In profitable organizations, management's primary function is to satisfy a range of stakeholders. This typically involves generating profit for shareholders, creating valuable products at reasonable costs for customers, and providing great employment opportunities for employees. In nonprofit management, this includes maintaining the trust of donors. In most models of management and governance, shareholders vote for the board of directors, which in turn hires senior management.
Management operates through five basic functions. Planning involves deciding what needs to happen in the future and creating plans for action in advance. Organizing, also known as staffing, ensures that human and nonhuman resources are effectively allocated. Coordinating focuses on establishing structures to achieve organizational goals. Commanding, or leading, determines what must be done in a given situation and motivates people to take action. Finally, controlling involves monitoring progress against plans and making necessary adjustments.
Management trends:
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Remote workers. A study conducted by FlexJobs at the end of 2017 revealed that approximately 3.9 million workers in the United States worked remotely at least half of the time.
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Video marketing. Over 55% of people watch at least one marketing video daily, making it the most effective advertising method in terms of return on investment.
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Rising wages. As the cost of living and healthcare expenses rise, wages are increasing to keep pace. Employers must adjust compensation plans to attract and retain talent.
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Artificial intelligence (AI). AI is increasingly used to enhance customer experiences. Many call centers now incorporate automated answering services capable of resolving most customer inquiries.
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Team brand ambassadors. Influencer marketing continues to grow, but some managers are leveraging employees as brand ambassadors to promote their products and services.
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Customer-focused organizations. With a variety of analytical tools available, companies can better understand and meet customer needs.
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Outside consultants. Organizations hire consultants to improve team communication, collaboration, and organization.
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Work-life balance. Many companies are implementing strategies to improve employees' work-life balance, even during work hours.
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Continuing education. As technologies like AI and other advancements are introduced, employees must adapt. This provides opportunities for internal experts and external consultants to offer training.
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Training millennials. Millennials were projected to make up 46% of the U.S. workforce. As they take on managerial roles, companies must develop training strategies to prepare them for leadership responsibilities.
A management information system is a broad term encompassing several specialized systems:
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Executive information system (EIS): Used by senior management to make organization-wide decisions, providing high-level data with drill-down capabilities.
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Marketing information system (MkIS): Assists marketing teams in analyzing past and current campaigns to plan future strategies.
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Business intelligence system (BIS): Helps operations teams make informed decisions based on integrated data analysis.
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Customer relationship management system (CRM): Stores customer data, including sales history and contact information, aiding marketing, sales, and customer service teams.
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Sales force automation system (SFA): A CRM component that automates sales tasks such as contact management, lead tracking, and order management.
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Transaction processing system (TPS): Manages transactions like sales and related details.
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Knowledge management system (KMS): Used by customer service teams to address questions and troubleshoot problems.
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Financial accounting system (FAS): Tracks financial transactions such as accounts payable and receivable.
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Human resource management system (HRMS): Manages employee performance records and payroll data.
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Supply chain management system (SCM): Tracks the flow of resources and materials from procurement to product shipment.
Using an MIS can significantly enhance a company's performance. Organizations that do not adopt MIS risk falling behind.
Key advantages of effective MIS usage include providing management with a comprehensive overview of operations and enabling managers to receive feedback on their performance. It helps organizations maximize returns on investments by identifying successful initiatives and allows managers to compare actual results with planned outcomes, highlighting strengths and weaknesses. Additionally, MIS facilitates workflow improvements, better aligning business processes with customer needs. It also decentralizes decision-making, empowering employees who are closer to the source of knowledge and expertise.
Recent Developments in MIS:
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PC-based MIS. Small businesses now have access to powerful software once exclusive to large enterprises.
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Application and management service providers. Companies can rent software packages and system management services, scaling as their needs evolve.
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Data security. With the rise of data breaches, ensuring robust security has become a critical priority.
