Over the years, many businesses have started off to a blinding start of early success, instant limelight, and what-not. However, many businesses failed and still fail, to stay alive. This has forced people to ponder over the facts of why did they fail?
Obviously, there are countless reasons for the failure of a successful business. The most common and frequent reason for the downfall of the majority of the failed businesses is incompetent management. This led us to the answer to our previous question that management holds key importance in the growth and progress of a business.
Management is an integral part of a business’s structure. Some might argue that it is the pivotal component of the skeletal view of a company. Replace a competent managing staff with incompetent and inexperienced personnel and watch the company drown.
Yes, the quality of a product and its need in the market is the primary selling point of a company. The importance of managing the process of production, advertisement, marketing, and selling of that product holds the greatest importance.
Management is not something out of this world. It is a simple yet integral process that every company wishes to perform throughout the organization, seamlessly.
Four functions of Management
There are four basic functions of management, consider them as the building blocks or pillars of management. The entire process of management comprises of these functions and these functions demand maximum accuracy for a seamless experience.
There are particular managers that carry out the functions of management for the department in question. This manager can either be managing a single product, a group of products, a minuscule business unit of the company, or even the entire organization.
Needless to say, it is the backbone of an organization that has multiple types and these types are spread in multiple levels of an organization.
Let’s have a look at the four functions of management.
Management, as the name is pretty much self-explanatory is the process of managing stuff. The first step in managing anything is planning. No matter the scale of the business, there needs to be a detailed plan of how the organization wants to perform its operations.
To understand the significance of planning, let’s take a couple of examples:
Importance of Planning – Small Business
Usually, small businesses start from a unique idea for a product or a service. Now, this idea deserves a proper plan for its appropriate execution in the target market. There comes the process of planning.
When the scale is small, although there are little things to take care of, the detailing intensifies. You need to figure out solutions of all possible outcomes of all situations that you think can occur in the near future.
Moreover, every small business doesn’t always want to remain small. The vision is to expand. So, the planning needs to be done with the factor of expansion in mind. This complicates the thought process but serves a better approach in the long run.
Importance of Planning – Large Business
When we talk about large organizations, with an increase in scale comes an increase in layers of communications. The factor of reporting by employees to their relevant manager, who then reports to its manager and the chain goes on and on till it reaches the top of the organization.
Now, when a company has expanded successfully and has a much larger scale, the next difficult stage is to stabilize its position. After stabilization, continue to grow even more. This requires a specific directive planning that directs the company towards the path of consistent success and helps the organization stay afloat in the fierce and competitive business world.
Planning is an integral part of management, yes but what’s a plan worth if you cannot implement it appropriately. Organization of the tasks planned in the planning part are equally important if not more.
Generally, the responsibility of organizing the planned tasks relies on the managers of the respective departments. The managers schedule and prioritize tasks in order to form flow in the entire process.
For example, a Marketing Manager will analyze the tasks planned by the Planning Committee and then prioritize the tasks according to its best judgment. This prioritization will surely be its decision and the manager will be directly responsible for the outcomes.
So, a detailed plan followed by the correct organization is the optimum way to proceed.
The debate of the difference between a boss and a leader is not new to anyone even remotely interested in business. In our situation, the boss/leader is a manager of an x department.
In its current position, the manager has two options to monitor and organize the operations.
First: To be a boss and only pass orders, be strict and rude, and blame the team if the tasks aren’t performed correctly.
Second: To be a leader, jump in the sinking boat with his team members, help them understand the work, and try to understand and cater to their issues, if any.
An adequate process of management requires the manager to be a leader rather than being a boss. The manager needs to be responsible for the actions of its team so that the team can perform freely. This will encourage the team to perform the tasks with no limitations, and generally, this approach yields more successful results than failures.
The manager needs to direct its team in the right direction. This can be done by being brave, embracing risks, and being accepting of change as the process follows.
Although a leader likes to pass the control in the hands of its team members to be free in their actions. The control, the authority should still remain in its own hands. Business decisions in a company fluctuate on a regular basis.
In this kind of situation, the manager needs to step up and take control of the situation by intelligently assigning and directing its team. This serves as a test of a manager’s organizational skills by utilizing resources without disturbing the flow of the overall procedure, that too with the fluctuation in the company’s business decisions.
A business requires success to stay afloat and continue serving its purpose. Success can only be achieved when a business has a harmony between its multiple departments. A harmony that binds the management of the business together. A harmony that syncs all the departments into the primary goal of achieving success for the company.
This harmony can only be unlocked by the appropriate application of the aforementioned aspects of management: planning, organizing, leading, and controlling.
Was I able to convey my point-of-view successfully? Did I miss out on any major detail in the primary aspects of management? Please leave your feedback regarding the post in the comments section below.