Significance of Management in the 21st Century

VSAT 2022

Management: An Overview

Management is the backbone of every organisation, big or small. It assures the free flow of work in the organisation using the limited resources available to achieve certain pre-defined goals with efficiency and effectiveness. Proper management helps businesses and organisations to achieve certain organisational goals. The managers at different levels perform different functions to achieve these goals. Coordination and continuity in the management process further help in maintaining effectiveness in the business. Planning, organising, staffing, directing, and controlling are considered important functions of the management to achieve the goals of the company.


What is Management?

Management is a core process of business that deals with the planning and organising of limited resources to achieve an organisational goal with utmost efficiency and effectiveness. In other words, management is the process of effective planning, organising, staffing, and controlling with the purpose of reaching an organisational goal.

Management


Management


Efficiency and Effectiveness

Here, efficiency refers to completing a particular task with minimal organisational resources/cost usage. Production firms utilise all its resources both physical and human resources productively. It ensures that the workforce with the help of the machineries attains maximum possible outputs with the employed resources. Whereas, effectiveness is all about completing a given task on time. It is concerned with doing things that are right for the firm or tasks that will yield positive results to the firm. Both of these parameters are liable for the general productivity of business operations.


Significance of Management in the 21st Century

Since the arrival of computers and the advancement in the field of information technology, the nature of the association has changed. Drucker ( 1999), a forerunner in knowledge operation, stressed that the growing refinements in the field of technology and individual knowledge are organisational assets.

In the digital era, businesses focusing on knowledge can expect to excel in their respective fields. Knowledge should evolve as Intelligence capital which will further boost the performance of the establishment.

However, it is not about having knowledge but using it properly. People and their unique ideas are valuable from a business perspective. We can state that management in the 21st century is knowledge management.


What is Coordination?

Coordination is a management function that assures every department works along with each other in sync. There must be unity among the staff, departments, and groups in order to achieve the organisational goal efficiently. It is crucial for management to have coordination within the different departments to avoid havoc and disturbance. Lack of coordination among employees and the various departments will lead to delays and confusion and will take up valuable time.

Teamwork is the foundation to success


Teamwork is the Foundation to Success


Features of Coordination

  1. Coordination Ensures Unity of Action

It confirms that every employee, along with the different departments, works flawlessly and focuses primarily on attaining the common organisational goals.


  1. Coordination is a Continuous Process

Coordination is an integral part of an organisation and is required at every level and department. It starts right from the beginning of planning and ends at the controlling stage.


  1. Coordination is a Deliberate Function

Managers at different levels should always keep an eye on the status of coordination. He is solely responsible for maintaining coordination among the line and different departments for the smooth flow of the organisation.


  1. Coordination Integrates Group Efforts

It sums up various organisational activities into a single meaningful unit. It also aligns every employee's effort toward the common goal of the organisation.


  1. Coordination is a Responsibility of all Managers

It is the collective responsibility of all the available managers of an organisation to ensure that each department is coordinating with each other seamlessly. Furthermore, a middle-level manager needs to coordinate with the top-level managers and the managers below him.

Leader communicating the work plan to her team


Leader Communicating the Work Plan to Her Team


Differences Between Management and Coordination


Basis

Management

Coordination




Meaning

Management is the process of planning and organising resources as well as activities of a business to achieve a business goal.

Coordination is a process through which various activities of different departments and units are synchronised to achieve the company’s goal.


Objective

Increasing Profit, Minimising risk, and improving business growth.

It ensures a smooth flow of business activities.



Scope

Implementation and formulation of policies along with the use of physical and human resources.

Using interpersonal relationships eases the process of coordination.

Case Studies

Electronic Heaven LTD is a manufacturing company that manufactures electronic goods such as refrigerators, Washing Machines, Air conditioners, etc. The organization is under pressure as its profits and shares are falling. The Production department of the company put accountability on the marketing for not meeting the sales target. On the other hand, the marketing department blames the production department for producing lower-grade quality goods that are unable to meet the customer's satisfaction level. The Finance department collectively blames both the two departments for the dropping return on investment and bad marketing.


1. Mention the possible problems inside the organisation.

The above company lacks exemplary management. As we all know, management having the right knowledge can easily tackle such issues within the organisation by clearly mentioning the guidelines on the day-to-day workings. The management will also encourage all the departments to coordinate so as to complete the operations effectively and efficiently to reach the objective.


2. How can coordination help an organisation achieve its targets?

It is an intangible function yet powerful. Coordination is all about synchronisation among the various departments or with employees of any unit. Organisations having seamless coordination are less likely to have day-to-day problems and will yield profit for the organisation.


Conclusion

In other words, management is the sole of every business entity existing. The management lays out certain working procedures, and regulations to keep a check on the day-to-day working of the entity. Management is also responsible for successful cost cutting in the production phase with optimum use of the resources available. Efficiency and effectiveness are two important parameters of management. It is necessary to have coordination in the management to achieve desired goals of the organisation.

FAQs on Significance of Management in the 21st Century

1. What is meant by effectiveness in the business?

Effectiveness is all about completing certain given tasks within a specified time by doing the right things without deviating. It is solely concerned with the end results. It is said to be the ability of an organisation to produce results that yield to the establishment. Effective teams communicate and cooperate with each other and work in a systematic work process. Leaders/ Managers of departments should ensure that their team is aligned towards achieving the company targets.

Here communication plays a vital role in maintaining effectiveness throughout. 

2. How can management increase the efficiency of the business?

Managers can increase their efficiency by cost-cutting and improving production. This can be done by planning, organising, directing, staffing, and controlling the activities of the organisation. To achieve efficiency, different tasks are to be distributed among various groups and departments. That will allow them to focus on one task at a time. One such way to increase efficiency is to plot out plans for everyday tasks. Members of the team should strictly follow the plan and try to complete the tasks effectively.

3. Why is management considered a group activity? 

The workforce is an asset from the organisation's point of view. It can not achieve its target without employees working as a team. To foolproof that each individual's efforts are well coordinated and work towards the common target, effective management will provide openings to grow and fulfil their bournes working as a crew.


An organisation has various daily operations, and it requires numerous employees to keep up with the daily operation. Management is considered a group activity because the working of an organisation can be visualised as a team work with different departments as team members contributing to help the team win.

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