What is The Nature and Scope of Management?

Summary:

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.

Activities

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

Branches

• Marketing Management
• Production Management
• Office Management
• Personnel Management
• Financial 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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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. 

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Nature

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

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. 

Activities

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

Branches

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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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. 

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Conclusion

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.

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.