The Nature and Scope of Management - 6 Amazing Styles of Management

Table of Contents

Nature and Scope of Management- Introduction

The need for management is everywhere, whether it is in governmental organizations or private organizations. As human beings are considered social animals, and to get things aligned, the need of management is a must.

For example, when you visit a government office for the first time, you might observe that there is a hierarchy of work. In the same way, the application of management may be different from organization to organization, but the goal is to create a separate role for every individual or group so that the work can be done with ease and efficiency.

In the modern industrial world, management is universal, and there is no substitute for good management. It improves human effects and brings better technology, products, and services to our society. It is a critical economic resource and a vital component in business.

Without proper management, the production resources (men, machines, and materials) are wasted.

Money cannot be converted into output. Thus, management is a critical function concerned with all aspects of an organization’s operation.

Management is required to achieve desired results through group action. Converting the disorganized resources of men, machines, materials, and methods into a useful and effective enterprise is critical.

Thus, management is the function of directing the efforts of employees to achieve maximum output and get things done through people.

Companies rely on management structures and principles to carry out continuous business activities in order to achieve strategic goals and objectives. The concept of scope of management is useful for developing project plans that can save time, improve efficiency, and lower costs. Understanding the scope of management allows you to be more effective in project management, complete work on time, and assist your company in earning more profits. In this article, we will answer the question, “What is the nature and scope of management?” and explain how it works. We will also examine the concept of management and the process of management in the business world and share some tips for effective business management.

Nature and Scope of Management: Definitions of Management

Some of the leading management thinkers and practitioners have provided definitions below:

(i) Management entails directing human and physical resources into a dynamic, hard-hitting organizational unit that achieves its goals to the satisfaction of those served and with a high level of morale and sense of accomplishment on the part of those providing the service. —Lawrence A. Appley

(ii) Management is the process of coordinating all resources through planning, organizing, directing, and controlling in order to achieve stated objectives. —Henry L. Sisk.

(iii) Management is primarily concerned with planning, coordinating, motivating, and controlling the efforts of others toward a common goal. Lundy, James L.

(iv) Management is the art and science of organizing and directing human efforts in order to control forces and utilize natural resources for man’s benefit. The American Society of Mechanical Engineers (ASME)—Harold Koontz and Cyrill O’Donnell

Nature and Scope of Management: The Concept of Management

Management has been interpreted in a variety of ways, some of which are listed below:

Management as a Process

Management, like playing, studying, and teaching, is an activity. Management has been defined as the art of accomplishing tasks through the efforts of others. Management is a group activity in which managers do things to help the group achieve its goals.

Management activities include:

Interpersonal interactions
Decision-making activities
Educational activities

Management as a Methodology

Management is regarded as a process because it entails a number of interconnected functions. It entails determining an organization’s objectives and taking steps to achieve those objectives. Management functions include planning, organizing, staffing, directing, and controlling.

The following are the implications of management as a process:

Social Process: Management entails interpersonal interactions. Only when people’s relationships are productive can goals be achieved. The most important aspect of management is the human factor.
Integrated Process: Management brings together human, physical, and financial resources to put forth effort. Management also integrates human efforts in order to keep them in harmony.
Continuous Process: Management entails the continuous identification and resolution of problems. It is repeated on a regular basis until the goal is reached.
Interactive process: Managerial functions are interconnected. When a manager creates plans, he is also establishing control standards.

Management as a Financial Resource

Management, like land, labor, and capital, is an important factor in production. Management is the most important productive factor because it combines and coordinates all other resources.

Management as a Group

Management as a group consists of all those who are in charge of directing and coordinating the efforts of others.

These people are known as managers, and they have varying levels of authority (top, middle, operating). Some of these executives own stock in their companies, while others rose through the ranks as a result of their education and experience. Civil servants and military personnel who manage public-sector projects are also members of the management team.

Also Read: Leadership Skills as a Manager.

Management as a scholarly discipline

Management has emerged as a specialized field of study. It consists of organizational management principles and practices. As evidenced by the high demand for admission to management institutes, management has become a very popular field of study. Management is both a rewarding and challenging career path.

Management as a Team

Management refers to the group of people who hold managerial positions. It encompasses all individuals who perform managerial functions. Management refers to all managers, such as the chief executive (managing director), department heads, supervisors, and so on.

For example, when someone says that Reliance Industries Ltd.’s management is good, he is referring to the people in charge of the company. There are various kinds.

There are several types of managers, as listed below.

(i)Family managers who became managers because they are the owners or relatives of the owners of a company.

(ii) Professional managers appointed because of their management degree or diploma.

(iii) Civil servants in charge of public-sector projects.

Managers have risen to prominence as a powerful and well-respected group in modern society. This is due to the fact that senior executives make decisions that affect the lives of a large number of people. For example, if the managers of Reliance Industries Limited decide to expand production, thousands of people will be employed. Managers also contribute to the improvement of the public’s social life and the country’s economic progress. Senior executives also have a high standard of living in society. As a result, they have risen to the status of a social elite.

Also Read: Amazing Ways of Resolving Conflicts

Nature and Scope of the Management: The Process of Management

The management process is the process of establishing goals, planning and/or controlling the organizing and leading of any type of activity, such as a project (process of project management) or a procedure (process management process, sometimes referred to as the process performance measurement and management system).

The Process of Management – With 5 Management Process Steps

There is considerable disagreement among management thinkers about how to classify managerial functional processes. According to Newman and Summer, there are only four steps in the management process: organizing, planning, leading, and controlling. Planning, organizing, commanding, coordinating, and controlling are the five management functions identified by Henry Fayol. Luther Gulick defines seven such management steps as “POSDCORB,” which stands for planning, organizing, staffing, directing, coordinating, reporting, and budgeting.

Management processes are classified by Warren Haynes and Joseph Massie as decision-making, organizing, staffing, planning, controlling, communicating, and directing. The process is divided into five stages, according to Koontz and O’Donnell: planning, organizing, staffing, directing, coordinating, and controlling.

For our purposes, we will define the following six managerial functions:

The management process consists of the following steps:

Planning,
Organizing,
Staffing,
Directing,
Coordinating, and
Controlling.

Planning:

Planning is the most fundamental and all-encompassing step in the management process. If people working in groups are to perform effectively, they must be aware of what must be done, what activities must be performed in order to complete the task, and when it must be completed. Planning is concerned with the ‘what,’ ‘how,’ and ‘when of performance.’

Thus, planning entails:

(a) determining long and short-term objectives;

(b) developing strategies and courses of action to achieve these objectives; and

Every manager performs or contributes to all of these planning functions. Planning is often not done intentionally and scientifically in some organizations, particularly those that are traditionally managed and small, but it is done in modern, larger, and professional organizations.

Organization:

Organizing entails identifying the activities needed to achieve enterprise objectives and plan implementation; grouping of activities into jobs; assigning these jobs and activities to departments and individuals; delegation of responsibility and authority for performance; and provision for vertical and horizontal coordination of activities.

Thus, organizing entails the following sub-functions:

(a) identification of activities required for goal achievement and plan implementation.

(b) Combining activities to create self-contained jobs.

(d) Delegation of authority to enable them to perform their jobs and command the resources required to do so.

(e) The formation of a network of coordinating relationships.

Staffing:

Staffing is an ongoing and critical step in the management process.

After the objectives have been determined, strategies, policies, programs, procedures, and rules developed to achieve them, and activities for implementing strategies, policies, programs, and so on identified and classified as jobs, the next logical step in the management process is to find suitable personnel to fill the jobs.

It is divided into several sub-functions:

(a) Manpower planning entails determining the number and type of personnel required.

(b) Recruitment to attract a sufficient number of potential employees to seek employment in the enterprise.

(d) Positioning, induction, and orientation.

(e) Transfers, promotions, layoffs, and terminations.

Directing:

Directing is the function of directing employees to perform efficiently and to contribute their full potential to the achievement of organizational goals. Jobs assigned to subordinates must be explained and clarified, they must be guided in job performance, and they must be motivated to contribute their best efforts with zeal and enthusiasm.

Thus, the function of directing includes the following sub-functions:

(a) Interaction

(b) Inspiration

Coordination:

Coordination is the process of establishing relationships among various parts of an organization so that they all pull in the same direction toward organizational goals. It is thus the process of connecting all organizational decisions, operations, activities, and efforts in order to achieve unity of action for the achievement of organizational goals.

As a management function, coordination includes the following subfunctions:

(a) Defined authority-responsibility relationships

(b) Directional unity

(d) Effective communication

(e) Effective leadership

Controlling :

Controlling is the process of ensuring that divisional, departmental, sectional, and individual performance is in line with predetermined objectives and goals. Deviations from objectives and plans must be identified, investigated, and corrected. Deviations from plans and objectives provide managers with feedback, and all other management processes, such as planning, organizing, staffing, directing, and coordinating, are continuously reviewed and modified as needed.

Thus, controlling entails the following steps:

(a) Performance evaluation in relation to predetermined objectives.

(b) Identifying deviations from these objectives.

What is the nature and scope of management ?

What is the Scope of Management?

To answer the question, “What is the nature and scope of management?” it is necessary to get an idea of what is management first. Companies engage in a variety of activities when conducting business, including planning, organizing, implementing, leading, and monitoring physical, financial, and information resources. Management is the knowledgeable handling of all of these organizational activities.

The management scope outlines the management steps required by a company to control work processes, complete projects, and deliver products or services. Planning and carrying out project tasks, goals, and deliverables are examples of management steps. It also typically includes the assignment of deadlines, milestones, and project team members.

Management, like any other subject, is concerned with clearly defined activities without which it cannot progress. It is restricted to managerial concepts, principles, and theory.

Enterprise functions that differ from one organization to the next are not covered. As a result, typical enterprise functions such as production, finance, marketing, and personnel fall outside the purview of management.

What is the Nature of management?

Characteristics of management reveal its nature and significance. These are discussed further below.

Universality

Management is a universal phenomenon in the sense that it is a common and necessary component in all businesses. Managers perform similar functions regardless of their position or the nature of the organization. Management fundamentals can be applied in all managerial situations, regardless of the organization’s size, nature, or location. Because managerial tasks and principles are universal, it follows that managerial skills are transferable and managers can be trained and developed.

Purposive

Management is always concerned with achieving organizational goals and objectives. Management success is measured by the extent to which the desired objectives are met. Management tasks in both economic and non-economic enterprises are directed toward effectiveness (i.e., attainment of organizational goals) and efficiency (i.e., goal attainment with economy of resource use).

Social Process

Management is essentially concerned with managing people organized in work groups; it includes retaining, developing, and motivating people at work, as well as caring for their satisfaction as social beings. All of these interpersonal relationships and interactions contribute to management being a social process.

Coordinating Force

Management coordinates the efforts of organization members by organizing interrelated activities in an orderly manner to avoid duplication and overlapping. Individual goals are reconciled with organizational goals, and human and physical resources are integrated.

Intangible

Management is a non-tangible asset. It is a force that cannot be seen.

Its presence is felt everywhere by the results of its efforts, which take the form of orderliness, adequate work output, a satisfactory working environment, employee satisfaction, and so on.

Continuous

Management is a constantly changing and evolving process. The management cycle will continue to operate as long as there is organized action to achieve group goals.

Composite Process

Management functions cannot be performed sequentially or independently of one another.

Management is a composite process composed of individual components. Several ingredients are used to perform all of the functions. As a result, the entire process is integrative and network-based.

Creative Organ

Management generates a synergistic effect by producing results that are greater than the sum of the individual efforts of the group members. It organizes operations, matches jobs to goals, and connects work to physical and financial resources. It brings new ideas, imagination, and visions to group efforts. It is a dynamic life, not a passive force that adapts to its surroundings.

Conclusion

Nature and scope of management is the conceptualization of maintaining the best hierarchies of work within an organization for getting the most amount of efficiency from the employees.