What Is Management? Definition, Functions and Levels

Organizations and companies need effective management to succeed. Different levels of management are responsible for organizing and coordinating the business functions of an organization. In order to become a manager, you may want to learn more about what a manager does. This article discusses what management is, as well as its unique characteristics, objectives, levels, and functions.

What is management?

Management entails planning and organizing a business' resources and activities so as to achieve specific goals in the most efficient and effective manner. In management, efficiency refers to completing tasks accurately and efficiently with the least amount of effort. In management, effectiveness refers to completing tasks within specific timelines in order to yield tangible results.

Characteristics of management

include the following:

Multi-dimensional

Most management oversees and supervises the service or production cycle of a company or organization. They provide direction to their team members. Managers view their staff members both as individuals with diverse needs and as components of a larger group. Managers must influence their team members to apply their unique strengths to achieve the organization's goals.

Dynamic

Management is a dynamic process that evolves and adapts in response to its environment, be it economic, sociopolitical or technological. Due to the rapid adoption of screens and digital devices, a paper company may see its sales decline. In order for the company to survive, its management must be able to adapt to new market requirements.

Intangible

While management isn't a tangible product, its presence can affect an organization's performance. Policies, ideologies, and people are all part of management. An organized management system helps companies achieve their targets, increase employee satisfaction, and improve their overall efficiency.

Objectives of management

Management can have mainly three types of objectives:

Organisational objectives

All stakeholders in the company, including employees, customers, and government, should be considered by management. Goals must be set and achieved by management. An organization's primary objective is usually to achieve growth by utilizing its human, material, and financial resources. Every company has three main goals:

Survival: An organization must generate enough revenue to cover its operating expenses.

Profit: Businesses rely on profit as an incentive and to cover unprecedented costs and risks.

Growth: You can measure the growth of a company by looking at its sales volume, workforce, and capital investment.

Social objectives

In a sense, the management is also responsible for creating benefits for society through their work. Companies achieve this in different ways. Some may use environmentally-friendly methods of production, while others may practice fair wages and work opportunities. In general, larger companies fund or maintain initiatives that provide basic amenities like healthcare and education. A company's CSR (Corporate Social Responsibility) campaign may benefit society in different ways, depending on the size of its operations.

Personnel objectives

The management decides the financial incentives, salaries, perks, and social initiatives for their employees. Employees' social growth and development is supported by activities that promote peer recognition and interaction, such as company outings and holiday bonuses.

Importance of management

Management is important for the following reasons:

• Effective management guides individual efforts towards achieving the overall goals of the organization by giving them a common direction.
• Increasing efficiency will reduce costs and increase productivity in all areas of an organization.
• Establishes a dynamic organisation: Management assists its personnel in adapting to change so the organization can remain competitive. A company's ability to respond to and adapt to change will determine its success or failure.
• Effective leadership fosters team spirit, cooperation, and commitment to achieve the organisational goals as a team, which helps each term member achieve their personal goals.

Levels of management

Management roles come in three levels:

1. Top management

Typically, the most senior executives in a company are the chairman, chief executive officer, chief operating officer, president, and vice-president. Integrating diverse components of the company and coordinating the activities of various departments are their responsibilities. To ensure the company's survival and the welfare of its stakeholders, they analyze the business environment and its implications.

2. Middle management

The middle management is comprised primarily of division heads, which link the operational management to the top management. Division/department heads receive guidance from top managers and are responsible for leading operational managers. As a result, they are responsible for understanding the policies formulated by top management and relaying them to their respective divisions/departments so that they follow through with company policies and decisions.

3. Operational management

Direct supervisors, section leaders or forepersons oversee the efforts of the workforce. In addition to quality control, they ensure that work is completed on time. Top management defines the authority and responsibilities of supervisors in their plans.

Functions of management

The purpose of management is to unify the efforts of different individuals in an organisation towards achieving a common goal. These are some

functions of management:

Planning

To achieve a specific goal, planning involves creating a timeline of tasks that must be accomplished. To avoid wasting resources and time, managers should implement planning in a systematic way. Confusion, risk, waste and uncertainty are minimized by a detailed plan of action.

A small business's top management may set a high sales target for one quarter to compensate for the previous quarter's losses. To expand their scale of operations, a start-up's founder may make formal efforts to associate with government agencies and other large organizations. Local digital marketing companies may plan on creating an international market for their products and services. An IT company may update their work regulations to allow employees to work from home.

Prioritise organisation

The purpose of organising is to foster a symbiotic relationship between employees, financial resources, and physical assets. Organizing correctly can lead to a successful course of action that meets all parameters. Delegation, coordination, and identification of activities are all part of the process of organizing.

One example is the division of funds and resources by the top managers. Funds must then be allocated based on the operational needs of each department within the branch. The heads of the departments then track the funds' expenditures on a daily basis.

Improve staffing

This involves recruiting and building a team within the organization. Companies usually go through a long and arduous hiring process. Management identifies the roles in the company and the skills/qualifications required for each role. Through the recruitment process, the manager selects the employees for those roles. The candidates are then trained and become part of the company's workforce. Employee appraisals and promotions are also awarded by managers.

If a digital marketing company decides to expand to another city in the country, it might expand its operations. The top management can then select five marketing personnel, four visual designers, two accountants, a human resource professional and a manager for each location. Additionally, they may decide to outsource IT, maintenance, and security related tasks to freelancers. One marketing employee and one visual designer may also be recommended to take on the role of department lead after two months of training and one year of experience at the company.

Provide direction

A manager's primary responsibility is to supervise, motivate, and guide their staff. A director's job involves putting the work in motion and maintaining productivity in order to achieve company goals. To drive the team towards completing the organization's objectives, excellent leadership, communication, and interpersonal skills are required.

As an example, middle management often formulates policies based on directions it receives from top management. Operational managers are more concerned with day-to-day operations.

Monitor quality

The performance of businesses is governed by certain standards. The manager ensures that the company's quantitative and qualitative benchmarks are met by the staff. Control at each level prevents overall deviation from prescribed quality specifications.

Supervisors in fast food chains, for example, often micromanage cashiers, kitchen staff, delivery personnel and servers to ensure that they are providing quality food and service. Quality standards are typically set by top management and evolve over time.