Management of the organization

Management of the organization

Management arises from the division of labor and labor cooperation in antiquity and accompanies the development of society.

There is currently no complete and accurate description of the concept of management. The following concepts are formed: functional, cybernetic, and systemic

Functional understanding considers management as a set of goals, management functions, management principles, structures, management process, and management cycle. Reference:“Functional management structure in organizations”,

The cybernetic concept considers management as a set of control and management systems and information impacts from the control to the managed system.

Systematic understanding considers management as a set of problems and situations, management situations, the process of preparation and decision making. Reference:“A systematic approach in management”,

What is management?

According to Peter Drucker, despite his great importance, his visible presence in society, and his imposing rise, governance is the least known and least understood of our main incarnations.

Management is a specific type of activity, during the implementation of which the goal and the direction in which to work and develop the organization is chosen and which materializes in the impact of the subject of management (manager) on the object of management (subordinates) to achieve selected targets.

Considered as a function, it is a conscious, purposeful informational impact by the subject or the governing body on people or economic objects, carried out to direct their actions and obtain desired results, as well as to change the object of its influence; as a process – this is a set of management actions that ensure the formulation and achievement of goals by transforming the resources of “input” into the production of “output”; as an apparatus – this is a set of structures and people ensuring the use and coordination of all resources of social systems to achieve the set goals; as a science – this is a system of knowledge arranged in the form of concept, theory, principles, methods, and forms of government; as art – this is the ability to effectively, in a specific situation, apply the data of management science. Reference: “Organizational structure: types and functions”,

The management works with and through other people

The management works with and through other people, ie. it distributes and integrates the efforts of the like-minded group into one working whole. Management aims to achieve maximum results with minimum resources.

It is a constant balancing act of anonymity and efficiency, striving to find the most suitable for the company under the existing conditions in the constantly changing environment and with limited resources (people, finances, MTB, time, information). It achieves results that one could not achieve if one worked alone. Goals are achieved that are pre-selected by the organization.

Its essence consists in the optimal extraction of maximum opportunities from all available resources (land, people, capital) to achieve the set goals. In terms of content, it is a set of principles, methods, tools, structures, and functions used by the governing bodies to make the most efficient use of resources. Reference: “Organizational and management structures”,

Management is the factor on which the effectiveness of the functioning of the organization depends.

History of management

The ancient Greek philosopher Plato defined the ability to govern the state as art and called this skill cybernetics. But this did not change society’s understanding of the nature and structure of this activity until the eighteenth century.

The reason for this is rooted in the fact that so far there are no large production organizations and the branches of the non-production sphere have not been separated.

Much later, the supporting sciences also developed – mathematics (probability theory, game theory, mathematical statistics), sociology, psychology, PR, and others. Information was also later realized as a basic attribute of management.

For a long time, the existing equipment and technologies do not allow to achieve the required quality of the collection, processing, storage, transmission, and reception of management information.

A basic concept in management

Control – 1. By comparing the goals and plans and the actual situation, ways to overcome the deviations are sought and chosen. 2. The right of the owner to determine the development of the organization

Regulate – 1. Maintaining a certain process within pre-set limits 2. Includes pre-set limits and the rules for their implementation

Command – Issue an order or directive

Administrate – Enforce legal regulations, rules, and procedures and monitor compliance

The concept of management is imposed under the influence of American management science and practice in business management. Management as an activity is incomparably richer than the science of management and is constantly supplemented by the practice of current managers.

The most important emphasis is that people are managed, things are achieved through the people in the organization. In this regard, managers set an exceptional and important goal, regardless of the means and methods to teach people to motivate themselves to work, to lead them, to communicate with them, to seek to understand interpersonal and intergroup relationships to increase the effectiveness of functioning of organizations.

It also focuses on the relationship between the organization and its environment

Monitoring. Monitoring, controlling from the outside, without interfering in the process.




Management process

Managing is not just passive, adaptive behavior; it means taking action to ensure that the desired results are achieved. Management is a body, and bodies can only be described and explained through their functions.

The management process includes decisions about: what, how, when, who, under what conditions. It is the realization of several interrelated functions: planning, organizing, managing employees, and control, which are always performed consistently over time. Reference: “What is Organizational Strategic Planning”,

The execution of each subsequent function begins when the results of the previous one are available and it is not possible to skip any of them. For this reason, management is seen as a cyclical process.


With the help of this function, the goals of the activity of the organization are determined, the means and the most effective methods for achieving these goals – ie. decide what. An important element of this function is the forecasts for possible directions of development and strategic plans. Reference:Defining the strategic plan of the organization”,

At this stage, the organization must determine what real results it can achieve, assess its strengths and weaknesses, as well as the state of the external environment (economic conditions in the country, government acts, trade union positions, actions of competing organizations, preferences of consumers, public attitudes, technology development). Reference: Planning the activities of the organization”,


With the help of this function, the structure of the organization is formed and it is provided with everything necessary (personnel, means of production, financial means, raw materials, etc.).

At this stage, the conditions are created to achieve the goals of the organization, and a decision is made on how and when to do so. Reference: “Formation of the goals of the business organization”,


With the help of this function, a decision is made on who and under what conditions will realize the plan to achieve the goals of the organization. The most favorable conditions for work, for the manifestation of abilities and professional “growth”, are created. Reference: “The profession of the manager: How to become one”,

An important point is the ability of the manager to clarify the real needs of his employees and skillfully motivate them.


The control function involves evaluating and analyzing the effectiveness of the results of the organization’s work, the level of goals achieved by the organization, measuring the results achieved, comparing them with the planned, and, if necessary, reviewing the initial goals. Reference:“Goal-based management”,

But it also includes the need to adjust the planned actions, as well as the adoption of standards. It combines all management functions.

To manage a specific organization, a decision is made for each of the management functions, what will be its scope and content.

Subject and object of management

The subject of management of business organizations is clearly distinguished from the subject of other sciences and includes:

The object of management is business organizations, including production, trade, education, science, and others.


The organization can be seen as a rational tool, a social system, and a political institution. The organization consists of people who perform all the necessary processes to obtain the planned result. The elements that make up the organization must be well adapted to each other.

What is an organization?

The organization is a group of people whose activities are coordinated to achieve the set common goals. To be called an organization, the group must be at least two people who are recognized as the best part and there must be a goal that is accepted as common to all members working to reach it. It consists of owners, managers, and contractors.

Each group has its interests in the proper and profitable development of the organization. None of the groups can satisfy their interests on their own – ie. there is interdependence. Therefore, the common interests of the good condition of the organization must be sought.

Types of organizations

The organizations are formal and informal. Formal are organizations are officially registered and act based on existing legislation. Informal are organizations that operate outside the law, the group arises spontaneously, but its members regularly interact with each other. Informal organizations exist in every formal organization.

The internal environment of the organization is built by its resources: human, financial, material, and information. The aspiration of each organization is the transformation of the various resources to achieve the set goals.

Every organization is highly dependent on the external environment both in terms of resources and in terms of its customers or users. The external environment includes the economic conditions in the country, government regulations, trade unions, competing organizations, consumers, as well as public opinion, existing equipment, and technologies.

To achieve its goals, the tasks of each of its constituent units must be coordinated through a vertical division of labor, and the activity of coordinating the work of its members is the essence of management.

External factors are divided into factors with direct and indirect impacts. To function properly, the organization must adapt to changes in the external system and this gives the right to be considered as an “open system”. Reference:“Change management in organizations”,

In turn, the open system depends on energy, raw materials, and information coming from the external environment and is a mechanism for converting input information or resources into final products (corresponding to its goals).

Many models are used for environmental analysis, among which the most popular are PEST and SWOT analyzes.


Human resources and information

The internal environment consists of the resources of the organization and the system-wide and management mechanisms integrating them. Some of these factors are a given, and others may be the result of previous management actions. Reference: “Types of Human Resource Management”,

The job of management is to influence them, maintaining the necessary ratio and interaction between them to guide the activities of the enterprise and here helps the ability to manage knowledge.

Leading are the human resources, which are characterized by professional, qualification, age structure; through the ratio between production and management staff; through basic, auxiliary and service staff, etc. Reference: “Methods for human resources and personnel management”,

The information is official and unofficial and refers to the users of the organization’s products; for its current, future, and potential competitors; for the economic conditions in the country and abroad; for the rules of work; for the internal life of the organization, etc.

As integrating mechanisms we consider the production technologies, the communication system, the management structure; organizational culture; the goals of the organization; the system of payment and control, etc. Reference: “Organizational culture”,

Each of the listed mechanisms has its field of action, and together they have the purpose to maintain the integrity of the organization and to create its potential to work in the existing external conditions.


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