Discuss the similarities and dissimilarities involved in managing these three types of organizations, particularly considering the four aspects of management. Do you think a manager who is effective in one type of organization can be effective in another type of organization? How can universities prepare students to be effective managers across different types of organizations?
We have discussed that management is useful in all types of organizations. Consider three types: (i) a Fortune 500 company, (ii) a social enterprise, and, (iii) a technology startup.
Discuss the similarities and dissimilarities involved in managing these three types of organizations, particularly considering the four aspects of management. Do you think a manager who is effective in one type of organization can be effective in another type of organization? How can universities prepare students to be effective managers across different types of organizations?
Management is the process consisting of actions by which the organization's resources are used to achieve the planned objectives. The four main aspects of management are as follows:
- Planning
- Organizing
- Leading or delegating
- Controlling
Every type of organization can function efficiently and achieve its purpose effectively only through proper management. Therefore, the four aspects of management are adopted in a Fortune 500 company, a social enterprise, and a technology startup. Let us see to what extent these aspects are similar and how they differ among the three types of entities listed here.
Planning: The planning process for the three types of organizations is similar to the extent of determining the strategic objectives, spelling out the organizational strengths and environmental challenges, and providing the broad roadmap to achieve the strategy. In a Fortune 500 company and in a social enterprise, it is often an entrenched process of responding to new opportunities and setting new objectives. In a technology startup, the approach is to adhere to a planned strategy until the business unlocks its full value.
Organizing: This aspect consists of determining the organizational structure and the interrelationships related to control, reporting, and communication. In a Fortune 500 company, this aspect is determined by the expected line of business or opportunity and does not change so rapidly as in a technology startup. A social enterprise works with a fixed organizational structure.
Leading or delegating: Leading the organizational activities consists of delegating the responsibilities according to the organizational structure and providing the support that subordinates might need in carrying out their functions. It is more well defined in a Fortune 500 company and a social enterprise, but is somewhat less rigid in a technology startup as it relies more on innovation management rather than functional leadership.
Controlling: As a monitoring and feedback function, it is elaborated in the form of budgets, reviews, and plans in a Fortune 500 company and in a social enterprise. The objective of cost reduction and revenue increase are always at the core of the control function. A startup works on the principle of milestone evaluation and the control function is geared toward this approach.
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