A Business Model of the functions of Management

Jenna Doucet (2009).

Abstract

The purpose of this paper is to define the four classic functions of management. To better illustrate the implementation of the functions of management, examples will be applied to a business context from RSC Business Group.


A Business Model of the functions of Management

With old companies, once the cornerstone of the economy, dying, and new companies struggling to emerge , the survival of business is more than ever dependent on strong applications in management . In the new economy, arrogance, risk taking, and casual management are not enough to promote success. Understanding the classic concepts of management are the key to a successful company. This paper defines the functions of management: planning, organizing,leading, and controlling, and illustrates them through examples of their implementation inside a business culture ; in this case I will be using RSC Business Group as a model.


RSC Business group is a business consulting firm which offers professional consulting services and executive training. The company focuses on entrepreneurs and business owners to promote success, grow, and add value to their companies.

Planning
In his book Management: Leading and Collaborating in a competitive world, Bateman (2007) describes planning as defining business goals and the actions required for achieving them. Bateman (2007) writes that the historical views of the top down approach, where plans where established at the executive level and passed down, are not effective in delivering strategic value or competitive advantages. Bateman (2007) writes, “Now and in the future, delivering strategic value is a continual process in which people throughout the organization use their brains and the brains of customers, suppliers, and other stakeholders to identify opportunities to create, seize, strengthen, and sustain competitive advantage” (p.17). RSCBG has adapted to this model and engages in dynamic interactions with employees and customers in order to identify new opportunities. Part of RSCBG planning process is to deliver preliminary business assessments to companies, the gathering of information about all functions and aspects of the customer’s organization, in which RSCBG gains understanding of their customer’s needs. The Information is turned into value as RSCBG designs and offers solutions on its basis. Bateman (2007) summarizes this process as the need for creating more and more value for the customer.

Organizing
0rganizing is coordinating all functions in relation to business. It covers human, financial, and informational resources and includes defining organizational structure , attracting customers, appointing responsibilities, and allocating resources to maximize efficiency inside the organization. Historically, organizations limited themselves to charts that identified business functions, personnel reporting systems, and rigid plans (Bateman, 2007). 0rganizations like RSCBG understand that today, adaptability does not fall into the category of “cookie cutters.” Bateman (2007) states that effective managers implement new forms of organizing and view people as their most valuable resources. RSCBG has adapted to Bateman’s notion of creativity and innovation. RSBG does not constrain itself to geographical limits and takes advantage of globalization by employing and serving individuals around the world. Furthermore, RSBG invite their employees to create their own niches within the organization and are thus able to attract diverse and leading- edge individuals. In Managing by values, Dolan and Garcia (2002) write that self-organizing chaos is a key component of creativity and innovation. The ability to establish organization within chaos depends on a free flow of values and principles for action within the company’s management. Dolan and Garcia (2002) explain that when individuals are not confined to narrow roles, they are able to grow in potential.

Leading
Leading is the stimulation of the workforce within an organization to meet high standards (Bateman, 2007). Thomas (1999) states that leading activities include decision- making, communicating, motivating, aligning, and developing individuals within the organization. Bateman (2007) further notes, “Today and in the future, managers must be good at mobilizing people to contribute their ideas, to use their brains in ways never needed or dreamed of in the past” (p. 17). RSBG understands the importance of mobilizing individuals and emphasize developing and training their employees.

Controlling
The controlling function is responsible for establishing performance standards, measuring, evaluating and finally correcting performance (Thomas,1999). Controlling is what ensures the organization’s success (Bateman, 2007).RSCBG implements many standardization charts to monitor the company’s performance and administer changes if needed. Adapting in the new economy and ensuring an organization’s success
depends on the understanding of the four functions of management, how they have
been utilized in the past and how they are implemented today.

References

Bateman, T. (2007). Management: Leading and collaborating in a competitive world.
New York: McGraw- Hill.

Thomas M. (1999). Mastering people management. Retrieved on July 9th, 2009 from:
http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=24876675&site=ehost-live

Dolan, S. & Garcia, S. (2002). Managing by values: Cultural redesign for strategic
organizational change at the dawn of the twenty-first century. Retrieved on June 9th, 2009 from: http://swtuopproxy.museglobal.com/MuseSessionID=4fa6641b7f21
8303a69d5ecaaad42c1/MuseHost=www.emeraldinsight.com/MusePath/Insight/ViewContentServlet?contentType=Article&Filename=Published/EmeraldFullTextArticle/Articles/0260210202.html