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What is The Nature and Scope of Management?

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19th May, 2024
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What is The Nature and Scope of Management?


In this article, you will learn all about the Nature and Scope of Management.

Nature is explained in terms of its features.

  • Universal
  • Social
  • Intangible
  • Dynamic
  • Goal-Oriented
  • Production Factor
  • Co-ordinating
  • Crucial Part of Society
  • Professional
  • Process 

The scope is divided into two sections.


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  • Organization
  • Planning
  • Coordination
  • Directing
  • Controlling
  • Directing


  • Marketing Management
  • Production Management
  • Office Management
  • Personnel Management
  • Financial Management
  • Purchasing Management
  • Production Management
  • Transport Management
  • Distribution Management

Read more to know each in detail

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.

Management courses are highly in demand, they are projected to grow by 14% from 2022 to 2030 to reach USD 265.68 billion by 2030(Source). There is a reason why there is a scope of management courses, it is because these courses focus on subjects like economics, finance, business management, decision-making, behavior management, etc. 

Aspirants for management courses come from different walks of life having their own set of aspirations. For example, recent graduates go for management courses in order to enter the industry with a decent package and company, business owners go for management courses in order to understand about various verticals of their business well so they could handle it all better and the people already into the workforce go for management courses to accelerate their career growth and get better opportunities with increased salary hike and promotions.

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Moreover, we have discussed how you can learn more about management if you’re eager to become a professional later in the article.

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What is Management Nature & Scope? 

Management involves planning, organizing, leading, and controlling resources and operations within an organization to achieve specific goals. Its nature is multifaceted, integrating administrative, financial, and strategic practices to enhance efficiency and effectiveness. The scope of management spans across various domains such as human resources, project management, and corporate strategy, reflecting its pivotal role in coordinating and directing business activities to maximize productivity and achieve business objectives.

So, let’s begin.

What is Management?

The word ‘management’ can be defined as all the activities and tasks undertaken by an organization’s employees to achieve organizational goals. Any company’s success depends on the strength of its managerial positions.  

Management is collaborating in the planning, organizing, directing, and controlling phases of all available resources effectively. This helps organizations focus their efforts towards achieving a common vision. 

Management is a flexible concept and is used in various ways. To explain nature and scope of management, you must understand its different contexts. Here are some of the categories that describe management in different contexts. 

1. Management as an activity 

As an activity, management is responsible for overseeing the daily tasks and accomplishments of their employees. This helps prioritize activities and monitor progress which helps in overall growth. It also helps prevent task repetition and miscommunication since everyone is aware of their roles and responsibilities. It promotes accountability and clarity — the pillars of business growth and success. 

2. Management as a process 

Management as a process aims to increase the efficiency and productivity of a company. The goal is to strengthen the client base, improve skills, gain knowledge, and increase the capacity of employees to achieve the set targets. Management is a never-ending process; it brings various individuals and teams together. Everyone works towards achieving common objectives. 

The following are some of the importance of management as a process: 

  • Integrated process: Management of a company brings together physical, human, and financial resources. It is also responsible for integrating human efforts to keep them in harmony. 
  • Social process: Management involves interpersonal interactions. The most crucial aspect of management is the human factor. Only when employees of a company have productive and harmonious relations can goals be achieved. 
  • Interactive process: Managerial functions are associated with one another. When creating plans, managers also establish control standards. 
  • Continuous process: In management, it is necessary to identify and resolve problems continuously. It is repeated daily until the organizational goals are achieved. 

3. Management as a profession 

Management as a profession has gained a lot of popularity in recent times. Many organizations seek individuals with an MBA (Master of Business Administration). Having specialized knowledge helps people gain a competitive edge, making them ideal candidates for managerial roles. MBA graduates are needed in almost every industry. A study showed that 95% of consulting sector recruiters planned to hire MBA graduates.

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. 

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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.

  1. Universal
  2. Social
  3. Intangible
  4. Dynamic
  5. Goal-Oriented
  6. Production Factor
  7. Co-ordinating
  8. Crucial Part of Society
  9. Professional
  10. Process 

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Let’s discuss each one of the features briefly to understand the nature of management in detail

1. Universal

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. 

The skill of management has applications in every field because the subjects are so vast and compatible with business demands. For example, the knowledge of decision making, finance, economics, sales, etc. is of importance in any other business across the domains. So someone having studied either or all of these courses would find a way to grow in the company because of the relevant nature of the courses.

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2. Social 

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. 

The management course opens many opportunities for the employees to work with various teams, also they get an opportunity to work in leadership positions. To work with different teams having a basic understanding of other departments is necessary. 

Handling teams is another scope management plan, where the management understanding comes into the picture. To bring productivity out of a team having different personalities, strengths and weaknesses is a skill. 

Also, post-Covid the work culture has turned hybrid, where motivation and productivity are the utmost output a company expects. To keep that in check social skills are of importance as the team should focus on productivity but equally be sensitive and motivating to achieve the results.

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3. Intangible

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 an abstract concept, where the effects are being felt. For example, when a team is productive, meets its targets, achieves the results, and stays motivated the management is praised. Because when the team is together achieving a result there is some strategy, and motivation that is working behind the scenes.

On the other hand, when the team is demotivated, not achieving the targets, and remains unproductive. Then also the management is being asked to understand the reasons behind the team’s nonperformance. 

Basically, it is the management that is the driving force behind productivity. 

4. Dynamic

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. 

Not every day looks the same, each day comes with new possibilities and new challenges. This is where the skillsets of the management come into the picture. The corporate world requires its employees to have a go-getter attitude and that comes only when one has the confidence and basic knowledge to think critically.

Read: Product manager career path and its scope

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5. Goal-Oriented

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. 

In order to achieve the goals, it is necessary to be strategic and have a vision. The goals are achieved by having a proper strategy and if the situation arises, having the flexibility to quickly adapt to the new change.  Strategy creation is also a skill to have, having the ability to critically think and to make everyone in the team align is what it takes to achieve the goal.

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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 

It is the manager’s responsibility to keep the productivity factor in check of the team. They need to come up with strategies to keep the output incoming. They have the ability to utilise the resources they have by working with the employee’s strengths and weaknesses. The management makes sure to follow a path where they praise when the team works well and gives direction when the team needs it. It is balanced and serves its purpose.

7. Co-ordinating

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. 

The management works with various teams because no one team works in isolation. If it’s a sales department, they would closely work with finance. If it’s a marketing department they would work closely with project, program, sales, content, etc. This is why the management requires sync to get better outputs. This is also where project scope management helps as a skill.

Read: Essential management skills for a successful career

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. 

Management has a huge impact on the company’s growth, the better output management brings the better finance the company gains. With the increase in the finances, the company can contribute better to CSR and can support more social causes, and enhance its philanthropic activities.

9. Professional

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. 

It is very important for the management to be professional because they need to lead by example, if they are positive, motivated, punctual, dedicated, and disciplined in their work then only they will bring the best output to their team. But if they are demotivated, talk crassly, indisciplined towards their work, their team will also mirror their actions and that will show in their output. 

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10. Process

Management consists of a sequence of actions that we conduct towards an end. 

Scope of Management

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. 


  • Organization
  • Planning
  • Coordination
  • Directing
  • Controlling
  • Directing

When we talk about the nature and scope of management, it implies the collective activities, things, people, and processes needed for a company’s mission. 

These activities are as follows: 

  • Planning 

The management is responsible for planning, organizing, staffing, directing, and controlling a company to fulfill its objectives. Planning is the most crucial and fundamental step in the process. If employees working in different groups need to perform effectively, they should be aware of what they need to do, how it should be done, and when it should be completed. 

Managers need to understand all aspects of an enterprise to manage resources efficiently, reduce organizational expenses, and motivate employees. 

  • Organizing 

This step involves identifying the activities required for achieving organizational goals. The management is responsible for the following activities:  

  • Identifying steps needs for achieving organizational goals,
  • Grouping activities and creating jobs,
  • Assigning the jobs to individuals and departments, 
  • Delegating authority to allow the employees to perform their tasks and use the resources whenever required, and
  • Forming a network for coordinating activities.
  • Coordinating 

It is the process of establishing relationships among different parts of an organization. It helps in ensuring that all the departments and employees are working towards the same organizational goals. Therefore, it is connecting all organizational operations, decisions, efforts, and activities to attain unity for achieving the set objectives. 

  • Directing 

It is the process of directing the people working to perform efficiently by giving their full effort to achieve the organizational goals. Tasks assigned to the employees should be explained and clarified to them. Employees should also be motivated to contribute their best efforts and guided during the job performance. 

  • Controlling 

It ensures that departmental, divisional, sectional, and individual performance is aligned with the predetermined goals and objectives. Any deviation from the predetermined plans should be identified, investigated, and corrected by the management. Managers should review and modify the activities whenever deviations are identified. It is a crucial part of the nature and scope of project management.


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

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 Management

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

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. 

Read: Product management career path and its scope

Personnel Management

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. 

Financial Management

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. 

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Purchasing management 

It involves the identification of services and goods needed. This step also includes evaluating the suppliers, selecting and awarding contractors, and inspecting the services and goods.

The main objective is to gain favorable terms along with minimizing the risks imposed on the organization. It is also their responsibility to ensure that all the purchases are in compliance with government regulations like those related to environmental regulations or labor standards.

Production management 

This is the process of managing the conversions of inputs into outputs. The production function helps identify how much of one output can be obtained with a given level of inputs.

Transport management 

It is the process that deals with collecting and analyzing data on all aspects related to transport, such as shipments, freight volumes, charges, and revenue. The goal of transport management is to improve the efficiency of operations to minimize costs and maximize profits. Organizations using this strategy often purchase software or hire consultants to provide them with accurate information regarding the company’s performance.

Distribution management 

It is the process of planning, implementing, and controlling the distribution of services and goods from their point of origin to the point of consumption. This process also takes care of any mishaps that might occur in the delivery of the service or goods.

What is Project Scope Management?

It is the process that helps determine and document a list of all the project deliverables, goals, deadlines, tasks, and budgets in the project’s planning stage. Project managers must also keep room for modifications along the way.

The three major steps in project scope management are: 

  • Planning: In the planning process, an attempt is made to establish and list the work that is to be done.
  • Controlling: In this step, the main task is to document, track, and approve or disapprove project modifications.
  • Closing: The final step includes an audit of the project deliverables and an examination of the outcomes corresponding to the original plan.

Significance of Project Scope Management

For project managers, managing the expectations of clients and stakeholders is a very challenging task. Having a definite project scope allows managers to stay on track and ensure that all deadlines are met throughout the project life cycle.

Having a well-defined project scope of management allows for avoiding the following common problems such as:

  • Changing the project direction when it is already midway
  • Constantly changing the project requirements
  • Going over the budget
  • Realizing that the outcome is different than what was imagined
  • Failing to meet project deadlines

With proper project scope management, it is easier to understand the amount of labor, time, and cost needed for the project. This helps clearly distinguish between what is needed and what isn’t.

The Scope Statement in Project Management

A project’s scope statement, also known as a project scope document, or statement of work, entails the following things:

  • Establishes the responsibilities of a team and also states the boundaries of the project.
  • States all the processes that must be followed to check and approve the finished work.
  • Provide the team members with a definite guideline to make project-related decisions.

While documenting the project scope, stakeholders and team members must be as specific as possible to avoid scope creep. Scope creep occurs when some parts of the project take more effort and time than initially discussed because of poor planning and miscommunication.

Five Main Processes in Project Scope Management 

As a project manager, you must create a well-defined project scope. Here is a project scope example to capture, define, and monitor the scope of management: 

  • Collecting requirements: Gather and document the expectations and needs of both stakeholders and the target audience.
  • Define scope: Develop a detailed project scope statement that helps outline the project objectives, deliverables, and boundaries.
  • Develop work breakdown structure: Break the project scope into smaller, manageable components.
  • Validate scope: Get the stakeholders’ approval for the project deliverables.
  • Control scope: Monitor and control the project scope, also mitigate the changes and their impact on the project.

Become A Skilled Manager 

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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

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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 project management courses.

This course is taught by experienced industry experts who will help you understand the need and scope of management. It will equip you with practical experience that you will need to excel in the field.

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. 


Nitin Gurmukhani

Blog Author
There is no better service to society than helping voluntarily. Grammarly fan, random reader, and an avid learner.

Frequently Asked Questions (FAQs)

1What is the scope of management?

The scope of management is wide and has vast applications. The management is responsible to bring output to the tasks. These outputs are behind the company’s success. Success is not limited to the company but the employee’s personal growth is also associated with it.

2Why is scope management important?

Scope management is responsible to define the scope and deliverables of the project. It makes sure that the proper team and cost are aligned with a particular project. It is important because it controls the scope of the project and defines the responsibilities and expectations of the project.

3What is in a scope statement?

A scope statement is clearly defined. A scope statement mentions a clear description of the objective. It also mentions the resources, labor, and cost allocated to the project.

4What is nature and importance of management?

Management is the core of a company’s growth, having strong management is an evolving process. The management set clear objectives, output, labor, and budget for any task that goes forward. It is behind creating the strategies and setting a mindset and culture in the team.

5What questions should the scope statement answer?

The scope statement should answer the following- Objectives Deliverables Timeline Deadline Labor/ Resources Cost/ Budget Flexibility for unforeseen circumstances

66. What are the six parts of the project plan?

The following are the six parts of the project plan- Objectives/ Goals Define Deliverables Methodology/ Framework/ Strategy Schedule/ Timeline/ Deadline Risks Summary/ Presen the plan

77. What is the project scope statement?

The project scope statement mentions the objective, deliverables, allot budget, and timeline needed to complete the project.

88. What comes first scope or requirements?

The scope is the boundary drawn for a given project. It is the first step before beginning any project. The scope comes first and the requirements come later.

9Why do people study management?

Management is a versatile field; it is an integral part of all sizes and all kinds of businesses. When you study management, you become eligible to work in any business domain, no matter your educational background. For instance, if you studied engineering and then go for a course in management, you can look forward to working in a finance company; or being an English literature graduate, you can work as an HR manager in a tech company depending on your specialization. Studying management provides the skills and knowledge needed to work in leadership roles, manage teams, head your own company and even boost your earning potential.

10What are the different branches of management?

Contrary to what many of us think, management or business management is actually a diverse field consisting of various sectors; it does not include any particular industry. As a matter of fact, management is an umbrella term that includes at least two dozen branches! You might have already heard of some of the streams, like financial management, human resources management, marketing management and sales management. But there are many other branches too, such as strategic management, program and project management, production management, operations management, IT management, service management, supply chain management, public relations management, research and development management, design management, risk management, quality management, change management, and more.

11What is the work of a management consultant?

Management consultants offer expert advice to organizations to boost their performance and offer resolutions that promote prosperity. They work with different kinds of businesses, both public and private firms, belonging to diverse sectors, including finance, business strategy, marketing and human resources. In other words, management consultants need to provide companies with an audit of existing policies and procedures and recommend steps for improvement along with an action plan that can be implemented. They need to offer strategic advice on specific issues and engage in data analysis and gathering, implementation, problem definition and advice.