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FUNDAMENTALS OF MANAGEMENT.
Term Paper ID:28247
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Essay Subject:
Traditional vs modern leadership; planning; mission statements; goal setting & objectives; feedback; organizational coordination & control.... More...
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15 Pages / 3375 Words
10 sources, 62 Citations,
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Paper Abstract:
Traditional vs modern leadership; planning; mission statements; goal setting & objectives; feedback; organizational coordination & control.
Paper Introduction:
Basic Fundamentals of Management
Introduction
Traditionally, management refers to both the activities and the people involved in the basic functions of running an organization: planning, organizing, directing, leading and coordinating activities. Recently, some management experts have contended that this traditional view is outdated and that management in today's world must place greater emphasis on leadership skills, including establishing and communicating a company's vision and goals and guiding the employees of the company toward accomplishing. In a recent article, Aramark Corporation was identified as a major player that was using differentiated growth, market focus and organizational structure strategies to set is apart its competitors and to dominate the on-site food ser
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Therefore, in asituation where a goal is pre-determined, management must encourageparticipation regarding the means of accomplishing the goal. Complete MBA Companion. [16] Ibid. [61] Ibid. Thus, through theproper selection, assignment, and coordination of tasks, management canmobilize its resources to achieve more than would have been possiblewithout delegation.[44] Delegation also gives management an opportunity to handle aspects ofthe job that no one else can do. "Overview of Leadership in Organizations." The Management Assistance Program for Nonprofits. [22] Ibid. [44] Ibid. By workingbackward, management will be able to identify precisely which inputs (orresources) are needed to carry out the processes.[12] For each result a company wishes to achieve, management must create awell-developed, comprehensive plan that includes a timetable for specificobjectives.[13] Whether the system for which the result is desired is anorganization, department, business or project, the basic planning processtypically includes similar activities carried out in similar sequence.[14]The complexity of the various phases depends on the scope of the system.For example, in a large corporation such as Aramark Corp., the followingphases would be carried out in the corporate offices, in each division, ineach department, in each management group:1 Identify the Mission During planning, management must identify the overall purpose orresult that the plan is to achieve. When employees participate in decision making, theygenerally experience increased motivation, morale and job performance.[46]Thus, the greater the employee participation, the greater the employeecommitment to the job and the organization. [38] Ibid., 219. For example, McNamara notes that duringstrategic planning, it is critical to reference the mission, or overallpurpose, of the organization.[15]2 Take Stock Management must then "take stock" of all the resources at its disposalto achieve the mission as well as all other factors that might aid orobstruct the company's ability to achieve its mission. For example, management will need skillssuch as project planning, supervising team members, and handling personnelproblems as they arise.[45] In addition, employees will learn skills theymay not have an opportunity to develop if management is not willing todelegate its authority. Online: [http://www.mapnp.org/library/mgmnt/prsnlmnt.htm#anchor1 12225.McNamara, Carter. [6] McNamara, Planning. [27] McNamara, Planning. Corporation on a Tightrope.New York: Oxford University Press, 1996: 2 2. [14] McNamara, Planning. Furthermore,as organizations grow and add more people to perform more tasks, managementwill find it necessary to increase the number of organizational units.Effective organizational design will minimize any incompatible units beforethey occur.[4 ] There are several methods on which management can rely to attempt toensure the compatibility of its organizational design. [3 ] Ibid. [28] Ibid. Online:[http://www.mapnp.org/library/cntrllng.htm]. Specifically, delegation allowsmanagement to divest itself of some responsibilities, thus allowing it tofocus on other more important goals and objectives.[43] Generally, increased productivity is the most significant benefit thatcan be derived from directing subordinates through the delegation ofmanagement's authority. Consequently, a manager ofAramark will need to understand the traditional management functions andhow such functions can be adapted to the continuing development ofAramark's organizational structure. [11] Ibid. [47] Ibid. New York: Oxford University Press, 1996.The Wharton School. Basic Fundamentals of Management Introduction Traditionally, management refers to both the activities and the peopleinvolved in the basic functions of running an organization: planning,organizing, directing, leading and coordinating activities. Inputs include resources such as raw materials, money,technologies and people that are processed to achieve the goals set for thesystem. Corporation on a Tightrope. "Basic Guidelines for Successful PlanningProcess." The Management Assistance Project for Nonprofits. McNamara points out that there are varioustypes of planning in organizations, including strategy planning, businessplanning, project planning, staffing planning, advertising and promotionsplanning, among others.[8] However, the factors common to these many kindsof planning are the various phases of planning and guidelines for carryingthem out as effectively as possible.[9] A. [45] Ibid. [57] McNamara, Carter. [29] Ibid. It is critical that management exchange information with allparts of the system in order to function effectively.[32] McNamaraadvocates that, when planning, management should solicit input fromeveryone who will responsible for carrying out parts of the plan, includingrepresentatives from each of the groups that will be affected by theplan.[33]Organize Organizing is the second major function of effective management.Organizing includes allocating and configuring the organization's resourcesto accomplish the preferred goals and objectives establishing during theplanning processes.[34] Specific examples of organizing within a companyinclude organizing new departments, human resources, office and filesystems or re-organizing businesses. "Basic Guide to Management and Supervision." TheManagement Assistance Program for Nonprofits. The Portable MBA in Management. New York: HarperCollins Publishers, 1991: 347. [36] Management must consider these designfactors to determine the levels of hierarchy and reporting relationshipsnecessary to produce the desired culture and outcomes toward theorganization's mission.[37] Thus, the challenge to the manager when organizing is how to arrangeand align his or her resources in the most compatible and effective way.Each department's tasks, including technology, environment and objectives,must fit with its employees, including their characteristics, values andlearning style.[38] In addition, the structure, measurements, reward systemand personnel selection and development systems must all be compatible witheach employee's needs, abilities and expectations.[39] Consequently,managers must have a good understanding about each job's requirements andthe abilities and skills of each person asked to do the job. Nonetheless,management must exercise some form of control over the organization, or theorganization would not exist. [5 ] McNamara, Carter. Thus, when subordinates complain that goals areinconsistent, managers should be flexible enough to reconsider theirexpectations.[2 ] The critical consideration regarding the goal-setting process is thatgoals must be understood and accepted if they are to be effective.[21]Subordinates are more likely to accept goals if they feel they wereinstrumental in generating them. Ideally, deadlines are set for meeting eachresponsibility.[28]7 Write and Communicate a Plan Document Management should create a written plan document that is communicatedwidely among all managers and relevant employees. [12] Ibid. [58] Ibid. [25] Ibid. Outcomes are another type of resultsuch as creating more jobs for workers or enhancing the quality of life forcustomers.[11] Generally, the planning process works backwards through the system.Thus, management must first identify the results (outcomes and outputs) itwishes to achieve and then it will work backwards through the system toidentify the processes needed to produce the desired results. If management has performed the first two majorfunctions required of it, namely planning and organization, it will haveall the information necessary to effectively direct its employees in themanner most efficient to achieve the company's mission. However, assigning a goal to a subordinatewithout that subordinate's participation can work if working conditions aregenerally conducive to the accomplishment of the goal.[22] Consequently, anoverall management attitude of understanding and supporting is necessaryfor the success of goal accomplishment. [4] The Wharton School. Again, for example,during strategic planning, management will conduct a scan of all thevarious forces or major influences that might effect the organization.[16]3 Analyze the Situation It is at this stage that management should consider preparing a SWOTanalysis, which analyzes the organization's strengths, weaknesses,opportunities, and threats.[17] Based on the SWOT analysis and alignment tothe overall mission of the system, management must establish a set of goalsthat build on strengths to take advantage of opportunities, while buildingup weaknesses and warding off threats.4 Establish Goals Goals are specific accomplishments that must be accomplished toachieve a larger, overall result from the system, for example, the missionof an organization.[18] Specific goals are measurable, unambiguous andbehavioral and reduce misunderstanding about what behaviors will berewarded.[19] Goals must also be consistent. [32] Ibid. Empowering Employees Through Delegation. "Management Function ofCoordinating/Controlling: Overview of Basic Methods." Management AssistanceProject for Nonprofits. [21] Whetten, 347. However, there are numerous importantbenefits derived by the organization as well as management when tasks andresponsibilities are properly delegated. Thus, the single most important feature of anyorganization is the management and leadership skills of its executives andemployees and their ability to adapt their knowledge of traditionalmanagement methods to the ever-changing business world. [4 ] Ibid., 221. The Planning Process Every organizational system consists of inputs, processes, outputs andoutcomes. Goals that are inconsistent inthe sense that they are logically impossible or incompatible createfrustration and alienation. It requires that management monitors and adjustsresources and processes to achieve goals and objectives in a highlyeffective and efficient fashion.[6 ] Examples include use of financialcontrols, policies and procedures, performance management processes,measures to avoid risks.[61]Conclusion In its most basic form, an organization is two or more people workingtogether to reach a goal. [34] McNamara, Management. "Overview of Leadership in Organizations." TheManagement Assistance Program for Nonprofits. In addition,the objectives of the goal are most likely to be accomplished when thegoals are specific, consistent, and difficult.[24]5 Establish Strategies & Objectives to Reach Goals Once management has identified the organization's goals as well as theparticular strengths and weaknesses of the organization, it must establishthe most effective strategies likely to accomplish the desired result.[25]Strategies or activities are the methods or processes required to achievethe goals. Online:[http://www.mapnp.org/library/mgmnt/prsnlmnt.htm#anchor1 12225]. [9] Ibid. [18] Ibid. Irwin Professional Publishing, 1994. "Management Function of Coordinating/Controlling: Overview of Basic Methods." Management Assistance Project for Nonprofits. These methods candelineate ways people in the organization should perform their tasks whilespecifying what behavior is acceptable.[42] Finally, the goals and plansestablished during the planning process and the identification of theorganization's mission at any given time also serve to aid organizationwithin a company because they set timetables and specific actions for thecompany's employees.Direct Directing subordinates by delegating authority can be simultaneouslyone of the most difficult and one of the most effective means ofstreamlining an organization. Complete MBA Companion. [3] Ibid. [2 ] Ibid. [2] Reynolds, Dennis. Online: [http://www.mapnp.org/library/mgmnt/prsnlmnt.htm#anchor1 12225.McNamara, Carter. New York: John Wiley & Sons, 1993.McNamara, Carter. [55] Ibid., 218-22 . Thus, it is imperative that managementacknowledges to its employees and other key stakeholders when the problemhas been solved or the goal has been met. Consequently,effective delegation helps management to make the best use of availablehuman resources and to achieve the highest possible rate of productivity.It also provides an opportunity for new ideas, viewpoints, and suggestionsto flourish.[48] In addition, effective delegation makes for faster, moreeffective decision making because an organization is most responsive tochange in the environment when individuals closest to the problems madedecisions related to those problems.[49] Such individuals have the mostinformation on which to base an intelligent decision. Furthermore, the entire system of managementis the attempt to control the organization's forces to achieve a specificgoal or mission. Effectivegoals are both understood and accepted by subordinates. [31] Ibid. [56] Ibid., 214. [39] Ibid., 22 . Developing Management Skills, 2nded. [19] Whetten, David & Cameron, Kim. However, in a survey of approximately 9 executiveleaders, Stuart Hart and Robert Quinn found that "the highest levels ofperformance were achieved by executive officers with high levels of'behavioral complexity'--leaders who saw themselves as focusing on broadvisions for the future while also providing critical evaluations of presentplans."[53] Thus, leaders of the future must have the ability to deal with thecomplexity of the modern organization and the chaotic forces in today'sglobal markets.[54] Such leadership requires the ability to analyze, thinklogically, and grasp and add ideas and concepts. [46] Ibid. [48] Ibid. Online: [http://www.mapnp.org/library/cntrllng.htm].McNamara, Carter. They view any form of control iscompletely counterproductive to management and employees.[59] Rather, experts now prefer the use of the term "coordinating," whichindicates that management serves to facilitate interaction among employeesand departments rather than control such interaction. Organizational control is actually part of planning, butit involves the organization's actions after management has agreed on acourse of conduct. [1 ] Ibid. IrwinProfessional Publishing, 1994. New York: HarperCollins Publishers, 1991: 347.----------------------- [1] McNamara, Carter. [53] Ibid., 214. Lanham, Maryland:Pitman Publishing: 13. Recently, somemanagement experts have contended that this traditional view is outdatedand that management in today's world must place greater emphasis onleadership skills, including establishing and communicating a company'svision and goals and guiding the employees of the company towardaccomplishing.[1] In a recent article, Aramark Corporation was identifiedas a major player that was using differentiated growth, market focus andorganizational structure strategies to set is apart its competitors and todominate the on-site food service business.[2] Generally, experts maintain that management today must be morefacilitative, participatory and empowering in how visions and goals areestablished and carried out.[3] For example, The Wharton School's CompleteMBA Companion argues that the old certainties in general management arebreaking down.[4] The School maintains that effective general managementtoday includes the ability to communicate, to be approachable, to encourageand respond to the upward flow of ideas, and to adopt great behavioralflexibility.[5] Notably, many business experts assert that the apparent dichotomybetween traditional management and modern leadership is not an actualchange in the management functions.[6] Rather, modern theory merelyemphasizes certain aspects of management. [43] Nelson, Robert. Online: [http://www.mapnp.org/library/plan_dec/gen_plan/gen_plan.htm].Nelson, Robert. [52] Sifonis & Goldberg, 17. [41] Ibid., 231. Strong leadership requires the ability to set the direction for theorganization and its groups and individuals and influence people to followthat direction. [23] Ibid. [26] Ibid. Consequently, they must be aware of thegaps in their knowledge and surround themselves with personnel who possessthat knowledge.[56]Control Finally, organizational coordination and control is the process oftaking a systematic approach to figuring out if the organization's actionsare having their intended effect.[57] Today, many business experts areaverse to the idea of management "control" because the term appears toorigid to allow organizations the responsiveness and adaptability necessaryto succeed in today's rapidly changing world.[58] Such experts contend thatmanagement should not exercise control over its organization's interactionsbut should exist to support its employees' efforts to be fully productivemembers of organizations and communities. [49] Ibid. Today, both the traditional and themodern view continue to acknowledge that an effective manager mustunderstand the company's desired results and must marshal the company'sresources to attain those results through planning, organizing, directing,leading and controlling the resources of the organization.Planning Planning is one of the most common sets of activities in management.Planning involves setting the direction for some process or project andthen guiding the resources of the organizational system to follow thatdirection.[7] Thus, planning an organization's business activities includesidentifying the company's goals, objectives, and methods and determiningthe resources needed to carry out the company's responsibilities by thedate needed for completion. Thus, attention to the goal-setting process is important. [36] Cohen, Allan. New York: JohnWiley & Sons, 1993: 211. Generally, objectives serve as milestonesalong the way when implementing the strategies.[27] Responsibilities areassigned, including for implementation of the plan, and for achievingvarious goals and objectives. This step should not be ignored,as it often is when management moves on to the next problem or goal.[31]9 Feedback Finally, subordinates must receive frequent feedback on theirprogress. Online:[http://www.mapnp.org/library/mgmnt/prsnlmnt.htm#anchor1 12225]. BibliographyCohen, Allan. Online:[http://www.mapnp.org/library/plan_dec/gen_plan/gen_plan.htm]. [37] Ibid. [51] Ibid. In addition, other key stakeholders such asboard members, investors, customers, and clients may request informationregarding the organization's plans to achieve its mission. Whether the goalsare imposed or self-generated, the process must occur within an overallclimate of management support.[23] As Whetten & Cameron (1991) point out,one of the keys to self-motivation is self-determination. [59] Ibid. Developing Management Skills, 2nd ed. [54] Ibid., 215. Online: [http://www.smartbiz.com/sbs/arts/eed1.htm].Reynolds, Dennis. Resources include the people, materials, technologies and money,among other things, required to implement the strategies or processes.[1 ]The costs of these resources are often depicted in the form of a budget.Outputs are the tangible results produced by processes in the system, suchas products or services for consumers. [15] Ibid. One such method ishaving two or more units report to the same manager, thereby linking theunits together and enabling the manager to solve intra-unit conflicts asthey arise.[41] Another method of organizing departments effectively is bybuilding staff units and initiating rules and procedures. Consequently, itis critical that management plans be written down and communicatedwidely.[29]8 Acknowledge Completion and Celebrate Success McNamara notes that this critical step can often be ignored, to thedetriment of the company's eventual success and future planningefforts.[3 ] The purpose of a plan is to address a current problem orpursue a development goal. Consequently, if both managersand team members benefit from delegation, the organization as a wholebenefits.[47] When management delegates tasks according to the skills and abilitiesof each member of the work group, the department as a whole is likely toproduce a higher level and greater efficiency of work. [35] Ibid. Generally, management must seek toorganize its company's resources in the manner most likely to achieve itsgoals in an optimum fashion.[35] Organizing a department or project requires that management analyzeits organizational design factors, which include the people in the jobs,the tasks they perform, and the formal organizational structure andoperating systems in place. [7] McNamara, Carter. They must also possess theability to establish the image and reputation of their organizationsthrough external communications while connecting with the people insidetheir organizations.[55] However, strong leaders also accept that theycannot be experts on every subject. Empowering Employees Through Delegation. [24] Ibid. [33] Ibid. Consequently,decision making can be achieved more expediently through delegation, thusallowing the organization to be more responsive and hence more competitive.Lead Leading is establishing direction and influencing people to followthat direction.[5 ] However, McNamara points out that there are manyvariations and different areas of emphasis to this very simple definition.Nonetheless, business experts tend to agree that whether you're anexecutive or an entry-level worker in your organization, it is critical foryou to have strong skills in leadership.[51] Leaders at different levelsalso have strong impacts on their divisions. "Basic Guide to Management and Supervision." The Management Assistance Program for Nonprofits. A written document, withupdates, is the best way to ensure that this information is distributedefficiently and effectively. [62] Ibid. Lanham, Maryland: Pitman Publishing.Whetten, David & Cameron, Kim. Thus, whether an organization is highlybureaucratic or changing and self-organizing, the organization must have amission.[62] In order to achieve its mission, the organization will setgoals, create a plan to achieve its goals, organize itself into thestructure most compatible with achieving its goals, and requires thedirection, leadership and control of management to ensure its continueddedication to its goals. [17] Ibid. " Managed-services Companies: The New Scorecard for On- site Food Service." Cornell Hotel & Restaurant Administration Quarterly, June 1999.Sifonis, John & Goldberg, Beverly. [42] Ibid., 232. [13] Sifonis, John & Goldberg, Beverly. " Managed-services Companies: The New Scorecardfor On-site Food Service." Cornell Hotel & Restaurant AdministrationQuarterly, June 1999: 64. "Basic Guidelines for Successful Planning Process." The Management Assistance Project for Nonprofits. Objectives must be selected to be timely and indicative ofprogress toward goals.[26]6 Create Time Lines With Each Objective Objectives are the specific accomplishments that must be accomplishedto achieve the goals in the plan. [8] Ibid. The Portable MBA in Management. Also, as plans change,management must ensure that each manager and employee is aware of thechange in the plan and that each manager and employee is aware of what heor she is supposed to be doing at any given time. [5] Ibid., 14. [6 ] Ibid. There are many different styles of leadership, includingdelegators of authority, dictators, or consensus builders.[52] And in eachcase, management's leadership style will impact the internal structure ofthe organization. Online:[http://www.smartbiz.com/sbs/arts/eed1.htm].
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