Business Studies I Chapter 1 Nature And Significance Of Management

1. Management is a Goal Oriented Process: We need management when we have some goals to be achieved. On the basis of his knowledge and experience, a manager tries to achieve the goals that  are pre-decided. 
2. Management is all Pervasive: All types of activities -business or non-business, need to be managed. If we remove management from these activities, the result will be either a complete failure or having inadequate results. This means that management is necessary to conduct all type of activities. Hence, it is pervasive or universal.
3. Management is a Group Activity: Management cannot refer to a single person who completes all activities of an organisation but it is always a group of people who execute the management activities (Managers). Hence, management is therefore a group effort.
4. Management is an Intangible Force: Management is that power which cannot be seen. It can only be felt. If any organisation is heading toward higher levels of achievement, it exeplifies good management.

1. Management of Work: Every organisation is established for doing some work, like a school provides education, a hospital treats patients and a factory produces goods. Of these no work can be completed satisfactorily without management.
2. Management of People: Each organisation is established for doing some work and the same is conducted by people. Hence, it is necessary to manage the people so that the work can be accomplished in a better way.
3. Management of Operations: To achieve the goals of an organisation many operations or activities are needed to be conducted, such as production, sale, purchase, finance, accounting, R&D, etc. Again, management is needed to make sure that operations are accomplished efficiently and effectively.

1. Management is a Goal Oriented Process: We need management when we have some goals to be achieved. A manager on the basis of his knowledge and experience tries to achieve the goals which are already decided. 
2. Management is all Pervasive: All types of activities-business and non-business require management for successful completion. If we remove management from these activities, the result will be a failure. Hence, management is necessary to conduct any type of activities. Hence, it is pervasive or universal.
3. Management is a Group Activity: This means that it is not a single person who completes all the activities of an organisation but it is always a group of persons (Managers).Hence, management is a group effort.
4. Management is an Intangible Force: Management cannot be seen. It can only be felt. If any organisation is heading toward higher levels of achievement, it signifies an existence of good management and vice-versa.

Characteristics of Management: Following are the main characteristics of management:

1. Management is a Goal Oriented Process: No goal in the hand-no need of management. In other words, we need management when we have some goals to be achieved. A manager on the basis of his knowledge and experience tries to achieve the goals which are already decided. Hence, nothing is wrong to say that management is a goal oriented process.
2. Management is all Pervasive: Anything minus management is nothing or zero. Here, by anything we mean all types of activities-business and non-business. If we deduct management out of these activities, the result will be failure or zero. It means management is necessary to conduct any type of activities. Hence, it is pervasive or universal.
3. Management is a Group Activity: It means that it is not a single person who con-summates all the activities of an organisation but it is always a group of persons (Managers).Hence, management is a group effort.
4. Management is an Intangible Force: Management is that power which cannot be seen. It can only be felt. If any organisation is heading toward higher levels of achievement, it signifies an existence of good management and vice-versa.
5. Management is based on some principles which are dynamic: Principles of management are changing according to the changing business environment. For the reason that environment is dynamic, many old principles have been replaced by new ones. 

(i) Management is an art.

(ii) Management is getting results successfully.

(iii ) Management is getting things done through others,

(iv) Management is getting things done with others.

A few management experts have defined management as an 'activity'. The word activity implies doing something; for example, reading, writing, running, swimming, etc., are all activities. In the same manner, it can also be said that management is not a person or a 'group of persons', rather management is an activity. Therefore, Management is an activity conducted in a group through cooperation and collaboration among individuals with different skills, capabilities and experiences.

perform the functions of management in a sequence, i.e., planning, organising, staffing, directingand controlling.

'No goal in the hand-no need of management'. In other words, we need management when we have some goals to be achieved. Management aims at ensuring timely completion of work, achieving production and sales targets, or obtaining fair returns from investments by using their imaginative and intuitive skills to utilise resources optimally. Hence, nothing is wrong to say that management is a goal oriented process.

(ii) Management is all Pervasive: Anything minus management is nothing or zero. Here, byanything we mean all types of activities-business and non-business. If we deductmanagement out of these activities, the result will be failure or zero. It means management isnecessary to conduct any type of activities. Hence, it is pervasive or universal.

(ii) Management of people.

(a) Organisational Objectives: It refers to ascertain objectives for the whole organisationwhich are survival, profit and growth:

(i) Survival: Every business wants to survive for long. So, management by taking positivedecisions with regard to different business activities should ensure that business survivesfor long.

(ii) Profit: Profit plays an important role in facing business hazards and successful runningof business activities. So, it must be ensured that adequate profit is earned by thebusiness.

(iii) Growth: Every business wants to grow. Management must ensure growth of business.Growth can be measured by sales, number of employees, products, capital investment,etc. If all these show increasing trend then it can be concluded that business is headingtowards growth.

(b) Social Objectives: It refers to assure health, safety and price control to the society.Main social objectives of management are included in the following list:

(i) To save environment from getting polluted.

(ii) To contribute in improving living standard.

(iii) To make available good quality products at a reasonable price.

(c) Personal Objectives: It refers to ascertainment of the objectives in reference to theemployees.

While ascertaining personal objectives, care must be taken that in no way there is a clash

between organisational and personal objectives.

Main objectives of management towards employees are as follows:

(i) To give deserving remuneration.

(ii) To provide good working environment.

(iii) To provide a share in profit.

(a) Organisational Objectives: It refers to ascertain objectives for the whole organisationwhich are survival, profit and growth:
(i) Survival
(ii) Profit
(iii) Growth

(b) Social Objectives: It refers to assure health, safety and price control to the society.Main social objectives of management are included in the following list:

(i) To save environment from getting polluted.

(ii) To contribute in improving living standard.

(iii) To make available good quality products at a reasonable price.

(c) Personal Objectives: It refers to ascertainment of the objectives in reference to theemployees.

While ascertaining personal objectives, care must be taken that in no way there is a clash

between organisational and personal objectives.

Main objectives of management towards employees are as follows:

(i) To give deserving remuneration.

(ii) To provide good working environment.

(iii) To provide a share in profit.

Social objectives are defined as the fulfilment of responsibility of an organisation towards society. Under this objective, manager promises to assure health, safety and price control. Main social objectives of management are included in the following list:

(i) To make available employment opportunities.

(ii) To save environment from getting polluted.

(iii) To contribute in improving living standard.

(iv) To participate in building charitable trusts, dispensaries, educational institutions, etc.

For example, Asian Paints has provided funds under its community development programme,which made possible the effective utilisation of local resources by the farmers. In the same manner, Steel Authority of India regularly provides services related to agriculture, industry, education, health, etc. to the people living nearby to its steel plant.

(ii) Social Objective: It refers to the consideration of the interest of society during managerialactivities.

(iii) Individual Objective: It refers to the consideration of the interest of employees duringmanagerial activities.

(i) To make available employment opportunities.

(ii) To save environment from getting polluted.

(iii) To contribute in improving living standard.

Management is responsible for setting and achieving objectives for the organisation. It has to achieve a variety of objectives in all areas considering the interest of all stakeholders including, shareholders, employees, customers and the government. The organizational objectives of management refer to the main objectives required to fulfill the economic goals of the business organization. These include survival, profit and growth.

1. Survival: The basic objective of every business is to survive for a longer period in the market. The management must ensure survival of the organization by earning enough revenue to cover its costs.
2. Profit: Only survival is not sufficient for business. Profit earning is essential for meeting the expenses and for the successful operation of the business. Thus management must ensure earning of sufficient profit.
3. Growth: The next important objective of the management is to ensure future growth and development of the business. Growth of a business can be measured in terms of sales volume increase in the number of employees, the number of products or the increase in capital investment, etc.

(ii) To ensure adequate earning of the organisation.

(ii) To provide good working condition.

(i) Management helps in achieving Group Goals: It is the most important characteristic ofmanagement that it is a goal-oriented activity. A manager achieves these goals by giving theproper direction to the efforts of all individuals,

(ii) Management Increases Efficiency: A manager increases efficiency through theoptimum utilisation of all the resources, such as, Man, Machine, Material and Money.

(iii) Management Creates a Dynamic Organisation: Every organisation works in an everchanging environment. To face the changing environment, many changes need to be madein the organisation as well. But people resist changes. Manager creates a favourableenvironment through introducing employees to the benefits arising by adapting changes.

(iv) Management helps in achieving Personal Objectives: Every employee wants to getsuitable remuneration, a share in profit, participation in management, promotion, etc. in theform of his personal objectives. This objective can only be achieved, if they work while usingtheir full abilities. Managers make employees able through motivation, good leadership andopen communication. As a result, they attain their individual objectives.

(v) Management helps in the Development of Society: Management has someresponsibility towards society. Managers by fulfilling their social responsibilities help in thedevelopment of society. These responsibilities are to provide employment opportunities, toprevent environment from getting polluted, to make available good quality products at areasonable price, etc.

(i) Management helps in achieving Group Goals: It is the most important characteristic ofmanagement that it is a goal-oriented activity. A manager achieves these goals by giving theproper direction to the efforts of all individuals,

(ii) Management Increases Efficiency: A manager increases efficiency through theoptimum utilisation of all the resources, such as, Man, Machine, Material and Money.

(iii) Management Creates a Dynamic Organisation: Every organisation works in an everchanging environment. To face the changing environment, many changes need to be madein the organisation as well. But people resist changes. Manager creates a favourableenvironment through introducing employees to the benefits arising by adapting changes.

(iv) Management helps in achieving Personal Objectives: Every employee wants to getsuitable remuneration, a share in profit, participation in management, promotion, etc. in theform of his personal objectives. This objective can only be achieved, if they work while usingtheir full abilities. Managers make employees able through motivation, good leadership andopen communication. As a result, they attain their individual objectives.

(v) Management helps in the Development of Society: Management has someresponsibility towards society. Managers by fulfilling their social responsibilities help in thedevelopment of society. These responsibilities are to provide employment opportunities, toprevent environment from getting polluted, to make available good quality products at areasonable price, etc.

(i) Management helps in achieving Group Goals: It is the most important characteristic ofmanagement that it is a goal-oriented activity. A manager achieves these goals by giving theproper direction to the efforts of all individuals,

(ii) Management Increases Efficiency: A manager increases efficiency through theoptimum utilisation of all the resources, such as, Man, Machine, Material and Money.

(iii) Management Creates a Dynamic Organisation: Every organisation works in an everchanging environment. To face the changing environment, many changes need to be madein the organisation as well. But people resist changes. Manager creates a favourableenvironment through introducing employees to the benefits arising by adapting changes.

(iv) Management helps in achieving Personal Objectives: Every employee wants to getsuitable remuneration, a share in profit, participation in management, promotion, etc. in theform of his personal objectives. This objective can only be achieved, if they work while usingtheir full abilities. Managers make employees able through motivation, good leadership andopen communication. As a result, they attain their individual objectives.

(i) Management helps in achieving Group Goals: It is the most important characteristic ofmanagement that it is a goal-oriented activity. A manager achieves these goals by giving theproper direction to the efforts of all individuals,

(ii) Management Increases Efficiency: A manager increases efficiency through theoptimum utilisation of all the resources, such as, Man, Machine, Material and Money.

(iii) Management Creates a Dynamic Organisation: Every organisation works in an everchanging environment. To face the changing environment, many changes need to be madein the organisation as well. But people resist changes. Manager creates a favourableenvironment through introducing employees to the benefits arising by adapting changes.

(iv) Management helps in achieving Personal Objectives: Every employee wants to getsuitable remuneration, a share in profit, participation in management, promotion, etc. in theform of his personal objectives. This objective can only be achieved, if they work while usingtheir full abilities. Managers make employees able through motivation, good leadership andopen communication. As a result, they attain their individual objectives.

(v) Management helps in the Development of Society: Management has someresponsibility towards society. Managers by fulfilling their social responsibilities help in thedevelopment of society. These responsibilities are to provide employment opportunities, toprevent environment from getting polluted, to make available good quality products at areasonable price, etc.

(ii) Management Increases Efficiency: A manager increases efficiency through theoptimum utilisation of all the resources, such as, Man, Machine, Material and Money.

(iii) Management Creates a Dynamic Organisation: Every organisation works in an everchanging environment. To face the changing environment, many changes need to be madein the organisation as well. But people resist changes. Manager creates a favourableenvironment through introducing employees to the benefits arising by adapting changes.

(iv) Management helps in achieving Personal Objectives: Every employee wants to getsuitable remuneration, a share in profit, participation in management, promotion, etc. in theform of his personal objectives. This objective can only be achieved, if they work while usingtheir full abilities. Managers make employees able through motivation, good leadership andopen communication. As a result, they attain their individual objectives.

(v) Management helps in the Development of Society: Management has someresponsibility towards society. Managers by fulfilling their social responsibilities help in thedevelopment of society. These responsibilities are to provide employment opportunities, toprevent environment from getting polluted, to make available good quality products at areasonable price, etc.

(ii) Management Increases Efficiency: A manager increases efficiency through theoptimum utilisation of all the resources, such as, Man, Machine, Material and Money.

(iii) Management Creates a Dynamic Organisation: Every organisation works in an everchanging environment. To face the changing environment, many changes need to be madein the organisation as well. But people resist changes. Manager creates a favourableenvironment through introducing employees to the benefits arising by adapting changes.

(iv) Management helps in achieving Personal Objectives: Every employee wants to getsuitable remuneration, a share in profit, participation in management, promotion, etc. in theform of his personal objectives. This objective can only be achieved, if they work while usingtheir full abilities. Managers make employees able through motivation, good leadership andopen communication. As a result, they attain their individual objectives.

(i) Management helps in achieving Group Goals: It is the most important characteristic ofmanagement that it is a goal-oriented activity. A manager achieves these goals by giving theproper direction to the efforts of all individuals,

(ii) Management Increases Efficiency: A manager increases efficiency through theoptimum utilisation of all the resources, such as, Man, Machine, Material and Money.

(iii) Management Creates a Dynamic Organisation: Every organisation works in an everchanging environment. To face the changing environment, many changes need to be madein the organisation as well. But people resist changes. Manager creates a favourableenvironment through introducing employees to the benefits arising by adapting changes.

(iv) Management helps in achieving Personal Objectives: Every employee wants to getsuitable remuneration, a share in profit, participation in management, promotion, etc. in theform of his personal objectives. This objective can only be achieved, if they work while usingtheir full abilities. Managers make employees able through motivation, good leadership andopen communication. As a result, they attain their individual objectives.

(i) Management helps in achieving Group Goals: It is the most important characteristic ofmanagement that it is a goal-oriented activity. A manager achieves these goals by giving theproper direction to the efforts of all individuals,

(ii) Management Increases Efficiency: A manager increases efficiency through theoptimum utilisation of all the resources, such as, Man, Machine, Material and Money.

(iii) Management Creates a Dynamic Organisation: Every organisation works in an everchanging environment. To face the changing environment, many changes need to be madein the organisation as well. But people resist changes. Manager creates a favourableenvironment through introducing employees to the benefits arising by adapting changes.

(iv) Management helps in achieving Personal Objectives: Every employee wants to getsuitable remuneration, a share in profit, participation in management, promotion, etc. in theform of his personal objectives. This objective can only be achieved, if they work while usingtheir full abilities. Managers make employees able through motivation, good leadership andopen communication. As a result, they attain their individual objectives.

(v) Management helps in the Development of Society: Management has someresponsibility towards society. Managers by fulfilling their social responsibilities help in thedevelopment of society. These responsibilities are to provide employment opportunities, toprevent environment from getting polluted, to make available good quality products at areasonable price, etc.

(ii) Management Creates a Dynamic Organisation: Every organisation works in an everchanging environment. To face the changing environment, many changes need to be madein the organisation as well. But people resist changes. Manager creates a favourableenvironment through introducing employees to the benefits arising by adapting changes.

(iii) Management helps in achieving Personal Objectives: Every employee wants to getsuitable remuneration, a share in profit, participation in management, promotion, etc. in theform of his personal objectives. This objective can only be achieved, if they work while usingtheir full abilities. Managers make employees able through motivation, good leadership andopen communication. As a result, they attain their individual objectives.

(iv) Management helps in the Development of Society: Management has someresponsibility towards society. Managers by fulfilling their social responsibilities help in thedevelopment of society. These responsibilities are to provide employment opportunities, toprevent environment from getting polluted, to make available good quality products at areasonable price, etc.

Management: Management is the process of conducting a set of functions (planning,organising, staffing, directing and controlling) to get the work done in an efficient and effective manner.

Management Creates a Dynamic Organisation: Every organisation works in an everchanging environment. To face the changing environment, many changes need to be made in the organisation as well. But people resist changes. Manager creates a favourable environment through introducing employees to the benefits arising by adapting changes.

Management helps in the Development of Society: Management has some responsibility towards society. Managers by fulfilling their social responsibilities help in the development of society. These responsibilities are to provide employment opportunities, to prevent environment from getting polluted, to make available good quality products at areasonable price, etc.

This case is related with the characteristics of management, namely, ‘management is allpervasive’.

Characteristics of Management: Following are the main characteristics of management:

(i) Management is a Goal Oriented Process: No goal in the hand-no need of management.In other words, we need management when we have some goals to be achieved. A manageron the basis of his knowledge and experience tries to achieve the goals which are alreadydecided. Hence, nothing is wrong to say that management is a goal oriented process.

(ii) Management is all Pervasive: Anything minus management is nothing or zero. Here, byanything we mean all types of activities-business and non-business. If we deductmanagement out of these activities, the result will be failure or zero. It means management isnecessary to conduct any type of activities. Hence, it is pervasive or universal.

(iii) Management is a Group Activity: It means that it is not a single person who con-summates all the activities of an organisation but it is always a group of persons (Managers).Hence, management is a group effort.

(iv) Management is an Intangible Force: Management is that power which cannot be seen.It can only be felt. If any organisation is heading toward higher levels of achievement, itsignifies an existence of good management and vice-versa.

(A) Management is Science

(B) Management Science ≠ Natural and Pure Science.Now, we prove (A) and (B)

(A) Management is Science: The following description proves that management is science:
(i) Systematised Body of Knowledge: It is necessary for science to be a systematised bodyof knowledge. Management is also a systematised body of knowledge because it has its owntheory and principles which are developed by the management experts after years ofresearch.

(ii) Principles Based on Experimentation: After applying this characteristic of science tomanagement, we find that development of management took years for the collection offacts, their analysis and experiments. In other words, management came into existencebecause of the continuous and encouraging labour of the theorists and various peopleconcerned.

(B) Management Science ≠ Natural and Pure Science:

 The subject matter of management is 'Human Being' who is an intelligent and sensitive being and whose behaviour or conduct changes according to the changing situations. Therefore, no permanent principles like the principles of physics and chemistry can be enunciated in relation to his conduct or behaviour. Clearly the science of management cannot be called a natural or pure science but it should be described as an Applied Science or InexactScience.

(i) Systematised Body of Knowledge: It is necessary for science to be a systematised bodyof knowledge. Management is also a systematised body of knowledge because it has its owntheory and principles which are developed by the management experts after years ofresearch.

(ii) Principles Based on Experimentation: After applying this characteristic of science tomanagement, we find that development of management took years for the collection offacts, their analysis and experiments. In other words, management came into existencebecause of the continuous and encouraging labour of the theorists and various peopleconcerned.

(iii) Universal Validity: Scientific principles are based on truth and they can be applied atevery time and in every situation. Thus, its universal application is possible. In the field of management too, managerial knowledge and principles of management are considered to be based on truth and they, too, can be applied anywhere and in every situation. But the principles of management are not as exact as the principles of science as their application may not yield the desired results always.

It is important to apply the characteristics of science to management in order to find out whether

management is a science or not. Following are the main points:

(i) Systematised Body of Knowledge: It is necessary for science to be a systematised bodyof knowledge. Management is also a systematised body of knowledge because it has its owntheory and principles which are developed by the management experts after years ofresearch.

(ii) Principles Based on Experimentation: After applying this characteristic of science tomanagement, we find that development of management took years for the collection offacts, their analysis and experiments. In other words, management came into existencebecause of the continuous and encouraging labour of the theorists and various peopleconcerned.

(iii) Universal Validity: Scientific principles are based on truth and they can be applied atevery time and in every situation. Thus, its universal application is possible. In the field of management too, managerial knowledge and principles of management are considered to be based on truth and they, too, can be applied anywhere and in every situation. But the principles of management are not as exact as the principles of science as their application may not yield the desired results always.

(i) Existence of Theoretical Knowledge: Art is always based on certain theoreticalknowledge. On the basis of this knowledge one can understand how a particular work can beaccomplished. In this context management is an art as a lot of literature isavailable in various areas of management.

(ii) Personalised Application: The use of available theoretical knowledge is found in varyingdegree among different persons. For example, two teachers, two players, or two goldsmithswill always differ in performing their jobs. Management possesses this feature of arttoo. There are various principles of management as developed by management experts.Managers apply these principles differently depending on their level of knowledge.Sometimes they may get exactly opposite results while applying the same principles.

(iii) Based on Practice and Creativity: Just as art can be embellished with the help ofpractice, in the same way managerial skill also improves with practice. Every manager has adesire to become a complete expert in his field. They can fulfil his desire by continuouspractice. A fully developed manager not only moulds the organisation according to thechanging circumstances but also has the capacity to change the outer circumstancesaccording to his will. Thus, management possesses this feature of art too.

The above analysis clearly establishes that management possesses all the characteristics ofart and on this very basis it has been accepted as an art.

In order to find out whether management is science or not, it is important to apply thefollowing characteristics of science to management:

(i) Systematised Body of Knowledge: It is necessary for science to be a systematised bodyof knowledge. Management is also a systematised body of knowledge because it has its owntheory and principles which are developed by the management experts after years ofresearch.

(ii) Principles Based on Experimentation: After applying this characteristic of science tomanagement, we find that development of management took years for the collection offacts, their analysis and experiments. In other words, management came into existencebecause of the continuous and encouraging labour of the theorists and various peopleconcerned.

(iii) Universal Validity: Scientific principles are based on truth and they can be applied atevery time and in every situation. Thus, its universal application is possible. In the field of management too, managerial knowledge and principles of management are considered to be based on truth and they, too, can be applied anywhere and in every situation. But the principles of management are not as exact as the principles of science as their application may not yield the desired results always.
The subject matter of management is 'human being' who is an intelligent and sensitive being andwhose behaviour or conduct changes according to the changing situations. Therefore, nopermanent principles like the principles of physics and chemistry can be enunciated in relation tohis conduct or behaviour. That is why, the management is known as a social science and not theperfect science.
(ii) Management as an Art: Management is an art as it contains the following features of art:

(i) Existence of Theoretical Knowledge: Art is always based on certain theoreticalknowledge. On the basis of this knowledge one can understand how a particular work can beaccomplished. In this context management is an art as a lot of literature isavailable in various areas of management.

(ii) Personalised Application: The use of available theoretical knowledge is found in varyingdegree among different persons. For example, two teachers, two players, or two goldsmithswill always differ in performing their jobs. Management possesses this feature of arttoo. There are various principles of management as developed by management experts.Managers apply these principles differently depending on their level of knowledge.Sometimes they may get exactly opposite results while applying the same principles.

(iii) Based on Practice and Creativity: Just as art can be embellished with the help ofpractice, in the same way managerial skill also improves with practice. Every manager has adesire to become a complete expert in his field. They can fulfil his desire by continuouspractice. A fully developed manager not only moulds the organisation according to thechanging circumstances but also has the capacity to change the outer circumstancesaccording to his will. Thus, management possesses this feature of art too.

The above analysis clearly establishes that management possesses all the characteristics of artand on this very basis it has been accepted as an art.

Conclusion: Therefore, we can say that management is both a social science as well as an art.

In order to find out whether management is science or not, it is important to apply thefollowing characteristics of science to management:

(i) Systematised Body of Knowledge: It is necessary for science to be a systematised bodyof knowledge. Management is also a systematised body of knowledge because it has its owntheory and principles which are developed by the management experts after years ofresearch.

(ii) Principles Based on Experimentation: After applying this characteristic of science tomanagement, we find that development of management took years for the collection offacts, their analysis and experiments. In other words, management came into existencebecause of the continuous and encouraging labour of the theorists and various peopleconcerned.

(iii) Universal Validity: Scientific principles are based on truth and they can be applied atevery time and in every situation. Thus, its universal application is possible. In the field of management too, managerial knowledge and principles of management are considered to be based on truth and they, too, can be applied anywhere and in every situation. But the principles of management are not as exact as the principles of science as their application may not yield the desired results always.
The subject matter of management is 'human being' who is an intelligent and sensitive being andwhose behaviour or conduct changes according to the changing situations. Therefore, nopermanent principles like the principles of physics and chemistry can be enunciated in relation tohis conduct or behaviour. That is why, the management is known as a social science and not theperfect science.
(b) Management as an Art: Management is an art as it contains the following features of art:

i) Existence of Theoretical Knowledge: Art is always based on certain theoreticalknowledge. On the basis of this knowledge one can understand how a particular work can beaccomplished. In this context management is an art as a lot of literature isavailable in various areas of management.

(ii) Personalised Application: The use of available theoretical knowledge is found in varyingdegree among different persons. For example, two teachers, two players, or two goldsmithswill always differ in performing their jobs. Management possesses this feature of arttoo. There are various principles of management as developed by management experts.Managers apply these principles differently depending on their level of knowledge.Sometimes they may get exactly opposite results while applying the same principles.

(iii) Based on Practice and Creativity: Just as art can be embellished with the help ofpractice, in the same way managerial skill also improves with practice. Every manager has adesire to become a complete expert in his field. They can fulfil his desire by continuouspractice. A fully developed manager not only moulds the organisation according to thechanging circumstances but also has the capacity to change the outer circumstancesaccording to his will. Thus, management possesses this feature of art too.

The above analysis clearly establishes that management possesses all the characteristics of artand on this very basis it has been accepted as an art.

Conclusion: Therefore, we can say that management is both a social science as well as an art.

(i) Existence of Theoretical Knowledge: Art is always based on certain theoreticalknowledge. On the basis of this knowledge one can understand how a particular work can beaccomplished. In this context management is an art as a lot of literature isavailable in various areas of management.

(ii) Personalised Application: The use of available theoretical knowledge is found in varyingdegree among different persons. For example, two teachers, two players, or two goldsmithswill always differ in performing their jobs. Management possesses this feature of arttoo. There are various principles of management as developed by management experts.Managers apply these principles differently depending on their level of knowledge.Sometimes they may get exactly opposite results while applying the same principles.

(iii) Based on Practice and Creativity: Just as art can be embellished with the help ofpractice, in the same way managerial skill also improves with practice. Every manager has adesire to become a complete expert in his field. They can fulfil his desire by continuouspractice. A fully developed manager not only moulds the organisation according to thechanging circumstances but also has the capacity to change the outer circumstancesaccording to his will. Thus, management possesses this feature of art too.

(i) Existence of Theoretical Knowledge: Art is always based on certain theoreticalknowledge. On the basis of this knowledge one can understand how a particular work can beaccomplished. In this context management is an art as a lot of literature isavailable in various areas of management.

(ii) Personalised Application: The use of available theoretical knowledge is found in varyingdegree among different persons. For example, two teachers, two players, or two goldsmithswill always differ in performing their jobs. Management possesses this feature of arttoo. There are various principles of management as developed by management experts.Managers apply these principles differently depending on their level of knowledge.Sometimes they may get exactly opposite results while applying the same principles.

(iii) Based on Practice and Creativity: Just as art can be embellished with the help ofpractice, in the same way managerial skill also improves with practice. Every manager has adesire to become a complete expert in his field. They can fulfil his desire by continuouspractice. A fully developed manager not only moulds the organisation according to thechanging circumstances but also has the capacity to change the outer circumstancesaccording to his will. Thus, management possesses this feature of art too.

(i) Existence of Theoretical Knowledge: Art is always based on certain theoreticalknowledge. On the basis of this knowledge one can understand how a particular work can beaccomplished. In this context management is an art as a lot of literature isavailable in various areas of management.

(ii) Personalised Application: The use of available theoretical knowledge is found in varyingdegree among different persons. For example, two teachers, two players, or two goldsmithswill always differ in performing their jobs. Management possesses this feature of arttoo. There are various principles of management as developed by management experts.Managers apply these principles differently depending on their level of knowledge.Sometimes they may get exactly opposite results while applying the same principles.

(iii) Based on Practice and Creativity: Just as art can be embellished with the help ofpractice, in the same way managerial skill also improves with practice. Every manager has adesire to become a complete expert in his field. They can fulfil his desire by continuouspractice. A fully developed manager not only moulds the organisation according to thechanging circumstances but also has the capacity to change the outer circumstancesaccording to his will. Thus, management possesses this feature of art too.

The above analysis clearly establishes that management possesses all the characteristics ofart and on this very basis it has been accepted as an art.

Art is the practical application of existing knowledge to achieve desired objectives. It requirestheoretical base, has personalized application and based on practice.

Management is also an art because like art, it has a lot of literature as theoretical base, managersapply theoretical knowledge differently and can embellish their knowledge with practice.Management is an inexact Science:

Science is a systematised body of knowledge, based on experimentation and has universalvalidity.

Management is also a science because like science, it is a systematised body of knowledge, itsprinciples are derived through observation and repeated experimentation which can be appliedeverywhere. But management is related with human beings the results of its principles cannot beaccurately predicted. Hence, it is better to call management an inexact instead of pure science.

(i) Well Defined Body of Knowledge: The foremost quality of a professional is thepossession of specialised knowledge. Management has its own principles based onexperiments and which requires special competence to bring them into use. On the basis ofthis speciality, management can be accepted as a profession.

(ii) Restricted Entry: The entry to a profession is restricted through acquiring an educationaldegree. For example, a degree in Law is essential for joining the Law profession. But as far asthe management is concerned there is no such condition for being a manager. Hence, onthis basis, management cannot be accepted as a profession.

(iii) Professional Association: The third characteristic of profession is that it must have arepresentative professional association which performs the following important functions:(i) To regulate entry, (ii) To grant certificate of practice, and (iii) To create a code of conductfor guiding the activities of the profession.

In India, Representative Professional Associations with regard to other professions havealready been established. There are representative professional associations like the BarCouncil of India for Lawyers; Medical Council of India for Doctors; Institute ofChartered Accountants for Chartered Accountants, etc. For managers, All India

Management Association (A1MA) has been established. But it is not essential to be amember of the AIMA in order to be a manager. Therefore, on this basis, managementcannot be accepted as a profession.

(iv) Ethical Code of Conduct: Members of a profession are bound to follow a code ofconduct. By Code of Conduct, we mean the rules and regulations framed to guide thebehaviour of professionals. The code of conduct of already recognised professions like Law,Medical and Chartered Accountant, etc. have already been prescribed but no suchcode of conduct has been laid down in connection with management. On this basis it can beasserted that management is not at all a profession.

(v) Service Motive: The main motive of a profession is to serve the society. For example, nodoubt a doctor follows his profession for his living but to ensure that his patients get justicehappens to be his chief motive. Though there is no code of conduct regarding managementbut its social responsibilities are being stressed upon increasingly. From this point of view,there should not be any hesitation to accept management as a profession.

Conclusion: On the basis of the above analysis, it becomes clear that management does fulfilsome of the conditions (or does possess some of the characteristics) of profession but it still lackssome other characteristics of a profession. In this way, management as a profession is still in itsinfancy in India and its development is gradual.

(i) Well Defined Body of Knowledge: The foremost quality of a professional is thepossession of specialised knowledge. Management has its own principles based onexperiments and which requires special competence to bring them into use. On the basis ofthis speciality, management can be accepted as a profession.

(ii) Restricted Entry: The entry to a profession is restricted through acquiring an educationaldegree. For example, a degree in Law is essential for joining the Law profession. But as far asthe management is concerned there is no such condition for being a manager. Hence, onthis basis, management cannot be accepted as a profession.

(iii) Professional Association: The third characteristic of profession is that it must have arepresentative professional association which performs the following important functions:(i) To regulate entry, (ii) To grant certificate of practice, and (iii) To create a code of conductfor guiding the activities of the profession.

In India, Representative Professional Associations with regard to other professions havealready been established. There are representative professional associations like the BarCouncil of India for Lawyers; Medical Council of India for Doctors; Institute ofChartered Accountants for Chartered Accountants, etc. For managers, All India

Management Association (A1MA) has been established. But it is not essential to be amember of the AIMA in order to be a manager. Therefore, on this basis, managementcannot be accepted as a profession.

(iv) Ethical Code of Conduct: Members of a profession are bound to follow a code ofconduct. By Code of Conduct, we mean the rules and regulations framed to guide thebehaviour of professionals. The code of conduct of already recognised professions like Law,Medical and Chartered Accountant, etc. have already been prescribed but no suchcode of conduct has been laid down in connection with management. On this basis it can beasserted that management is not at all a profession.

(v) Service Motive: The main motive of a profession is to serve the society. For example, nodoubt a doctor follows his profession for his living but to ensure that his patients get justicehappens to be his chief motive. Though there is no code of conduct regarding managementbut its social responsibilities are being stressed upon increasingly. From this point of view,there should not be any hesitation to accept management as a profession.

Conclusion: On the basis of the above analysis, it becomes clear that management does fulfilsome of the conditions (or does possess some of the characteristics) of profession but it still lackssome other characteristics of a profession. In this way, management as a profession is still in itsinfancy in India and its development is gradual.

(i) Well Defined Body of Knowledge: The foremost quality of a professional is thepossession of specialised knowledge. Management has its own principles based onexperiments and which requires special competence to bring them into use. On the basis ofthis speciality, management can be accepted as a profession.

(ii) Restricted Entry: The entry to a profession is restricted through acquiring an educationaldegree. For example, a degree in Law is essential for joining the Law profession. But as far asthe management is concerned there is no such condition for being a manager. Hence, onthis basis, management cannot be accepted as a profession.

(iii) Professional Association: The third characteristic of profession is that it must have arepresentative professional association which performs the following important functions:(i) To regulate entry, (ii) To grant certificate of practice, and (iii) To create a code of conductfor guiding the activities of the profession.

In India, Representative Professional Associations with regard to other professions havealready been established. There are representative professional associations like the BarCouncil of India for Lawyers; Medical Council of India for Doctors; Institute ofChartered Accountants for Chartered Accountants, etc. For managers, All India

Management Association (A1MA) has been established. But it is not essential to be amember of the AIMA in order to be a manager. Therefore, on this basis, managementcannot be accepted as a profession.

(iv) Ethical Code of Conduct: Members of a profession are bound to follow a code ofconduct. By Code of Conduct, we mean the rules and regulations framed to guide thebehaviour of professionals. The code of conduct of already recognised professions like Law,Medical and Chartered Accountant, etc. have already been prescribed but no suchcode of conduct has been laid down in connection with management. On this basis it can beasserted that management is not at all a profession.

(v) Service Motive: The main motive of a profession is to serve the society. For example, nodoubt a doctor follows his profession for his living but to ensure that his patients get justicehappens to be his chief motive. Though there is no code of conduct regarding managementbut its social responsibilities are being stressed upon increasingly. From this point of view,there should not be any hesitation to accept management as a profession.

Conclusion: On the basis of the above analysis, it becomes clear that management does fulfilsome of the conditions (or does possess some of the characteristics) of profession but it still lackssome other characteristics of a profession. In this way, management as a profession is still in itsinfancy in India and its development is gradual.

(i) Well Defined Body of Knowledge: The foremost quality of a professional is thepossession of specialised knowledge. Management has its own principles based onexperiments and which requires special competence to bring them into use. On the basis ofthis speciality, management can be accepted as a profession.

(ii) Restricted Entry: The entry to a profession is restricted through acquiring an educationaldegree. For example, a degree in Law is essential for joining the Law profession. But as far asthe management is concerned there is no such condition for being a manager. Hence, onthis basis, management cannot be accepted as a profession.

(iii) Professional Association: The third characteristic of profession is that it must have arepresentative professional association which performs the following important functions:(i) To regulate entry, (ii) To grant certificate of practice, and (iii) To create a code of conductfor guiding the activities of the profession.

In India, Representative Professional Associations with regard to other professions havealready been established. There are representative professional associations like the BarCouncil of India for Lawyers; Medical Council of India for Doctors; Institute ofChartered Accountants for Chartered Accountants, etc. For managers, All India

Management Association (A1MA) has been established. But it is not essential to be amember of the AIMA in order to be a manager. Therefore, on this basis, managementcannot be accepted as a profession.

(iv) Ethical Code of Conduct: Members of a profession are bound to follow a code ofconduct. By Code of Conduct, we mean the rules and regulations framed to guide thebehaviour of professionals. The code of conduct of already recognised professions like Law,Medical and Chartered Accountant, etc. have already been prescribed but no suchcode of conduct has been laid down in connection with management. On this basis it can beasserted that management is not at all a profession.

(v) Service Motive: The main motive of a profession is to serve the society. For example, nodoubt a doctor follows his profession for his living but to ensure that his patients get justicehappens to be his chief motive. Though there is no code of conduct regarding managementbut its social responsibilities are being stressed upon increasingly. From this point of view,there should not be any hesitation to accept management as a profession.

Management as a profession has following characteristics:

1. Well Defined Body of Knowledge: All professions are based on a well-defined body of knowledge that can be acquired through instruction.
2. Restricted Entry: The entry to a profession is restricted through an examination or through acquiring an educational degree. For example, to become a chartered accountant in India a candidate has to clear a specified examination conducted by the Institute of Chartered Accountants of India.
3. Professional Association: All professions are affiliated to a professional association which regulates entry, grants certificate of practice and formulates and enforces a code of conduct. To be able to practice in India lawyers have to become members of the Bar Council which regulates and controls their activities.
4. Ethical Code of Conduct: All professions are bound by a code of conduct which guides the behaviour of its members. All doctors, for example, take the oath of ethical practice at the time they enter the profession.   
5. Service Motive: The basic motive of a profession is to serve their client’s interests by rendering dedicated and committed service. The task of a lawyer is to ensure that his client gets justice.

i) Well Defined Body of Knowledge: The foremost quality of a professional is thepossession of specialised knowledge. Management has its own principles based onexperiments and which requires special competence to bring them into use. On the basis ofthis speciality, management can be accepted as a profession.

(ii) Restricted Entry: The entry to a profession is restricted through acquiring an educationaldegree. For example, a degree in Law is essential for joining the Law profession. But as far asthe management is concerned there is no such condition for being a manager. Hence, onthis basis, management cannot be accepted as a profession.

(iii) Professional Association: The third characteristic of profession is that it must have arepresentative professional association which performs the following important functions:(i) To regulate entry, (ii) To grant certificate of practice, and (iii) To create a code of conductfor guiding the activities of the profession.

In India, Representative Professional Associations with regard to other professions havealready been established. There are representative professional associations like the BarCouncil of India for Lawyers; Medical Council of India for Doctors; Institute ofChartered Accountants for Chartered Accountants, etc. For managers, All India

Management Association (A1MA) has been established. But it is not essential to be amember of the AIMA in order to be a manager. Therefore, on this basis, managementcannot be accepted as a profession.

(iv) Ethical Code of Conduct: Members of a profession are bound to follow a code ofconduct. By Code of Conduct, we mean the rules and regulations framed to guide thebehaviour of professionals. The code of conduct of already recognised professions like Law,Medical and Chartered Accountant, etc. have already been prescribed but no suchcode of conduct has been laid down in connection with management. On this basis it can beasserted that management is not at all a profession.

(v) Service Motive: The main motive of a profession is to serve the society. For example, nodoubt a doctor follows his profession for his living but to ensure that his patients get justicehappens to be his chief motive. Though there is no code of conduct regarding managementbut its social responsibilities are being stressed upon increasingly. From this point of view,there should not be any hesitation to accept management as a profession.

Conclusion: On the basis of the above analysis, it becomes clear that management does fulfilsome of the conditions (or does possess some of the characteristics) of profession but it still lackssome other characteristics of a profession. In this way, management as a profession is still in itsinfancy in India and its development is gradual.

(i) Well Defined Body of Knowledge: The foremost quality of a professional is thepossession of specialised knowledge. Management has its own principles based onexperiments and which requires special competence to bring them into use. On the basis ofthis speciality, management can be accepted as a profession.

(ii) Restricted Entry: The entry to a profession is restricted through acquiring an educationaldegree. For example, a degree in Law is essential for joining the Law profession. But as far asthe management is concerned there is no such condition for being a manager. Hence, onthis basis, management cannot be accepted as a profession.

(iii) Professional Association: The third characteristic of profession is that it must have arepresentative professional association which performs the following important functions:(i) To regulate entry, (ii) To grant certificate of practice, and (iii) To create a code of conductfor guiding the activities of the profession.

In India, Representative Professional Associations with regard to other professions havealready been established. There are representative professional associations like the BarCouncil of India for Lawyers; Medical Council of India for Doctors; Institute ofChartered Accountants for Chartered Accountants, etc. For managers, All India

Management Association (A1MA) has been established. But it is not essential to be amember of the AIMA in order to be a manager. Therefore, on this basis, managementcannot be accepted as a profession.

(iv) Ethical Code of Conduct: Members of a profession are bound to follow a code ofconduct. By Code of Conduct, we mean the rules and regulations framed to guide thebehaviour of professionals. The code of conduct of already recognised professions like Law,Medical and Chartered Accountant, etc. have already been prescribed but no suchcode of conduct has been laid down in connection with management. On this basis it can beasserted that management is not at all a profession.

(v) Service Motive: The main motive of a profession is to serve the society. For example, nodoubt a doctor follows his profession for his living but to ensure that his patients get justicehappens to be his chief motive. Though there is no code of conduct regarding managementbut its social responsibilities are being stressed upon increasingly. From this point of view,there should not be any hesitation to accept management as a profession.

Conclusion: On the basis of the above analysis, it becomes clear that management does fulfilsome of the conditions (or does possess some of the characteristics) of profession but it still lackssome other characteristics of a profession. In this way, management as a profession is still in itsinfancy in India and its development is gradual.

(i) Restricted Entry: The entry to a profession is restricted through acquiring an educationaldegree. For example, a degree in Law is essential for joining the Law profession. But as far as themanagement is concerned there is no such condition for being a manager. Hence, on this basismanagement cannot be accepted as a profession.

(ii) Professional Association: The profession must have a representative professionalassociation which performs the following important functions:

(a) To regulate entry, (b) To grant certificate of practice, and (c) To create a code of conduct forguiding the activities of the profession.

In India, Representative Professional Associations with regard to other professions have alreadybeen established. There are representative professional associations like the Bar Council of Indiafor Lawyers; Medical Council of India for Doctors; Institute of Chartered Accountants forChartered Accountants, etc. For managers. All India Management Association (A1MA) has beenestablished. But it is not essential to be a member of the AIMA in order to be a manager.Therefore, on this basis management cannot be accepted as a profession.

(iii) Ethical Code of Conduct: Members of a profession are bound to follow a code ofconduct. By Code of Conduct, we mean the rules and regulations framed to guide the behaviourof professionals. The code of conduct of already recognised professions like Law, Medical andChartered Accountant, etc. have already been prescribed but no such code of conduct has beenlaid down in connection with management. On this basis it can be asserted that management isnot at all a profession.

(i) Well Defined Body of Knowledge: The foremost quality of a professional is thepossession of specialised knowledge. Management has its own principles based onexperiments and which requires special competence to bring them into use. On the basis ofthis speciality, management can be accepted as a profession.

(ii) Restricted Entry: The entry to a profession is restricted through acquiring an educationaldegree. For example, a degree in Law is essential for joining the Law profession. But as far asthe management is concerned there is no such condition for being a manager. Hence, onthis basis, management cannot be accepted as a profession.

(iii) Professional Association: The third characteristic of profession is that it must have arepresentative professional association which performs the following important functions:(i) To regulate entry, (ii) To grant certificate of practice, and (iii) To create a code of conductfor guiding the activities of the profession.

In India, Representative Professional Associations with regard to other professions havealready been established. There are representative professional associations like the BarCouncil of India for Lawyers; Medical Council of India for Doctors; Institute ofChartered Accountants for Chartered Accountants, etc. For managers, All India

Management Association (A1MA) has been established. But it is not essential to be amember of the AIMA in order to be a manager. Therefore, on this basis, managementcannot be accepted as a profession.

(iv) Ethical Code of Conduct: Members of a profession are bound to follow a code ofconduct. By Code of Conduct, we mean the rules and regulations framed to guide thebehaviour of professionals. The code of conduct of already recognised professions like Law,Medical and Chartered Accountant, etc. have already been prescribed but no suchcode of conduct has been laid down in connection with management. On this basis it can beasserted that management is not at all a profession.

(v) Service Motive: The main motive of a profession is to serve the society. For example, nodoubt a doctor follows his profession for his living but to ensure that his patients get justicehappens to be his chief motive. Though there is no code of conduct regarding managementbut its social responsibilities are being stressed upon increasingly. From this point of view,there should not be any hesitation to accept management as a profession.

Conclusion: On the basis of the above analysis, it becomes clear that management does fulfilsome of the conditions (or does possess some of the characteristics) of profession but it still lackssome other characteristics of a profession. In this way, management as a profession is still in itsinfancy in India and its development is gradual.

(ii) Ethical Code of conduct.

(i) Determining Objectives: Top level management sets objectives for the organisation. Forexample, an objective can be set that in the following year the sales of the company has tocross ? 1,000 crore.

(ii) Determining Policies: Only at this level policies related to the realisation of objectives are
formed. For example, it can be a sales policy of a company to just make cash sales.

(iii) Determining Activities: Different activities to be performed for the fulfilment of anobjective are fixed, such as sales, purchase, advertisement, production, research, etc.
(iv) Assembling Resources: Needed resources are assembled (arranged) for the realisation ofan objective, like capital, raw-material, fixed assets, etc.

(v) Controlling the Work Performance: The work in progress is closely monitored in acompany to get desired results.

(vi) Approving Budgets: Budgets prepared by different managers are given final shape, i.e.,approval is given to the budgets.

(i) Interpreting Policies: At this level, policies framed by top level managers are interpreted.Like the marketing manager introduces his salesman to the sales policy of the company thatat no cost credit sales will be made.

(ii) Preparing Organisational Set-up: Every middle level manager prepares outline of hisrespective department in accordance with the objectives of the organisation.

(iii) Appointing Employees: Every departmental manager appoints employees to fulfil theactivities of his department.

(iv) Issuing Instructions: Departmental managers direct their subordinates about what to doand how they have to do. Needful resources are made available to subordinates so that theycan do the assigned jobs intermittently.

(v) Motivating Employees: Middle level managers motivate their employees by variousmeans so that they work most efficiently to achieve organisational objectives.

(vi) Creating Cooperation: Cooperation among different divisions is required to successfullyachieve company's objectives and this is done by middle level managers.

(i) Submitting Workers' Grievances: Lower level managers are in direct contact with theworkmen employees. They themselves sort out the ordinary problems of workmen andsubmit serious workers' grievances to middle level managers.

(ii) Ensuring Proper Working Environment: Lower level managers ensure that properarrangement of water, electricity, ventilation, cleanliness, etc. is made at the workplace. Thisincreases efficiency.

(iii) Ensuring Safety of Workers: Probability to accidents can be annuled by building fencesaround machines.

(iv) Helping Middle Level Management: They help middle level managers in recruiting,training and promoting employees.

(v) Inviting Suggestions: They invite suggestions from their subordinates, as to how thequality of work can be improved.

(vi) Creating better Human Relations: They create better human relations so thataltercations can be avoided at the workplace.

(i) Determining Objectives: Top level management sets objectives for the organisation. Forexample, an objective can be set that in the following year the sales of the company has tocross ? 1,000 crore.

(ii) Determining Policies: Only at this level policies related to the realisation of objectives are
formed. For example, it can be a sales policy of a company to just make cash sales.

Following are the main functions of Middle Level Managers:

(i) Interpreting Policies: At this level, policies framed by top level managers are interpreted.Like the marketing manager introduces his salesman to the sales policy of the company thatat no cost credit sales will be made.

(ii) Preparing Organisational Set-up: Every middle level manager prepares outline of hisrespective department in accordance with the objectives of the organisation.

Following are the various functions of Lower Level Managers:

(i) Submitting Workers' Grievances: Lower level managers are in direct contact with theworkmen employees. They themselves sort out the ordinary problems of workmen andsubmit serious workers' grievances to middle level managers.

(ii) Ensuring Proper Working Environment: Lower level managers ensure that properarrangement of water, electricity, ventilation, cleanliness, etc. is made at the workplace. Thisincreases efficiency.

(i) Interpreting Policies: At this level, policies framed by top level managers are interpreted.Like the marketing manager introduces his salesman to the sales policy of the company thatat no cost credit sales will be made.

(ii) Preparing Organisational Set-up: Every middle level manager prepares outline of hisrespective department in accordance with the objectives of the organisation.

(iii) Appointing Employees: Every departmental manager appoints employees to fulfil theactivities of his department.

(iv) Issuing Instructions: Departmental managers direct their subordinates about what to doand how they have to do. Needful resources are made available to subordinates so that theycan do the assigned jobs intermittently.

(i) Top Level Management

(ii) Middle Level Management

(iii) Lower Level Management

Functions of Middle Level Management:

(i) Interpreting Policies: At this level, policies framed by top level managers are interpreted.Like the marketing manager introduces his salesman to the sales policy of the company thatat no cost credit sales will be made.

(ii) Preparing Organisational Set-up: Every middle level manager prepares outline of hisrespective department in accordance with the objectives of the organisation.

(iii) Appointing Employees: Every departmental manager appoints employees to fulfil theactivities of his department.

(ii) Determining Policies: Only at this level policies related to the realisation of objectives are
formed. For example, it can be a sales policy of a company to just make cash sales.

(i) Top Level Management

(ii) Middle Level Management

(iii) Lower Level Management

Functions of Top Level Management:

(i) Determining Objectives: Top level management sets objectives for the organisation. Forexample, an objective can be set that in the following year the sales of the company has tocross ? 1,000 crore.

(ii) Determining Policies: Only at this level policies related to the realisation of objectives are
formed. For example, it can be a sales policy of a company to just make cash sales.

(iii) Determining Activities: Different activities to be performed for the fulfilment of anobjective are fixed, such as sales, purchase, advertisement, production, research, etc.

(i) Interpreting Policies: At this level, policies framed by top level managers are interpreted.Like the marketing manager introduces his salesman to the sales policy of the company thatat no cost credit sales will be made.

(ii) Preparing Organisational Set-up: Every middle level manager prepares outline of hisrespective department in accordance with the objectives of the organisation.

(iii) Appointing Employees: Every departmental manager appoints employees to fulfil theactivities of his department.

(ii) Determining Policies: Only at this level policies related to the realisation of objectives are
formed. For example, it can be a sales policy of a company to just make cash sales.

(iii) Determining Activities: Different activities to be performed for the fulfilment of anobjective are fixed, such as sales, purchase, advertisement, production, research, etc.

(ii) Preparing Organisational Set-up: Every middle level manager prepares outline of hisrespective department in accordance with the objectives of the organisation.

(iii) Appointing Employees: Every departmental manager appoints employees to fulfil theactivities of his department.

(i) Submitting Workers' Grievances: Lower level managers are in direct contact with theworkmen employees. They themselves sort out the ordinary problems of workmen andsubmit serious workers' grievances to middle level managers.

(ii) Ensuring Proper Working Environment: Lower level managers ensure that properarrangement of water, electricity, ventilation, cleanliness, etc. is made at the workplace. Thisincreases efficiency.

(iii) Ensuring Safety of Workers: Probability to accidents can be annuled by building fencesaround machines.

(i) Interpreting Policies: At this level, policies framed by top level managers are interpreted.Like the marketing manager introduces his salesman to the sales policy of the company thatat no cost credit sales will be made.

(ii) Preparing Organisational Set-up: Every middle level manager prepares outline of hisrespective department in accordance with the objectives of the organisation.

(iii) Appointing Employees: Every departmental manager appoints employees to fulfil theactivities of his department.

(i) Determining Objectives: Top level management sets objectives for the organisation. Forexample, an objective can be set that in the following year the sales of the company has tocross ? 1,000 crore.

(ii) Determining Policies: Only at this level policies related to the realisation of objectives are
formed. For example, it can be a sales policy of a company to just make cash sales.

(iii) Determining Activities: Different activities to be performed for the fulfilment of anobjective are fixed, such as sales, purchase, advertisement, production, research, etc.

(i) Submitting workers' grievances (ii) Ensuring proper working environment,

(b) Top Level Management

(i) Determining objectives (ii) Determining policies

(i) Determining Objectives: Top level management sets objectives for the organisation. Forexample, an objective can be set that in the following year the sales of the company has tocross ? 1,000 crore.

(ii) Determining Policies: Only at this level policies related to the realisation of objectives are
formed. For example, it can be a sales policy of a company to just make cash sales.

(i) Interpreting Policies: At this level, policies framed by top level managers are interpreted.Like the marketing manager introduces his salesman to the sales policy of the company thatat no cost credit sales will be made.

(ii) Preparing Organisational Set-up: Every middle level manager prepares outline of hisrespective department in accordance with the objectives of the organisation.