Functions of Management
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Functions of Management
In an out of control market, companies in trouble, some in more ways
than one, struggle to make it. Some crash and burn and others get swallowed by larger organizations. Recently Countrywide Financial Corporation (also known as Countrywide Home Loans) agreed to a full buyout deal offered by long-time business companion and investor, Bank of America Corporation. By no means does that mean that Countrywide is a small-time company, they were the leading home lender in the nation. Countrywide established a name for itself and has serviced the “American Dream” for nearly 50 years, which would obviously require great management. Although there are numerous levels of management in such a corporate giant, the term “management” roughly refers to activities involving four functions; planning, organizing, leading, and controlling.
Planning
Planning is the process of identifying goals, objectives, and drawing out the steps and dates for achieving the goals. Some would argue that without planning not many goals would get accomplished. In fact, the three other functions of management would stem from this initial step. It would be a difficult task to organize a staff if there are no planned goals to be achieved. Since no staff has been organized there is no leading or controlling needed. In 1969 Angelo Mozilo along with friend and business partner, David Loeb sat around the table of a small Brooklyn pizza house and began to plan their own mortgage lending company in New York.
Organizing
This step is crucial in reaching the goal in the most efficient manner. Organizing a staff and resources is what will allow one to accomplish their goals. The ability to put together a staff that can work in synergy will give the legs of the business the power to keep the wheels turning. Since the staff and resources make up the meat of the management sandwich. At Countrywide the corporation is broken down and made up of over 30 different functions (e.g. Accounting, Banking, Clerical, Loan Origination, Insurance, Information Technology, Underwriting, and many more). The functions are further broken down into Divisions, such as Remittance Processing, and then even further with Departments, such as Cash Management or Payment Processing. The different layers of the meat in the sandwich would represent the various divisions within the organization. In this function managers will distribute duties, responsibilities, and levels of authority amongst the staff. In order to do this the managers would have to refer back to the original function of planning so that the organizing function can reflect the objectives and mission of the business (Erven, 1995).
Leading
Leading, including setting direction for the organization, groups and individuals and also influencing people to follow that direction. Examples are establishing strategic direction (vision, values, mission and / or goals) and honing methods of organizational performance management to pursue that direction (McNamara, 1997). This function can also be looked at as a directing role which has a significant impact on the performance of individuals within the company. The main purpose of a leader is to somehow tie in the companys objective and the individuals career objectives and motivate that individual to accomplish those goals simultaneously. A manager will accomplish their goals