Management Is An Activity Commerce Essay

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Management is an activity which is required whenever there is a collection of people employed in an organisation. People in organisation execute different tasks but they all work for achieving the common objective or goal. Management targets at managing their efforts towards accomplishing the collective objectives or goals.

Management is important for each organisation- bigger or smaller, profitable or non-profitable, service or manufacturing. Management is essential so that individuals make their finest contribution to group goals.

Management is therefore distributed in three terms:-

Process: It means the main purposes or activities that management executes to get things done. These tasks are planning, organisation, staffing, directing and controlling.

Effectiveness: It is concerned with performing the accurate task, implementing activities and accomplishing objectives.

Efficiency: It means performing the task appropriately and with minimum cost. If by using less resources such as money, material, equipment's, and persons (inputs) additional benefits are resulting (outfits), it means efficiency has improved. Efficiency is also improved when, for the similar benefits or outputs, less resources are used and less costs are improved.

Therefore, management has to understand that tasks are done and goals are accomplished (effectiveness) with the minimum amount of resources at a least cost (efficiency).

» Functions of management

PLANNING: Planning is the main purpose of management. It is concerned with ends and means, what to do and how to do it. Thus, planning means setting aims and goals and formulating an achievement plan to accomplish them effectively and efficiently.

ORGANISING: Once a specific plan has been established to carry out an objective of the organization, the functions of the organization determines what activities and resources required. He decides he's going to do a particular task, which will be done and when. Therefore, the organization is the management function assignment rights, the grouping of tasks, the establishment of the authority and the allocation of resources to carry out a specific plan.

STAFFING: A very essential characteristic of management is to confirm that the right people with the right qualifications are available in the right places and times to achieve the objectives of the organization. Thus, finding the right people for the right job is well-known as staffing.

DIRECTING: Steering is telling people what to do and see that they do the best they can. Therefore, the leadership is to lead, influence and motivate employees to perform the tasks assigned to them.

CONTROLLING: Controlling is the management function of monitoring organisational performance towards the attainment of organisational goals. Thus, controlling means ensuring that activities in an organisation are performed as per the plans and the resources are being used effectively and efficiently for the achievement of predetermined goals.

» characteristics of management

Management is a aim concerned with process: An organisation has a regular of basic objectives which are the straightforward reasons for its survival. Management unites the determinations of different individuals in the organisation towards accomplishing these objectives.

Management is a collection activity: An organisation is a collection of diverse individuals with diverse needs. But as member of the organisation they work to accomplishing the mutual organisational objective.

Management is a non-stop process: management procedure is a sequence of non-stop, composite but distinct functions (planning, organising, staffing, directing and controlling). But these functions are inter-related and inter-dependent.

» Importance of management

Management helps in accomplishing group objectives: The job of a manager is to provide a mutual direction to the individual determinations in accomplishing the overall objectives of the organisation.

Management grows efficiency: The purpose of the manager is to decrease costs and increase productivity through well planning , organising, directing, staffing and controlling the activities of the organisation.

Guarantees best possible utilisation of resources: management guarantees best possible utilisation of physical and human resources by eliminating all types of depletion through planning and organising.

» Levels of management

Top level management: boards of directors, CEO, Chairmen, Managing director, general manager, president and vice president.

Middle level management: functional manager, departmental heads and other executive heads

Operational level management: supervisors, foremen, inspectors,etc.

» Nature of management as a science

Science is an organized body of knowledge that explains certain over-all truths or the operational of general laws.

Science as a systematic body of knowledge: its values are centred on cause and effects relationship.

Values based on research: scientific values are first settled through observations and then experienced through repeated research under well-organized situations.

Universal validity: scientific values have universal validity and uses.

» Nature of management as an Art

Existence of theoretical understanding: art assumes there should be some existence of definite theoretical understanding also.

Personalised application: the process of this basic knowledge contrasts persons to persons. Thus, Art is a personalised theory.

Centred on exercise and vision: all art is applied. Art includes the imaginative exercise of existing theoretical understanding.


Setting aims and goals for a particular time period and formulating an achievement plan to accomplish them effectively and efficiently. It is concerned with ends and means, what is to be done and how it is to be done. Planning seeks to tie the gap amongst where we are and wherever we want to go. Planning is a trick to capture the upcoming. It is one of the simple decision-making functions as well as it is carefully connected with imagination and advancement.

Planning involves taking decision since it includes creating a choice from different course of action. It includes setting goals and developing a suitable course of action of accomplishes these goals. Aims provide a path for all decision-making and actions.

Every organisation, whether it is government-owned, a privately owned business or a company in the private sector, requires planning.

» Features of planning

Planning emphases on accomplishing goals: planning functions of management began with purpose of goals. Once goals are decided, the next step is to fix the steps that are to be tracked to accomplish these goals. Therefore, planning is determined.

Planning is the main function of management: planning heads organising, directing, and controlling. It helps as the beginning of all other jobs of management. All other functions are executed within the context of planning.

Planning is futuristic: planning is basically frontward looking functions centred on estimating. Through predicting, future events and conditions are estimated and plans are drawn accordingly. It involves peeping into the future, future, analysing it and predicting it.

Planning includes choice and decision making: planning is basically the process of selecting the top alternative among alternative course of as achievement. If there is only one likely alternative, there is no requirement of planning as there in no superiority left.

Planning is non-stop: planning is an on-going process. Plans are organised for a particular time period. Correspondingly, as situations change, surviving plans have to be studied.

» importance of planning

Planning offers path: by declaring in advance how work is to be done, planning offers path for achievement. If objectives are well-defined, employees are responsive of what the organisation has to do and what they must do to accomplish those objectives. Departments and individuals in the organisation are capable to work in coordination. Planning retains the organisation on the accurate track.

Planning decreases the threat of uncertainty: with the support of planning, managers can recognise possible dangers and steps to overcome them. Therefore, planning gives reliefs to decrease risk and uncertainty.

Planning helps in decision-making: decision-making includes searching for different alternatives courses of achievement, evaluating them and choosing the best course of achievement.

Planning decreases overlapping and careless actions: as planning guarantees simplicity in thoughts and action of work is approved on smoothly without interruption. Useless and redundant activities are reduced. It is easier to identify efficiencies and take accurate actions to deal with them.

Planning helps innovative concepts: planning is thoughtful in advance and, thus, there is a possibility of finding well-thoughtful and better techniques and processes to reach the aims / goals of the enterprise.

» Limitations of planning

Planning does not work in forceful environment: the business background is self-motivated, nothing is continuous. The environment comprises of a number of dimensions- economic, political, technological, legal and social dimensions.

Planning is a time consuming procedure: planning is a time consuming procedure. It involves group of information, it studies and understands. These actions may take huge time.

Planning includes huge cost: once plans are drawn up huge cost are applied in preparation of plans.

Planning does not promise achievement: the achievement of an enterprise is likely only when plans are correctly drawn up and executed.

» steps involved in planning process:

Setting organisational goals: the first and the primary step in the planning procedure is setting organisational aims or goals, which require what the organisation wants to accomplish.

Developing planning principles: planning is concerned with the upcoming, which is undefined. Thus, the manager is essential to make definite assumptions about the upcoming. These assumptions are so-called principles.

Classifying alternative course of achievement: when goals are set and assumptions are prepared, at that time the next step is to recognize all likely alternative course of achievement.

Evaluating alternative courses: The positive and negative aspects of each proposal need to be evaluated in the light of the objective to be achieved, its feasibility and consequences.

Choosing the finest possible substitute: This is the actual point of decision making. The finest / perfect plan has to be embraced, which necessarily will be the most achievable, money-making and least undesirable consequences.

Executing the plan: As soon as plans are settled, they are placed into achievement. For this, the managers talk the plans to all the employees very noticeably and assign them resources

Follow up achievement: The managers observers the plan wisely to confirm that the principles are holding true in the current situation or not. If not, corrections are made in the plan.

Types of plans

Objectives: objectives are well-defined as ends which the management pursues to accomplish by its actions.

Strategies: A strategy refers to upcoming decisions describing the organisation's path and possibility in the long run.

Policies: policies are universal statements or considerations which directors thinking in decision making.

Procedures: A procedure is a consecutive sequence of routine stages on how to carry out actions. They detail the exact way in whichever work is to be completed.

Rules: rules are definite statements that update what is to be done.

Methods: methods are identical ways or manner in which a job has to be completed seeing the objectives.

Programmes: programmes are the mixture of objectives, strategies, techniques and rules. All these plans composed form a programme.

Budget: a budget is a statement of estimated results conveyed in numerical terms for a confident period of time in the upcoming.


Organising can be well-defined as a procedure that initiates execution of plans by clarifying jobs and operational relationships and effectively organizing resources for achievement of identified and wanted outcomes / objectives.

Everything that is commonly well-thought-out organized when it looks that everything has an command or placement. However it is only in the end that is organized if an element has no dissimilarity in the time taken to find it. In this sense, the organization can also be well-defined as to place different things in logical plan for better research.

Steps involved in the organising process.

Identification and separation of work: the main procedure of organising includes identifying and sharing the total work to be completed into definite activities in accordance with earlier determined plans. There are certain reasons why separation of work is required:

- one individual cannot complete the whole work. By distributing the work, the load of work can be shared between employees.

- it facilitates specialisation of work and abilities.

- the work is shared into controllable activities so that repetition can be avoided.

2. Departmentalisation: the next step in organising is to combine or set similar / correlated job into bigger units called departments, separations or sections. This grouping is well-known as departmentalisation. It can be created on the basis of:

- Territory.

- Products.

3. Assignment of responsibilities: Once departments have been designed, each of them is located under the responsibility of an individual, called departmental head. Then the jobs are assigned to each member of each department according to their abilities.

4. Forming reporting relations: Only assigning work is not sufficient. Each individual should also identify from whom he has to take instructions and whom he is answerable.

Importance of organising

» Benefits of specialisation: in the procedure of organising the actions are assembled very wisely into focussed jobs on the basis of similarity.

» Effective administration: organisation offers a clear explanation of jobs and interrelated duties. This helps to avoid misunderstanding and repetition. Clarity in working relationship allows proper implementation of work. This brings effectiveness in administration.

» Development and growth: organising helps in the development and diversification of an enterprise. It permits a business enterprise to add additional job positions, departments and even differentiate their product lines. New geographical territories can be added to existing areas of operation and this will help to growth customer base, sales and profits.


Leading is sub divided into two parts:

- Staffing.

- Directing.


» Staffing: staffing is the decision-making function of satisfying and keeping complete positions in the organisation structure. This accomplished by, first of all, recognising requirement of work force, followed by recruitment, selection, placement, promotion, appraisal and development of personnel, to fill the roles designed into the organisation structure.

» Need of Staffing

- Attaining knowledgeable personnel: Appropriate staffing helps in determining and obtaining knowledgeable personnel for different jobs.

- Higher performance: Appropriate staffing guarantees developed performance by positioning right person on the right job.

- Constant growth and survival: Appropriate staffing guarantees continuous existence and growth of the enterprise.

- Develops job satisfaction: Appropriate staffing develops job satisfaction and confidence of employees through objective assessment and fair fulfilling of their contribution.


» Directing: directing is telling people what to do and seeing that they do it to the best of their capability. The four features of directing are supervision, motivation, leadership, motivation and communication.

» Features of Directing.

- Directing is a pervasive function of management: It takes place at all level of management. Each manager, from top executive to supervisor, achieves the functions of directing. Directing takes place whenever superior-subordinate relations exist.

- Directing is a constant procedure of supervision, communication, leadership and motivation. It takes place all the way through the life of the organisation irrespective of people occupying decision-making positions.

- Directing runs from top to bottom: Directing is main initiated at top level and runs to the bottom through organisational hierarchy. It means that all manager can direct his instantly subordinate and take instructions from his instant boss.

There, directing is the heart of the management process.


Definition of Controlling

Decision-making controlling involves the measurement of the achievement beside the standards and the rectification of deviations to guarantee accomplishment of objectives according to plans. Control is the soul of business management.

Importance of controlling

» controlling helps in achieving organisational goals: the first step in management is setting organisational goals and establishing procedure to achieve them. The objectives may be in relations of a target profit, target sales or target production. Though, definite performance may or may not essentially be according to plan.

» controlling supports in judging accuracy of standards: an efficient control system supports management to confirm whether the standards set are correct and objective by keeping a careful check on the alterations taking place in the organisational and in the environment.

» controlling supports in making efficient usage of resources: by exercising control, a manager pursues to decrease wastage and spoilage of resources. Each activity is completed in accordance with predetermined standards. Thus guarantees effective and efficient use of resources.

» controlling supports in improving employee motivation: a decent control system guarantees that employees known well in advance what they are estimated to do and what are the standards of performance on the basis of which their performance will be estimated. It, thus, motivates them and supports them to give superior performance.

Limitation of Controlling

» struggle in setting quantitative standards: control system loses its effectiveness when standards cannot be well-defined in a quantitative terms. This makes measurement of performance and their comparison with standards of tough tasks.

» no control on external factor: an enterprise cannot control external factors such as government policies, technological changes, competitions, etc.

» resistance from employees: control is frequently repelled by employees. They understand to it as a curb to their freedom.

» costly affairs: control is a expensive affair as it includes a lot of expenditure, time and determinations. A small enterprise cannot afford to install an lavish control system.