Ch.2 Nature of management “Different management experts have described the nature of management differently in their own time.” 1.Management and social responsibilities 2.Management:As a profession 3.Management:An art or a science

SOCIAL RESPONSIBILITY Meaning :- Meaning :- Social responsibility of business refers to its obligation towards various parties of the society. Social responsibility of business refers to its obligation towards various parties of the society. Definition:- Definition:- Acc to the international seminar,new delhi (1995), “Social responsibility of business towards customers,workers,shareholders and the community.” Acc to the international seminar,new delhi (1995), “Social responsibility of business towards customers,workers,shareholders and the community.”

Arguments against social responsibilty:- Arguments against social responsibilty:- 1. Contrary to the objective of business 2. Inefficiency in the system 3. Effect of business values Arguments for social responsibility:- Arguments for social responsibility:- 1. Business is a part of society 2. 2.avoidance of govt regulations 3. Long term self interest of business.

Social responsibility of managers towards various parties of the society 1. Towards owners:-  To ensure safety of the capital  To ensure proper dividend  To ensure timely payment of dividend  To ensure the proper utilisation of invested capital  To treat equally different types of shareholders  To inform about the progress of the organisation  To present correct accounts

2.Towards employees:-  Giving them appropriate remuneration  Providing clean work atmosphere  Respecting individual dignity  Giving them a share of profit  Giving security of service  Giving participation in management  Adopting incentive giving system  Solving labour problems in time  Providing for their education and training  Providing opportunity for promotion and development

3.Towards consumers:-  Make available good quality goods at cheap rates  Bring out real advertisements  Avoid adulteration  Provide after- sales service  Make available goods acc to the tastes of the consumers.  Make available goods to the consumers at the nearest points  Be civil and polite to consumers  Treat customers like god  Solve their problems politely  Avoid [rofiteering and stock piling

4.Towards suppliers:-  Making timely payments  Informing about the tastes of consumers  Giving appropriate price of the material supplied  Informing them of future development plans

5.towards government:-  To pay taxes honestly  To observe rules laid down by the government  To help the govt by establishing new industries  Not to exploit govt machinery by unfair means

6. Towards competitors:-  To encourage mutual cooperation  To prepare clean atmosphere for competition  To encourage market research  To work jointly for the devlp of business  To discourage artificial transaction to increase prices

7.Towards the world:-  To contribute towards international peace  To observe rules of international market  To help in the devlp of economically backward countries  To do business honestly

8.Towards community:-  To make available opportunities for employment  To avoid polluting the environment  To contribute to the raising of the standard of living  Avoid indecent advertisements  To be a partner in social devlp by establishing educational institutions, hospitals,etc.

9.Towards self:-  Earn reputation by efficient running of the business  Earn sufficient profit through proper means  Enhance own ability through training and experience  Take interest in research related with business  Enter new markets  Do business in a just manner

Management- A profession Profession refers to that economic activity which is conducted by a person having some special knowledge and skill which is used impartially to serve different sections of the society. Profession refers to that economic activity which is conducted by a person having some special knowledge and skill which is used impartially to serve different sections of the society.

Is management a profession? Body of specialisation knowledge and technique Body of specialisation knowledge and technique Formalised methods of acquiring training and experience Formalised methods of acquiring training and experience Establishments of representative professional association Establishments of representative professional association Code of conduct Code of conduct Priority of service over economic consideration Priority of service over economic consideration

Management an art Acc to G.R terry: “Art is bringing about of a desired result through application of skill.” Acc to G.R terry: “Art is bringing about of a desired result through application of skill.” Features:- Features:- Personal skill Practical knowledge Cocrete result oriented approach Development through practice Creative process

Management – a science Acc to Ketnes, “Science is a systematised body of knowledge which which establishes relationship between cause and effect.” Acc to Ketnes, “Science is a systematised body of knowledge which which establishes relationship between cause and effect.” Features:- Features:- Systematised body of knowledge Based on facts,analysis and experiments. Universal application Cause and effect relationsip. Verification of validity and prediction of results possible