Page 91 - DEDU503_EDUCATIONAL_MANAGEMENT_ENGLISH

Unit 6: Managerial Process and its Importance

6. Success and stability of business enterprise: Efficient management is needed for success, stability Notes
and prosperity of a business enterprise.

Management is a process and not mainly a body of individuals. Those who perform this
process are called managers and his managing process is called managerial process.

Modem business is highly competitive and needs efficient and capable management for survival
and growth. Management is needed as it occupies a unique position in the smooth functioning of a
business unit. This suggests the need of efficient management of business enterprises. Profitable/
successful business may not he possible without efficient management. In this sense, "No
management, no business" is true. Survival of a business unit in the present competitive world is
possible only through efficient and competent management.
Self Assessment

1. Multiple choice questions :
Choose the correct option
(i) In the making of one pyramid required ..................... men.
(a) 1 lakh (b) 2 lakh (c) 50 thousand (d) 25 thousand
(ii) Luca Pacioli published a treatise describing the double entry system of book keeping in the
year ...................... .
(a) 1590 (b) 1494 (c) 1500 (d) 2009
(iii) ...................... is not a function of management process.
(a) Planning (b) Organising (c) Co-ordinating (d) Stability
6.3 Meaning of Management Process

The term management is explained in different ways. For example, it is said that management is
what management does. Here, management is explained with reference to its basic functions which
include planning, organising, coordinating and controlling. Similarly, management is described as
a process which involves various elements. Management process is a continuous one and is run by
the managers functioning at different levels. Management is now recognised as a distinct process in
which managers plan, organise, lead, motivate and control human efforts in order to achieve well
defined goals. In fact, process means a series of activities/operations undertaken/conducted for
achieving a specific objective. Process is a systematic way of doing things. For example, in a factory
there is a production process. Similarly, in the management process, resources and human efforts
are used in an orderly manner for achieving specific objectives. The management process suggests
functions to be performed by the managers.
6.4 Definition of Management Process

1. According to D. E. McFarland, "Management is the distinct process by which the managers
create, direct, maintain and operate purposive organisation through systematic, co-coordinated
and cooperative human efforts".
2. According to Gemp R. Terry, "Management is a distinct process consisting of planning,
organisisng, actuating, and controlling, performed to determine and accomplish objectives by
the use of people and other resources".

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