INTRO TO MANAGEMENT

INTRODUCTION TO MANAGEMENT

A business develops in course of time with complexities. With

increasing complexities managing the business has become a

difficult task. The need of existence of management has increased

tremendously. Management is essential not only for business

concerns but also for banks, schools, colleges, hospitals, hotels,

religious bodies, charitable trusts etc. Every business unit has

some objectives of its own. These objectives can be achieved with

the coordinated efforts of several personnel. The work of a

number of persons are properly co-ordinated to achieve the

objectives through the process of management is not a matter of

pressing a button, pulling a lever, issuing orders, scanning profit

and loss statements, promulgating rules and regulations. Rather it

is the power to determine what shall happen to the personalities

and happiness of entire people, the power to shape the destiny of a

nation and of all the nations which make up the world." Peter F.

Drucker has stated in his famous book "The Practice of

Management" that, "the emergence of management as an essential,

a distinct and leading social institution is a pivotal event in social

history. Rarely in human history has a new institution proved

indispensable so quickly and even less often as a new institution

arrived with so little opposition, so little disturbance and so little

controversy?"

Management is a vital aspect of the economic life of man, which is an

organised group activity. It is considered as the indispensable institution in

the modern social organization marked by scientific thought and

technological innovations. One or the other form of management is

essential wherever human efforts are to be undertaken collectively to satisfy

wants through some productive activity, occupation or profession.

It is management that regulates man's productive activities through

coordinated use of material resources. Without the leadership provided by

management, the resources of production remain resources and never

become production.

Management is the integrating force in all organized activity. Whenever

two or more people work together to attain a common objective, they have

to coordinate their activities. They also have to organize and utilize their

resources in such a way as to optimize the results. Not only in business

enterprises where costs and revenues can be ascertained accurately and

objectively but also in service organizations such as government, hospitals,

schools, clubs, etc., scarce resources including men, machines, materials

and money have to be integrated in a productive relationship, and utilized

efficiently towards the achievement of their gals. Thus, management is not

unique to business organizations but common to all kinds of social

organizations.

Management has achieved an enviable importance in recent times. We are

all intimately associated with many kinds of organizations, the most

omnipresent being the government, the school and the hospital. In fact,

more and more of major social tasks are being organized on an institution

basis. Medical care, education, recreation, irrigation, lighting, sanitation,

etc., which typically used to be the concern of the individual or the family,

are now the domain of large organizations. Although, organizations other

than business do not speak of management, they all need management. It is

the specific organ of all kinds of organizations since they all need to utilize

their limited resources most efficiently and effectively for the achievement

of their goals. It is the most vital forces in the successful performance of all

kinds of organized social activities.

Importance of management for the development of underdeveloped

economies has been recognized during the last one and a half decade. There

is a significant gap between the management effectiveness in developed

and underdeveloped countries. It is rightly held that development is the

function not only of capital, physical and material resources, but also of

their optimum utilization. Effective management can produce not only

more outputs of goods and services with given resources, but also expand

them through better use of science and technology. A higher rate of

economic growth can be attained in our country through more efficient and

effective management of our business and other social organizations, even

with existing physical and financial resources. That is why it is now being

increasingly recognized that underdeveloped countries are indeed

somewhat inadequately managed countries.

The emergence of management in modern times may be regarded as a

significant development as the advancement of modern technology. It has

made possible organization of economic activity in giant organizations like

the Steel Authority of India and the Life Insurance Corporation of India. It

is largely through the achievements of modern management that western

countries have reached the stage of mass consumption societies, and it is

largely through more effective management of our economic and social

institutions that we can improve the quality of life of our people. It is the

achievements of business management that hold the hope for the huge

masses in the third world countries that they can banish poverty and

achieve for themselves decent standards of living.