In our day to day life we normally hear the word “MANAGEMENT”. What is “Management”? Why this word is widely used in factories, offices, business, homes, gatherings, events and where not!! even for self also this word is used like “self-management”.
What is the importance of this word?
As we know very well that every living thing having sense has its pre-determined ‘Goal’ (herein after it will be called as ‘Goal’). There is no any living thing in this world without ‘Goal’. Like any businessman who start business with a goal to earn profit, also at home the goal is to live good life and have hunger satisfied two times or at least one time in a day. Students have goal to clear the exams with very good marks. So everyone has its pre-determined Goal. Even in journey also we have pre-determined Goal to reach safely at the final destination with either no hassle or with minimum hassle.
Now, the goal is pre-determined but it cannot be achieved by merely thinking about the Goal by sitting idle or built castle in the air. One should work in the direction of achieving the same. The work from pre determination of goal to achieving the pre-determined Goal is called “MANAGEMENT”.
If we take look on the definition of Management by Peter Drucker, who is also known as the Father of Modern Management Theory:
"Management is doing things right; leadership is doing the right things."
The definition itself says that Management is doing the things right; leadership is doing the right things, which means the right thing should not only be done at the bottom or middle level but on the leadership level also the things should be done right. In short all the things at ALL levels should be done right and in right direction it is called Management.
Now, the things are to be done by human beings/living person who is natural having brain and heart which always have feelings, expression which derives mood so nothing can be done right itself on any level. For having the things done rights there should be some trajectories, guideline and frame of some “do” and “do not”.
The following says like this:
“Management is a set of principles relating to the functions of planning, organizing, staffing, leading, directing and controlling, and the application of these principles in harnessing physical, financial, human and informational resources efficiently and effectively to achieve organizational goals”.
As defined in the Oxford dictionary meaning of the word Principle is 'a fundamental basis of a system of thought or belief “. So, management is a fundamental basis of a system of thought to do any work toward successfully achieving the pre-determined goal.
For successfully achieving the predetermined goal the management will work through its following main functions:
Planning means what to work and how to work for achieving the predetermined Goal of the business. In planning all the related things are to be considered.
Let’s take an example for understanding planning:
A Ltd. established a Motored Bike manufacturing business. The Goal with which the Company is established is to sale 50000 Bikes in 2017-18 and to earn profit for Rs.125 crore. The Company had taken proper steps to achieve its Goal. However, the Company Could sales 40000 Bikes till 31.3.2018 and earned profit Rs.100 crore. In the next year 2018-19 the Company set it Goal to sale 60000 bike and to earn profit Rs.180 crore. Here, the Company has increased its Goal in selling of numbers of Bike and quantum of profit also. So the Company needs to produce more numbers of Bike then the last year and for that the Company will require more raw materials like iron, fiber, lather, plastics, color and other inputs which are used in manufacturing of a Bike. At the same time the Company also required labore, machine hours, electricity and fuel in other word the Company will be in need of all the things by which it can increase its production from 50000 bikes to 60000 bikes. This is a production side planning but after producing the bike they should be sold up to 31.3.2019 to achieve the predetermined Goal of the Business.
For selling of the 60000 Bikes the Company is required to find out more buyers by intensifying marketing, advertising etc. For that the Company may be in need of marketing staff, logistics will also be required more to transport the Bike to various depots/dealer or show rooms as the case may be from the place of production. At the same tie the Company will be in need of Working Capital pay off all the expenses and salaries and due of the additional staff to be recruited.
So the planning is required in all the areas from Production to Marketing and Faineance up to logistics.
Planning is a continuous process it should be reviewed at a reasonable interval say every 15 days or month to consider changes taken place between the date of making planning and the date of review so that at any time clear picture can be on hand because planning is made considering the future in present time and future is unpredictable. So when the present time passes in the past and future comes and becomes present, with that everything is changed which creates deviation in the planning so, to make fit the planning it becomes necessary to make change in the planning made in the past according to the situation changed and for this purpose review at the reasonable interval is necessary.
After the planning process, the function of each and every requisite department is finalized and allocated. It is required to unite the each and every requisite department in one thread so that harmony in each department can be established and work can be done smoothly and fast. This process is called ‘Organizing’.
After organizing the next step is Staffing. According to planning function (Work) of each department is finalized and allocated under the organizing process but at the same time it is required to see the department to which work is allocated as per planning is having sufficient staff? Does the staff is having proper working knowledge and are they dedicated to work? if not the planning may be resulted in futile. Because if the department does not have sufficient staff there will be delay in work and the quality of work will be deteriorated. At the same time if the department is having sufficient staff but there is a lack of knowledge or no dedication to the work it will delay the work and also effect quality of the work. So it is required to see that there should be right person at right job.
At the same time, it is also to be seen that there should not be excess staffing which will affect profitability of the Business.
Leading is the next step after Staffing. Leading means top authority of the department/s and of the Business. In a big size of business the top of the business he/she may or may not be the owner of the business. It is not possible for the top of the business to look after the entire business so that he/she divides the business in functions/departments and appoint head of each function/department who will be responsible for the particular function/department. The top of the department is supposed to be well versed about the working of the department to which he/she leads. At the same time he/she should have capability to analyzing the situation, to work independently and to take decision. He/she should be capable to motivate, direct, guide the staff members to accomplish the task of department in the given time frame and directed ways.
After leading Directing is the next step. In which the instruction, guidance is given to the staff members and performance of the staff members is also overseen. Directing is most vital function of the management because, in directing instruction and guidance is given by the top authority after overseeing the performance of the staff members that how the work or task should be done or how the top authority wants to have the particular task be done by the department in order to achieve the pre-determined Goal.
Controlling is the sixth and last step in the Management process. Controlling means to set standard of performance for achieving the Goal to measure the actual performance with the standard set and see the deviation and to take corrective action for removing the deviations to bring the actual performance to the standard performance and thereby to achieve the pre-determined goal.
So, Management is most important in all fields.