Page 11 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Unit 1: Introduction to Management

secure maximum prosperity and happiness for both employer and employee and give the Notes
public the best possible service”.
In the words of Kimball and Kimball, “Management embraces all duties and functions that
pertain to the initiation of an enterprise, its financing, the establishment of all major policies,
the provision of all necessary equipment, the outlining of the general form of organisation
under which the enterprise is to operate and the selection of the principal officers. The group of
officials in primary control of an enterprise is referred to as management”.
In the words of E.F.L. Brech, “Management is a social process entailing responsibility for the
effective and economical planning and regulation of the operations of an enterprise, in fulfilment
of a given purpose or task, such responsibility involving:
1. judgement and decision in determining plans and in using data to control performance,
and progress against plans; and
2. the guidance, integration, motivation and supervision of the personnel composing the
enterprise and carrying out its operations”.
According to E. Peterson and E.G Plowman, Management is “a technique by means of which the
purpose and objectives of a particular human group are determined, classified and effectuated”.
According to Mary Cushing Niles, “Good management or scientific management achieves a
social objective with the best use of human and material energy and time and with satisfaction
for the participants and the public”.
From the definitions quoted above, it is clear the “management” is a technique of extracting
work from others in an integrated and co-ordinated manner for realising the specific objectives
through productive use of material resources. Mobilising the physical, human and financial
resources and planning their utilisation for business operations in such a manner as to reach the
defined goals can be referred to as “management”. If the views of the various authorities are
combined, management could be defined as “a distinct ongoing process of allocating inputs of
an organisation (human and economic resources) by typical managerial functions (planning,
organising, directing and controlling) for the purpose of achieving stated objectives namely –
output of goods and services desired by its customers (environment). In the process, work is
preformed with and through personnel of the organisation in an ever-changing business
environment”.
Management is a universal process in all organised social and economic activities. It is not
merely restricted to factory, shop or office. It is an operative force in all complex organisations
trying to achieve some stated objectives. Management is necessary for a business firm,
government enterprises, education and health services, military organisations, trade associations
and so on.

1.2 Nature of Management

An analysis of the various definitions of management indicates that management has certain
characteristics. The following are the salient characteristics of management.
1. Management aims at reaping rich results in economic terms: Manager’s primary task is to
secure the productive performance through planning, direction and control. It is expected
of the management to bring into being the desired results. Rational utilisation of available
resources to maximise the profit is the economic function of a manager. Professional
manager can prove his administrative talent only by economising the resources and
enhancing profit. According to Kimball, “management is the art of applying the economic
principles that underlie the control of men and materials in the enterprise under
consideration”.

LOVELY PROFESSIONAL UNIVERSITY 3