Functions of Management Successful business is the main aim for organization. In order to be successful, organization should shape its strategic goals and change them from time to time in accordance with constantly changing demands of the market. In order to achieve success, the company should be effective. Effectiveness, in its turn, is the direct consequence of the fact that the company renders necessary services or provides its customers with necessary goods. Besides, these goods or services should be done and served correctly. No wonder that the companies do their best to assess their effectiveness.
Correct assessment as well as correct management helps to improve the strategy and productiveness, therefore, it helps to achieve competitive advantage. So, in order to be successful, the company should realize four main management functions that are crucial to the companys success. There are four main functions of management: Planning, Organization, Motivation and Control. Lets examine them more thoroughly. Planning Function Function of planning implies defining and taking certain regulation, resolution or decision (oral or verbal) concerning goal-setting. Planning is one of the methods used by managers to direct the company to achievement of common business goals. Management process usually begins with planning.
Is Strategic Planning and Information Systems Strategic Planning Relevant to all Organizations?Strategy Strategy is a broad based formula for how business is going to compete, what its goals should be, and what policies will be needed to carry out these goals. The essence of formulating competitive strategy is relating a company to its environment.Porter (1980), Competitive Strategy The ...
Although there are companies that can reach a certain level of success without proper formal planning, still, the company can fail due to mistakes and serious errors in organization, motivation and control functions. Actually, planning should answer the following: – Current position. The managers should evaluate strengths and weaknesses of the company in its main spheres of interest (finance, marketing, personnel, etc) in order to define the real strategic goals the company can reach. – Desirable direction. The managers should define desired results and goals as well as possible obstacles on their way to success; – Possible methods. Managers should define possible methods that can be used by members of organization to achieve strategic goals.
Organization Function This function is extremely important for any successful company. Every member of organization should have instructions concerning his duties, obligations and behavior (Pierce 28).
Besides there organizational rules help to correlate actions and maintain unity of the company. Organizational structure can be compared with the skeleton of a living creature. Organization function is generally defines as coordination of various tasks. There are two main aspects of organizational process: – The company is divided into sub-structures in correspondence with goals and business strategies; – The method of delegation of powers. In this case the manager devolves on person who becomes responsible for certain part of work.
Motivation The manager should define business goals and strategies. Then he has to define and appoint a person who will be responsible for its successful realization. In case the choice was done effectively, the manager has an opportunity to embody his business plans into practice by applying the main principles of motivation. Motivation is examined as a process that stimulates employees to scale up their efforts in order to achieve personal goals or/and the companys business goals. There are two categories of motivation: substantial and processual. Successful manager also needs to understand the basic concepts of demand -reward. In such a way, manager uses various kinds of reward to satisfy the employees demands.
Depending on when a dividend is announced by the subsidiary will determine if the dividend was pre-control or post-control. If a dividend was announced before takeover, then the dividend is pre-control (before the parent company took control). Pre-control can be described as the owner equity of a subsidiary existing at the moment the subsidiary becomes controlled or existing before an acquisition ...
He can use both external rewards (such as remunerations, premiums, advancement, etc) and internal rewards (such as feeling of success and self-importance) that are usually received by means of the work. The approximate hierarchic structure of demands is as follows (Blanchard 28): Self-expression; Respect; Social security; Physiological security Managers should take into account all basic demands in order to increase the companys effectiveness. Control Function Control is the business process that helps the company to achieve its aims. It is generally explored as a system of supervision, examination and verification and is aimed to find out whether functioning business process of controlled subsystem corresponds to undertaken solutions. It also involves drawing-up and performance of certain actions. There are three main aspects of management control: – Establishing standards. This aspect implies correct evaluation of goals that should be achieved within the certain period of time.
It is based on plans developed during the process of planning; – Measurement. This aspect implies correct assessment of achieved goals. It also includes comparison between the achieved and planned; – Preparation of necessary corrective actions; There are several types of control: – Preliminary control; – Current control; – Final control The technology of management control should be done as follows: The manager should choose the concept of control (system, process, or private check-up).
Further, he needs to define the goals of control (expediency, correctness, regularity, and effectiveness) (Nickels 61).
Then he needs to establish the standards of control (ethical, productive, legal, etc).
Then the manager has to choose methods (diagnostic, therapeutic, preliminary, current, final, etc).
Finally, the scope and sphere of control should be determined (continuous, episodic, finance, quality control, etc).
Management accounting assures managers with the needed information to make the decision-making process easyir, to provide motivation for their behavior and actions in needed direction, and to push forward the effectiveness of the organization. It helps managers in implementing their responsibilities for planning, controlling, and decision-making by disclosing them exactly what information is ...
In conclusion we can add that four functions of management have much in common. All of them require decision-making, communication, and exchange of information in order to receive necessary data for undertaking correct solution/measure and to make this decision understandable for other members of company. In such a way, all management functions have great impact on operations management of the organization. These main characteristics assure their interdependence and, therefore, they are often called linking processes that are crucial to the companys success.
Blanchard, Z. (1986).
Leadership and the One Minute Manager. London: Collins Nickels, W.
Understanding Business. Chicago: Irwin. Pierce, J. (1990).
Managing. Glenview, IL: Brown Higher Education.