Before an Organization Can Plan a Course of Action, It Must First

1.v Planning, Organizing, Leading, and Decision-making

Learning Objectives

1. Know the dimensions of the planning-organizing-leading-controlling (P-O-L-C) framework.
2. Know the general inputs into each P-O-L-C dimension.

A managing director's main challenge is to solve problems creatively. While drawing from a diverseness of academic disciplines, and to help managers respond to the challenge of creative problem solving, principles of management have long been categorized into the iv major functions of planning, organizing, leading, and controlling (the P-O-L-C framework). The four functions, summarized in the P-O-L-C figure, are really highly integrated when carried out in the day-to-day realities of running an organization. Therefore, you should not get caught up in trying to clarify and sympathize a complete, clear rationale for categorizing skills and practices that etch the whole of the P-O-L-C framework.

It is important to note that this framework is not without criticism. Specifically, these criticisms stem from the observation that the P-O-L-C functions might be platonic merely that they practice not accurately depict the day-to-24-hour interval actions of actual managers (Mintzberg, 1973; Lamond, 2004). The typical day in the life of a manager at any level can exist fragmented and hectic, with the constant threat of having priorities dictated by the police of the trivial many and important few (i.e., the 80/20 rule). Even so, the full general conclusion seems to be that the P-O-L-C functions of management still provide a very useful way of classifying the activities managers engage in equally they endeavor to achieve organizational goals (Lamond, 2004).

Figure 1.seven The P-O-Fifty-C Framework

Planning

Planning is the role of direction that involves setting objectives and determining a class of activity for achieving those objectives. Planning requires that managers be aware of environmental atmospheric condition facing their organization and forecast future conditions. Information technology as well requires that managers be good determination makers.

Planning is a procedure consisting of several steps. The process begins with ecology scanning which simply means that planners must be aware of the critical contingencies facing their organisation in terms of economic conditions, their competitors, and their customers. Planners must so attempt to forecast future conditions. These forecasts class the basis for planning.

Planners must establish objectives, which are statements of what needs to exist accomplished and when. Planners must and then identify alternative courses of activity for achieving objectives. Subsequently evaluating the various alternatives, planners must brand decisions about the best courses of activity for achieving objectives. They must and then codify necessary steps and ensure effective implementation of plans. Finally, planners must constantly evaluate the success of their plans and have corrective action when necessary.

There are many different types of plans and planning.

Strategic planning involves analyzing competitive opportunities and threats, as well as the strengths and weaknesses of the arrangement, so determining how to position the organization to compete effectively in their environment. Strategic planning has a long time frame, ofttimes iii years or more than. Strategic planning generally includes the unabridged organization and includes formulation of objectives. Strategic planning is often based on the organisation's mission, which is its fundamental reason for being. An organization'due south top management most often conducts strategic planning.

Tactical planning is intermediate-range (one to three years) planning that is designed to develop relatively physical and specific means to implement the strategic programme. Center-level managers often engage in tactical planning.

Operational planning generally assumes the existence of organization-broad or subunit goals and objectives and specifies ways to achieve them. Operational planning is short-range (less than a yr) planning that is designed to develop specific action steps that support the strategic and tactical plans.

Organizing

Organizing is the office of management that involves developing an organizational structure and allocating human resources to ensure the accomplishment of objectives. The structure of the organization is the framework inside which endeavor is coordinated. The structure is usually represented by an arrangement nautical chart, which provides a graphic representation of the chain of control within an organization. Decisions fabricated about the structure of an organization are generally referred to as organizational blueprint decisions.

Organizing likewise involves the blueprint of individual jobs within the organization. Decisions must be made about the duties and responsibilities of private jobs, also as the manner in which the duties should be carried out. Decisions fabricated about the nature of jobs within the organization are mostly called "task blueprint" decisions.

Organizing at the level of the organization involves deciding how best to departmentalize, or cluster, jobs into departments to coordinate effort effectively. At that place are many different ways to departmentalize, including organizing past part, product, geography, or customer. Many larger organizations use multiple methods of departmentalization.

Organizing at the level of a item job involves how best to design individual jobs to most finer apply human resources. Traditionally, job design was based on principles of division of labor and specialization, which assumed that the more narrow the task content, the more skillful the individual performing the task could go. However, feel has shown that it is possible for jobs to get too narrow and specialized. For case, how would y'all like to spiral lids on jars one twenty-four hours after another, as you lot might have done many decades ago if you lot worked in company that made and sold jellies and jams? When this happens, negative outcomes event, including decreased job satisfaction and organizational delivery, increased absenteeism, and turnover.

Recently, many organizations accept attempted to strike a residuum between the need for worker specialization and the need for workers to have jobs that entail diversity and autonomy. Many jobs are at present designed based on such principles every bit empowerment, job enrichment and teamwork. For example, HUI Manufacturing, a custom sheet metallic fabricator, has washed away with traditional "departments" to focus on listening and responding to client needs. From company-broad meetings to team huddles, HUI employees know and understand their customers and how HUI might service them best (Huimfg, 2008).

Leading

Leading involves the social and informal sources of influence that y'all use to inspire action taken by others. If managers are constructive leaders, their subordinates will be enthusiastic most exerting endeavour to attain organizational objectives.

The behavioral sciences accept made many contributions to understanding this function of management. Personality research and studies of job attitudes provide of import data every bit to how managers can well-nigh effectively lead subordinates. For example, this inquiry tells us that to get effective at leading, managers must showtime understand their subordinates' personalities, values, attitudes, and emotions.

Studies of motivation and motivation theory provide important information about the ways in which workers tin be energized to put forth productive effort. Studies of communication provide management every bit to how managers tin can effectively and persuasively communicate. Studies of leadership and leadership style provide information regarding questions, such as, "What makes a manager a good leader?" and "In what situations are certain leadership styles most appropriate and effective?"

Figure 1.8

Quality control ensures that the organization delivers on its promises.

Controlling

Controlling involves ensuring that performance does not deviate from standards. Controlling consists of three steps, which include (ane) establishing performance standards, (ii) comparison actual performance against standards, and (3) taking cosmetic activity when necessary. Performance standards are often stated in monetary terms such as revenue, costs, or profits simply may also be stated in other terms, such as units produced, number of defective products, or levels of quality or customer service.

The measurement of operation can be done in several ways, depending on the performance standards, including financial statements, sales reports, product results, customer satisfaction, and formal operation appraisals. Managers at all levels engage in the managerial function of controlling to some caste.

The managerial role of decision-making should non be confused with command in the behavioral or manipulative sense. This part does not imply that managers should attempt to control or to manipulate the personalities, values, attitudes, or emotions of their subordinates. Instead, this function of direction concerns the manager'southward part in taking necessary deportment to ensure that the work-related activities of subordinates are consequent with and contributing toward the accomplishment of organizational and departmental objectives.

Effective controlling requires the beingness of plans, since planning provides the necessary performance standards or objectives. Controlling besides requires a articulate agreement of where responsibleness for deviations from standards lies. 2 traditional command techniques are budget and functioning audits. An audit involves an exam and verification of records and supporting documents. A budget audit provides information virtually where the organization is with respect to what was planned or budgeted for, whereas a performance inspect might endeavour to determine whether the figures reported are a reflection of bodily operation. Although controlling is oftentimes thought of in terms of financial criteria, managers must as well control production and operations processes, procedures for commitment of services, compliance with visitor policies, and many other activities inside the system.

The management functions of planning, organizing, leading, and controlling are widely considered to be the all-time means of describing the manager'south job, too equally the best way to allocate accumulated cognition about the study of direction. Although there have been tremendous changes in the surroundings faced past managers and the tools used by managers to perform their roles, managers still perform these essential functions.

Cardinal Takeaway

The principles of direction can be distilled downward to four disquisitional functions. These functions are planning, organizing, leading, and controlling. This P-O-50-C framework provides useful guidance into what the ideal task of a managing director should look like.

Exercises

1. What are the management functions that comprise the P-O-Fifty-C framework?
2. Are there any criticisms of this framework?
3. What office does planning serve?
4. What function does organizing serve?
5. What function does leading serve?
6. What role does decision-making serve?

Referenes

Huimfg.com, http://www.huimfg.com/abouthui-yourteams.aspx (accessed October 15, 2008).

Lamond, D, "A Matter of Style: Reconciling Henri and Henry," Management Conclusion 42, no. 2 (2004): 330–56.

Mintzberg, H. The Nature of Managerial Work (New York: Harper & Row, 1973); D. Lamond, "A Thing of Fashion: Reconciling Henri and Henry," Management Decision 42, no. 2 (2004): 330–56.

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Source: https://open.lib.umn.edu/principlesmanagement/chapter/1-5-planning-organizing-leading-and-controlling-2/

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