These seven principles of management work together to help an
organization achieve a particular result and reach its goals. Each
makes an individual contribution to an organization's overall
effectiveness, and they all interrelate.
Forecasting is the process of calculating or predicting a future
event, typically through analyzing available data. While forecasts
are rarely 100% accurate, an organization needs some basis for
anticipating the future so that it can be prepared for it. Without a
forecast, there is no basis for the next step of planning.
Planning involves formulating a course of action. The forecast plays
an important role because the organization plans so as to be prepared
to meet the forecast. Planning can include identifying how much work
is required and what resources are needed. Equipment, financial, and
human resources are all typically considered as part of this step.
Organizing consists of arranging resources into a coherent whole.
This can include the creation of an administrative structure, but can
also be as detailed as arranging the flow of materials through a
manufacturing facility or the flow of paperwork through an office.
Organizing can include determining who will do what, in what order,
and the procedures to be followed. Organizing describes in detail
precisely how the plan will be accomplished.
Motivation creates a desire in people to act. In the case of
organizational management, motivation is specifically directed towards
getting people to act pursuant to the structure defined by the
organizing step. Motivation can be in the form of rewards, such as
compensation and recognition, or in the form of punishments, such as
loss of compensation or even loss of employment.
Controlling is the process of directing the use of resources and
verifying that the plan is being accomplished through the procedures
identified in the organizing step. Controlling also includes taking
corrective action in the event that the plan is not being accomplished
because procedures are not being followed, the forecast has turned out
to be wrong, necessitating changes in the plan and/or procedures, or
identification that the existing procedures and organization will not
allow the plan to be achieved because of unforeseen problems.
Identifying whether the problems exist in terms of motivating,
organizing, planning, or forecasting is essential to exerting control
that will lead the organization to the desired outcome.
Coordinating consists of getting disparate resources to work together.
Not only must an organization be coordinated within itself, but an
organization must be coordinated with its suppliers and customers if
it is to be successful. Within the organization, coordination plays
the important role of ensuring that forecasting, planning, organizing,
motivating, and controlling are internally consistent and moving all
aspects of the organization towards achieving its goals. Coordinating
outside of the organization helps to refine the forecast, planning,
and organizing processes by gathering inputs from customers and
suppliers regarding their needs and capabilities.
Communicating pulls all of the other principles of management
together. Each phase requires communication so that everyone involved
can provide input and know the result. Furthermore, information has
be communicated between each of the processes so that they remain
consistent with the organization's overall objectives. Communication
with customers and suppliers is also critical so that as much
information as possible is available at each step. Communication is
also important in the event a problem is identified at a particular
step that affects other principles, such as identified problems with
the forecasting or organizing steps, so that it can be addressed.
Sincerely,
Wonko |
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