There is an administrative process applicable to any firm, consisting in the implementation of the obligations that every manager must perform. Currently, there is a tendency to view management as an implementation of functions in specialized literature.
A whole function can be performed by one department, but the same unit, alone or in conjunction with others, can perform another one.
The composition of obligations of departments and their scope depend on the following conditions:
- Scale, structure and level of development of production;
- Size of the firm, its independence, place in the existing system of social division of labor;
- Ties with other enterprises and organizations;
- The level of technical equipment.
Each function is characterized by the appointment, repeatability, homogeneity of the content, specificity of personnel necessary for its realization. They are objective, which is determined by the need for the process itself in the conditions of people's joint work. It is the basis for determination of the structure and size of the administrative apparatus.
And now let us go directly to the enumeration and description.
A universally recognized leader among the positions that we are considering. Realizing it, the entrepreneur formulates the goals and tasks that lie in front of the firm on the basis of a deep and comprehensive analysis of the situation in which it is currently located, develops an action strategy, draws up the necessary plans and programs. In fact, the answers to the next questions are being sought:
- Where are we now?
- Where do we want to move?
- How are we going to do this?
This process itself allows you to more clearly formulate the enterprise's goals and use the system of performance indicators necessary for the subsequent monitoring of the results. In addition, it provides a more precise coordination of efforts of structural units and thus strengthens the interaction of managers of different services. And this means that planning is a continuous process of studying new ways and methods of improving the enterprise's activities through the identified opportunities, conditions and factors. Consequently, the plans should not be of a directive nature, but should change according to the specific situation.
The plan is a complex socio-economic model for the future state of the enterprise. As already mentioned, the stages of the planning are mostly universal. As for specific methods and strategies, they differ significantly. Usually, the firm forms a single plan for managing its overall activity, but within its framework individual methods are used to achieve specific targets and objectives of the enterprise by various people. In this way, a map of the path is drawn up, according to which the firm must pass for a specific period of time.
Planning does not constitute a separate one-off event for two significant reasons.
First, while some firms cease to exist after reaching the target for which they were originally created, many seek to prolong their existence as long as possible. Therefore, they redefine or change their goals, if the full achievement of the initial goals is practically completed.
The second reason why planning should be carried out continuously is the constant uncertainty of the future. Due to changes in the environment or errors in judgments, events may not unfold as the management foresaw plans. Therefore, plans need to be revised so that they are consistent with reality.
This step assumes realization of plans. The task is the forming of the structure of the firm, as well as providing with everything necessary for its work – personnel, materials, equipment, buildings, money, etc.
In any plan drawn up in the enterprise, there is always a stage of creating real conditions for achieving the planned goals. Often this requires restructuring the production in order to increase their flexibility and adaptability to the demands of a market economy.
The head determines what exactly this enterprise should do, when and who should do it. The leader selects people for a particular job, delegating tasks and powers or the right to use the resources of an enterprise to individuals. These subjects of delegation assume the responsibility for the successful performance of their duties. In doing so, they agree to consider themselves subordinate to the leader. If the choice of these decisions is made effectively, the head gets the opportunity to translate these decisions into deeds, applying in practice a significant function – motivation.
It is an activity aimed at activating people working in an enterprise and encouraging them to work effectively to fulfill the goals set out in the plans. Their economic and moral stimulation is carried out for this, the content of labor itself is enriched and conditions are created for the manifestation of the creative potential of workers and their self-development.
The leader should always remember that even perfectly formulated plans and the brilliant structure do not make any sense if someone does not perform the actual work of the company. And the task is that the members of the firm perform the work in accordance with the responsibilities delegated to them and in accordance with the plan.
Leaders always performed motivation of their employees, whether they realized it or not. It used to be that motivation is a simple matter, which amounts to proposing appropriate monetary rewards in exchange for the efforts made. This was the basis for the approach to the motivation of the old scientific school.
Studies in the field of behavioral science have demonstrated the failure of a purely economic approach. The leaders learned that the motivation, i.e. the creation of an internal incentive for action is the result of a complex set of needs that are constantly changing.
At present, we understand that in order to motivate the workers effectively, the head should determine what these needs really are, and provide workers with a way to meet these needs through good work.
A process that ensures the achievement of the company's goals. It is necessary to detect and resolve problems before they become too serious, and can also be used to stimulate successful action.
Unforeseen circumstances may cause the firm to deviate from the main course originally planned. And if governance is unable to find and correct these deviations from the original plans before the company will be seriously harmed, the achievement of goals, perhaps even survival itself, will be jeopardized.
The control process consists of three main aspects:
- Setting standards – precise definition of the targets to be achieved in the designated period of time. It is based on plans developed in the planning process;
- Measurement of the actual results achieved and a comparison of what has been achieved with the expected results. If both these phases are performed correctly, then the head not only knows that a problem exists, but also knows the source of this problem. This knowledge is essential for the successful realization of the third phase;
- Making adjustments if the results achieved are significantly different from the standards. One of the possible actions is the revision of the intentions, so that they become more realistic and correspond to the situation.
This is a critical and very difficult step. One of the most important features of control, which should be taken into account in the first place, is that it must be comprehensive. Every leader, regardless of the rank, should exercise control as an integral part of the job duties, even if no one specifically instructed him or her to do so.
All these functions do not simply constitute a single whole. They are intertwined with each other, penetrate into each other so that sometimes they are difficult to separate.