Managerial Functions 2

Running header: MANAGERIAL FUNCTIONS

Importance of Managerial Functions:

Your Name

Your University

Your Class Name/Number

Your Teacher

Date

Importance of the Managerial Functions

The role of managers has changed in the past ten years. Different situations occurred during the past ten years that changed the competitive landscape of many companies, primarily companies within the housing industry. Companies do not understand the different methods of managing companies and feel the effects of bad product placement and pricing, primarily in the loss of current consumers and potential consumers not interested in the products or services provided by the company. The financial uncertainty of the past ten years, primarily with the upset in the housing market, causes managers to rely on the functions of management to ensure corporate survival. The functions of management include “planning, organizing, leading, and controlling,” according to Bateman and Snell (2004, p. 14). Management must ensure rapid change to product offerings and improve customer satisfaction to retain competitive advantage. Companies meeting the needs of existing customers and offering products and services that attract new customers mean management understands the internal factors and external factors affecting the marketplace in which a company’s product or products reside. The Internet allows management to plan viable corporate strategies while retaining communication with internal customers and external customers. The functions of management also assist management in assessing foreign markets and how such markets affect the competitive advantage for a company.

Planning

“Planning is specifying the goals to be achieved and deciding in advance the appropriate actions needed to achieve those goals” (p. 15). Planning is the first function of management and involves such tasks as the assessment of current projects and how changes in such projects affect the overall goals of the organization. I observe management at the car dealership for which I currently work not only working on the daily tasks necessary for daily goals but also on the promotions and other items necessary to keep the car dealership financially successful against its competitors. Planning involves every task completed by the organization for the day, the month, and the year; these tasks include sales promotions to retain current customers and attract new customers and planning for financial changes within the organization’s infrastructure. Management identifies how current projects and promotions fit into the long-term goals of the dealership, including the success of sales on the ability of the company to expand in the next two years. Such examples identify how the car dealership desires to improve its business and improve customer satisfaction in the future.

Organizing

“Organizing is assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals” (p. 15). The second function of management, organizing means the proper use of financial resources, human resources (employee attraction and retention), and creating projects in which the people assigned achieve personal, team, and organizational success. Managers should understand how to properly coordinate resources or the company could suffer from a shortage of resources, thus not allowing the company to meet its strategic objectives. Controls are set in place at the car dealership to ensure the proper level of resources is available to the organization at all times. Human resources coordinates with management to ensure the proper level of sales personnel to meet customer needs, while the finance department controls the methods of finance available to all customers. Without organization, customer paperwork can be misplaced and sales personnel cannot properly meet customer needs. Organization ensures the dealership maintains the ability to meet customer needs through proper inventory and well-trained personnel.

Leading in the Organization

Leading is not merely ordering employees to perform menial tasks. Leaders understand the necessity to communicate corporate mission and vision to empower employees to consistently meet productivity and other organizational goals. Proper communication and motivation ensures employees are excited about the organization, understand their contribution to the organization, and how such efforts transform employees into productive and positive members of the organization. Management and other leaders within the organization provide continuing education to ensure employees understand how their contributions can positively or negatively impact the company. Once employees understand their roles, the organization achieves the goals set in place by management and moves the corporation toward meeting long-term objectives.

Controlling

The fourth and final function of management is controlling. Management must understand that successful implementation of the first three functions does not guarantee a company success in meeting strategic corporate goals. Monitoring and reviewing the implementation of a plan or project ensures that management views the success of certain projects and the lessons learned on other projects. Asking the pertinent questions ensures management knows if certain ideas and tasks implemented are not successful toward goal and project achievement. At the car dealership, managers consistently review promotions, projects, and salesperson training to ensure all members of the organization work toward the same goals. If management discovers a promotion does not meet the needs of the organization, management can then revise, modify, or eliminate the promotion to ensure successful sales and other organizational achievements.

Managerial Functions in Review

Managers must recognize that internal and external factors affect organizational strategies and decisions. In understanding the dynamic environment of the marketplace, companies and their managers should remain flexible and adhere to the four functions of management. Once management understands the four functions of management and how each function moves a company toward the achievement of current goals and future aspirations, the company can strengthen its relationship with employees, customers, and other stakeholders in the organization. Without a proper understanding and implementation of the four functions of management, the organization might lose customers, lose competitive advantage, and miss marketing opportunities.

References

Bateman, T.S., & Snell, S.A. (2004). Management: The New Competitive Landscape (6th Ed.). New York: McGraw-Hill/Irwin.