A Report on the Link Between Management Principles, Functions and Organisation Structure

A REPORT ON THE LINK BETWEEN MANAGEMENT PRINCIPLES, FUNCTIONS AND ORGANISATION STRUCTURE ESHUL RAYHAN ID 103718-86 TABLE OF CONTENTS PAGE NO. SUMMARY†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3 INTRODUCTION†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4 FUNCTION OF PLANNING LINKING WITH MANAGEMENT PRINCIPLES AND ORGANIZATIONAL STRUCTURE†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 5 FUNCTION OF ORGANISING LINKING WITH MANAGEMENT PRINCIPLES AND ORGANIZATIONAL STRUCTUREâ₠¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 7 FUNCTION OF LEADING WITH MANAGEMENT PRINCIPLES ANDORGANIZATIONAL STRUCTURE†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 8 FUNCTION OF CONTROLLING WITH MANAGEMENT PRINCIPLES AND ORGANIZATIONAL STRUCTURE†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 9 CONCLUSION†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 10 REFERENCE LIST†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦11 SUMMARY The report shows the connection between the four functions of management, Planning, Organizing, Leading and Controlling with the Management Principles and Organizational Structures are designed to imply the factors for the successful operation of a business organization like Marks and Spencer.Examples has been drawn to support the ideas and put light on the scenarios in the organization. INTRODUCTION The motto of the following report is to identify and highlight the connection between the management principles, functions and organizational structure. Every organization has the application of these three factors as better outcomes are achieved when they are linked together and implied. The management principles affect the management functions which have a great influence on the organizational str ucture.This report is using ‘MARKS AND SPENCER’ as an example to show how the three affect on each other. Management is the process of getting activities completed efficiently and effectively through other people. It includes various processes and steps which will be further discussed in the following report. There are 14 management principles as stated by Henry Fayol ( Boddy, 2005 ). Many of them are linked with the functions of management which are, Planning, Organizing, Controlling and Leading.The report is to show the relations between the three factors of the business and how are they implied. FUNCTION OF PLANNING LINKING WITH MANAGEMENT PRINCIPLES AND ORGANISATIONAL STRUCTURE Planning is an essential component of management function to carry out the smooth operation of a business. It contains the property of identifying the obejectives of a business by the management team. When the plans are being made, the changes are implied immediately or according to a time sp an as required according to the current status of the business.For a successful planning, forecasting is very necessary for the management as it helps them to be prepared for the worst case scenarios and to earn more revenues as well. This very function management can be linked with one of the management principles as stated by a French business analyst named Henry Fayol, which is Unity of Direction. The author defines the principle as the combination of group of people who work together to achieve the same organizational goals and performs the activities in a definite synchronized system to achieve them with maximum efficiency.For example, if we look into a press release by Marks and Spencer during their AGM in 11th July 2011, it is seen that the Chairman and CEO of the company, Mr. Luc Vandevelde announced that the company is going to bring a significant change in their planning and thus a change in their organizational structure as well. He also announced the new planning strateg ies which will be carried out to maximize profits for the company. The plans were implied from 29th March 2001. It included the selling of their own brands only but not any other external brands anymore.This is done to reattain the fame regarding the quality of own products as customers experienced no extra facilities buying external brands from Marks and Spencer and neither the external brand companies nor Marks and Spencer could gain any outstanding revenue selling exrternal brand products. To make this come into action, the company decided to return to their own suppliers who had been supplying the very own products dedicated for the selling purpose of Marks and Spencer only. This would result to the attainment of the former business relations and strong future commitments and the uphill formation of M & S business achievements.The second plan was to close down the subsidiary companies which were making losses rather than profits M & S. For example, Brooks Brothers and Kings Supe r Market in USA were sold off as they were loss-making companies and were affecting the gross profit margin of M & S. The company also decided to close down the stores in Central Europe as it was not making profits. These plans were made and implied after research being made by the superiors of the company and the structures had been re-organized.This is where the organizational structure comes into action when the company sort out and design the strategies to overcome the difficulties and perform smooth business actions. FUNCTION OF ORGANISING LINKING WITH MANAGEMENT PRINCIPLE AND ORGANIZATIONAL STRUCTURE Organizing is the process of combining human, physical and financial resources to achieve organizational goals. It is important to carefully dedicate the resources to maximize profits since resources are always limited. This is synchronized with the ‘Division of Labor’ management principle by Henry Fayol.This factor of management principle is described by the author t hat the every duty of an organization is spread evenly among the employees to ease out the process of output. If we draw an example regarding M & S, its seen that the duties are segregated between the employees. The organization is structured from the Chairman to Customer Service Assistant, where, they have different tasks to complete. This results to finish and achieve goals within less time and with more efficiency as there is a saying that,’ A load of ten is a burden of one’.Each of the employee are asked to perform their own definite task which then becomes a positive outcome when made total. FUNCTION OF LEADING LINKING WITH MANAGEMENT PRINCIPLES AND ORGANIZATIONAL STRUCTURE Management needs to exercise the function of leading in order for the organization to achieve their goals. It is an essential part of the management as it helps the management to direct employees to focus on ‘the big picture’. Normally management focuses on increasing productivity to improve cost efficiency. To improve productivity employees need direction and motivation.The direction and motivation are usually received from superiors. This can be linked with the management principle of ‘Authority and Responsibility’ which means to have the power to order the sub-ordinates and direct them to achieving goals. For example, M & S have the supervisors who lead the Retail Operatives to fulfill the targets which are set by the Managers to the supervisors. It follows a chain of command which has the ultimate goal of maximizing profit. The chain of command starts from the highest level of authority like the Chairman and ends to the Retail Operatives’ tasks.FUNCTION OF CONTROLLING LINKING WITH MANAGEMENT PRINCIPLES AND ORGANIZATIONAL STRUCTURE Management must use the function of Control to maximize employee performance and stabilize the working environment. There had been always a controversy where it is widely believed that Controlling is a negati ve term because the employees regard it to be a restriction. But at the very conclusion, it helps to maintain a strict guideline which the employees must follow to avoid chaos. â€Å"Managers expect people in an organization to change their behavior in response to control† (Erven, 1994).This can be inter related with management principle of â€Å"Discipline†, which is clearly stated by Fayol that there should be certain rules which are to be followed must by the employees. When it is looked into M & S, it is apparent that the company applies a number of rules which must be obliged by the employees to create a better working environment and prevent any internal hassles within the company. Therefore, the organization has been structured in such format where certain rules are set in purpose to keep the working environment healthy and prosperous in respect to business aspects. CONCLUSIONFrom the report it is apparent that Management Functions are greatly influenced by the Management Principles based on which the organization is being structured. The achievement of organizational goals are highly affected due to the implication of these three management factors. It is fair to conclude that, for an organization to make profit and carry out its operation in long run, the application of these management factors are inevitable. REFERENCE LIST 1. Boddy, D (2005), Management Concepts and Principles, Prentice Hall 2. [Online] http://corporate. marksandspencer. com/aboutus/ourhistory, Accessed at 12/04/2011