Management Function in Action

Management Function in Action

Table of Content

Heading                                                                        Page

Introduction                                                                        03 - 03

Planning                                                                        04 - 07

Organisation                                                                07 - 12

Leading                                                                        12 - 18

Controlling                                                                        18 – 21

Conclusion                                                                        21 - 21

Bibliography                                                                22 - 23

Introduction

The effectiveness of Management functions in Action can be assessed through the examination of the core functions of a multi-national, discount retailer, and more specifically their operation in Ireland.

Lidl Ireland have been operating since 2000 and have shown year on year growth since their arrival. They now have over 170 stores and approximately 3800 employees on the island. Their success can be directly linked to the strength of the people within the organisation, at all levels. At the heart of the operation is the Store Manager, who is the lynchpin between the overall goals of the organisation and the customer that the business serves.

This assignment aims to analyse the four main functions of management used by the manager; these are Planning, Organising, Leading and Controlling. From these findings it will be possible to evaluate the functions in action compared to the theory surrounding them.

The manager that has been chosen to interview has worked for the company for over seven years as both a deputy manager and store manager. It is the responsibility of the store manager to oversee day-to-day operations of the store, to manage, motivate, develop and inspire the team and also to ensure that the customer is kept at the heart of the business.

Planning

“Planning is often called the primary management function because it establishes the basis for all the other things managers do as they organise, lead and control.” (Robbins, DeCenzo and Coulter, 2014, p.145).

Planning is a key fundamental element at any level of management, whether it is managing a small business, a team of people to a large multi-national organisation. In business, planning can take on many forms and contain a wide range of characteristics, depending on the level of an organisation these plans are made at and depending on the type of strategy the company may be following. These can range from long term strategic plans that are expected to drive a business for years to come, to simple short term resource allocation plans made by a low level manager. The following image attempts to explain these different types into their respective categories:

[pic 1]

Source: Robbins, DeCenzo and Coulter, 2014, p.158.

Planning can be explained by breaking it down into its two aspects, Goals and Plans, which can be explained as, “Goals provide the direction for all management decisions and actions and form the criteria against which actual accomplishments are measured.” (Robbins, DeCenzo and Coulter, 2014, p.156).  

From the interview held with the Store Manager for Lidl, it is clear that planning plays a major part in the role, underpinning the success of the store and influencing the effectiveness of a manager. At this level the planning that would be carried out would be across two main areas – the store’s performance in KPIs, (Key Performance Indicators), and the personal development of the staff within the store. Although these areas are directly related, they are both managed using two different models.

The plans made to reach the store KPI’s would follow a traditional goal setting pattern, with targets being agreed at the start of the financial year. These targets are set by top managers and flow down through the organisation, being adjusted depending on the level they are at. Within these targets the Store Manager has some amount of freedom to plan the resources they have. For instance when planning the weekly rota the manager takes into consideration many internal and external factors, such as weekly tasks, customer frequencies, productivity requirements, promotions and local events. On top of this the manager also takes into consideration the individual needs of the staff and also their capabilities to ensure the right person is doing the right job at the right time. This thinking directly follows one of Henri Fayol’s 14 Principles of Management, “Social order involves an appointed place for each employee, and each employee in his or her appointed place.” (Mullins, 2005, p.197). The following image shows how a traditional goal setting model works in an organisation:

[pic 2]

Source: Robbins, DeCenzo and Coulter, 2014, p.156.

On the other hand, in terms of planning the Personal Development of the store staff, an approach of Management by Objectives can be seen. MBO can be described as, “a process of setting mutually-agreed upon goals and using those goals to evaluate employee performance.” (Robbins, DeCenzo and Coulter, 2014, p.157). It is argued this is a more positive way to increase employee performance as it also motivates employees. This is achieved through the input of the employees, focusing them on attaining these goals they themselves help set. There are many positives to taking this approach such as increased employee performance, increased organisational productivity to a more motivated and satisfied work force.