Planning, organizing, leading, and regulating are the four main tasks that managers must complete as part of the management process. Understanding that the management process is not always linear is crucial. Because it is impossible to plan for every issue the organization will encounter, the process does not necessarily begin with planning and proceed through each stage until organizational goals are reached. Changes and adaptations are made as the management process develops in response to unforeseen circumstances. The integrity and coherence of the entire process are upheld, and managers ensure that the necessary modifications are made.
Planning: Planning entails identifying the organization’s performance objectives and deciding what courses of action and resources will be required to accomplish the objectives. Planning helps management determine what the organization’s future should be and how to get there. Long-term and having an impact on the entire business are strategic plans. A strategic plan fills the gap between an organization’s current state and its future state. Strategic plans are transformed into precise actions by tactical plans, which must be carried out by all organizational departments. The tactical strategy outlines what must be done, who will complete it, and what materials are required.
Think back to the illustration provided at the beginning of this module, for instance. It explained how growing competition from Chinese steel led ThyssenKrupp AG to decide to become an elevator manufacturing and servicing firm. The executive team planned to partner with other businesses or acquire existing elevator companies to achieve this. The group came up with strategies to create new human resources and obtain additional material resources. To acquire money for the new project, the corporation also had to divest existing steel-related resources. This is an illustration of an extensive strategic plan that will take years to complete and necessitate numerous adjustments along the way. But it begins by outlining a target and a rough course of action to get there.
Organizing: After plans are created, choices must be made regarding how to carry them out. Choosing the organization’s structure is part of the organizing function (by departments, matrix teams, job responsibilities, etc.). Organizing includes delegating power and responsibility to various divisions, allocating resources throughout the company, and deciding how to coordinate the actions of teams and individuals.
To accomplish its long-term objective in the case of ThyssenKrupp AG, management had to figure out how to support two quite distinct sets of operations. As the focus gradually switched to elevator production, management needed to sustain its steel production activities to ensure a steady flow of revenue. To increase the company’s elevator capacities, it was also necessary to develop new talents and resources. A new organizational structure that could accommodate both company operations while one was scaled back and the other was expanded was required.
Leading: Almost all work done within a company is carried out by people. Even the best organizing and planning will fall short if the organization’s members are unwilling to support the strategy. Leaders engender passion and motivate effort to accomplish goals by displaying expertise, character, and charm. Additionally, managers must inspire great performance by sharing goals across the organization, fostering devotion to a shared vision, developing shared values, and creating a shared culture. To get employees to support plans and goals, managers might use the power of rewards and penalties. People are motivated to support plans by leaders, who foster dedication and belief. Although they are not the same, leadership and management skills may and do show themselves in the most productive people.
People are exceedingly difficult to motivate when plans call for significant change, especially if downsizing and layoffs are involved. A lot of individuals naturally oppose change. People will be particularly reluctant to change if it results in the loss of their jobs or position. The unions at ThyssenKrupp were adamantly against the company’s switch from making steel to making elevators. Although the plans pleased those working in the new business functions, those in charge of producing steel felt abandoned and demotivated. It would have been wise for management to get union backing for its plans for the future of the business.
Controlling: No war strategy survives confrontation with the enemy, according to a well-known military proverb. This suggests that while planning is important for making preparations, things won’t always go according to plan when it’s time to put the plan into action. Unexpected events will take place. Controlling is the act of seeing what actually occurs and responding to it. Monitoring activities, gauging performance, contrasting outcomes with goals, and making adjustments as necessary constitute the process of controlling. As evidenced by the graphic of a product design feedback loop, this is frequently referred to as a feedback loop.
Among the four managerial functions, controlling might be the most crucial. It offers the data necessary to maintain the business goal’s course. Managers maintain awareness of what is happening, what is working and what isn’t, and what has to be continued, improved, or altered through regulating their organizations. When establishing its plans, ThyssenKrupp lacked much industry experience in the production of elevators. It was creating novel goods and procedures and breaking into fresh markets. The management was aware that it could not foresee every obstacle it would face. A very successful transition was made possible by the company’s use of cutting-edge innovations and careful monitoring as the plan developed.
