Question

Outline any four fundamental characteristics of effective management in a modern business organisation.

Answer 1

Fundamental Characteristics of Effective Management:

1. Management is goal-oriented: Management aims to achieve economic and social objectives. It exists and operates to secure certain results. The success of management is measured by the fulfilment of desired goals. Therefore, effective management is always management by objectives. Management is a purposeful activity.
2. Management is universal: Management is all-pervading: It is required in all types of organisations big or small, business or non-business. The basic functions of management are performed at every level of authority-top, middle or lower.
3. Management is a group activity: Management is concerned with the efforts of a group of people. It unites the efforts of different members of the group so that they can function as a team. It implies the skill in getting things done through group efforts. It involves team work.
4. Management is a system of authority: Management is a rule-making and ruleenforcing authority. There is a chain of authority among people working at different levels of the organisation. Efficient management is impossible without well-defined lines of command or superior-subordinate relationships at different levels of decision-making.
5. Management is a dynamic function: Management is performed continuously so as to mould the policies and practices of the organisation according to changes in its environment. Managers also try to modify the environment in order to ensure the success of the enterprise. Therefore, management is a never-ending function.