home - Management Arrow Management - Vikhanskiy OS

Management - Vikhanskiy OS

<< Contents <Prev Next>

1.3. Analysis of management functions

Management functions are relatively independent, specialized and isolated areas of management activity. In order to be considered as such, the management function must have a clearly expressed content, a developed process for its implementation and a specific structure within which its organizational isolation is completed (Table 6.3).

Table 6.3.

Criteria for the existence of a management function

Characteristics of the site management activities

Criteria for the existence of management functions

Independence

Content

Specialization

Process

Isolation

Structure

The content of the function answers the question, what actions (set of actions) are performed within the framework of this function? For example, the planning function assumes that the following actions are carried out in the organization:

• on the basis of the study of the external environment and the interests of major groups of influence, the mission of the organization is formulated;

• Based on market requirements and the organization's capabilities, its objectives are set;

• Based on the established objectives of the organization and the state of the external and internal environment, alternative strategies are identified;

• To implement strategies in the organization, policies and procedures are developed that set standards and norms in the actions of members of the organization;

• practical work in the units is based on operational plans;

• The plans of the organization and its parts are provided by the system of indicators and financial resources for their implementation.

In general, the planning function is carried out in large modern production organizations at two levels: strategic and operational. The strategic level of planning assesses the future viability and profitability of the various activities of the organization. Operational (usually annual) planning comes from the strategic and is built in sufficient detail and accurately in its content. The annual plan is an operational document, according to which the planned scope of activity is determined for each area of ​​the organization's activity, plans are made for attracting labor, capital investment plans and plans and schedules for the release of new types of products. The annual plan details the production and marketing plans quarterly and monthly.

The process of implementing the function answers the question of what is the logical sequence of actions performed within the function , what should be followed for the function to be executed. The planning function can have the following order of operations (Table 6.4).

Table 6 4.

Procedure for planning

Months of the pre-planned year

Actions and events that accompany the planning process

March-June

The planning department studies the market and the competitive environment, makes estimates of business activity, clarifies the strategy for markets, products, finance, etc. In June of the pre-planned year, the planned targets, indicators and priorities are established and approved by the top management

July

A planning conference is held for the asset of the organization's executives. Top management of the organization presents its plans and strategy to the participants. Participants discuss proposals and decide what needs to be done at the lower levels of the organization

August

The participants of the conference (heads of the parts and divisions of the organization, chief specialists, etc.) return to their places and interpret the proposed planning tasks in relation to their work sites. The calendar of the operational planning process is being developed

September

Preliminary planned tasks are consistently brought to all levels of the organization down to the lowest level - the working group. On their basis, each unit and site prepare their counter-proposals for each section of the organization's plan. The data are transferred to the top, where they are evaluated and the possibility of achieving the goals set by the top management is determined

October

Heads of the units conduct one more iteration of the planned proposals with the management of the organization, make the necessary changes to the plans in agreement with the lower levels and approve the plans of their subdivisions

November

Top management of the organization approves the final version of the organization's plan

December

The centralized functional services check the readiness of the parts and units of the organization to fulfill the next year's plan (for example, whether contracts with suppliers are concluded, whether the level of qualification of the workforce is adequate, etc.). Each employee of the organization develops his individual work plan in accordance with the organization's plan, following the priorities established in it

During the planning period, each unit updates the sales forecasts and costs on a monthly basis (using a 12-month rolling forecast) and aligns its plans with these refinements. The planning process in a large production organization is shown in Fig. 6.2.

Planning process in a large production organization

Fig. 6.2. The planning process in a large manufacturing organization in a market economy

The structure of the function responds to the question of how or how the actions constituting the given function are formally linked . Usually in the enterprise the planning function is performed by many divisions. The leading role here undoubtedly is played by the planning service. However, a significant part of the planning work is carried out by the finance department, accounting, supply, marketing, R & D department, etc., for example. This is illustrated, for example, by the structure and composition of the plan of one of the enterprises of a large machine-building corporation.

The structure and composition of the enterprise (association) plan includes the following.

• Production and sale of products (nomenclature and volume of products).

• Technical and organizational development (development of technology and new products).

• Increasing the efficiency of production (growth rates of production, productivity, profit and profitability).

• Rationing of work and materials (norms of costs, costs, cost).

• Capital investments and capital construction (volumes, terms and cost of construction of new facilities and reconstruction of old ones).

• Logistics (resource requirements).

• Personnel and its payment (structure and development of personnel, payment systems).

• Cost, profit and profitability (cost systems, prices).

• Incentive systems (incentive funds and their sources, loans, fees for funds, depreciation, etc.).

• Financial plan (balances, taxation, loans, fees for funds, depreciation, etc.).

• Social development of the team (value orientations, norms of behavior, systems of collective use, etc.).

• Protection of nature and rational use of natural resources (control over the environment, improvement of the environment).

Thus, the content, process and structure of the function are the directions by which it is analyzed. The results of this analysis can serve as the basis for the development of the function: the allocation of a new function from it or the removal of the function from the organization as a uselessness. In the following, it will be shown how the results of the analysis of a function are used to design the work and structure of the organization.


<< Contents <Prev Next>