Scope of Management

Scope of Management

Scope of management is discussed below:

1. Activity Point of View: 

From activity point of view, management can used in the following activities performed by any group such as:

1. Planning: What, when and how to achieve, objectives, setting rules and procedures, policies, strategies.

2. Organising: Dividing work into convenient tasks/duties, grouping duties in the form of positions.

3. Staffing: Manning the various positions created by organising.

4. Directing: Managers communicate subordinates about their expected behaviour, guiding and leading them.

5. Controlling: Identification of actual results, comparison with expected result, identifying deviation between the two, if any, and taking corrective action to match actual results with expected results.

2. Functional Areas of Management: 

Functional areas of management include:

1. Financial Management: This includes forecasting cost control, management accounting, budgetary control, statistical control, financial planning and management of earnings.

2. Personnel Management: This includes recruitment, training, transfer, promotion, demotion, retirement, termination, labour-welfare and social security, industrial relation, etc.

3. Purchasing Management: This includes inviting tenders for raw materials, placing orders, entering into contracts, materials control, etc.

4. Production Management: This includes production planning, production control techniques, quality control and inspection, time and motion studies, etc.

5. Maintenance Management: This relates to the proper care and maintenance of the building, plant and machinery, etc.

6. Logistics Management: This includes packing, warehousing, transportation by rail, road air, etc.

7. Marketing Management: This includes marketing, market-research, price-determination, market-risk and their avoidance, advertisement, publicity, sales promotion, etc.

• Office Management: This includes the proper layout, staffing and equipment of the office.
• Development Management: This relates to experimentation, research, etc.

3. Management is an Inter-Disciplinary Approach: 

For the correct application of the management principles study of commerce, economics, sociology, psychology and mathematics is very essential.

4. Universality of Management: 

The concept of universality of management suggests that transmission of management knowledge may be undertaken:

1. By a manager from one country to another country;
2. By people from a developing country coming to study and work in an industrially advanced country and returning back to their own country; or
3. Through training and development programs for managers in developing countries.

5. Essential of Management: 

Three essential of management are:

1. Scientific method,
2. Human relations, and
3. Quantitative technique.

6. Modern Management is an Agent of Change: 

The techniques of management can be improved by proper research and development.