SWIN BUR * NE * SWINBURNE UNIVERSITY OF TECHNOLOGY Alliance with FP T Education MGT10001 INTRODUCTION TO MANAGEMENT ASSESSMENT 3 INDIVIDUAL ESSAY NGUYEN NGOC XUAN NGHI Student ID: 103803684 - SWS00137 November 11, 2021.
Management is the art of optimizing efficiency, which is also considered a fundamental component to the success of any business. Proper management ensures that all aspects of the company work together to achieve a single objective without becoming disorganized. Numerous managerial concepts and techniques are being utilized in business; however, not all of them can be implemented efficiently and effectively to benefit both the organizations and their employees. This assessment will highlight four managerial concepts from three core management functions namely management by objectives (Planning), group decision making (Planning), geographic departmentalization (Organising), and transformational leadership (Leading); real-world organizational examples will also be examined to offer a comprehensive understanding of how these techniques are practiced, as well as to demonstrate the way they can enhance employee engagement and business performance. Management by objectives (MBO), also known as management by planning (MBP), is a strategic management approach that clearly identifies objectives that both management and employees agree on, intending to develop the overall performance of an organization (Hayes, 2021). The term "Management by objectives" was first outlined by Peter Drucker in his 1954 book entitled The Practice of Management (Lumen n.d). MBO practice varies, but in essence, it is a procedure in which managers and their subordinates collaborate to jointly set precise objectives to be accomplished within a specified time frame. The efficiency of the MBO method is believed to be aided by the following four primary components: (1) setting specific goals; (2) developing action plans; (3) periodic reviews; and (4) performance appraisal (Prajapati n.d). The wider premise underlying MBO is to ensure that everyone in the organization is aware of their on-the-job roles and responsibilities in accomplishing objectives that will aid in the achievement of the business's goals. While allocating tailored duties to each individual, the firm also prioritizes personal growth and development over negativity for failing to meet goals, which can eventually develop a sense of loyalty of employees to the organization (Hayes 2019). MBO gained a huge boost when Hewlett- Packard, a famous American multinational information technology company, included it as a key component of The HP Way. MBO aided strategic planning by connecting the surveillance system at all levels across the HP organization. The company's senior management is involved in the performance management system and presents the performance review process to employees to adjust their goals. Even personnel at the bottom management level are encouraged to engage in the decision-making process by providing their ideas for effectively achieving objectives. This approach is repeated every six months across all departments and has greatly contributed to the tremendous growth of the company (UKEssays 2015). The next managerial concept to be analyzed is group decision making, which is a sort of participatory process where a group of multiple individuals collaborates to analyze issues or circumstances, consider and