Studying Management
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Discuss the importance of studying management. List at least five(5) rewards and five(5) challenges of being a manager.
“As a manager the important thing is not what happens when you are there, but what happens when you are not there.” – Ken Blanchard
According to Wikipedia, management comprises directing and controlling a group of one or more people or entities for the purpose of coordinating and harmonizing that group towards accomplishing a goal. Why is it important to study management?
As quoted above, the need for management in an organization, whether it be a large enterprise, governmental entity, school or community, is extremely and essentially important to achieve an organizations ultimate desired goals. With good management, an organization is able to operate efficiently and effectively, at all times. Evidence of management can be traced back to as far as the pre-modern ages when management thoughts are developed by the builders of pyramids of the Ancient Egypt. In his proven discovery, Dr. Zahi Hawass states that pyramid builders were conscripted on a rotating part-time basis, working under the supervision of skilled artisans and craftsmen. Besides, this is further evidenced by the fact that there were titles given to these so-called “management group” e.g. “overseer of the side of the pyramid”, ” director of the draftsmen,” “overseer of masonry,” “director of workers,” and “inspector of the craftsmen”. These people were once artisans and administrators who designed and oversaw the construction of the pyramids. Thus, it is proven that management of tasks and workers does exist in the pre-modern past and is of great importance in order to establish great achievements, same for the modern organizations today.
To be equipped with good management knowledge and skills to manage an organization, in the case of a business, is a managers utmost priority for studying management. Allow me to reveal the importance of studying management, by looking into details the 4 major function of management – Planning, Organizing, Leading and Controlling.
By studying management, a manager is able to perform the Planning function effectively- i.e. to realize a companys potential, recognize the power of competitive advantage, set goals and design the best methods of improving these advantages, so to achieve these goals. Besides, one is capable to plan for an effective capital allocation — namely, how the companys money should be spent so that organizational goals are achieved effectively and efficiently. Therefore, this management knowledge is essential for a business organization as the dollar “$” sign is concerned. In his/her managerial role as a decision maker, money is involved in almost every decision a manager makes. For example, studying management enables a manager to plan how a large pool of capital should be divided optimally according to an organizations set of priorities and goals A brilliant planning would result in millions, or even billions worth of profit, whilst, a bad one would result in substantial losses or even bankruptcy. Hence, studying management prepares the managers the essential skills to plan effectively as a decision-maker, so that the risks of business failure are minimized.
In the Organizing part of management function, managers are responsible for allocating and arranging resources, e.g. human resources, raw materials, monetary resources etc. It involves establishing the internal organizational structure of the organization. Because of scarce resources, studying management is important for managers to attain an adequate amount of management skill as a resource allocater, so that a manager is capable for the division, coordination, and control of tasks and the flow of information within an organization, by means of arranging both human and non-human resources effectively and efficiently. Effective allocation of resources indicates arranging resources in the correct quantities to their optimum uses. For instance, an effective manager determines how a main plan is divided into smaller tasks and who is the right employee to do each of the tasks. Efficient allocation of resources means getting the most output from the least amount of inputs. For example, the Just In Time inventory system is a good management tool used by managers to order just the amount of stocks needed. Hence, costs are minimized and profit margins are broadened, by reducing wastage or duplication of resources on unnecessary usage. This can only be achieved when a manager is equipped with the appropriate management skills and knowledge through studying management.
Studying management also helps to equip managers the appropriate human skills, so he is able to perform the Leading function of management effectively. Studying management offers a thorough grounding in the theory of management studies and the intellectual skills of the social sciences. Managers get to learn about how managers from different times manage their workers and the intellectual skills needed in motivating subordinates to have the appropriate behaviour towards accomplishing organizational goal. For instance, the scientific management theory utilizes wage increase as a motivation tool to encourage workers to produce more whilst the behavioural management theory believes that workers productivity can only be improved by providing a better working environment. With a variety of knowledge on different kinds of management thought, a manager is able to analyze and select the appropriate theory and skills to use for different situations, i.e. a common theory today – the contingency approach. Therefore, as an effective leader, a manager is able to create a working environment in which employees are able to perform effectively, provide positive feedbacks, contribute creative ideas, willing to accept changes and reduce conflicts.
Controlling denotes monitoring and comparing the performance of a plan with expected results as well as correcting any deviations from the standards. A manager, through studying management, will then be able to utilize the appropriate measuring tools for comparison, e.g. the use of sales budget, profit and loss account, balance sheet etc. As these mostly involve algebraic figures and complex mathematical calculations, managers without the adequate knowledge of financial accounting will find it difficult to interpret these financial reports. For example, an organizational short-term goal is to increase production sales by 10%. An effective monitor