GOVERNMENT FIRST GRADE COLLEGE HONNAVAR
Management Theory and Practice
Objectives/Aims or Importance of Management: The main objective of
management is to run the enterprise smoothly. The profit making objective of
business is also to be taken care while undertaking various functions. The main
objectives of the management are as follows—
1. Optimum utilisation of resources: The most important objectives of the
management are to use various resources of the enterprise in a most economical
way. The proper use of men, materials, machines, and money will help a business
to earn sufficient profits to satisfy various interests of proprietor, customers,
employees and others.
2. Growth and development of business: By proper planning, organising and
direction the management leads a business to grow and develop in a sound manner
and helps in profitable expansion of the business. It provides a sense of security
among the employers and employees.
3. Better quality goods: The aim of the sound management has always been to
produce the better quality products at minimum cost. Thus, it tries to remove all
types of wastages in the business.
4. Ensuring regular supply of goods: Another objective of management is to
ensure the regular supply of goods to the people. It checks the artificial scarcity of
goods in the market. Hence, it keeps the prices of goods within permissible limits.
5. Discipline and morale: The management maintains the discipline and boosts
the morale of the individuals by applying the principles of decentralisation and
delegation of authority. It motivates the employees through monetary and
nonmonetary incentives. It helps in creating and maintaining better work culture.
6. Mobilising best talent: The employment of experts in various fields will help in
enhancing the efficiency of various factors of production. There should be a proper
environment which should encourage good persons to join the enterprise. The
better pay scales, proper amenities, future growth potentialities will attract more
people in joining a concern.
7. Promotion of research and development: Management undertakes the
research and development to take lead over its competitors and meet the
uncertainties of the future. Thus, it provides the benefits of latest research and
technology to the society.
8. Minimise the element of risk: Management’s main focus is to forecast the
future. Though the exact future can never be predicted yet, but on the basis of
previous experience and existing circumstances, management can minimise the
element of risk. Management always keeps its ears and eyes open to the changing
circumstances in the present business world.
9. Improving performance: Management should aim at improving the
performance of each and every factor of production. The environment should be so
suitable that workers are able to contribute their maximum to the enterprise. The
fixing of objectives of various factors of production will help them in improving
their performance.
10. Solution of Business problems and disputes: Disputes within in the
organization always lower the employee morale which leads lower productivity.
Labour conflicts, strikes etc. will hinder the organizational growth. In such cases a
good management decision will find the solution for industrial unrest and proper
decision at right time will solve the dispute among the workers and management.
Management V/s Administration
Basis for
Management Administration
Comparison
Meaning An organised way of managing The process of
people and things of a business administering an
organization is called the organization by a group of
Management. people is known as the
Administration.
Authority Middle and Lower Level Top level
Role Executive Decisive
Concerned with Policy Implementation Policy Formulation
Area of operation It works under administration. It has full control over the
activities of the
organization.
Applicable to Profit making organizations, i.e. Government offices,
business organizations. military, clubs, business
enterprises, hospitals,
religious and educational
organization
Basis for
Management Administration
Comparison
Decides Who will do the work? And What should be done?
How will it be done? And When is should be
done?
Work Putting plans and policies into Formulation of plans,
actions. framing policies and
setting objectives
Focus on Managing work Making best possible
allocation of limited
resources.
Key person Manager Administrator
Represents Employees, who work for Owners, who get a return
remuneration on the capital invested by
them.
Function Executive and Governing Legislative and
Determinative