Meaning, Objectives, Importance and Characteristics of Management Management
In Business Studies, we learn about business management study. We know what a business is. But what about Management? Business Management does not merely mean managing the business, it includes different facets of the business that are being focused to manage the overall business.
In this section, we will know about the nature and characteristics of management. Knowing nature and its features will help us to strengthen our concept about management which will help us to know the true meaning of this business function.
What is Management?
Management is the systematic process of planning, organising, leading, and controlling organisational resources to achieve specific goals efficiently and effectively. It serves as the backbone of any organisation, ensuring that objectives are met through coordinated efforts. Understanding the characteristics of management is essential for understanding how organisations operate and succeed.
Key Characteristics of Management
Goal-Oriented Process: Management focuses on achieving organisational objectives by aligning individual efforts toward common goals. This ensures that all activities contribute to the organisation's mission.
Pervasive: Management principles are applicable across all types of organisations—social, economic, or political—and at all levels, from top executives to frontline supervisors. This universality underscores its fundamental importance.
Multidimensional:
Management of Work: Involves planning and executing tasks to achieve organisational goals.
Management of People: Entails leading and motivating individuals to perform effectively.
Management of Operations: Oversees the processes that transform inputs into desired outputs.
Continuous Process: Management is an ongoing series of interrelated functions, including planning, organising, staffing, directing, and controlling, that are performed continuously to adapt to changing environments.
Group Activity: It involves coordinating the efforts of a group of people, recognising that teamwork and collaboration are essential for achieving organisational objectives.
Dynamic Function: Management must adapt to the ever-changing external environment, including social, economic, and political factors, to ensure organisational success.
Intangible Force: While management itself is not visible, its presence is felt through the efficient and effective functioning of an organisation, leading to the achievement of goals.
Characteristics of Strategic Management
Strategic management involves the formulation and implementation of major goals and initiatives, considering resources and an assessment of internal and external environments. Key characteristics include:
Long-Term Focus: Strategic management is concerned with long-term goals and the direction of the organisation.
Comprehensive Framework: It provides a structured approach for aligning resources and actions with mission, vision, and strategy throughout an organisation.
Competitive Advantage: Aims to achieve and maintain a competitive edge in the market by responding effectively to opportunities and threats.
Dynamic Process: Involves continuous assessment and adjustment to strategies based on changes in the internal and external environment.
Characteristics of Management Accounting
Management accounting focuses on providing financial information to managers for decision-making. Its characteristics include:
Forward-Looking: Emphasises future projections rather than historical data.
Decision-Oriented: Provides relevant information to assist management in planning, controlling, and decision-making.
Flexible: Not bound by standardised rules, allowing adaptation to the specific needs of the organisation.
Confidential: Information is used internally and is not disclosed to external parties.
Nature and Characteristics of Management
Management is both an art and a science, combining theoretical principles with practical application. Its nature includes:
Universal Application: Applicable to all types of organisations and levels of management.
Systematic Discipline: Involves a structured approach with established principles and practices.
Social Process: Involves managing people and relationships to achieve organisational goals.
Management is a multifaceted and dynamic process that is pivotal in achieving organisational objectives. It combines planning, organising, leading, and controlling to ensure efficiency and effectiveness. Whether viewed as a goal-oriented, pervasive, or intangible force, the characteristics of management highlight its universality and importance in all types of organisations. By understanding its principles and adapting to changing environments, management not only drives individual and group performance but also lays the foundation for sustainable success.
FAQs on Characteristics of Management
1. What is management and what are its main characteristics as per the CBSE 2025-26 syllabus?
Management is the process of getting things done with the aim of achieving organisational goals effectively and efficiently. As per the CBSE syllabus, its main characteristics are:
- Goal-Oriented Process: It integrates individual efforts to achieve group goals.
- Pervasive: It is required in all organisations—business and non-business, big or small.
- Multidimensional: It involves managing work, people, and operations.
- Continuous Process: It is an ongoing series of functions like planning and controlling.
- Group Activity: It involves coordinating a group of people towards a common objective.
- Dynamic Function: It adapts to the changing internal and external environment.
- Intangible Force: Its presence is felt through the results it achieves, such as orderliness and profitability.
2. Why is management considered a multidimensional activity? Explain its dimensions.
Management is considered multidimensional because it is a complex activity that does not involve a single task but three main dimensions:
- Management of Work: Every organisation exists to perform some work, like a factory producing goods or a school providing education. Management translates this work into goals and ensures they are achieved.
- Management of People: This involves dealing with employees as individuals with diverse needs and as a group. It is about motivating them and making their strengths effective for the organisation.
- Management of Operations: This links the management of work and people. It oversees the production process that transforms inputs like materials and technology into the desired outputs for consumption.
3. How can management be an 'intangible force' if its results are visible?
Management is called an intangible force because it has no physical form and cannot be seen or touched. However, its presence can be clearly felt in the way an organisation functions. For example, if an organisation's goals are being met on time, employees are happy and satisfied, and there is orderliness instead of chaos, it is a sign of good management. The positive results, like high profits or a disciplined environment, are the tangible evidence of this unseen force at work.
4. In what sense is management considered both an art and a science?
Management is considered both an art and a science for the following reasons:
- As a Science: Management is a science because it has a systematised body of knowledge with well-defined principles derived from observation and experimentation. These principles, like the division of work, provide universal guidelines for managers.
- As an Art: Management is an art because it requires the skillful and personalised application of existing knowledge to achieve desired results. A manager uses their creativity, experience, and intuition to handle unique situations, much like an artist uses their skill.
5. How does the 'dynamic function' characteristic of management apply to a modern business like a food delivery app?
The dynamic nature of management is crucial for a modern business like a food delivery app, which must constantly adapt to a rapidly changing environment. For instance, its management needs to respond to:
- Social trends: A sudden increase in demand for healthy or vegan food options.
- Technological changes: The potential use of drones for delivery or new AI for optimising delivery routes.
- Competitive actions: A rival app launching a major discount campaign.
- Economic factors: Rising fuel prices that affect delivery costs.
A successful app continuously modifies its strategies to survive and grow in this dynamic market.
6. What does it mean to say that management is 'pervasive'? Provide examples.
To say management is pervasive means its principles are universal and applicable to every type of organisation, regardless of its size, nature, or location. It is essential everywhere, not just in for-profit businesses.
- Example 1 (School): The principal manages teachers, students, and the curriculum to provide quality education.
- Example 2 (Hospital): The hospital administrator manages doctors, nurses, medical equipment, and patient flow to deliver healthcare services effectively.
- Example 3 (NGO): A non-profit's manager coordinates volunteers and fundraising activities to achieve a social cause.
7. What is the key difference between the characteristics and functions of management?
The key difference lies in what they describe. Characteristics define the fundamental nature of management—what it is. For example, management is a continuous process and a group activity. In contrast, functions describe the specific actions or steps managers perform—what management does. These functions are a sequence: Planning, Organising, Staffing, Directing, and Controlling (POSDC). In short, characteristics are the features, while functions are the duties.
8. Why is understanding the characteristics of management important for an organisation's success?
Understanding these characteristics is vital because it helps an organisation's leadership realise that management is not a one-time task but a continuous, adaptive process. It highlights the importance of teamwork (group activity), focuses efforts on objectives (goal-oriented), and forces the organisation to stay alert to external changes (dynamic function). By internalising these concepts, an organisation can increase efficiency, motivate its people effectively, and build a resilient structure that leads to long-term success and growth.
