The Management Mechanism

The Management Mechanism

The management mechanism (process) is cyclical in nature. The basic functions, especially planning and controlling, of one cycle are evaluated and used in planning for the next cycle, usually a budget period.

Planning

The process of determining organizational goals and how to accomplish them. Said another way, planning is the function of organizing a sequence of predetermined actions to complete future organizational objectives. Planning is one of the primary functions of management.

Strategic Planning

Involves setting long term goals and establishing general guidelines for obtaining these goals.

Operational Planning (Also called day-to-day planning).

Involves setting specific measurable objectives for specific time periods (usually a budget period)and establishing schedules and timetables for obtaining these objectives within the overall organizational framework.

Organizing

The process of using resources and personnel in an orderly way to achieve the objectives and long term goals of a company. Departmentalization, sharing responsibility through assignment, and delegation of authority are parts of the organizing function.

Staffing

Recruiting and placing qualified personnel needed for the organization to achieve its objectives and goals. Selection, compensation, and labor relations are all part of staffing.

Leading

Working with people to get them to perform in ways that will help the organization achieve its goals. Communication and motivation are key leadership skills.

Controlling
Making sure that the operational objectives are met on a day-to-day basis.

This involves setting performance standards for individuals, measuring performance against these standards, and taking action to correct any weak and/or problem areas. The function of control involves both management control (ensuring the effective and efficient use of human resources) and operational control (ensuring that specific tasks are carried out). The latter is accomplished primarily through scheduling and establishing procedures.

System for Managing Results

The management mechanism (process), to attain results, must have four important links:

1. Defining objectives, 2. assigning responsibilities, 3. developing standards of performance, and 4. appraising performance.