MANAGEMENT. Management is the process of coordinating the resources of an organization to achieve the primary organizational goals

Management is the process of coordinating the resources of an organization to achieve the primary organizational goals. Depending on its size an organization may employ a number of specialized managers who are responsible for particular areas of management. A very large organization may employ many managers, each responsible for activities of the management area. In contrast, the owner of a sole proprietorship may be the only manager in the organization. Managers are concerned with the following main resources:

* Material resources are physical materials and the equipment used by an organization to make a product. For example, cars are made on assembly lines. These assembly lines and the buildings that house them are material resources.

* The most important resources of any organization are its human resources – people. Some firms believe that their employees are their most important assets. To keep employees content, a variety of incentives are used, including higher-than-average pay, flexible working hours, recreational facilities, lengthy paid vacations, cafeterias offering inexpensive meals, etc.

* Financial resources are the funds the organization to meet its obligations to various creditors. A grocery store obtains money from customers and uses a portion of that money to pay the wholesalers from which it buys food. A large bank borrows and lends money. A college obtains money in the form of tuition, income from its endowments, and federal grants. It uses the money to pay utility bills, insurance premiums, and professors' salaries. Each of these transactions involves financial resources.

* Finally, many organizations increasingly find they cannot ignore information. External environment – including the economy, consumer markets, technology, politics, and cultural forces – are all changing rapidly that an organization which does not adapt will probably not survive. And, to adapt to change, the organization must know what is changing and how it is changing. Companies are finding it increasingly important to gather information about their competitors in today's business environment.

It is important to realize that these are only general categories of resources. Within each category there are hundreds of more specific resources, from which management must choose those that can best accomplish its goals. Managers must coordinate this complex group of specific resources to produce goods and services.