions continuously in the organisation.
5. Management is a dynamic function: Management has to make changes in goal, objectives and other activities according to changes taking place in the environment. The external environment such as social, economical, technical and political environment has great influence over the management.
6. Intangible: Management function cannot be physically seen but its presence can be felt. The presence of management can be felt by seeing the orderliness and coordination in the working environment. It is easier to feel the presence of mismanagement as it leads to chaos and confusion in the organisation.
7. Balancing effectiveness and efficiency: Effectiveness means achieving targets and objectives on time. Efficiency refers to optimum or best utilisation of resources. Managements always try to balance both and get the work done successfully. Only effectiveness and only efficiency is not enough for an organisation: a balance must be created in both.