DORIE ANNE DOLLENTAS 4IND2

FUNCTION OF MANAGEMENT
PLANNING When you are involved with a business it is important that you have a clear direction and that your business has a plan of attack. The business plan is a document that will outline a number of key areas that your business will need to consider to achieve success. The business plan will identify your businesses goals, and look at how you can successfully implement processes and procedures to obtain those goals. This will draw on a range of business areas, including accounting, HR, marketing and operations. How you progress with your business plan can be unique as your business; however the key areas that are usually developed for a business plan are as follows. o Your organizations background o Management structure and plans for your business o Organisational marketing plan o Operations planning o Financial planning of the business o Goals and actions to take with the business Once you have understood these areas, you are ready to move forward with your business plan then you can consider how to structure it. This is a straightforward process. For those who are great at the ideas generation, but tend to get stuck on the nitty gritty details, a business template is the perfect option for you. A template for your business plan will outline the priority information that is required, and whilst you can pay someone to do this for you, there are a number of free templates available. Try doing a quick search of the net and plenty of options come up. Typically your business focus will dictate the precise contents of your business plan, but getting a basic feel for what is required goes hand in hand with the production of a concise plan, tailored just for your business. The contents page of your business plan may read something like this. o Executive Summary o Organisational Goals o Management Plan o Research and Analysis on Target Market o Marketing Plan o Operational Planning

o Financial Organisation o Progress Plans One of the key areas that you will cover in your business plan is the Executive Summary. Again this can be as individual as your business, but it will need to focus on decisions that need to be made by your organization, and sell the reasons for approval of that course of action. The final thing that you will need to consider with your business plan is who your target audience is. If you are a large corporation with a number of external stakeholders, such as shareholders and board members, then you will need to prepare your business plan to reflect this. A business plan that targets this audience will often be detailed in its financial analysis and its progress reporting. If you are a smaller business, or you are self employed then your business plan most likely serves a different purpose. Most likely your business plan is focused on distribution to internal stakeholders. This being the case you will want your plan to focus on goals and progress that needs to be made by the key individuals or departments in the company. An example of this is the strategic business plan, which states internal targets for the organisation, as well as giving information about how to reach the goals laid out in the strategic planning. Whatever you organization is involved in, a business plan is a vital document. Even in its simplest form, there is no doubt that having a set of guidelines and goals is a key to ensuring success and progression in your chosen field of business. LEADING Good leaders are the key to large-scale community organizing. They do not tell other people what to do, but help others to take charge. They do not grab center stage, but nudge others into the limelight. They are not interested in being The Leader, but in trying to create more leaders. They recognize that only by creating more leaders can an organizing effort expand. Lead by creating an example to follow Some leaders are larger-than-life heroes. Some deliver inspirational speeches. Others are excellent organizers. But many leaders inspire others to follow by setting an example. When Rosa Parks refused to give up a bus seat reserved for white people, others followed her example in such numbers that it blossomed into the civil rights movement. Divide-up and delegate work Divide tasks into bite-sized chunks, then discuss who will do each chunk. Make sure everyone has the ability to carry out their task, then let them carry it out in their own way. Have someone check on progress. People do not feel good about doing a job if nobody cares whether it gets done. Appreciate all contributions, no matter how small Recognize peoples efforts in conversations, at meetings, in newsletters, and with tokens of appreciation: thank-you notes, certificates, and awards for special efforts.

Welcome criticism Accepting criticism may be difficult for some leaders, but members need to feel they can be critical without being attacked. Help people to believe in themselves A leader builds peoples confidence that they can accomplish what they have never accomplished before. The unflagging optimism of a good leader energizes everyone. Inspire trust. People will not follow those they do not trust. Always maintain the highest standards of honesty. Good leaders reveal their potential conflicts of interest and air doubts about their own personal limitations. Herald a higher purpose People often volunteer to serve some higher purpose. A leader should be able to articulate this purpose, to hold it up as a glowing beacon whenever the occasion demands. A good leader will celebrate every grassroots victory as an example of what can happen when people work together for a common good. Heralding a higher purpose may require some practice at heralding. Recognized leaders are usually good at public speaking. In Canada, a surprising number of activist leaders belong to Toastmasters! Avoid burn out. ORGANIZING Organizing Function Of Management When it comes to business leadership, one of the most important aspects is the organizing function of management. Indeed, properly implementing the organizing function of management can make or break a business enterprise. Absent a sound system involving the organizing function of management, a company easily can end up belly up and bleeding red. Unfortunately, many business owners do not spend enough time contemplating the organizing function of management. Additionally, when it comes to business planning and the like, very little time is spent outlining and considering the organizing function of management. It is vital for the management of a business to be well trained and well versed in various organizational functions. (Historically, these types of concepts were taught in colleges and universities. However, to a rather significant degree, many colleges and universities have abandoned at least to some degree the focus on business organization training and the like. The organizing function of management impacts many levels of a businesss operations. First of all, the organizing function of management addresses the manner in which people with the organization will interact. Who will report to who. The organizational chart. The lines of authority. All of these are aspects doing most of the work Dont try to run the whole show or do most of the work. Others will become less involved. And you will

of personnel management and organization that falls within the prevue of the organizing function of management. Financial planning and budgeting considerations also falls under the general theme of the organizing function of management. Management personnel needs to be versed in the ins and outs of the budgeting process for the company with which they are employed. They need to understand the spending and budgeting priorities of the enterprise in order to best understand how to allocate all sorts of company resources to ensure maximum profit in the end. The Internet does provide some helpful information for a person interested in finding out more about the organizing function of management and how it is a major part of any businesss overall operating schema. CONTROLLING Controlling is a four-step process of establishing performance standards based on the firms objectives, measuring and reporting actual performance, comparing the two, and taking corrective or preventive action as necessary. This article will give you some information about controlling function of management. Performance standards come from the planning function. No matter how difficult, standards should be established for every important task. Although the temptation may be great, lowering standards to what has been attained is not a solution to performance problems. On the other hand, a manager does need to lower standards when they are found to be unattainable due to resource limitations and factors external to the business. Corrective action is necessary when performance is below standards. If performance is anticipated to be below standards, preventive action must be taken to ensure that the problem does not recur. If performance is greater than or equal to standards, it is useful to reinforce behaviors that led to the acceptable performance. Characteristics of the Control Process The control process is cyclical which means it is never finished. Controlling leads to identification of new problems that in turn need to be addressed through establishment of performance standards, measuring performance etc. Employees often view controlling negatively. By its very nature, controlling often leads to management expecting employee behavior to change. No matter how positive the changes may be for the organization, employees may still view them negatively. Control is both anticipatory and retrospective. The process anticipates problems and takes preventive action. With corrective action, the process also follows up on problems. Ideally, each person in the business views control as his or her responsibility. The organizational culture should prevent a person walking away from a small, easily solvable problem because that isnt my responsibility. In customer driven businesses, each employee cares about each customer. In quality

driven dairy farms, for example, each employee cares about the welfare of each animal and the wear and tear on each piece of equipment. Controlling is related to each of the other functions of management. Controlling builds on planning, organizing and leading. Management Control Strategies Managers can use one or a combination of three control strategies or styles: market, bureaucracy and clan. Each serves a different purpose. External forces make up market control. Without external forces to bring about needed control, managers can turn to internal bureaucratic or clan control. The first relies primarily on budgets and rules. The second relies on employees wanting to satisfy their social needs through feeling a valued part of the business. Self-control, sometimes called adhocracy control, is complementary to market, bureaucratic and clan control. By training and encouraging individuals to take initiative in addressing problems on their own, there can be a resulting sense of individual empowerment. This empowerment plays out as self-control. The self-control then benefits the organization and increases the sense of worth to the business in the individual. Designing Effective Control Systems Effective control systems have the following characteristics: 1. Control at all levels in the business (Figure 19.1) 2. Acceptability to those who will enforce decisions 3. Flexibility 4. Accuracy 5. Timeliness 6. Cost effectiveness 7. Understandability 8. Balance between objectivity and subjectivity 9. Coordinated with planning, organizing and leading Dysfunctional Consequences of Control Managers expect people in an organization to change their behavior in response to control. However, employee resistance can easily make control efforts dysfunctional. The following behaviors demonstrate means by which the managers control efforts can be frustrated:

1. Game playing> control is something to be beaten, a game between the boss and me and I want to win. 2. Resisting control> a blue flu reaction to too much control 3. Providing inaccurate information > a lack of understanding of why the information is needed and important leading to you want numbers, we will give you numbers. 4. Following rules to the letter> people following dumb and unprofitable rules in reaction to do as I say. 5. Sabotaging > stealing, discrediting other workers, chasing customers away, gossiping about the firm to people in the community 6. Playing one manager off against another > exploiting lack of communication among managers, asking a second manager if dont like the answer from the first manager.