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As indicated in the model, the functions of management form the central part of the process. However, the model also show that work methods and managerial roles, as well as work agendas, feed into the management functions. A manager's working knowledge and key management skills also are important factors that contribute to high performance (achieving goals).
To understand how management can influence in an organization, we need to define the organization.
For most of us, organizations are an important part of our daily lives. By organization, we mean two or more persons engaged in a systematic effort to produce goods and services. We all deal with organizations when we attend classes, deposit money at the bank, buy clothing, and attend a movie. We are also influenced by organizations more indirectly through the products that we use.
It is useful to keep in mind that the management process applies not only to profit-making organizations but also to non-for-profit organizations. A non-for-profit organizations (sometimes called a nonprofit organization) is an organization whose main purposes center on issues other than making profits. Common examples of non-for-profit organizations are government organizations (e.g. the federal government), educational institutions, cultural institutions and many health-care facilities. Of course, environmental factors (such as the state of the economy and actions by competitors) also have a bearing on ultimate goal achievement.
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