Definition of Management

Speaking of financial management issues, actually it cannot be separated from discussing problems of management and money, because management means managing and managing, while what is regulated is everything related to money that can be applied starting from the lives of individuals, households, groups, organizations, companies and countries, because life in each of these segments will always be related to money to achieve their desires and goals. In general, financial management can be interpreted to regulate and administer all sources and uses of finance for the progress and goals of the company. Before proceeding further in financial management, it is worth reviewing at a glance about management and money. Management that comes from the word "to manage" generally contains three meanings, namely:

a. Management as a process.
A fact that can be seen in daily life of individuals, groups or companies, to achieve a certain goal must go through a process in a certain time dimension as well. Management as a process by which the implementation of a particular goal, organized and monitored (encylopedia of the social scienses). Implementation of an activity to achieve a predetermined goal requires structuring, management, and supervision so that the objectives set can achieve the goals.

b. Management as a collectivity.
Management is the collectivity (collection) of people who carry out management activities in one organization and organization, this group of people comes from different backgrounds, education and expertise. A number of people who carry out management activities within a particular body are called management. What is activity? in the management of the activity referred to is the activity or function carried out by everyone, both leaders or managers and employees in a company organization such as; planning (planning), organizing (organizing), mobilization and direction (actuating)
/ directing / stafing), and supervision (better known as POAC). People referred to as leaders or managers in a company's management activities are officials or people who are responsible for the implementation of management activities so that the goals of the unit / organization they lead are achieved by using the help of others called collectivity.

c. Management contains artistic and scientific value.
Management as an art serves to achieve tangible goals that bring benefits and results. Management as an art is needed in carrying out the vertical and direct (top down or bottom up) direction and communication functions. Suppose the company manager is 35 years old while the employee is 50 years old, then it takes an art in giving orders so that employees feel comfortable accepting orders from their younger supervisors. This condition applies in carrying out strategies, operational standards, technical guidelines, informal communication and social relations, especially in the corporate organizational environment. Management as a science; that management can be observed, studied and practiced, then management functions to explain the phenomena of each activity undertaken. It can be concluded that management in practice is the art and science of planning, organizing, preparing, directing and supervising human resources and natural resources owned and used in management activities to achieve predetermined objectives.