Management
Definition/ concept
Management is a social process involving responsibility for economical and effective planning and regulation of operation of an enterprise in the fulfillment of given purpose. Management is the process of getting things done with the aim of achieving goals effectively and efficiently. Management aims at guiding their effort towards achieving a common objective.
Features of management
- P- All pervasive
- I- Intangible force
- G-Group goal
- Goes- Goal oriented
- M-Multidimensional
- C-Continuous
- D- Dynamic
PIG Goes MAD – tip to remember
Scope of Management
- Functional areas of business management
- Production management
- Inventory management
- Marketing
- Financial
- Human resource
- Office management
- Transportation management
- Import and export management
- Research and development management
- Accounting management
- Functional areas of non- business Management
- Public utilities
- Education
- Security
- Law
- Technology
- Emerging functional area
- Investment and portfolio
- Small business management
- Wholesale and retail
- Risk
- Marketing research
- Event
- Stress
- Time
Functions of Management
According to lutherguelick, Management has seven function and he coined the term POSDCORB, which generally represents the initials of these seven functions i.e. P stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for Budgeting.But, Planning, Organizing, Staffing, Directing and Controlling are widely recognized functions of management.
Planning
It is future oriented and determine an organizations directions. It is a rational and systematic way of making decisions today that will affect the future of the organization. It is a kind of organized foresight as well as corrective hindsight.
Organizing
Organizing requires a formal structure of authority and the direction and flow of such authority through which work subdivisions are defined, arranged and co-ordinated so that each part
relates to the other part in a united and coherent manner so as to attain the prescribed objectives.
Staffing
Staffing is the function of hiring and retaining a suitable work-force for the enterprise both at managerial as well as non-managerial levels. It involves the process of recruiting, training, developing, compensating and evaluating employees, and maintaining this workforce with proper incentives and motivations. Since the human element is the most vital factor in the process of management, it is important to recruit the right personnel.
Directing
The directing function is concerned with leadership, communication, motivation and supervision so that the employees perform their activities in the most efficient manner possible, in order to achieve the desired goals.
The leadership element involves issuing of instructions and guiding the subordinates about procedures and methods.
The communication must be open both ways so that the information can be passed on to the subordinates and the feedback received from them.
It is very important, since highly motivated people show excellent performance with less direction from superiors.
Controlling
The function of control consists of those activities that are undertaken to ensure that the events do not deviate from the per-arranged plans. The activities consist of establishing standards for work performance, measuring performance and comparing it to these set standards and taking corrective actions as and when needed, to correct any deviations.