About the management Essay Example

  • Category:
    Management
  • Document type:
    Essay
  • Level:
    Undergraduate
  • Page:
    3
  • Words:
    1676

3Management

Four Areas of Management Important For Contemporary Organizations

Introduction

Managing is one of the most important aspects of a firm’s operations. Effective and efficient management allows companies to come up with distinctive aims and goals that they need to accomplish overall set objectives. As the overall society continues to rely on group efforts through organizations, the task related to management has increased in importance as well as complexity. Nowadays, unlike in the few past decades, there have been numerous areas of management that has gained momentum in order to allow an organization endure the challenges that emanate from the ever-changing operational environment. Some of these areas have continued to be emphasized in comparison to others because they offer management with the capacity to ensure future survival and positive performance necessary for growth and development. The focus of this paper is on examining four areas of management; human resource management, strategic management, information technology management as well as financial management, and their relevance in the contemporary organization’s day-to-day operations. The first section of the discussion will present a commentary on human resource management and later on, the information technology management. Moving forward, the paper puts a discussion on financial management and lastly, strategic management before providing an all-inclusive overall conclusion of the commentary as a whole.

The human resource management is a key area of overall management. It provides a coherent and clear way for organizations to improve on their most-valued assets; mostly personnel or staff (Burma, 2014). In today’s organizations, the aspect of human resource management is deemed to be more important because it fosters a significant role in such important elements as staffing, training and development, as well as commensuration in order to allow these organizations perform at their immediate maximum capacities and in a highly fulfilling way (Rose & Kumar, 2006). Of particular interest, in the current global business operations, the aspect of human resource management is increasingly deemed to be a fundamental contemporary formulation that is necessary for the reshaping of employment relations and a key tool that has been formulated to replace conventional management practices like Personnel Management as well as overall Industrial Relations (Burma, 2014). Just like in the past decades, human resource management in the contemporary organization remains to be one of the prominent elements especially because it fosters competitiveness and, also promotes overall managerial efficiency (Burma, 2014). Apart from providing a significant linkage between people and performance, human resource management(HRM) sets to specify stringent human resource practices like recruitment and selection, formulate human resource-based policies that oversee some development of specific practices and, also dictates HR philosophies that are needed for implementing values that inform a firm’s immediate practices and policies. Following this lines of reasoning, HRM is therefore important to contemporary organizations just like in the traditional ones because it provides a wide array of scope that relates to personnel, welfare and industrial relations aspects to meet overall set objectives.

The current or rather contemporary organization operates under a very stringent Information Society platform (Chaturvedi, 2005). The continuous change witnessed within the information and communication technologies has prompted organizations to formulate the IT management level in order to come up with effective decisions. Notably, information technology has ensured to facilitate intensive levels of important elements like globalization, fragmentation of business processess and, also fostered demand that is needed for integration purposes (Chaturvedi, 2005). The existing competiveness structure has indeed changed and enhanced over time and it continues to be influenced by aspects related to ICT. In fact, the impact of the internet on competition, which is an integral part of IT, has significantly eliminated the entry and exit barriers to possible product markets (Vlăşceanu, 2013). Consequently, with information and technologies management in place, organizations have now been able to oversee resources related to time and information as opposed to traditional firms where only people, equipment and money resources were supervised (Carneiro, 2015). In contemporary organizations, management of time is deemed to be important because it is a non-conservative resource that can never be restored (Vlăşceanu, 2013). Time management through information technologies is critical in enhancing the overall speed of the entire productivity system. On the other hand, information is the only resource that can be used for purposes of integration with all other resources since the management of other resources requires managers to access information about them in a timely manner (Vlăşceanu, 2013). Accordingly, the information and technologies management facilitates the provision of databases that act as propellers to the entire driving force or rather information system of the organization as a whole (Vlăşceanu, 2013). Basically, organizations are sustained by elements related to database and information system management.

Research indicates that financial management is a critical component of modern organization’s general management (Wong, Ormiston, & Tetlock, 2011). Given the fact that modern organizations take to measuring all managerial decisions on financial terms, financial management becomes one of the most fundamental element of overall composition. It is however important to note that the size and the relevance of financial management highly depends on the overall organization operational size (Weichieh & Tsang, 2015). While for small and medium-sized organizations financial management might play an insignificant role, for large organizations; it is necessary for providing distinctive solutions in relation to matters related to investment decision, financing prospect as well as dividend-related issues (Koleda & Oganisjana, 2015). It is critical to note that the financial management should provide a financial perspective of a given strategy that is deemed to be necessary in availing perfect solution to goals of a firm’s overall shareholders; that is, market value and share value maximization strategy (Weichieh & Tsang, 2015). Given that the access to funds has been increased over the years, financial management should be embraced in today’s organizations in order to guarantee future survival and evaluation of market performances (Weichieh & Tsang, 2015).

In today’s operational environment, each and every organization will always be focusing on the best way to execute a given strategy and internal action (Paraschivescu & Căprioară, 2014). In most cases, these strategic plans are directly presented by the sitting strategic management team. Strategic management team possesses relevant knowledge and skills needed for execution of certain and workable courses of action after a thorough analysis (Paraschivescu & Căprioară, 2014). Strategic actions are important in today’s organizations because rivals are always utilizing enough resources to counter possible competition and increase their market shares (Carneiro, 2015). An organization that fails to update on its underlying marketing strategies is exposed to the risk of losing its competitive advantage to the most-immediate competitor (Gagne, 2002). Of particular importance, the benefits of a first-rate strategic thinking and an intensively committed strategic management team and processess provides imminent guidance to the overall management hierarchy in order to make clear set goals and objectives. It further fosters the provision of necessary information related to the immediate contribution an organization makes in order to recognize and respond to imminent market changes, new market opportunities as well as possible threats to growth and development (Gagne, 2002). High-performing organizations embrace strategic management for the purpose of ensuring that they garner enough knowledge and global prowess needed for making deliberate decisions that will positively impact on their target markets; they try to formulate and lead as opposed to just reacting and defending actions put forward. Thus, it can be noted that the overall function of strategic management in today’s environment rests with the formulation of an action plan that will positively identify and attract consumers, generate sustainable competitive advantage, improve on existing market shares as well as ensure to put competitive pressure on possible rivals by pushing performance to highly-elevated positions (Greenfield & Terry, 1995).

In conclusion, the paper has successfully noted that human resource, strategic; information technologies and financial management are the key four areas of management needed for operating a successful organization in today’s business environment. Financial management is important because almost all of decisions are made in relation to financial terms. Strategic management is deemed to be important because it fosters the formulation and implementation of action plans needed for governing policies related to competition, competitive advantage as well as in improving overall market share. Notably, human resource management is still important in today’s organizations just like in the past since it integrates aspects related to people, welfare and industrial relations that were previously handled different. Information technologies is deemed to be important because it foster easier and effective management of resources like time and information that continue to gain momentum in an organization’s overall productivity system.

References List

Burma, Z, A 2014, Human Resource Management and Its Importance for Today’s Organizations, International Journal of Education and Social Science, 1, 2, pp.85-94

Chaturvedi, S 2005, ‘Information Technology and Management Linkages’, Journal of Management Research (09725814), 5, 2, pp. 72-79

Carneiro, M 2015, ‘Knowledge: A Strategic Resource for Organizations’, PM Network, pp. 3-6

Greenfield, C, & Terry, M 1995, ‘Work/Life: From A Set of Programs to A Strategic Way of Management’, Employment Relations Today (Wiley), 22, 3, pp. 67-81

Gagne, K 2002, ‘Using Performance Management to Support an Organization’s Strategic Business Plan’, Employment Relations Today (Wiley), 28, 4, pp. 53-59

Koleda, N, & Oganisjana, K 2015, ‘Challenges In Learning for Company’s Financial Viability Assessment and Management’, Business: Theory & Practice, 16, 2, pp. 195-204

Paraschivescu, A, & Căprioară, F 2014, ‘Strategic Quality Management’, Economy Transdisciplinarity Cognition, 17, 1, pp. 19-27

Rose, R. C. & Kumar, N 2006, The influence of organizational and human resource management strategies on performance, Performance Improvement, 45,4, pp.18-24.

Vlăşceanu, C 2013, ‘Innovation Management — Solution in the Context of the Contemporary Society Challenges’, Review of International Comparative Management / Revista De Management Comparat International, 14, 5, pp. 774-782

Weichieh, S, & Tsang, E 2015, ‘Product Diversification and Financial Performance: The Moderating Role of Secondary Stakeholders’, Academy Of Management Journal, 58, 4, pp. 1128-1148

Wong, E. M., Ormiston, M. E., & Tetlock, P. E. 2011. The effects of top management team integrative complexity and decentralized decision making on corporate social performance. Academy of Management Journal, 54, pp.1207–1228.