Mastering Management Functions: Planning, Organization, and Control
Core Management Functions
- Planning: Defining objectives, actions, resources, and execution strategies.
- Organization: Structuring resources and activities to achieve goals.
- Control: Monitoring performance and taking corrective actions.
- Human Resources: Managing personnel to optimize performance.
Essential Capacities
- Strategic Thinking: Developing long-term plans.
- Capacity Building: Enhancing organizational capabilities.
- Executive Leadership: Guiding and motivating teams.
Modes of Change in a Company
- Conservative: Gradual and cautious changes.
- Reactive: Responding to immediate pressures.
- Anticipatory: Preparing for future trends.
- Proactive: Initiating changes to gain an advantage.
- Interactive: Collaborating to drive change.
Planning Process
- Identifying opportunities and objectives.
- Analyzing the environment and limitations.
- Evaluating different possible action plans.
- Developing a master plan.
- Creating expenditure and revenue plans.
Types of Planning
- Strategic: Long-term, high-level planning.
- Tactical: Medium-term planning to support strategic goals.
- Operational: Short-term planning for day-to-day activities.
Company Goals
Effective company goals should be:
- Desirable
- Feasible
- Quantifiable
- Economically rational
- Understandable and motivating
- Consistent
Types of Objectives and Conflicts
- Global: Determined by socio-economic areas.
- Complementary: Objectives that support each other.
- Neutral: Objectives that do not affect each other.
- Conflictual: Objectives that clash with each other.
Values and economic accounting are crucial for decision-making.
Choices Under Different Conditions
- Certainty: Known outcomes.
- Risk: Probable outcomes.
- Uncertainty: Unknown outcomes, using pessimistic, optimistic, or Laplace criteria.
Criteria and Types of Control
- Effectiveness: Achieving desired results.
- Efficiency: Optimizing resource use.
- Learning: Improving processes over time.
- Consistency: Maintaining standards.
Types of control include preventive, constant, and corrective.
Stages of Control
- Setting parameters for objectives.
- Checking completed measures.
- Evaluating deviations.
- Correcting errors.
Management by Objectives (MBO)
- Setting objectives.
- Organizing executive departments and subordinates.
- Providing higher incentive motivation.
- Analyzing results.
- Analyzing errors.
System Information
Data is crucial. Classes of information include:
- Operational Information: Day-to-day activities.
- Tactical Information: Medium-term planning.
- Strategic Information: Long-term planning.
Elements of Organizational Structure
- Hierarchical directives
- Functional units
- Support units
- Operator units
Formal structures differ from informal, spontaneous networks based on friendship, interests, communication, and authority.
Forms and Classes of Organizational Charts
- Informational-analytical
- Partial
- General-structural-functional
- Personal
Different Relationships Reflected in Charts
- Direct relations
- Indirect relations
- Lineal-staff relations (personal, specialized)
- Cross-supportive relationships
Classes of Departmentalization
- Departmentalization by production processes
- Departmentalization for projects or clients
- Departmentalization by function
- Geographical departments
- Departments by shifts
- Market-oriented departments
- Matrix departmentalization
Simple Organizational Forms
- Linear Model: Vertical design, hierarchy, specialization, decentralization, common in SMEs.
- Adhocratic Model: Balanced design, motivational principle, participation, essential information and communication.
- Functional Model: Horizontal design, lower hierarchy, specialization, breaks division of labor and control unit.
Complex Organizational Forms
- Joint Model: Combines linear and functional, used by large companies, clear hierarchy, interference between main hierarchy and advisors/consultants.
- Divisional Model: Very large and multinational companies, fast decision-making, autonomy for workers, creating divisions, great decentralization.
- Matrix Model: Companies with complex products, markets, and customers, conflict of jurisdiction.