On this page, you’ll learn about the modern concept of management.
What do you understand by term ‘Management’?
Management is a multifaceted term with various definitions provided by different authors. In today’s environment, the traditional viewpoint of management, which relies on forceful direction of employees, is considered inappropriate. Instead, it is essential to create an environment that encourages employees to perform in the desired manner. The modern concept of management emphasizes the process of getting things done effectively and efficiently to achieve goals.
Key Points of the Modern Concept of Management
Key points of the modern concept of management include:
- Process: Management is seen as a series of steps or basic functions that are necessary to accomplish tasks. These steps involve planning, organizing, staffing, directing, and controlling.
- Effective and efficient performance: Modern management requires employees to be both effective and efficient. Effectiveness refers to completing work or achieving targets within the given time frame. Efficiency, on the other hand, focuses on optimizing resource utilization and avoiding wastage. Both effectiveness and efficiency are crucial for organizational success.
- Achievement of group goals: According to the modern concept, all managerial functions and activities should be directed towards accomplishing the organization’s goals. These goals should be shared and considered as common objectives for every employee.
Relationship Between Effectiveness and Efficiency in Modern Management
To understand the relationship between effectiveness and efficiency, consider the following:
Effectiveness
- Refers to timely completion of tasks.
- Concerned with achieving the desired end result.
- Involves meeting target production within the specified timeframe.
Efficiency
- Refers to completing tasks correctly with minimal cost and resource wastage.
- Focuses on cost-benefit analysis and maximizing benefits with minimal resource utilization.
- Aims to produce target output at the lowest possible cost.
Effectiveness and efficiency are interconnected and equally important. While effectiveness ensures tasks are completed on time, efficiency ensures that they are done correctly without wastage. Both aspects are essential for the success and profitability of an organization. In contrast, inefficiency and ineffectiveness can lead to organizational failure.
To summarize the modern concept of management, it emphasizes the process of achieving goals effectively and efficiently. This approach requires managers to plan, organize, staff, direct, and control activities. Additionally, it emphasizes the importance of employees being effective and efficient in their work. The achievement of group or common goals is a central aspect of modern management. When effectiveness and efficiency are combined, organizations can thrive and prosper.