The Importance of Management and Management Philosophy

Management and Management Philosophy

Definition of Management

Management comes from the word to manage which means to manage. According to Drs. Malayu S.P. Hasibuan, Management is the science and art of managing the process of utilizing human resources and other resources effectively and efficiently to achieve a certain goal.

Because management is defined as "managing" then the arrangement in this case can be done within an organization, which is a forum for cooperation, division of labor, coordination and management processes in accordance with planning to achieve certain goals. For clarity, the author cites several definitions of management according to experts:

G.R. Terry 

Management is a distinct process consisting of planning, organizing, actuating, and controlling performed to determine and accomplish stated objectives by the use of human being and other resources.

Harold Koontz and Cyril O' Donnel

Management is getting things done through people. In bringing about this coordinating of group activity, the manager, as a manager plans, organizes, staffs, direct and control the activities other people.

Andrew F. Sikula

Management is general refers to planning, organizing, controlling, staffing, leading, motivating, communicating and decision making activities performed by any organization in order to coordinate the varied resources of the enterprise so as to bring an efficientcreation of some product and service.

So, management is a business related to planning, organizing, staffing, directing and controlling activities.

It should be noted that management and organization are only means to an end, not an end in itself. Even though it is only a tool, it is very important for management and organization to be managed as well as possible, because if the tool does not function properly, then a goal will not be achieved properly.

Importance of Management

In living life, human abilities are very limited whether it is limited in terms of physical, space, time and others. But in life, humans also have unlimited needs. Thus, humans must walk together with other humans to meet these needs. There are several reasons why management is important, including:

1. There is a difficult job, which will be easy if done together.

2. Good management will increase the usability and yield of all potentials.

3. Good management will avoid waste - waste of work.

4. Organized in realizing achievement.

5. Management is a guide to thinking and acting.

From some of the reasons above, we can know that management is very important in life. Because its existence is very important, then we must learn, live and practice it so that our lives will be better tomorrow.

So, since when did management exist? Management has actually existed since the division of labor, duties, responsibilities and cooperation of a group to achieve its goals. More specifically, management has existed since there was a leader or organizer and there were those who were arranged to jointly achieve certain goals.

Management philosophy

According to Drs. Malay S.P. Hasibuan, Management Philosophy is a mutually beneficial cooperation, working effectively and as well as possible to achieve optimal results. Meanwhile, according to F.W. Taylor :

The management philosophy is that managers will be more responsible for planning and controlling and in interpreting worker and machine policies according to rules, laws and formulas, so that in this way they will help workers do their jobs at lower costs to employers and income. . . higher for workers."

Leaders in management are the benchmark or essence of all management process activities. Leaders who are capable, creative and innovative will bring what they lead is good and dynamic. Meanwhile, an incompetent leader will bring his group into a static state and work is not optimal. Management philosophy is a collection of knowledge and beliefs that provide the basis for determining solutions to managers' problems. The benefits of this Management Philosophy include :

1. Provide the basis and work guidelines for managers.

2. Bring trust to managers in the management process.

3. Guidance on the best problem-solving directions for managers.

4. Become a basic guideline and mandate for managers in carrying out their leadership authority.

Application of Management Philosophy is applied in different situations. This difference is based on the personality differences of managers and the differences between each manager in terms of evaluating people.

Management Principle

Principles or principles are basic statements or general truths that can be used as guidelines in thinking and acting. This principle emerged as a result of research and experience. In applying the principle, a manager must look at changing situations and circumstances. Because although the principle is fundamental, its existence is not absolute. By using management principles, a manager can reduce or avoid basic mistakes in carrying out his work and will increase his confidence.

The general principles of management according to Henry Fayol are:

1. Division of Labor (principle of division of labor)

This principle is very important, because of human limitations in carrying out their work. Humans must cooperate with other humans and do the division of labor to achieve their goals.

2. Authority and Responsibility (principle of authority and responsibility)

According to this principle, humans should share authority and responsibility. Where authority must be balanced with responsibility. Authority will give rise to rights and obligations will give rise to obligations. The existence of rights and obligations will lead to interactions in management.

3. Discipline (principle of discipline)

According to this principle, all rules and agreements that have been determined must be obeyed and implemented properly and fully.

4. Unity of Command (principle of unity of command)

According to this principle, each subordinate may only receive orders from the superior and be responsible only to the superior as well. This principle is important, because if a subordinate receives orders from many superiors, he will be confused.

5. Unity of Direction

For the sake of realizing a unified direction or movement in a group. So this principle is important so that a plan can be achieved in achieving goals.

6. Subordination of Individual Interest to Public Interest (principle of public interest above personal interest)

Everyone in an organization, must prioritize common interests above personal interests. For example, office work takes precedence over personal work.

7. Employee Remuneration (fair salary distribution principle)

According to this principle, salaries and social security must be fair and balanced with needs. Thus providing satisfaction for employees and employers.

8. Centralization (the principle of centralization of authority)

The principle of centralization of authority is relative. Every organization or group must have a center of authority.

9. Chain scalar (hierarchical principle or periodic chain principle)

The chain of command or authority must flow from top to bottom, be vertical and unbroken. That is, orders must be tiered from the highest position to the lowest position in sequence.

10. Order (principle of order)

This principle is divided into two, Material Order and Social Order. Namely order and order in the placement of goods and employees.

11. Equity (principle of justice)

Leaders in a group must be fair, encourage subordinates to obey orders and have a fighting spirit.

12. Initiative (principle of initiative)

According to this principle, a leader must open up opportunities for his subordinates to take the initiative freely so that active interaction occurs within the organization or company.

13. Esprit de Corps (principle of unity)

This principle of togetherness can be developed and fostered through a good communication system, so that teamwork is realized.

14. Stability of Personnel Change (principle of tenure stability)

Company leaders try to keep members or employees from moving around too often. Because it will cause organizational instability. Leaders must try to make their members feel at home and can work optimally.

Writer : Penadiksi
Job : Entrepreneur (Penadiksi Media Group)
Editor : Sibangbara 
This text was translated from Indonesian to English using ChatGPT/Google Translate.