Module 2
Importance of Management Process
For any business or activity to succeed, it is imperative that they plan well in
advance on what, how and by when do they want to achieve their desired business
goals. Any one trying to randomly take up an activity or business, and trying to
complete it will always falter and fail because they are not prepared for the
processes. This is where a well thought out and structured management process
is important. Management process is important for any organization or person
who want to complete a task or project. Management process generally is focused
on operations and efficiency whereas strategic management process focusses on
future goals of an organization along with overall vision and steps to achieve
them.
A well defined, structured management process empowers the manager to plan
the details, organize the resources, allocate people, lead everyone together and
control everyone for maximum coordination. If all these steps are followed, any
person can manage a project and achieve their business goals.
What is Management Process?
Management process is a series of fundamental steps to manage any activity,
business or project in order to produce optimum results as per the defined strategy
and vision. Management process includes steps to plan, organize, staff, lead and
control the resources to completely manage any particular task, project or
business on an ongoing basis. These processes need to be carried out by managers
or business leaders to ensure they are able to meet the business requirements with
maximum efficiency.
Importance of Management Process
For any business or activity to succeed, it is imperative that they plan well in
advance on what, how and by when do they want to achieve their desired business
goals. Any one trying to randomly take up an activity or business, and trying to
complete it will always falter and fail because they are not prepared for the
processes. This is where a well thought out and structured management process
is important. Management process is important for any organization or person
who want to complete a task or project. Management process generally is focused
on operations and efficiency whereas strategic management process focusses on
future goals of an organization along with overall vision and steps to achieve
them.
A well defined, structured management process empowers the manager to plan
the details, organize the resources, allocate people, lead everyone together and
control everyone for maximum coordination. If all these steps are followed, any
person can manage a project and achieve their business goals.
,5 Functions of Management Process
As a concept and discipline, management process has 5 main critical functions &
fundamentals, and they are to plan, organize, staff, lead and control. Each
fundamental can be understood as the following:
1. Planning
The first step in a management process is planning. This is the most critical step
as the entire project or business inputs, processes and desired output are planned
well in advance. Planning needs to be very thorough as all the subsequent steps
are dependent on the project plan which is created for the business. Planning
includes several action items like making a business plan, sales plan, budgeting
& forecasting, manpower planning, technology needed, raw materials, final
output needed etc. These fundamentals of planning are essential for any business
or project.
2. Organizing
Post the planning stage, the next step in management process is to organize,
arrange and prioritize all the requirements. For any business or project to succeed
based on the plan, a manager needs to organize all requirements like capital, raw
materials, machinery, technology and people.
Organizing is important in initiating the project based on plan created,
prioritization of activities and a timeline to achieve all goals.
3. Staffing
Once a plan is created and all necessary inputs are available, staffing or creating
a team of people is the next stage in a management process. Every business only
succeeds or fails based on the work done by their employees and workforce.
Staffing is critical as every activity needs to be carried out by a person who has
the right skills, knowledge and motivation to complete their respective tasks.
Staffing includes manpower planning processes like employee recruitment,
selection, training, induction, orientation, promotion, termination etc.
4. Leading
Once a team is created, it is important for any manager to lead the people. This
management process involves the team leader to ensure all team members across
various business functions like product, engineering, marketing, sales, support
etc. are motivated and there is coordination among all of them. A good team
leader ensures transparent communication, directs the team well, seamless
coordination and makes sure each of the team members are happy with the work.
5. Controlling
Once a business or project is initiated, the management process which is
important to keep check on the progress is known as controlling. A manager
,needs to constantly evaluate the business process, compare it with the initial plan,
keep track of resources, evaluate team performances and ensure that business
output is as per the requirements. In case of any deviation, a manager must ensure
quick and efficient corrective action. This stage is important as it help in a
continually improving process to attain the business goals.
Management Process Example
Management process can be implemented on any project, business or activity.
The core concept is to plan, arrange, make a team and execute the plan for the
desired outcome. An example of management process can be that of a car
manufacturer. The car company must plan its output via sales plan, marketing
plan, manpower needed, investment required etc. Once the plan is done, the car
company will arrange for men, money and machines to manufacture the cars.
The staffing stage will allocate the right people for the right job, i.e. engineering,
design, shop floor workers, finance, marketing, salesmen etc. The team leader
will then ensure everyone is working together and will control the business by
constant monitoring evaluation and process improvement.
PLANNING
Planning is the fundamental management function, which involves deciding
beforehand, what is to be done, when is it to be done, how it is to be done and
who is going to do it. It is an intellectual process which lays down an
organisation’s objectives and develops various courses of action, by which the
organisation can achieve those objectives. It chalks out exactly, how to attain a
specific goal. Planning is nothing but thinking before the action takes place. It
helps us to take a peep into the future and decide in advance the way to deal with
the situations, which we are going to encounter in future. It involves logical
thinking and rational decision making.
According to Koontz and O’Donnel, “Planning is deciding in advance what to
do, how to do it, when to do it and who is to do it. It bridges the gap from where
we are to where we want to go.”
Planning is the continuous managerial process of anticipating and forecasting the
future. environment of the business organization, the formulation of the long term
and short term goals. to be achieved and selecting the strategies for their
realization.
Planning is also a management process, concerned with defining goals for a
company's future direction and determining the missions and resources to achieve
those targets. To meet objectives, managers may develop plans, such as a business
, plan or a marketing plan.
The planning process provides the information top management needs to make
effective decisions about how to allocate the resources in a way that will enable
the organization to reach its objectives. Productivity is maximized and resources
are not wasted on projects with little chance of success.
Importance of Planning
♣ It helps managers to improve future performance, by establishing objectives
and selecting a course of action, for the benefit of the organisation.
♣ It minimises risk and uncertainty, by looking ahead into the future.
♣ It facilitates the coordination of activities. Thus, reduces overlapping among
activities and eliminates unproductive work.
♣ It states in advance, what should be done in future, so it provides direction for
action.
♣ It uncovers and identifies future opportunities and threats.
♣ It sets out standards for controlling. It compares actual performance with the
standard performance and efforts are made to correct the same.
Planning is present in all types of organisations, households, sectors, economies,
etc. We need to plan because the future is highly uncertain and no one can predict
the future with 100% accuracy, as the conditions can change anytime. Hence,
planning is the basic requirement of any organization for the survival, growth and
success
Characteristics of Planning
1. Managerial function: Planning is a first and foremost managerial function
provides the base for other functions of the management, i.e. organising,
staffing, directing and controlling, as they are performed within the
periphery of the plans made.
2. Goal oriented: It focuses on defining the goals of the organisation, identifying
alternative courses of action and deciding the appropriate action plan, which is to
be undertaken for reaching the goals.
3. Pervasive: It is pervasive in the sense that it is present in all the segments and
is required at all the levels of the organisation. Although the scope of planning
varies at different levels and departments.
4. Continuous Process: Plans are made for a specific term, say for a month,
quarter, year and so on. Once that period is over, new plans are drawn,
considering the organisation’s present and future requirements and conditions.
Therefore, it is an ongoing process, as the plans are framed, executed and
followed by another plan.
5. Intellectual Process: It is a mental exercise at it involves the application of
mind, to think, forecast, imagine intelligently and innovate etc
Importance of Management Process
For any business or activity to succeed, it is imperative that they plan well in
advance on what, how and by when do they want to achieve their desired business
goals. Any one trying to randomly take up an activity or business, and trying to
complete it will always falter and fail because they are not prepared for the
processes. This is where a well thought out and structured management process
is important. Management process is important for any organization or person
who want to complete a task or project. Management process generally is focused
on operations and efficiency whereas strategic management process focusses on
future goals of an organization along with overall vision and steps to achieve
them.
A well defined, structured management process empowers the manager to plan
the details, organize the resources, allocate people, lead everyone together and
control everyone for maximum coordination. If all these steps are followed, any
person can manage a project and achieve their business goals.
What is Management Process?
Management process is a series of fundamental steps to manage any activity,
business or project in order to produce optimum results as per the defined strategy
and vision. Management process includes steps to plan, organize, staff, lead and
control the resources to completely manage any particular task, project or
business on an ongoing basis. These processes need to be carried out by managers
or business leaders to ensure they are able to meet the business requirements with
maximum efficiency.
Importance of Management Process
For any business or activity to succeed, it is imperative that they plan well in
advance on what, how and by when do they want to achieve their desired business
goals. Any one trying to randomly take up an activity or business, and trying to
complete it will always falter and fail because they are not prepared for the
processes. This is where a well thought out and structured management process
is important. Management process is important for any organization or person
who want to complete a task or project. Management process generally is focused
on operations and efficiency whereas strategic management process focusses on
future goals of an organization along with overall vision and steps to achieve
them.
A well defined, structured management process empowers the manager to plan
the details, organize the resources, allocate people, lead everyone together and
control everyone for maximum coordination. If all these steps are followed, any
person can manage a project and achieve their business goals.
,5 Functions of Management Process
As a concept and discipline, management process has 5 main critical functions &
fundamentals, and they are to plan, organize, staff, lead and control. Each
fundamental can be understood as the following:
1. Planning
The first step in a management process is planning. This is the most critical step
as the entire project or business inputs, processes and desired output are planned
well in advance. Planning needs to be very thorough as all the subsequent steps
are dependent on the project plan which is created for the business. Planning
includes several action items like making a business plan, sales plan, budgeting
& forecasting, manpower planning, technology needed, raw materials, final
output needed etc. These fundamentals of planning are essential for any business
or project.
2. Organizing
Post the planning stage, the next step in management process is to organize,
arrange and prioritize all the requirements. For any business or project to succeed
based on the plan, a manager needs to organize all requirements like capital, raw
materials, machinery, technology and people.
Organizing is important in initiating the project based on plan created,
prioritization of activities and a timeline to achieve all goals.
3. Staffing
Once a plan is created and all necessary inputs are available, staffing or creating
a team of people is the next stage in a management process. Every business only
succeeds or fails based on the work done by their employees and workforce.
Staffing is critical as every activity needs to be carried out by a person who has
the right skills, knowledge and motivation to complete their respective tasks.
Staffing includes manpower planning processes like employee recruitment,
selection, training, induction, orientation, promotion, termination etc.
4. Leading
Once a team is created, it is important for any manager to lead the people. This
management process involves the team leader to ensure all team members across
various business functions like product, engineering, marketing, sales, support
etc. are motivated and there is coordination among all of them. A good team
leader ensures transparent communication, directs the team well, seamless
coordination and makes sure each of the team members are happy with the work.
5. Controlling
Once a business or project is initiated, the management process which is
important to keep check on the progress is known as controlling. A manager
,needs to constantly evaluate the business process, compare it with the initial plan,
keep track of resources, evaluate team performances and ensure that business
output is as per the requirements. In case of any deviation, a manager must ensure
quick and efficient corrective action. This stage is important as it help in a
continually improving process to attain the business goals.
Management Process Example
Management process can be implemented on any project, business or activity.
The core concept is to plan, arrange, make a team and execute the plan for the
desired outcome. An example of management process can be that of a car
manufacturer. The car company must plan its output via sales plan, marketing
plan, manpower needed, investment required etc. Once the plan is done, the car
company will arrange for men, money and machines to manufacture the cars.
The staffing stage will allocate the right people for the right job, i.e. engineering,
design, shop floor workers, finance, marketing, salesmen etc. The team leader
will then ensure everyone is working together and will control the business by
constant monitoring evaluation and process improvement.
PLANNING
Planning is the fundamental management function, which involves deciding
beforehand, what is to be done, when is it to be done, how it is to be done and
who is going to do it. It is an intellectual process which lays down an
organisation’s objectives and develops various courses of action, by which the
organisation can achieve those objectives. It chalks out exactly, how to attain a
specific goal. Planning is nothing but thinking before the action takes place. It
helps us to take a peep into the future and decide in advance the way to deal with
the situations, which we are going to encounter in future. It involves logical
thinking and rational decision making.
According to Koontz and O’Donnel, “Planning is deciding in advance what to
do, how to do it, when to do it and who is to do it. It bridges the gap from where
we are to where we want to go.”
Planning is the continuous managerial process of anticipating and forecasting the
future. environment of the business organization, the formulation of the long term
and short term goals. to be achieved and selecting the strategies for their
realization.
Planning is also a management process, concerned with defining goals for a
company's future direction and determining the missions and resources to achieve
those targets. To meet objectives, managers may develop plans, such as a business
, plan or a marketing plan.
The planning process provides the information top management needs to make
effective decisions about how to allocate the resources in a way that will enable
the organization to reach its objectives. Productivity is maximized and resources
are not wasted on projects with little chance of success.
Importance of Planning
♣ It helps managers to improve future performance, by establishing objectives
and selecting a course of action, for the benefit of the organisation.
♣ It minimises risk and uncertainty, by looking ahead into the future.
♣ It facilitates the coordination of activities. Thus, reduces overlapping among
activities and eliminates unproductive work.
♣ It states in advance, what should be done in future, so it provides direction for
action.
♣ It uncovers and identifies future opportunities and threats.
♣ It sets out standards for controlling. It compares actual performance with the
standard performance and efforts are made to correct the same.
Planning is present in all types of organisations, households, sectors, economies,
etc. We need to plan because the future is highly uncertain and no one can predict
the future with 100% accuracy, as the conditions can change anytime. Hence,
planning is the basic requirement of any organization for the survival, growth and
success
Characteristics of Planning
1. Managerial function: Planning is a first and foremost managerial function
provides the base for other functions of the management, i.e. organising,
staffing, directing and controlling, as they are performed within the
periphery of the plans made.
2. Goal oriented: It focuses on defining the goals of the organisation, identifying
alternative courses of action and deciding the appropriate action plan, which is to
be undertaken for reaching the goals.
3. Pervasive: It is pervasive in the sense that it is present in all the segments and
is required at all the levels of the organisation. Although the scope of planning
varies at different levels and departments.
4. Continuous Process: Plans are made for a specific term, say for a month,
quarter, year and so on. Once that period is over, new plans are drawn,
considering the organisation’s present and future requirements and conditions.
Therefore, it is an ongoing process, as the plans are framed, executed and
followed by another plan.
5. Intellectual Process: It is a mental exercise at it involves the application of
mind, to think, forecast, imagine intelligently and innovate etc
