What is Management Process: Features and Functions? (2024)

It is imperative for businesses intending to prosper amid intense competition to understand the management process. The process of management is a series of steps that are used to perform business operations. This involves planning, organizing, leading, and controlling activities through the proper use of resources to realize organizational goals. In maximizing resources that would meet a business' objectives, the management process involves a careful strategy for both human and material resources.

As we proceed further, we will elaborate on important key concepts and real-world applications that highlight the dynamic nature of management. In this article, you will learn the definition of management process, the nature and significance of the management process with an example.

What is Management Process?

Management is a process of planning and controlling the activities of a business or other organization. One key aspect of the management process is project management, which involves the application of knowledge, skills, tools, and techniques to a specific project in order to meet its requirements and objectives. The meaning of project in this context refers to a temporary and unique endeavor that is undertaken to create a specific product, service, or result. Product management processes include:

1. Planning:This involves determining what needs to be done when it should be done, who will do it and how much it should cost. Planning also includes developing strategies for achieving goals that meet the needs of stakeholders (e.g., customers).

2. Organizing:Organizing requires grouping people into teams according to their skills or knowledge so they can work together effectively. Organizing ensures that employees have the right resources available when they need them. For example, if one employee needs access to another employee’s computer files while they are on vacation, then both employees should be part of the same team so they can share those files easily via email or cloud storage services like Dropbox or Google Drive.

Salient Features of Management Process

The management process is essential for achieving organizational excellence by directing actions towards defined goals, ensuring integration and flexibility. It ensures the organization operates smoothly toward achieving strategic goals.

Below are the salient features of the management process.

Goal Orientation:

1. Every action is focused on achieving defined objectives.
2. Ensures clarity and purpose in organizational activities.

Integration:

1. All parts of the organization work synergistically towards a unified purpose.
2. Enhances operational coherence and coordination.

Flexibility:

1. Allows for swift adaptation to changing environmental conditions.
2. Maintains relevance and competitiveness in dynamic markets.

Iterative Nature:

1. Involves constant evaluation and refinement of processes.
2. Promotes effectiveutilizationof resources.

Types of Management Process

In Business management process, here are the types of management processes:

• Strategic Management
• Tactical Management
• Operational Management
• Financial Management
• Human Resource Management
• Risk Management
• Change Management

Management Process Example

Imagine you're a project manager planning a team outing. The product management process is like your roadmap for this activity. It involves two key phases: planning and execution.

Planning focuses on defining the goal (fun team outing!) and exploring options. Brainstorming with colleagues or reviewing past outings helps identify possibilities. You then weigh factors like feasibility and cost to choose the best option.

Execution involves creating a detailed plan (transportation, activities, budget) and presenting it to your team. Once everyone's on board, you put the plan into action – the team outing!

This example illustrates the essence of a product management process – a structured approach to achieve a goal. Remember, there's no single "best" way. The key is to choose a process that works best for you and your team.

Engage with the top trending KnowledgeHut's Project Management Courses:

The Importance of Management Process

The product management process is very crucial for an organization. It is a set of activities that must be performed to achieve organizational goals.

The following are some facts about the management process:

1. What is the management process definition? It refers to a series of activities performed by managers to achieve organizational goals. These management process steps aim to identify, analyze and solve problems related to performance or efficiency within an organization. When these tasks are done successfully, organizations succeed in achieving their goals. This can be accomplished through different tools like SWOT analysis, PESTEL etc.
2. What are the features of the management process? There are several features associated with this tool which include: identifying problems within an organization, analyzing them accordingly, and resolving them by implementing solutions through various methods, such as training employees on new technologies while also evaluating time constraints before finalizing any decision made by top-level management members.
3. What are the types of the management process? There are two management processes: Management by Objectives (MBO) and Management by Results (MBR). Both these tools have their advantages and disadvantages.

Management by Objectives (MBO) is a style that focuses on achieving organizational goals through different methods, such as training employees on new technologies and evaluating time constraints before finalizing any decision by top-level management members. This tool allows organizations to identify their strengths, weaknesses and improvement opportunities to succeed in the long run.

What is the Nature of the Management Process?

The process of management is a system that combines all of an organization's activities to achieve its goals. It involves planning, organizing, leading, and controlling. The term ‘management’ refers to managing an organization through its functions and activities using certain principles and methods.

The product management process flow can be explained below:

1. Planning:This step is where you create a detailed action plan for your business goals with expected results in mind (e.g., increased sales).
2. Organizing:This step involves arranging people, materials, machines, equipment and money to achieve set objectives (e.g., organize human resources by team structure).
3. Leading:This step is about motivating people/workers to perform better at their tasks (e.g., encouraging workers through incentives such as bonus schemes).
4. Controlling:This step deals with measuring performance against corporate standards or targets set at earlier stages.

Examine the top trending KnowledgeHut's Category Courses:

 The best option to understand the management process in depth is to undertake Product Management Training, which helps you learn practically with dummy projects.

Elements of Management Process

The management process is a set of activities that are performed to achieve organizational goals. It comprises three major components:

• Planning
• Organizing
• Controlling

Planning is the process of defining the objectives of an organization, determining how those objectives can be achieved, and specifying the resources needed to achieve them. Organizing is the process of grouping people and resources together to work effectively toward accomplishing a common goal. Controlling is the process of ensuring that plans are carried out as intended so that an organization achieves its goals.

The three components of the management system are interrelated and work together to achieve organizational goals. Planning sets a direction for an organization that can be accomplished through organizing and controlling. The planning process is a continuous cycle, not a one-time event. The organization must plan throughout its existence.

Planning is a continuous cycle of activities that help organizations identify their goals, develop strategies for achieving them, allocate resources to achieve them, monitor progress toward meeting objectives and change course if necessary.

Top Cities where KnowledgeHut Conduct Project Management Certification Training Course Online

Management Process Functions

Planning is one of the most important management process functions. It involves making short-term and long-term plans, followed by subsequent action to achieve goals. The process involves creating strategies and anticipating potential problems that may arise while implementing these goals. You can undertake Project Management Courses to help you get started as a project manager and learn skills essential to project management.

• The second step of the management process involves organizing, which means breaking down an entire project into smaller chunks that you can manage more easily. This helps ensure smooth execution across all aspects of the project.
• Leading means motivating people towards achieving their individual goals and aligning them with company goals through motivation techniques like recognition management process programs or bonuses based on performance targets achieved by each employee.
• Controlling refers to monitoring whether your employees are meeting both planned and actual deadlines for the completion of tasks assigned to them under their respective roles within your organization.
• Managing projects effectively is important because it helps keep your organization running smoothly and efficiently. It also helps you achieve your business goals on time, within budget and with high quality.

If you want to manage projects effectively, here are some tips that can help: 

1. Focus on the outcome of your project rather than on how it will be achieved. 
2. Use a project management software tool like Nifty to keep track of all tasks, milestones and deliverables, or start using a business process management software to keep track of all your business processes. This will make tracking progress easier.
3. Create a project schedule and make sure that everyone involved in the project understands it. 
4. Hold regular meetings to discuss progress and issues.

Classification of Management Functions

The management functions are classified into four categories:

1. Planning and Organizing

It deals with preparing plans for the future, establishing organizational structure, assigning responsibilities to various departments and setting up procedures for their smooth functioning.

2. Controlling

This involves monitoring progress toward achieving goals and checking whether there is any deviation from these goals or not. This also includes getting feedback from customers on how satisfied they are with products/services provided by an organization so as to improve on them if required. In addition, this function ensures that all activities are carried out in accordance with plans made earlier to achieve maximum results at minimum cost while maintaining quality standards at all times.

3. Staffing

Organizations have developed recruitment policies that ensure that the right people are recruited at the right places based on their qualifications, skills, etc. so that productivity can be maximized along with customer satisfaction levels being maintained at high levels throughout business cycles.  Staffing includes both recruitment activities and development programs like training programs offered by top universities around the globe like Harvard University, where students get a chance to learn things related to business strategies.

Maximize your team's potential with Agile Methodology certification. Become certified in the game-changing methodology.

Conclusion

In conclusion, understanding what the management process involves is critical for an organization to attain effective performance and accomplish goals. It is a systematic way that enables proper strategy alignment, the effective use of resources, and adaptability to changing environments. The iterative nature of the management process encourages continued improvement, establishing it as one of the elements without which neither the sustained health of the organization nor the propulsion toward long-term success can be maintained.

By embracing these principles, organizations can navigate the complexities of the modern business landscape with agility and confidence, ultimately achieving their strategic ambitions more effectively.You should undertake a PMP Certification to help you get started with the same and learn essential skills to better understand the management process.