What is Management? : Understanding Key Concepts, and Functions of Management

You have probably heard the term management in every facet of life. Whether it is in business or organization, it holds utmost relevance and primacy in present day businesses and organizations.

But, what is management? Management refers to the strategic control, planning, and implementation of a set of standard rules and practices in order to achieve set targets of results. Management further inculcates various methods and ways of implementation of processes and tasks to enable efficiency and effectiveness.

Did you know? Over 50% of businesses fail within the first five years. And one of the biggest reasons for this downfall is poor management.

As markets advance and businesses scale to the next level, efficient management techniques and practices can enable organizational success. In fact, management skills and practice are useful in every phase of life and are helpful in every facet of life. Thus, the benefits of management are multifold.

In this guide, we shall understand what is management in depth, and discuss its key objectives, functions, types, styles, and more.

Keep reading to learn more about what management entails!

Also Read: A Comprehensive Guide to General Management

What is Management? 

Management is a core pillar for business and organizational success. For students and professionals, a strong grasp of management can be the key to career growth and stability in a competitive job market. 

Understanding the nature and scope of management can play a key role in driving management techniques and strategies.

Furthermore, core management skills such as decision-making in management, strategic planning, and resource allocation can act as your lifelines. These skills keep a business thriving, even in tough times. 

Let us further dive into understanding what is management through various attributes:

Ready to start your management career? Check out upGrad’s Management Programs to gain world-class insights from top experts.

Goals and Objectives of Management 

Effective management enhances organizational efficiency, boosts employee productivity, and optimizes resources. In the Indian business landscape, where competition is fierce and resources are limited, management plays a critical role in achieving sustainable growth. 

Business management is essential for long-term success. This brings us to understanding the core goals and objectives that shape effective management practices.

To grasp what management is in action, it’s essential to understand its objectives. Management objectives can be divided into three main areas, each driving specific outcomes that contribute to a company’s success:

• Organizational Goals: These focus on achieving productivity and growth. Example: Increasing market share through streamlined processes and effective use of resources.
• Social Objectives: These emphasize corporate social responsibility and ethical impact. Example: Companies can support community welfare initiatives to enhance their social footprint.
• Personal Objectives: These aim to improve employee growth, job satisfaction, and personal fulfillment. For instance, companies can promote skill development programs, ensuring personal and professional growth for the employees.

Each of these objectives answers a part of what is management by showing its role in balancing business goals, social impact, and individual fulfillment. 

In this way, effective management not only drives the business forward but also creates a positive environment for all stakeholders.

Also Read: Importance of Management in Every Organization

Functions of Management

We can understand the functions of management, through the POSDC framework in management. Let’s understand the functions of management further with this framework:

The POSDC framework highlights the five core functions of management, which are essential for effective leadership and organizational success. Here are the five functions:

• Planning: Establishing objectives, setting goals, and determining the best course of action to achieve those goals. This function involves defining the organization’s strategy and making decisions on how to allocate resources.
• Organizing: Structuring resources and activities to achieve the organizational goals. This includes determining roles, and responsibilities, and coordinating resources to ensure smooth operations.
• Staffing: Ensuring that the right people are in the right positions. This function involves recruiting, selecting, training, and developing employees to meet the needs of the organization.
• Directing: Leading and motivating employees to carry out the organization’s plans. It includes communication, leadership, motivation, and guiding teams toward achieving goals.
• Controlling: Monitoring and evaluating the progress of activities and performance. This function ensures that the organization’s goals are being met and allows for corrective actions when necessary to stay on track.

These five functions—Planning, Organizing, Staffing, Directing, and Controlling—are fundamental to successful management and help ensure that organizational objectives are achieved efficiently and effectively.

Also Read: Top 4 Functions of Management Process Explained

Types of Management

There are various types of management that play an essential role in efficient operations and fostering growth in different areas of an organization or company. The top 6 types of management are:

1) Project Management

• Focuses on planning, executing, and closing projects within a defined timeframe, scope, and budget.
•  Project managers oversee the coordination of tasks, resources, and teams to ensure project success.

Know more here: Types of project management

2) Business Management

• Involves overseeing the operations of a business or organization as a whole.
• Business managers are responsible for strategic planning, decision-making, budgeting, and optimizing resources to ensure long-term success.

3) Operations Management

• Operations management is concerned with managing the day-to-day activities that produce goods and services. 
• This type of management focuses on improving efficiency, quality control, and streamlining processes within an organization.

4) Financial Management

• Involves managing an organization’s financial resources, including budgeting, financial planning, and analysis. 
• Financial managers ensure the company is operating efficiently and meeting its financial goals.

Also Read: Scope of Financial Management

5) Human Resource Management (HRM)

• Human Resource Management focuses on recruiting, training, and managing an organization’s workforce. 
• HR managers handle employee relations, performance management, compensation, and compliance with labor laws.

6) Strategic Management

• Strategic management involves setting long-term goals and determining the best strategies to achieve them.
•  Strategic managers focus on analyzing market trends, competition, and business opportunities to guide the organization toward sustained growth.

Approaches and Styles of Management 

There are various management styles and approaches, each with unique strengths that cater to different business needs. In India, companies are increasingly adopting these diverse styles to tackle local and global challenges, blending tradition with innovation to stay competitive.

Here’s a closer look at some popular management styles and where they shine.

• Authoritative: This style thrives when clear guidance is a must. With an authoritative leader, goals are laid out in black and white. It works like a charm in situations needing quick decisions and firm direction, setting the tone for discipline and precision.
• Democratic: Collaborative to its core, democratic management brings every voice to the table. It’s ideal for problem-solving scenarios where collective insight is gold. Decision-making here feels more inclusive, keeping team morale high and sparking creativity through input.
• Laissez-faire: For roles demanding autonomy, the laissez-faire approach gives employees the reins. This hands-off style excels in creative fields or project-driven tasks. It assumes trust and nurtures confidence, allowing innovation to unfold without boundaries or constant oversight.
• Transformational: If driving change and growth is the goal, a transformational style is the answer. This approach inspires employees to think bigger, often in competitive, forward-focused environments. With the right vision, it turns regular roles into passion-driven journeys of self-improvement.
• Transactional: Rewards and metrics define this performance-focused approach. Transactional managers set clear, achievable goals with immediate rewards. It’s best suited to environments where meeting targets is essential, driving short-term wins and keeping productivity on track.

Each of these styles answers a different aspect of business management by aligning management practices with team needs and business goals. Knowing which style to use and when can act as the secret sauce for effective leadership.

Also Read: Best Online Management Courses in India

Career Paths in Management 

There is a wide range of career options in Management, each with its own set of demands and rewards. In India, the demand for skilled management professionals continues to rise as companies expand and adapt to an evolving market.

Here’s a quick look at some of the top management roles, average salaries, and job descriptions.

Source: Glassdoor 

Also Read: Top 10 Career Options in Business Management in India in 2025

What are the Metrics and Performance Evaluation in Management? 

Metrics serve as a backbone in management, enabling managers to track progress, measure team effectiveness, and make strategic, data-driven decisions.

By evaluating performance, managers not only improve individual and team productivity but also strengthen the entire organization.

Here’s a table highlighting some of the most common management metrics and their use cases.

Effective use of these metrics allows managers to make informed adjustments, improve efficiency, and drive both personal and organizational growth. 

Each of these metrics is critical for understanding what is business management in action. Here’s a further breakdown of these metrics and their impact.

• Employee Productivity: Indicates the output of each team member. Higher productivity often signals effective management and motivated employees. Example: A sales team meeting monthly targets demonstrates productivity.
• Financial Performance: Reflects the company’s fiscal health, essential for sustaining growth. Example: Monitoring profit margins helps identify successful cost-cutting measures.
• Customer Satisfaction: This shows how well customer needs are being met, crucial for brand loyalty. Example: Positive customer feedback can indicate strong service quality and retention.
• Employee Engagement and Retention: High engagement and retention rates suggest a healthy work culture. Example: A low turnover rate points to satisfied employees, reducing hiring costs.

Difference between Management, Leadership and Administration 

Management is often used interchangeably with leadership and administration. However, each has its role and purpose in the business world. Understanding these distinctions will help you move through the dynamics of a business more effectively.

Here’s a comparison table for management, leadership, and administration: 

Each function supports the other, but knowing their unique purposes helps you become a well-rounded professional. Understanding these differences will let you lead, manage, and govern effectively, all in one go.

Also Read: 4 Key Differences Between Leadership and Management

Future Trends in Management 

In a rapidly advancing landscape of both business and technology, the business world is also evolving to adapt to these new inventions. This becomes even more important in a field like management which centres around adaptability and agility. Let’s take a look at some expected trends in the management field:

• Integration of AI: With applications such as customer service bots and automation technologies, AI is already transforming the way businesses function. It is expected to scale efficiency and automate redundant processes to aim at the ultimate efficiency model.
• Data-driven decision making: With data analytics, insights from large data sets help in better analysis of consumer behavior and eventually result in better decision-making This aids in targetting audiences for businesses and adapting to audience behavior and requirements of their consumer needs.
• The increasing significance of soft skills: Soft skills are becoming increasingly popular for all management positions and roles. Exceptional soft skills enable a smoother flow of work and better teamwork and collaboration.
• Flexible work models: Advanced in management are setting aside conventional work models to adopt more flexible work models such as hybrid and remote working. This has often resulted in greater efficiency due to better mental health.
• Diversity and Inclusion approach: Amidst an approach to promote greater diversity and inclusion in the workplace, from across different communities and social groups to promote inclusivity and belongingness for people from marginalized sections of the world.
• Continuous learning: This is perhaps a key trend in management. Newer advancements demand newer skills and adapting to new abilities. Thus continuous learning is essential to success in management.

How can upGrad help you elevate your career in Management? 

The continuously evolving job market demands skilled professionals with efficient management skills and knowledge to lead their organizations. 

At upGrad, we offer you an array of management course options, suited to both students and professionals aiming to climb the career ladder. With an industry-focused curriculum, personalized mentorship, and rich networking opportunities, upGrad programs provide you with the relevant skills needed to succeed in today’s competitive world.

Below are our popular management courses and their key learnings:

Here’s how upGrad’s management programs can support your journey.

• Industry-Relevant Curriculum: Learn cutting-edge management skills. Example: Real-world case studies on global brands.
• Personalized Mentorship: Get one-on-one guidance from industry experts. Example: Hands-on advice for project challenges.
• Extensive Networking: Connect with peers and professionals across industries. Example: Live events with business leaders.
• Flexible Learning: Study at your own pace, anytime, anywhere. Example: Perfect for balancing work and study.
• Career Counseling: Get advice on courses and career paths. Example: Free session to align your goals with the right program.

In case you’d like to seek expert assistance in driving your management career forward, you can book a free counseling session with us now! 

Elevate your leadership and strategic thinking with our popular management courses, designed to shape you into a dynamic and effective leader in today's competitive business world.

Explore our Popular Management Courses

View all Management Courses.

Discover actionable insights and expert strategies in our top management articles, crafted to inspire and empower your journey to leadership excellence.

Our Top Management Articles

References:
https://www.coursera.org/articles/management
https://www.linkedin.com/pulse/top-10-reasons-why-80-small-businesses-fail-first-year-amoo
https://www.nber.org/papers/w16658
https://in.indeed.com/career-advice/career-development/what-is-management
https://in.indeed.com/career-advice/career-development/functions-of-management
https://www.glassdoor.co.in/Salaries/human-resources-manager-salary-SRCH_KO0,23.htm 
https://www.glassdoor.co.in/Salaries/operations-manager-salary-SRCH_KO0,18.htm
https://www.glassdoor.co.in/Salaries/sales-manager-salary-SRCH_KO0,13.htm
https://www.glassdoor.co.in/Salaries/marketing-manager-salary-SRCH_KO0,17.htm
https://www.glassdoor.co.in/Salaries/finance-manager-salary-SRCH_KO0,15.htm
https://www.glassdoor.co.in/Salaries/project-manager-salary-SRCH_KO0,15.htm
https://www.glassdoor.co.in/Salaries/product-manager-salary-SRCH_KO0,15.htm