When we go to restaurants, why is it that we want to speak to the managers when we’re not happy with our food? A restaurant—like every other business—relies on managerial structures and levels to make sense of the roles and responsibilities of every individual member. Management is a complicated subject and it’s often viewed as a discipline or a process to enhance organizational success.

Wondering how to wrap your head around such a multifaceted concept? Read on to learn more about the nature and scope of management and see how this simple concept dominates professional environments.


  1. What Is Management?

  2. What Is The Nature And Scope Of Management?

  3. Tips For Effective Management

What Is Management?

The word management refers to all the tasks and activities undertaken by the people in an organization for the successful achievement of goals and targets. It involves continuous activities such as planning, organizing, leading and monitoring physical, financial and information resources. Any organization’s success depends on the strength of those in management positions.

The term management is flexible and has been used in various ways. While it refers to organizational activities, it also denotes a body of knowledge or discipline. Some describe it as a means of leadership while others view it as an economic resource. To understand the meaning and nature of management, let’s look at the concept from a broader perspective. Here are various categories that describe management in multiple contexts.

  1. Management As A Process

As a process, management aims at increasing productivity and efficiency in an organization. The purpose is to strengthen the client base, improve the knowledge, skills and capacity of employees to achieve particular targets and goals. Management is also a never-ending process that brings different teams and individuals together. Everyone works in harmony to achieve common objectives.

  1. Management As An Activity

As an activity, management looks at the daily tasks and accomplishments of an employee. It helps them prioritize activities and monitor progress, which further helps them grow in their roles. It prevents miscommunication and task repetition as everyone is aware of their roles and responsibilities. There is clarity and accountability—the cornerstones of business growth and success.

  1. Management As A Profession

Management as a profession has been popularized by courses and academic institutions across the globe. Several organizations prefer individuals with a Master of Business Administration (MBA) degree. Specialized knowledge (such as an MBA degree) provides an individual with a competitive edge, making them more desirable for managerial roles. Therefore, management has evolved as a body of knowledge that continues to solve various workplace problems.

What Is The Nature And Scope Of Management?

As we’ve already established, different people view management differently. Therefore, defining the nature and scope of management becomes quite challenging. Let’s look at each of these terms independently and see how they play out in the context of management.

  • Nature Of Management

Management—as a systematic process—helps identify a group of people who carry out particular activities, thereby improving an organization’s efficiency and effectiveness. Here are the salient features that highlight the nature of management in businesses.

  1. Universality

Management is a universal process and is essential for all organizations. If there is human activity, there is management. The principles of management are applicable irrespective of the size and location of a business. The universal principle also means that managerial skills can be developed over time and they’re transferrable.

  1. Social Process

The nature of management involves organizing people in groups and managing them. It requires different levels of empathy, understanding and dynamism. In addition to taking care of social and emotional well-being, the process involves developing, motivating and retaining employees.

  1. Purposeful

Management always has an end goal of achieving an organization’s targets, mission and vision. The success of management can be measured by the extent to which an organization achieves its objectives. There is an underlying purpose of increasing efficiency and productivity. The objectives should be realistic, attainable and time-bound.

  1. Intangible

There is no physical proof of the management process. Its success can be measured by the outcomes of its efforts. For example, lower turnover rates indicate there’s high employee engagement and job satisfaction. This further shows that managers or individuals in managerial roles have taken proactive steps toward improving employee retention.

  1. Coordination

Management coordinates all the functions of an organization by bringing together different teams and departments. Without coordination, there would be ambiguity and chaos. Therefore, by getting people on the same page, there is communication and minimized duplication of efforts.

  1. Creativity

Management is made up of individual components and is a composite process. Every independent component contributes in unique ways. For example, group efforts encourage creative ideas and imagination. The sum of individual efforts creates synergy and something new is born.

  1. Dynamic Function

Management should be dynamic at its core because businesses are often influenced by economic, social, political and technological factors. With room for flexibility and adaptability, individuals can perform well even in stressful situations. There should be adequate training and facilitation within the process.


  • Scope Of Management

Clearly defined responsibilities, concepts, theories and principles related to managerial functions define the scope of management. Let’s look at the various aspects of this.

  1. Financial Management

Every enterprise prioritizes financial management because finances can get extremely tricky if not managed properly. Effective financial management ensures there are fair returns to stakeholders, proper estimation of capital requirements and laying down optimal capital. It includes preparation and examination of financial statements, creating proper dividend policies and negotiations with external stakeholders.

  1. Marketing Management

The scope of management in marketing extends to planning, organizing, directing and controlling activities in the marketing department. Identifying customer requirements is crucial for providing business solutions. When a manager is fully aware of the benefits of the products and/or services the organization provides, they achieve better results. Marketing management ensures that available resources are properly utilized and the best possible outcomes are achieved.

  1. Personnel Management

Personnel management—as the name suggests—deals with personnel or individuals in a business environment. It includes the recruitment, transfer, termination, welfare and social security of employees. This aspect of management is extremely important as employees form teams and teams drive an organization’s goals. Individual productivity also contributes to overall efficiency. Without attending to employee needs and wants, an organization is likely to struggle.

  1. Production Management

This type of management refers to the process of creating utilities. When you convert raw materials to finished products and oversee the planning and regulation, you’re engaging in production management. Without production, there isn’t any finished good or service and without it, organizations can’t generate interest or profits. The final product must fulfill customer requirements. The process includes quality control, research and development, plan layout and simplification.

  1. Office Management

This includes controlling and coordinating all office activities to achieve an organization’s goals and targets. For example, an administration’s efficiency impacts a business significantly. The more organized the departments and responsibilities are, the more effective an organization is.

Tips For Effective Management

Now that you’re aware of the nature of business management, let’s look at the different ways in which you can enhance your managerial skills.

  • Communication is the key to successful management; if you want to successfully achieve an organization’s targets, you must communicate the overall needs and expectations with your team

  • Management is a continuous process; there will be times when you need to assess your team’s skills and train them to foster growth and professional development

  • Everyone should be on the same page when it comes to accomplishing common objectives; you need to delegate responsibilities and trust your team to do the job—hold them accountable and guide them wherever necessary

  • The primary objective of management is to achieve goals; you need to be goal-oriented, have measures in place to track progress and get involved in strategic planning and development

  • Management isn’t easy and there will be plenty of roadblocks and setbacks that may obstruct your progress; a positive mindset helps deal with challenges more effectively

Harappa’s Managing Teamwork course will help you meet your goals by harnessing various skills of team members. You’ll collaborate with multiple team members through open dialogue and discussion. The GRIN (Goals, Roles, Interdependence, and Norms) Framework will guide you in understanding the four characteristics of effective teams. You’ll learn to navigate your team’s needs and expectations through the Skill-Will Matrix. Leadership is a core management function; set the direction and help your team excel in every sphere of work!

Explore Harappa Diaries to learn more about topics related to the COLLABORATE habit such as What is TeamworkDelegation of Authority, The Difference Between Leadership and Management, Importance of Strategic Management & Functions of Management to improve your managerial skills.

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