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Managing A Company: Strategic Foundations

The proper management of a company is a basic piece so that it can obtain a profit derived from its activity. However, failure to use a correct structure based on the company’s strategy can cause a significant loss of traceability.

In this sense, managers are the central pillar on which the rest of the processes in the organization will be supported.

But what functions does the company management have? Let’s see it next.

Business address

We must take into account that the activity of the management will focus on the management of business resources. The objective is to achieve effective decision-making that allows the company’s objectives to be met.

This activity does not have to fall on a single person, but can be divided into different areas or groups according to the needs of the organization.

Mainly the activity of the management is based on:

  • To plan
  • Organize
  • To coordinate
  • Check

Depending on the size of the company we can find different types of management, according to their hierarchy:

  • Senior management: whose function is focused on the planning and execution of the strategies established in the long term.
  • Operational management: It is made up of those employees who have a certain degree of responsibility. They will be in charge of employees and will perform actions on their decision-making.
  • Intermediate management: In this case, it would be integrated at a level between the operational management and senior management. Their tasks would be based on intermediation between both directions.

Also Read: Managing Effective Teams: The Key To Achieving It

The functions of the direction

As we have seen in the previous sections, the functions of managers and general management are focused on decision making. These decisions will achieve an organization within the company, which will help the different departments to coordinate for their proper synergy.

The coordination will have a close relationship with the strategy and general objectives of the company.

This coordination will encompass all departments, ensuring that they all work along the same line, through the general objectives described. In addition, the control functions will help to achieve a verification of the fulfillment of objectives in the execution of your strategies. Through this process, they manage to apply surveillance that facilitates the detection and correction of errors according to the established plan.

In this sense, the management or managers must make decisions from different areas, both internal and external. Internal decisions will be those related to the fulfillment of objectives of the work groups that make up the organization. On the other hand, external decisions are based on the business environment and its evolution.

Regarding the professional positions that encompass the different types of addresses, we find the figure of the president, the vice president and the general manager. Those would be the most responsible for the achievement of objectives.

Skills required by business management

For the aforementioned decision-making, the members of the management must possess a series of skills. These skills must encompass characteristics of a technical, political field and capacity for recruitment. It will be of vital importance to have knowledge and skills for communication and negotiation. As well as some ethical and moral establishments for the choice of their decisions.

This last term is a bit relative, since the person in charge of directing does not have to have this ability, since their decisions are based on economics. However, at the business level, the social image will play a fundamental role in the economic and general development of the organization.

We must remember that management is going to face different restrictions on its activity. Decision-making can sometimes be a complex task for a single manager, so informing different areas of the company and making decisions can be beneficial to avoid friction between departments and achieve greater productivity.

Therefore, to comply with these activities, the management must specifically gather the following skills:

  • Reaction or resolution capacity: It refers to that ability to respond to possible problems effectively.
  • Communication skills: The management must have the ability to know how to transmit their ideas effectively, in addition to knowing how to listen to the needs of the different departments.
  • Leadership: Refers to the ability to manage and motivate teams.

Interest groups

In business development and in the decisions that management must make, there are certain groups that acquire a certain importance. One of these is characterized because they are not part of the company, they are benefited and harmed by their actions. This group is known as stakeholder r .

The company and management in particular, in this case faces different complex situations:

  • On the one hand, the company has scarce resources, so it can be complex to meet the objectives of different interest groups or stakeholders, which could generate a conflict of interest.
  • On the other hand, if the objectives of the interest groups are not met, they can put pressure on the organization or stop supporting them.

Conclusion

In conclusion, we can verify how the management of a company and the elements that form it are the fundamental branch that the company needs to achieve adequate motivation of the employees and to achieve the fulfillment of the established objectives.

Elements such as leadership and motivation will be fundamental, but not absolute. Depending on business policy and management skills, we will find different types of leadership, focused on authoritarianism or democratization of decision-making areas.

In addition, motivation becomes one of the main axes to convert the defined strategies into action plans and achieve short and long-term objectives.

Finally, communication is going to become one of the fundamental parts to achieve effective leadership and adequate motivation. Thus, the established objectives will be met and the correct performance of the organization achieved.

Also Read: 5 Techniques For Managing High Performance Teams

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