BCom Notes Part II Management Importance of Management in modern business organization

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Importance of Management in modern business organization

What is Management? Discuss the importance of Management in modern business organization. OR

“Management is the art of setting things done through and with the people in formally organized groups” Explain this statement.

Introduction

Modern age is an era of management resolution. There was a time when economic development depended mainly on scientific and mechanical inventions. However, in the modern world good management is necessary for efficient and effective working of organization, along with technological advancements.

Meaning of Management

Management is a wide term carrying several meanings, depending in the context in which it is used. Usually, the term management assumes three meanings, when it is used in three different senses as follows:

1. Management as a Noun

When used as a noun, management refers to managerial personnel, i.e. all those persons are concerned with getting things alone, through other people. Such persons are charged with some responsibility and are given some authority – responsibility of executing the policies and programs of an organization, and authority in order to discharge their responsibilities. In this sense, management include the Board of Directions, Chairman and Managing Director, Functional Directors like Marketing Director and Finance Director, General Managers, and First Line Supervisors. The task of such business management is executory and supervisory in nature.

2. Management as a Process

When used as a process, management refers to what the management body or management committee or management council or managers do, or what a manager does. In other words, in this sense, management means the set of functions performed by the managers. These managerial functions broadly include – Planning organizing staffing, directing and controlling. Such functions are performed in order to get things done, through and with other people in an effective and efficient manner. This is why that management has been said to be the ordering and coordinating of functions and of the men fulfilling these functions in order to achieve a given purpose. Henry L. Sisk has also said.

Management is the coordination of all resources through the process of planning, organizing, directing and controlling in order to attain stated objectives.

3. Management as a Discipline (i.e. Subject)

When used in the sense of a discipline or subject, it refers to a branch or body of knowledge and practice is other words, here management means the set of principles, concepts theories and practices as a subject of study for those who intend to be good managers in various areas. Here, the management also denotes a code of conduct for managers and does prescribe the techniques and methods of managing things.

It may be noted that management has also been analyses as an economic resource, a factor of production, a system of authority, a technique of leadership and a means of coordination or decision making.

Simply stated management means getting things done through and with the individuals and groups by effective and efficient use of available resources.