The principles of good management are applicable to all kinds of businesses and are useful for every type of manager. They are closely related to the key elements of overall management approach such as planning, setting objectives, staffing, organizing, leading and controlling. The key elements of good management are also related to human resources, which includes people, skills and behavior. These elements are part of the comprehensive framework of the concepts of good management.
The components of management have become an important and widely accepted part of the overall management practice. There are various components of management that have a direct bearing on the operation of an organisation. It is the ability of a manager to set goals and the planning of the resources required for the achievement of these goals that gives meaning to management. The development of human resource is another important aspect of the components of management that has a direct bearing on the operation of the business. Managers have an important role in the development of the human resource of an organisation.
The elements of control systems have become an essential part of the overall management process of any organization. Control systems refer to the devices and processes that are necessary to ensure accuracy and reliability of the processes. In a technical organisation, the control systems may relate to software and computer programming. For an organization that has an extensive range of products or services, the components of management may include a whole system of quality assurance or a set of quality control systems. These systems are often incorporated within an overall management philosophy.
The components of management may also include a number of less obvious devices and processes. They include planning, assigning responsibilities, delegation, providing feedback, giving directions, exercising control, developing rules of conduct, monitoring performance, controlling waste, controlling competition and upholding confidence. The informal control system is the part of the overall management philosophy that controls the subordinates and helps them maintain a high degree of personal responsibility for their activities. This is usually combined with formal systems of supervision and discipline such as the systems of rewards and disciplinary action that are necessary for a manager to effectively manage a team of people.
Another component of management is the corrective action component. This refers to the measures that a company takes to ensure that it meets its objectives. A major function of the corrective action component of management is to ensure that there is consistent and timely progress reporting. The methods by which this occurs vary by organization so that they can take corrective action against errant employees, meet legal requirements, ensure that there is enough staff, ensure that the business is profitable, or meet environmental obligations.
Components of management also relate to the overall direction and vision of the organization. A key element of this is determining the specific objectives of the organization. A manager determines these objectives in light of the resources available to the organization, the skills and knowledge of the employees of the organization, and the preferences of other key stakeholders. This is often done through a detailed cost analysis. Once the organization has determined the objectives it wishes to achieve, the scope of management changes becomes clear.
It is essential that the direction and purpose of the business is well defined objectives that will be implemented. The size, nature, and number of employees of the business unit are significant considerations. Other important factors include the financial resources of the organization, the scale of operation, and the industry in which the business resides. All of these components of management must be well defined in order for the process of management to be effective.
Finally, the relevance of stakeholders become critical because they have a direct impact on the organization. Stakeholders can effectively restrict or eliminate the opportunities that exist in an organization. For example, if the interests of a business unit are not aligned with the objectives of the organization, they can significantly impede the achievement of the objectives. Likewise, if there are significant limitations on the resources available to an organization, it is likely that management will fail to achieve the goals set forth. This aspect of stakeholder relations is fundamental to management improvement. By identifying how stakeholders are effectively involved in the process, organizations gain a much greater understanding of how they should interact with them.