Significance of Management, Management Process and its Functions

 Significance of management

·    Management is a goal-oriented process

·  Management is universal or pervasive

·    Management is multidimensional

·    Management is an ongoing process

·    Management is a group activity

·    Management is a dynamic function

·    Management is an intangible force

Management process 

What is the process?

Process in a systematic way of getting things done

Similarly, management is the process where human resources, material resources are brought together to fulfil the objectives of an organization.   

The management process is fundamentally a process of –

•   Setting goals
•  Leading the execution

Management process comprises these functions: -

• Planning
• Organizing
• Stopping
• Directing
• Coordinating
• Controlling

Functions of management

• Management functions are a series of deeds performed by managers
• Different experts have classified functions of management based on various characteristics
• The most widely accepted functions of management are given by Koontz and O’Donnell that is planning, organizing, staffing, directing, and controlling.

1.    Planning

Process of looking forward (future objectives)

• It helps in determining the course of action to be followed to achieve those organizational goals.
•      Planning is a process that includes thought before doing something, and it is dependent on the manager's mental state.

Steps involved in the planning are: -

• Collecting information
• Fixing the long-range objectives
• Developing policies, procedures, rules
• Evaluate the action patterns
• Finding out the limitations

2.    Organizing

Organizing is associated with effective utilization of the resources like man, machines, materials, and money for achieving the objectives of the organization

The purpose of organizing is to:

·        Guide

·        Direct

·        Arrange

·        Coordinate

·        Control the activities related to production

Steps of organizing:

•  Identifying the work to be performed
• Classifying the work
• Assigning tasks to groups or people
•  Delegating authority and fixing responsibilities

3.    Staffing

• Staffing is a constant and fundamental step in a management process
• After determining the strategies, objectives, programs, policies and procedures, managers select a group of people by evaluating their knowledge and skill to work on the project. This process is called staffing.
• Staffing is key to efficient functions of management
• Without capable personnel, an organization cannot perform the management functions like: -

Ø Planning

Ø Organizing

Ø Controlling; etc.

Activities involve in staffing are:

• Utilize and promotes manpower
• Selecting and recruiting suitable personnel
• Placement of manpower development
• Training and development of employees

4.    Directing

• Directing is a process where managers guide, instruct and oversee the performance of the employees, to achieve the predetermined goals.
• It is the heart of the management process
• If you want to say it succinctly:
• It is providing guidance to the workers to perform to the best of their abilities, capabilities.

Activities that involve the indirection process are: -

• Leadership
• Communication
•  Motivation
• Supervision

5.    Coordinating

·  In every organization, there are departments that perform different types of activities to reach organization goals.

·        It is important that the activities of different departments and the workgroup of the organization are harmonized. This process is called the coordinating function.

·   It ensures the unity of action among workgroups, individuals, and different departments. To attain the corporate aim, all departments must work together.

·        It prevents conflicts and overlapping

·        Unity of the action remains unchanged.

Subfunctions of coordination: -

• Clear explanation of authority responsibility relations
• Unity of command
• Unity of direction
• Effective communication

6.    Controlling

·        Planning is the beginning of the management process. While control is said to be the final stage of the management process.

·        If planning is looking forward, controlling is looking backwards

·        Controlling is a primary target-oriented function of management.

·        It is basically the comparison between actual performance and standard of the company to ensure that the act was correct.

So, every manager should monitor the activities of his subordinates

Also, read about:

• Introduction to Managerial Roles, Skills & Its Levels
• Concept of Management, Theories and Approaches of Management