Company Management Is: Definition, Function, Purpose, Level

May 18, 2019
Company Management Is: Definition, Function, Purpose, Level

Company Management

What is company management? Definition of Company Management in general is a series of elements in the company as a process of leading, directing and administering the resources owned by the company. Through an explanation of the understanding of the company's management, it has been seen that management is an important element that must be owned by a company or business.

In a company, management is an important component that must be owned by the company to realize the vision and mission to be achieved. Without a good company management or a clear organizational structure, the company's goals will be difficult to achieve and actually lead to job obscurity and the responsibility of each member or team.

Deeper about the functions and tasks of corporate management will be discussed in full through this article.

Function of Company Management

How important is company management? From some of the understanding of company management above, so that with a good and structured company management in a business or organization has several important functions, among others, as follows:

1. Lead

The management of the company is run by a manager who acts to lead so that the company's goals can be achieved. The existence of a manager who runs company management has the duty to:

  • Make decisions
  • Communicate
  • Give motivation
  • Determine human resources to enter certain divisions
  • HR Development through assessment of performance results by providing suggestions and promotions.

2. Plan

Management within the company functions as a planner of activities and activities that will be carried out by members of the company. The plan includes:

  • Determine the type of activity
  • Determine the timing of activities
  • Make a target or target for each activity
  • Manage schedules (scheduling)
  • Control costs so as not to overbudget
  • Make standard operating procedures for each activity

This function is very important because without a good company management, the company will find it difficult to move according to its objectives.

3. Arrange (Organizing)

The existence of company management can act as a regulator and liaison between divisions of work so that the implementation of each responsibility is more efficient and effective, such as:

  • Designing organizational structures
  • Determine the job description
  • Delegating responsibilities
  • Establish relationships that distinguish between superiors and staff
  • Describe every thing related to the utilization of human resources.

4. Supervision (Controlling)

Every activity and responsibility of each division within the company needs to be monitored to control if at any time there is a deviation from a division. The manager of the company is obliged to direct, give advice and determine decisions as to what to take in the event of a deviation.

Monitoring, control and observation activities include:

  • Job development
  • Measurement of work results
  • Take corrective actions and correct mistakes

Company Management Level

Generally the level or level of management in the company consists of several parts, including:

1. Top Management

At this level it consists of Boards of Directors, better known as Chief Of Executives, and Senior Executives.

2. Midle Management

At this level consists of the Department of Division Head.

3. Lower Management

This level consists of Superintendents, General Foreman, and Supervisors.

When referring to managerial ability and thinking ability, those who are at the highest level will be demanded for their abilities in conceptual terms. Whereas those whose position is at the lower level will be demanded for their abilities in terms of operational technical and micro capabilities.

Duty of Company Management

To realize these functions, companies usually have several components of company management that are divided based on their duties and responsibilities. Tasks and responsibilities are realized through a system or division or also called a multilevel department, namely:

1. Human Research

This division serves as an appraiser who provides advice and insight into resources that are usually led by an HRD.

2. Credit Risk

Division that is responsible for protecting and providing oversight of company assets and holding complete information that can affect the company.

3. Corporate Treasury

Division that is responsible for managing company finances.

4. Compliance

Division that acts to identify and provide guidance on violations of rules and to design effective rules to support company commitments.

5. Firm Risk Management

Division responsible for developing risk management.

6. Firm Strategy and Execution

Division that is responsible for assisting in decision making.

7. Finance

Division that reports company finances to leaders.

8. Internal Audit

This division is tasked with providing an independent review of the quality of internal controls, risk management, and corporate process governance systems.

9. Market Risk

This division is in charge of managing all market risk exposures in the company's business activities.

10. Operational Risk

Part of the company that works with business units and control groups to help ensure the company has a transparent program.