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What is Management? – Its Importance for your Business

Management is a process through which to organize something done and executed by some group or organization where they have a goal that can be achieved by working together. Utilizing available resources is also the support of this process. Then, an organization that is growing, of course, requires this phase to help regulate the development of its organization. 

It also has a very important function in a business, this management function is a basic element that must be embedded in management as a reference in carrying out tasks to achieve goals by planning, organizing, coordinating, and of course controlling.

For business owners, this article can provide additional information about management in a business, a deeper understanding of management.

Also read: ERP Functions for Enterprise Management Efficiency

More depth about management

Management is an art related to organizing, such as planning, building an organization and organizing it, and control or control.

Identifying this term with the world of business and offices, where management is needed to achieve personal or organizational goals. Management is also very necessary to achieve the efficiency and effectiveness of an organization’s work. You can call the person who organizes formulates and carries out various organizing the company actions as a manager.

Functions

After understanding the meaning of it, you also need to know some management functions so that you can apply them later to your business. Here are 5 main functions of it in business, namely: 

Planning

The most important thing if you want to have management in a company is planning. Of course, for best results, careful planning is required when running a business. Plan and evaluate everything that has been done or followed up in the company.

You need someone who manages the plan to look for alternatives to achieve long-term or long-term goals for the company.

For companies that do not have future plans, of course, they will not get maximum results because failure to optimize the ongoing business will have an impact on the company’s bankruptcy.

Organizing 

In business is also one of the main functions of management in business. Dividing activities according to their respective proportions because it aims for managers to carry out supervision more effectively and optimally to determine what resources for each activity to be more efficient and easier.

Staffing

Staffing staffs on the company’s determination is not much different from the previous function above, but staffing or location is more focused on general resources. Planned resources are equipment, supplies, and inventory within an organization. This means that when the organization focuses on human resources, staffing is the opposite, namely the focus on human resources.

This staffing is not much different from the previous function, but this staffing or placement is more focused on general resources.

Directing

Management functions in other businesses is an action that has an effort so that every member in a business or group can achieve predetermined targets according to predetermined managerial directions.

A manager will provide direction if there is a problem with the results or what you will do is not going to be related to the plan.

Controlling

This function consists of several activities carried out to ensure that events do not deviate from the pre-arranged plan. Its activities also consist of setting standards for work performance, and also to correct any deviations.

According to Koontz & O’Donnell, the

control/controlling function includes:

  •  Setting performance standards.
  • Actual performance measurement.
  • Measure actual performance against pre-determined standards and find out deviations.
  • Take corrective action.

Also read: Transaction Management Optimization in Business

Types of management

  1. Strategic management

This type looks at the formation and execution of overall strategy to grow and maintain a competitive advantage. Strategic management is an executive function that can report to company owners.

  1. Marketing management

The marketing type is the planning, supervision, action, and evaluation related to the process of introducing a product or service to a broad audience of consumers.

While the purpose of holding this type is so that many people are familiar with the product. They will be interested in buying the product and it means that the marketing management that was made is suitable.

  1. Supply chain management

This type can be interpreted as an integrated process that supports information systems to organize regarding product procurement and managing relationships between partners. This aims to maintain the availability of products required by the company to the maximum.

  1. Procurement management

This type is a process that ensures the availability of external goods and services required by the project. In this procurement you can determine what needs to be provided, and when you have to do it.

  1. Financial management and accounting

Finance in a company or business can be a strong foundation for the establishment of a company. Finance is also very risky, you don’t manage it properly it will become chaotic and will certainly stop the running of a company.

A company needs a separate field that will take care of the finance department or you can also call it a financial management.

Financial management is an activity of planning, managing, storing, and controlling funds and assets owned by a company.

  1. Human resource management

With HR management, employees in your company will feel more cared for and feel safe in carrying out their duties. You can make many programs and regulations to achieve an increase in the quality of work, for examples, such as annual leave, monthly compensation, and opportunities for incentives.

  1. Project management

Management in general is an effort to achieve a goal with minimal resources (efficient). Meanwhile, a project is a work plan with a certain achievement target that you can complete within a certain time frame.

Collectively, project management is an approach/method to manage a project effectively and efficiently. This system is present as a tool to help manage activities in the form of projects, such as construction projects. Without it, a project will be difficult to execute in terms of cost, time, or even quality.

Also read: Benefits of a Stock Management System for Retail

Conclusion

Management science is one of the most difficult jobs in the world of work. There’s a reason why we all have at least one annoying manager right?

For better financial and bookkeeping, you can use HashMicro software accounting to prepare to simplify your company’s accounting process as a whole and your company can automatically manage cash, financial reports, and others only with the Best Accounting Software in Indonesia.

Using this HashMicro accounting program, there are several benefits that you get, including saving time, viewing financial information in real-time, a high level of accuracy, and increasing your company’s profitability due to calculations budget to more precise and accurate. So what are you waiting for? Sign up now.

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