What is the importance of management

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Man is a social being with a tendency towards organization, which comes natural to him. Human history can be traced through the development of organizations, from the initial shape of the family, a little later generation of organizations to modern aspects of organization for all types of human activity.

Participation of people in such activity requires coordination of individual activities. Therefore, we encounter the organization in all major operations in the history of mankind. This applies as to the sphere of production as in other areas. For larger collective action is necessary to divide tasks among individuals and to ensure the coordination of operations.

The task of establishing and maintaining the organization is primarily a task of management. Therefore, organizational theory is often equated with the theory of management.

Management can be defined as a creative solution to problems arising in the field of planning, organizing, managing and reviewing the available resources (raw materials) at achieving the objectives and development organization.

Management is planning, organizing, leading and controlling of all the tasks that employees perform in an organization. Management is basically coordination of tasks and activities to achieve set goals.

Menagement is mental intuitive function of business people in the organizational system. It is a basic system of the organization which directs and connects all the other subsystems. In this context, management includes:

- Coordination of human, material and financial resources with the aim of the organization;

- Connecting the organization to the external environment and responding to the needs of society;

- Developing the organizational climate which helps to achieve individual and common goals;

- The effective performance of their duties, such as: defining objectives, planning, obtaining resources, organization, implementation, acceptance and control;

- Deriving the various business activities of development, information and decision making nature.

The concept of manager refers to the various types of managers and their tasks. Managers may be heads of departments, agencies, projects, supervisors, managers, directors, managers and heads of both it the organizations that generate profits, as in those which are financed from the budget.

Creative problem solving is a process of finding and analyzing problems, identifying causes, identifying and selecting alternatives for different solutions. An important part of this process is the decision on choosing the most appropriate decisions, often the ones that have so far not been known. Problem solving is the key concerns of management, because it is in all its functions and activities.

The difference between leaders and managers

Generally known fact is that in any human activity, where more people are grouped together, there is a need for a leader.

In practice there are two concepts relating to the leadership. These two concepts are often confused and misunderstood, so it is right to separate the meaning of "leadership" and "management".

Leadership is closely linked to the idea of management, so some equate the two. In most of the older and the newer literature on management theory we can find traces of leadership being as one of the functions of management. The idea is that the management focuses on coordination among the functions of the organization, including planning, organizing, staffing and control in accordance with the defined objectives. Leadership is the ability to influence, encourage and guide staff to the goals.

With leadership we focus on relationships in the performance between the manager and other employees, who can contribute to the achievement of common goals. With changing and development of society, the definition of leadership is changing. Definitions vary according to the particular problems that the authors suggest in management.

Warren Bennis has developed a split between the managers and leaders. The role of leader and manager was placed at the opposite pole, and found the following characteristics and properties described in the table.

Manager Leader

Manages. Innovates.

Is a copy. Is an original.

Maintaines. Develops.

Focuses on the systems. Focuses on people.

Relies on control. Inspires confidence.

Low versed. Highly versed.

View focuses on the final line. View focuses on the horizon.

Mimics. Is original.

Obeying orders without question. Obeying, when necessary, but thinks for himself.

Make things as needed. Doing the right things.

Asking "how" and "when." Asking "what" and "why".

Source: Warren Bennis Lerning Tues Lead: A Workbokk He Beconig A Leader. London: Nicholas Brealey Publishing, 1997.

Paul Birch sees the difference between a leader and manager and says: "As a broad generalized conclusion managers see themselves with the tasks, while leaders see themselves and the people. This does not mean that leaders are not focused on the task. The difference is that leaders pursue the purpose of the tasks that have been obtained, with approval and support of others, while the managers not necessarily do so. Acceptance and support is a result of human view on human beings and not as one of the many assets that can be created to support functions. "

Managers often have the task of organizing a source that will achieve something that needs to be done. Because people make up one of these sources, a lot of bad managers proceed with human beings as interchangeable objects. The leaders have the task of preparing for others to follow a path that was set up in order to execute the task. As an example, a company can have as a main task to create profit, but a good leader will see profits as a byproduct, which is reflected as a result of a vision that puts the organization into a competitive advantage over others.

Fairholm says that in the organization we need two different types of people: good leaders and good managers. Good managers to ensure continuated process, software productivity, and planning and control of materials needed for production and service provision. At the same time we need people to inspire the organization with shared values that define the organization and its character. It correlates with the wider society and it provides long-term survival.

Strategic Management

In the early nineties when it was found that most companies expect significant changes in the organization, employment and business culture, we can find the beginnings of strategic memagement. In the managerial theory and practice, there is no real consensus of what is strategy and how to define strategic planning. Canadian management professor Henry Mintzberg has most clearly pointed out that the time for business plans and planners is for ever gone. And there is no true success formula how to deal with such rapid change.

Lead managers can be compared to the orchestra conductor. The manager must, like the conductor, read the partiture of many instruments and coordinate the various parts of the harmony of the orchestra where the musicians play with a variety of interests and abilities. This means that the fundamental problem of management is how a multitude of managerial tasks and projects can be transferred to the other, and at the same time we take over the task of coordinating, organizing, planning and control.

Benefits of Management

One of the biggest advantages is certainly planning. If you do not know where to go, how will you know that you arrived. Or, as stated nearly four centuries ago by Spanish Jesuit Baltazar Gracian: "Think ahead, today to tomorrow and for many days ahead! The biggest caution is, if your mind what is coming. On what you are ready, it does not happen randomly, and one who is prepared is never in distress. Therefore you cannot dispose of thinking to the moment when a specified event occurs. "

Due to the rapid scientific technical development, development of job resources, new methods and technologies of work, integration of knowledge and experience comes in the organization to increasing productivity at the individual and thus also to the ever-increasing profits. Managers not only have implications for increasing productivity and hence the profit of the organization but also the culture of behavior in the organization, which leads to the values.

Since man needs order and consistency in order to find himself in an increasingly complex environment, the underlying assumptions develop into forms, patterns. In this sense, organizational culture allows the creation of routines in everyday behavior, which allow individuals more control over everyday life. It shows the culture as a factor in reducing individual uncertainty.

Managers Tasks

A successful manager mainly performs four basic functions: planning, organizing, leading and controlling.


Manager cannot allow that his organization was a matter of chance. In contrast, one of its primary tasks is that the organization will achieve its fundamental objectives, which are permanent and cannot be adjusted daily to random events in the environment. Predict what is likely to happen in the environment of the organization, details of setting goals for a specified period and routes to them, the role of management, which cannot be avoided and should not be avoided. Done by a systematic, but it can be done as a process in your mind that you do not notice others and do not know.

Although organizing, leading and controlling is a significant contribution to achieving objectives, planning is the most important. It is difficult to organize, manage and control without planning. Anyway, the inherent capacity planning and control in the absence of plans, the company's performance cannot be controlled.

Of course, planning depends on the organizational level at which the manager in the organization is. Senior manager is primarily responsible for planning strategies of the organization. Middle management is responsible for the tactical and short-term planning. At the lowest levels remains a manager primarily responsible for operational planning, and even more so for the operational plans.

Top management in the organization is still available in two basic ways to take the necessary decisions. The first is the daily coordination of decisions. It is some kind of intuitive approach, which takes place mainly in the head of one person. It is largely based on experience, the sense of business decision-making and discretion, through its manager's thinking. This means in practice is very important and by no means be underestimated. Those who are capable of such a successful way of reaching decisions, have some sort of business genius.

The second method is based on a formal system of planning, which is organized and includes a well-defined whole. It is specifically formulated process that often regulates the devices, methodologies and guidelines as to who, what, when and how what you do. It comes from the analysis. It requires the participation of more people and ends with the written plan.

Management is responsible for ensuring effective planning. Creative thinking, defining new projects and actions, their implementation and effective complementarity should be at the forefront of such planning. Successful planning must also ensure that the organization doing the right things and not be too bureaucratically driven only to maximize volume. Planning should primarily systematically generate new business ideas that are consistent with changes in the environment. The rapidly changing economic situation does not make sense to manufacture rigid plans, because the future we are not able to fully predict. For Entrepreneurial Management is most important to know at which time to make sudden changes to their plans for the most vulnerable. Is this the rise in commodity prices, or perhaps drop in demand for products.

With the clarification of planning goals and the plans that are installed in more frequent signs of successful completion or failure of the plan strengthens the feeling of performance artist. In previous discussions on the realities of plans between the planners and operators strengthening behavior of performers to the accuracy of their plans approved. That can determine at what point are a good influence on managers and planners to commit plans because they can plan if necessary, repaired, built or following it.

In the current economic situation is becoming increasingly important as a good prediction. If the organization wants to behave rationally, it must anticipate (forecast) developments in its environment. Predicting is the assessment of external, objective conditions of business within a specified time period. It is a question of what can happen and what is likely and what less likely to happen regardless of the actual situation and trends bedded events. Anticipating does not reveal the future, but only tries to show the possible future. The future does not exist, only a series of options. Therefore, each only predicts probability forecast.

Anticipating results from the set of assumptions that are more or less relevant and credible, hence the probability of outcome variables that you expect. The basic variable that is the subject of forecasting in organizations in the economy, it is usually possible sales. Since these variables are usually dependent on all others. This means that organizations, particularly economic, especially trying to predict how much demand for their existing and potential new products and services.


Once the plan is made, it must be put into practice and also carried out. Hence, there is a need for appropriate organization of work. Organizing is the process of creation, composition relationships, relationships between employees, which will allow the implementation of plans and achievement of organizational goals. You could also say, to effectively organize a feasible alignment of human and material resources. Organization's success is largely dependent on whether managers are able to make best use of available resources.

The process of organizing led to the creation of departments, job description, jobs, the training etc. which was apparent in planning activities.

The development of science and technology strongly affects the dynamics of operation of certain organizations. The more dynamic the business organization, the more likely it is to change and adapt the organizational structure of the organization. Effects on the organization of the structures is created by the rapid improvement of work processes and technology organization. Scientific technical development also leads to the development of job resources, new products, new methods and technologies work. In light of developments in science and engineering as an influential factor for the organization structures must be especially careful to shorten the time gap from discovery to its use in industry.

One of the important tasks of management of the organization is to adapt the organizational structure of any changes in the organization and the environment in which it operates. Managers must adapt to the organizational structure of all external and internal factors. An important task of leadership is adapting the organizational structure of the requirements and needs that arise in employment structure. Managers must be directed towards making the adjustments in the organization achieve consistency. If there is no consistency, there develops an informal organization, which leads to tensions between formal and informal organization.

Management of organization has some freedom in creating and adapting organizational structures. The needs and requirements of employees and management set limits to the freedom of organization structure. The more leadership is successful in adapting the organization structure, the more flexible organizational structure.

Tradition also affects the construction of organizational structure. The impact of tradition is reflected in the concept, saying if it was always like this, why would it not be like this today. If in the organization there is a conflict between formal and informal organization, the organization begins to operate on the basis of memory. In this case, start a tradition of decisive influence on the structure of the organization. Too much tradition is an obstacle to the successful operation of organizations, which inhibits creativity.


When we have a plan, targets and resources, the structure of relationships and appropriate staff, somebody should guide it. Leading includes interchange of opinions and motivate employees to carry out specified functions and achieve the expected goals. Leadership also means the design behavior of individuals and groups in carrying out tasks and achieving reasonable results. Therefore, in the process of managing many types of IT consulting, conflict resolution, assessment and promotion. Here are very important atmosphere, culture, work, team work and relationships within the organization.

Leadership differs from management. Leadership is the ability to influence, encourage and guide staff to the aim pursued. A successful manager works with team members in creating an atmosphere conducive to the achievement of organizational goals. But being a good leader does not always mean to be a good manager. It is desirable that both should be united in one person, it's the manager. In many enterprise teams are free to select leaders and then allow them to learn. Communication between the leader and his team should satisfy both sides. The members themselves elect a leader to voluntarily submit to and take his instructions. In this case, allow members to act in place of the head and then abide by its guidelines.


This is a process in which an individual, group or organization knowingly reviews the achievements and having them take appropriate action. Most often here are engaged managers at different levels, as well as others who have the task of acquiring, administered and monitored data and information. When we talk about appropriate actions, we specifically mean the potential corrective measures that are necessary when there are deviations from the initial direction.

Control is very positive process, which measures the achievement of objectives in all areas of planning, organizing and management. Control is a prerequisite for management. Just measure the achievement of goals does not make sense, if not followed by measuring the assessment and intervention may be necessary guidance.

Without effective and efficient management the organization is in poor state. Experience with organizations that decay has shown that management does not know nor how effectively the business - let alone how effective in achieving their goals. In successful organizations the control and management are the basic tools of management - and strong encouragement to all employees.

Control and management are essential for responsible action by management, are the heart of the organization to respond to rapidly changing environment is an important safeguard against human errors, which is immune against any employee in the organization.

However, it is necessary to control the assessment that the benefits of control exceed the benefits from significant cost to the organization resulting from the control. It makes no sense to control all activities and all the states in the organization. Therefore, the first place is the strategy selection or rapidly changing areas or points, which both have a significant impact on the performance of organizations that are worthy of control.

The main scope of control in organizations is certainly financial control. The starting point for financial control are the three financial statements: balance sheet, profit and loss account and the term cash flows. The next area that needs to be monitored, is the control of production. This is primarily a volume control, timing and quality. The third area that is well controlled, is the control of marketing. Basic control usually size, number and value of the contracts for individual products and services, as well as stock orders, which enables the production or performance of basic activities of the organization over the next period.

Disadvantages of Management

Today, due to rapid changes in the past, we face major challenges in business and personal life. As globalization, caused by the advanced management hardly able to readily understand the pace and we also witnessed a significant rise of the differences, they both individuals and managers find themselves under pressure from new dilemmas and questions to which there is no clear, much less reliable answers.

Television, video, telephone answering machines, electronic mail, travel is a phenomena that reflect social changes in recent years. The technology is not formed only person without character, without personalities properties, but at the same time arrange for the confusion and ambivalence. Nobody has a guaranteed place in the society anymore, also there is no more widely known rules by which people would behave. The man was thrown from a relatively stable social and cultural frameworks of their existence, is thrown from the "tradition". We cannot any longer rely on religious, nor cultural nor social traditions and there is no new frames of meaning available. We came to the stage that even the managers are increasingly losing "ground under their feet". Humanity has faced a crisis that is linked to identity.

Globalization and management have made sure of the surge in the number of new products and material well-being, man is taking all of this is increasingly lost, and therefore are increasingly looking for. For many people today is more difficult to answer the question: "Who am I?".

The classic way to manage organizations is deteriorating, managers are because of rapid changes unable to make more long-term plans, not even choose nor follow. They can do so only under certain situations. The future is no longer computable, nor predictable, but an ongoing risk that is associated with high stress.

In personal and business life today we are faced with a big unknown. Laws no longer hold. Come into question all our values, even the very meaning of our life. The old me is dying. We are placed in a world where everything is relative, where nothing is tangible.

The globalization of wealth, poverty localization

In today's time, capital and social wealth are highly globalized, while social inequalities and misery are highly localized. According to Bauman it relates to the "disappearance of work" in the absence of classic and executive, should be less and less human labor. It adds that eliminates up to now always present link between the master and the servant, who both forced into mutual relationship, a sort of agreement and cooperation. Modern capitalism no longer needs workers. Both rich and poor are increasingly living past each other.

Only 22% of the world's wealth belongs to the developing world and is home to 80% of the population. Old rich people needed the poor to become and remain wealthy, but now they no longer need them. There is less and less conflict between rich and poor, but neither is there contact nor communication. Both poles are very different, especially in the use of space and time.

Rich people can cross its real and virtual channels, while the poor real space still narrower and still more limited. An important dimension to the rich is becoming getting more time - they permanently employed and they never have the time. For them, an important part of life is time management, time economy and making time schedules. Poor, people of another world and live under the pressure of abundance of time, which is not able to meet. In their time, nothing happens, do not have it under control and the time does not have them under control, comes and goes, the time they do not represent any challenge and does not leave any traces. Wealthy people then living at the time, place them means nothing, while the inhabitants of another world (the poor) live in space - this is tough, restless, overcrowded - and they depend on it. Their time is empty.

Negative social consequences of globalization is increasingly falling upon the shoulders of individual countries must assume an increasing cost of solving social problems and unemployment. Today nobody has the answer to the question of how social justice was possible at the time of globalization, nor how to resolve this situation.

Social exclusion

If employees can be said to live more and more risky (end of lifetime services), while the unemployed live increasingly dangerous. Poverty and unemployment is becoming less sweetened class stereotypes. Qualifications for work, until yesterday, allowing the possibility of employment, now suddenly leading individual in the trembling of its existence, as there are less employment opportunities, means therefore slip into poverty. If poverty was sometimes "the fate of each class" has now become the destiny of the individual, i.e. personal destiny.

Change careers

Crossing the labor-intensive manufacturing to an information and technology eliminates many high demanding jobs or eliminates the possibility of a guaranteed job for an indefinite period. Instead, it introduces the so-called flexible employment. This means that project work linked to the temporary project work and that is a rare commodity. Such work is no longer providing physical security throughout the adult population. It is therefore a revised concept of work and employment in modern developed societies. They think critically Richard Sennett, where as for most adults developed societies also regular employment represent a basic pillar of their personal stories and the basis for any far-reaching plan of life going. Modern developed societies but are increasingly also undermines the basic foundation.

More and more people look for cheap work. No job is no longer safe. End loss of services does not appear. Many good jobs will be lost or replaced with half the services, work for a limited time and lower paid jobs. Fear for the post has been moved from factories to offices staff and captured once the most secure parts of the economy. Even bank employees with a demanding education and correspondingly high salaries will be required only on a smaller scale. Capitalists are getting richer, the working class and all the poorer.

Similar findings also provide other social scientists concerned with the fate of work and employment in modern societies. Beck notes that modern society is becoming less need of live work, because it is being increasingly replaced by automated, computer-controlled production processes. Less and less is needed by the former supervisors and managers of work. Also, this function are being transferred to computerized processes. The volume of paid work is so rapidly declining. It appears that modern developed society is moving towards' capitalism without work. "

Martin and Schumann in the pitfalls of globalization talk about emerging of one fifth of the society. One-fifth of all those who will be looking for employment, should be sufficient for the production of high valued products and services that you can afford as a global company. This 20% will be actively involved, procurement and spending - however, in which country. The other 80% will be faced with big problems. "One-fifth" company is the result of the global race for maximum efficiency and minimum wages.

Early capitalism was based on the exploitation of labor and the exploitation of modern personal liability of employees. Sometimes employees have to participate in the production of the product, but today should help to shape the company's results. Previously they had only to participate, but today they must also sense and tremble for the fate of companies. They used to be subjected to exploitation of their work by other people, today exploit themselves.

Sennet insists on the thesis that the modern working man is no longer able to develop a true identity. Modern flexible manufacturing, subject to the effects of global competition to reduce labor costs, developed in the (self-)exploitation of the vast majority simply does not allow an individual who is employed in modern enterprises, the long term and relatively reliable plan your work and your life.

Modification of traditional values

Dr. Ante Kuzmanic professor at the Faculty of Management Koper says, that people began to resist the authorities and that this is a sign that the macro-level authority is no longer prime: no church, not a political, not scientific or medical. In the absence of authority, this means that there is no power. Then it remains only a force and authority. The force, violence and authority not answer questions today and tomorrow. This is what is already here. It is not yet entirely won, so people see them, what they do. The force is already here. The force that you cannot get a job, you cannot do to train children that you cannot heal when you're sick.

It also refers to the fact that we are not in capitalism but in post-capitalism, since the good old capitalism fared relatively well compared to what it is today. The main difference lies in the fact that capitalism is based on a relatively high employment, because otherwise there will be no profits and earnings. In post-capitalism did not aim to recruit as many people, but as many people to forgive. People have become virtually obsolete. He says that this happened because people have become closely tied to the television media landscape in technology and technique, and without a sense of solidarity. The major part of their lives and conversations revolve around the dominant values that we call money. This all together has led to a fall almost all traditional values and develop a new value that is called selfishness. When all selfish, but it happens what happened.

It also argues that today's situation in a specific historical social cycle, as the generation before the French Revolution, and after literally shone on hopes of progress and faith in the future. Similarly it happened, later in the 20th century, for example, in 1968 and 1989. Here, in this situation does not see the number of options that would in any way we can talk about progress.

He says also that there manager revolution. This is special to date not yet known historical revolution, which produces abnormal mass of people, which is even worse than capitalism and socialism. By manager revolution cannot be, not social and not economic struggle. It is a political problem that should be addressed through political action.


From the foregoing there is an outcome that we as a civilization found ourselves in a very difficult situation and that the specific historical situations where, because of the rapid and sound development management, development of science with computer-controlled production processes. Of course if we take as a measure of success and profit occurred in some parts of the world to an accumulation of material goods and profits. The developed world is actually saturated with material goods, but it did not bring anyone happiness and satisfaction. More and more people live in fear of the future and are depressed.