Effective Corporate Management: Principles and Strategies

Theme 3: Corporate Management Principles

Management of the company involves providing instructions and establishing appropriate criteria to achieve organizational objectives.

Process Management

• Plan: Define all goals.
• Organize: Determine how to execute tasks.
• Handle: Execute the organized plan.
• Control: Verify that results align with the planned objectives.

Stages in the Planning Process

1. Situation analysis.
2. Setting goals.
3. Creating alternatives.
4. Evaluation of alternatives.
5. Choosing an alternative.
6. Control and determination of deviations.

Organization

This function designs a structure where tasks are assigned to each person within the company, defining their authority and responsibilities.

Communication Channels

• Upward Communication: Vertical communication originating from workers and ending with management.
• Downward Communication: Vertical communication originating from management and ending with workers.
• Horizontal Communication: Communication between individuals at the same hierarchical level across different departments, essential for company unity.

Teamwork

Collaborative efforts to bring people together to complete a joint project.

Maslow's Hierarchy of Needs

Human needs are met progressively across five levels: Self-actualization, Esteem, Social, Security, and Physiological.

Management Levels

The Management Pyramid:

• High Management: Develops long-term plans and oversees company operations.
• Intermediate Management: Manages and controls the execution of general planning.
• Operational Management: Direct responsibility for achieving plans and assigning tasks to workers.

Douglas McGregor's Theory

Theory X (Authoritarian Leadership)

• Employees work the minimum possible.
• Lack of ambition.
• Prefer to be directed.
• Resistant to change.

Theory Y (Liberal and Democratic)

• Employees are motivated to work.
• Possess ambition and creativity.
• Seek responsibilities.

Control Function

Verifying that operations align with planned goals.

Stages of Control

1. Setting Standards: Defining production amounts and timeframes.
2. Measuring Activities: Tracking performance.
3. Correcting Deviations: Adjusting processes to meet standards.

Control Techniques: The Audit

Verifying accounting and operational integrity:

• Internal vs. External
• Financial vs. Operational
• Eco-audit (Environmental)