Management Process - Meaning, Importance & Example
Published by MBA Skool Team, Last Updated: January 11, 2022
What is Management Process?
Management process is a series of fundamental steps to manage any activity, business or project in order to produce optimum results as per the defined strategy and vision. Management process includes steps to plan, organize, staff, lead and control the resources to completely manage any particular task, project or business on an ongoing basis. These processes need to be carried out by managers or business leaders to ensure they are able to meet the business requirements with maximum efficiency.
For any business or activity to succeed, it is imperative that they plan well in advance on what, how and by when do they want to achieve their desired business goals. Any one trying to randomly take up an activity or business, and trying to complete it will always falter and fail because they are not prepared for the processes. This is where a well thought out and structured management process is important. Management process is important for any organization or person who want to complete a task or project. Management process generally is focused on operations and efficiency whereas strategic management process focusses on future goals of an organization along with overall vision and steps to achieve them.
A well defined, structured management process empowers the manager to plan the details, organize the resources, allocate people, lead everyone together and control everyone for maximum coordination. If all these steps are followed, any person can manage a project and achieve their business goals.
5 Functions of Management Process
As a concept and discipline, management process has 5 main critical functions & fundamentals, and they are to plan, organize, staff, lead and control. Each fundamental can be understood as the following:
The first step in a management process is planning. This is the most critical step as the entire project or business inputs, processes and desired output are planned well in advance. Planning needs to be very thorough as all the subsequent steps are dependent on the project plan which is created for the business. Planning includes several action items like making a business plan, sales plan, budgeting & forecasting, manpower planning, technology needed, raw materials, final output needed etc. These fundamentals of planning are essential for any business or project.
Post the planning stage, the next step in management process is to organize, arrange and prioritize all the requirements. For any business or project to succeed based on the plan, a manager needs to organize all requirements like capital, raw materials, machinery, technology and people.
Organizing is important in initiating the project based on plan created, prioritization of activities and a timeline to achieve all goals.
Once a plan is created and all necessary inputs are available, staffing or creating a team of people is the next stage in a management process. Every business only succeeds or fails based on the work done by their employees and workforce. Staffing is critical as every activity needs to be carried out by a person who has the right skills, knowledge and motivation to complete their respective tasks. Staffing includes manpower planning processes like employee recruitment, selection, training, induction, orientation, promotion, termination etc.
Once a team is created, it is important for any manager to lead the people. This management process involves the team leader to ensure all team members across various business functions like product, engineering, marketing, sales, support etc. are motivated and there is coordination among all of them. A good team leader ensures transparent communication, directs the team well, seamless coordination and makes sure each of the team members are happy with the work.
Once a business or project is initiated, the management process which is important to keep check on the progress is known as controlling. A manager needs to constantly evaluate the business process, compare it with the initial plan, keep track of resources, evaluate team performances and ensure that business output is as per the requirements. In case of any deviation, a manager must ensure quick and efficient corrective action. This stage is important as it help in a continually improving process to attain the business goals.
Management Process Example
Management process can be implemented on any project, business or activity. The core concept is to plan, arrange, make a team and execute the plan for the desired outcome. An example of management process can be that of a car manufacturer. The car company must plan its output via sales plan, marketing plan, manpower needed, investment required etc. Once the plan is done, the car company will arrange for men, money and machines to manufacture the cars.
The staffing stage will allocate the right people for the right job, i.e. engineering, design, shop floor workers, finance, marketing, salesmen etc. The team leader will then ensure everyone is working together and will control the business by constant monitoring evaluation and process improvement.
Hence, this concludes the definition of Management Process along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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