Page 12 - DMGT402_MANAGEMENT_PRACTICES_AND_ORGANIZATIONAL_BEHAVIOUR

Unit 1: Introduction to Management

perform managerial activities is essential component of each organisation. The importance Notes
the class has become so huge that the entire group of mangers is known as “management”
in every organisation.

1.4 Purpose of Management

The purpose of management can be understood as following:
1. Reducing ambiguity in methods of working,
2. Keeping costs down, and motivating others to do the same.
3. Taking calculated risks
4. Managing prospective risk
5. Exercise good judgement

Task Illustrate an example of managerial activities you ever involved in and
enlist the purposes of each of them.

1.5 Characteristics of Management

Management is a distinct activity having the following salient features or characteristics:
1. Economic Resource: Management is an important economic resource together with land,
labour and capital. As industrialization grows, the need for managers increases. Efficient
management is the most critical input in the success of any organised group activity as it
is the force which assembles and integrates other factors of production, namely, labour,
capital and materials. Inputs of labour, capital and materials do not by themselves ensure
production, they require the catalyst of management to produce goods and services required
by the society. Thus, management is an essential ingredient of an organisation.
2. Goal Oriented: Management is a purposeful activity. It coordinates the efforts of workers
to achieve the goals of the organisation. The success of management is measured by the
extent to which the organisational goals are achieved. It is imperative that the organisational
goals must be well defined and properly understood by the managers at various levels.
3. Distinct Process: Management is a distinct process consisting of such functions as planning,
organising, staffing, directing, and controlling. These functions are so interwoven that it
is not possible to lay down exactly the sequence of various functions or their relative
significance. In essence, the process of management involves decision making and putting
of decisions into practice.

4. Integrative Force: The essence of management is integration of human and other resources
to achieve the desired objectives. All these resources are made available to those who
manage. Managers apply knowledge, experience and management principles for getting
the results from the workers by the use of non-human resources. Managers also seek to
harmonize the individuals goals with the organisational goals for the smooth working of
the organisation.
5. Intangible Force: Management has been called an unseen force. Its presence is evidenced
by the result of its efforts – orderliness, informed employees, buoyant spirit and adequate
work output. Thus, feeling of management is result-oriented. One may not see with the
naked eyes the functioning of management but its results are apparently known. People
often remark of the effectiveness (or ineffectiveness) of management on the basis of the
end results, although, they can’t observe it during operation.

LOVELY PROFESSIONAL UNIVERSITY 7