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Organizing, Staffing, Leading, Controlling and Motivation

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Organizing, Staffing, Leading, Controlling and Motivation Organization & Management Organization and Management follows the Market Analysis. This section should include: your company's organizational structure, details about the ownership of your company, profiles of your management team, and the qualifications of your board of directors. Who does what in your business? What is their background and why are you bringing them into the business as board members or employees? What are they responsible for? These may seem like unnecessary questions to answer in a one- or two-person organization, but the people reading your business plan want to know who's in charge, so tell them. Give a detailed description of each division or department and its function. This section should include who's on the board (if you have an advisory board) and how you intend to keep them there. What kind of salary and benefits package do you have for your people? What incentives are you offering? How about promotions? Reassure your reader that the people you have on staff are more than just names on a letterhead. Organizational Structure A simple but effective way to lay out the structure of your company is to create an organizational chart with a narrative description. This will prove that you're leaving nothing to chance, you've thought out exactly who is doing what, and there is someone in charge of every function of your company. Nothing will fall through the cracks, and nothing will be done three or four times over. To a potential investor or employee, that is very important. Ownership Information This section should also include the legal structure of your business along with the subsequent ownership information it relates to. Have you incorporated your business? If so, is it a C or S corporation? Or perhaps you have formed a partnership with someone. If so, is it a general or limited partnership? Or maybe you are a sole proprietor. The following important ownership information should be incorporated into your business plan: Names of owners Percentage ownership Extent of involvement with the company Forms of ownership (i.e., common stock, preferred stock, general partner, limited partner) Outstanding equity equivalents (i.e., options, warrants, convertible debt) Common stock (i.e., authorized or issued) Management Profiles Experts agree that one of the strongest factors for success in any growth company is the ability and track record of its owner/management team, so let your reader know about the key people in your company and their backgrounds. Provide resumes that include the following information: Name Position (include brief position description along with primary duties) Primary responsibilities and authority Education Unique experience and skills Prior employment Special skills Past track record Industry recognition Community involvement Number of years with company Compensation basis and levels (make sure these are reasonable -- not too high or too low) Be sure you quantify achievements (e.g. "Managed a sales force of ten people," "Managed a department of fifteen people," "Increased revenue by 15 percent in the first six months," "Expanded the retail outlets at the rate of two each year," "Improved the customer service as rated by our customers from a 60 percent to a 90 percent rating") Also highlight how the people surrounding you complement your own skills. If you're just starting out, show how each person's unique experience will contribute to the success of your venture. Board of Directors' Qualifications The major benefit of an unpaid advisory board is that it can provide expertise that your company cannot otherwise afford. A list of well-known, successful business owners/managers can go a long way toward enhancing your company's credibility and perception of management expertise. If you have a board of directors, be sure to gather the following information when developing the outline for your business plan: Names Positions on the board Extent of involvement with company Background Historical and future contribution to the company's success Next, move on to the Service or Product Line section of your plan. Management Role in Organization READ PROPOSE A CHANGE EDIT DISCUSSION HISTORY TEACHING RESOURCES QUIZZES READINGS POWERPOINTS ABOUT THIS CONTENT Boundless leverages the power of an academic community to create and curate educational content. Learn more SHARE THIS CONTENT Management takes part in every step of an organization, giving direction and aligning resources in order to achieve goals. KEY POINTS The overall role of managers is to guide organizations toward accomplishinggoals. Good management covers six basic functions: planning, organizing, staffing, leading, controlling and motivation. All managers perform a range of functions, with the amount of time spent on each function depending on the level of management and specific organizational needs. TERMS organization chart a graphic display of reporting relationships in an organization, sometimes displaying position titles and position holders Levels of management The term "Levels of Management" refers to a line of demarcation between various managerial positions in an organization. Levels of management can be classified in three broad categories: top level administration, middle level management of executing organizational objectives, and first level supervision of tasks and employees. Give us feedback on this content: Edit this content directly Management is the act of getting people together to accomplish shared goals and make effective and efficient use of available resources. Since organizations can be viewed as systems, management can also be defined as human action to facilitate the production of useful outcomes from a system. This view includes how workers can "manage" themselves and how self-management can be seen as a prerequisite for effective management of other people. Management operates through functions that are often classified as planning, organizing, staffing, leading/directing, controlling/monitoring and motivation. Management Management operates through functions like planning, organizing, staffing, leading/directing, controlling/monitoring and motivation. Planning: Mapping out exactly how to achieve particular goals, generatingplans for actions, and deciding what needs to happen in the future (today, next week, next month, next year, or over the next five years). Organizing: Implementing patterns of relationships among workers and making optimum use of resources to carry out plans. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources and natural resources. Staffing: Job analysis, recruitment and hiring for appropriate jobs. A human resources department is essential to accomplishing this goal. Leading/directing: Determining what needs to be done and getting people to do it. Controlling/monitoring: Checking progress against plans and taking any corrective actions necessary to make sure that plans remain on track. Motivation: Motivation is a basic function of management because employees cannot work effectively without motivation. Without motivation, employees may not contribute to other organizational functions and priorities. All levels of management perform these functions, but the amount of time amanager spends on each function depends on the level of management and the needs of the organization. Top level managers consists of the board of directors, president, vice-president, CEOs and others. They are responsible for controlling and overseeing the entire organization. They develop goals, strategic plans, company policies and makedecisions on the direction of the business. In addition, top-level managers play a significant role in the mobilization of outside resources and are accountable toshareholders and the general public. Middle level managers consist of general managers, branch managers and department managers. They are accountable to the top management for the functions of their departments. They devote more time to organizational and directional concerns. Their roles can be emphasized as executing organizational plans in conformance with the company's policies and objectives. This includes being able to define and discuss information and top management policies with lower management and, most importantly, provide lower level managers with guidance and inspiration for high performance. First level managers consist of supervisors, section leads, foremen, and the like. They focus on controlling and directing. They usually have the responsibility of assigning employees tasks, guiding and supervising employees on day-to-day activities, ensuring quality and quantity production, making recommendations, and solving employee problems. MANAGEMENT FUNCTIONS Photo by: George Muresan The functions of management uniquely describe managers' jobs. The most commonly cited functions of management are planning, organizing, leading, and controlling, although some identify additional functions. The functions of management define the process of management as distinct from accounting, finance, marketing, and other business functions. These functions provide a useful way of classifying information about management, and most basic management texts since the 1950s have been organized around a functional framework. DEVELOPMENT OF THE FUNCTIONAL APPROACH TO MANAGEMENT Henri Fayol was the first person to identify elements or functions of management in his classic 1916 book Administration Industrielle et Generale. Fayol was the
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