5 KEYS OF MANAGEMENT FOR BUSINESS OWNER

As you, all know that management plays an important role in an organisation. Management is the brain of an enterprise. A manager manages himself in touch with a current environment and provides foresight to the enterprise. He helps in divining what is going to happen in future which will influence the working of the enterprise.

Management is the process of utilization of resources in an effective manner in today’s dynamic environment. Management involves an organised effort to achieve the objective. It is a human activity. It is performed by all the managers at all type of levels. It is a universal phenomenon. It is relevant for all type of organisation.
According to H. Koontz and H. Weihrich,

Management is the process of designing and maintaining an environment in which individuals, working together in a group, efficiently accomplish the selected aims.

The following heads can summarize the 5 keys of management for business:

1. Planning

Planning is the primary key in the management process. It is a process of thinking before doing. It is the most important step in the process of getting results. It focuses on achieving objectives. Thus, planning is goal-oriented. In fact, planning has no meaning unless it contributes to the achievement of predetermined organisational goals. It is the pervasive or universal phenomenon, and it is required in all type organisations, whether small or big. It is an intellectual process involving logical thinking, foresightedness and so on.

Image source: www.adaptiveaction.org

Image source: www.adaptiveaction.org

According to Koontz and O’Donnell,

Planning may be defined as deciding in advance what to do, how to do, when to do and who is to do it. It bridges the gap between where we are and where we want to go. It makes possible for things to occur which would otherwise not happen.

2. Organising

Organising is the second key of the management process. After the objectives and course and make up for action have been determined, the next step is to distribute or allocate the necessary component activities among the members of the group. It aims at combining employees and inter-related tasks in a specific manner so that organisational work is performed in a coordination and all efforts and activities pull together in the direction of the organisational goal. It leads to specialisation, among different departments and workforce of systematic allocation of jobs. It leads to optimum utilisation of resources by eliminating delays in actions, wastage of resources and duplication of activities. It helps in the growth and expansion of an enterprise by adopting changes in an environment.

 Image source: www.axian.com

Image source: www.axian.com

According to Theo Haimann,

Organisation is a process of defining and grouping the activities of the enterprise and establishing the authority and responsibility among them for the achievement of clearly defined objectives.

3. Staffing

Staffing is the third key to the management process. The success of an organisation depends on upon the ability, experience and qualification of its employees. So, the affairs will run smoothly and accurately the role of recruitment and selection is very necessary. For doing this work, the higher has to do Man Power Planning which is also called Human Resource Management (HRM). It is also a part of management process which is concerned with obtaining, utilising and maintaining a satisfactory and satisfied workforce.
Staffing function involves the following activities:
1. Estimating Manpower requirement
2. Recruitment
3. Selection
4. Placement and Orientation
5. Training and Development
6. Performance appraisal
7. Promotion and Career Planning
8. Compensation

Image source: www.slideshare.net

Image source: www.slideshare.net

According to Steve Jobs,

Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. The only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle.

4. Directing

Directing is the fourth key of the management process. It is the process of instructing, guiding, counseling, motivating and leading people in the organisation to achieve its objectives. In business, it initiates actions, giving orders and instructions to the employees. The directing function is performed by all the managers at all the levels to achieve the organisational goals. Every manager, from the top executive to the supervisor, carries out the function of directing. It is an executive function. Directing is that type of managerial function where a manager assuming the role of a leader activates his followers and influence their performance through motivating them, and having supervision over the performance of subordinates so as to ensure their best contribution towards the attainment of common objectives.

Image source: functionsofmanagementvs.blogspot.in

Image source: functionsofmanagementvs.blogspot.in

5. Controlling

Controlling is the fifth key of the management process. It is a process of verifying actual performance with the planned performance to see how much has been achieved or whether we are going to right direction or not. Controlling is an exercise of introspection. It helps in achieving organisational goals. In business, by continuously keeping a check on the changing situations and environment, controlling helps the management to review and revise the standards, so that its accuracy can be maintained. In this way, control system helps to improve future planning. It helps employees to know what is expected of them and perform accordingly. Controlling identifies efficient and inefficient workers through appraisal of their performance. It saves time and efforts of managers as they deal with only significant deviations. Controlling facilitates coordination by keeping all the activities, and efforts directed towards the achievement of goals in conformity with planned standards.

Image source: www.gotabout.info

Image source: www.gotabout.info

According to Koontz and O’Donnell,

Controlling is the measurement and correction of performance of activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished.

Final Thought

Technically, management is the process of planning, organising, staffing, directing and controlling the efforts of the organisational members by using all the available resources to achieve the organisational goals effectively and efficiently. Management is a goal-oriented activity. It tries to achieve its objectives by proper utilisation of resources.
Every organisation has some predefined objectives and the process which is adopted to achieve these objectives is called management process. So, management process is primarily concerned with the important task of goal achievement.


Next→ Different Ways to Value Your E-Commerce Business

Compsmag