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The definition of management, the reasons why management is needed, the

functions and process of management, the roles and skills of management

Group 2

Putu Shandya Maharani ( ) (1506305117)

Made Cahyani Prastuti (17) (1506305144)


I Gst. Ayu Dewi Adnyani, SE., M.Si

(19690428 199603 2 004)

Universitas Udayana

Faculty of Economics and Business



Praise to God who has helped his servant finish this paper with great ease. Without
help she may not be able to complete the authors well.

The paper is organized so that readers can find out about the definition of
management, the reasons why management is needed, the functions and process of
management, the roles and skills of management. This paper set up by the compiler with
various obstacles. Whether it came from self constituent or who come from outside. But with
patience and especially the help of God finally this paper can be resolved.

Authors also thank the lecturers who have helped to finish this paper.
Hopefully this paper can provide a broader insight to the reader. Although this paper has
advantages and disadvantages. Authors beg for advice and criticism. Thank you.





CONTENT ... iii


1.1 Background 1
1.2 Formulations .. 1
1.3 Purposes . 1


2.1 The Definition of Management . 2

2.2 The Functions and Process of Management . 2
2.3 The Functions and Process of Management . 3
2.4 The Roles and Skills of Management .................... 6


BIBLIOGRAPHY .................. 9



1.1 Background
You may be wondering why you need to study management. If youre majoring in
accounting or marketing or any field other than management, you may not understand how
studying management is going to help you in your career. Just how universal is the need for
management in organizations? We can say with absolute certainty that management is needed
in all types and sizes of organizations, at all organizational levels and in all organizational
work areas, and in all organizations, no matter where theyre located. Management is
universally needed in all organizations, so we want to find ways to improve the way
organizations are managed. Why? Because we interact with organizations every single day.
Organizations that are well managedand well share many examples of these throughout
the textdevelop a loyal customer base, grow, and prosper, even during challenging times.

1.2 Formulations
The problem discussed can be stated as follows:
1. What is definition of management?
2. Why management is needed?
3. What is function and process of management?
4. What are the roles and skills of management?

1.3 Purposes
1. To know what is the definition of management
2. To know why management is needed
3. To know what is the function and process of management
4. To know what are the rules and skills of management



2.1 The Definition of Management

1. Management is the process of using organizational resources to achieve
organizational goals effectively and efficiently through planning, organizing,
leading, and controlling. Management is also an academic discipline, a social
science whose object of study is the social organization. More specific,
Management is a knowledge that help people solve their problem with the help
from the others.
2. Management is what managers do in an organization.
3. Manager is a person that responsible for supervising the use of an organizations
resources to meet its goals.
4. An organization is a collection of people who work together and coordinate their
actions to achieve a wide variety of goals.
An efficient organization make the most productive use of its resources. An
effective organization pursues the appropriate goals and achieve these goals by
using its resources to create goals or services that customers want.
Resourcing encompasses the deployment and manipulation of human resources,
financial resources, technological resources, and natural resources. Management is also an
academic discipline, a social science whose object of study is the social organization. More
specific, Management is a knowledge that help people solve their problem with the help from
the others.

2.2 The Reasons Why is Management Needed

The reason why management is important are to achieve the organizational goals
effective and efficiently. Since organizations can be viewed as systems, management can also
be defined as human action (including design) to facilitate the production of useful outcomes
from a system. Therefore, management is needed in order to facilitate a coordinated effort
toward the accomplishment of the organization's goals.

Since most managers are responsible for more work than one person can normally
perform, a good manager delegates and integrates his or her work (or the work of others). A
manager does this by acting as a clear channel of communication within the business that he
or she serves. Good management is needed to inject motivation, creativity, discipline, and
enthusiasm into areas in which they either don't exist or they're not necessarily wanted. So
does managers do matters because of their jobs is to ensure that all the works are done so the
organization can do what its in business to do.

2.3 The Functions and Process of Management

Functions of Management
The essential elements or components of management function are four.

1. Planning. Planning is the primary function of management. It involves determination

of a course of action to achieve desired results/objectives. Planning is the starting
point of management process and all other functions of management are related to and
dependent on planning function. Planning is the key to success, stability and
prosperity in business. It acts as a tool for solving the problems of a business unit.
Planning plays a pivotal role in business management it helps to visualize the future
problems and keeps management ready with possible solution.
2. Organizing: Organizing is next to planning. It means to bring the resources (men,
materials, machines, etc.) together and use them properly for achieving the objectives.
Organization is a process as well as it is a structure. Organizing means arranging ways
and means for the execution of a business plan. It provides suitable administrative
structure and facilitates execution of proposed plan. Organizing involves different
aspects such as departmentalization, span of control delegation of authority,
establishment of superior-subordinate relationship and provision of mechanism for
co-ordination of various business activities.
3. Directing (Leading): Directing as a managerial function, deals with guiding and
instructing people to do the work in the right manner. Directing/leading is the
responsibility of managers at all levels. They have to work as leaders of their
subordinates. Clear plans and sound organization set the stage but it requires a
manager to direct and lead his men for achieving the objectives. Directing function is
quite comprehensive. It involves Directing as well as raising the morale of

subordinates. It also involves communicating, leading and motivating. Leadership is
essential on the part of managers for achieving organizational objectives.
4. Controlling: Controlling is an important function of management. It is necessary in
the case of individuals and departments so as to avoid wrong actions and activities.
Controlling involves three broad aspects:
a. establishing standards of performance,
b. measuring work in progress and interpreting results achieved
c. Take corrective actions, if required. Business plans do not give positive
results automatically.

Managers have to exercise effective control in order to bring success to a business

plan. Control is closely linked with other managerial functions. It is right treated as
the soul of management process. It is true that without planning there will be nothing
to control it is equally true that without control planning will be only an academic
exercise Controlling is a continuous activity of a supervisory nature.

We may add some more elements in the management process. Such elements are :

1. Motivating: Motivating is one managerial function in which a manager motivates his

men to give their best to the Organization. It means to encourage people to take more
interest and initiative in the work assigned. Organizations prosper when the
employees are motivated through special efforts including provision of facilities and
incentives. Motivation is actually inspiring and encouraging people to work more and
contribute more to achieve organizational objectives. It is a psychological process of
great significance.
2. Coordinating: Effective coordination and also integration of activities of different
departments are essential for orderly working of an Organization. This suggests the
importance of coordinating as management function. A manager must coordinate the
work for which he is accountable. Co-ordination is rightly treated as the essence of
management. It may be treated as an independent function or as a part of organisms
function. Coordination is essential at all levels of management. It gives one clear-cut
direction to the activities of individuals and departments. It also avoids misdirection
and wastages and brings unity of action in the Organization. Co-ordination will not
come automatically or on its own Special efforts are necessary on the part of
managers for achieving such coordination.

3. Staffing: Staffing refers to manpower required for the execution of a business plan.
Staffing, as managerial function, involves recruitment, selection, appraisal,
remuneration and development of managerial personnel. The need of staffing arises in
the initial period and also from time to time for replacement and also along with the
expansion and diversification of business activities. Every business unit needs
efficient, stable and cooperative staff for the management of business activities.
Manpower is the most important asset of a business unit. In many organizations,
manpower planning and development activities are entrusted to personnel manager or
HRD manager. 'Right man for the right job' is the basic principle in staffing.
4. Communicating: Communication (written or oral) is necessary for the exchange of
facts, opinions, ideas and information between individuals and departments. In an
organization, communication is useful for giving information, guidance and
instructions. Managers should be good communicators. They have to use major
portion of their time on communication in order to direct, motivate and co-ordinate
activities of their subordinates. People think and act collectively through
communication. According to Louis Allen, "Communication involves a systematic
and continuing process of telling, listening and understanding".

The elements in the management process are actually the basic functions of management
these functions constitute the management process in practice. Management process is in fact,
management in practice. This process suggests what a manager is supposed to, do or the basic
functions that he has to perform while managing the job assigned to him.

Meaning of Management Process

The term management is explained in different ways. For example, it is said that
management is what management does. Here, management is explained with reference to its
basic functions which include planning, organizing, coordinating and controlling. Similarly,
management is described as a process which involves various elements. Management process
is a continuous one and is run by the managers functioning at different levels. Management is
now recognized as a distinct process in which managers plan, organize, lead, motivate and
control human efforts in order to achieve well defined goals. In fact, process means a series
of activities/operations undertaken/conducted for achieving a specific objective. Process is a

systematic way of doing things. For example, in a factory there is a production process.
Similarly, in the management process, resources and human efforts are used in an orderly
manner for achieving specific objectives. The management process suggests functions to be
performed by the managers.
Based on the essential and addition functions if we combined it, we can simplified the
process of management only it essentials function (because of the additional functions are
include to essential function). We can figure the process of management with the essential
function in the figure below.


Controlling Organizing


2.4 The Roles and Skills of Management

Management Roles

According to Henry Mintzberg (1973), management roles are as follows:

1. Informational roles: This involves the role of assimilating and disseminating
information as and when required. Following are the main sub-roles, which managers
often perform:
a. Monitor-collecting information from organizations, both from inside and
outside of the organization.

b. Disseminator-communicating information to organizational members
c. Spokesperson-representing the organization to outsiders
2. Decisional roles: It involves decision making. Again, this role can be subdivided in to
the following:
a. Entrepreneur-initiating new ideas to improve organizational performance
b. Disturbance handlers-taking corrective action to cope with adverse situation
c. Resource allocators-allocating human, physical, and monetary resources
d. Negotiator - negotiating with trade unions, or any other stakeholders
3. Interpersonal roles: This role involves activities with people working in the
organization. This is supportive role for informational and decisional roles.
Interpersonal roles can be categorized under three subheadings:
a. Figurehead-Ceremonial and symbolic role.
b. Leadership-leading organization in terms of recruiting, motivating etc.
c. Liaison with external bodies and public relations activities.

Management Skills
A manager's job is varied and complex. Managers need certain skills to perform the
duties and activities associated with being a manager. What type of skills does a manager
need? Robert L. Katz (1974) found that managers needed three essential skills:

1. Technical skills. The ability is to apply specialized knowledge or expertise. All

jobs require some specialized expertise, and many people develop their technical
skills on the job. Vocational and on the job training programs can be used to
develop this type of skill.
2. Human Skills. This is the ability to work with, understand and motivate other
people (both individually and a group). This requires sensitivity towards others
issues and concerns. People, who are proficient in technical skill, but not with
interpersonal skills, may face difficult to manage their subordinates. To acquire
the Human Skill, it is pertinent to recognize the feelings and sentiments of others,
ability to motivate others even in adverse situation, and communicate own
feelings to others in a positive and inspiring way.
3. Conceptual Skills. This is an ability to critically analyze, diagnose a situation and
forward a feasible solution. It requires creative thinking, generating options and
choosing the best available option. A mark of a good leader is to be able to

provide consistent motivation to his team encouraging them to attain excellence
and quality in their performance. A good leader is always looking for ways to
improve production and standards. Here are six management skills you can
develop as a leader in working to create a quality effective team.



3.1 Conclusion

From this paper we knew that management is the process of using organizational
resources to achieve organizational goals effectively and efficiently through planning,
organizing, leading, and controlling. Management is important are to achieve the
organizational goals effective and efficiently. The essential elements or components of
management function are four. The four functions are planning, organizing, leading and
controlling. Informational role, decisional roles, interpersonal roles are managements roles.
Meanwhile, Technical skills, human skills conceptual skills are skills of management.


Jones, Gareth R & Jennifer M George. 2011. Contemporary Management, 7th Edition.

Mc Graw Hill & Irwin. New York.

Robbins, Stephen P & Mary Coulter. 2012. Management, 11th Edition. Pearson Education,
Inc. New Jersey.