What is Management? | Principles, Levels, Pros and Cons

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 work in coordination with each other and achieve the organisational objectives more economically and efficiently.

In this definition, two phrases are particularly significant when it comes to explaining the goals of any management.

  1. Coordination of collective effort.
  2. Achievement of a common objective.

Accordingly, management as an activity concerns itself with the optimal utilisation of 5Ms, that is, machine, material, men, methods and money.

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:

  1. 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.
  2. 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 for the achievement of chalked out organisational goals.
  3. Staffing: It entails hiring suitable job candidates, providing adequate training to the new staff and set out a favourable work environment.
  4. Directing: It is a continuous process of making decisions and implementing those decisions through the medium of general and specific instructions and orders. In short, it entails serving as a guide for the organisation.
  5. Coordinating: It is the most critical duty of bringing in various functions of the enterprise in tune with each other.
  6. Reporting: It entails keeping oneself and one’s co-executives and subordinates informed about the various operations of the organisation. The information is presented and circulated in the form of researches, records and inspections.
  7. 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

There are primarily three levels of management that signify the rank and file of the managers and executives in an organisation.

  1. Lower-Level Management: Also called operational or functional-level management, it mainly comprises of supervisors, for persons and first-line managers. The managers at this level act as mentors for the employees.
  2. Middle-Level Management: It mainly comprises of 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.
  3. Top-Level Management: It is the highest level in the hierarchy of an organisation and comprises of managers like chief executives and board of directors. These people are concerned with formulating the objectives, plans and policies of an enterprise.

Advantages of Management

An organisation is benefitted by its management in the following ways:

  1. Management helps in establishing coordination of activities in an organisation.
  2. It ensures the timely achievement of organisational goals.
  3. It prevents wastage of organisational resources.
  4. It enables the organisation to achieve some extent of self-control.
  5. 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.

  1. It creates a rigid hierarchical structure in the organisation that makes specific organisational procedures too tedious and lengthy.
  2. The hierarchical relationship between the managers and the workers prevents the possibility of a joint effort in setting goals.


  1. https://www.uoguelph.ca/management/system/files/MGMT%201200%20DE01%20Principles%20of%20Management%20Burga%20F20.pdf
  2. https://books.google.com/books?hl=en&lr=&id=g4oBEAAAQBAJ&oi=fnd&pg=PA1&dq=management+&ots=wYS8DPJbnk&sig=QCmS4pbnBd-0IELONoiLskFpLHc
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