CONCEPT OF MANAGEMENT

BASIC CONCEPT OF MANAGEMENT FOR CBSE STUDENTS AND FURTHER CLASSES

CONCEPT OF MANAGEMENT
CONCEPT OF MANAGEMENT

Management is the very popular term and has used extensively for all the types of activities and mainly for taking charge of different activities in any enterprises. As you have been from the above example and we can say case study that management is an activity which is necessary whatever there is a group of people working in an organization. People in organizations are performing diverse tasks but they are all working towards the same goals. Management aims at guiding their efforts towards achieving common objectives – goals. Thus, management has to see that tasks are completed and goals are achieved with the least amount of resources at a minimum cost.

Management has therefore, been defined as a process getting things done with the aim of achieving goals efficiently and effectively. We need to analyze this definition. There are certain terms which require elaboration. These are process, effectively and efficiency.

Process in the definition means the primary functions and activities that management performs to get things done. These functions are planning, organizing, staffing, directing and controlling which we will discuss later in the chapter and the book.

Being effective or doing work effectively basically means finishing the given tasks. Effectiveness in the management is concerned with doing the right tasks, completing activities the activities and achieving the goals. In the other words, it is concerned with the end result.

But, it is not enough to just complete the tasks. There is another aspect also, i.e., being efficient or as we say doing work efficiency.

Efficiency means doing the tasks correctly and with minimum cost. This is a kind of cost-benefit analysis involved and the relationship between inputs and outputs. If by using fewer resources more benefits are derived then efficiency has increased. Efficiency is also increased when for the same benefits or outputs fewer resources are used and less costs are incurred. Inputs resources are money, materials, equipment, and persons required to do particular tasks. Obviously, management is of these resources, because they reduce costs and ultimately lead to higher profits.

Effectiveness Versus Efficiency

These two terms are different but they’re interrelated. For management, it’s important to be both effective and efficient. Effectiveness and efficiency are two sides of an equivalent coin. But these two aspects got to be balanced and management sometimes has got to compromise efficiently. Here we are given you an example: it is easier to be effective and ignore efficiency i.e, given the complete tasks but at a high cost. Suppose, a company’s target production is 6000 units in a year. To realize this target the manager has got to operate double shifts thanks to power outage most of the time.  The manager is able to produce 6000 units but at a higher production cost. In the case, the manager was effective but not so efficient, since for the same outputs more inputs were used.

At times, a business may concentrate more on producing goods with fewer resources i.e, cutting down cost but not achieving the large target production. Consequently, the goods don’t reach the market, and hence the demand for then declines and competitors enter the market. This is the case of being efficient but not effective since the goods did not reach the market.

Therefore, it’s important for management to success goals with minimum resources i.e, as efficiently as possible while maintaining a balance between effectiveness and efficiency. Usually high efficiency is related to high effectiveness which is that the aim of all managers. But the undue emphasis on the high efficiency without being effective is also not desirable. Poor management is thanks to both inefficiency and ineffectiveness.

DEFINITION OF MANGEMENT

DEFINITION OF MANGEMENT
DEFINITION OF MANAGEMENT

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