Concept of Management
The concept of management refers to a conscious, purposeful, and systematic process of decision-making and coordination of actions aimed at achieving organizational goals through the effective use of human, financial, technological, and time resources. Management encompasses five classical functions: planning, organizing, leading, controlling, and coordinating.
Introduction — What Is Management
The concept of management appeared in business literature at the beginning of the 20th century, alongside industrialization and the emergence of large corporations. The classical definition by Mary Parker Follett (1926) describes management as “the art of getting things done through people” — a definition emphasizing two key aspects: the goal (achieving results) and the means (through cooperation).
Today, management is defined more broadly as a process:
Management is purposeful, organized action aimed at achieving defined organizational goals through planning, organizing, leading people, and controlling outcomes, with the effective use of available resources.
Key Elements of the Concept of Management
1. Process, Not State
Management is a continuous activity, not a one-time act. It is a sequence of decisions and interventions that respond to changing conditions. In IT companies, this process operates in loops (daily standups, sprints, quarterly OKR reviews).
2. Purposefulness
Every management activity should be subordinated to clearly defined goals. Goals appear at different levels:
- Strategic (3-5 year vision, mission statement)
- Tactical (annual goals, OKR)
- Operational (monthly KPIs, sprints, projects)
3. Resource Coordination
A manager must effectively combine four basic types of resources:
- Human — competencies, engagement, team culture
- Financial — budget, costs, revenue, ROI
- Technological — infrastructure, software, tools
- Time — priorities, deadlines, response speed
4. Influencing People
Management is always “through people” — a manager does not perform operational work themselves but ensures others execute it effectively. Therefore, interpersonal skills, coaching, and leadership are fundamental.
History and Schools of Management
Understanding the concept of management requires awareness of the evolution the discipline has undergone over the past century.
Scientific School (1900-1920)
Frederick Winslow Taylor and Henry Gantt created scientific management — a scientific approach to work through time and motion analysis, standardization, and time studies. Philosophy: every task can be measured, optimized, and performed most efficiently. Today visible in Lean Manufacturing and Six Sigma.
Administrative School (1910-1930)
Henri Fayol and Max Weber focused on the organization as a whole. Fayol defined the 5 management functions (planning, organizing, commanding, coordinating, controlling) and 14 principles of management. Weber described bureaucracy as a rational form of organization.
Human Relations School (1930-1960)
Elton Mayo and the Hawthorne experiments demonstrated that employee motivation depends on social factors — attention, relationships, belonging. Abraham Maslow proposed the hierarchy of needs, Frederick Herzberg the two-factor theory (hygiene vs motivators), Douglas McGregor Theories X and Y. Human relations management emerges.
Systems and Contingency School (1960-1980)
Management as an open system — exchange with the environment. Frederick Fiedler’s contingency theory: there is no universally best management style — everything depends on context. Henry Mintzberg defines 10 manager roles (interpersonal, informational, decisional).
Quality Management (1950-1990)
W. Edwards Deming, Joseph Juran, and Kaoru Ishikawa create TQM (Total Quality Management). PDCA cycle (Plan-Do-Check-Act), kaizen, ISO 9000, Six Sigma. Philosophy: quality is everyone’s responsibility, not a separate department.
Modern Approaches (1990-present)
- Management by Objectives (MBO) — Drucker
- Balanced Scorecard — Kaplan and Norton
- Lean Management — Toyota
- Six Sigma — Motorola
- Agile Management / Scrum — Takeuchi, Schwaber, Sutherland
- Management 3.0 — Jurgen Appelo
- OKR — Andy Grove / John Doerr
- Holacracy / Teal Organizations — Brian Robertson / Frederic Laloux
Mintzberg’s Manager Roles
Henry Mintzberg identified 10 manager roles in 3 categories:
Interpersonal Roles
- Figurehead — representing the organization (ceremonies, speeches)
- Leader — motivating and developing the team
- Liaison — building networks of contacts
Informational Roles
- Monitor — gathering information about the organization and environment
- Disseminator — distributing information within the team
- Spokesperson — external communication
Decisional Roles
- Entrepreneur — initiating change, innovation
- Disturbance Handler — resolving problems, crises
- Resource Allocator — allocating resources (budget, people, time)
- Negotiator — internal and external negotiations
Manager vs Leader — Key Differences
| Aspect | Manager | Leader |
|---|---|---|
| Focus | Systems and processes | People and vision |
| Time horizon | Short-medium term | Long-term |
| Question | How? | Why? |
| Authority | Formal (position) | Informal (influence) |
| People | Subordinates | Followers |
| Style | Efficiency | Inspiration |
| Approach | Control | Trust |
| Risk | Minimizes | Calculates |
In reality, every effective person in a managerial role combines both sets of competencies.
Modern Management Challenges (2026)
- VUCA/BANI — the world more unpredictable than ever
- Remote / hybrid work — managing distributed teams
- AI and automation — leveraging GenAI to support decisions
- Generation Z at work — new expectations (purpose, autonomy, work-life blending)
- ESG and sustainability — not only profit but also impact
- Cybersecurity — digital risks on the C-level agenda
- DEI — diversity, equity, inclusion
How to Develop Management Competencies
- Formal knowledge: MBA, postgraduate studies, certifications (PRINCE2, PMP, Management 3.0, PSM/PSPO)
- Practice: promotion to a managerial position, leading projects, shadowing a mentor
- Reflection: ICF coaching, 360-degree feedback, reflexive journal, retrospectives
- Network: peer learning groups (masterminds), industry conferences
- Reading: Drucker “The Effective Executive”, Sinek “Start with Why”, Lencioni “The Advantage”, Gawande “The Checklist Manifesto”
- Experimentation: testing new tools (OKR, retrospectives, 1-on-1)
See Also
Frequently Asked Questions
What is management in the simplest definition?
Management is the ability to achieve organizational goals through the effective work of other people (Mary Parker Follett, 1926: 'the art of getting things done through people'). In practice, it is a process: you make decisions, organize resources, motivate people, and measure results — all to achieve company goals. It is not solely control or instruction — it is the creation of conditions in which people can deliver.
What is the difference between a manager and a leader?
A manager runs the system — planning, organizing, controlling, ensuring operational efficiency. A leader creates vision and change — inspiring, motivating, influencing culture. Warren Bennis: 'The manager does things right; the leader does the right things.' In practice, the role combines both aspects — the most effective managers are also leaders. A leader without managerial skills cannot execute; a manager without leadership traits does not inspire people.
What are the main schools of management?
Key schools in management history: 1) Scientific (Taylor, Gilbreth) — efficiency, standardization, time studies. 2) Administrative (Fayol) — 5 functions, principles of management. 3) Human Relations (Mayo, Maslow, Herzberg) — motivation, employee needs. 4) Systems and Contingency — no universal model. 5) Quality (Deming, Juran, TQM) — Kaizen, PDCA. 6) Modern (Drucker, Mintzberg) — management by objectives, 10 manager roles. 7) Agile/Lean (Scrum, Lean Startup, Management 3.0) — contemporary practice.
Is management a science or an art?
Management is both science and art. Science — because it relies on empirically validated models, theories, metrics, and methods (e.g., OKR, Scrum, Lean Six Sigma have documented results). Art — because it requires intuition, interpersonal skills, creativity, and the ability to adapt to a unique context. Henry Mintzberg speaks of 'craft' — a discipline combining theoretical knowledge with practical experience. The best managers blend analytical thinking with emotional intelligence.
What competencies should a good manager have in 2026?
Key 2026 manager competencies (per WEF Future of Jobs, LinkedIn Global Talent Trends): 1) Strategic and analytical thinking. 2) Adaptability and change management (VUCA/BANI). 3) Emotional intelligence — empathy, self-awareness. 4) Communication (including async and remote). 5) Coaching and developing people. 6) Data literacy — understanding data, not just intuition. 7) Digital fluency — AI, collaboration tools. 8) Diversity management. 9) Critical thinking. 10) Continuous learning — lifelong learning.
Other terms starting with C
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