Why Management Is Important For Business Business Flashcard
- DEFINE MANAGEMENT?
- WHY MANAGEMENT IS IMPORTANT FOR A BUSINESS?
- Achieving Company Targets
- Decrease In Wastage
- Simplifies The Organizational Structure
- Additions Stability
- Provides The “ Feel Good Factor ” A
- Net incomes Galore
- THE NATURE OF MANAGEMENT
- Nature of direction can be described as follows.
- Continuous Procedure:
- Universal in Nature:
- Management is a group activity:
- Management is end oriented:
- Moral forces:
- System of authorization:
- Management is an art:
- Management is Science:
- FUNCTIONS OF MANAGEMENT:
- Explain THE PANNING PROCESS WITH EXAMPLES
- Explain THE DIFFERENCE BETWEEN MANAGERS AND LEADERS
- HERZBERG MOTIVATION THEORY
Traditionally, the term “ direction ” refers to the activities ( and frequently the group of people ) involved in the four general maps: planning, forming, taking and coordinating of resources. Note that the four maps recur throughout the organisation and are extremely incorporate. Emerging tendencies in direction include averments that taking is different than pull offing and that the nature of how the four maps is carried out must alter to suit a “ new paradigm ” in direction. This subject in the aid the reader to carry through a wide apprehension of direction and the countries of cognition and accomplishments required to transport out the major maps of direction.
Harmonizing to ( Management Innovations, 2008 ) “ direction is the procedure of making organisational ends by working with and through people and other organisational resources ” .A
Management has the following 3 features:
It is a procedure or series of go oning and related activities.
It involves and concentrates on making organisational ends.
It reaches these ends by working with and through people and other organisational resources.
In add-on, Management brings together all Six Ms i.e. Men and Women, Money, Machines, Materials, Methods and Markets. They use these resources for accomplishing the aims of the organisation such as high gross revenues, maximal net incomes, concern enlargement, etc.
WHY MANAGEMENT IS IMPORTANT FOR A BUSINESS?
All of us have seen, heard, worked under or been portion of a direction one clip or other. But have you of all time wondered what makes direction such an built-in portion of any activity? The roots of the word ‘management ‘ can be traced back to the Latin word ‘manu agree ‘ , which means ‘to lead by manus ‘ . This shows that an effectual direction is one which really guides the employee onto a way of efficient and productive work, while taking by illustration. Thus we can safely reason that a good director will non inquire employees to make something that he/she may non make himself/herself. In true sense, effectual direction involves directing and forming people or resources under one ‘s influence, to guarantee better co-ordination, productiveness and best possible positive end product in any field. Whether it is a remarkable individual pull offing at a little graduated table or multiple individuals involved in big scale operations, the overall impact of good direction is ever the same, that of exponential net income.
Let ‘s expression at some key points which make direction of import to any procedure.
Achieving Company Targets
Help your front line trade with monetary value expostulations.
Increase your mean order value.
Know your clients.
Be concern intelligent.
Focus on your bing clients.
Re-generate the histories that have stopped trading with you.
Target profitable new concern
When a company begins its operations, specific ends are setup which can merely be achieved if all the parts of the organisation map together and expeditiously. Proper direction makes certain that each portion of the company works towards accomplishing a common end without confusion. Management really plans, executes and balances the resources of a company in such a manner that there is maximal work end product to achieve the ends of organisation fleetly, while retaining work quality. In absence of proper direction, different subdivisions go on to achieve single marks. However, common end may non be achieved, which would farther take to holds, losingss and low quality end product.
Decrease In Wastage
When resources of a company are efficaciously managed, wastage is reduced, thereby take downing overall costs and achieving the province of ‘resource optimisation ‘ . This means that company is doing net incomes non merely from end product, but besides from better and optimal usage of input. Proper use of resources and decreased wastage prevents both under employment and development of resources. Management can place resources which are scarce and find options for the same, therefore cut downing the cost once more.
Simplifies The Organizational Structure
Management controls effectual work division, specialisation and resource allotment. This creates a unvarying flow of work and specifies boundaries of duties, authorization and rights, which do non overlap. This construction is necessary, as it clarifies to each employee his place and field of influence in the organisation. In such a scenario, every employee would cognize his/her basic rights, responsibilities, immediate higher-ups and subsidiaries, along with the cognition of chances expecting him, as his relation with the company grows.
The company should be maintained in such a manner that external market turbulencies do non halter the company ‘s operation. This requires effectual alterations that need to be made in the company, without aching the company ‘s base or its workers excessively much. Without proper direction this will non be possible. Management will supply increased stableness and adaptability to the company, assisting it survive market conditions and turn with clip. Besides, the workers would non be discerning about losing their occupation, which would, in bend, assist them work with peace of head.
Provides The “ Feel Good Factor ” A
It is highly of import to maintain the workers happy for the successful operation of the company. A company which is managed with efficaciousness prospers quickly and, in bend, produces better gross, thereby opening avenues of growing for the workers involved. The upward ascent in the growing chart assures the work force of non merely better wages, but better places, which provides motive for better work.A A
Net incomes Galore
This is a cumulative consequence of all of the benefits mentioned above. Proper direction helpsA to construct efficient organisational construction, set marks that are proving yet accomplishable and optimize resource use. Such a scenario increases net incomes by maximising productiveness and cut downing costs. Happy and de-stressed workers work with more ardor and enthusiasm. This increases quality and measure of end product, which aids in the growing of the company, crushing competition and emerging out winning!
THE NATURE OF MANAGEMENT
The basic intent of direction in an organisation is to clearly state those individuals who work for the organisation what they have to make and when and to guarantee that they can and make it.
It hence needs direction to look after staff in all sorts of maps functioning the organisation such as concern scheme, catching, accounting, investing, jurisprudence, research, methodological analysis, enlisting, safety, disposal, public dealingss, stockholder dealingss and so on every bit good as the cardinal maps of selling the company ‘s merchandises or services and presenting these harmonizing to agreed contract footings.
Nature of direction can be described as follows.
Management is a ne’er stoping procedure. It will stay the portion of organisation till the organisation itself exists. Management is an ageless procedure as past determinations ever carry their impact for the future class of action.
Universal in Nature:
Management is cosmopolitan in nature i.e. it exists everyplace in universe wherever there is a human activity. The basic rules of direction can be applied anyplace whether they are concern or non-business organisation.
Example: planning, forming, staffing, directing and commanding efficaciously and accomplish the coveted consequence.
Management is fundamentally multidisciplinary. Though direction has developed as a separate subject it draws cognition and constructs of assorted other watercourses like sociology, psychological science, economic sciences, statistics etc. Management links thoughts and constructs of all these subjects and uses them for good-self of the organisation.
Management is a group activity:
Management is a critical portion of group activity. As no person can fulfill all his demands himself, he unites with his colleagues and work together as an organized group to accomplish what he can non accomplish separately.
Management is end oriented:
Management is a end oriented activity. It works to accomplish some preset aims or ends which may be economic or societal.
Management is dynamic in nature i.e. techniques to pull off concern alterations itself over a period of clip.
Authority is power to acquire the work done by others and oblige them to work consistently. Management can non execute in absence of authorization. Authority and duty depends upon place of director in organisation.
Management is an art:
Management is considered every bit art as both requires accomplishments, cognition, experience and creativeness for accomplishment of coveted consequences.
Management is Science:
Management is considered as scientific discipline. Science tells about the causes and effects of applications and is based on some specific rules and processs. Management besides uses some rules and specific methods. These are formed by uninterrupted observations.
FUNCTIONS OF MANAGEMENT:
The 4 basic direction maps that make up the direction procedure are described in the undermentioned subdivisions:
Planing involves taking undertakings that must be performed to achieve organisational ends, sketching how the undertakings must be performed, and bespeaking when they should be performed.
Planing activity focuses on achieving ends. Directors outline precisely what organisations should make to be successful. Planning is concerned with the success of the organisation in the short term every bit good as in the long term ( Rothbauer-Wanish, 2009 ) .
For illustration, a director of a new local eating house will necessitate to hold a selling program, a hiring program and a gross revenues program.
Forming can be thought of as delegating the undertakings developed in the planning phases, to assorted persons or groups within the organisation. Organizing is to make a mechanism to set programs into action.
Peoples within the organisation are given work assignments that contribute to the company ‘s ends. Undertakings are organized so that the end product of each person contributes to the success of sections, which, in bend, contributes to the success of divisions, which finally contributes to the success of the organisation.
Influencing is besides referred to as motivation, taking or directing. Influencing can be defined as steering the activities of organisation members in the way that helps the organisation move towards the fulfilment of the ends.
The intent of influencing is to increase productiveness. Human-oriented work state of affairss normally generate higher degrees of production over the long term than do task oriented work state of affairss because people find the latter type distasteful.
It includes verifying the existent executing against the programs to guarantee that executing is being done in conformity with the programs.
It measures existent public presentation against the programs.
It sets criterions or norms of public presentation.
It measures the effectual and efficiency of executing against these criterions and the programs.
It sporadically reviews, evaluates and proctors the public presentation.
If the spreads are found between executing degrees and the programs, commanding map involves suited disciplinary actions to hasten the executing to fit up with the programs or in certain fortunes make up one’s minding to do alterations in the programs.
For illustration, if the company has a end of increasing gross revenues by 5 % over the following two months, the director may look into the advancement toward the end at the terminal of month one. An effectual director will portion this information with his or her employees. This builds trust and a feeling of engagement for the employees.
Explain THE PANNING PROCESS WITH EXAMPLES
Planning is the first and most of import map of the direction. It is needed at every degree of the direction. In the absence of be aftering all the concern activities of the organisation will go meaningless. The importance of planning has increased all the more in position of the increasing size of organisations. In the absence of planning, it may non be impossible but surely hard to think the unsure events of hereafter.
When we look at planning in the context of direction procedure, it is called activity ; it is being a portion of direction. But on the other manus, when it is studied individually it is called a procedure because to finish one has to unclutter many stairss one after the other. So far as the figure of stairss included in the planning procedure is concerned it depends on the size of the organisation. Different organisation can hold different be aftering procedure. The undermentioned stairss are by and large taken in the concern organisation during the planning procedure ( Management, 2010 ) .
Puting the aims ;
Aims are those end points for whose attainment all the activities are taken. In the planning procedure aims are determined and defined foremost of all so that all the employees concerned can be informed about them to acquire their complete cooperation. Aims have a hierarchy of their ain organisational aims, departmental aims, and single aims.
Developing the premises: the footing of planning is those factors which influence the possible consequences of different options. Before taking a concluding determination about any alternate a prognosis of this premise is made. The rate of success of planning will be in direct proportion to the rate of the success of prediction. The premise of planning is two types:
Internal premises: capital, labour, natural stuff, machinery etc.
External premises ; Government policies, concern competition, gustatory sensation of client rate of revenue enhancements. etc.
Identifying alternate class of action: By and large, there is no work which has no alternate method of making it. On the footing of the aims of the organisation and restrictions of planning, alternate class of making a peculiar work can be discovered.
Measuring alternate classs: All those alternate classs which are up to the outlooks of the minimal preminary standards are selected for intensive survey. It will be seen as to what extent a peculiar alternate class can assist in the attainment of the aims of the organisations. There is nevertheless, one job which confronts us while analysing these alternate classs. Every options class has its virtues and demerits.
Choosing an option: alternative a careful analysis of different options the best 1 is selected. Sometimes the analysis yields more than one alternate class with similar virtues.
Implementing the program: After holding decided the chef program and the subordinate programs, they are to be implemented. After implementing the programs the sequence of different activities has to be decided. In other words, it is decided as to who will make a peculiar occupation and at what clip.
Follow up Action: the procedure of planning does non stop with the execution of programs. Plans are formulated for future which is unsure. It is of great importance that there is a changeless reappraisal of programs so as to guarantee success in the unsure hereafter. The minute at that place appears to be alterations in the programs besides. In this manner we can state planning is continuously traveling procedure.
Explain THE DIFFERENCE BETWEEN MANAGERS AND LEADERS
The difference between leader and director can be summarized this manner: “ When you are a leader, you work from the bosom. As a director, you work from the caput. ” Although it is likely more complex than that, the point to retrieve is the difference between what you do as a leader and what you do as a manager-and the changeless demand to be able to make both. Furthermore, the caput and bosom demand to be spouses, non independent operators.
A director focuses attending on efficiency, effectivity, and doing certain the right things happen at the right clip. For case: You are in a director function when you set public presentation aims with staff, prepare budgets, reexamine hard currency flow projections, develop action programs, and evaluate plans or fund elevation schemes or any other facet of the company. Managing may besides include making 100s of other undertakings that require focussed and logical attending to the good wellness of the organisation.
On the other manus, a leader is a strategian, a airy, and some-one who inspire others to greatness. For illustration, you are taking when you portion your vision for your organisation, or when you bring staff and people together to plan a plan or develop a scheme or decide a job. Leaderships motivate staff and people, serve as function theoretical accounts, inspire people to collaborate, construct community and capacity indoors and outside the organisation, and make learning environments in which people can turn and develop themselves without fright.
Leaderships follow their ain intuition which may in bend be more benefit to the company. Their Followings are frequently more loyal to them. Directors do things by the book and follow company policy. Their Subordinates may or may non be loyal to them. A Leader in practical footings motivates others to make the undertaking. A Manager in concern footings ensures undertakings are done through others ( Jones, 2013 ) .
Some people think of the words Manager and Leader and think they are the same. The two are related, but the occupations are different. They might look the same, but do n’t intend the same. Both Manager and Leader have different duties in an organisation. Leader will act upon and put illustration for others to follow, this is called “ do as I do, and Manager is make what I say ” . In existent life, some Managers possess leading qualities and some Leaders possess some managerial qualities. Directors and Leaderships are two different sorts of characters. It ‘s non easy to see the difference because the qualities of Directors and Leaderships are each combined in the same individual ( sundayma, 2012 ) .
But if 1s observe the qualities in each individual, one will cognize that Leaders and Managers are different because Manage tends to pull off the work and regulations, and Leaderships deal with personal issues of people, and besides know that a Leader does non hold subsidiaries, a leader has followings. Sometimes societies and organisations need either a director or a leader, or sometimes they need both directors and leaders. Their motives, personal history, their manner of thought and attitude are different.
In short we can state,
– The director administers ; the leader innovates.
– The director is a transcript ; the leader is an original.
– The director maintains ; the leader develops.
– The director focuses on systems and construction ; the leader focuses on people.
– The director relies on control ; the leader inspires trust.
– The director has a short-range position ; the leader has a long-range position.
– The director asks how and when ; the leader asks what and why.
– The director has his or her oculus ever on the bottom line ; the leader ‘s oculus is on the skyline.
– The director imitates ; the leader originates.
– The director accepts the position quo ; the leader challenges it.
– The director is the authoritative good soldier ; the leader is his or her ain individual.
– The director does things right ; the leader does the right thing.
HERZBERG MOTIVATION THEORY
Herzberg classified these occupation factors into two categories-
Hygiene factors- Hygiene factors are those occupation factors which are indispensable for being of motive at workplace. These do non take to positive satisfaction for long-run. But if these factors are absent / if these factors are non-existent at workplace, so they lead to dissatisfaction. In other words, hygiene factors are those factors which when adequate/reasonable in a occupation, lenify the employees and do non do them dissatisfied. Hygiene factors include:
Pay – The wage or salary construction should be appropriate and sensible. It must be equal and competitory to those in the same industry in the same sphere.
Company Policies and administrative policies – The company policies should non be excessively stiff. They should be just and clear. It should include flexible on the job hours, frock codification, interruptions, holiday, etc.
Fringe benefits – The employees should be offered wellness attention programs ( mediclaim ) , benefits for the household members, employee aid plans, etc.
Physical Working conditions – The on the job conditions should be safe, clean and hygienic. The work equipment ‘s should be updated and well-maintained.
Status – The employees ‘ position within the organisation should be familiar and retained.
Interpersonal dealingss – The relationship of the employees with his equals, higher-ups and subsidiaries should be appropriate and acceptable. There should be no struggle or humiliation element nowadays.
Job Security – The organisation must supply occupation security to the employees.
Harmonizing to Herzberg, the hygiene factors can non be regarded as incentives. The motivational factors yield positive satisfaction. These factors are built-in to work. These factors motivate the employees for a superior public presentation. These factors are called satisfiers. These are factors involved in executing the occupation. Employees find these factors per se honoring. The incentives symbolized the psychological demands that were perceived as an extra benefit ( Herzberg ‘s Two-Factor Theory of Motivation, 2012 ) . Motivational factors include:
Recognition – The employees should be praised and recognized for their achievements by the directors.
Sense of accomplishment – The employees must hold a sense of accomplishment. This depends on the occupation. There must be a fruit of some kind in the occupation.
Growth and promotional chances – There must be growing and promotion chances in an organisation to actuate the employees to execute good.
Responsibility – The employees must keep themselves responsible for the work. The directors should give them ownership of the work. They should minimise control but retain answerability.
Meaningfulness of the work – The work itself should be meaningful, interesting and disputing for the employee to execute and to acquire motivated.
In short, Herzberg theorized that employees must be motivated to see occupation satisfaction but that unacceptable working conditions can merely ensue in a deficiency of satisfaction. The informations analyzed for the survey reported here indicate Extension agents left the organisation forA both grounds: deficiency of occupation satisfaction and occupation dissatisfaction ( Herzberg, 1968 ) . The presence ofA sufficient care factors prevents employment discontent, whereas equal incentives may direct occupational contentment ( Mausner, & A ; Snyderman, 1959 ) .
When salary occurred as factor in the depressions ( causes of dissatisfaction ) it revolved around the unfairness of the pay system within the organisation… It was the system of salary disposal that was being described… it besides concerned an promotion that was non accompanied by a salary addition. In contrast to this, wage was mentioned in the high narratives ( events doing satisfaction ) as something that Herzberg ‘s Theory of Motivation went along with a individual ‘s accomplishment on the occupation. It was a signifier of acknowledgment ; occupation satisfaction meant more than money ; it meant a occupation good done ; it meant that the person was come oning in his work ( Herzberg, 1968 )
Management is the integrating and co-ordination of resources in order to travel efficaciously towards desired aims. All organisations have some missions that include their grounds for being. To be effectual, organisations must hold marks, aims towards which directors hope to travel. Directors influence all the stages of modern organizations.A Gross saless Managers maintain a gross revenues force that markets goods. Personnel directors provide organisations with a competent and productive work force. Plant directors run fabricating operations that produce the apparels we wear, the nutrient we eat, and the cars we drive.
In short, all societies, whether developed or developing, need a immense batch of good directors.