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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 eco...

# 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 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 they have to perform in discharging their entrusted duties. ## What is Management? Management is the co-ordination of human and physical resources towards the attainment of objectives. By managing different activities, we can best utilize our available sources and physical resources. As the mind of a person controls its activities, similarly, management controls a business organization, men, machines and materials in getting the work accomplished. Most 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 is explained. ## The Objective of Group Activity The main objective of group activity is to overcome the limitations of individuals. This group can be formal or informal. ## Informal vs Formal Groups * **Informal groups**, such as family, playing groups, neighbours and working groups, are mostly a small size. These groups are not rational in their behaviour but are generally guided by emotions and sentiments. * **Formal groups**, such as a business organization, hospital, university, or military organization, 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 the work of others. These activities are planned, classified and divided amongst different members. Direction, Motivation and Control also needs to be done. Thus, management is required to organize these groups. The smaller the group, the less management is required. With larger and more complex organizations or groups, more management is required. To sum up, it can be said that an organization is like an orchestra team. It is up to management to produce music, or 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, the development of human living and changes in organizational structure, the concept and techniques of management also expanded, in order to meet the changing times.