Fundamentals of Business Economics and Management · Introduction to Management

Concept, Nature and Definition of Management

Updated 10 October 2026 · Fact-checked

Management is the process of getting things done through people by planning, organising, leading and controlling resources to reach set goals efficiently and effectively. It is goal-oriented, universal, continuous and multi-dimensional. It is partly a science, an art, and an emerging profession. In MCQs, match the feature to its description.

Understand Concept, Nature and Definition of Management

Every organisation has goals: a factory wants to make goods, a school wants to teach. Resources like money, people, machines and time are limited. Management is the process that uses these limited resources to reach the goals.

The key idea is that a manager gets work done through others. A manager does not do everything personally. A manager plans what to do, arranges resources, guides people and checks results.

Two words appear in almost every definition. Effectiveness means doing the right task, that is, achieving the goal. Efficiency means doing the task with the least waste of input. Good management aims for both.

Definitions by key thinkers stress different points. F. W. Taylor saw management as knowing exactly what you want people to do and seeing that they do it in the best and cheapest way. Henri Fayol described management as to forecast and plan, to organise, to command, to coordinate and to control. Mary Parker Follett called it the art of getting things done through people. Koontz and O'Donnell stressed getting things done through and with people in organised groups. Check the exact wording in your study material, but remember each thinker's key idea.

The nature of management is seen in its features: it is goal-oriented, universal, a group activity, a continuous process, multi-dimensional, intangible, and it works under a dynamic environment. It also shows traits of science (organised knowledge, principles tested by experience), art (personal skill and creativity) and profession (needs training and carries an ethical code).

Key formulas to remember

Definition in one line: Management = Planning + Organising + Leading + Controlling of resources to achieve goals; Fayol's list is wider: to forecast and plan, to organise, to command, to coordinate and to control.
Efficiency vs effectiveness: Effectiveness = doing the right things (goal achieved); Efficiency = doing things right (least waste); Management aims for both. A task can be efficient yet ineffective.
Management as a science: Science = organised body of knowledge + principles based on experiment/observation; Management principles are less exact than physics, so it is called an inexact or social science.
Management as an art: Art = theory + personal skill + creativity + practice; Knowledge must be applied with personal skill.
Management as a profession: Profession = specialised knowledge + formal education + professional body + code of ethics + service motive; Management lacks a compulsory licence or single governing body, so it is treated as an emerging profession.

How to solve Concept, Nature and Definition of Management questions

Most questions here ask you to define, identify a feature, or classify management as science, art or profession. Use this method.

1Read the question stem and underline the key phrase, such as 'through others', 'universal' or 'code of ethics'.
2Decide the type: definition, thinker, feature, or science/art/profession.
3For a thinker question, recall that thinker's key idea (Taylor: best and cheapest way; Fayol: functions; Follett: art of getting things done through people).
4For a feature question, match the description to the feature name: all organisations means universal, ongoing means continuous, cannot be seen means intangible.
5For science/art/profession, test the clue: tested principles means science, personal skill means art, ethics code and training means profession.
6Eliminate options that overstate, such as 'exact science' or 'full-fledged profession'.
7Pick the option that fits the clue best and move on.

Quickest way: Keyword-matching shortcut

When to use it: Use for one-line identification MCQs on definitions, features and nature, where you have under a minute per question.

Link each clue word to one idea: people means 'through others', goals means purposeful, all sectors means universal, creativity means art, ethics means profession.
Spot absolutes like 'exact', 'only' or 'always' and eliminate them.
If two options look right, choose the one closer to the standard textbook wording.
Never leave a question blank, as there is no negative marking.

Common mistakes in Concept, Nature and Definition of Management

Calling management an exact science
Students see 'science' and assume it works like physics.
Fix: Remember it is an inexact or social science because human behaviour cannot be fully predicted.
Treating management as a full-fledged profession
Managers need skill and some training, so students assume it qualifies.
Fix: No compulsory degree, licence or single statutory body exists for managers. Say it is an emerging profession.
Mixing up efficiency and effectiveness
Both sound like 'doing well'.
Fix: Effectiveness is the right goal reached; efficiency is least input for the output. Think 'right things' versus 'things right'.
Attributing definitions to the wrong thinker
Several definitions sound alike and students memorise names loosely.
Fix: Tag each thinker with one keyword: Taylor with best and cheapest way, Fayol with functions, Follett with art of getting things done through people.
Confusing universal with the same everywhere
Students think universal means identical practice.
Fix: Universal means principles apply to all organisations, business or non-business. Their application differs.
Thinking management is a tangible thing
Students see managers and offices and call it visible.
Fix: Management is intangible. You see only its results, such as profit, order and morale.

Worked examples

Example 1

A hospital trust, a school and a cricket club all use planning, organising and control to reach goals. Which feature of management does this show? (A) Intangible (B) Universal (C) Continuous (D) Dynamic

Show the solution

Underline the clue: different kinds of organisations all use the same functions.
Match: principles applying to all organisations, business or not, is universality.
Eliminate A (cannot be seen), C (ongoing process) and D (changes with the environment). None matches the clue.

Answer: (B) Universal

Example 2

A manager learns motivation theory from books, but a similar team of workers responds very differently to each manager's style. Management here is best described as: (A) an exact science (B) an art (C) a licensed profession (D) a tangible asset

Show the solution

The clue is that the same knowledge gives different results depending on the person applying it.
Personal skill and creativity in applying theory is the mark of an art.
Eliminate A, as management is not exact. Eliminate C, as no licence is compulsory. Eliminate D, as management is intangible.

Answer: (B) an art

Exam tips

Learn each thinker's definition by its keyword, as MCQs often ask who said what.
Expect statements with absolutes like 'exact' or 'always'. These are usually wrong.
For science, art and profession, memorise two or three tests for each and match the clue.
Know the difference between efficiency and effectiveness, as it is a common trap.
Attempt every question, since there is no negative marking.

Practice questions from Introduction to Management

Concept, Nature and Definition of Management: frequently asked questions

Is management an art or a science?

It is both. It has organised knowledge and principles like a science, but applying them needs personal skill and creativity like an art. Most textbooks call it an inexact science and an art.

Is management a profession?

It meets some tests, such as specialised knowledge and growing ethical codes. It does not need a compulsory licence or a single governing body. So it is usually called an emerging profession.

What are the main characteristics of management?

Management is goal-oriented, universal, a group activity, continuous, multi-dimensional and intangible. It also works within a changing environment. Learn one-line meanings of each for MCQs.

Which definition of management should I remember for the exam?

Remember the core idea: getting things done through people to achieve goals efficiently and effectively. Then attach one keyword to each thinker, such as Fayol with functions and Follett with the art of getting things done through people.