Management means the judicious use of means to accomplish an end. It also means the organizing and controlling of the affairs of a business or a sector of business. Whether it’s a small organization or large, it has to have some procedures and plans to maintain the functioning state of a business effectively and efficiently. And in order that the functioning state of a business may be maintained and run in a desired way, there is a great need for developing and implementing management concepts.
The methodology which is put into practice in order to get the things done or the functions with their sequence undertaken by a manager is what is said to be management process which involves: Planning, organizing, directing and controlling (PODC).
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Planning - Planning is one of the most important components of management. Planning involves preparing a sequence of actions in order to achieve the specific goal. If it is done effectively, it can reduce the necessary time and efforts. A plan serves in a way a map does. As a map guides you in reaching your destination so does planning in the attainment of your goal.
Following a plan is to see how much you have progressed towards your goal and how far your destination is. It is good to know where you are so as to make decision on how you will be reaching to your destination. It is the first essential managerial function which is performed to determine what must be done to accomplish the work. One cannot succeed without a plan. Good management involves good planning. The planning process includes business plans, budgets, increasing sales and profits. The sole task of planning is to answer who is to do; what is to be done; how it should be done, when and where it is to be done.
Organizing – It is the act of rearranging the elements in a particular way to get desired output - Anything which looks in the correct order, you can regard it to be organized. Organizing can also be defined as to place different objects in a logical arrangement for specific purposes. This is one of the major functions of management which involves the activities of necessary components - grouping activities in a logical fashion. It is meant for the optimum utilization of available resources in order to get desired output. It is assigning people to task in the workplace. Organizing is a broad set of activities which entails the division of activities so that individuals or groups can perform them effectively and efficiently.
Directing – Directing indicates guiding. This function is of much value and significance. It is the key to the attainment of organizational goals and objectives. Such a managerial function is this that around which all the organizational performance is rotated Directing is relating to instructions and guidance to the subordinates towards the tasks being assigned to them, while letting them know what they are expected of. It is the direction that necessitates leadership roles and motivational techniques to be established.
Controlling – Controlling is the process through which it is ensured whether the plans are being followed as well as the progress is being made towards the organizational objectives. It is the process of monitoring how well the organizational resources are being utilized and the activities are being performed. It involves the establishment of standards and measurement of performance while monitoring and reviewing the activities so as to take corrective measures in case of deviations. According to Henry Fayol, “Control consists in verifying whether everything occurs in conformity with the plan adopted, the instructions issued and the principles established.”
Ordinary interest is calculated on the basis of a 360-day year or a 30-day month; exact interest is calculated on a 365-day year. The interest formulas for both ordinary and exact interest are actually the same, with time slightly differing when given as number of days..
Managerial economics helps to develop leadership qualities which are necessary for every business. It helps in effective decision making thereby profiting the company.
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