Nature of Management

Management is the process of getting things done through others to achieve organisational goals. Its key functions are:

1. Planning – Setting objectives and deciding in advance the course of action to achieve them.
2. Organising – Identifying and grouping work, and assigning duties, authority and resources to carry it out.
3. Staffing – Recruiting, selecting, training and developing the right people for the right jobs.
4. Directing – Leading, motivating, communicating with and supervising employees to work towards goals.
5. Controlling – Comparing actual performance with standards and taking corrective action where needed.

These five functions together form the management process.

Management is the process of planning, organising, staffing, directing and controlling the resources of an organisation to achieve its predetermined goals efficiently and effectively. Its essential features are described below.

1. Goal-oriented process Management is purposeful. It brings together the efforts of different people and directs them towards predetermined objectives. For example, a business may aim at earning a 15% profit or capturing a larger market share, and all managerial activities are geared towards such goals.

2. All-pervasive Management is required in every type of organisation (economic, social or political) and at every level, from top to bottom. Every organisation, whether a small shop or a large multinational, needs management.

3. Multidimensional Management has three dimensions:

• Management of work: deciding what work is to be done and how.
• Management of people: dealing with employees as individuals and as a group, motivating and leading them.
• Management of operations: managing the production and supply of goods and services.

4. Continuous process Management is an ongoing activity. Planning, organising, staffing, directing and controlling are performed repeatedly; as soon as one task is completed, another begins.

5. Group activity Management is concerned with getting things done through others. The efforts of individuals are coordinated and integrated into a common goal, so it is essentially a group activity.

6. Dynamic function Management must adapt itself to the changing social, economic, technological and political environment. A good manager anticipates changes and adjusts the organisation accordingly to survive and grow.

7. Intangible Management cannot be seen or touched, but its presence is felt through results such as orderliness, satisfied employees, growth and profits. Its absence shows in chaos, low morale and losses.

8. Composite process Management is made up of interrelated functions. No single function can be performed in isolation; each depends on the others.

9. Both an art and a science Management has an organised body of knowledge (science) and requires personal skill, creativity and practice (art). It is also treated as a profession because of its specialised knowledge and code of conduct.

10. Situational There is no single best way of managing; the technique used depends on the situation, and the manager must decide the method according to prevailing circumstances.

In short, management is a goal-oriented, all-pervasive, multidimensional, continuous, dynamic and situational group activity that coordinates human and material resources for achieving organisational objectives.

Top-level management, middle-level management and lower-level (supervisory/operational) management.

These are the three levels of management arranged in a hierarchy — top level (board of directors, CEO, managing director) sets objectives and policies, middle level (departmental heads, managers) implements them, and lower level (supervisors, foremen) directly oversees the operating employees.

Management as a science can be described as follows:

1. Systematic body of knowledge: Management has a systematic and organised body of knowledge consisting of principles, concepts, theories and techniques (such as unity of command, span of control, MBO, etc.) which are taught and learned.

2. Principles based on observation and experimentation: The principles of management have been developed through observation, research and experimentation over a long period, just like the principles of natural science.

3. Universal validity of principles: The principles of management are universal in nature. They can be applied in all types of organisations, at all levels and in all situations, though their application may vary.

4. Cause-and-effect relationship: Management establishes a cause-and-effect relationship between managerial actions and results. For example, proper planning leads to effective performance.

5. Verification of principles: The principles of management can be verified by applying them in real situations. If the results match expectations, the principles are considered valid.

6. However, it is not an exact science: Management is a social science, not an exact or pure science like physics or chemistry. It deals with human beings whose behaviour is unpredictable. Therefore, its principles are flexible and situational, not absolute.

Conclusion: On the basis of the above features, management is regarded as a science — but a social or behavioural science rather than an exact science.

Existence of theoretical knowledge, personalised application, and practice and creativity.

Management is generally divided into three levels, arranged in a hierarchy of authority: top-level, middle-level and lower-level (supervisory) management.

1. Top-level management It is the highest level of management, consisting of the board of directors, managing director, general manager and other top executives. It is responsible for framing the overall objectives, policies and strategies of the organisation. It coordinates and controls the whole enterprise, represents it before outsiders, and remains accountable to the shareholders for the overall performance of the business. It devotes most of its time to planning and organising.

2. Middle-level management It lies between top-level and lower-level management and includes departmental managers and branch managers. It acts as a link between top management and supervisory management. It interprets the policies and plans framed by top management and converts them into departmental plans, assigns duties to supervisors, and coordinates the activities of different departments. It devotes most of its time to organising and directing.

3. Lower-level (supervisory) management It is the lowest level of management, consisting of supervisors, foremen and section officers who work directly with the operating employees. It supervises and guides workers in their day-to-day work, maintains discipline, ensures quality of work, and reports the performance of workers to the middle level. It devotes most of its time to directing and controlling.

Identification: The roles of a manager in Nepalese business organisations are interpersonal roles, informational roles, and decisional roles (Mintzberg's classification).

Explanation:

1. Interpersonal roles: These arise from the manager's formal authority and involve relationships with people.

• Figurehead: The manager represents the organisation at ceremonial and legal functions — signing certificates, attending inaugurations, receiving official delegations, and representing the firm before government offices such as the Company Registrar's Office or Inland Revenue.
• Leader: The manager motivates, guides, and develops subordinates through supervision, training, counselling, and performance appraisal, and maintains discipline in the workplace.
• Liaison: The manager acts as a connecting link with outsiders — banks, suppliers, customers, trade unions, and government agencies — and coordinates with other departments.

2. Informational roles: These involve collecting, processing, and transmitting information.

• Monitor: The manager continuously scans the internal and external environment for information about market trends, competitors, government policies, and employee performance.
• Disseminator: The manager passes relevant information to subordinates so that they can perform their jobs effectively.
• Spokesperson: The manager speaks on behalf of the organisation to outsiders — the media, shareholders, government bodies, and the general public.

3. Decisional roles: These involve making choices and taking action.

• Entrepreneur: The manager initiates new ideas, products, markets, and improvement projects to keep the organisation competitive.
• Disturbance handler: The manager resolves conflicts, strikes, grievances, and unexpected crises such as supply failures or machine breakdowns.
• Resource allocator: The manager distributes money, materials, manpower, and time among departments and projects according to priority.
• Negotiator: The manager bargains with trade unions over wages and working conditions, and with suppliers and customers over prices and contracts.

In the Nepalese context — with small-scale industries, family-run businesses, labour unrest, load-shedding, and changing government policies — a manager must perform all these roles simultaneously to keep the organisation efficient and competitive.

Planning and organising.

Planning means setting objectives and deciding in advance how to achieve them; organising means arranging resources and tasks so that the plan can be carried out.

Comparison of Top, Middle and Lower Level Management

Management is arranged in a hierarchy of three levels. They differ as follows:

Conclusion: The three levels are interdependent — top management gives direction, middle management coordinates, and lower management executes — and together they achieve organisational objectives.

Middle level management performs the functions of implementing the plans and policies framed by top level management and coordinating the activities of the supervisory (lower) level management.

Management as a Profession

A profession is an occupation that requires specialised knowledge, formal training, a service motive, and a code of conduct, and whose members are regulated by a recognised body. Management is increasingly regarded as a profession, though it is not a fully fledged one like law or medicine. The following features explain its professional character:

1. Specialised body of knowledge: Management has a well-developed body of knowledge consisting of principles, theories and techniques (planning, organising, staffing, directing, controlling). This knowledge can be acquired through formal education such as BBA, MBA and MBS.

2. Formal education and training: Many universities and institutes offer degree and diploma courses in management. Managers are trained in these institutions before entering the field, which is a key test of a profession.

3. Service motive: The primary aim of management is to serve society by producing quality goods and services, generating employment and using resources efficiently. Profit is a means, not the sole end.

4. Code of conduct: Managers are expected to follow ethical norms such as honesty, fairness, transparency and social responsibility. Professional bodies like the Management Association lay down such standards, though they are not strictly enforced.

5. Representative association: Associations such as the Nepal Management Association and international bodies like AIMA exist to regulate and develop the profession. However, membership is not compulsory for practising managers.

Conclusion: Management satisfies most attributes of a profession, but because entry is not restricted by a licence, there is no single enforcing body, and managers are not bound by a rigid code, it is best described as a semi-profession or an emerging profession rather than a full profession.

Department manager (e.g., marketing manager)

Middle level management lies between top management and lower-level (supervisory) management. It implements the plans and policies framed by top management and supervises the work of lower-level managers. A department manager, such as a marketing manager, is a typical example of this level.

Formulating the organisation's overall objectives and policies, and coordinating the activities of all departments.

Two responsibilities of top level management:

1. Determining objectives and policies – Top level management sets the long-term goals of the organisation and frames the policies and strategies needed to achieve them.
2. Coordinating and controlling the whole organisation – It integrates the work of all departments and exercises overall control to ensure that the goals are achieved efficiently.

Management is referred to as an art because it involves the skilful application of knowledge, personal judgement and creativity to achieve desired results. Like other arts, it has the following features:

1. Existence of theoretical knowledge: Management has a systematic body of knowledge consisting of principles, concepts and techniques (such as planning, organising, staffing, directing and controlling) which a manager learns before practising.

2. Personal skill: Mere knowledge of management principles is not enough. A manager must develop personal skills in leadership, communication, decision-making and human relations. Two managers with the same knowledge may perform differently because of differences in their skill.

3. Application of knowledge: Like an artist who applies learned techniques to create something, a manager applies management principles to real situations. Knowledge becomes useful only when it is put into practice.

4. Creativity and innovation: A manager, like an artist, has to be creative. Every situation is unique, so a manager cannot follow readymade solutions; he must devise new ways to solve problems and motivate people.

5. Practice and perfection: Just as an artist attains perfection through constant practice, a manager improves his art through continuous experience and practice. The more a manager practises, the more efficient he becomes.

6. Goal-oriented: The art of management is directed towards achieving organisational goals efficiently and effectively, using human and material resources in the best possible manner.

Thus, because management requires knowledge, skill, creativity, application and constant practice to produce results, it is rightly called an art.