Management Notes

Reference Notes for Management

Nature of Management – Introduction to Management | Principles of Management

Nature of Management

Management is the social process of an enterprise’s managers integrating and coordinating resources toward the achievement of common, explicit goals.

During the past six decades, it has become a distinct discipline with a body of knowledge. Organizational efforts for common goals can be traced back to the beginning of management as an art form.

The profession of management has also evolved in recent decades. Large and medium-sized enterprises in India and elsewhere are typically managed by professionals – managers with little or no ownership of the enterprise and who view management as a career.

The nature of management as a science, an art, and a profession is discussed below:

1) Management as a Science 

Management as a Science

Management as a Science has emerged in recent years, evolving into a structured discipline, although its practice dates back centuries. The pioneering work of Frederick W. Taylor, often regarded as the father of scientific management, laid the foundation for management as a science.

Taylor employed scientific methods such as observation, experimentation, and analysis to manage production processes effectively. His efforts led to the development of fundamental management principles and the theory of scientific management.

Influential figures like Gantt, Emerson, Fayol, and Barnard further expanded on his work, contributing to a systematized body of management knowledge that is now studied, taught, and researched worldwide.

Modern management techniques are enhanced by powerful tools for analysis, decision-making, and prediction. With the development of mathematical models, management scientists have elevated the scientific approach to understanding organizational challenges. Key methodologies include:

  • Observation and data classification based on real-world phenomena.
  • Laboratory research to establish cause-effect relationships between variables.
  • The formulation of hypotheses that evolve into management principles when verified.

By applying these principles, managers can effectively analyze problems, develop solutions, and predict outcomes in practical scenarios.

While management has a systematized body of knowledge, it differs from natural sciences like physics and chemistry. This is because management is a social science focused on human behavior within organizations, which is often complex and variable. Unlike inanimate phenomena like light or heat, people’s behavior makes controlled experiments more challenging.

Thus, management principles lack the precision of exact sciences but share similarities with other social sciences like economics and psychology. Despite these limitations, management as a discipline remains invaluable.

The integration of software tools has further empowered managers to perform tasks with greater efficiency and accuracy. These tools provide robust solutions for analysis, prediction, and control, revolutionizing modern management practices.

2) Management as an art 

Managers apply the principles of management in their daily tasks, much like engineers use the science of engineering when constructing bridges. The practical application of engineering is an art, while engineering itself is a science. Similarly, management is both a science and an art.

As a discipline, management is grounded in concepts, theories, and principles, akin to medicine. A medical professional who neglects the science behind their field risks endangering lives. Likewise, a manager lacking management knowledge invites chaos and endangers the success of the organization.

Managers use management principles as guides to tackle organizational challenges, much like doctors rely on medical principles for diagnosis and treatment. These principles are not rigid rules but frameworks for making informed decisions.

Managerial decision-making often involves significant judgment and experience, blending the art of decision-making with the science of management principles.

The debate over whether management is a science or an art is futile because it is both. Advancements in management theory enhance its practical applications, while improvements in management practices drive further research, leading to progress in management science.

By integrating the science of management knowledge with the art of practical application, managers can achieve better organizational outcomes and drive continued growth and success.

3) Management as a Profession 

Management as a Profession

The concept of management as a profession has gained significant traction, particularly in developing countries like India. A professional manager is typically defined as someone who manages an enterprise as a career without an ownership stake.

While management is recognized as a distinct discipline with a systematic structure, it does not yet fully meet the rigorous standards of established professions like medicine or law. However, various management tools, techniques, and methodologies have been developed, enabling the discipline to grow and evolve.

Interestingly, a management degree is not mandatory to become a manager, unlike other professional fields. Many managers across India and globally lack formal management training, though opportunities for education in this field are expanding.

Reputable institutes like the Indian Institutes of Management (IIMs), the Management Development Institute (MDI), and the All India Management Association (AIMA) offer formal training and short-term management courses to aspiring managers and corporate professionals.

Furthermore, many companies invest in their employees through internal training programs to enhance managerial skills. Despite these advancements, the professionalization of management faces challenges. Unlike doctors or lawyers, managers do not adhere to a universal code of conduct.

Although organizations like the American Management Association (AMA) and AIMA represent management practitioners, their focus is not on enforcing professionalism. Additionally, unethical practices such as bribery, manipulation of markets, and sabotage of trade unions continue to hinder the reputation of management as a profession.

The lack of a standardized ethical framework for managers underscores the need for reform. To elevate management professionalism, businesses must emphasize values like “service above self” over monetary gains. While mobile managers are often viewed as progressive, prioritizing service and ethical practices could enhance the credibility of management as a true profession.

Last Note: From the above discussion, it is clear that management is a science, an art, and a profession. The study of management is a social science, not a natural science, and it is not as much a profession as medicine and law.

References

  • THE NATURE OF MANAGEMENT. (n.d.). https://courses.washington.edu/inde495/leca.htm
  • Team, M. T. (2017, July 6). MBA TUTS TEAM. MBA TUTS. https://www.mbatuts.com/nature-management/

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Smirti

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