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The people who administer a company, create policies, and provide the support necessary to implement the owners' business objectives.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


1. The persons or institutions that administer a company. That is, management has the responsibility to direct employees, set and enforce policies, and generally ensure that the company fulfills its goals (which management itself often sets). Management is responsible to the board of directors (of a publicly-traded company) and ultimately to the company's owners. In small companies, owners and managers are often the same people.

2. See: Asset management.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


The process of organizing and directing human and physical resources within an ORGANIZATION so as to meet defined objectives. The key management roles are:
  1. planning how to carry out the various activities which are required to achieve the objective. This involves establishing an action programme (see BUSINESS PLAN) and an appropriate organization structure within which tasks can be subdivided (for example into production, personnel, marketing and finance); RESPONSIBILITY for them delegated; and PAY and reward systems instituted (see JOB DESIGN AND REDESIGN, WORK ORGANIZATION);
  2. CONTROL, by comparing current performance with that planned in order to monitor progress of the work. Such comparisons reveal where additional resources may be needed to achieve desired performance or when plans may need to be modified in the light of experience;
  3. COORDINATION of the tasks being undertaken, which involves synchronizing and balancing work loads and ensuring effective collaboration between the various DEPARTMENTS and GROUPS within the organization;
  4. MOTIVATION of the members of the organization, encouraging them to work effectively in performing their assigned task.

CLASSICAL MANAGEMENT THEORY portrayed management as a rational activity largely concerned with establishing routines and procedures for administering the work. More recently this emphasis has been questioned in a number of respects. Research has shown that much of the manager's working day is spent on tasks other than those suggested in this approach, for example attending retirement presentations, responding to telephone enquiries etc. Much of the manager's job involves ad hoc reactions to events. Other research has shown that managers ‘muddle through’, aiming at achieving satisfactory rather than optimum outcomes (see SATISFICING).

Recent writing on management has emphasized the LEADERSHIP aspect of the managerial function. The key issue here concerns the means by which managers can achieve effective performance from their subordinates. Two basic approaches are identified in the literature (on MANAGEMENT STYLE):

  1. task orientation, where managers' relationship with their subordinates is essentially directive, being primarily focused on getting the job done;
  2. people orientation, where managers show a greater concern for their subordinates' well-being, on the grounds that a contented workforce performs effectively.

Some believe that good leaders are born with certain personal qualities whilst others believe that these can be instilled through MANAGEMENT DEVELOPMENT. Whatever perspective is taken it should be remembered that leadership involves more than a leader: it also involves subordinates and a context. Good leadership is that which produces appropriate behaviour from others in particular situations. See ORGANIZATIONAL ANALYSIS, BOARD OF DIRECTORS.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
There never seemed to be enough time to get everything accomplished, but, with the help of my fellow department heads and crew, we were able to overcome and complete all mile-stones ahead of schedule.
In addition, School Committee members unanimously approved Ingano's proposal to change the way some department heads operate.
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Matt Hanning has been named as department head for Asia-Pacific, while David Chin will be sole head of Asia.
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He joined the agency in 2006 and was previously a department head in the directorate for EU funds and international programmes.
In his retirement letter, Ghalambor said it was his "distinct honor to serve the university as a professor and a department head. I believe the caliber of petroleum engineering education at UL-Lafayette is now globally known."
Krokidas enrolled in graduate school at New York University, where during his interview the department head kept asking, "Who are you?" When the department head was unsatisfied with his other attempts to define himself, Krokidas finally said, "I am gay.
Bill Woodruff, department head and instructor in Alamance Community College biotechnology program, has .
Limongiello, RN, associate professor of nursing; Susanne Smith Meyer, department head, landscape design certificate program; Mary Snyder, coordinator of High School Outrech; Gregory Walek associate professor of animation and graphic game programming; and Thomas N.
He then makes a determination of what functional department head within the organization should have responsibility for the issue (e.g., Purchasing, Quality, Production Control).
Jean Stockard, a professor in the planning, public policy and management department, resigned as department head and retired from the university early after what she claims was retaliation by the university for being a whistle-blower.

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