Management is the process that aims to control and regulate the affairs of an organisation, regardless of its size, structure, nature and type. It is an activity that aims to generate and manage such an environment in the organisation within which the members can coordinate and achieve the organisational objectives more economically and efficiently.
In this definition, two phrases are particularly significant when explaining any management’s goals.
- Coordination of collective effort.
- Achievement of a common objective.
Accordingly, management concerns itself with the optimal utilisation of 5Ms, that is, machine, material, men, methods and money.
- Management is the process of planning, organizing, directing, and controlling resources to achieve organizational goals.
- Effective management involves leading and motivating employees, making decisions, and solving problems.
- Management can be applied to various fields such as business, education, healthcare, and government.
Principles of Management
According to Luther Gullick and Lyndall Urwick, there are seven principles or functions of management. These seven principles have been summarised using an acronym called ‘POSDCORB.’ These seven principles or processes include:
- Planning: It refers to chalking out a broad outline of what needs to be done and the techniques and methods of doing those things to fulfil the objectives of the concerned organisation.
- Organising: It entails establishing a formal structure of authority entrusted with the responsibility to arrange, define and coordinate the work sub-divisions of an organisation to achieve chalked-out organisational goals.
- Staffing: It entails hiring suitable job candidates, providing adequate training to the new staff and setting out a favourable work environment.
- Directing is a continuous process of making and implementing decisions through general and specific instructions and orders. In short, it entails serving as a guide for the organisation.
- Coordinating: The most critical duty is to bring various enterprise functions in tune with each other.
- Reporting: It entails keeping oneself and one’s co-executives and subordinates informed about the organisation’s operations. The information is presented and circulated through research, records and inspections.
- Budgeting: No organisation or enterprise can take off or operate without budgeting. Accordingly, this function or principle of management entails fiscal accounting, planning and control.
Levels of Management
Three levels of management signify the rank and file of the managers and executives in an organisation.
- Lower-Level Management: Also called operational or functional-level management, mainly comprises supervisors, persons and first-line managers. The managers at this level act as mentors for the employees.
- Middle-Level Management: It mainly comprises the departmental and division heads and managers who implement the company plans and policies and link the top-level managers with the lower-level management.
- Top-Level Management: It is the highest level in the hierarchy of an organisation and comprises managers like chief executives and the board of directors. These people are concerned with formulating an enterprise’s objectives, plans and policies.
Advantages of Management
An organisation is benefitted by its management in the following ways:
- Management helps in establishing the coordination of activities in an organisation.
- It ensures the timely achievement of organisational goals.
- It prevents the wastage of organisational resources.
- It enables the organisation to achieve some extent of self-control.
- It helps in increasing the overall productivity of the organisation.
Disadvantages of Management
Despite its several advantages, management is not without its share of limitations.
- It creates a rigid hierarchical structure that makes specific organisational procedures too tedious and lengthy.
- The hierarchical relationship between the managers and the workers prevents the possibility of a joint effort in setting goals.
Last Updated : 11 June, 2023
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.