• The core meaning of management is the act of managing human, technical and financial resources. The person who performs these tasks is called the manager,
• It can be considered as an organized group (team) effort to achieve the set goals and targets of the organization.
• The various other definitions are as follows

Peter Drucker:

• Peter Drucker in his book “The Principles of Management” defines management as  “It is a multi-purpose organ that manages the business and manages the managers and manages the workers and the work.”. According to him management consists of the interlocking functions of creating corporate policy and organizing, planning, controlling, and directing the organizational resources (Men, Money, and Machines) in order to achieve the objective of that policy.

Harold Koontz:

• It is the art of getting things done through and with people in formally organized groups.

Henry Fayol:

• To manage is to forecast and to plan, to organize, to command, to coordinate and to control.

Mary Cushing Nile:

• It is that which achieves a social objective with the best use of human, material, energy, and time with satisfaction for the participants and the public.

Effectiveness versus Efficiency:

•  For management, it is important to be both effective and efficient. Effectiveness and efficiency are two sides of the same coin. These two aspects need to be balanced and sometimes management has to compromise with the efficiency.  Many times to achieve targets (effectiveness) the efficiency of the system is compromised. 
• It is important for management to achieve goals (effectiveness) with minimum resources i.e.,(optimum efficiency). Generally, high efficiency is associated with high effectiveness which is the aim of all managers. But it is to be noted that undue emphasis on high efficiency without being effective is not desirable.
• Poor management is due to both inefficiency and ineffectiveness

Characteristics of Management:

Management is a Goal-oriented Process:

• Every organization has a set of basic goals which are the basic reason for its existence. These goals should be simple and clearly stated.  
• Management coordinates and leads the efforts of different individuals in the organization towards achieving these goals.
  

Management is all pervasive:

• A process of management is carried out in all enterprises small, medium and large. Governments, schools, hospitals need good management for their optimal performance. It is carried out around the globe in all the countries. Methods may be different but management is required everywhere. The difference in methods depends on political set up, social culture, traditions and history of that region.
  

Management is multidimensional:

• Management is a complex activity it consists of management of work, people, and operations.

Management of work:

• The main aim of the organization is to get work done in the form of manufacturing or service. Management converts this work in terms of achievable goals. These goals are assigned to individuals or team or bath.
• Necessary decisions are made, planning is done, the budgetary allocation is done and responsibilities are finalized. After this responsibility and authority are delegated.

Management of people:

• Human resources or people are the greatest assets of any organization. Automation has reduced the dependence on the human resource but still, people are important factors of any organization. Hence their effective management is necessary.
• During the management of people, the manager has to deal with individual and group of individuals. The people may have different natures, different likes, and dislikes, different behaviours. So managing them is a very difficult task. The manager has to create a rapport with people to achieve the goal of the organization.

Management of operations:

• During manufacturing or providing services, certain operations are to be performed. The flow of input material and the technology at the right time and right place is required for transforming the input into the desired output for consumption.  It involves coordination between man, machine, and money to achieve the goal at minimum cost.

Management is a continuous process:

• The process of management is a series of continuous, composite, but separate functions (planning, organizing,  directing, staffing and controlling). These functions are simultaneously performed by all managers all the time.
• When one goal is achieved another goal is set and thus process continues.

Management is a group activity:

• Every member of the organization has a different purpose for joining the organization. But all of them work together to achieve organizational goal. The achievement of this common organizational goal depends on the teamwork and coordination between these individuals.
• At the same time manager has to see that the personal goals of individuals are also achieved an individual can foresee their growth in the organization. 

Management is a dynamic function:

• Management is not a stagnant process, it has to change and adapt itself as per changing environment which is influenced by the political, cultural and economic factors. Due to advancement in technology the environment changes continuously, hence management has to change and review their strategies as per the change in environment.

Management is an intangible:

• We cannot see the management but we can feel its presence in the organization, through the different processes carried out in the organization. Presence of management can be felt in successful organizations where the goals of the organization are met, targets are achieved, employees are happy and satisfied. Every function of the organization is clearly defined. Necessary responsibility and authority are delegated to the right people at the right level. Thus the function of the organization is smooth without any chaos.

Effective Management or Objectives of Management:

To meet the challenges of changes:

• In the era of Globalisation, Computerization, Privatisation, and entry of multinationals the changes are inevitable. These changes are critical and intense. Hence effective and professional managerial techniques can handle them successfully in order to stay afloat amidst intense competition. Complex nature of modern business can be handled only by scientific, professional and effective managerial techniques. It adapts the organization to changing demand of market/changing needs of societies.

Achievement of Group Goals:

• Organizational goals cannot be achieved individually. It requires several people to come together and work as a group (team) and every member of the group possesses some specialization of doing something to accomplish the task. Manager arranges the resources, integrate them in an effective manner to achieve goals.
• By defining objectives of the organization clearly, there would be no wastage of resources like time, manpower, money and effort. Managers plan to convert disorganized resources of men, machines, money etc. into a useful enterprise. To achieve the group goal these resources are coordinated, directed and controlled.

Optimum Utilization of Resources:

• By defining objectives of the organization clearly, there would be no wastage of resources like time, manpower, money and effort. The manager uses smart ways and converts disorganized resources of men, machines, money etc. into a useful enterprise. This way the productivity of the organization increases.
• Alternate use of idle resources is found

Minimization of Cost:

• Minimization of the cost and maximizing production is one of the ways to increase the profitability of the organization. At the same time, it may help the organization to offer its product at a lower cost to beat the competition.
• The idea of minimization of the cost is minimum input by proper planning and getting maximum output. Physical, human and financial resources are used in such a manner with the best combination to achieve cost reduction.

Survival and Growth:

• In the era of Globalisation, Computerization, Privatisation, entry of multinationals, and Government policy, the changes are inevitable. These changes are critical and intense. Hence effective and professional manager can handle them successfully in order to stay afloat amidst intense competition.
• Complex nature of modern business can be handled only by scientific and professional managerial techniques.

 Sound Organizational Structure:

• Effective management on the basis of clear organizational structure effectively delegates the work and finalize responsibility. Due to smooth and coordinated efforts, no overlapping of efforts takes place.
• Proper organizational structure establishes effective authority & responsibility relationship. Manager fills up various positions with the right persons, having the right skills, training, and qualification.

Generation of Employment:

• Good and innovative management results in the expansion and diversification of the business. It opens many job opportunities for people of society.

Essentials for Prosperity of Society:

•  Efficient management avoids wastage of scarce resources. By generating job it improves the standard of living of the people in the society. Organization comes with new innovative products and researchers which are beneficial for society.

Improvement in Corporate Image:

• Good management results in the quality of products and services. As the corporate image (Goodwill) is directly proportional to the quality, by improvement of quality the corporate image of the organization improves.

Employee Motivation:

• Effective management encourages initiative among its subordinates. It also encourages innovation. Incentives monetary or other improve willingness and efficiency of the employee.

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Planning is the primary function of management. It is the methodology by which certain objectives are identified and strategies are devised for its subsequent realization. It is a preparatory step. It is a systematic activity which determines what, why, how, when, how, who and where is going to perform a specific job.

Characteristics of Planning:

Primary or Basic Function:

Planning is the foundation on which all other managerial functions rest. It serves as a guide and framework for organizing, staffing, directing and controlling. Hence planning is the basic or primary or fundamental function of management.

Intellectual Process:

Planning is a mental exercise involving creative thinking, sound judgment and imagination, and not guesswork. It is a process rather than behaviour at a given point of time. The process determines the future course of action. It involves processes of understanding goals and facts, perception, analysis, estimation and thought.

Future-Oriented:

Planning primarily involves looking into the future. It requires anticipating future situations that ought to lead to correct decisions about the future course of action. It is a mental predisposition for things to happen in the future. Through forecasting, future events and conditions are anticipated and plans are drawn accordingly.

Goal-Oriented:

Planning is made to achieve set the objective of the business. Specific goals or objectives are set out in the plans along with the activities to be undertaken to achieve the goals. Thus, planning is purposeful. If goals are not achieved then there is the failure of the plan. There is a wastage of individual efforts & energies. It provides a sense of direction to various activities.

Decision Oriented:

The need for planning arises only when alternatives are available.  Planning involves selecting a suitable course of action among various alternatives. Decision making that requires specific actions necessary to achieve future goals becomes an integral part of the planning process. Thus, decision making is an integral part of planning. The manager has to pick the best depending upon requirements & resources of the enterprises

Top Management Function:

Planning is undertaken at all levels of management as every level is concerned with determining a future course of action.

Flexible:

Planning is flexible as commitment is based on future conditions that are always changing. Since the future is unpredictable, planning must provide enough room to cope with the changes occurring in the future. Under the changed circumstances, the original plan of action must be revised and updated to make it more practical and up to date.

Pervasive:

Planning is required at all levels of management, in all departments and continuous managerial function that involves the complex processes of perception, analysis, conceptual thought, communication decision, and action. The scope of planning may differ from one level of management to another. The top-level management is concerned about planning the organization as a whole. The middle-level management may be more specific in departmental plans while the lower level management plans the implementation of the plan on day to day basis.

Continuous and Dynamic Activity:

Planning is a never-ending activity due to the dynamic business environment. In order to be successful at planning, one has to adjust to changes taking place in the environment and react accordingly. Plans are prepared for specific period f time and at the end of that period, they are reevaluated and redesigned as per new requirements and changing conditions. Continuity of planning is related to the planning cycle. It means that a plan is framed, it is implemented, and is followed by another plan, and so on.

Basis of Control and Efficiency:

As per, Koontz and O’Donnell (1986) ‘plans furnish the standards of control. Unplanned action cannot be controlled and any attempt to control without plans would be meaningless.’ It leads to the accomplishment of objectives at the minimum possible cost. It ensures optimum utilization of resources and avoids wastage of resources. Planning leads to saving of time, effort and, money and optimum utilization of men, money, materials, methods, and machines.

Steps Involved in Planning:

Planning function of management is an intellectual function which involves the following steps:-

Step – 1: Establishment of Goals and Objectives of the Organization

Every organization must have certain goals or objectives. Objectives may be set for the entire organization and each department or unit within the organization. How all departments would contribute to the organizational goals is the plan that is to be drawn up.

It starts with the setting of goals and objectives of the organization. The attention of the manager is always at the end result of all activities planned. All the objectives should be stated in a clear, precise and unambiguous language. At the same time, they should be specified in a quantitative manner with a specific time period. It avoids confusion. Some times the objectives of some criteria like the performance of personnel cannot be specified quantitatively, then clear expectations should be mentioned.

In short, the objectives should be specific, measurable, archivable, realistic and time-bound. If the end result is clear it becomes easier to work towards the goal. Objectives have to percolate down to each unit and employees at all levels.

Step – 2: Establishment of Planning Assumptions or Premises:

Planning premises are the assumptions about the likely shape of events taking place in the future. They form the basis of planning. Therefore, the manager is required to make certain assumptions about the future.

In determines probable causes of deviation of the actual plan and probable causes behind it. It also determines probable obstacles in the way of business. It determines which causes and obstacles can be avoided and corresponding actions are decided to avoid them to the maximum extent or to minimize the effect on the business.

The base material for the assumptions may be in the form of forecasts, existing plans or any past information about policies. The premises must be the same for all and there should be total agreement on them. All managers involved in the planning should be familiar with and use the same assumptions. So that there is no discrepancy. Accurate forecasts, become essential for successful plans.

Planning premises may be internal or external. Internal premises includes capital investment policy, management of labour relations, philosophy of the management, The external premises include socio-economic, political and economic factors. Internal premises are controllable and external are non- controllable.

Step – 3: Identifying Alternative Course of Action:

Once objectives are set, assumptions are made. Then the next step would be to act upon them. There may be many ways to act and achieve objectives. All the alternative course of actions have to be considered. The course of action may be routine or innovative. If the project is important, then more alternatives should be generated and thoroughly discussed amongst the concerned members of the organization.

Step – 4: Evaluating Alternative Courses:

Each course will have many variables which have to be weighed against each other. Each and every alternative is evaluated by considering its pros and cons in reference to the resources available and the requirements of the organization. The positive and negative aspects of each proposal need to be evaluated in light of the objective to be achieved. Feasibility and consequences of all the alternatives are studied.

Step – 5: Selecting an Alternative:

This is the step of decision making. The manager will have to apply permutations and combinations and select the best possible course of action. After scientific evaluation and using quantitative techniques, the best alternative is chosen. The selected alternative would be the most feasible, profitable and with least negative consequences.

When alternatives can not be subjected to mathematical analysis, the manager’s experience, judgment, and intuition play an important role. Sometimes, a combination of plans may be selected instead of one best course.

Step – 6: Formulation of Derivative Plans:

Derivative plans are the sub plans or secondary plans which help in the achievement of the main plan. They indicate time schedules, sequences of the tasks. These are detail plans which include policies, procedures, rules, programmes, budgets, schedules, drawings etc. These plans will flow from the basic plan and support, expedite the achievement of basic plans.

Step – 7: Securing Co-operation:

Next step is to take subordinates or those who have to implement these plans into confidence. Due to which subordinates may feel motivated since they are involved in the decision-making process. They give suggestions and improvements in the plan.

Step – 8: Implementing the plan:

The step is concerned with putting the plan into action. This step involves other departments of the organization. This step would also involve organizing for labour and purchase of machinery.

Step – 9: Follow up/Appraisal of Plans:

This step establishes a link between planning and controlling function. To see whether plans are being implemented and activities are performed according to schedule is also part of the planning process. Monitoring the plans is equally important to ensure that objectives are achieved. After choosing a particular course of action, it is put into action. The appraisal is done on the basis of feedback or information received from departments or persons concerned. It helps management to locate and correct deviations or modify the plan.

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