My name is Donald Wayne Wetzel II; I am a follower of Jesus, a Husband, A Father, a master’s
degree Student in Executive Leadership, and A United States Marine.
I am married to my “High School Sweetheart,” even though we didn’t attend the same high
school. Her name is Heather Wetzel, and we have been together for 21 Years, married for 16, and
going on 17 years this December. We have two boys, Parker, age 12, and Jaxson, age 9. I hold a
Bachelor of Science Degree in Business Management from Southern New Hampshire University.
In addition, I am working on obtaining a master’s degree in Executive Leadership from Liberty
University. I have been a United States Marine for the last 18 years. I am currently an E-8 Master
Sergeant who is up for promotion to E-9 a Master Gunnery Sergeant. So, I not only have
credentialing in the form of a degree, but I also have been executing leadership and management
skills for the last 18 years in various leadership positions.
If you have questions about my credentials, trials, tribulations, or background, feel free to ask me
anytime.
Now, let’s move into the specific topics we are here to discuss today.
After reading the Satterlee text, there were many essential concepts discovered. However, today I
am discussing only three of those concepts. You will see three of the four functions of
management on the slide. Today, we will be discussing the first three functions of management.
The first is The Management Function of Planning. “Planning, a crucial function of management,
is setting goals for specific results and determining how to achieve those results. To formulate
future actions of an organization, planning must take into account the uncertainty that the future
holds by considering not only anticipated events but also those that are unexpected”(Satterlee,
2018, p. 64). Specifically, we are going to discuss the concepts, tools, processes, and procedures
an organization has at its disposal to assist in the planning process.
The second is The Management Function of Controlling. “The control process is an important
managerial function and is directly linked to the planning function. When you decide to make
adjustments to what, how, when, or by whom the work gets done, you are performing the
controlling function. The control process gives managers the tools needed to effectively monitor
progress towards an objective”(Satterlee, 2018, p. 74). Specifically, we are going to discuss the
various types of control functions organizations have to achieve their goals and objectives.
The third is The Management Function of Organizing. “Organizing can be viewed as the
activities to collect and configure resources in order to implement plans in a highly effective and
efficient fashion. When a manager is performing the management function of organizing, this
individual is coordinating resources—human, financial, time, raw materials, etc.—to work
collectively to accomplish the goals and objectives of the organization”(Satterlee, 2018, p. 78).
Specifically, we are going to discuss the structures and governance options organizations have to
achieve their goals and objectives.
The fourth function is The Management Function of Leading. Unfortunately, due to the
extensiveness of this subject we will have to discuss that at a later date.
“Planning as defined by Merriam-Webster Dictionary is “the act or process of making or
carrying out plans. Specifically : the establishment of goals, policies, and procedures for a social
or economic unit” (Merriam-Webster, 2022).
Just as planning is important when traveling across the country, or to another country, develping
a battle plan for a war. Its just as important in any organization. Every organization can benefit
from effective planning. It can assist in lowering costs, increasing profits, anticipating future
events, decrease stress, decrease uncertainty.
Satterlee’s, Principles of Management and Leadership: A Christian Perspective defines the
“impact of planning on an organization to includes the following:
Planning gives the organization direction by looking into the future. Effort throughout the
organization is coordinated because all levels of the organization understand where the
organization is headed and what it will take to get there.
Planning decreases uncertainty. With planning, managers have already anticipated
problems which may arise and are ready to respond.
Planning ensures that an organization is progressing toward the goal. At any time a
manager can check actual progress toward the goal and determine if the organization is
on track toward meeting the goal.
Planning allows the organization to take corrective action if actual progress does not align
with the goal.
Failing to plan is planning to fail (Satterlee, 2018, pp. 64-65).
“Planning is a procedure for achieving a goal or desired outcome. Organizations gain various
benefits from planning: it provides a clear direction, enhances efficiency, and establishes a
benchmark that supports control. Accordingly, due to mechanisms such as objective fulfillment,
strategy alignment, motivation, and capability improvement, planning-performance theory argues
that formal planning has a positive impact on an organization’s performance is a procedure for
achieving a goal or desired outcome” (Zwikael & Gilchrist, 2021, p. 1).
“The formal planning process consists of six steps: 1) situational analysis, 2) generation of
alternative goals and plans, 3) evaluation of goals and plans, 4) selection of goals and plans, 5)
implementation of the chosen goals and plans, and 6) monitoring and controlling of the goals and
plans (Satterlee, 2018, p. 65).
Although much of the planning process is future oriented, we are going to first discuss the one
step that not only looks at the future but requires an organization to look inward and evaluate its
current status.
SWOT “strengths, weaknesses, opportunities, and threats—when used by a firm to gain
competitive advantage, is often referred to as a SWOT analysis. SWOT was developed by
Kenneth Andrews in the early 1970s, and it continues to be used with only minor modification
and development into the twenty-first century. In 2008, the Harvard Business School Press
published two digital guides to performing SWOT analysis, and investment analysts regularly
publish guides that perform a SWOT analysis on a wide variety of corporations and financial
institutions” (Hill, 2012, pp. 977-978).
“Andrews’s original conception of the strategy model that preceded the SWOT asked four basic
questions about a company and its environment: (1) What can we do? (2) What do we want to
do? (3) What might we do? and (4) What do others expect us to do?
The answers to these questions provide the input for an effective strategic management process.
While Andrews’ original conception of this analysis has been developed and changed to the more
streamlined SWOT analysis that is known today, his work is the foundation of this activity”
(Hill, 2012, p. 978). SWOT analysis is a look at both internal factors (strengths & weaknesses)
and external factors (Opportunities & Threats). “A SWOT analysis helps an organization see and
plan for future events that may occur outside of the company’s normal control. These factors
help an organization highlight areas for improvement and help determine the course of action for
the future (Satterlee, 2018, p. 66).
Strengths can be any multitude of things from a unique product to customer satisfaction. It can
be a company’s culture, or training program, the highly trained staff. “Strengths, in the SWOT
analysis, are a company's abilities and resources that allow it to engage in activities to generate
economic value and perhaps competitive advantage” (Hill, 2012, p. 978). A weakness can be
high labor costs, untrained employees, or a bad culture. “A company's weaknesses are a lack of
resources or capabilities that can prevent it from generating economic value or gaining a
competitive advantage if used to enact the company's strategy” (Hill, 2012, p. 978). One
organizations strength could be another organizations weakness. The idea of conducting this
situational analysis is to see both sides of the coin, both positive and negative.
Opportunities could be a better internet provider, a new development on the rise, the removal of
a government regulation, amongst many other external factors. “Opportunities provide the
organization with a chance to improve its performance and its competitive advantage” (Hill,
2012, p. 978). Other companies, new products, a strict new government regulation, a pandemic,
amongst many other external factors. “Threats can be an individual, group, or organization
outside the company that aims to reduce the level of the company's performance” (Hill, 2012, p.
978). “A business that is able to accurately assess the effects of external factors, such as changes
in laws, will be better prepared and able to address issues quickly. If an organization does not
assess current and potential opportunities and threats, it may suffer financial loss. The lack of a
thorough review of external influences may result in a devastating financial loss for an
organization of any size” (Satterlee, 2018, p. 66)
Next, we are going to take a look at another tool or method companies use to plan in advance and
foresee how certain potential events will impact the organization.
“Scenario planning is an awareness of potential risks and developing plans for possible future
conditions. This planning is particularly useful for an organization as it attempts to mitigate risks
in certain ventures. Scenario planning acknowledges that an organization’s leaders cannot stop
catastrophic events from occurring, but they can plan for those events” (Satterlee, 2018, p. 73).”
“Scenario planning has become a crucial tool of the strategic planning used by government
planners, business managers and even military analysts which is the effective way to understand
the changing future. The primary purpose of building scenarios is to develop a comprehensive
and integrated spectrum to guide the evolvement in the future to reduce uncertainty and
maximize the chances of achieving the desired outcome, to propose a plan for testing ideas or
simulating new developments. Finally, such an approach seeks to improve the decision-making
ability of managers (Chen, Ren, Mu, Sun, & Mu, 2020, p. 1). An example would be the
uncertainties’ that can arise from climate change or in more recent events would be a global
pandemic.
According to research there are four models of scenario planning. They are defined as follows:
Quantitative scenarios
Financial models that allow for the presentation of best- and worst-case versions of the model
outputs. These models can be quickly changed by altering a limited number of variables/factors.
Quantitative scenarios are also used to develop annual business forecasts. These models assume
key variables are known and that relationships among them are fixed.
Operational scenarios
One of the most common types of scenarios planning an organization will undertake internally.
Operational scenarios specifically explore the immediate impact of an event. The scenario then
provides short-term strategic implications.
Normative scenarios
These describe a preferred or achievable end state. These scenarios are less objective planning
and more geared toward statements of goals. These goals are not necessarily about an
organizational vision, but more about how the company would like to operate in the future.
Normative scenarios are often combined with other types of scenario planning as they provide a
summation of changes and a targeted list of activities.
Strategic management scenarios
Essentially stories that say little about the company or industry, but more about the environment
in which products and services are consumed. These are often the most challenging scenarios for
company leaders to put together because they require a broad industry, economic and world
view. On the plus side, they give planners freedom to brainstorm decisions and a broad
storytelling mandate. In some cases, companies bring in analysts or even so-called futurists.
[ CITATION Lut22 \l 1033 ].
“Organizations employ scenario planning—both as a risk assessment tool and a training aid—to
help corporations plan for an uncertain future. Every leader should apply the following five
lessons to better understand and control risk:
Turbo-charge the imagination. Since it had happened before, the idea of a plane crashing
into the World Trade Center was obvious. However, although it was a realistic potential
threat, what had not been considered was the threat of a combination of two large planes,
both with full fuel tanks, which would jar the fireproofing from the Towers girders.
Build scenarios. Shell Oil makes its scenario planning exercise public
(www.shell.com/scenarios). These scenarios “identify some significant events, main
actors and their motivations, and they convey how the world functions.”19
Think in probabilities. Each scenario should be assigned a probability that the event will
occur, either in relative terms (1%, 50%) or in relation to the occurrence of other events.
Use the power of markets. Various markets offers contracts on events that affect a wide
variety of businesses. There are real people betting on the likelihood of an event taking
place. Such sites are good places to research possible future scenarios.
Create a culture that insists on facing reality. Change happens at a fast pace, and there are
many events for which an organization will simply not be prepared. “A tendency to avoid
reality, to minimize bad news, is embedded deep in corporate culture. But while most
cultural change must start at the top…this change can start most anywhere” (Satterlee,
2018, p. 74).
Controlling is one of the vital functions of a manager. To seek pre-planned results from the
organizations employees at all levels, a manager needs to exercise effective control over specific
activities within the organization and over the personnel. Controlling ensures activities are
performed as planned and resources are used are being used effectively & efficiently for the
achievement of predetermined goals.
Due to the constant need for improvement in organizations processes, procedures, and personnel
the process of controlling is cyclic. “Controlling is an essential piece of organizational learning.
An organization must be able to anticipate and react to problems when they occur. “Control is
both anticipatory and retrospective. The process anticipates problems and takes preventive
action. Managers within an organization utilize a litany of techniques for measuring processes.
Though various types exist, most processes are within the general categories of external or
internal processes. External controls exist outside of the organization, while internal controls
exist within the organization’s boundaries. Managers utilize both internal and external means to
ensure that they are implementing an effective control process” (Satterlee, 2018, p. 75).
Of the two types of control, internal controls are specific internal measures an organization has in
place to assist in achieving its goals. “Internal controls generally can be classified into two
categories: preventive or detective. “Preventive controls are designed to discourage errors or
irregularities. . . . Detective controls are designed to identify an error or irregularity after it has
occurred” (Satterlee, 2018, p. 75).
Internal control systems function at various levels of effectiveness. To determine whether a
particular internal control system is effective. An organization can conduct and assessment of
whether the five components - Control Environment, Risk Assessment, Control Activities,
Information and Communication, and Monitoring - are present and operational. Effective
controls provide sufficient assurance regarding the achievement of established objectives.
Internal controls include:
policies,
procedures,
organizational design,
receipts,
inventory
accounting records
internal audits.
The second type of control is external, they are external control measures an organization has in
place to assist in achieving its goals. An external control measure would be an outside accounting
firm or an external inventory control system. The advantage of external control measures is the
ability to strip the assessment of bias. An outside agency or external control provides an
objective, outside, bias free view of the organization.
Organizing is the function of management that includes creating an organizational structure and
allocating resources to ensure the accomplishment of objectives. “When a manager is performing
the management function of organizing, this individual is coordinating resources—human,
financial, time, raw materials, etc.—to work collectively to accomplish the goals and objectives
of the organization” (Satterlee, 2018, p. 78).
Organizations are formally organized through the arrangement of people into specific
departments, units, chain of command, etc. It is typically depicted by an organizational chart.
There are several types of structure an organization can choose from which we will discuss
shortly. Along with organizations structure another factor to consider when performing the
function of organizing is the appropriate balance or distribution of power.
“Traditional structures are generally associated with large corporations and are most commonly
used to perform a task or group of tasks. These structures have been time tested and proven to
work effectively within certain organizational cultures” (Satterlee, 2018, p. 79). The three
tradition structures are functional, divisional, and matrix.
The functional structure is an organization composed of full departments like logistics,
management, human resoures, operations, marketing, financing, etc. required to produce goods
and services. The functional areas or departments fufill specific needs depending on the
organizations often referred to as silos. Each department communicates within itself and reports
to a departement head who synthesiszes and coordinates with other department heads. A
divisional structure is an organization grouped together according to product, services, or
locations. The matrix organization is a structure where team members report to numerous
leaders. In a matrix organization, team members report to a project manager as well as their
division head. This management structure provides your company the flexibility to create new
products and services without realigning teams each time
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