The Foundation of Management Theory Essay Example | Topics and Well Written Essays - 1750 words

The Foundation of Management Theory - Essay Example The leading consumer good company, Procter and Gamble (P&G), has recently planned to take a few more weeks to pay back its suppliers. The amount is $ 2 billion and thus, the company has planned to arrange the cash by taking up wise cash management practices. b) Glaxo Smith Kline’s (GSK) management has planned to put an end to the frenetic expansion of the brand, Horlicks and focus on launching new varieties in the biscuits segment. 2) Organizing is the next step which follows planning. Organization of the resources means bringing them together and employing them in the right place, thereby achieving the goals of the company. It is a process as well as a structure. It deals with arranging the ways for executing the plans of the business for attaining its goals. It gives an appropriate structure to the administration of the organization and works hard for its future improvement. It involves different aspects like a span of control, segregation of departments, foundation of super ior-subordinate relationships, a delegation of authority and provision for coordinating a range of business activities. Examples a) Organization of the necessary resources is needed for executing a successful plan. In the case of P&G, it is important to collect all the financial data of the company and make the decision of extending the credit period for the suppliers. Thus, the organization of the proper resources is required in this case. b) The extensive market survey of GSK regarding the expansion of Horlicks has made them aware of the fact that the process of extension is becoming chaotic. Thus, the information is organized properly in order to take the decision for ceasing the extension of the brand. ` 3) Staffing Staffing can be referred to as the requirement of manpower for executing certain business plans. Staffing is a part of the managerial function consists of selection, recruitment, training and development, performance appraisal and determination of salaries and wages. The requirement of this process arises at the initial stage and there is a regular need for time to time replacement of the staffs along with diversification and expansion of the business activities (Morden, 2004). The basic need of every business is the stable, efficient and cooperative staff for management of the business activities. Thus, it can be deducted that manpower is a significant asset for the business unit. In most of the organizations, the development and planning activities of manpower are delegated to the human resource department managers and the personnel manager (Griffin, 2006). â€Å"Right man for the right job† is the main principle for the staffing process, successful operation of the organization is dependent on the skillful labor (Griffin, 2006). Examples 4) Controlling Controlling is referred to as the most vital function of the management. It is highly necessary in the case of individuals and departments so as to avoid wrong actions and activities. C ontrolling includes three broad aspects namely, setting up benchmarks of performance, evaluating work-in-progress and inferring results achieved and lastly, taking remedial actions when required.