Management Functions And Social Economic Systems Commerce Essay


Management means a development, creating and maximizing the use of socio-economic systems at different levels. According to Gomez-Mejia, Luis R.; David B. Balkin and Robert L. Cardy (2008), management is considered as administration of social and economic systems, including manufacturing. The main functions of management are planning, organizing, leading and controlling. The relationship of these functions is determined by the fact that you cannot manage unorganized system, the better organized company, the less it needs to be managed.

I would like to consider all above mentioned management functions more closely. Planning involves deciding what should be the goals of the organization and what should do the members of the organization to achieve these goals.

According to Sanjay Rane (2007), strategic planning is a set of actions and decisions taken by management, which leads to the development of specific strategies designed to help the organization achieve its goals. The strategic planning process is a tool to assist in making decisions. Its mission - is to provide the innovations and changes in the organization to a sufficient degree. The strategic plan should be supported by extensive research and evidence. To compete effectively in today's business world, a firm must continually collect and analyze vast amounts of information about the industry, market, competition and other factors. The first and perhaps the most important decision in planning is to select the organization's goals. 

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The main reason for organization existence -is its mission. Mission details the status of the company and provides direction and guidance for defining goals and strategies at different organizational levels. Organization's mission must include the following: 

1. The task of the firm in terms of its core services or products, its core markets and core technologies. 

2. External environment of the firm, which defines the working principles of the firm.

3. Organization's culture. What type of working environment exists within the firm? What types of people are attracted to this climate? 

To choose a mission, management must answer two questions: "Who are our customers?" and "How can we meet the customers' needs?" Client can be anyone who uses the results of the organization. Customers' of non-profit organizations will be those who use its services and provide its resources.

As an example I would like to use Google Corporation. Mission of the company is: "Organization of the world's information and ensuring its availability and benefits for all". As a first step towards this goal, Google founders Larry Page and Sergey Brin developed a new approach to web search, which quickly became popular among Internet users around the world. Today Google search is widely recognized as one of the largest in the world and is a free and easy to use service that usually displays relevant search results for requiring only a fraction of a second.

Considering organizing - is the process of creating the structure of the enterprise, which enables people to work together effectively to achieve its objectives. According to Functions of Management in Business Organizations (2009), one of the main functions of management is organizing function, which considers the formation of permanent and temporary relationships between all departments of the firm determination of the order and conditions of their functioning. Organization, as the process, is a function of coordination of many tasks.

Contents of the organizing are: 

1. Delegation of authority.

2. Organization relationships, streamlining operations.

3. Division of organization unit. 

According to Sanjay Rane (2007), delegating is establishing a relationship between levels of authority (only vertical). With the delegation, there is a transfer of tasks and powers of a person who takes responsibility for the performance. Thus, the delegation is to transfer responsibility and authority. Responsibility is an obligation to perform a specific task and to be responsible for its satisfactory solution. Powers are limited with the right to use the resources of the organization and direct the efforts of some staff to perform specific tasks (actually commanding people). There are two types of powers: 

1. Linear power - powers are transferred directly from the head of a subordinate. Linear power gives the head of institutionalized power of influence on subordinates. Delegation of authority line creates a hierarchy of levels of the organization. 

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2. Staff authority - this authority is based on performing a particular function. Headquarters units may be: 

Advisory (advising line managers).

Serves unit (marketing, personnel services, logistics and marketing, etc.).

Personal line manager (secretary, personal assistant).

As an example of the Organizing function, can be named "Procter & Gamble". This company considers a rule that company's manager can be only insider, man/woman, who start from the basic position and knows all the details of company organizational structure. "Procter & Gamble" does not hire managers from the outside.

Leading - is the skill set that an individual has to influence a group of people, making this group work with enthusiasm in achieving common goals. Also leading is defined as the ability to take initiative, manage, hold, promote, encourage, motivate and evaluate a group or team. In business management leadership is the exercise of the executive activity in a project effectively and efficiently, whether personal or institutional management (within the organization's administrative process). Leading implies that one person (leader) can influence and motivate others (followers). Hence, in studies on leadership it emphasizes the power of persuasion and influence. 

In planning and organization of the leader, it is determined exactly what the organization should perform, when, how and who, in his opinion, should do it. If the choice of these decisions is made effectively, the head gets the opportunity to make their decisions in the case, practicing the basic principles of motivation. Motivation - is the process of encouraging yourself and others to work to achieve personal goals or objectives. 

In my opinion, one of the best examples of a person with leadership skills is Steve Jobs. With his name are connected unprecedented rise of Apple Inc. in the latest 90-ies. This person embodies the spirit of the company, its innovations.

The fourth management function is controlling. According to Frank D. Kanu (2009), controlling - is a process that ensures the achievement of organizational goals. It is necessary to detect and resolve emerging problems before they become too serious, and can also be used to encourage success. The monitoring process consists of setting standards, changes in the actual results achieved, and adjustments in the events with the results achieved. Controlling - is critically important and complex management function. One of the most important features of control that should be considered, is that the control must be comprehensive. Every manager, regardless of rank, must control as an integral part of their duties, even if nobody to him specifically instructed. 

In my opinion, UPS can be considered as an example of organization with clear controlling function. In recent years company has implemented tracking number online controlling. This innovation gives an opportunity for the sender to track where his goods are situated at the moment on their way to the client.

I think that the four functions of management - planning, organizing, leading and controlling have two common characteristics: they all require decision-making and for all of them communication and information exchange is very important. This allows obtaining information to make correct decisions and to make the decision clear for the other members of the organization. Decision-making - it is a choice of how and what to plan, organize, motivate and control. This constitutes the essence of the leader.