Functions of Management in Business

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Management deals the with administration of organizational resources that include its manpower in a way which fosters optimum performance, in turn translating to higher profits. For the purpose of optimization, it tends to honor the interests and representation of the company’s stakeholders.

Various aspects of organizational management are harnessed through strategic administration which entails the management of market strategy.

Also through operational management that focuses on the management of processes unique to a given organization. While management control tends to make the connection between the above, due to its positioning within the company.

Management has to successfully deal with the perceptions and interests of various stakeholders of a company while staying within the confines of organizational optimization.

In the early days, Henri Fayol proposed a management approach, which fosters even greater clarity and rationality. His approach took into consideration the elements of money supply, reliability of tools and layout of workplaces, he regarded them as equally important in the same manner as does the quantity produced by the company.

The approach is referred to as modern administration, which was then and remains today the basis of any management manual. It brings the factors of systematic labor leadership and, forecasting in the controlling of decisions. And goes on to recognize the principles of management: planning, organizing, commanding, coordinating and controlling.

A company belongs to both shareholders and employees, even if shareholders are the legal owners, and as such the firm’s profit must be shared between each of its internal components, that is shareholders and employees.

Business strategy relates to the determinations around the long-term direction of the organization and alternatives that allow it to fit competitively into its environment.

Consequently, it is the art of coordinating and guiding manpower and other resources according to the company’s long term view. Hence, shaping a strategy is to distinguish goals and objectives to be pursued, to choose actions to implement and mobilize resources.

Principally, the strategy formulation process seeks to structure the thought process of leaders in order to pursue the best strategic decisions. In essence, strategy typically gives rise to action planning to achieve specific objectives over a given period.

Every decision made on financial, economic, marketing or other aspects, forms part of a much broader package known as operational management.

As a component of management, finance plays a role at the strategic level to optimize the value of the company, and is particularly of interest to capital providers.

 

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