Definition of Management
What is Management?
Overview of Management Structure
- Management operates within an organizational structure, positioned at the top, overseeing all other functions.
- Leadership serves as the foundational element of this structure, permeating throughout the organization.
Functions of Management
- Managers allocate various resources—human, financial, physical, and informational—through four primary functions: planning, organizing, leading, and controlling.
Planning
- An example of planning includes creating a budget that acts as a control mechanism for the organization.
Organizing
- Organizing involves structuring human resources into an organizational chart to clarify roles and responsibilities.
Leading
- Leading is about influencing others to achieve goals set during the planning phase.
Controlling
- Controlling entails comparing actual figures against budgeted amounts and making necessary adjustments to stay on track.
Interrelationships Among Functions
- The interlocking circles around each function illustrate their interdependencies; effective management requires seamless integration among these functions.
Achieving Competitive Advantage
- Performing management functions efficiently leads to competitive advantages that help in achieving organizational goals.