Five Functions of Management: Advantages and Disadvantages

Five Functions of Management: Advantages and Disadvantages Henri Fayol is widely acknowledged as the earliest pioneer and advocate of the task of management Parker and Ritson, 2005 His management theories were first proposed in the early 1900s. Despite many criticisms, Fayols theories still form the basis of management practices and teachings in the 21st century. Taking some articles for reference, this essay will mainly analyse the advantages and disadvantages of Fayols concept of five functions of management in modern enterprises by some examples. There are about three main parts in this essay beginning with the introduction. And in the main body of this article, based on some academic researches, there are about seven parts discussing the advantages and disadvantages of Fayols concept of five functions of management. A conclusion will be made at last. There is no doubt that Fayol is best known for a three-fold contribution to management theory. Among his contributions, the concept of five functions of management is worth discussing all the time. Fayol identified five key functions of management and these functions of managerial activity are: forecasting and planning, organizing, coordination, command and control. According to Fayol, forecasting involves analyzing the future and drawing a plan of action (Pugh ad Hichson, 2007). And as for organizing, Fayol believed that an organizations structure was important, as it can facilitate the optimum conduct of its business activities (Pugh and Hichson, 2007). According to Pugh and Hichson (2007), in his original writing, Fayol used the term command to illustrate a managers responsibility to lead and direct employees towards the achievement of organizational goals and strategies. About the function of coordination, Fayol made a suggestion that managers should bind together, unify and harm onize all the organizations activities and efforts. In contemporary management practice, this can be explained into that the managers should be responsible for making sure that all the organizational business activities are coordinated to make the employees can unify together within one department or among different departments. The last not the least function of management is control. Fayol recognized the importance of control within an organization and support that it ensures everything occurs in conformity with established rules and expressed command. In the article of Fayol-standing the test of time, McLean (2011) firstly introduced the contents of the five functions of management and stated that in contemporary society, there are some advantages of these functions to development of the enterprises. First, McLean (2011) stated that with the development of globalized knowledge economy, the abilities of forecasting and planning can gain success in the competition. Second, organizing can ask the managers to carry out an appropriate infrastructure, which will optimize the organizations system, resources, procedures, processes and services and enable knowledge to be disseminated to those who need it, when they need it. Third, McLean (2011) also stated that control is one of the most important responsibilities of a manager and under the control of the managers. Under control of the managers, the policies and strategies can be implemented according to plan and within budget, set timescales and allocated resources. Fourth, under the func tion of command, the managers can develop a thorough knowledge of their employees, which can generate a positive psychological contract that engages employees with their jobs and the organization. Whats more, Fayols managerial functions are frequently cited as the inspiration for the contemporary practice of dividing managerial activity (and management textbooks) into the functions of planning, leading, organizing and controlling (Davidson and Griffin, 2000; Lewis, Goodmand and Fandt ,1995). As for the organizing, Fayol believed that an organizations structure was important, as it facilitated the optimum conduct of its business. Whether there are advantages of this concept or not remains an open question, In the article of Fayol-standing the test of time, Miss Jacqueline McLean stated that in contemporary society, organizing can ask the managers to carry out an appropriate infrastructure, which will optimise the organizations system, resources, procedures, processes and services and enable knowledge to be disseminated to those who need it, when they need it. Meanwhile, organizing also can integrate all kinds of resources of the companies, including human resources, financial and material resources. So there are some advantages about the concept. And this concept is also influencing the structure of the companies and most of organizations pay more attention to the building of the organizational structure. The KFCà ¯Ã‚ ¼Ã…’one of the most famous and important fast food chain restaurants, is always paying its attention to the building of the structure all the time. In 2004, with the AIV spreading quickly in Asia, most of the KFC consumers quitted the line of waiting for KFC, never eating chicken. Especially in Vietnam, the most AIV-hit country, KFC business was confronted with a crisis. But KFC then changed its organizational structure, replacing the Fried Chicken with Fried Fish. So, finally it regained a big success. Under the guidance of Fayols concept about the organizing, many organizations know about the importance of the structure and pay attention to building their organizational chart and thus gain success. In fact, the building of the organizational structure should fit the development of the organization. As the saying goes, preparedness ensures success and unpreparedness spells failure. So does the development of one organization. According to Fayol, forecasting involves analysis of the future and drawing up a plan of action. About this Fayols concept, some authors viewed that there are some advantages. In the article of Fayol-standing the test of time, McLean (2011) stated that with the development of globalized knowledge economy, the abilities of forecasting and planning can gain success in the competition. In the article of The foundation of Henri Fayols administrative theory, Mr. Wren, Mr. Bedeeian and Mr. Breeze stated that the most important of the means which one must use to ensure business success was planning. To create a business, the founders need capital manpower and time and should have outlets for the products or service. To forecast these needs and providing for them is the main responsible of the managers. So Fayols concept about planning has its own advantages. And i t also improves the development of the companies in contemporary times. Due to the loss of electronic mail, Morgan Stanley paid out more than billions of dollars. But this event is just one tip of the iceberg of the suffering a great number of cost which is caused by the inappropriate information management. Confronted with this problem, British Airway made plan and forecasting and declared its commercial goal: to automate more and more function and try their best to develop customers self-help service system , such as electronic ticket, and even that customers can printed their tickets in their own home. This strategy made British Airway protocol the development lifeline of the companies designedly. Although there are lots of advantages of Fayols concept of the five functions of management, there are some disadvantages of them. As for the forecasting and planning, if a business made a good planning, it will get a great success. If not, there will be a big failure, just as the saying goes Changes always go beyond plans. As McLean (2011) stated in the article of Fayol-standing the test of time that the globalised knowledge economy and the presence of ubiquitous change and competition make forecasting, planning and strategising key managerial activities, forecasting and planning are at the same time the main cause of an organization failure. HP, a big technological products supplier of the world, is always encouraging its employees to go forward to their goals, which are planned by the organization. According to HP official Website, in 2010à ¯Ã‚ ¼Ã…’in accordance with its plan, HP purchased Palm company with the Web-based Operating System to get itself to a higher level. But as a result, the new product with the WebOS could not compete with ipad and was not popular with the consumers. In 2011, HP declared to cease the research of WebOS. So to purchase Palm with a whole $1.2 Billion is really not a wise choice. Many other organizations in the world are also always following the rules of forecasting and planning concept in Fayols management theory, but only a good plan is far from enough in contemporary competitive context. The other disadvantage comes from the function of command and control in Fayols theory. According to Wren, Bedeian and Breeze (2002), the command made by the higher authority and which, be it direct or through successive levels in the organization, should reach all parts of the organization, and the responses should return in the reverse sense, either directly or through the levels, to the central authority. Thus an organization can operate smoothly. But there are also counterviews, who consider that the excessive command and control will harm personal satisfaction and their self-respect. In the article of Fayols 14 principles of management then and now: a framework for managing todays organizations, Rodrigues stated that if the managers can separate their managerial work from the actual work clearly, they can have energy to focus on the target of the development of their own enterprises and deal with the public relations outside the companies. In the article Henri Fayol as strategie s: a nineteenth century corporate turnaround, Wren stated that due to the hierarchy, the managers can conduct the enterprise toward its objective. The branches of Nokia in China adhere to the principle of the former, the strict command and control. Under this circumstance, the managers cannot handle the managerial work since they have to help employees to deal with lots of trivial problems. After discussion, they changed the operation strategies and set up the system of hierarchical transmission of orders, in which the employees in the lower class should report their work to his/her own managers. Whats more, as McLean (2011) stated, although Fayol had a great contribution to management theory, he has been accused of the romanticism of management and presented an almost unrealizable approach to management theorisation. He gave a clear definition to each of the functions of his management theory and some principles to carry out them, but in concrete circumstances, some of them can not be realized. As Pryor and Taneja (2010) stated that in practically Mintzberg vehemently disagreed when he went on to say that if you observe managers at work you will find what they do is quite different. According to Lamond, Fayol gave us management as we would like it to be and Mintzberg gave us management as it is (Pryor and Taneja, 2010). Therefore, today many managers favour the important role of practice and experience. They think that practice and experience are the only way to get a management qualification. In conclusion, Henri Fayol, as a founding father of what has become known as the administration school of management, made some contributions to the management theories. This essay mainly aimed to discuss some statement about Henri Fayols contributions to management today and criticism of any of his contributions under the topic of Discussion on Advantages and Disadvantages of Fayols Concept of Five Functions of Management in Modern Enterprises and then to learn about the influence of Fayols management theories to the management practices and teachings in the 21st century. It focuses on the advantages and disadvantages of forecasting and planning, the disadvantages of excessive command and control and the impracticability of the theory in the main body by taking some articles for reference. All in all, Fayols theories are valuable and relevant for organizational leaders on the one hand and debatable on the other hand.

Case Study Crescent Pure Essay

Due to Crescent being Portland Drake Beverages’ (PDB) first entry into the U.S. sport/energy beverage market, there are some issues that PDB should consider with regard to Crescent’s impending launch. These issues consist of determining what customers want, being discussion-worthy and being transparent. Before launching Crescent it is essential to make sure that there is a place for Crescent in the market. Sarah Ryan, Vice President of Marketing for PDB, is doing this by trying to specify whether Crescent fits in the market better as an energy drink, a sport drink or a healthy organic beverage. Being discussion-worthy is another important issue to consider because it is important to make sure Crescent’s product stands out against the various other energy/sport beverage companies that are coming out with their own products. By captivating your consumers with something discussion-worthy, you’ll foster organic word-of-mouth about your brand. Being transparent is also a vital issue to consider because consumers have so many options on where to spend their money for sport/energy drinks. By being transparent and showing consumers exactly where their money is going, Crescent’s product will attract consumers. Letting consumers know where Crescent’s products are coming from and why they are priced they way they are gives power to the consumer, and helps them feel confident about their purchases. The factors that should influence the position of Crescent are competitors, market segmentation and market size. The market segmentation for sport drinks and energy drinks are distinguished through levels of hydration provided, energy provided, nutrition provided and favorable taste provided. Most energy drinks have higher energy, lower nutrition, lower hydration and  lower favorable taste compared to sports drinks. Additionally, the largest group of energy drink consumers were males between the ages of 18-34. Also parents of children were more likely to consume energy drinks and the highest volume of drinks consumed was by respondents with a household income below $25,000 per year. For sport drinks, roughly half of men consumed them, while only a third of women did. Furthermore, although 40% of men found sports drinks refreshing, only 27% of females did. Sports drinks appealed to younger consumers, 62% of those between the ages of 18 to 24. Crescent’s best target is males a nd females between the ages of 18-35. PDB must decide whether or not to position Crescent as an energy drink, a sport drink, or a healthy organic beverage. The advantages for positioning Crescent as an energy drink is that the market size for energy drinks has grown 40% between 2010 and 2012. Energy drinks were estimated to be $8.5 billion in the United States in 2013; forecasts projected that figure to reach $13.5 billion by 2015. Another advantage is that Crescent is a beverage that consists of organic ingredients that are a healthier option than most energy drinks. This is an advantage because sales of energy drinks with lower levels of caffeine and purer ingredients are rising due to consumer demand for healthier food and beverage choices. A disadvantage for positioning Crescent as an energy drink is that many potential consumers view energy drinks as unhealthy and might not see past that when PDB launches their new Crescent energy drink. Due to news stories highlighting the alleged health risks from energy drinks, 32% of consumers over 18 indicated they drank an energy drink in the last six months, 11% of who were drinking fewer energy drinks than they had a year earlier. The advantages of positioning Crescent as a sport drink is that the market size is also increasing. The market increased 9% between 2007 and 2012. In 2012, sports drinks reached $6.3 billion in the United States and are expected to grow to $9.58 billion by 2017. Another advantage of positioning Crescent as a sports drink is that diet and low-sugar beverages, which did not exist before 2009, had grown by 33% between 2010 and 2012. The market size for diet and low-sugar sports drinks is expected to increase from $1.4 billion in 2012 to $2.97 billion in 2017. This is perfect for PDB because  the Crescent beverage is based on being a diet, low-sugar, and overall healthy option. The disadvantage of PDB positioning Crescent as a sports drink is the concern regarding rising childhood obesity rates resulting in government-mandated guidelines to remove high-calorie sugary drinks and snacks, including sports drinks, from school vending machines. This could be a negative impact on the amount of sports drinks young consumers buy, who make up a large portion of the sports drinks that are consumed. The advantages of positioning Crescent as a healthy organic beverage is due to consumers currently moving towards healthier food and beverage options, as mentioned earlier. It is a market that is currently growing and will continue to grow. The disadvantage of positioning Crescent as a healthy organic beverage is that it lacks the energy that is provided by other energy drinks due to its use of organic ingredients. A focus group feedback found that some young consumers noted that Crescent had less energy than they had hoped. The positioning strategy that I would select would be a healthy organic beverage. It is important to find what draws you apart from the competition and then advertise based on that. The target market that Crescent wants to attract are people who are health conscious and consumers who buy sugary energy and sport drinks aren’t going to be as health conscious. Other implications that this will have for other elements of the marketing mix is that PDB could potentially raise the price for a Crescent beverage because some consumers from the focus group questioned PDB’s ability to deliver quality organic ingredients at $2.75, when most healthy organic beverages are above $3.00. Another implication this will have for other elements of the marketing mix is where this product is going to be sold. If Crescent is being sold as a healthy organic beverage then it must be sold in a store that sells other healthy and organic products in order to provide for the right target market. Lastly, Crescent will have to be advertised as a healthy organic beverage through packaging, commercials and other forms of advertisement showing that this product is healthy and only organic ingredients are used to make it.

Niccolo Machiavelli s The Prince - 1063 Words

Niccolà ² Machiavelli â€Å"The Prince†. Using bad or immoral methods to achieve something good by using them. At least once in everyone’s life, at one point they’ve made a dishonest decision. Some of us have even tried to explain our actions by bending the truth. Being dishonest is not the best, but at times it is the best answer. It may not seem to be the faithful thing to do, but the outcome will always be judged as honorable. It doesn’t matter how people reach what they want as long as the outcome is what they had hoped. The end goal doesn’t necessarily have to be good and noble. It is acceptable to go to any extent to obtain something that is for a good cause. Many people believe â€Å"the end justifies the means† is not valid unless the intentions are good and noble but sometimes people need to do something unacceptable in order to end up with a positive outcome. For example, let’s say there’s a family of four who lives out in the streets and don’t have anywhere to go. The children are dying of hunger and the family does not have a single dime to buy something to eat. The father then decides to steal something from the market to feed his children. What the father did wasn’t necessarily correct, but was necessary in order to meet his family’s needs. The father did something that is deemed wrong in our society but had a positive outcome not just for himself but for his family. Some might say the man’s actions were justified by pointing out the positive outcome. 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Exploration Of Myself As A Learner - 2017 Words

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