What is Management?
Management is the organization and coordination of the activities of a business in order to achieve definite objectives. Management is often included as a factor of production along with machines, materials, and money. According to the management guru Peter Drucker (1909-2005), the basic task of management includes both marketing and innovation. Practice of modern management originates from the 16th century study of low-efficiency and failures of certain enterprises, conducted by the English statesman Sir Thomas More (1478-1535). Management consists of the interlocking functions of creating corporate policy and organizing, planning, controlling, and directing an organization's resources in order to achieve the objectives of that policy. Management is also seen as the directors and managers who have the power and responsibility to make decisions and oversee an enterprise. The size of management can range from one person in a small organization to hundreds or thousands of managers in multinational companies. In large organizations, the board of directors defines the policy which is then carried out by the chief executive officer, or CEO. Some people agree that in order to evaluate a company's current and future worth, the most important factors are the quality and experience of the managers. Management is therefore seen in two different perspective.
1. As the process of dealing with or controlling things or people. 2. It is also defined as the responsibility for and control of a company or similar organization.
THE IMPORTANCE OF MANAGEMENT.
All organizations depend upon group efforts. Group action and joint efforts have become necessary in every walk of life. Management is required wherever two or more people work together to achieve common objectives. The success in group efforts depends upon mutual cooperation among the members of the group. Management creates teamwork and coordination among specialized efforts. Management is indispensable in all organizations whether a business firm, a government, a hospital, a college, a club, etc. Management is a creative force which helps in the optimum utilization of resources. Competent managerial leadership alone can convert the disorganized resources of men, money, materials and machinery into a productive enterprise. In the absence of management, an organization is merely a collection of men, money, materials and machinery. According to Trucker, "management is the dynamic life-giving element in every business. Without it the resources of production remain resources and never become production". Management is the catalyst without which no organization can survive and grow. Management is required to plan, organize, direct and control group efforts. Management provides leadership and motivation to individuals. There is continuous need for management in an organization. As an innovative force, management performs the same role in an organization which brain does in the human body. It is the fundamental coordinating mechanism that underlies organized endeavor. The importance of management has increased tremendously in recent years due to increase in the size and complexity of organizations, turbulent environment and growing responsibilities of business. Sound management helps in maximizing output and minimizing costs. It maintains a dynamic equilibrium between an organization and its ever changing environment. Management is responsible for the creation, survival and growth of organizations. The significance of management in the modern business world has increased tremendously due to the following challenges. (i) Growing size and complexity of business.
(ii) Increasing specialization of work,
(iii) Cut throat competition in the market,
(iv) Growing unionization of labor.
(v) Sophisticated and capital intensive technology,
(vi) Increasing complexity of business decisions,
(vii) Growing regulation of business by the Government,
(viii) Need for...
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