MGT_III

MGT 3301, Principles of Management 1

Course Learning Outcomes for Unit III At the end of this unit, you should be able to:

2. Investigate the relationship between the four functions of management. 2.1 Summarize ways to use planning and organizing within an organization.

5. Apply ethical reasoning to managerial decision-making.

5.1 Describe planning and organizing tools that will be effective during an organizational change. Required Unit Resources Article: Openness to Change and Conservation in Value-Laden Decisions (ULO 2.1, 5.1): The article is a study that examines leadership styles and their willingness to change (11 pages). Article: Linking Organizational Change Management and Organizational Foresight (ULO 2.1, 5.1): The article explores ways to predict and prepare for future trends (19 pages). Unit Lesson Lesson (ULO 2.1, 5.1)

Introduction The core learning in this course is management and the introductory principles of management. Unit I and Unit II covered the core managerial concepts. In Unit III and Unit IV, you will be introduced to what is referred to as the core functions of management. The four functions are planning, leading, organizing, and control, commonly known as an acronym: POLC (Indeed, 2022). In Unit III, we will cover planning and leading, and organizing and control will be covered in Unit IV. The acronym of POLC is one of the most recognized in managerial careers and the workplace. Everyday organizations, companies, franchises, silos, and partnerships are using one or two, three and often, all four functions of management at the same time! Having a better understanding of each function and how to use each effectively will be the learning organization that strives and attains continuous improvement. Perfect? Probably not, but working toward continuous improvement is a must for an organization to thrive and survive.

UNIT III STUDY GUIDE Core Management Functions

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Planning Let’s begin with the function of planning, commonly known as the first function in managing. Planning is a system, a process of making decisions about the organizational goals, activities, and pursuits (Bateman et al., 2020). The planning function provides focus and context for the other management functions. Planning correlates with the organization’s mission and vision statement. The mission statement describes the purpose of the business (what they do), the company values (who they include in the focus), and achievement (how they do it). A vision statement reiterates the purpose of the company and provides a focus of direction the company is pursuing. The best statements recognize the superiority stance of the company and provide the employees a purpose to plan, pursue, and contribute to an outcome driven toward a future.

(adapted from Bateman et al., 2020).

Planning is a venture, formulating an array of steps with a mindset of flexibility due to the constantly changing business environment. The best way to plan is to analyze the environment, both internally and externally with a variance of levels of accuracy and certitude (Ndukwu, 2022). Internal analyzers affect the organization from the inside such as rivals/competition, suppliers, customers, substitutes/compliments, shareholders/stakeholders, employees/culture/, and brand and finances. The external environment (at times referred to as the macro-environment) affects the organization from the outside environments such as the economy, laws, technology, society/politics, competition, and global demographics (Bateman et al., 2020). Another view is that internal planning supports the company’s mission and vision statement. External planning examines the organization’s opportunities and challenges, including competitors. Internal environment are factors managers must understand that may affect the organization’s decisions, operations, and objectives that may play a part in setting and achieving the company’s goals (Ndukwu, 2022). External factors may have a significant impact on the company’s return-on-investment (ROI), profit margins, growth and expansion, and the company’s image! An analysis provides managers with a plan, an action plan to create value as an indicator to increase profits through understanding the numerous environmental effects, both internal and external. A prime example and great reading of a successful plan of action was Domino’s Pizza. The company performed an analysis to determine why their market share was slipping. The findings where their brand was negatively affected by poor delivery service and low product quality. Domino’s plan was to embrace change through technology, amend their recipes, and use social media tools to rebrand their image. The plan worked, and Domino’s is now the second largest pizza delivery in the world (Taylor, 2016).

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Planning Tools Planning tools are designed to help companies determine and set both long-term (3 or more years) and short- term (1 to 2 years) goals: specific, measurable, achievable, relevant, and time-bound (SMART) goals as mentioned in the lesson for Unit I. Other tools used are management by objectives (MBO), benchmarking, and contingency plans. There is an array of tools available for all levels of managers, but the key is to be flexible in your planning when conditions demand change. One of the more common and popular planning tools is MBO. Known as the father of management, Peter Drucker coined the term MBO in 1954, and it is still widely used by many managers. Drucker’s planning tool is used to improve the performance of an organization by creating clearly defined objectives that both management and employees mutually agreed upon. MBO is a top-down tool because the organizational goals descend through the operational levels. The managers’ intent is assisted in setting forth mutual, agreeable short- and long-term goals as a team; planning employee performance tasks; mutually agreeing on standards that will be used to evaluate performance; and setting forth intervals to review progress (Reckmann, 2023). For the MBO to work most effectively, managers must set employee goals and tasks to support the organizational goals and objectives. An effective tool to use during the analysis of the planning process and to determine best practices is benchmarking. This tool provides managers with an early tool in setting initial standards and goals for the organization, then reviewing and evaluating performances. Industries use benchmarking as a competitive planning tool to compare performances to others. Benchmarking can also provide answers to economical climates by determining size and growth potential or failures. Technology-related organizations use functional benchmarking to assess techniques and partners that the competition is using to determine their own weaknesses. The strength in benchmarking is it gives organizations a standard against which to compare progress and continuously improve. The last planning tool is the contingency plan. Among the considerations of contingency planning is the disruption of sudden market changes or business interruptions. Contingency plan analysis must always include this question: what if? What if the plan does not work? What if there are unexpected emergencies that were not thought about or even considered? A prime example of a contingency plan are airlines and airports. There are plans designed to handle emergency situations such as a plane crash or terrorists’ threats. The contingency plan allows managers to be accountable for the outcomes during the execution of the strategic plan, but there are always risks involved. Remember the Deepwater Horizon oil spill in 2010 when 11 people lost their lives, another 17 were seriously injured, and 5 million barrels of oil spilled into the Gulf of Mexico. BP Oil had no contingency plan, and the spill went on for months and is now known as the worst marine oil spill in history. BP Oil spent over $62 billion trying to amend their wrong to no avail. This disaster may have been avoided if only BP Oil would have taken the time to plan (Pallardy, 2022).

Organizing The second function of management is organizing, which requires managers to know and understand the roles, skills, and abilities of their employees by knowing the employees’ strengths, weaknesses, availability, capabilities, knowledge, and skill set. Organizing is the process of the actualization of putting the established plans in motion. Organizational planning is a function of management that results in the synchronization of human resources, physical resources, and financial resources to obtain results and achieve organizational goals (Mishra, 2021). Strict attention to detail and design of processes ensures the operations within an organization are optimal and functional. Effective managers may use different functions to execute and implement, to achieve organizational goals, and to ensure employee success. The organizing management function is critical in implementing and executing plans, but the peril lies in the assignment of the appropriate individual to the team and the dispersal of needed assets and resources. The organizing function follows the planning function and cannot be executed without proper planning. The organizational structure is established through delegating a chain of command based upon workers and resources distributed properly. An employee who accepts and takes authoritarian responsibility for their assigned organizational role is more likely to remain a valued employee, which often leads to a productive employee. The benefits of the organizing function are many for both the company and the employee. When a clear chain of command is established, that alone increases the efficiency of work processes, creates cohesiveness among employees, inspires motivated and empowered employees, ensures disruptions are mere abstractions

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that are resolved quickly, and promotes overall morale and success of the organizational goals so they are achieved with pride and satisfaction (Mishra, 2021). The critical elements of organizing as a management function is support and structure. As stated earlier, management must assign roles that match appropriate employees’ skills, knowledge, and specific traits. It is critical that the role assigned be detailed clearly with no misunderstanding of the job. The team expectations, autonomy, and hierarchy including positions must be shared and stated objectively. Additionally, employees must be provided with ample resources to perform and complete the assigned tasks, including technology and technical training. Goals and goal setting must be agreed upon by the worker and the team goals and accomplishments shared equally. The principles of organization as a management function are specialization principle, functional principle, span of control principle, and unity of command principle. It is important that managers use the appropriate principle. The specialization principle is simply dividing the work and task based on the unique talents and skillset of the individual and quality of work as a team. The functional principle involves work and tasks being divided and assigned to be most beneficial through their specific purpose and specific action needed. In simple terms, the span of control refers to the number of workers under a manager’s direct control.

A large span of control leads to a flat organizational structure, which may lower overall costs due to efficiency. A small span of control creates a steeper organizational structure, which in turn, results in more managers who will negatively affect profits. The classic management principle is unity of command principle where employees only report to one supervisor at a time. This type of organizational function is ideal for the entry level worker as well as the individuals who may have difficulty answering to several managers or challenged by multiple individuals communicating in different styles and formats. There is not one principle of organizational management that works best or works for every person for every task. Managers must consider all the factors to best serve the employees and the company to the best of their ability. Organizing—the second function of managing—involves structure and order, which are strong indicators of success, but managers must understand and realize that each person is unique and each has a specific skill set that defines who they are and what they can best contribute to organizational success. The organizing function of management’s four keys of success are simple but must be the staple for each employee and the company to succeed. It is essential that managers clarify each role, activity, and process needed to achieve both individual and company goals. Earnestly attempt to assign tasks to the appropriate employee and each team. Once the tasks are clearly defined and the individual and teams are in place, management must supply the needed financial, technological, and moral support to successfully complete the assigned tasks. Delegating responsibility and accountability to others is important so that others can gain management and leadership experience and represent the company in a positive manner.

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References Bateman, T. S., Snell, S., & Konopaske, R. (2020). Management (6th ed.). McGraw-Hill Education. Indeed. (2022). What are the 4 basic functions of management? https://www.indeed.com/career-

advice/career-development/basic-functions-of-management Mishra, A. (2021, February 21). What is organizing in management? Management Weekly.

https://managementweekly.org/what-is-organizing-in-management/ Ndukwu, D. (2022, October 21). Internal and external factors that affect your business. KyLeads.

https://www.kyleads.com/blog/internal-external-environmental-factors/ Prinsloo, C., & Lew, C. (2021). Openness to change and conservation in value-laden decisions. South African

Journal of Human Resource Management, 19(1), Article a1468. https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?dire ct=true&db=bsu&AN=156436508&site=ehost-live&scope=site

Öner, M. A., Benson, C., & Göl Beşer, S. (2014, May). Linking organizational change management and

organizational foresight. Strategic Change, 23(3-4), 185–203. https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?dire ct=true&db=bsu&AN=103537062&site=ehost-live&scope=site

Pallardy, R. (2022, August 23). Deepwater Horizon oil spill. Encyclopedia Britannica.

https://www.britannica.com/event/Deepwater-Horizon-oil-spill Reckmann, N. (2023, January 23). 4 ways to implement Peter Drucker’s theory of management. Business

News Daily. https://www.businessnewsdaily.com/10634-peter-drucker-management-theory.html Taylor, B. (2016, November 28). How Domino’s Pizza reinvented itself. Harvard Business Review.

https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?dire ct=true&db=bsu&AN=120606186&site=ehost-live&scope=site

Learning Activities (Nongraded) Nongraded Learning Activities are provided to aid students in their course of study. You do not have to submit them. If you have questions, contact your instructor for further guidance and information. Consider researching an organization that has recently undergone a change. Maybe the organization is struggling to keep up with industry trends. Reflect on how this organization is using planning and organizing tools to meet their goals.