Management is the coordination and direction of the activities towards some particular goals. The word management is quite an old one. Its origin lies in the Latin manus, meaning literally by hand, power, and jurisdiction1.
All organizations, whether small or large, have to be managed. This means that there is a need for people with special abilities and skills. Managers should carry out the following: setting objectives, forecasting and planning, directing subordinates, coordinating and guiding various activities so that all parts of the business are working towards the same goal. There exist three levels of management: top level, middle level and lower level or first-line managers.
The top level consists of board of directors, managing directors and executive directors. The middle level consists of marketing manager, branch manager, finance manager, chief accountant, and personnel manager. The lower level consists of sales officers and finance officers.
Any organization is usually divided into a number of departments, each being responsible for a specific range of work, such as finance (accounting), personnel (human resources), marketing, research and development, production, and others. The amount of work involved in running a large business is usually too much for the senior managers to cope with entirely on their own. This means that responsibilities, authority and duties have to be passed down the line to others i.e. to middle management and first-line management. This is known as delegation 2.
The main responsibility of senior managers of any business is decision-making. Decision-making is a characteristic of management at all levels. The more important the matter is, the higher up the management ladder the decision is made. These decisions are connected with planning, organizing, leading and controlling.
Planning gives the organization its objectives and sets up the best way to reach them. It is necessary at all levels of management. An organization without proper plans is like a ship without a rudder. Managers have to decide what to produce, how it should be produced, and for whom. They should also estimate what resources will be needed, consider what problems are likely to arise, and decide how they can best be overcome.
To implement plans in a highly efficient manner, managers should organize the process of arranging work, authority and resources. A good leader inspires employees, boosts morale and encourages effective communication among employees. Excellent leadership can even increase the organizations income.
Plans are pointless unless there is a periodic check a control on what is being achieved. Whereas planning is concerned with the future, control is concerned with the past.
