Concept of Management

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

Management is the art of knowing what you want to do and then seeing that they do it in the best and the cheapest way.

Efficiency and Effectiveness?

There is lot of difference between these two terms.

Efficiency refers to the relationship between inputs and outputs. If we produce more from the given inputs, our efficiency is increased. Or if we produce the same from less inputs, again our efficiency is increased. And it is only possible when a manager avoids the wastage of scarce resources.

Whereas effectiveness refers to the successful consummation of activities so that organisational goals are achieved. When a manager attains goals, we say he/she is effective. It means effectiveness is adjudged merely on the basis of the attainment of goals irrespective of the fact how much cost is incurred in their fulfilment.

Efficiency and effectiveness are also related terms. If we ignore efficiency, we can be more effective.

Management as a Group Effort

Management is not a single person who consummates the whole process of management but it is a group effort. It is necessary here to clearly understand that the recognition of management in the form of group is only in reference to big organisations, because in these kinds of organisations many managers are appointed at various managerial levels. On the other hand in small organisations only one manager is suffice as he can himself manage all the affairs of the organisation. For these kinds of organisations it would not be right to call management a group.