Foundations of Management
Management involves the process of achieving the objectives of the business organization by bringing together human, physical, and financial resources in an optimum combination and making the best decision for the organization while taking into consideration its operating environment.1 Most organizations, from small to large, have developed and implemented their management philosophies in the form of a business plan. The business plan is a roadmap for the company to follow its processes with efficiency and effectiveness. The business plan is the vision and direction the company wishes to take in order to be successful. The basic functions of management are characterized in four unique areas. The four functions of management are: planning, organizing, directing, and controlling. Using these four functions provide the company with tools useful for monitoring strategic, tactical and operational decisions, regardless of the organization’s age.
Planning
Planning is the most important part of the management foundations. Planning sets the groundwork for aligning the other three foundation areas to the business plan.
Planning is determining at what point the company is at, where it needs to go and how to get there. Planning closely parallels with the use of personnel resources to the task at hand. As the business climate changes, positive or negative to the company, so does the planning process. Today, many companies used a planning theory called SWOT, or strengths, weaknesses, opportunities and threats. While working for UPS in the mid 1980’s, ground package delivery competition against them was very limited. UPS did not see a need to improve its’ ground business because it had a high percentage of the market share. As ground delivery companies emerged or improved their service, UPS had to re-examine its’ strategic planning process. Emerging competitors such as DHL, FedEx, RPS and the USPS simply offered the appearance of better value than UPS.
Planning
Planning is the most important part of the management foundations. Planning sets the groundwork for aligning the other three foundation areas to the business plan.
Planning is determining at what point the company is at, where it needs to go and how to get there. Planning closely parallels with the use of personnel resources to the task at hand. As the business climate changes, positive or negative to the company, so does the planning process. Today, many companies used a planning theory called SWOT, or strengths, weaknesses, opportunities and threats. While working for UPS in the mid 1980’s, ground package delivery competition against them was very limited. UPS did not see a need to improve its’ ground business because it had a high percentage of the market share. As ground delivery companies emerged or improved their service, UPS had to re-examine its’ strategic planning process. Emerging competitors such as DHL, FedEx, RPS and the USPS simply offered the appearance of better value than UPS.
References: 1. www.ucs.mun.ca/~rsexty/business1000/glossary/M.htm 2. Carnegie, Dale (1936). How to win friend and influence people