Management has many aspects and today, we’ll talk about the nature and scope of management. This article will explain both aspects of management briefly. So if you were wondering what is the nature and scope of management, you’ve come to the right place.
Moreover, we have discussed how you can learn more about management if you’re eager to become a professional later in the article.
So, let’s begin.
Nature And Scope Of Management
The nature and scope of management is a broad topic. However, we have discussed the nature and scope of management separately to help you understand them easily.
Defining the nature of management within a few words is quite challenging.
So we have explained in terms of its features which are as follows.
- Production Factor
- Crucial Part of Society
Let’s discuss each one of the features briefly to understand the nature of management in detail
Management is universal as it’s common and crucial in all organizations. You can apply the principles of management in all situations regardless of the nature, location, and size of the enterprise.
Management’s universality implies that its skills are transferable from one person to another which allows managers to get trained and develop those skills.
Management involves handling people organized in a group. All the individuals a manager has to interact with have various levels of dynamism, understanding, and sensitivity.
Management requires retaining, motivating, and developing people at work and ensuring their satisfaction as social beings.
Management is intangible. It’s not a thing or object which you can touch but you can feel its presence through the results of its efforts as adequate, orderly work output and employee satisfaction.
Management is dynamic as it must remain equipped to face various changes in the corporate environment caused by social, economic, technological, political, or human factors.
It inspires and thrives on dynamic action.
All the activities performed in management processes are goal-oriented. They all focus on achieving specific goals. Management processes aim to achieve the organization’s goals that are practical and realistic.
It is purposeful as its success is measured by the extent to which it achieves the desired goals.
6. Production Factor
Managers are vital to utilizing capital and labour. That’s why management is a significant factor of production. Learn more about Soft Skill For Product Manager
Management requires coordination between groups of people. All physical and human resources require efficient coordination to achieve optimal levels of productivity.
Without it, no work would complete leading to retention and chaos.
8. Crucial Part of Society
Society has a great impact on management and similarly, management has an impact on society. Managers are responsible for contributing to society through charity, organization, and growth.
Managers must have the proper knowledge and managerial training.
They must also conform to the code of conduct and be conscious of their humans and social responsibilities.
Management consists of a sequence of actions that we conduct towards an end.
Now that we have discussed the nature of management, let’s discuss its scope. Its scope is quite large as it requires organization in every aspect.
We can divide its scope into two sections for better understanding.
Following are the operational aspects or branches of management
- Marketing Management
- Production Management
- Office Management
- Personnel Management
- Financial Management
Let’s discuss each one of these branches briefly.
Marketing management is the organization, planning, direction, and controlling the people’s activities operating in the marketing department of an organization while aiming to achieve the enterprise’s objectives.
You can consider it as a process of finding and assessing the customers’ requirements to fulfil them through products or services.
It aims to make the final consumer aware of the products or services to make them interested in the same with a focus on profitability.
Marketing management ensures that the available resources are used optimally to get the best possible results.
Some of the aspects of marketing management covers are sales promotion, market research, branding, marketing policy, distribution channels, market analysis, after-sales service, sale-mix, and many others.
As you can see, marketing management is a huge aspect of any enterprise.
Production refers to creating utilities. Their creation happens when we convert raw materials into our desired finished products.
So, production management is the section of management which by scientific regulation and planning runs that division of the organization which is responsible for actually translating the raw materials into finished products.
Without production, a business won’t generate its products or services, that’s why production management is so vital for its success.
Production management handles the planning and regulation of the production process because, without them, the final product wouldn’t satisfy the customers, causing the business to close its doors.
Some of the business aspects production management covers are quality control, plant layout, production type, simplification, research and development, etc.
Office management deals with controlling and coordinating all office activities to achieve the business’s goals. It organizes the office and its tasks so that the management can achieve its objectives efficiently.
You can say that it is a service department for all other sections of the business.
The administration’s efficiency affects the business’s success significantly, which depends on the information the office supplies to the administration.
Moreover, the amount of paperwork an office has to do has risen substantially because of enhanced regulations, complexities, technologies, expansion, etc.
These factors have increased the importance of office management in the current day and age.
Personnel management involves activities and processes that use and control the enterprise’s manpower. Human resources are among the most vital factors determining an organization’s success.
It deals with operative and managerial functions. Some of the managerial functions in personnel management are directing employees, personnel planning, and control.
Similarly, some operative functions in personnel management are determining equitable and appropriate compensation for employees, procuring the right quantity and type of people, ensuring proper working conditions, integrating the personnel’s interests with that of the enterprise, and much more.
Without effective personnel management, it would be impossible for an organization to succeed. That’s why it’s one of the most significant branches of management and demands a lot of attention.
An enterprise’s finances matter a lot. Financial management focuses on managerial activities that utilize and procure the finances of a business. The finances of an enterprise can become highly complicated that’s why effective financial management becomes crucial for its goal achievement.
The primary functions of this management branch are ensuring fair returns to stakeholders, estimating capital requirements, laying down suitable and optimal capital, etc.
Apart from the above functions, financial management handles the coordination of tasks within departments, preparation and analysis of financial statements, negotiation with external parties and creating an effective dividend policy.
Sometimes, organizations hire service providers to help them with their finances (chartered accountant, actuary, etc.). Those service providers would fall under financial management too.
Become A Skilled Manager
Management is among the most sought-after skills in India. Managers are among the highest-earning professionals in the country making it one of the most lucrative careers.
Taking a management course will help you learn the required skills from instructors through interactive quizzes, videos, assignments, and live lectures. Our management course lasts for two years and gives you a framework to succeed.
You’ll get a PGDM certification from one of the top business schools in India, Birla Institute of Management Technology (BIMTECH). You’ll receive 1:1 career counselling with resume building support and mock interview preparation from upGrad’s exclusive career coaches.
upGrad has a dedicated career center which offers job opportunities from over 300 hiring partners. Our course allows you to get personalized mentorship that lets you remove doubts quickly. Moreover, you’ll get to network with your peers through the discussion forums.
The course covers marketing management, supply chain management, strategic management, economics, financial management, and all the necessary subjects you should learn to become competent management professional; on top of the core subjects, the course allows you to specialize in business management, banking insurance and finance service, information technology, or retail management.
You only need to have a valid bachelor’s degree to be eligible for this course. If you’re looking to enter the management sector then we recommend taking this course. You can learn more about our PG management course here.
We hope that you found this article on the nature and scope of management useful. If you have any questions or suggestions regarding this topic, please let us know through the comment section below. We would love to hear from you.
On the other hand, if you’re interested in learning more about management and want to enter this field as a professional, check out our management course.
It will help you learn the necessary skills and become a proficient manager. The course provides you alumni status of one of the top business schools in India and ensures that you get a fantastic learning experience.