Management company

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Management company
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Management company is an separate entity in organizational and financial sense, created by group of investors to manage some common assets. Typically such company manages capital investment funds, but it also can manage hotels, resorts, office complexes, start-ups, other companies. Profits obtained from investment by management company is split between shareholders. Such arrangement provides better efficiency and risk sharing and is commonly used on financial markets.

Management is a set of activities targeting the resources of organization and performed with the intention of achieving organizational goals in an efficient and effective manner. We can define management as all the processes and actions taken to maintain the company's operations for the most effective achievement of its goals.

Management Process

In management process we can distinguish four basic types of activities[1]:

  • Planning includes a whole range of activities related to setting the company's goals - both short- and long-term. In addition to setting goals, planning also determines the most optimal ways to achieve them. Its mean that during planning process for example: increase in company revenues by 20% annually, we should also consider how we want to achieve this growth
  • Organizing means grouping activities and resources, which in turn should lead to the achievement of the planned goals. Therefore, it is about translating the strategies developed at the planning stage into specific activities assigned to specific persons possessing specific resources. For example, if we are planning a 20% increase in revenues by acquiring new customers, at the stage of organizing, we should, for example, specify new monthly sales plans, the number of recipients acquired, new sales routes or cars for employees
  • Leadership is the management of people who will be motivating and encouraging for them to increase their productivity and to work better for the organization. It's a different set of processes that are supposed to encourage its members to cooperate in the interest of the company. For example: getting new customers and a 20% increase in revenue can not be achieved without motivated and motivated employees by your boss.
  • Controlling means observing the progress and emerging barriers in the organization in the implementation of the planned goals. It is a process of constantly monitoring the current situation and analyzing how it affects the achievement of desired results. When planning a 20% increase in revenue, controlling will concern, for example, the assessment of the extent to which the increase is achieved, what are the results of the work of traders and what type of risk may cause that the goal will not be achieved.


In every company managers are responsible for making decisions. Its means that intentionally or not they take action that affect how functioning of the company.

The responsibilities of managers are[2]:

  • supervising decision routines
  • shaping decision practices
  • providing decision resources

Managers are making decision and they manage human resources, but the owner of the company must be watching over everything.


Every organization uses resources in its operation. Resources are main subject to management which we can distinguish[3]:

  • human resources (workforce and its qualifications)
  • financial resources
  • tangible assets (fixed assets)
  • time
  • intangible assets (licenses, copyrights)



  1. M.Ranganatham,(2006)
  2. F.J. Yates, (2003)
  3. M.Ranganatham,(2006)

Author: Anna Klisiewicz