Management is the management of an entity, whether it’s a private organization, a government agency, or even a corporation. Managers are important since they determine the success or failure of a company. There are four key components of management which include leadership, planning, resource utilization, and control. Each of these areas of management is extremely important, but there are also some sub-components that are important as well.
Leadership is the initiating of action by the management in order to achieve some goal. This can be done through the use of managers and their team members. Managers may initiate the idea, develop a plan, and oversee the actual execution of that plan. The leadership qualities of a manager include motivating, inspiring, and inspiring his/her employees.
Planning is the direction and control of the resources in a specific sequence in order to accomplish a specific goal. In order for a manager to effectively plan, he/she must effectively manage his/her staff members. If a manager does not have effective staff members, then he will not have a plan. These five basic areas of management are involved when a manager plans, designs, and leads a plan of action.
Resource Utilization is the process by which the company utilizes the available resources in the most efficient and productive manner possible. A good manager is able to identify where the greatest opportunities exist to accomplish the desired goals. The best managers take this opportunity to utilize all available resources to achieve those goals. Effective resource utilization means that a company utilizes all of its resources to the fullest extent possible. This is very different than just using a portion of the available resources.
Control is the ability to direct and control the processes of the organization in a way that accomplishes its objectives. A good manager is able to direct, and control the processes in a way that meets the desired objectives as set forth by the group. The ultimate goal of any project or initiative is to ensure that it is successful in accomplishing its objectives. Each of the five basic areas of management is involved when a manager controls the process of the group he/she leads.
While the definition may sound complex, it really isn’t. Just remember that each area is involved in establishing the final goals of a project. When an individual begins to learn and master the five basic areas of management, they are well on their way to successfully managing the processes and people that shape their business objectives.