The Four Functions of Management
There are four main functions of management, no matter how big or small a company is. These functions are vital to the success of the overall company goals and longevity. Without these functions being in place, many organizations have failed to live up to its potential. In the following paragraphs, I am going to define each function as it relates to E-loan Incorporated. E-loan is an online based lending company, with departments for automotive, home equity, and first mortgages. Each department has its own set of management, with a governing board of directors for the entire company.
The first function of management, planning, is designed to deliver strategic value to the goals of the company. This function is the first step for any startup company, or even corporations that need to take a different approach to what they are already doing. E-loan has a department called Capital Markets, and they are the team that watches market trends, returns on investments, and also set special pricing increases or decreases. They decide if we are being competitive within each department, and also keep a close watch on what we can do to stay competitive within an ever changing housing market. Capital Markets help our board of directors to decide if new product should be offered and gauge the risks and benefits to each decision. They also help determine what resources we will need to further our company goals, and help secure investors for more financial backing.
Organizing, which is the second function of management, is assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals. Organizing activities include attracting people to the organization, specifying job responsibilities, groupi ...