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Introduction to Management

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  • Last Updated : 13 Jun, 2022

The concept of Management involves planning and organizing different activities of an organization in order to accomplish its goals. Proper business management of an organization requires using a firm’s resources in the best possible manner to ensure efficiency and effectiveness in the organization. The basic functions of business management include planning, organizing, directing, staffing, and controlling. 

Characteristics of Management:

1. Continuous Process: Business Management or Management is a continuous process. It means that the process of business management goes on until the company exists, as it helps in achieving the organizational goals. Every manager of an organization has to perform the different functions of management in a series.

2. Goal-oriented: Every organization has a set of predetermined goals or objectives that it aims to accomplish during its existence. Every organization has different goals. Hence, business management helps these organizations in fulfilling their goals by utilizing the given limited resources in the best optimum manner.

3. All Pervasive: The process of business management is universal in nature. Every organization, whether small scale, large scale, economic, social, etc., uses the process of management at every level or stage.

4. Multidimensional: Business management is a multidimensional process. The three main dimensions of management are people, work and operations. 

5. Management of People: People or human labour is the main asset of every organization, and their management is crucial for its managers. 

6. Management of Work: Every organization has to perform some work to accomplish its pre-determined organizational goals. 

7. Management of Operations: Every organization is involved in either manufacturing or selling of services or goods. Management of operations deals with activities involved in this process.

8. Dynamic Function: There are different internal and external factors that affect the working of an organization. An organization has to change and adapt itself on the basis of changing environment to accomplish the organizational goals and objectives. Hence, business management is a dynamic function.

Coordination is the essence of management. It helps in synchronizing the different activities of all departments and functions of management. The managers at each level of the organization have to ensure proper coordination for better results and accomplishment of organizational goals. 

Objectives of Management:

1. Social Objectives: Every organization has a social responsibility to fulfill during its existence. Some of the social obligations of an organization include implementing environment friendly practices in the production process, providing basic amenities to employees such as healthcare, education, etc., and providing the unprivileged sections of the society with employment opportunities.

2. Organizational Objectives: With the help of management, every organization sets and achieve organizational goals. The three major organizational objectives are survival, profit, and growth. 

3. Survival: One of the basic objectives of every organization is survival. It does so by making positive decisions for the organization with the help of the business management process.

4. Profit: Survival is not enough for an organization; it has to earn profits to grow and expand in the future. Hence, every organization has to ensure its profit so that it can cover its costs and risks.

5. Growth: Besides earning a profit, an organization has to grow in order to remain in the industry. For this purpose, the management of an organization has to exploit its resources effectively and efficiently.

6. Personnel Objectives: As discussed earlier, people are the main asset of an organization having different goals, backgrounds and personalities. It is the duty of the managers to ensure that the personnel objectives are aligned with the organizational objectives.

Importance of Management:

1. Increases Efficiency: The business management process of an organization increases its efficiency by reducing cost and increasing productivity by utilization of the available resources in the best possible and optimum way.

2. Helps in Achieving Group Goals: Effective management process creates teamwork and builds coordination among the members of an organization. The managers provide a common path or direction to their employees for the accomplishment of the overall objectives of the organization.

3. Creates a Dynamic Organization: Every organization works in a changing environment. The managers of an organization have to help its members adapt to the changing environment. It helps the managers ensure the survival and growth of the organization.

4. Development of Society: Management helps an organization produce good quality products, adopt new technologies, and provide employment opportunities to the weaker sections of society. These activities ultimately help an organization in the development of society.

5. Helps in Achieving Personal Objectives: Every individual or employee of an organization has different objectives or goals they wish to accomplish while doing their jobs. Management helps these employees in fulfilling their personal objectives along with the organizational objectives.

Functions of Management:

1. Planning: 

Planning means deciding in advance what to do, how to do, when to do, and who is going to do. In simple terms, planning means setting up goals, deciding the course of action, timeline of the work, etc., in advance for the success and growth of an organization. It is the first step in the process of management, and every other function of business management depends upon the planning function. For effective planning, an organization has to analyze the external and internal environment, formulate plans, forecast the future, and decision-making process. 

For example, setting up the sales target for the organization, formulating rules and regulations for the employees and the firm, etc.

2. Organizing: 

The second function of management is organizing. It involves assigning duties, grouping different tasks, and establishing authority and responsibility. Proper organizing in an organization ensures its success by providing the course of action. According to the nature of the work of an organization, different firms require different kinds of organizational structures. In simple terms, organizing means dividing a whole task into small units of work, and then distributing them along with authority and responsibility. \

For example, the top managers of an organization can allot different tasks to different departments of the organization. The department heads can then allot the sub-units of the task to different employees based on their designation, qualification, expertise and skills.

3. Staffing: 

Staffing means recruiting the right person for the right job and at the right time. The staffing process of business management involves recruitment, selection, development, appointment and training of employees in an organization. The human resource department of an organization deals with staffing by ensuring that the employee selected for a specific job position has the right qualifications, skills, experience, expertise and abilities. 

For example, In an Ed-tech organisation, the human resource department can look for educational qualifications, like graduation and post-graduation and skills like communication, decision-making, problem-solving and experience for the development of commerce courses as per the requirement of the job position.

4. Directing: 

The work of an organization does not end at staffing. The organization has to guide, supervise, direct, inspire, motivate and instruct the recruited employees. Hence, the process of directing includes taking the required steps to supervise, direct, and motivate employees in achieving the organizational goals, along with their personal objectives. A good leader must use criticism and compliments in such a way that it motivates the employees to work up to their full potential.

For example, Middle-level management can use positive reinforcement or negative reinforcement to motivate the employees in working towards the fulfillment of organizational goals accordingly.

5. Controlling: 

The last function of business management is controlling. It means deciding the standards of organizational performance in advance, measuring the actual results, comparing the standard and actual performance, finding variations and taking required corrective measures. Controlling is a continuous process as an organization has to perform the process until it reaches the desired goals. 

For example, an organization has set the standard sales as 50,000 units. However, the actual sales of the organization are 40,000 units. The variation in the actual and standard performance is 10,000 units. Now, the managers will look for the reasons behind the lack of 10,000 more units and then take corrective actions to attain the standard sales.

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