Topic 7: Four Functions of Management
Note on Organizational Management
Chapter 1: Achieve Organizational Goals
Four Traditional Functions of Management
Planning
Organizing
Leading
Controlling
Planning Tasks
Identify and select organizational goals and courses of action.
Develop strategies for achieving high performance.
Three Steps in Planning
Goal Selection: Decide which goals the organization will pursue.
Strategy Adoption: Choose strategies to attain those goals.
Resource Allocation: Determine how to allocate resources to pursue strategies.
Example: Michael Dell's approach in the 1980s
Goal: Sell inexpensive personal computers to undercut competitors.
Strategy: Sell directly to customers via telephone.
Resource Allocation: Limited funds of $5,000; hired three people to assemble PCs.
Organizing
Structure working relationships for cooperation towards goals.
Organize people into departments based on job-specific tasks.
Establish lines of authority and responsibility.
Chapter 2: Achieving Organizational Goals
Growth of Dell Computer
Michael Dell hired 100 new employees weekly as the company expanded.
Developed complex organizational structures to meet goals.
Leading
Articulate a clear organizational vision.
Energize and enable employees to understand their roles in achieving goals.
Utilize power, personality, influence, persuasion, and communication skills.
Example: Michael Dell's hands-on leadership style
Resulted in a committed and hardworking workforce.
Chapter 3: Desired Performance Standards
Controlling
Evaluate organizational goal achievement.
Take corrective actions to maintain or improve performance.
Monitor performance at individual, departmental, and organizational levels to ensure standards