The Human Side of Management and Leadership
Organization management and leadership are fundamental in ensuring the success of any business. Most organizations are facing the challenge of identifying the appropriate level for explaining each critical business function. Senior executives must focus on the business unit expectations to prioritize some actions for the benefits of the organization. Organizational effectiveness can only occur when the management aligns its human resources to the business systems. This study will focus on identifying the critical business functions, as well as looking at how these functions can interact to bring organizational effectiveness. This study will also explain on the essence of integrating individuals with the organizational systems to achieve the same.
Critical Business Functions
Critical business functions assist the management in achieving the organization’s goals through the application of business processes. A business process combines several business functions to support its strategy. The following are critical business functions that ensure effectiveness in the business operations:
- The financial workings are critical in the management of a business. They assist in tracking what the company has received and what has been paid. In addition, they record what the company owes to other individuals or institutions. Financial function interacts with the human resource, marketing, and operations, to ensure that business goals are attained effectively.
- Human resource (HR) as a business function enables the company to fulfill numerous roles through allocation of responsibilities. Employees consult the HR on issues concerning their wages and security of their jobs. The well-being of other employees can be sought from the HR. The HR works together with the finance, and IT, to ensure that workers are satisfied while at work.
- IT (information technology) has become critical in every business since it is the engine of all the other functions. Starting from communication, sending of cash, automated management systems, human resources, and data storage, the IT department serves every department in the company. The IT undertakes the responsibility of recovering and continuous operation of the business even after a disaster. IT is critical in ensuring integrity, confidentiality, security, as well as availability of information concerning (Snedaker & Rima, 2014).
- Marketing and sales assist the company in creating the demand for its products, as well as generating revenue for the company. Marketing enhances company’s product knowledge in an attempt to lure customers to purchase the company’s goods and services. Marketing and sales depend on human resources, finance, and IT functions to support the company’s ability to achieve its goals.
- The company’s operations allow it to earn its revenue. This occurs when the company is in the service industry, where services, such as software development, market research are sold to generate income. Operations functions work together with other functions to assist the company in attaining its business goals.
Achieving Organizational Effectiveness
Organizational effectiveness is vital for the success of any business. Integration involves harmonizing plans, processes, actions, resource allocations, and investigations to enhance achievement of organizational goals (Blazey, 2009). Integration of individuals with the organizational systems can assist in innovation of new ideas that can be applied to achieve organizational effectiveness. Innovation attracts creativity that influences the business structure. Innovation also enhances changes that lead to high productivity among employees. Customer’s satisfaction comes from employees’ ability to understand customer needs and acting according to the company’s system directives. Integrating individuals into organizational systems increases operational efficiency and product quality.
An effective leadership system recognizes the contribution of every employee, which is essential for employee motivation and specialization of responsibilities. Such system encourages teamwork since it promotes the company’s values and assists in achieving the company’s vision. The pursuit of the company’s goals cannot be consistent if the leadership system does not support organizational structures that allow feedbacks, self-examination, and employees’ initiatives. Organizational systems are built according to the organizational culture and value, hence enabling the company to achieve its mission. Culture dictates how employees ought to behave in the organizational environment in an attempt to attain the business strategy.
Ethical and Social Responsibilities That Confront A Business
Strong ethical business practices form the hallmark of a successful business. For a company to achieve strong business practices, effective leaders must head it. Businesses that carry their operations in an ethical manner convey their values and beliefs to their employees, as well as their customers. However, poor management that results from the company brands may hamper creation of values. If customers do not believe on the company’s brands, they will make a few purchases, leading to low revenue. Having proper business ethics allows the company to remain competitive without incurring extra costs on promotions.
Companies are compelled to build their ethics on the employees’ expectations to avoid damaging their reputations. How an employee deals with customers is crucial, as customers can spread information about poor treatment to other potential customers, thus, tarnishing the reputation of the business. Companies have social responsibilities of treating their employees fairly; supporting the surrounding community through funding community projects; as well as being transparent in all their operations. Due to the size of the business, many companies tend to overlook ethics and end up harming their reputations.
Blazey, M. L. (2009). Insights to performance excellence, 2009-2010: An inside look at the 2009-2010 Baldrige Award criteria. Milwaukee: Asq Quality Press.
Snedaker, S., & Rima, C. (2014). Business continuity and disaster recovery planning for IT professionals. Waltham, MA: Syngress.