DEFINING MANAGEMENT
Learning Outcome 01:
Various definitions of 'management': Define the term 'management'
▪ Management is a multi-purpose organ that manages a business, manages managers and manages workers
and work — Peter Drucker
▪ Management is an art of getting things done through people — Mary Parker Follett
▪ Management is a distinct process consisting of planning, organising, actuating and controlling performance
to determine & accomplish the objectives by the use of people and resources — George R Terry
▪ Management is the process of decision-making and control over the actions of human beings for the
purpose of attaining predetermined goals — Stanley Vane
▪ Management consists of getting things done through others. A manager accomplishes the objectives by
directing efforts to others — S George
▪ Management is the process of achieving group goals by facilitating individual performance and cooperation,
removing barriers, and optimising efficiency — Harold Konntz
▪ Management: the process of working with and through others to achieve business objectives, by balancing
effectiveness and efficiency & making the most of scarce resources in a changing environment
▪ 6 Components of this definition:
1. Management is a process
2. Management requires working with and through others
3. Management aims to achieve business goals and objectives
4. Management requires a balance between effectiveness & efficiency
5. Management should make the most of limited resources
6. Management has to cope with a changing environment
Management is a process
▪ A process: a structured set of activities designed to produce a specific outcome
▪ A business's management function can also be viewed as a process:
▪ All managers engage in the management functions — they are:
1. Planning
2. Organising
3. Leading
4. Controlling
The management functions:
• Planning
- Determines the business' vision, mission and goals
- Future-oriented; focuses on achieving goals and securing necessary resources for the task in a complex
environment
- Top management makes long-term goals, called 'strategic plans'
- Functional managers make tactical plans to support the business's long-term plans
- Lower management ('first-line'/'supervisory' management) makes operational plans to plan for short periods
ahead
• Organising
- The creation of a business structure that outlines the allocation of resources and people to achieve business
objectives
- The business's success lies in directing the different resources towards the achievement of a common set of
goals
- Management must match the business structure to its strategies — called 'organisational design'
• Leading
- Involves directing and motivating the human resources of a business to align their actions with established
goals and plans
- Managers are responsible for getting things done through other people
- Also involves effectively communicating goals and motivating departments, sections, and individuals to
perform at their best
• Controlling
- Managers should constantly ensure a business is on the right course to attain it goals
- Control aims to monitor performance and action — to ensure they conform to the plans to attain the
predetermined business goals