Concept and Nature of Management

2.1 Definitions

Koontz and O'Donnell: "Management is the process of getting things done through and with people, formally organised into groups."

Henri Fayol: "To manage is to forecast and plan, to organise, to command, to coordinate and to control."

Mary Parker Follett: "Management is the art of getting things done through people."

Peter Drucker: "Management is the organ of institutions, the organ that converts a mob into an organisation, and human efforts into performance."

2.2 Nature and Characteristics of Management

Characteristic	Explanation
Goal-Directed	All management activities aim at achieving stated objectives
Universal	Management principles apply to all organisations (business, government, NGO, hospital, school)
Continuous	Management is an ongoing process — not a one-time activity
Dynamic	Management adapts to changing internal and external environments
Social Process	Involves working with and through people
Science and Art	Systematic body of knowledge (science); requires creative application and judgment (art)
Profession	Has body of knowledge, formal training, ethical standards — but debate on whether fully a profession
Multi-disciplinary	Draws from economics, psychology, sociology, mathematics, political science

2.3 Efficiency vs. Effectiveness

Concept	Meaning	Focus
Efficiency	Doing things right — minimum input for given output	Means (input-output ratio)
Effectiveness	Doing the right things — achieving intended outcomes	Ends (goal achievement)

Good management requires both — Peter Drucker's famous formulation: "Efficiency is doing things right; effectiveness is doing the right things."

---