Concept, objectives and importance of management

The essentials

Management is the process of getting things done with the aim of achieving goals effectively and efficiently. Effectiveness is about completing the right task and achieving the target on time. Efficiency is about doing the task with the minimum use of resources such as money, time and materials. A good manager aims for both: a firm that meets its production target but wastes raw material is effective but not efficient.

Key points

• Features of management: goal-oriented process, pervasive (needed in all types of organisations and all countries), multidimensional (management of work, people and operations), continuous, group activity, dynamic function (adapts to the environment) and intangible force (its presence is felt in results, not seen).
• Organisational objectives: survival, profit and growth.
• Social objectives: creating benefits for society, such as using environment-friendly methods, providing employment to disadvantaged sections and offering good-quality products at fair prices.
• Personal objectives: meeting the financial needs (salary) and the social and higher-level needs (recognition, growth) of employees.
• Importance: helps achieve group goals, increases efficiency, creates a dynamic organisation, helps achieve personal objectives and contributes to the development of society.

Exam tips

• Case questions often describe one feature, such as a firm adjusting to new rules, which shows management as a dynamic function.
• Remember the three organisational objectives in the order survival, profit, growth.

Common mistakes

• Mixing up effectiveness and efficiency. Effectiveness relates to the end result; efficiency relates to the cost of getting there.
• Thinking management is needed only in business firms. It is pervasive and applies to schools, hospitals, clubs and government offices too.