Management in an Organisation- Different Roles (PartI)
For any Organisation, there must be certain Goals which defines its objectives and so the tasks. All the small, individual, identifiable and complete activities, which are usually the smallest part of the defined activities are tasks. It is very essential, for an Organisation to define its goal then objectives and so the smallest tasks to be finished within a defined period by evaluating available resources and constraints, which has to be completed by defined people. In an Organisation, the whole goal is usually gets reached by executing three measurable steps, these are execution of Tasks, execution of Objectives and Execution of goals. As these steps in general defines the whole task assigned to different levels of management in suitable time frames, so all the tasks has to be assigned to individuals within these three different levels of management. Usually the task gets accomplished by the lowest managerial level, The objectives by middle management and goals by top management.
As we have quite often observed that in our daily life schedule, to accomplish a small task we are required to plan properly, then execute such task and evaluate it to know that, where the actual plan is, where it should be; if left as it is, and what it needs to place it at certain position, is quite crucial to move it at its desired place. The same situation works in an Organisation too. Rather, this is the common approach by which all the activities are get evaluated, get controlled and get designed to move in the desired direction with the desired speed. This in general known as GAP analysis and have often being used in different Organisation to direct its all the activities towards desired direction.
To meet our needs and expectations we do all the activities, similar is the situation with an Organisation. To get and achieve certain defined goals all economic activities are usually executed and performed. Let us define what costing is, what Finance deals with and what exactly Management deals with.
Let a person wants to produce a unit/economic unit. Now, let that person be an Organisation and assume that the organisation wants to bring a unit into the market, so what it has to do?. What it will have to think of?. How it would structure the idea to be processed through different processes so to bring a definite (desired) product into the market?
If it is a well established organisation, it will certainly follow these steps;
? it will evaluate its (Product’s) credentials/worthiness
? It will enlist the available substitutes
? It will try to justify the uniqueness of the product
? It will go through SWOT Analysis
? It will collect the genuine competitors information
? It will collect information about the feasibility of the Project
? If any other similar product/products is/are in the market, it will try to get the whole experience of the product, i.e., How the product was in the past, what’s it’s current status, what could be projected for the similar products to know the market potential and the growth prospect for the desired product in the market
? The market acceptance for the desired product
? The specific Market/Market Segment or Class of customers to whom it is going to be produced?
? The satisfaction criteria it will serve and to whom?
? What else be expected by the customers from this product?
? What are the other available opportunities available with the organisation, along with this plan which are expected to serve the same purpose of the Organisation similar to this product?
? What are the benefits of producing this product
? What could be lost in monetary and non monetary terms if this product is produced and other opportunities are refused to be produced?
? What are the Pros and Cons of going ahead with the production of desired product?
? What kinds of Risk the Organisation has to face if this decision is taken or other one has been opted?
Now if all these information is available to the Management and if they supports the production of the desired product or else any other profitable product the second step the Organisation must have to do is , they will have to certainly evaluate the available resources, the constraints which might impose the processing during any time of its production. If again, it can be predictable that it is quite worthy to bring the idea into the concept, all managerial efforts will go to bring the idea into the concrete concept.
Let us see how in an simple step we could define, Management is concerned towards such a decision by this situation.
All comes under the preview of Management, the difference gets more defined with:
i) Costing is related with getting comparative overview of all the activities for the product i.e.
? (Pre Production stage/Analysis and Research stage)
? (Processing Stages)
? (Production stage)
? (Distribution and Logistic stages)
? (CRM stages)
with proper recommendations to what would be the best action/decision.
ii) Management would come into the picture with evaluating all available options and to take one ideal decision
iii) finance will serve by examining the financial resources and suggesting the ideal finance plan to support the desired production to be produced effectively and have the right mix of finance to minimize the cost and have at least neutral effect on Shareholders’ value.
In a very brief and specific way we can define costing as a stream which helps in getting all valuable, non valuable, alternate, specific, time bounded, recourse bounded, constraints bounded data to help management in taking effective and worth decisions. It cover all the aspects of an Organisation, by which one can easily decide where to go, how to go why such decision, what its impact or effect would be, what the alternates available etc. So, in general the scratch gets available by these people, the resources especially finance gets measured by Finance people and the management not very different from these has to decide what to do from these information? In general the Management now has to decide and has to take decision based upon the information he has provided with.