“Business without efficient management is a house built on sand, which can fall at any time”. Explain this statement.

 Q. “Business without efficient management is a house built on sand, which can fall at any time”. Explain this statement. 

[Write meaning, characteristics and importance  of management]

Ans. This statement means that Just as a house built on sand lacks a strong foundation and collapses easily, a business without effective management lacks direction, coordination, and control, making it highly vulnerable. The following facts clarifies the statement. 

(1) Achieving Pre-determined Objectives: Each organisation is established with certain aim. Management is the only medium and power which can help in the successful attainment of these objectives. A manager with the help of his expertise and cleverness makes an assessment of future events. He makes plans, creates an organisation, distributes work, grants requisite authority, direct the employees and control them. 

(2) Ensuring Maximum Utilization of Resources of Production: Management is that power which by establishing an effective coordination between the various resources of production makes an optimum use of these resources. In every big enterprise a train-load of gold is provided. It can be achieved by making a better use of resources and putting an end to useless or meaningless expenses. It means that all the available resources of the organisation have been likened with gold but to profit from the available resources requires their proper utilization. It is, therefore, clear that the most efficient use of the limited resources is the key to the successful business. This fact can be converted into reality with the help of management.

(3) Overcoming Competition: These days business is not localised but it has assumed national or even intemational dimensions. Competition is increasing with the widening of area and larger dimension of business. A modern producer faces competition not only from a local producer or competition at the national level but international competition is also getting sharper. In such a competitive atmosphere only that organisation can survive which can make available to its customers the best quality of goods at the cheapest rates. Only an efficient and clever manager can make it a reality and save the reputation of an organisation.

(4) Ensuring Integration with Changing Environment: Management is not only limited to various internal functions of an organisation but it has to compromise with the outer atmosphere also. On the one hand technical experts are devising new ways of production and, while on the other hand progressive organisations are applying modern marketing techniques. Even customers do not easily accept the produced goods because they are now wide awake and their standard of living has also improved and their tastes have also undergone a change. Thus, only an efficient manager can coordinate his work with the fast changing atmosphere. With the help of efficient and effective management a coordination between the new and prevalent work system and methods can be established to save the reputation of an organisation.

(5) Ensuring Smooth Running of Large Scale Business: Keeping in view the profits of large scale production, Importance of management has started getting preference. In view of the large scale production the means of production (Men, Money, Material, Machine, etc.) will also be required on a large scale. Apart from this, business shall have to face various legal formalities. To perform these functions efficiently and in a controlled manner, the need of an efficient manager is paramount. Therefore, without an efficient manager smooth running of large scale business is not possible.

(6) Maintaining a Sound Organisational Structure: A sound organisational structure is needed for the success of any enterprise. A sound organisational structure means defining a clear relationship between the superiors and their subordinates. It has to be decided what work will be done by various persons and what rights and duties they enjoy. It will lead to the creation of a team spirit and keep the work atmosphere clean and healthy. All the superiors and subordinates will work without any tension. A sound organisational structure can be created by an efficient manager.

(7) Establishing Good Labour-Owner Relationship: Labour and capital are the two main resources of production. The owners invest capital and determine objectives while the labour tries to transform those objectives into reality. Therefore, existence of a sweet relationship between the two is of paramount importance. There was a time when there were no labour unions and the owners thought it fit to exploit the labour to the maximum possible extent. Now the labour unions exist and they are sufficiently organised to exert pressure on the owners to get their demands conceded. Industrialists too have realised their importance. It is clear to them that without the efficiency of labour more profits cannot be expected. The efficiency of labour can be increased only when their problems are effectively solved. This can be possible only through management. An efficient manager, with the help of his knowledge and experience, understands the feelings of labour and tries to remove their grievances. He makes arrangements for their training to increase their efficiency. He offers them an opportunity to be partners in the process of management. He also establishes a system of sharing the profits, establishing their individual identity and making timely efforts to solve their problems.

(8) Giving importance to Research and Investigation: A recent research has brought out the fact that only those companies or business enterprises which are constantly taking interest in research activities are developing fast. In the context of business, research and investigation mean finding out new products and new markets for the extension of business field, new methods of distribution and adopting the use of new techniques to solve financial problems and using new techniques in the field of communication, It is thus abundantly clear that research is needed to develop business at a rapid pace and this job can be accomplished by an efficient manager. Efficient managers invariably establish research and investigation department to achieve this important purpose.

(9) Fulfilling the Social Responsibility: A business establishment starts its activities in society. prospers and reaches the climax of development in the same social surroundings. Thus, no organisation can remain aloof from society and yet survive. That is why every enterprise is considered as an integral part of society. When an enterprise is so much indebted to society, it should also realise its responsibilities towards society. The social responsibilities of a business organisation include ensuring the safety of the capital and sufficient profit, proper remuneration and work conditions for the employees, making available to the consumers goods of good quality at the right time and proper prices, making available the opportunities of employment to the people and making efforts to raise their standard of living. An enterprise can ensure these expectations only through the medium of management. Thus, management has a special significance in the task of fulfiling the social responsibilities of business

(10) Aiming at Increased Profits: In order to increase the profits of any organisation it is the basic principle either to increase the sales revenue or reduce costs. Increasing the sales revenue is beyond the control of an organisation to some extent but to affect a reduction in costs is primarily an internal affair of the organisation and it can certainly be accomplished with the help of good quality raw material, modem machinery and trained employees. By reducing costs the profits of an organisation can be achieved by the management and future development can be expected.

In conclusion, it can be said that management is the life-breath of business and it will not be wrong to say, business without efficient management is a house built on sand, which can fall any time.

Importance of efficient management in business

Management: meaning, nature, features, characteristics

 Q. What is the meaning of Management? Explain its essential characteristics in detail. 

Ans. MEANING OF MANAGEMENT: Management can be scanned as 'Manage‐Men- T' i.e Manage - Men - Tactfully. It is the art of getting work done by others. Management refers to the process of conducting a set of functions (such as planning, organising, staffing,directing and controlling) to get the work done in an. efficient and effective manner. It also means taking care of pre-determined objectives. Its purpose is to achieve the best possible results by making use of material, labour, machine, methods, money and market with the minimum time, investment and efforts. Management brings together all six Ms i.e., Men, Money, Machines, Materials, Methods and Markets. 

According to Harold Koontz, "Management is the art of getting things done through others and with formally organised groups."

According to F.W. Taylor, "Management is the art of knowing what you want to do and then seeing that they do it in the best and cheapest way."

According to Prof. Donald J. Clough (Prof. Clouge), "Management is the art and science of decision-making and leadership."

According to Rose Moore, "Management means decision-making."

ESSENTIAL CHARACTERISTICS OF MANAGEMENT: 

i) Management is a Goal-oriented Process: No goal in 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. 

ii) 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. [Management is pervasive in nature I.e. applicable to everywhere. It is used in business as well as non-business organisations like educational institutions, charitable trusts etc. The principles of management are applicable at all the levels, departments, employees in the organisation.]

iii) Management is multi-dimensional: Management is three dimensional activity. Or Management is a complex activity that has three main dimensions. These are:

a) Management of work: Every organisation is established for doing some work such as school provides education, hospital treat patients and factory produces goods etc. Of these, no work will be satisfactorily completed without management.

b) 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.

c) Management of operations: To achieve the goals of an organisation many operations or activities need 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. 

iv) Management is a Continuous process: Management is not a process which can be performed once and for all, but it is a Continuous process. Functions of management like planning, organising, staffing, directing and controlling Continuously need to be done. These functions are simultaneously performed by all managers all the time. A manager is busy sometimes doing one managerial activity and at the other time, some other activity. [It is a continuous process as it continues till business survives.] 

v) Management is a Group Activity: It means that it is not a single person who consummates all the activities of an organisation but it is always a group of persons (managers). Hence, management is a group effort. 

vi) Management is a Dynamic Function: Management is a dynamic function and has to adapt itself to the changing environment.

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

OR

(i) It is a Group Effort: As per this characteristic of management, it is not a single person who consummates (completes) the whole process of management but it is a group effort. All the managers are affected by each and every decision taken in the organisation. A task can be successfully accomplished only with the collective (group) effort. For example, a company wants expansion of its business. For the fulfilment of this objective, participation of all, i.e. marketing manager, production manager, sales manager, finance manager etc. is required. So, it is right to call management a group effort. 

(ii) It is a Goal Oriented Process: Every organisation is established for the fulfilment of one or the other objective. Management acts as a medium which facilitates in achieving these objectives. A manager on the basis of his knowledge and experience anticipates future events and plans accordingly. He not only monitors the work progress of the subordinates but also guides them. Moreover, from time to time the manger motivates his subordinates and finally, in this manner, predetermined objectives are achieved.

(iii) It has a Distinct Entity: It is not possible for an owner to perform all functions himself. In other words, it can be said that in an organisation the owner (who invests money) and a manager (who manages the organisation) can be different persons.

(iv) It is an Intangible Force: Management is a force/power which is not visible/seen. It can only be felt or realised on the basis of the success of an organisation. For example, if an organisation marches ahead on the path of progress, it will be taken as a sign of good management but if an organisation is moving towards decline, it signals unsuccessful management. Hence, management can be called an Intangible force.

(v) It is a process: A process means a definite system of functioning. Management is a process which includes the activities like planning, organising, staffing, directing and controlling and it is used in efficiently utilising the human and material resources for the achievement of pre-determined objectives.

(vi) It is an Inborn and Acquired Ability: According to the Traditional Concept of Management, management ability is an inborn quality which means managers are not made but born. In other words, management ability is inborn and a person inherits it and it cannot be acquired with the help of education and training. According to Modern Concept of Management, if a person does not possess the gift of in-born management ability, it can be acquired through education in management.

(vii) It is a Universal Activity: Universality is that truth which is prevalent in every sphere (Business or non-business) and is equally applicable everywhere and management too has this quality. Every business (industrial enterprise) or non-business organisation (educational institutions, govt. offices, Army clubs and social institutes) has to make an efficient use of human and material resources in order to achieve their objectives and go through a process of planning, organising, staffing, leading and controlling. In this way the management activity is the same in all the types of organisations and the same principles are applied every where. [Management is not applicable in business undertakings only. It is applicable to political, social, religious and educational institutions also.]

(viii) It is Multidisciplinary: In reality management is Multidisciplinary. It means that management is a separate subject and developed from various other disciplines. In developing itself into a separate subject, it has benefitted from various disciplines like Psychology, Sociology, Anthropology, Economics, Statistics, Mathematics etc. After collecting various thoughts from disciplines, management came to develop its own thoughts and principles. The integrated knowledge of different subjects has made a valuable contribution to the subject of management. It is called The foundation of management. 

(ix) It is a Social Science: Social Science is connected with human beings. Management is a social science like other social sciences- Economics, Sociology, Political Science etc. It is related to man as a social being who is sensitive, reasoning and dynamic being. The managers accept management principles for their guidance.

(x) It is a system: Now management is being looked upon as a system. It means taking various aspects of management into consideration rather than thinking about a particular single aspect. Management lays stress upon the coordination between various activities of the organisation.

(xi) It is a Dynamic System: Management is based on certain principles which are dynamic. Principles mean some basic truth which establishes a link between cause and effect. The principles of management continue changing according to the atmosphere in which an organisation functions. Because of this Continuous change in atmosphere many old principles have been replaced by new ones. Thus, no principle can be treated as final. In this context it can be said that nothing is permanent in the field of management. Because of the fear of adverse effects of these changes a manager can anticipate them before hand. He can give such a direction to the polices and planning of his organisation as not to allow these changes to affect it.

(xii) It involves social responsibility: Today, management is looked upon as a social responsibility. A manager always takes decision in the interest of the organisation. But if a particular decision takes into consideration only the interest of organisation and ignores the interest of society, it will not only endanger the existence of organisation bur ensire its downfall. In other words, no decision of the manager is acceptable which is one sided. For example, if a top-level managers takes the decision of establishing a factory in a residential area which can possibly endanger the environment, the people will threaten the very existence of the manager and the organisation. Similarly, inferior goods, high prices and improper stocking of goods may be in the interest of the organisation but any such decision is anti-social and for this society will never forgive the business enterprise (the organisation). Thus, the functions of manager are not confined to the organisation alone, he is responsible to society also.

(xiii) It is a Profession: These days management is popular as a profession. Now nobody is made a manager in a business organisation simply because he has invested capital in it or he is related to such a person but he is appointed as manager simply because he has the requisite ability and qualifications. On this basis managers have come to be recognized as professionals like doctors, lawyers and teachers.

(xiv) It is both Science and Art: Management possesses the qualities of both science and art. Science refers to a systimatic body of knowledge which is acquired on the basis of observation and experiments and verification of this knowledge is possible. Management is called science because like science it has its own definite principles which are applied everywhere. For example, the principle of division of labour and specialisation is applied every where. This principle is based on the fact that if work is divided according to the ability and taste, and some person is given the same work repeatedly, he gains proficiency in his work performance. On the other hand, Art means a system of doing something in a disciplined or organised manner. It refers to the practical application of existing knowledge skillfully. Management is described as an art as an efficient manager tries to function in organised or systematic manner by establishing coordination between human and material resources. [Management is a science as it follows well established principles which are universally applicable. Management is a social science as it deals with people. On the other hand, management is an art as it involves getting things done through people. Art is an inborn talent and requires skill. Managers as an artist needs to be creative and should have skill to get work done through people to organisational objectives.