Concept

Concept of Management

Management is a widely used term that refers to the activity of taking charge of different tasks in any enterprise. It becomes necessary wherever a group of people work together in an organisation. Even though people perform diverse tasks, they all work towards the same goal. Management guides their efforts to achieve a common objective.

Thus, management ensures that tasks are completed and goals are achieved (effectiveness) while using the least amount of resources at minimum cost (efficiency). Therefore, management is defined as a process of getting things done with the aim of achieving goals effectively and efficiently.

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Key Terms in the Definition

Three terms in this definition need elaboration:

• Process – Refers to the primary functions or activities that management performs to get things done. These functions are:

  • Planning
  • Organising
  • Staffing
  • Directing
  • Controlling

• Effectiveness – Means finishing the given task. It is concerned with doing the right task, completing activities, and achieving goals. In other words, it focuses on the end result.

• Efficiency – Means doing the task correctly and with minimum cost. It involves a cost-benefit analysis and the relationship between inputs and outputs. Efficiency increases when:

  • Using fewer resources (inputs) yields more benefits (outputs), OR
  • For the same benefit or outputs, fewer resources are used and less cost is incurred. …