Scope & Functions of Management

It is very difficult to precisely state the scope of management. However, management

includes the following aspects:-

Subject-matter of Management
Management is considered as a continuing activity made up of basic management functions
like planning, organizing, staffing, directing and controlling. These components form the
subject-matter of management.
1. Planning:- planning means the determination what is to be done, how and where is to
be done, who is to do it and how the results are to be evaluated. Planning consists of :-
a. Establishing objectives
b. Formulating rules and regulations
c. Developing programs
d. Scheduling
e. Budgeting
2. Organizing:- it means identification and grouping the activities to be performed and
dividing them among the individuals and creating authority and responsibility relationships
among them for the accomplishment of organizational objectives. It consists of :-
a. Determination of objectives and identification of activities necessary to achieve
the objectives
b. Delegation of authority and relationship among individuals.
c. Coordination of activities and assignment of duties.
d. Division of activities into different units or departments
3. Staffing:- human resources management is a process consisting of the acquisition,
development, motivation and maintenance of human resources. It consists of :-
a. Manpower planning to determine the quality and quantity of employees
required for the jobs to b done
b. Recruitment for attracting qualified persons
c. Selection of best candidate
d. Placement of the right man for the right job
e. Training and development to increase new skills, knowledge and competency to
do job
f. Motivation of employees
g. Evaluation performance of employees
h. Employees welfare
4. Directing:- direction embraces those activities which are related to guiding and
supervising subordinates .it consists of :-
a. Supervising the subordinates
b. Communicating the information
c. Providing effective leadership
d. Motivating employees
5. Controlling:- controlling is the process of monitoring activities to ensure that they are
being accomplished as planned and of correcting any significant deviations. It consists of :-
a. Determination of standard performance
b. Measurement of actual performance
 c. Compares the actual performance with the standard
d. Analyzes deviations
e. Take corrective actions if necessary.

Functional Areas of Management

Management covers the following functional areas:-
 Marketing Management
 Production Management
 Office Management
 Personnel Management
 Financial Management
Let’s discuss each one of these branches briefly.

Marketing Management
Marketing management is the organization, planning, direction, and controlling the people’s
activities operating in the marketing department of an organization while aiming to achieve
the enterprise’s objectives.
You can consider it as a process of finding and assessing the customers’ requirements to fulfil
them through products or services.
It aims to make the final consumer aware of the products or services to make them interested
in the same with a focus on profitability.
Marketing management ensures that the available resources are used optimally to get the best
possible results.
Some of the aspects of marketing management covers are sales promotion, market research,
branding, marketing policy, distribution channels, market analysis, after-sales service, sale-
mix, and many others.
As you can see, marketing management is a huge aspect of any enterprise.

Production Management
Production refers to creating utilities. Their creation happens when we convert raw materials
into our desired finished products.
So, production management is the section of management which by scientific regulation and
planning runs that division of the organization which is responsible for actually translating
the raw materials into finished products.
Without production, a business won’t generate its products or services, that’s why production
management is so vital for its success.
Production management handles the planning and regulation of the production process
because, without them, the final product wouldn’t satisfy the customers, causing the business
to close its doors.
Some of the business aspects production management covers are quality control, plant layout,
production type, simplification, research and development, etc.

Office Management
Office management deals with controlling and coordinating all office activities to achieve the
business’s goals. It organizes the office and its tasks so that the management can achieve its
objectives efficiently.
You can say that it is a service department for all other sections of the business.
The administration’s efficiency affects the business’s success significantly, which depends on
the information the office supplies to the administration.
Moreover, the amount of paperwork an office has to do has risen substantially because of
enhanced regulations, complexities, technologies, expansion, etc.
These factors have increased the importance of office management in the current day and
age.

Personnel Management
Personnel management involves activities and processes that use and control the enterprise’s
manpower. Human resources are among the most vital factors determining an organization’s
success.
It deals with operative and managerial functions. Some of the managerial functions in
personnel management are directing employees, personnel planning, and control.
Similarly, some operative functions in personnel management are determining equitable and
appropriate compensation for employees, procuring the right quantity and type of people,
ensuring proper working conditions, integrating the personnel’s interests with that of the
enterprise, and much more.
Without effective personnel management, it would be impossible for an organization to
succeed. That’s why it’s one of the most significant branches of management and demands a
lot of attention.

Financial Management
An enterprise’s finances matter a lot. Financial management focuses on managerial activities
that utilize and procure the finances of a business. The finances of an enterprise can become
highly complicated that’s why effective financial management becomes crucial for its goal
achievement.
The primary functions of this management branch are ensuring fair returns to stakeholders,
estimating capital requirements, laying down suitable and optimal capital, etc.
Apart from the above functions, financial management handles the coordination of tasks
within departments, preparation and analysis of financial statements, negotiation with
external parties and creating an effective dividend policy.
Sometimes, organizations hire service providers to help them with their finances (chartered
accountant, actuary, etc.). Those service providers would fall under financial management
too.