Hello everyone, in the previous topic we were talking about Leadership. Today we are going to talk about Management. In this topic, we will discuss – What is Management, its function and scopes.

What is Management?

Introduction

Management is a process of planning, decision making, organizing, motivating, leading and controlling the human resources, financial, physical, and information resources of an organization to reach its goal efficiently and effectively.

In more detail we can say that, Management is the process of creating and maintaining a common purpose for a group of people. It’s the energy needed to bring people into groups, groups into bigger groups and to keep the bonding between the people.

Management meant to motivate the people to do the best that they can to reach the company’s purpose. It meant to protect the company from internal and external risks. It means to take care of all the people working in the company.

It meant to ensure that the company will continue to operate and grow. It required dealing with or maintaining influence or authority over things or people.

 

 

Definition of Management by famous personalities-

According to F.W Taylor,Management is the art of knowing what you want to do and them seeing that they do it in the best and the cheapest way.

According to Henri Fayol,Management means to manage,to forecast,to plan, to organize, to command, to coordinate and to control . Fayol gave this definition of management in his book named “Industrial and General Administration”. 

According to Harold Koontz,Management is the art of getting things done through and with people in formally organized groups.

According to R.C Davis, Management is the function of executive leadership. Managerial functions involve the work of planning, organizing and controlling the activities of others in accomplishing the organizations objectives.

According to TC.M. Bartol and D.C Martin, Management is the process of achieving organizational goal by engaging in the major functions of planning, organizing, leading and controlling.

According to Lawrence A Appley, Management is the development of people and not the direction of things.

On the basis of definition discussed above, we may regard management as a distinct process. At most fundamental level management is a discipline that consists of five general functions they are planning, organizing, staffing, leading and controlling. These five functions are a part of body of practice and theories on how to be a successful manager.

Function of Management

 

1. PLANNING– The planning function of management takes into account of defining goals, establishing strategies and making plans to coordinate activities in the field of business. It firstly involve an analysis of the current situation , setting objective, anticipating a future, deciding about the resources requirement and deciding the activities in which the company will engage itself.

In simple words we can define planning as the first step of management function. Planning meant how to do a work, when to do the work, who will do the work, by whom the work should be done or how to organize the work in a better or attractive way. It meant to decide how one can do their best to achieve goals and profit.

2. ORGANIZING– Organizing is the second function of management. It follows planning. It is the process that refers to the relationship between people, work and resources that is used to achieve the goals.  It primarily puts together human, financial, physical, information, and other resources needed to achieve pre-specified. It is a well defined objective of the business.

3. STAFFING– After the organizing, the function of management is staffing. Every business needs people with the right skills, knowledge, and abilities to fill in that structure. Employee is the most important resource of any organization. A right employee is a very important resource for any company because they can change and ensure the organization future success.

4. DIRECTING– Directing is said to be a process in which the managers instruct, guide and oversee the performance of the workers to achieve predetermined goals. In the field of management, direction is said to be all those activities which are designed to encourage the subordinates to work effectively and efficiently.

5. COORDINATING– Coordinating is the unification, integration, synchronization of the efforts of group members so as to provide unity of action in the pursuit of common goals. It is a hidden force that binds all the other functions of management.

6. REPORTING– Reporting to Management can be defined as an organized method of providing each manager with all the data and only those data which he needs for his decisions, when he needs them and in a form which aids his understanding and stimulates his action.

7. BUDGETING– Budgeting is the process of designing, implementing and operating budgets. It is the managerial process of budget planning and preparation, budgetary control and the related procedures. Budgeting is the highest level of accounting in terms of future which indicates a definite course of action and not merely reporting.

8. CONTROLLING– Controlling is the last step in the management process. The control function helps in identifying under performers and arranging on job training for them. Fix performance standards for non–performing employee. The manager of the organization has to determine whether organizational goals have been met or not. There is a close link in planning and control in the management function process.

 

Scope of Management

Although it is difficult to precisely define the scope of management, yet there we are going to define some points in it:

 

1. Subject Matter of Management– Subject matter of management includes activities like planning, organizing, directing, coordinating and controlling.

2. Functional Areas of Management– It includes Financial Management, Purchasing Management, Personnel Management, Production Management, Transport Management and Maintenance Management. 

• Purchasing Management- Purchasing Management includes tenders for the raw materials, placing orders, entering into contracts and materials control.
• Financial Management – Financial Management includes accounting, budgetary control, quality control, financial planning and managing the overall finances of organization.
• Personnel Management – Personal Management include recruitment, training, promotion, demotion, retirement, termination.
• Transport Management- Transport Management includes packing, warehousing and transportation by rail, road and air. 
• Production Management- Production Management includes production, planning, production control techniques and quality control.
• Maintenance Management – Maintenance Management involves proper care and maintenance of the buildings plant and machinery.

3. Universal Application– The principal of management can be applied to all types of organizations irrespective of the nature of tasks they perform.

4. Management is an Inter Disciplinary approach– For the correct implementation of the management it is important to have knowledge of commerce, economics, sociology, psychology and mathematics.

5. Essentials of Management – The three essential of management are scientific method, human relations and quantitative technique. 

So, that is all for today guys see you in our next blog. If you like our article please doesn’t forget to share with others.

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Grooming Urban.

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