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# Chapter 1: Management - Meaning, Characteristics, and Functional Area "The manager is the dynamic life-giving element in every business without his leadership resources of production remain resources and never become production." - Peter F. Drucker ## Management has become an important ‘Economi...

# Chapter 1: Management - Meaning, Characteristics, and Functional Area "The manager is the dynamic life-giving element in every business without his leadership resources of production remain resources and never become production." - Peter F. Drucker ## Management has become an important ‘Economic Organ’ of the present industrial society. - Every person in the world, from the family head to the Prime Minister of the country, or from the worker to the Managing Director of a Joint Stock Company, is busy managing different types of affairs that must be performed in discharging their entrusted duties. - Management is the co-ordination of human and physical resources towards the attainment of objectives. By managing different activities, we can best utilise our available sources and physical resources. As the mind of a person controls its activities, similarly, management controls business organizations, Men, Machines, and Materials in getting the work accomplished. ## Most of human activities are performed in groups. - Our actions are influenced by the action of other people. When this act of influencing is deliberate, the idea of management comes into play. - The main objective of group activity is to overcome the limitations of individuals. - A group might be formal or informal. - Informal groups such as family, playing groups, neighbours, and working groups are mostly small in size. These groups are not rational in their behaviour but are generally guided by emotions and sentiments. - Formal groups, such as business organizations, hospitals, universities, military organizations, are mostly large in size. The objectives of a formal group are determined in advance, and every person is supposed to work towards their accomplishment. The work of each member of the group is co-ordinated with that of others. - These activities are to be planned, classified and divided among different members. Direction, motivation and control also needs to be done. ## Management is required to organize these groups. - The smaller the group, the less management needed, while larger and complex the organization or group, the more management needed. - In conclusion, it can be said that an organization is like an orchestra team. - It is the management to make a music or a noise out of it. If there is an effective and efficient management, the result is sweet and melodious music; otherwise, the result is chaotic and awful noise. ## Management in Ancient Times - The history of management is as old as the history of mankind. - With the passage of time, development of human living, and changes in organizational structure, the concept and techniques of management also grew to meet the needs of changing times.