Definition of Management:

Management is a process consisting of planning, organizing, directing and

controlling,performed to determine and accomplish the objectives by the use of people and
resources.
Functional areas (Process) of Management.
1. Planning:
I) Planning is the function that determines in advance what should be done in the organization.
II) It is a process of deciding the business objectives and determining the methods of attaining the
objectives.
III) This is done not only for the organization as a whole but for every division, department or sub unit of
the organization.
2. Organizing:
Organizing is the process of identifying and grouping of work to be performed, defining and
delegating responsibility and authority and establishing relationships for the purpose of
enabling people to work most effectively together in accomplishing their objectives.
First they design and develop a human organization that will be able to carry out those plans
successfully.
Next they develop material organizations to provide raw materials, tools and capital equipment.
3 Directing: In carrying out this function the manager explains to his people what they have to do and
helps them to do it to the best of their ability. Directing involves three sub functions –Communication,
leadership and motivation.
i)Communication is the process of passing information and understanding from one person to another.
ii)Leadership is the process by which a manager guide and influence the work of his subordinates.
iii)Motivation means arousing desire in the minds of workers to give their best to the enterprise.
4 Controlling: The controlling function of management involves three elements.
1. Establishing standards of performance.
2. Measuring current performance and comparing it against the established standards.
3. Taking action to correct any performance that does not meet those standards.
In the absence of sound control, there is no guarantee that objectives which have been set will be
realized. Control compels events to conform to plans.
5 Innovating: Innovation means creating new ideas which may improve a product, process or practice.
6 Representing: A manager is also required nowadays to spend a part of his time in representing his
organization before various outside groups which have some stake in the organization.