Management includes the next functions.
- Motivation is very important for effective leading; it is essential for successful management.
- Now, what is planning? It is selecting goals and ways to attain them.
- Organizing is assigning responsibility for task accomplishment.
- Leading is using influence to motivate employees.
- Controlling is monitoring activities and making corrections.
All these functions are interrelated.
We see that management deals with all spheres of an organization’s activities. The task of management is to accumulate and use an organization’s resources in order to achieve the objectives set by this organization. The goals should be achieved in an effective and efficient manner.
Thus, the definition of management is the following: Management is the process aimed at attainment of organizational goals in an effective and efficient manner, through planning, organizing, leading, and controlling organizational resources.
Who knows, what is the difference between ‘effective’ and ‘efficient’? Effectiveness is the degree to which the organization achieves a stated goal. Efficiency is the use of minimal resources – raw materials, money, and people – to produce a desired volume of output.
Some authors use the word «direction» as an equivalent of the word ‘management’. Other people view ‘management’ as a more narrow concept (only for for-profit organizations), or as a more broad concept (including more functions). It is reasonable to assume that not only business firms need management, and that the concept of management includes all functions involved in running an organization.