Nature and Significance of Management — NCERT Solutions

Yes, I agree.

Coordination is the essence of management because:

• It integrates group efforts into purposeful work
• It ensures unity of action among departments
• It is a continuous process that begins with planning and continues till controlling
• It is an all pervasive function needed at all levels of management
• It is the responsibility of all managers
• It harmonises individual goals and organisational goals

Without coordination, there would be conflict, overlapping of work and chaos instead of harmony and efficiency.

• Ashita produced the required 500 bracelets within the stipulated time, so she was effective.

Her cost was Rs 55,000 for 500 bracelets, i.e. $55{,}000 \div 500 = Rs\ 110$ per bracelet.
Since the target cost was Rs 100 per bracelet, she was not efficient.

• Lakshita produced only 450 bracelets instead of 500, so she was not effective.

Her cost was Rs 90 per bracelet, which is below the target cost of Rs 100, so she was efficient in cost terms.

Therefore:

• Ashita: effective but not efficient
• Lakshita: efficient but not effective

Management is considered both an art and a science.

Management as an art

Management is an art because it involves the skillful and personal application of knowledge to achieve desired results.

• It has a theoretical base.
• It requires personalised application of knowledge.
• It is based on practice, creativity and experience.

Management as a science

Management is a science because it has a systematised body of knowledge.

• It has principles developed through observation and experimentation.
• These principles have some universal validity, though not exact like natural sciences.
• So management is an inexact science.

Conclusion

Management has features of both. The practice of management is an art, while the principles of management form its science. Both complement each other.

Management does not meet all the criteria of a full-fledged profession, but it has some professional features.

Reasons it is not a full profession

• No restriction on entry: anyone can be appointed a manager.
• No mandatory degree is required everywhere.
• No statutory professional association with compulsory membership.

Features it does have

• A well-defined body of knowledge
• Availability of management education and training
• Some associations like AIMA with a code of conduct
• A service motive in many organisations

Conclusion

So, management is not a full-fledged profession, but it is profession-like and has many professional characteristics.

A successful enterprise must achieve its goals effectively and efficiently.

• Effectiveness means doing the right task and achieving the desired goal.
• Efficiency means doing the task correctly with minimum cost.

Both are necessary because:

• If an enterprise is only effective, it may achieve the target but at a high cost.
• If it is only efficient, it may save resources but fail to achieve the target.

Therefore, management must maintain a balance between the two. A successful enterprise reaches its goals and also uses resources wisely, leading to better results and higher profits.

Management is a series of continuous interrelated functions.

The main functions are planning, organising, staffing, directing and controlling. These are not isolated activities. A manager performs them continuously and often simultaneously.

• Planning sets the objectives and course of action.
• Organising arranges the resources and tasks.
• Staffing places the right people in the right jobs.
• Directing motivates and guides employees.
• Controlling checks performance and takes corrective action.

In real life, these functions overlap. A manager may be planning future work while also directing employees or controlling performance. Thus management is an ongoing, interconnected process rather than a one-time activity.

If a company wants to modify an existing product due to decreasing sales, the different levels of management should act as follows:

1. Top management

• Decide the overall objective of modification.
• Formulate the new strategy and policy.
• Approve the budget and major decisions.
• Analyse the market environment and competition.

2. Middle management

• Convert top management’s decision into departmental plans.
• Coordinate between departments such as production, marketing and finance.
• Arrange required resources, personnel and schedules.
• Ensure the plan is implemented properly.

3. Supervisory/operational management

• Directly supervise the actual work.
• Ensure production is carried out according to plan.
• Maintain quality, reduce wastage and guide workers.
• Report problems and ensure deadlines are met.

So, each level contributes according to its role in the hierarchy.

The remedy is to ensure coordination.

The firm already has planning, organisation structure, supervisory staff and control, but the problem is that the plans are not being followed. This shows a lack of proper coordination among departments and persons.

Remedies

• Improve coordination among departments
• Ensure clear communication of plans and policies
• Remove overlapping and duplication of work
• Make all departments work toward common objectives
• Use directing and controlling to keep activities aligned with the plan
• Reconcile differences in timing, effort and approach

Thus, the management must deliberately synchronise the efforts of all units so that plans are carried out properly.