This article is intended to provide some salient features of management. It also stresses the importance of Management in business organizations.
Management is important to every form of a group activity. The need and importance of management arises whenever and wherever people come together for achieving some common goals or solving problems. Management is a vital aspect of the economic life of man while it's an indispensable element of every business, as it is concerned with guiding and effective utilization of human and physical resources of a business, so that the set goals and objectives may be accomplished in a way as wanted. According to George R. Terry, “Management is distinct process consisting of planning, organizing, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources.” Another definition of American management association is “Management is getting things done through people.” This article is intended to highlight some salient features of management.
Management is a universal activity – Management is universally needed in all the organizations and its process is universally applicable. The need and importance of management is felt everywhere regardless of the size of the businesses.
Management process is universally applicable in the sense that the concepts, principles and techniques are equally important in all types of organization.There are many approaches to management from disciplines, such as sociology, economics, psychology and computer science to manage a business organization effectively and efficiently and to achieve optimum utilization of its resources and maximum profits.
Management is Goal oriented – Management is essential at all levels of organization to achieve the predefined business goals and objectives. It’s a purposeful activity which is concerned with directing and coordinating with people so that the business goals and objectives may be accomplished in a manner as planned or intended. In this way, the success of a management is measured to an extent at which the objectives are attained successfully. It involves effective planning, organizing, directing and controlling of activities that they may be effectively and efficiently carried out and the business goals may be attained accordingly.
Directing Group Activity – Management is not just concerned with individual efforts in a business, but it is more concerned with group activities and efforts. As there is an incremental growth in business and industrialization, individuals form a group and the groups form an organization with the expected increase in demands for managers.
Management is a continuous process – Management is never-ending, but a continuous process which leads to deal with various problems and issues in a business organization. It is not just about what to do, when to do and how to do, but it is concerned with getting things done continuously while improving the performance and eliminating the impediments. It involves monitoring and controlling the activities in a continuous manner so as to attain the sustainable development at all levels of organization.
Management is a unifying force – An effective management is the very essence of integrating human resource and financial resource and other resources of a business in order that the business goals and objectives may be achieved in an intended manner. It is concerned with making all the resources available for the effective utilization while seeking to harmonize the process of attaining goals minimizing the possibilities of conflicts.
Indeed, a manager has a lot of work to do in addition to supervising workers, as such, managing a diverse group of people can be a challenge, but they can learn and improve a lot through principles of management, because management principles, concepts and techniques have a significant influence on today’s modern organizations. It must be noted that managers are required in all organizations and at all levels of management to facilitate growth and expansion of a business. As it goes in this saying, “Management is what the modern world is all about”.
Working capital is defined as being the capital of a business which is used in its day-to-day operations. It is the net of current assets minus current liabilities.
Cash management involves managing cash efficiently, the proper usage of cash while assessing liquidity and the cash flow and investments..
Ratio, in general, shows a proportional relationship between two different numbers or quantities. It may be a relationship between two amounts that is represented by a pair of numbers showing how much greater one amount is than the other, that is, the ratio of something to something.