While in the creation of the business, one must come to the decision of what is the best way to manufacture the product. The company must look thoroughly at all options and weigh the pros and cons of each choice and come to a logical decision. The options of manufacturing a product are to establish manufacturing of all components and final assembly, establish assembly only operation with components purchased from local vendors, or to outsource the entire manufacturing operation to an offshore company.
All decisions that are made for and by a company are made through management, whether it is a single manager or a team of managers. Management has four basic functions which are planning, organizing, leading and controlling. With these functions they will be able to make the company more successful, because the company a format to help them guide or organize their company in an efficient manner.
Planning is the base component of the management functions. Three main components help form the function of planning. These components include determining the company’s goals, developing a comprehensive strategy for achieving the goals in which the company sets, and designing both tactical and operational plans for implementing the strategy in which it develops. (Ebert & Griffin, 2011) When planning, the manager must be aware of all external environments that affect their business and be able to forecast future conditions. (Management Functions: Encyclopedia of Management, 2011) There are different forms of planning; they are but not limited to, strategic planning, marketing planning, business planning, succession planning, project planning, and sales planning. (Four Functions of Management, paragraph 2)
The second management function is organizing. Organizing includes the development of structure in the business and the allocation of human resources in order to ensure the accomplishment of the companies’ objectives. (Management Functions: Encyclopedia of Management, 2011) Some businesses use organizational charts that diagram the relationships among the various jobs within the company. The use of organization charts also helps the employees understand their roles with the company. (Ebert & Griffin, 2011) Managers will use organizing in order to best departmentalize. There are different ways in which a company can be departmentalized; this includes organizing the company by function, product, geography, and customer. (Management Functions: Encyclopedia of Management, 2011)
The third management function is leading. This is where the manager works as a guide in order to motivate its employees in order to meet the companies’ objectives. (Ebert & Griffin, 2011) In order to have effective leading in a company, the manager must be able to first understand their employee’s personalities, values, attitudes, and emotions. (Management Functions: Encyclopedia of Management, 2011) By understanding their employees a manager can create a positive working environment for their employees and improve the employees’ job performance and enhance their morale. (Four Functions of Management, paragraph 4)
The last function of management is controlling. Controlling is the monitoring of the company’s performance in order to make sure that the company is meeting its goals. (Ebert & Griffin, 2011) There are three steps to controlling, they are establishing performance standards, comparing the companies actual performance to the standards that were established, and if necessary taking any corrective actions. Performance standards are often set in terms of revenue, costs and profit, but can also be used for units produced, the number of defective units or product, and the levels of customer service. . (Management Functions: Encyclopedia of Management, 2011) There are several ways in which a manager can measure performance depending on the performance standards that are set. A manger would look at financial statements, sales reports,...
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