Text1. About Management

Management is the process of coordinating material, financial, information and human resources to achieve the goals of the organisation. Material resources are physical resources used by the organisation. Financial resources are the funds the organisation uses to meet its obligations to investors and creditors. Information resources refer to information on what is changing and how it is changing. The most important resources are human resources. The way the employees are developed and managed may have even bigger impact on the organisation than other things such as marketing, sound financial decisions, production or technology.

The basic management functions are planning, organising, leading, motivating, and controlling. Let’s consider them in detail.

1. Planning is establishing the organisation's goals and deciding how to accomplish them. There are different kinds of planning. Strategic planning is the process of establishing major goals and objectives and allocating resources to achieve them.

A goal is an end result that the organisation is expected to achieve over a one- to ten-year period. An objective is a specific statement detailing what the organisation intends to accomplish over a shorter period of time. Goals and objectives may deal with such things as sales, company growth, costs, and customer satisfaction. Goals are set at every level of the organisation from the CEO down to the operation employees.

The company’s strategy is the broadest set of plans, developed as a guide for major policy settings and decision making.

A strategic plan is set by the Board of Directors and top management.

A tactical plan is a small-scale plan developed to implement a strategy. It is developed for a 1-3 year period, and updated as information becomes available or conditions change.

An operational plan is a type of plan designed for a year or less to implement tactical plans.

A contingency plan is a back-up plan that outlines alternative courses of action if the organisation’s original plans are disrupted or become ineffective.

2. Organising is grouping the resources and activities to accomplish some end result in an efficient and effective manner. The work of the entire organisation is divided into separate parts and these parts are assigned to the certain positions within the organisation. Various positions are grouped into departments, and responsibility and authority are distributed among them. Then it is necessary to determine the number of subordinates who will report to each manager and to establish the chain of command – who has direct authority and who is in a support role.

3. Leading is the process of influencing people to work towards a common goal.

4. Motivating is providing reasons for people to work: money, status, career development, and so on.

5. Directing is the combined process of leading and motivating.

6. Controlling is evaluating and regulating ongoing activities to ensure that goals are achieved. It includes three steps: setting standard performance, measuring actual performance and comparing it to the standards, and taking corrective action. These steps must be repeated periodically until the goal is achieved.

Answer the questions:

1. What is management?

2. What are the functions of management?

3. What is planning?

4. What kinds of plans do organisations develop?

5. What does the strategic plan refer to?

6. What does the tactical plan introduce?

7.Why are operational and contingency plans necessary for the organisation?

8. What does organising as a function of management mean?

9. Why is motivating important?

10. What steps does controlling include?