How are the Different Functions of Management Affected by the Purpose of the Organization?
Management and organizations have a very close connection. Different purposes of organizations affect the different functions of management. As Naylor suggests, "Management is the process of achieving organizational objectives, within a changing environment, by balancing efficiency, effectiveness and equity, obtaining the most from limited resources, and working with and through other people" (1999:6). In addition, Bloisi denies that "An organization is a co-operative goal-realizing unit in which participants consciously enter into a mutual relationship and work together in order to attain common goals. These goals can often be best realized by means of joint rather than when individuals act alone. Thus, an organization is the 'instrument' used to make products or provide services which meet the needs of society and of individual people."(2007: 45) From the definition of management and organization, it can be seen that management and organization are inseparable and have a close connection. As one key elements of the definition of management is achieving organizational objectives；Therefore, if an organization strive for success, it must have challenging and achievable goals to realize. In the meantime, if any kind of organization hopes to operate successfully, it needs to implement core management concepts. This necessitates that the four management functions: planning, organizing, directing and controlling be precisely understood. Thus, in this essay, the author will analyze how the different purposes of organizations affected the different functions of management. Firstly the essay will briefly introduce some background information about two main kinds of organizations. Then the essay will analyze the influence of purposes on the management process of profit-seeking organizations and not-for-profit organizations respectively. Finally the essay will draw a conclusion of what has been researched and discussed.
There are mainly two kinds of organizations according to their purposes. It is obvious that there are various organizations existing in the current world. For example, there are an extremely enormous number of companies and enterprises in the business field. And thousands of banks and investment institutions could be found in the same field as well. In the meantime, there are various sports organizations such as International Olympic Committee, Federation International de Football Association and International Basketball Federation. And also a large number of political organizations such as government, administrations could be seen everywhere in the society. Therefore, it can be found that there are different kinds of organisations with different purposes. According to the purpose of organization, it can be found that a majority of organizations can be divided into two groups: profit-seeking organizations and not-for-profit organizations. Both of these two kinds of organizations require well management to run smoothly. Because every organization serves its own aim and goal to achieve and the achievements require people to carry out the management process.
To begin with, in profit-seeking organizations, the four management functions in an organization are usually under the guidance of pursuing the high profit. Pursuing the high profit is usually the primary goal of a profit-seeking organization. Profit-seeking organizations usually include large business, small and start-up business and international business. The first aim of these profit-seeking organizations is also the most important, that is, the pursuit of high profit. Many companies regard the highest interests as their primary objective. Moreover, a majority of firms and companies seek to complete market coverage, lower the unit costs from long production runs, maintain adequate liquidity and deal with...
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Naylor, J. (1999) Management England: Person Education
O ' Shaughnessy, J. (1974) Business Organization London: George Allen& Unwin
Bloisi, W. (2007) Management and Organisational Behaviour Berkshire: Hill Education
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