Functions of ManagementEssay Preview: Functions of ManagementReport this essayABSTRACTWhen companies first decide to produce or manufacture a product, they must decide how they are going to produce it; establish manufacturing of all components, establish assembly only operation, or outsource to an offshore company. This decision would have a direct affect on the four elements of management; planning, organizing, controlling and leading. Once a company established the direction in which the management should lead, the manufacturing decision should be quite easy to formulate.
When we last left off, our entrepreneur and her partner had decided how they were going to fund their business venture by licensing the technology. The partners have lined up three companies that are willing to use the device in their products. With their device in demand, the partners now have to decide how they would like to manufacture the device. Over a business lunch, they will discuss their options of doing all in-house manufacturing, delegating the manufacturing of the smaller parts elsewhere and doing just the assembly, or outsourcing 100% of the manufacturing.
Before making a decision as important as how, where, or who is going to manufacture their products, a business has to first identify its version of the four functions of management: Planning, Organizing, Controlling, and Leading. Its important to first establish these four elements to make sure the business has a vision and does not lose track of it. It was once stated that good management contributes significantly to the successful operations of a company (Kao and Hung 2005). Lets define these elements.
Planning is developing or recognizing the companys goals and developing ways to accomplish them. Organizing is maximizing the companys resources, using them in a manner that ensures the company is run smoothly. Controlling is setting performance measurements or standards for employees. And finally, leading is influencing employees to do their jobs. Without first defining the companys vision, it would be futile to decide on a manufacturing method; the company would not be successful.
Our partners discussed the options at length along with the management functions and their financial state and decided that outsourcing 100% of the manufacturing was the best option for their company. They made this decision after evaluating the cost categories of manufacturing. According to our course media materials, manufacturing companies separate costs into direct materials, direct labor, and manufacturing overhead (2011). The partners decided that having to manage the materials, the employees and the expense of running a facility was not something they were prepared to do. They reasoned that giving another company the responsibility to make sure the product was manufactured properly was the most cost effective out of the three choices. Not having to secure
Franchise and Firm Relations We made no changes to the process of creating and working with a major supplier. We did not intend to make these changes in response to complaints.
The final decision regarding outsourcing to another provider was made based on the following factors:
• the potential that the supplier could be harmed by adverse employment terms for the employee
• the opportunity for the supplier to gain bargaining power within their own country of origin and other important economic factors
• the needs of their suppliers
• other relevant concerns such as price, safety, etc. of their production.
During this time, we have heard from the suppliers and the workers of the manufacturing company that they do not see any potential, cost-effective business reasons for outsourcing a company’s operations to an outside supplier.
We have also heard from the suppliers that the suppliers would need to invest in various other things to ensure that their products meet the needs of their major customers.
We also have received complaints from other manufacturers of manufacturing products that they are unable to make their own products at a timely pace, have to rely more on foreign suppliers and require foreign assistance.
We believe that if I can be part of a successful outsourcing campaign, it will help develop partnerships, and in turn benefit consumers through better products for our customers.
We plan to conduct the audit of the supplier and employee relations activities, as well as the whole outsourcing operation, for several months together and will continue to have ongoing efforts to resolve the issues from the initial audit cycle. We will keep you updated as more information becomes available.
Conclusion
I have completed this program more than four years after I took the job. A lot of the work that we did during this process was designed to assist the employees. I can say that without the training in the early stages and the additional time that we had on track, we are not in the picture for 2014-2015.
The cost of this program should be substantially reduced. In fact, there are other benefits to outsourcing. While doing this, we have experienced a significant reduction in the amount of cost as well. For example, the cost of manufacturing a home for two years in the U.S. doubled in the last eight years, the cost of constructing a large office building tripled, and the cost per square foot of space at a major center doubled.
In fact, even though we will provide free training to other contractors and will have an internal committee ensure that all outsourcing activities are conducted at a sustainable tempo, we will continue to pursue new business strategies.
We were able to find that some of our employees at this time are still working extremely hard with a sense of purpose that is similar to a new business. While I am thankful for these achievements, I also believe that we have to improve our work environments if we are to succeed.
I know that many of our employees are looking forward to their own retirement or to a better future. For now, as we continue to pursue our goals, our focus is on finding opportunities to invest in our organizations.
Thank you for your continuing support of our work.
Franchise and Firm Relations We made no changes to the process of creating and working with a major supplier. We did not intend to make these changes in response to complaints.
The final decision regarding outsourcing to another provider was made based on the following factors:
• the potential that the supplier could be harmed by adverse employment terms for the employee
• the opportunity for the supplier to gain bargaining power within their own country of origin and other important economic factors
• the needs of their suppliers
• other relevant concerns such as price, safety, etc. of their production.
During this time, we have heard from the suppliers and the workers of the manufacturing company that they do not see any potential, cost-effective business reasons for outsourcing a company’s operations to an outside supplier.
We have also heard from the suppliers that the suppliers would need to invest in various other things to ensure that their products meet the needs of their major customers.
We also have received complaints from other manufacturers of manufacturing products that they are unable to make their own products at a timely pace, have to rely more on foreign suppliers and require foreign assistance.
We believe that if I can be part of a successful outsourcing campaign, it will help develop partnerships, and in turn benefit consumers through better products for our customers.
We plan to conduct the audit of the supplier and employee relations activities, as well as the whole outsourcing operation, for several months together and will continue to have ongoing efforts to resolve the issues from the initial audit cycle. We will keep you updated as more information becomes available.
Conclusion
I have completed this program more than four years after I took the job. A lot of the work that we did during this process was designed to assist the employees. I can say that without the training in the early stages and the additional time that we had on track, we are not in the picture for 2014-2015.
The cost of this program should be substantially reduced. In fact, there are other benefits to outsourcing. While doing this, we have experienced a significant reduction in the amount of cost as well. For example, the cost of manufacturing a home for two years in the U.S. doubled in the last eight years, the cost of constructing a large office building tripled, and the cost per square foot of space at a major center doubled.
In fact, even though we will provide free training to other contractors and will have an internal committee ensure that all outsourcing activities are conducted at a sustainable tempo, we will continue to pursue new business strategies.
We were able to find that some of our employees at this time are still working extremely hard with a sense of purpose that is similar to a new business. While I am thankful for these achievements, I also believe that we have to improve our work environments if we are to succeed.
I know that many of our employees are looking forward to their own retirement or to a better future. For now, as we continue to pursue our goals, our focus is on finding opportunities to invest in our organizations.
Thank you for your continuing support of our work.
Franchise and Firm Relations We made no changes to the process of creating and working with a major supplier. We did not intend to make these changes in response to complaints.
The final decision regarding outsourcing to another provider was made based on the following factors:
• the potential that the supplier could be harmed by adverse employment terms for the employee
• the opportunity for the supplier to gain bargaining power within their own country of origin and other important economic factors
• the needs of their suppliers
• other relevant concerns such as price, safety, etc. of their production.
During this time, we have heard from the suppliers and the workers of the manufacturing company that they do not see any potential, cost-effective business reasons for outsourcing a company’s operations to an outside supplier.
We have also heard from the suppliers that the suppliers would need to invest in various other things to ensure that their products meet the needs of their major customers.
We also have received complaints from other manufacturers of manufacturing products that they are unable to make their own products at a timely pace, have to rely more on foreign suppliers and require foreign assistance.
We believe that if I can be part of a successful outsourcing campaign, it will help develop partnerships, and in turn benefit consumers through better products for our customers.
We plan to conduct the audit of the supplier and employee relations activities, as well as the whole outsourcing operation, for several months together and will continue to have ongoing efforts to resolve the issues from the initial audit cycle. We will keep you updated as more information becomes available.
Conclusion
I have completed this program more than four years after I took the job. A lot of the work that we did during this process was designed to assist the employees. I can say that without the training in the early stages and the additional time that we had on track, we are not in the picture for 2014-2015.
The cost of this program should be substantially reduced. In fact, there are other benefits to outsourcing. While doing this, we have experienced a significant reduction in the amount of cost as well. For example, the cost of manufacturing a home for two years in the U.S. doubled in the last eight years, the cost of constructing a large office building tripled, and the cost per square foot of space at a major center doubled.
In fact, even though we will provide free training to other contractors and will have an internal committee ensure that all outsourcing activities are conducted at a sustainable tempo, we will continue to pursue new business strategies.
We were able to find that some of our employees at this time are still working extremely hard with a sense of purpose that is similar to a new business. While I am thankful for these achievements, I also believe that we have to improve our work environments if we are to succeed.
I know that many of our employees are looking forward to their own retirement or to a better future. For now, as we continue to pursue our goals, our focus is on finding opportunities to invest in our organizations.
Thank you for your continuing support of our work.