Functions of Management
In any organization, management is a task of organizing and directing people together with an objective of attaining desired goals. Basically, there are four functions of management. These functions are planning, leading, controlling and organizing. As a matter of fact, the roles of managers are uniquely described based on these functions, (Harold & Heinz, 2006).
Planning is the first function of management. It determines what, why and how things will be done, and who will do them so as to achieve the set goals. Moreover, it identifies the goals; responsibilities, methods and the duration going to be taken for the objectives to be accomplished. Planning acts like the calendar of a company and it also has its own closing dates for any project or work at hand. In general terms, planning entails generation of plans for short term, long term, medium term, or immediate periods, (Reddy, 2005). Organizing refers to the gathering and coordinating of man-power, financial resources and all other important resources required in achieving the set goals. Precisely, it involves putting in order resources that are used in an organization in the best possible manner. For example, it defines the link between job positions and departments. It is concerned with designing of structure of an organization as well as departmentalization based on various groups of activities, (Harold & Heinz, 2006). Organization is an important element in any organization because it helps increase productivity, reduces time to carry out tasks, and lessens confusion in organizations.
Leading is another important function of management. Arguably, leading entails influencing others in the direction of attainment of the objectives of the organization. It involves motivation of subordinates, effective communication, as well as effective use power. For effective leadership to be realized, the leader ought to understand the workforce’s personalities, emotions, attitudes, as well as values, (Harold & Heinz, 2006). Lastly, is controlling. This entails ensuring that everything is running smoothly according to the set standards. It consists of three major steps: determination of standards, evaluation of standards against actual performance, and undertaking corrective measures in case of any deviation.
There are various options on deciding how to manufacture a product. In this case, the best option is to establish assembly only operation with components purchased from local vendors. One of the advantages of this option is that the cost of manufacturing the product will due to the fact that the cost of the assembly will be incurred once, (Reddy, 2005). Additionally, the cost of producing raw materials will be reduced considerably as they can easily be obtained from the local vendors. However, one of the disadvantages of this option is that, constant supply of raw materials is not guaranteed, (Harold & Heinz, 2006). Moreover, the price of such materials will be varying depending on the amount supply in the market. This option is likely to impact the functions of management in various ways. For example, planning must be made concerning the expected demand of raw materials to avoid wastage or shortage of raw material supply. Precisely, planning on allocations of various resources must be undertaken before embarking on manufacturing the product. Additionally, the structure of the organization should be designed in such a way that all the activities are well accommodated so as the entire organization works together as a single system. Finally, the right control mechanisms will be put into place so as to ensure that there is favorable performance as per the set standards.
Harold, K. & Heinz, W. (2006). Essentials of Management. Washington, DC: McGraw-Hill.
Reddy, T. (2005). Principles of Management, 3/E. Washington, DC: McGraw-Hill.