Management is a broad subject, encompassing a number of related disciplines. Management theory is an attempt to understand the nature, function, and application of management theory. It is necessary to differentiate between management and economics. The purpose of this paper is to provide an explanation of the meaning of management and its significance as a career choice. By understanding and analyzing the theory of management, one can develop an understanding of its applicability to the different types of organizations and how management theory can be used to enhance management effectiveness.
Management is an attempt to achieve organizational goals by the controlled use of forces. Managers are typically the individuals in an organization responsible for bringing this about and managing the process through a systematic approach. Management is fluid by nature; therefore, managers change as circumstances dictate. The nature of management is constantly evolving and changing to meet the present and future needs and limitations in an organization. There are two broad approaches to management; namely, cognitive and behavioral.
Management theory pertains to the management practices that influence individuals to take desired actions. It also involves the allocation of resources, the use of those resources, their allocation, their use in action, feedback on performance, rewards and penalties for employees and other persons, recognition, rewards and promotions, and failure or success in achieving goals. All of these practices have practical application in organizations today. However, the theory also encompasses non-linage management practices such as training, development, and motivation. These practices are relevant to organizational goal achievement as well.
A common definition of management is a process whereby individuals are made responsible for achieving specific ends. This definition also includes the key terms good management, manager, and leadership. These three key terms are interdependent and intertwined. They are each part of the management process, while at the same time they are independent.
Organizational structure is a key concept in management. It refers to the various arrangements within an organization to which authority is vested. Examples of arrangements include: planning, organizing, staffing, leading, managing, marketing, selling, production, distribution, financial planning, financial operations, research and development, administration, and ownership. It also covers all of the processes and activities that make up management at any level.
Getting things done is another important aspect of management. In order to get things done, management must define what it is they wish to achieve. Then, they must set up the procedures and mechanisms required to realize that goal. Once management has determined what they want to achieve, it is a relatively simple process to organize their staff, operations, and resources so that they can get things done. A definition of management is thus a descriptive analysis of functions, processes, and priorities directed toward achieving certain aims and objectives.
The management function of planning is to identify and plan for the fulfillment of strategic goals. The management function of ordering is to organize and control the production, handling customer requirements, planning for sales, managing inventory, organizing work and materials, determining appropriate allocation, and making decisions. The management function of creating is concerned with the preparation, organization, management, and development of plans, specifications, resources, and people necessary for the achievement of the plans. The functions concerned with ordering are production, management, and funding. This definition includes not only the broad functions performed by all management functions, but the more specific areas mentioned in the more detailed descriptions below.
One of the major functions of management is planning. The planning function controls or determines the overall direction and course of action of a specific management function or department. The planning function is important because, it, like management itself, is objective in nature. The objective of management is to achieve organizational goals through controlled processes, methods, and people.