Mgmt 1001 Assignment 1

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Fayol’s functions of management refer to the five key features that comprise managerial activity in order to enhance a significant performance in an organization. As Parker and Ritson mentioned, the five functions are planning, organizing, command, coordinating and controlling (2005, 176). Nowadays, the five functions are categorized as four, which are planning, organizing, leading (command and coordinating) and controlling, according to Tsoukas (1994, 292). Predominantly service economy refers to the type of economy our society is, a tertiary production economy. Although they were raised by Fayol in 18th century, in my opinion, Fayols’s functions of management are still relevant in our present economy. To commence with, the planning means setting up appropriate goals for the organization. Apart from goal, mission vision and strategy are also included in the planning function according to Pryor and Taneija (2005, 498). It is significant because direction of a company is shown through setting up objectives. According to Fayol, planning includes forecasting which requires collecting and studying of essential data (cited in Parker and Ritson, 2005, 176). Through studying the important data, a proper goal can be established regarding to company size and capability. Reaching the target is utmost important and it can be accomplished by a clear view of the complete plan of the company which requires an accurate planning by the manager. This planning includes stock flow, cash flow or a prediction on change in customer preference. This kind of planning is necessary. Therefore, planning function is still relevant in today’s predominantly service economy. Secondly, the organizing function refers to designing processes and arrangements to attain goals established in the planning process. This function is more affected when there is a change in leading economy.
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