Management of an Organization and Management Techniques
Management of an Organization and Management Techniques
Management of an organization is not a simple activity. On the contrary it is quite complex. Both internal and external factors affect the organizational functioning. Further there are several areas and elements which are required to be managed. Sometimes functioning of an area may appear to be in conflict with the functioning of other area. Smooth functioning of the organization depends on how the management of these different areas and elements are conducted. There are specific management techniques for each area and element. There are other techniques which may encompass entire organization. If these techniques are followed, it aids the proper and healthy functioning of the organization.
Management of an organization (Fig 1) can be broadly divided into two areas. These areas of management are (i) management of organizational internal elements which have impact on the organizational functioning, and (ii) management of organizational functions where the organization comes in contact with external agencies.
Internal organizational elements for management normally include (i) operational management which is the key to the existence of the organization, (ii) financial management for making the organization healthy financially, (iii) human resource management which deals with the management and development of the employees, (iv) management of organizational future which takes care for the future of the organization in the context of fast changing environment, and (v) management of safety, security and welfare which takes care of the employees’ safety, protection of the organizational properties and the external needs of the employees.
Organizational functions involving external agencies are (i) sales and purchase functions involving customers and suppliers, (ii) complying with regulations and laws where the organization comes in touch with regulatory authorities and government, (iii) societal functions where the organization comes in touch with society, media and local authorities, (iv) investors relations where the organization is required to defend its functioning to have the confidence of its investors, and (v) image building functions by which the organization not only impact its image but enhances its brand value.
Fig 1 Management of an organization
Further the environment in which the organization works changes with time. In recent past it has changed very fast. The current environment of globalization, rapid technological advances and economic turbulence has increased the challenges for the management of the organization since it has affected both the internal and the external functions of the management.
A large number of management techniques are available to the management for the solving of the organizational issues. Selection of the proper techniques and then successful use of the selected techniques help the management to make the right decisions that leads to the effective and the efficient working of the organization. Right decisions taken at appropriate time not only enhances the processes, products and services of the organization but also propels the organization to deliver superior performance and profits. Successful use of such techniques requires an understanding of the strengths and weaknesses of each technique, as well as an ability to creatively integrate the right techniques, in the right way, at the right time. The secret is not in discovering one simple solution, but in learning which techniques to use, and how and when to use them. .
In the present day environment, it is necessary for the managers to understand the application of the management techniques and to have the capability to identify, select, implement and integrate the optimal techniques not only to optimize the performance of the organization but also to improve it. The selection of proper technique is very important for obtaining the desired results.
Management techniques for enhancing of internal organizational functioning
Management techniques described below if adopted in a correct manner helps the organization to enhance and improve its internal functioning.
Techniques for operational management
Functions of the operations in the organization are to manage various processes of the organization which produces products and services for the customers. These functions include production planning and control, operation of plant and equipment, maintenance and upkeep of the plant and equipment, optimization in the use of raw materials, conservation of materials and energy, maintenance of environment, and management of technological and workplace discipline etc.
A big list of management techniques is available for the operational management. This list of management techniques include (i) working with systems and procedures, (ii) development and implementation of management systems such as quality management system, environment management system, and energy management system, (iii) quality circles, (iv) value engineering, (v) suggestion scheme, (vi) quality assurance, (vii) process and quality control, (viii) management information system, (ix) knowledge management, (x) inventory management and control, (xi) data based decision making, (xii) adherence to technological discipline, (xiii) annual budgeting, (xiv) cost control, (xv) total quality management, (xvi) statistical quality control, (xvii) six sigma, (xviii) maintenance management system, (xix) process management, (xx) process automation, (xxi) performance management, (xxii) environmental, energy and technological audits, (xxiii) analytical thinking, (xxiv) failure analysis, (xxv) disaster management and contingency planning, and (xxvi) adoption of standardization techniques etc.
Techniques for financial management
The main function of the financial management is to manage the finances of the organization. The functions include amongst others management of financial resources, management of receivables and expenditures and keeping proper accounts, management of cash flow, making timely payments, arrangement of finances for capital expenditure with minimum costs to the organization, and parking of savings for maximum yields etc.
The management techniques available for the financial management include (i) budgeting, (ii) cost management (iii) auditing, (iv) risk analysis and management, (v) data analysis and management, (vi) contingency planning, (vii) resource management, and (viii) investors relation management etc.
Techniques for human resource managements
Human resource management is also sometimes known as personal management. The main function of human resource management is to manage the personnel of the organization. The functions of the human resource management include amongst others human resource planning, recruitment of the employees, bringing the recruited employees on board, the talent enhancement of employees, deciding of the compensation, employees appraisals, handling of employees discipline, motivation of the employees, recognition and rewards, industrial relations, succession management, career planning, and welfare of employees etc.
The management techniques available for the human resource management include (i) balanced scorecard, (ii) conflict management, (iii) delegation of power, (iv) compensation management, (v) employees’ engagement, (vi) employees’ satisfaction and satisfaction survey, (vii) development and implementation of effective communication system, (viii) industrial relation management, (ix) inter personal relationship, (x) maintenance of organizational discipline, (xi) planning for organizational learning, (xii) developing employees’ competencies, (xiii) tracking employees’ motivation (xiv) process approach to personnel management, (xv) talent management, (xvi) team working, (xvii) talent acquisition, (xviii) succession planning, (xix) outsourcing, (xx) employees’ loyalty management, and (xxi) people strategy for excellence etc.
Techniques for managing organization future
In a fast changing world, it is necessary for the organization to keep pace with the changes if it has to remain competitive. Hence, adoption to change and managing the future of the organization is important not only for the success of the organization but also for its survival. Management of the organization future is also needed for meeting the organizational vision. It is required either due to the external pressures or due to the internal reasons. It is needed either for consolidation or for expansion. It is also required for the enhancement of the organizational capabilities. Planning function of the management is deeply rooted in the management of the organization future.
The management techniques used for the future planning of the organization includes (i) feasibility studies, (ii) creation of sustainable future, (iii) forward and backward integration, (iv) diversification strategies, (v) management of uncertainties, (vi) mergers and acquisitions, (vii) project evaluation and review technique, (viii) SWOT analysis, (ix) resource management and (x) risk management etc.
Techniques for the management of safety, security and welfare
The health, safety and protection of employees, equipment and the environment are of serious concern in an organization. The health and safety of employees is crucial since it affects both economic and social factors. Safety and health has implications for cost, delivery, quality, and social responsibility. It is often stated that a successful organization is also the safest organization. A safe working environment for all the employees and an accident free working place is the top most priority for the management of the organization. Safety requires a permanent 100 % commitment from everyone. Most importantly, it requires a strong commitment from top management of the organization, which also sets the culture in which safety is the number one priority and in which safety is not compromised with any other objective.
The organization also requires careful attention to security and safeguards. Security is aimed at preventing intentional acts that might harm the organization or result in the theft of materials.
Employees’ welfare refers to those measures of the organization which aim at promoting the physical, psychological, and general wellbeing of the employees. The basic aim of welfare measures is to improve the living and working conditions of the employees along with their families. Normally employees’ families are included when welfare measures are taken by the organization since the employees’ wellbeing cannot be achieved in isolation from their family. The employees’ welfare measures include some or all of the amenities provided in or near the organization and related to the working and living conditions.
The management techniques available for the safety security and welfare in the organization are (i) development of occupational health and safety management system, (ii) safety audits, (iii) safety inspections, (iv) safe working procedures and work practices, (v) safety awareness and training, (vi) hazard, hazid, hazan, and hazop studies and analyses, (vii) risk management, (vii) safety consciousness, (vii) safety promotions, (viii) accidents/incident investigations and analyses, (ix) safety measurement and monitoring, (x) emergency preparedness, (xi) compliance to safety rules and regulations, (xii) use of personal protective equipments (PPEs), (xiii) stress and fatigue management at work place, (xiv) preventive security measures, (xv) protective security measures, (xvi) detective security measures, (xvii) punitive security measures, (xviii) security audits, (xix) use of security gadgets, (xx) intramural welfare facilities, and (xxi) extramural welfare facilities etc.
Management techniques for organizational functions involving external agencies
There are a number of organizational functions where the employees are to interact with outside agencies. Further the organization is to build and sustain its corporate image. Managing of the corporate image is the key to security and success of the organization and helps it in maintaining public trust. Corporate image is the net result of the interaction of all the experiences, beliefs, feelings, knowledge and impressions that people have about the organization. It literally means the level of reputation and an overall picture which the organization has been able to create in the eyes of public, competition, suppliers, customers and other subjects involved. Major of the functions where the organizational employees comes in contact with external agencies include sales and purchase functions, dealing with regulatory authorities and government, societal functions where the organization comes in touch with society, media and local authorities, and investors relations.
Collectively the outside agencies are termed as stakeholders. Stakeholders refer to those people and groups who have a stake in some aspect of the organizational products, operations, markets, industry, or outcomes. Stakeholders are the individuals, groups, or other organizations that are affected by and also affect the decisions and actions of the organization. Depending on the specific organization, stakeholders may include governmental agencies, statutory bodies, social activist groups, self-regulatory organizations, employees, shareholders, customers, suppliers, distributors, media and even the community in which the organization is located among many others.
Management techniques available for organizational functions involving external agencies are (i) customer loyalty, (ii) customer segmentation, (iii) customer relationship management, (iv) customer focus, (v) customer satisfaction, (vi) customer centric approach, (vii) customer satisfaction survey, (viii) building of corporate image, (ix) branding, brand and brand management, (x) price optimization process, (xi) corporate social responsibilities, (xii) external communication, (xiii) supply chain management, (xiv) strategic alliances, (xv) involving stakeholders in the decision making processes, (xvi) development of purchase and sales procedures, (xvii) contract management, (xviii) developing negotiating skills, (xix) building of confidentiality and transparency, and (xx) investors relationship management etc.
Management techniques applicable to entire organization
There are many other management techniques which are not specific to one area of the organization. These techniques are rapidly becoming recognized as important keys for the organizational success. They normally cover many areas of the organization and some of them are very important management techniques.
Management techniques which available for use of the entire organization are (i) vision and mission statements, (ii) bench marking, (iii) digitization process, (iv) core competencies, (v) complexity reduction, (vi) change management, (vii) contingencies planning, (viii) business process reengineering (BPE), (ix) management information system (MIS), (x) time management, (xi) continuous improvement process, (xii) crisis management, (xiii) creation of sustainable future, (xiv) decision making process, (xv) building organizational capabilities, (xvi) policy and strategy management, (xvii) creating problem solving culture, (xviii) harnessing of creativity and innovations, and (xix) disruptive innovation laboratories etc.