The Importance of Management in a Business

The quality of a company’s management depends on how well it is run. The primary goal of management is to gather people and utilize their available resources as effectively as possible. The five M’s (people, money, machines, and materials) are utilized through management. In turn, this makes the company more valuable and profitable. While each of these components is crucial, there are some commonalities among them. These commonalities make the job of a manager easier and more effective.

Historically, the term management is thought to have been developed in the late nineteenth century, when labor specialization and standardization of processes began to appear. It was not until the early 1900s that the concept of management became widely recognized. By the mid-nineteenth century, one in three manufacturing companies had a personnel department, and this led to the development of management schools in universities. By that time, the word had become an integral part of the US business culture, as many companies sought new employees and needed managers.

While management has a long history, it is a relatively recent term. In reality, its roots date back to the XV century. For instance, the French word “mesnager” meant “to hold the reins of a horse. The Italian word “maneggiare” means “to handle” and the Spanish term “manejar” means “to rule or handle” were derived from the Latin words manus and agere. In other words, the term “management” is more than a verb.

Management is a complex process. Ultimately, it creates an internal environment where all factors of production are used to their maximum capacity. This includes setting and directing workflow, and controlling quality control and productivity. Good management involves a balance between efficiency and effectiveness. You must fit square pegs into round holes. If you want to manage a company well, you should consider management as a factor of production. There are a number of other functions involved in the running of a business.

The controlling function is a vital part of management. It comprises the tasks of planning, budgeting, and reporting. Traditionally, managers were a single person, but the term has been applied to a wide range of roles. Its origins can be traced back to the XV century, and the first MBA was given in 1921 at Harvard Business School. In a business, a manager performs all of these functions and more.

Traditionally, the basic task of management has been defined as ‘the art of managing people’. In Drucker’s view, it is the process of identifying, developing, and maintaining human resources. In this case, the term management refers to the art of managing people rather than to the actual process of running a business. Nevertheless, there are several variations of the definition of management. There are some similarities, but they are often categorized as different.