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What is Management? Why Does it Matter?

Management is defined as the process of dealing with or controlling things or people (Oxford Dictionary). Management is derived from managerial power; it encourages stable functioning environment. This essay will highlight the role of management and the four functions of management and will identify how efficiency and effectiveness are key objectives for managers to fulfill. Furthermore this essay will aim to identify the importance of good management and why management is fundamental in an organisation.

Managers are generally elected by someone higher up in the organisation and their management is a direct result of procedures and guidelines they must follow. When comprising group work or teamwork in an organisation the end result is a clear indication of the communication skills and delegation skills by the manager and leaders (Eunson 2012). Efficiency and effectiveness are key objectives for managers to fulfill. The role of management is extensive and can cover not just the smooth running within a company but also the external factors associated with the company such as stakeholders and other workplaces with which certain business is conducted (Sappy, 2009). Being able to identify problem areas and change areas within a company and to redefine the organizational structure whilst keeping the firm efficient is a challenge, gauging a managers response to the change and ability to apply and optimize the changes in tune with the goals of the specific firm is essentially the role of management in a workplace (Sinclair and Collins 1992).

Management is made up of four functions; planning, organising, leading and controlling. These four functions are key to the smooth running of a workplace and ensure that all aspects of the company are covered in regards to management of people, places and resources relevant to the objectives set out for a particular firm. The first component is planning. A manager must define what goals are relative to the organisation and how best to achieve these goals. Generally the business will have mission statement and a manager will keep this in mind when developing a plan. Two critical components of the planning function are setting objectives and following up on the execution of the plan. The second function of management is organising. The goal of a manager is to organise and structure an environment that allows other people to engage, and collaborate to meet the criteria needed for that particular organisation to function efficiently (Samson & Daft, 2012) managers are responsible for not only organising the people within a company but also the resources. Managing the staff and ensuring the correct amount of staff are rostered on to ensure that the business is running at full efficiency and also that the staff are well equipped with the correct resources to properly complete their tasks. Leading is the third management function. Ideally a person in a management position will have a balance of both management and leadership qualities, the two practices are highly inter-related and when integrated together is a functional resource to an organisation. Managers who wish to not only manage their employees but lead them effectively need to comprehend what motivates them to reach the company’s objectives. The last management function is controlling. Management has what is referred to as ‘position power’. Forms of positional power are legitimate power, reward power and coercive power. These powers exist due to the rules and regulations set in place by the organisation. (Samson & Daft 2012).  The controlling function of management is making sure that the performance is being met and making sure that the manager is aware of the goals and progress of these goals. The role of a manager is to keep the employees motivated and goal orientated in the same direction of the organisation for which they work for.

Management plays a vital role in any organisation. Management helps an organisation to achieve goals, allows the organisation to survive in a changing environment and establishes a sound organisation. Good management can also reduce turnover and absenteeism and retain an organisations most productive employee.  Turnover is determined by many factors including the work environment, peer relationships and organisational culture. Motivating employees to take more interest in their work can reduce turnover and also raise productivity in the workplace. High turnovers can be exceedingly costly to an organisation and negatively impact an organisations reputation. Management significantly impacts organisations as it allows the business to function smoothly and increase profitability and productivity.

In summation, this essay has identified the importance of management and its impact on organisations. By drawing attention to the role of management and the four functions of management it is apparent that the aforementioned are key to the smooth running of an organisation. Finally this essay explains the impact of management in an organisation by drawing attention to reduced turnover and absenteeism.


Eunson, B. (2012). Communicating in the 21st century. Milton, Qld.: John Wiley and Sons Australia.

Nankervis, A. (2010). Human resource management. 1st ed. South Melbourne, Vic.: Cengage Learning,. (2010). management – definition of management in English from the Oxford dictionary. Retrieved 10 August 2015, from

Samson, D., & Daft, R. (2012). Fundamentals of management. South Melbourne, Vic.: Cengage Learning Australia.

Sappey, R. (2009). Industrial relations in Australia. Frenchs Forest, N.S.W.: Pearson Education.

Sinclair J and Collins D. (1992). Role of management. Leadership & Organization Development Journal, 13(3), 11.

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