All company and organizational activities require management, which is the activity of coordinating people’s efforts to reach intended goals and objectives using available resources efficiently and effectively.
Management comprises planning, organizing, staffing, directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources.
Since organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. This view opens the opportunity to ‘manage’ oneself, a prerequisite to attempting to manage others.
An organization (a group of one or more people or entities) or effort is directed, planned, organized, staffed, led, or controlled for the goal of accomplishing something. Human resources are exploited through deployment and manipulation while financial resources, technological resources, and natural resources are considered.
Since organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system.
This view opens the opportunity to ‘manage’ oneself, one’s environment, and one’s relationships.
Management is often included as a factor of production alongside machines, materials, and money. According to the management guru Peter Drucker (1909–2005), the basic task of management includes both marketing and innovation.
In his 1986 book The Effective Executive, Drucker suggested that the main aim of a manager is to make effective decisions. He wrote:
“The first question…is not ‘What needs to be done?’ but ‘What is right for this company at this time?’ This question can be answered only by people who see themselves as responsible for the total performance of their organization and not just for some part of it”
Drucker also argued that the purpose of an organization is to create and keep customers, and that good managers focus on opportunities rather than problems. In his view, the effective executive
“…concentrates on outward opportunity. He does not allow himself to become bogged down in solving the many minor problems that arise in any organization…The effective executive sets priorities. He focuses on the few major areas where superior performance will produce outstanding results for the whole enterprise”
In Management: Tasks, Responsibilities, Practices (1973), Drucker outlined 10 general principles of management, all centering around “the idea of opportunity”:
1. The only valid definition of business purpose is to create a customer.
2. The manager’s primary task is to make money—through investment and through innovation that will result in increased sales or decreased costs.
3. Marketing is the distinguishing, unique function of the business.
4. The economic purpose of any business is to create customers through innovation and marketing.
5. Management must constantly strive for innovation that will create new customers or bring about improvements in product or service.
6. Marketing provides information and plans for action to other parts of the organization so that they can work together efficiently toward common goals.
7. Management has only two essential functions: marketing and entrepreneurship; all others are support activities.
8 In a free-enterprise economy, the organizational structure of the enterprise will be determined by its purpose.
9. Management must think and plan in terms of opportunities rather than problems; it must search for and exploit opportunities.
10. The successful company of the future will have as its only mission creating customers through innovation.
Management is not an easy task, especially in these difficult times. Many companies are struggling to survive, and managers are under immense pressure to make the right decisions. There is a lot of uncertainty, and the stakes are high.
In such an environment, it is even more important to have a clear understanding of the role of management and what it entails. Management is essential for any organization to function effectively and achieve its goals. It is the process of planning, organizing, leading, and controlling resources to
– Achieve organizational goals
– Maximize efficiency
– Maximize effectiveness
Management is a complex process, and there is no one-size-fits-all approach. The best way to manage an organization depends on the specific circumstances and needs of that organization. However, there are some basic principles of management that can be applied in any situation.
The first principle is that the primary purpose of any organization is to create and keep customers. This is the most important thing that a manager can do. If an organization does not have customers, it will not survive.
The second principle is that good managers focus on opportunities rather than problems. In every situation, there are both opportunities and challenges. It is up to the manager to identify the opportunities and take advantage of them.
The third principle is that effective managers make decisions based on what is right for the company, not just what is convenient or easy. They consider the long-term implications of their decisions and act in the best interest of the company.
The success of any firm is dependent on the competence of its managers. Effective executives must make proper judgments and ensure that the company may take advantage of any possibilities that arise. At the same time, good managers safeguard the organization by anticipating and defending against any threats to its health.
It is therefore clear that management is vital to the success of any business. Management can be seen as a paradigm shift from the traditional view of businesses as simple profit-making entities. In the past, businesses were often managed in a very authoritarian way, with managers making all the decisions and employees following orders. However, this approach is no longer effective in today’s business environment.
Nowadays, businesses need to be more agile and responsive to change. This means that managers need to be more open and consultative with their employees. They also need to take a more strategic view of the business, looking at where it needs to be in the future and making sure it has the right resources in place to get there.
In short, management is essential to the success of any business. Without effective managers, businesses will struggle to achieve their goals and may even fail altogether.
There are many different Management styles and theories but a few of the more commonly used ones are:
– Theories X and Y
– contingency theory
– path-goal theory
– Maslow’s hierarchy of needs
– McGregor’s Theory Z
Each Management style or theory has different implications for how a manager should interact with employees and run the business. However, all these theories share one common goal: to ensure that the business is successful. Management is therefore an essential part of any business and should not be overlooked.