Planning:
It is the process of formulating a future course of action. Planning help determines in advance the pathway and potential changes required to achieve goals.
It helps the manager to identify the resources required. It also helps identify the employee’s goals and needs, which can help frame the motivational plans for employees.
Organizing:
It is the follow-up function of planning.
It is a manager, human and non-human resources working together in a synchronized manner.
Organizing helps in the delegation of authority and allocation of resources. It helps in the optimum utilization of resources.
Staffing:
It is the process of recruitment of eligible human resources for the various positions in an organization.
Managers go through a process to find the best suitable employee for the organization.
Staffing process:
- Manpower Planning
- Recruitment
- Selection
- Placement
- Training & Development
- Remuneration
- Performance Evaluation of employee
- Transfer
Directing:
It is the part of management functions that puts the goals into action. Directing accumulates the above three functions and deploys them to one common goal.
As the name suggests, directing directs the pathway by putting things to action. The manager uses leadership, motivation, communication, etc. It helps to guide the employee.
Controlling:
Now is the time to have the real test of all the hard work the organization had done earlier. Controlling measures and correcting if needed. It ensures that things are working as per the plan. It identifies the deviation and helps in achieving the goal.
Nature of Demand:
The organization’s motive is to create a product that suits their targeted audience. customers tend to demand certain products per their needs.
An organization with a plan to survive and to earn want their product to meet the customer requirements.
Customer demand shows no pattern as it changes with certain factors like seasonality, taste and preferences, price of substitute goods, and many more.
For instance, demand for raincoats will be higher in the rainy seasons than in summers.
One of the prominent factors for customers’ demand is price.
Price and demand are inversely related to each other.
The more the price is, is less likely it is that a large audience will buy the product. Companies should consider the price sensitivity e of their targeted audience before pricing their product.
Vertical Integration:
The organizations give the utmost significance to vertical integration while preparing the production process.
Vertical integration is the procedure of taking ownership of every step of the product from production to distribution.
It helps the organization To have control over everything and not to rely on others.
For example, a mobile manufacturing company is producing every component of the mobile in their factory rather than purchasing the parts from different distributors and assembling them in the factory.
It helps the companies to take over the responsibility e of the quality of the product and may reduce the extra cost of purchasing the component from third-party sellers.
The degree of vertical integration is an industry-oriented activity.
Vertical integration suitable for one organization may not necessarily be apt for the other.
Organizations need to have an overlook on to which extent they can integrate for their product line.
