The definition and functions of management

One reason people go to college is that college prepares them to become managers. Students have told us, "I don't know what I want to do, really. I guess I would like to be in management." Management is attractive to students because it represents authority, money, prestige, and so on. But few students are able to describe just what it is that managers do.

Management could be called the art of getting things done through people and other resources. Managers give direction to their organizations, provide leadership, and decide how to use organizational resources to accomplish goals. Both definitions give you some idea for what managers do. The definition of management we will be using in this text is the following. Management is the process used to accomplish organizational goals through planning, organizing, directing and controlling people and other organizational resources. This definition spells out the four key functions of management: (1) planning, (2) organizing, (3) directing, and (4) controlling.

Planning includes anticipating future trends and determining the best strategies and tactics to achieve organizational goals and objectives.

Organizing includes designing the organizational structure, attracting people to the organization (staffing), and creating conditions and systems to ensure that everyone and everything work together to achieve the goals and objectives of the organization.

Directing is guiding and motivating others to work effectively to achieve the goals and objectives of the organization.

Controlling is checking to determine whether or not an organization is progressing toward its goals and objectives, and taking corrective actions if it is not.

You might also know that management is much more complex than doing a few tasks. A good manager must know about the industry the firm is in and all the technological, political, competitive, and social factors affecting that industry. He or she must also understand the kind of people who work in the industry and what motivates them. Finally, a manager must be skilled in performing various managerial tasks, especially technical tasks, human relations tasks and conceptual tasks.