Company Functions, Management Qualities, and Planning

Posted on Jan 19, 2025 in Business Administration and Innovation Management

Company Functions and Management

1. Company Functions and Leadership

The functions of a company address various aspects, including leadership. Here’s a brief explanation:

  • a) Core Functions: Planning, organization, management, control
  • b) Management Levels:
    • Senior Management: Takes high-level decisions (e.g., new product development, acquisitions) and oversees general operations.
    • Middle Management: Develops detailed plans to implement top management’s strategies, selects production equipment, manages dealer networks, and evaluates employee performance.
    • Operational Direction: Assigns specific tasks, evaluates daily work, and maintains direct contact with workers.

2. Essential Qualities of a Manager

  • Technical Skills: Managers need basic knowledge of the work they oversee to communicate effectively and gain credibility with their team.
  • Human Relations: Maintaining good, honest relationships with the team is crucial. A manager’s effectiveness depends on the trust of their group.
  • Reflective Thinking: Managers must approach problems logically and consider long-term perspectives.

The Four Functions of a Company

3. Defining the Four Functions

  • Planning: Setting objectives and determining the strategies and tasks needed to achieve them. This is the first step.
  • Organization: Implementing plans through collaborative efforts and coordinating system elements. This involves dividing work among individuals and groups.
  • Management: Ensuring that individuals fulfill their duties to achieve the desired objectives. This involves exercising influence and authority.
  • Control: Comparing results with planned outcomes and addressing any discrepancies.

Strategic Planning and Business Elements

4. Strategic Planning

Long-term planning is also known as strategic planning. It involves these tasks:

  1. Determine the primary mission of the organization.
  2. Analyze the organization’s environment.
  3. Identify and analyze internal strengths and weaknesses.
  4. Set objectives.
  5. Develop strategies to implement the plans.

5. Elements of Business Plans

  • Objectives: These should be achievable and attainable, representing the desired end result. Effective objectives must:
    1. Be challenging yet realistic.
    2. Be specific and measurable.
    3. Have full support from superiors.
    4. Generate enthusiasm among subordinates.
    5. Be communicated to all involved subordinates.
    6. Be expressed in writing.
    7. Be discussed regularly in meetings.
  • Policies: Performance standards that guide and limit actions related to company plans.
  • Procedures: Specific guidelines for actions, such as recruitment, purchasing, and returns.
  • Rules: Regulations on what can and cannot be done in specific situations or times.
  • Budgets: Financial plans expressing expectations, such as cash, sales, income, and expenses.