Assessment 3: Critical Review
“Critiquing the Functions of Managements in the Changing Environment”
The classical functions of management include planning, organising, leading and controlling. While the relevance of these functions has been attributed to the success of many organisations in the past, there has been a doubt on the relevance of these classical functions of management in the contemporary organisations that are witnessing continual changes in their organisational environments.
In this assignment, students should write an individual report to provide a critical analysis on both how the functions of managements are constraining to the ability of organisations to adapt with the changes in their environment, and how organisations could appropriately (i.e. which types, styles, or theories) plan, organise, lead and control in the contemporary workplace characterised by changing environments.
Critiquing the Functions of Managements in the Changing Environment
This assignment will be conducted based on the functions of management in an organisation. Management plays a significant role in an organisation. To move the organisation towards the goal is the basic task of management. By fulfilling the individual goal and improving the individual activities, management helps an organisation to achieve the goal(Raduški, 2017). On another hand, change is an integral part of an organisation. To meet the changing need or the customers, each company has to adopt change. In adapting the change, the functions of management play an important role. With a significant diagnosis of the existing situation, change is adopted by the management.
2. Functions of Management
There are four basic functions of management; those are –
To meet the objectives and goal of a company, the management has to set up a plan. The tasks included in the planning are setting the standards of completion and realistic timelines, delegating responsibilities and allocating human resources. To track the team progress, planning in management plays a vital role(Penn and Pennix, 2017). In necessity, small adjustments are also done by managers at this stage. In the planning stage, the employees set the priority level of some specific tasks.
To ensure the fact that the organisation will run smoothly is very important besides the planning process. In organising the entire operation process within an organisation, the organisational skills of the managers are very important. One of the important functions of management is to organise everything by daily operations (Noe, et al., 2017). New challenges have to be recognised by the managers. At this time, the organisation may have to reallocate the tasks for any changes.
To command the daily tasks of the employees, the managers should be confident and comfortable. However, managers should be comfortable and free to adopt any changes at any time. While communicating the new processes and setting up the goals, a strong sense of direction is projected in the leading function of management(Nunhes, et al., 2017). There are many responsibilities of the leaders, such as solving the conflict within the team, commanding the team members and measuring the performance of the employees.
To monitor all of the above functions is significant to achieve the success of a company. The basic tasks of this function are monitoring the quality of work, performance of employees and reliability and efficiency of completed projects. The existence of plans is required in effective controlling. Therefore, this function depends on planning.
3. Criticism of Functional Approach of Management
According to some experts, the functions of management were not an appropriate explanation of the reality of the responsibilities of the managers. Henry Mintzberg has criticised the concept more. The chaotic nature of managerial work cannot be defined by functions such as planning, organising, leading and controlling(Morschett, et al., 2015). According to the functional approach of management, before taking the management decision, the managers can deliberately and carefully evaluate the information; but in the real sense, it is not true. There are three basic roles of the managers; those are decision-making roles, interpersonal roles and informational roles. The interpersonal role of the managers is consisting of liaison, leader and figurehead(Krutyakova and Anyushenkova, 2018). The decision-making roles of the managers are resource allocator, negotiator, entrepreneur and disturbance handler. On another hand, the informational role of the managers is disseminator, spokesperson and monitor. The usefulness of the functions of management has been challenged by Mintzberg. In spite of having several critiques, the functions have crucial roles in achieving the goal.
4. Types of Change in Organisational Environment
In the organisational environment, three types of changes can be found; those are –
The change in the components of the structure of an organisation is called structural changes. An organisation may be more decentralised because of change in the environment condition. Another type of structural change is the alternation of the organisational design. The major causes of structural change are control system, compensation system and performance appraisal system(Höglund, et al., 2018). Apart from these, there are also other types of structural changes such as changes in job design and job enrichment. For example, the store staff structure for fresh food has been changed by Woolworth.
The process of conversation that helps to transfer the input into output is called technology. In many organisations in Australia, technological change has become very important due to the rapid innovation of change. Areas of changes are automation, equipment, work sequence, information-processing system and work process (Crişan, et al., 2018). For example, Woolworths has adopted a digital strategy to gain momentum and 'Scan and Go' system.
Change in the employee expectation, perceptions, attitudes, skills and performance is called person-oriented change. Some of these changes are new selection, replacement and training and development. Instead of training and development process, Woolworth has focused on recruiting the skilled and experienced employees to deal with new technology.
5. Forces of Change
While managing to adopt the change within the organisational environment, the management should focus on two types of drivers that enhance the change within an organisation.
The external forces that should be focused by the managers are legislation, globalisation, competition, economics and technology. While implementing the new technologies within an organisation, the managers should know about the new technology otherwise they have to hire some experts(Coco-Ripp, 2017). Adaptability skills, communicating skills and cultural skills should be present among the managers while dealing with global expansion. The economy of a country is another major driver of change. If a country will go through a recession, the companies will have to reduce productivity.
Entrepreneurship, change in management, organisational restructuring and employee attitudes are internal forces of change. If a new idea generates within the organisation, the organisation has reallocated its talent management process, hiring process and allocation of resources (Cheng and Yuen, 2017). On another hand, if the employees want to change in the working hour, the job allocation process has to change by the company.
6. Functions of Management in Changing Environments
There are four types of planning, such as strategic planning, operational planning, contingency planning and tactical planning. A high-level overview of the entire business is explored by strategic planning. On another hand, operational planning indicates, the process of operating the entire business process. Tactical planning is used for future happening and contingency plan is applicable for an unexpected thing in business(Berisha and Ismail, 2018). For changing the environment, the contingency plan is more appropriate. When change takes place within an organisation, the management needs to implement some immediate policies to overcome the expected risks because of change. The contingency planning would become more important when the business will become more complicated.
While organising the change, the managers have to follow six strategies; those are as follow.
There are four types of leadership style; those are democratic style, autocratic style, transactional style and transformational style. Among all of these leadership styles, the transformational leadership style is most appropriate for changing the environment within an organisation. The vision, experience and knowledge of the leaders are used to control the change in this leadership style. If there is an expectation of change, the organisation like to adopt the transformational leadership style(Penn and Pennix, 2017). On the idea and vision of the leaders, the success of the transformational leaders depends. The tolerance level of change within an organisation is determined by the leaders. The major challenges faced by the leaders while managing the changes are providing training to the existing employees and ensuring the benefits of change among the employees. Cultural differences are another challenge of the leaders while managing change.
The change will be control by regular monitoring the operation process, performance of the organisation, performance of the employees and working environment.
According to the above discussion, the four functions of management are planning, organising leading and controlling. By using these four functions, the management body of an organisation operates all of the functions. Three types of changes within an organisation have been discussed here(Crişan, et al., 2018). The forces that influence the change within an organisation are technology, globalisation, economy and others. The organisations manage the changes by applying four functions. Transformational leadership style is a crucial instrument to manage change.