The primary challenge faced by organizations and managers today is to creatively solve business problems. The principles of management are guidelines using which managers can tackle business challenges. Show
The principles of management have been categorized into the four major functions of planning, organizing, leading, and controlling popularly known as the P-O-L-C framework. The P-O-L-C Framework
PlanningPlanning is the first and the most important function of management that involves setting objectives and determining a course of action for achieving those objectives. Planners are essentially the managers who are best aware of environmental conditions facing their organization and are able to effectively analyze and predict future conditions. It also requires that managers should be good decision makers. Planning involves selecting missions and objectives and the actions to achieve them, it requires decision making, i.e. choosing future courses of action from among alternatives. Planning means determining what the organization’s position and situation should be at some time in the future and deciding how best to bring about that situation. It helps maintain managerial effectiveness by guiding future activities. Planning as a process typically involves the following steps −
Types of Planning
OrganizingOnce a manager has created a work plan, the next phase in management cycle is to organize the people and other resources necessary to carry out the plan. Organizing should also consider the resources and physical facilities available, in order to maximize returns with minimum expenditure. Organizing may be referred to as the process of arranging and distributing the planned work, authority and resources among an organization’s members, so they can achieve the organization’s goals. Organizing involves the following steps −
Organizing at the level of a particular job involves how best to design individual jobs so as to most effectively utilize human resources. Traditionally, job design was based on principles of division of labor and specialization, which assumed that the more narrow the job content, the more proficient the individual performing the job could become. LeadingOrganizations as they grow, develop complex structures with an increasing need for co-ordination and control. To cope and manage such situations, leadership is necessary to influence people to cooperate towards a common goal and create a situation for collective response. Leading entails directing, influencing, and motivating employees to perform essential tasks. It also involves the social and informal sources of influence to inspire others. Effective managers lead subordinates through motivation to progressively attain organizational objectives. Personality research and study of job attitudes in Behavioral Science provides important insight on the need for coordination and control. Thus it becomes important for leadership to create harmony among individual efforts to collectively work towards organizational goals. ControllingManagers at all levels engage in the managerial function of controlling to some degree. Two traditional control techniques are budget and performance audits. An audit involves a physical examination and verification of the organization’s records and supporting documents. A budget audit provides information about where the organization is with respect to procedures followed for financial planning and control, whereas a performance audit might try to determine whether the figures reported are a reflection of actual performance. Controlling involves measuring performance against goals and plans, and helping correct deviations from standards. As a matter of fact, controlling facilitates the accomplishment of plans by ensuring that performance does not deviate from standards. Controlling is not just limited to organization’s financial state, but also spans across areas like operations, compliance with company policies and other regulatory policies, including many other activities within the organization. The management functions thus most effectively cover the broad scope of a manager’s duties and responsibilities. Though the nature and complexities faced by businesses have undergone a vast change over the years, the functions of management remain the same. Is the process of establishing an overall course of action?Planning begins at the highest level and works its way down through the organization. Step one is usually called strategic planning, which is the process of establishing an overall course of action.
What is the first step in the management by objectives process quizlet?In the management by objectives (MBO) process of goal setting, goals are not well-defined, giving managers and employees more flexibility to respond to changing conditions. The first step in goal setting is to evaluate available resources.
What is the first step in the five step management process quizlet?Planning, Organizing, Leading, Controlling.
What is the process of establishing an overall course of action for a business called Group of answer choices?Planning for a business starts with strategic planning—the process of establishing an overall course of action. Management first identifies its purposes, creates a mission statement, and defines its core values. A SWOT analysis assesses the company's strengths and weaknesses and its fit with the external environment.
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