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Course Title/ Code:

INTRODUCTION TO MANAGEMENT (UFA 1001)

Title:
Management Practice Report
Escape Travel Tours Sdn Bhd

Date:
11 JULY 2021

Lecturer:
MDM SYAHIRAH MOHD BAKI

Group Name: Group 9

Members:

No Name Matrix No.

1 Mohamed Azmi Mohd Rasheed Khan UFA210182
2 Ismail Ishak UFA210180
3 Nur Izaati Ayoob UFB210018
4 Haslindayani Abdul Hamid UFA210131
5 Muhammad Ammar Abdul Halim UFA210146

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Acknowledgement

We would like to express our deepest gratitude to our lecturer Madam Syahirah Mohd Baki
who gave us the opportunity to work together in completing this assignment on the topic of
Introduction to Management.

The topic and guidance by Madam Syahirah has given us tremendous knowledge on
matters pertaining to management that would be helpful for our future careers.

We would also like to thank each other in Group 9 for all the time spent in completing the
tasks accordingly. We should also say thanks to our family members who has in one way or
another helped us to complete this task.

Thank you.

Group 9, UFA1001, 2021

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TABLE OF CONTENTS

PART A 4
1. Background of the company 4
1.1 Introduction to Our Company 4
1.2 Organisational Chart 5
2.0 Planinng 7
2.1 Vision and Mission 7
2.2 Types of Planning 8
3. Organizing 9
3.1 What is Organizing and Importance of Organizing? 9
3.2 Organizational structure/chart 10
3.3 Basic structural format/departmentalization 10
3.4 Span of control 11
3.5 Locus of decision making 12
4.0 Leading 13
4.1 Leadership Style 13
4.2 Motivation 14
4.3 Communication Style 15
5.0 Controlling 18
PART B 20
6. SWOT Analysis 20
7. Recommendation 22
8. Conclusion 24
Reference 26

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PART A

1. Background of the company

1.1 Introduction to Our Company

Established in 2017, Escape Travel Tours (TET) Sdn Bhd has grown to become one of
leading travel consultancies and travel agency in Kuala Lumpur, Malaysia. With a dedicated,
experienced, and committed team, it has successfully garnered an extensive market reach in
the travel services sector, both locally and abroad. Located in the heart of the city; Pekeliling
Business Centre, Kuala Lumpur.

As a reputable travel agent in Malaysia, Escape Travel Tours Sdn Bhd is strategically placed
to work in-tandem with your desires and continues offering the best in travel and tourism
products including travel and tour package, hotel and flight booking and other services.

Being a reputable travel agent based in Kuala Lumpur with over 5 years industry experience
in Malaysia, we’ll provide with the most feasible booking options for our travel and tour
package. But don’t just take our word for it, our track record of being accorded various
prestigious awards makes a statement of just how much more we can do for you.

Escape Travel Tours Sdn Bhd is your travel designer for air, land, and sea. We create the
perfect combination of travel. That includes airport transfers, accommodation, car hire,
tailored tours, bus and rail ticket reservations, acquiring concert and sporting tickets, and a
whole load of other related services that make us distinctly stand out from the rest. So,
whatever your travel needs, be it government, business or leisure, we’ll serve you with

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exceptional quality, and offer an extensive array of possibilities that will make travel a lot
more convenient and cost effective.

And with Travel.my, we’ve epitomized convenience and customer satisfaction through the
use of both; the efficiency of technology, and the warm flexibility of the human touch. In that,
you can also benefit by engaging our client service professionals for opinions, assistance
and general consultation.

1.2 Organisational Chart

An organizational chart is a diagram that visually conveys a company's internal structure by

detailing the roles, responsibilities, and relationships between individuals within an entity.
Organizational charts either broadly depict an enterprise company-wide or drill down to a
specific department or unit.

CEO
MOHAMED
AZMI

HR&FINANCE
TOUR OPERATION MARKETING DEPARTMENT
DEPARTMENT DEPARTMENT DEPARTMENT
MUHAMMAD
NUR IZAATI ISMAIL ISHAK HASLINDAYANI AMMAR

STAFF STAFF STAFF STAFF STAFF STAFF STAFF

The organizational structure of our company reflects the way we differentiate employees into
different jobs. Each person will have assigned duties that we expect them to achieve in
support of the company's mission. We count on everyone to do their jobs to maintain smooth
operations. If our business market changes significantly, we will update the organizational
structure, but this requires changing how employees think about the structure and the
routines that keep it stable.

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Flat Structure (Flat Organisation)

If you don't have any employee ranked above any other, then your business has a flat
structure. Even in this structure, your business might demand that employees have different
tasks. It could be confusing to give everyone the same job, unless there is just one kind of
task. You can give each person a specialty and a small amount of responsibility, or you
could create teams. The structure you pick should provide for efficient flow of information. If
you're the manager, you should give employees enough information and learning
opportunities to do their tasks, and then they must take charge of activities delegated to
them. Seek a balance between employees being self-directed in their work and coming to
you for directions.

Vertical Structure (Tall Organisation)

Some businesses require a vertical hierarchy, perhaps because of the nature of the work,
the ways that the business market is already arranged between suppliers and customers or
the owner's management style. You are at the top and you have employees arranged below
you in a clear chain of command. You can count on your orders to be passed down the
ranks, but you also need a way for information and ideas to flow back up the chain. This
requires building an organizational culture.

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2.0 Planinng

2.1 Vision and Mission

What is a vision statement?

A vision statement is used to describe the future state of the organization, i.e., what the
organization hopes to become in the future. It is, therefore, a long-term goal provides
direction for the organization. It also communicates the purpose of the organization to the
employees and other stakeholders and provides them with the inspiration to achieve that
purpose.

What is a mission statement?

A mission statement describes the current state of an organization and its primary goals or
objectives. It provides detailed information about what the organization does, how it does it,
and who it does it for. Unlike the vision statement, it is short-term in nature. However, it is
related to the vision statement in that it outlines the primary goals that will help to achieve
the future the organization desires (i.e, the vision).

Our Vision and Mission

Vision : To be the Ultimate Travel Service Provide for all

Mission: Adding more valuable services to customer in flight and hotel bookings, foreign
exchange and leisure travel.

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2.2 Types of Planning

Planning is about managing resources and priorities in an organized way. Management is

related to leadership, and it’s related to productivity. If companies improve how they plan,
managing and leadership will also improve. The following steps can help businesses plan
better.

Devise a Plan: Write important details down and focus on strengths, what matters, what
people are most important to you and what you can do for them. This will help you
communicate your vision to your employees.

Define Success: How do you see your business in several years? Define long-term goals
and be specific. Establish milestones for certain goals and who will achieve the goals. Look
at what drives your business; it may be presentations, conversions, page views or something
else. Then establish a review schedule and re-examine your long-term goals as necessary.

Put It in Motion: Track and analyze numbers to help you manage the work behind the
numbers. You’ll be better able to make changes — or to develop new plans — that will help
you manage better.

Our Types of Plans

Strategic Planning
Our travel agency company goals is to make our customer satisfied and aware with our good
service and package. We would like to make sure that our company will be well known all
over the world.

Tactical Planning
Will do update about our service in our websites and social media and communicate with
customer about their satisfaction of our company service. We will also will collaborate with
airlines company to give the best package when they travel using our service.

Operational Planning

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In this covid 19, we have to reduce a lot of things and limit to travel only in our country and
states because of the MCO but we will still provide a luxury service with prestige value for
our customer. We also aim to provide a good benefit for our staff in this pandemic.

3. Organizing

3.1 What is Organizing and Importance of Organizing?

Organizing is the second key management function after planning. Organizing is the function
that managers undertake to design, structure, and arrange the components of an
organization’s internal environment to facilitate the attainment of organizational goals.
Coordinates human efforts, arranges resources and incorporates the two in such a way that
helps in the achievement of objectives.it involves deciding the ways and means with which
the plans can be implemented.it entails defining jobs and working relationship, assigning
different task associated with the plans, arranging and allocating resources, design a
structure which distinguishes duties, responsibilities and authorities, scheduling activities, in
order to maintain smoothness and effectiveness in operation.

Importance of organizing

A comprehensive approach to organizing helps the management in many ways. Organizing

aligns the various resources towards a common mission.

Efficient Administration
It brings together various departments by grouping similar and related jobs under a single
specialization. This establishes coordination between different departments, which leads to
the unification of effort and harmony in work. It governs the working of the various
departments by defining activities and their authority relationships in the organizational
structure. It creates the mechanism for management to direct and control the various
activities in the enterprise.

Resource Optimization
Organizing ensures effective role-job-fit for every employee in the organization. It helps in
avoiding confusion and delays, as well as duplication of work and overlapping of effort.

Benefits Specialization

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It is the process of organizing groups and sub-divide the various activities and jobs based
on the concept of division of labor. This helps in the completion of maximum work in
minimum time ensuring the benefit of specialization.

Promotes Effective Communication

Organizing is an important means of creating coordination and communication among the
various departments of the organization. Different jobs and positions are interrelated by
structural relationship. It specifies the channel and mode of communication among different
members.

Creates Transparency
The jobs and activities performed by the employees are clearly defined on the written
document called job description which details out what exactly has to be done in every job.
Organizing fixes the authority-responsibility among employees. This brings in clarity and
transparency in the organization.

Expansion and Growth

When resources are optimally utilized and there exists a proper division of work among
departments and employees, management can multiply its strength and undertake more
activities. Organizations can easily meet the challenges and can expand their activities in a
planned manner.

3.2 Organizational structure/chart

Organizational structure helps a company assign a hierarchy that defines roles,

responsibility, and supervision. It’s the plan that outlines who reports to whom and who is
responsible for what. It’s usually recorded and shared as an organizational chart that
includes job titles and the reporting structure. Flat of organization is used in this structure.
There are a few advantages in the flat structure such as speed communication between
management and worker, less bureaucracy and easy decision making. The disadvantages
are manager can easily lose control and it makes employee retention difficult.

3.3 Basic structural format/departmentalization

Departmentalization involves dividing an organization into different departments, which

perform tasks according to the departments' specializations in the organization.

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Departmentalization as a means of structuring an organization can be found in both public

and private organizations. An organization can structure itself into departments in the
following ways.
 In functional departmentalization, an organization is organized into departments
based upon the respective functions each performs for the organization. In the
Escape Travel Tours Sdn Bhd, we have a operation department, marketing
department, human resources & finance department, and tour department.
Functional departmentalization may be advantageous because it can increase
efficiency and expertise since all related activities are performed in one place by one
group of people that specialize in that activity

3.4 Span of control

Span of control is a concept that describes the number of people that are managed by
someone. It is a chain of command notion where the number of subordinates are properly
identified to understand a manager’s reach.

This is a crucial information for managers since they need to understand which are the
resources available from a human resources standpoint. A hierarchical organizational
structure normally has well-defined boundaries that allow the manager to fully understand
who are part of his team.

Nevertheless, when job positions are not properly designed, a confusing situation might
emerge where a person has two or more bosses. This is important to avoid since it creates
conflicts within the structure and guidelines become unclear for the subordinate. A clear
definition of the span of control allows the manager to plan, organize and divide the work
load among his team according to his work method, assigning each team member the duties
he thinks they are capable to handle, according to their skills, knowledge and academic
background.

Managers can also implement metrics to evaluate the performance of their span and
influence them to increase their productivity depending on the results obtained.

Escape Travel Tours Sdn Bhd has a flat organization which have a wide span of control.
Wide span of control means a single manager or supervisor oversees a large number of
subordinates.

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A wide span of control is less expensive because the business employs fewer managers.
With only one manager, or a manager with a supervisor or team leader in the hierarchy
below, most employees are all on the same level and can work with each other with clear
delegation of duties. The disadvantage of this is, managers with a wide span of control might
become overloaded with work, have trouble making decisions, and lose control over their
subordinates.

3.5 Locus of decision making

Decision making may be classified under various categories based on the scope, importance
and the impact.

Centralization refers to that organizational structure where decision-making power is

confined to the top management, and the subordinates need to follow the instructions of
their seniors. Centralization of authority is essential for the small-scale organizations which
lack resources and finance.

Decentralization refers to the assignment of authority along with the responsibility at each
level of the organization. Distribution of the power of decision making along with the related
responsibilities among the different managerial levels is necessary for better management.

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The difference between Centralization and Decentralization is that centralization in an

organization involves planning and decision-making power is given completely in the hands
of senior management. It implies that all power and authority is concentrated at the highest
level.

Decentralization in an organization involves the delegation of power by middle management

or lower management.

Escape Travel Tours Sdn Bhd applies the centralization decision making system. Authority is
consistent and a systematic hierarchical pattern is observed in Centralization. However, the
decision making process is slower.

Centralization is taken as a dominating or dictatorial practice nowadays. The reason may be

that the current employees do not like to be ruled. Instead, they feel more comfortable in the
organizations which treat employees as their associates and value their knowledge, skills
and suggestions.

However, from the organizational point of view, centralization is essential to keep a hold over
the business activities and operations, especially in the organizations where the employees
are not self-disciplined or do possess the required decision-making skills.

4.0 Leading

4.1 Leadership Style

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Leadership in business is the capacity of a company's management to set and achieve

challenging goals, take fast and decisive action when needed, outperform the competition,
and inspire others to perform at the highest level they can.

Leadership provides direction for a company and its workers. Employees need to know the
direction in which the company is headed and who to follow to reach the destination.
Leadership involves showing workers how to effectively perform their responsibilities and
regularly supervising the completion of their tasks.

Leadership is also about setting a positive example for staff to follow, by being excited about
the work, being motivated to learn new things, and helping out as needed in both individual
and team activities.

Considering as the most preferred travelling partner in Malaysia, our compnay adopt the
most significant leadership style in tourism and hospitality industry, which is the autocratic
style. Despite of not being the most ideal style of leadership; it is mainly because of
unpredictable demands in the hospitality industry itself.
 Since there are deep roots of autocratic leadership style in hospitality industry, this
creates some difficulties to adopt the participative leadership style.
 Daily operational, we are dealing with streamlined work process, quick and efficient
decision making, absolute control, close supervision, and focused targets.

4.2 Motivation

However, we provide different motivators for employees that will improve their job
satisfaction. We value our employees as the on-site ambassador that will just not carrying
our brand images, but Malaysian flag as well.

Our employees are motivated by these five essential needs: physiological, safety, social,
self-esteem and self-actualization (also known as self-fulfillment).

 Physiological needs – We run our business from a conducive working space. It’s
important to create a perfect balance of individual privacy and collaborative spaces in
the office. We create a floor plan that strategically sets smart spaces—not to
insulated and not too open—is ideal. We also provide comfortable spaces such as
private rooms and corners for employees whenever they need to focus. Not to
mention our essential facilities such as a tea/coffee making facilities. Other than that,

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we offer annual performance bonus that will contribute to salary increment and
regular allowance depending on package offerings as well as benefits such as a
pension scheme and sick pay.

 Social needs – we manage our employee’s social needs by promoting group

working across teams, departments, and different levels, as well as encouraging
team building through social activities. We ensure our employees can socialize and
collaborate with each other and make sure management are having regular meetings
and catch-ups with their team. We take some time out to have fun as a team too.

 Self-esteem – At the self-esteem level, respect for others and praise is important. A
360-degree feedback and appraisal system can help. We reward employees’
contributions and a peer to peer or social recognition programme that will celebrate
employees’ achievements.

 Self-actualization – At the highest-level personal development plans, training,

secondments, mentoring, and the opportunity for promotion enable staff to be the
very best they can be. By implementing regular talent planning meetings among
managers and HR, having career discussions with employees, and offering options
such as fast-track management programme.

4.3 Communication Style

Communication in the workplace remains one of the

most crucial elements of any job, enabling individuals
to convey complex ideas to one another and ensuring
that everyone in the organization is aware of the same
facts and procedures. Despite this, Harvard Business
Review notes that about two-thirds of all managers
aren’t comfortable communicating with their
employees.

Business communication can help a business

immensely. However, a lack of communication can
severely cripple an organization. While communication may be a wide-ranging topic to cover,
human interaction through speech can be broken down into four main styles. Managers

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should be aware of these styles and how they affect internal and external professional
engagement.

Our company implements the Centralization Communication. It refers to the process in

which activities involving planning and decision-making within an organization are
concentrated to a specific manager. In a centralized organization, the decision-making
powers are retained in the head office, and all other teams receive commands from the main
office. The managers and executives who make critical decisions are based in the head
office.

An effective centralization offers the following advantages:

1. A clear chain of command

A centralized organization benefits from a clear chain of command because every person
within the organization knows who to report to. Junior employees know who to approach
whenever they have concerns about the organization. On the other hand, senior executives
follow a clear plan of delegating authority to employees who excel in specific functions. The
executives also gain the confidence that when they delegate responsibilities to mid-level
managers and other employees, there will be no overlap. A clear chain of command is
beneficial when the organization needs to execute decisions quickly and in a unified manner.

2. Focused vision

When we follow a centralized management structure, it can focus on the fulfillment of its
vision with ease. There are clear lines of communication and the senior executive can
communicate the organization’s vision to employees and guide them toward the
achievement of the vision. In the absence of centralized management, there will be
inconsistencies in relaying the message to employees because there are no clear lines of
authority. Directing the organization’s vision from the top allows for a smooth implementation
of its visions and strategies. Our stakeholders such as customers, tourist operator will also
receive a uniform message.

3. Reduced costs

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We adhere to standard procedures and methods that guide our company, which helps
reduce office and administrative costs. The main decision-makers are housed at the
company’s head office and therefore, there is no need for deploying more departments and
equipment to other branches. Also, the organization does not need to incur extra costs to
hire specialists since critical decisions are made at the head office and then communicated
to the employees. The clear chain of command reduces duplication of responsibilities that
may result in additional costs to the company.

4. Quick implementation of decisions

Decisions are made by a small group of people and then communicated to the lower-level
managers. The involvement of only a few people makes the decision-making process more
efficient since they can discuss the details of each decision in one meeting. The decisions
are then communicated to the lower levels of the company for implementation. If lower-level
managers are involved in the decision-making process, the process will take longer, and
conflicts will arise. That will make the implementation process lengthy and complicated
because some managers may object to the decisions if their input is ignored.

5. Improved quality of the new “WOW” (Way of Work)

The standardized procedures and better supervision result in improved quality of work.
There are supervisors in each department who ensure that the outputs are uniform and of
high quality. Standardization of work also reduces the replication of tasks that may result in
high labor costs.

The aim of any communication is to ensure clarity of information and thus pave the way for a
clutter-free project. The end result should always be increased productivity and ultimately
profits, but the journey to get there should be as straightforward as possible.

A centralized communication system has benefits to the company, but also to the user:
 It takes away the frustrations of finding what you need, when you need it.
 It simplifies the discussions within a certain task.
 It offers transparency across the board, yet allows security of information.

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5.0 Controlling

Controlling involves ensuring that performance does not deviate from standards. Controlling
consists of three steps, which include (1) establishing performance standards, (2) comparing
actual performance against standards, and (3) taking corrective action when necessary.
Performance standards are often stated in monetary terms such as revenue, costs, or profits
but may also be stated in other terms, such as units produced, number of defective products,
or levels of quality or customer service.

The measurement of performance can be done in several ways, depending on the

performance standards, including financial statements, sales reports, production results,
customer satisfaction, and formal performance appraisals. Managers at all levels engage in
the managerial function of controlling to some degree.

Effective controlling requires the existence of plans, since planning provides the necessary
performance standards or objectives. Controlling also requires a clear understanding of
where responsibility for deviations from standards lies. Two traditional control techniques are
budget and performance audits. An audit involves an examination and verification of records
and supporting documents. A budget audit provides information about where the
organization is with respect to what was planned or budgeted for, whereas a performance
audit might try to determine whether the figures reported are a reflection of actual
performance. Although controlling is often thought of in terms of financial criteria, managers
must also control production and operations processes, procedures for delivery of services,
compliance with company policies, and many other activities within the organization.

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POLICIES
> To make the tourism sector as one of the industries that can contribute towards socio-
economic development in and outside the country.
> Emphasizing the promotion of tourism based in and outside the country.
> Always prioritize quality in the services provided.
> Continuously embrace the organization's working framework dependent on Malaysian
business law.

KPI
> Inbound package sales reached a total of 2000 participants equivalent to RM150,000.00
per year.
> Outbound sales package reached a total of 1000 participants equivalent to RM150,000.00
per year.
> Sales of Umrah package during Umrah season sales reached a total of 3000 participants
equivalent to RM2,400,000.00 per year.
> Sales of Hajj packages during the Hajj season reached a total of 200 participants
equivalent to RM1,000,000.00 per year.

SOPs
> Stick to the functioning timetable.
> Clothing regulation in the work environment.
> Customer friendly.
> Teamwork.

The company is also bound by the following:

 Anti-Bribery & Corruption Policy
 Malaysian Personal Data Protection Act 2010
 Tourism Industry Act 1992
 Civil Aviation Act 1969
 Tourism Tax Act 2017

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PART B

6. SWOT Analysis

Introduction to SWOT Analysis

A SWOT analysis is an incredibly simple, yet powerful tool to help develop business
strategy, whether building a startup or guiding an existing company. SWOT stands for
Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis organizes your top
strengths, weaknesses, opportunities, and threats into an organized list and is usually
presented in a simple two-by-two grid.

These questions can help answer each item in the SWOT analysis.

Strengths
Strengths are internal, positive attributes of your company. These are things that are within
your control.
❖ What business processes are successful?
❖ What assets do you have in your teams? (ie. knowledge, education, network, skills,
and reputation)
❖ What physical assets do you have, such as customers, equipment, technology, cash,
and patents?
❖ What competitive advantages do you have over your competition?

Weaknesses
Weaknesses are negative factors that detract from your strengths. These are things that you
might need to improve on to be competitive.

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❖ Are there things that your business needs to be competitive?

❖ What business processes need improvement?
❖ Are there tangible assets that your company needs, such as money or equipment?
❖ Are there gaps on your team?
❖ Is your location ideal for your success?

Opportunities
Opportunities are external factors in your business environment that are likely to contribute
to your success.
❖ Is your market growing and are there trends that will encourage people to buy more
of what you are selling?
❖ Are there upcoming events that your company may be able to take advantage of to
grow the business?
❖ Are there upcoming changes to regulations that might impact your company
positively?
❖ If your business is up and running, do customers think highly of you?

Threats
Threats are external factors that you have no control over. You may want to consider putting
in place contingency plans for dealing with them if they occur.
❖ Do you have potential competitors who may enter your market?
❖ Will suppliers always be able to supply the raw materials you need at the prices you
need?
❖ Could future developments in technology change how you do business?
❖ Is consumer behavior changing in a way that could negatively impact your business?
❖ Are there market trends that could become a threat?

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The following shows the SWOT analysis done by the group on our company.

Strengths Weakness

-Total annual income of at least -Market competition

RM3,700.000.00 per year.
-Global crisis etc. pandemic Covid-19
-High market demand.
-Matters that are outside the region of the
-Inbound and Outbound tourism organization etc. natural disasters.
relationships.

Opportunities Threats

-Extending business organizations. -Competition in the market.

-Job opportunities etc. tours guides. -Changes in foreign exchange rates.

-Get to know Malaysian culture better in

terms of Inbound tourism.

Potential of developing urban farming

as new revenue

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7. Recommendation

The following are our recommendation on how best to improve the condition of the company
based on POLC.

Planning

 Dedicate a time each day to review our plan’s performance and make any necessary
adjustments.
 Include preventative action and contingency within our plan – no matter how far ahead
we may be thinking, disasters do happen and this will help us to get through them
sooner.
 Always account for ‘thinking time’ in our project plan. Coming up with effective strategies
can often take longer than we think.

Organising
 Tackle our to-do list as early as possible. Even though there may only be minor tasks to
attend to, we’ll thank ourself later when we don’t have to make up for lost time on a busy
day.
 Use technology wisely – tools like workflow management software are essential in
managing our team’s responsibilities and keeping track of task progress.
 Make sure we have extra hands on call in case of an emergency. Having a failover will
help us remain productive when disaster strikes.

Leading
 Use technology effectively – emails, instant messaging and social media are our best
friend when communicating with our employees.
 Have a clear plan, and communicate it often. When you are clear about what you aim to
achieve, it’s easier for your team to help you get there.
 Be passionate. Our team will feed off our energy and pour everything they have into
helping our plan succeed.
 Motivate and compensate success with rewards and proper recognition.

Controlling

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 Use technology wisely – make sure we are storing any and all relevant data. We’ll need
to access it when we’re reviewing our plan and coming up with new ideas, so having it
on hand is essential.
 Software tools can help predict the outcome of our plan at any stage provided we feed it
the data it needs. Consider using one to save us from potential disaster.
 Make sure we’re doing the necessary research throughout all parts of our organisation.
Having accurate data goes a long way to ensuring a good business management
performance plan.

8. Conclusion

We have learnt the following through our discussion:

Importance of Management

Management is needed in order to facilitate a coordinated effort toward the accomplishment

of an organization’s goals.

It helps in Achieving Group Goals - It arranges the factors of production, assembles and
organizes the resources, integrates the resources in effective manner to achieve goals. It
directs group efforts towards achievement of pre-determined goals. By defining objective of
organization clearly there would be no wastage of time, money and effort. Management
converts disorganized resources of men, machines, money etc. into useful enterprise. These
resources are coordinated, directed and controlled in such a manner that enterprise work
towards attainment of goals.

Optimum Utilization of Resources - Management utilizes all the physical & human resources
productively. This leads to efficacy in management. Management provides maximum
utilization of scarce resources by selecting its best possible alternate use in industry from out

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of various uses. It makes use of experts, professional and these services leads to use of
their skills, knowledge, and proper utilization and avoids wastage. If employees and
machines are producing its maximum there is no under employment of any resources.
Reduces Costs - It gets maximum results through minimum input by proper planning and by
using minimum input & getting maximum output. Management uses physical, human and
financial resources in such a manner which results in best combination. This helps in cost
reduction.

Establishes Sound Organization - No overlapping of efforts (smooth and coordinated

functions). To establish sound organizational structure is one of the objective of
management which is in tune with objective of organization and for fulfillment of this, it
establishes effective authority & responsibility relationship i.e. who is accountable to whom,
who can give instructions to whom, who are superiors & who are subordinates. Management
fills up various positions with right persons, having right skills, training and qualification. All
jobs should be cleared to everyone.

Establishes Equilibrium - It enables the organization to survive in changing environment. It

keeps in touch with the changing environment. With the change is external environment, the
initial co-ordination of organization must be changed. So it adapts organization to changing
demand of market / changing needs of societies. It is responsible for growth and survival of
organization.

Essentials for Prosperity of Society - Efficient management leads to better economical

production which helps in turn to increase the welfare of people. Good management makes
a difficult task easier by avoiding wastage of scarce resource. It improves standard of living.
It increases the profit which is beneficial to business and society will get maximum output at
minimum cost by creating employment opportunities which generate income in hands.
Organization comes with new products and researches beneficial for society.

As a summary, the following are what our group has learnt from this:

Planning
1) Helps to achieve goals and objectives
2) Provides a sense of focus and direction
Organizing
3) For optimum utilization of resources

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4) To maintain responsibility and order

Leading
5) To get the most qualified personnel for the job
6) To reduce workload and get things done
7) Helps facilitate good communication
8) Helps to initiate action and keep the organization moving
Controlling
9) To monitor progress and chart a way forward
10) To hold individuals accountable

Reference

Mintzberg, H. (1973). The Nature of Managerial Work. New York: Harper & Row; Lamond,
D. (2004).

Centralization and Decentralization. (n.d.). Ask Any Difference. Retrieved July 9, 2021, from

https://askanydifference.com/difference-between-centralization-and-decentralization/

Importance of Organizing. (n.d.). Tutorials Point. Retrieved July 9, 2021, from

https://www.tutorialspoint.com/management_principles/management_principles_imp

ortance_organizing.htm

Organizing. (n.d.). Business Jargons. Retrieved July 9, 2021, from

https://businessjargons.com/organizing.html

Flat Structure. (n.d.). Learn Management. Retrieved July 9, 2021, from

https://www.learnmanagement2.com/flat%20structure.htm

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Planning Organizing Leading Controlling. (n.d.). Flatworld. Retrieved July 9, 2021, from

https://scholar.flatworldknowledge.com/books/31293/fwk-127512-ch01_s03/preview

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