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What’s it: Management refers to a series of activities or functions to efficiently and effectively allocate and direct resources towards company goals. It includes planning, decision making, organizing, leading, and controlling. In this definition, we are talking about management as a process.
Another aspect is management as people. In this case, management refers to those in strategic positions to make decisions. They include company executives, such as directors and managers, which have the power and responsibility to make decisions, delegate tasks, and supervise the company.
Managers are those who manage the company. They play various roles within the company, an interpersonal role, an information role, and a decision-making role. Day-to-day management duties include
- Detecting problems and making decisions about how to deal with them,
- Implementing a series of actions,
- Reviewing decisions and actions and
- Making the necessary changes.
Management functions
According to Henri Fayol, management has five main functions: planning, organizing, leadership, staffing, and controlling.
Planning
Planning is the foundation for other functions as it provides direction for the company. Management determines company goals. They also identify strategies, policies, and methods to achieve these goals. The planning function is also concerned with anticipating problems even before they arise.
In carrying out this function, management is usually divided into three major groups.
- Top managers, such as the board of directors and the chief executive (CEO) or president director. They make long-term plans, set goals, missions, and company policies. They concentrate on the question of what the company will achieve.
- Middle managers, such as department heads, division heads, branch managers, and regional managers. They implement the company’s mission and policy objectives, as directed by top managers. They focus on the question of where and when the company’s mission and goals are implemented.
- Line managers (lower managers), such as supervisors and front line team leaders. They implement direction from middle management with specific plans about who and how the mission and objectives are implemented. They supervise and provide direction to subordinates about the specific tasks they have to do and complete.
Organizing
This function refers to the process of empowering and structuring resources to achieve company goals. In particular, organizing deals with three fundamental activities:
- Develop assignments. Managers determine the appropriate actions be taken to implement plans and achieve goals.
- Build work units. Managers must divide the personnel into teams with their respective responsibilities.
- Develop unit positions. Managers delegate authority and responsibility to individuals. They also make decisions, including to synergize various functions within the company. Generally, delegation is based on a functional approach, such as finance, operations, and marketing.
Staffing
This function includes activities related to finding and maintaining adequate human resources to meet company goals. To do so, managers must determine precisely the requirements of the workforce. Once identified, they then try to recruit the required workforce.
Apart from recruitment, other functions of staffing are:
- Training staff to be more skilled and productive
- Developing compensation and performance evaluation methods that fit the goals, including designing salary and benefits packages, performance appraisals, and employee promotions.
- Establishing an employee dismissal system.
Leadership
Leadership refers to the act of guiding and influencing others to achieve goals. Leadership requires communication and motivation skills.
The four main tasks of leadership are:
- Educating. It includes teaching skills and showing workers how to function within the company and do tasks appropriately.
- Evaluating. This responsibility includes resolving disputes, creating and enforcing standards and policies, evaluating results, and providing rewards.
- Counseling. This includes giving advice, helping workers solve problems, asking for feedback from subordinates, and listening to employee input or problems.
- Representative. Managers lead through representation by voicing the concerns and suggestions of their subordinates to higher authorities. They must demonstrate a willingness to support workers and represent their needs and goals.
Controlling
This function includes activities for measuring and evaluating results, organizing, and staffing.
Controlling is an integral part of management for the following reasons:
- Control helps managers determine the success of other functions, such as planning, organizing, and so on.
- It helps to guide employee efforts towards company goals.
- It helps companies to distribute resources efficiently and effectively.
Control is usually viewed as an ongoing management process. It ensures the company moves towards its goals. The process includes setting performance standards, evaluating ongoing activities, and correcting deviations.
