Basic Management Concepts

BASIC MANAGEMENT CONCEPTS A. Definition of Management According to Expert Opinion 1. George R Terry In his book entitled "Principles of Management" he defines that: "Management is a process that differentiates between planning, organizing, driving implementation, and monitoring by utilizing both science and art in order to complete predetermined goals." 2. Harold Knoontz & O' Donnell In his book entitled "Principles of Management" he explains, "Management is related to the achievement of a goal through and with other people." 3. James A.F. Stoner Management is a process of planning, organizing, leading and controlling the efforts of organizational members as well as the use of all existing resources in the organization to achieve previously determined organizational goals. 4. Drs. Hey Liang Lee Management is the art and science of planning, organizing, directing and supervising human resources to achieve predetermined goals. 5. Encylopedia of the Social Science Management is a process by which the implementation of a particular goal is organized and supervised. 6. Henry Fayol Management contains the idea of five main functions, namely, designing, organizing, commanding, coordinating and controlling. 7. Ricky W. Griffin Management is a process of planning, organizing, coordinating and controlling resources to achieve targets (goals) effectively and efficiently. Effective means that goals can be achieved according to planning, while efficient means that existing tasks are carried out correctly, organized and according to schedule. 8. Federick Winslow Taylor Management is a serious attempt to face every problem that arises in the leadership of a company (and other organizations) or any system of human cooperation with the attitude and spirit of a scholar and by using formulation tools. 9. Renville Siagian Management is a business sector that operates in the service sector and is managed by trained and experienced experts. 10. Drs. M. Manullang (2001:3): Management contains 3 (three) meanings, as follows: • Management as a process. • Management as a collective of people who carry out management. • Management as an art and as a science. 11.Dr. SP. SIAGIAN In his book "Philosophy of Administration" Management can be defined as "The ability or skill to obtain a result in order to achieve goals through other people". B. MANAGEMENT FUNCTIONS 1. Planning Function (Planning) The planning function is an activity of creating company goals and following this by making various plans to achieve these predetermined goals. 2. Organizing Function (Organizing) The organizational function is an activity that regulates human resources and other physical resources owned by the company to carry out predetermined plans and achieve company goals. 3. Directing Function (Directing / Leading / Actuating) The directing function is a manager's leadership function to increase work effectiveness and efficiency to the maximum and create a healthy, dynamic work environment, etc. 4. Control Function The control function is an activity to assess performance based on standards that have been created and then make changes or improvements if necessary. C. ELEMENTS OF MANAGEMENT To achieve the predetermined goals, tools are needed. Tools are a requirement for a business to achieve specified results. These tools are known as 6M, namely men, money, materials, machines, methods, and markets. 1. Men (Humans) One of the most important elements in management is people. Humans are the resources needed to lead, mobilize employees/subordinates, and mobilize all energy and thoughts for the progress and sustainability of the institution. In short, human management is needed to get maximum work results, a healthy and conducive work environment, and innovative ideas. 2. Money (Money) In carrying out all daily activities, companies cannot be separated from costs which will be measured in a certain amount of money. Money is an important element that underlies all business activities, including management activities to achieve goals. All work processes that take place definitely require money, such as to buy equipment, supplies and things needed for the company. Money must be managed and budgeted wisely and carefully so that optimal management continuity is maintained. Usually, purchasing materials or raw materials will be much cheaper if made by cash payment. Apart from that, the more items you order, the more you will automatically get a special discount from the vendor 3. Material (raw materials) The availability of raw materials or materials is very important in the production process. Materials are management elements in the form of raw materials needed for an activity. The selection of raw materials and their use must be done as well and effectively as possible so that no materials are wasted. 4. Machines (machine equipment) Machines are management elements in the form of goods. Machines can be logistics equipment or technology needed in an activity. The purchase and use of machines must be managed so that they are effective, meaning you get good tools at an economical price, but still have good performance for production. With machines, the time required for the production process will be faster and more efficient, with machines human error can be minimized. 5. Methods Methods are management elements needed to regulate operational procedures and standards for carrying out an activity. Activity or business methods must be as good and effective as possible to produce good work. For example, working hours must be balanced with time to eat and rest so that employees are focused and not tired. In the production of goods, production methods must also be effective where production has systematic flows and procedures. Additional quality control is also needed to obtain the best method that can be applied to an activity or business. The point is that by using a method that has been created according to existing divisions in the company, employees who are specialists or experts in their field can be distributed. Methods must be implemented well, effectively and standardized in order to obtain satisfactory work results that meet the objectives. 6. Market (Market) The market is an element of management that is no less important, especially for companies or businesses, because it is often visited by a large number of people who want to buy goods. In this element, several more parts are divided, namely planning, organizing, controlling, implementing programs, policies, strategies and marketing techniques to create demand for product or service offerings. The existence of a market causes production to be sold and can determine the shortcomings and advantages of the product. In this case, as a manufacturer, you can improve or maintain existing quality. This strategy causes the product to spread more quickly and be liked by consumers.