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In this module I learned about the basic management functions Planning Decision Making, Organizing, Leading, and Controlling.

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Describe what management is.

Management is everywhere. Any time people work to achieve a goal, they are engaging in management. At least as far back as the building of pyramids in ancient Egypt or Mesoamerica, people have used principles of management to achieve goals. Today, organizations of all types-social, political, and economic-use management techniques to plan and organize their activities.

Two Aspects of Management

When people talk about management, they may be referring to very different aspects. They may be talking about the people who are the managers, especially those people in strategic positions who make important decisions for the organization, such as the executive officers, president, or general manager. Or, they may be referring to the activities and functions of an organization to achieve organizational goals.

Management As People

The people with the responsibility and authority to determine the overall direction of the organization are often referred to as the management of the organization. Management has the authority to decide what the goals of the organization should be and how those goals will be achieved. Individuals in upper management must be aware of conditions in the organization's environment and have knowledge of the total resources of the organization. They put these two together to determine the most promising path for the organization to pursue.

Let's look at a small-scale illustration. Imagine a family considering their vacation plans. They have a goal: to get away from home and work to spend an enjoyable week or two together. To achieve their goal they must first make a number of related decisions such as these: Where will we go? How will we get there? Where will we stay? What will we do while we are there?

These decisions cannot be made without considering the resources they have available for the trip. Perhaps they have saved money for the trip or they decide to take out a small loan. Maybe they will rent an RV and camping equipment or buy into a timeshare. They might be experienced backpackers or they might enjoy just chilling at the beach. The family's decision makers must plan on how to use their resources-both material resources, such as money and equipment, and intellectual resources, such as knowledge and experience-to create a successful vacation. But deciding what they are going to do is not enough; they need to actually do things to get ready for their trip. They may need to make reservations, schedule time off work, get their car serviced, or buy a new camera and appropriate clothing and gear. Finally, if they have made all the right decisions and all the necessary arrangements, they can go on their trip and have a great time.

Management As Process

As we saw in the earlier example, decision making and planning are required before actions are taken. Defining the goals of the organization, planning the actions to meet the goals, and organizing the resources needed to carry out the actions are all vital functions of management. Planning and organizing ensure that everyone in the organization is working together toward meeting goals.

Organizations, like families, also have goals. In large organizations, the goals are usually formally defined. A corporate goal may be to increase market share by 12 percent in two years or to provide 250 free meals per week to a local shelter. In small organizations or family businesses, the goals may be more general and informal, such as to provide a unique dining experience to patrons or to be able to retire comfortably in five years.

All organizations-businesses, the military, government departments, nonprofit service providers, or public school systems-require management because they all are trying to achieve goals. And although it may seem straightforward, the management process is complex. In most cases, management functions include:

applying and distributing organizational resources effectively

acquiring new resources when necessary

analyzing and adapting to the ever-changing environment in which the organization operates

complying with legal, ethical, and social responsibilities of the community

developing relationships with and among people to execute the strategies and plans

Management Defined

Perhaps the most critical of all the management processes listed earlier is creating the systems and processes that allow people to work effectively toward organizational goals. In fact, many people define management as the art of getting things done through people. Although technology and data are increasingly important in modern organizations, people continue to be a primary focus of management. Putting this all together, we can propose a definition of management: management is the process of planning, organizing, leading, and controlling people in the organization to effectively use resources to meet organizational goals.

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Describe what management is. Management is everywhere. Any time people work to achieve a goal, they are engaging in management. At least as far back as the building of pyramids in ancient Egypt or Mesoamerica, people have used principles of management to achieve goals.

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Module 1

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Being involved within your community shows an excellent engagement in supporting, volunteering, and ethical-oriented practices.

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Corporate social responsibility, or CSR, is the act of incorporating environmental and social concerns into a company's planning and operations. These programs center around the idea that businesses can make the world a better place, or at the very least, they can reduce their negative social and environmental footprint on the world.

Here's what you should know about CSR programs, and how they can benefit both businesses and their shareholders.

What Is Corporate Social Responsibility?

Corporate social responsibility can refer to any effort to improve a company's environmental and social impact. Companies can deploy CSR efforts in a piecemeal way, or as part of a broader program. Increasingly, companies are creating comprehensive CSR programs that engage every business unit and have dedicated staff and resources.

CSR programs vary in scope, but a few common initiatives include:

Direct giving to non-profit groups, such as a local food bank, often in conjunction with volunteer efforts by employees and donations from the company

Job training programs for the disabled, or other disenfranchised groups

Commitments to ensure diversity in the workforce across race, gender, and sexual orientation

A focus on reducing the company's environmental footprint through more efficient supply chains, recycling, reduced energy use, and other efforts

CSR programs can begin as a result of pressure from community members who want companies to be good neighbors. However, research from Harvard Business School shows that once in place, these programs often receive broad support from within the company.﻿﻿ CSR programs may start as the result of external pressure, but internal pressure often contributes to the continuation of these programs.

One report found that 86% of S&P 500 companies published reports outlining their efforts related to corporate social responsibility and sustainability in 2018.﻿﻿ This number increased from 72% in 2013 and less than 20% in 2011.

How Corporate Social Responsibility Works

One could argue that CSR programs should exist for their own sake, but the durability and support of these programs can improve if companies see direct benefits. There's evidence that companies with robust CSR programs benefit from better public relations, happier customers, and improved company profits that will satisfy stakeholders.

In some cases, the positive financial impact is clear. For example, a shift toward renewable energy sources like solar panels at corporate campuses might result in lower electricity costs over time.

A report by Babson College reviewed hundreds of CSR program studies and found that they can have a strong positive impact on market value and overall brand reputation, while also reducing risk for the company.﻿﻿ The report's findings included the potential of CSR programs to:

Increase market value by up to 6%

Reduce systemic risk by up to 4%

Reduce the cost of debt by 40% or more

Increase price premium by up to 20%

Reduce staff turnover rate by up to 50%

CSR is similar to another concept known as environmental, social, and corporate governance (ESG) principals. The primary difference is that CSR is an internal function, while ESG is an external one.

CSR programs are internally proposed and executed. It's up to those within the company to measure the success of these programs, decide which ones to continue, and rework the ones that aren't achieving the desired results. ESG, on the other hand, is a measurement that analysts can use to objectively compare the effectiveness of different corporate efforts to address environmental, social, and corporate governance issues.

Success of programs internally measured

Success of programs externally measured

Used by businesses to improve their impact on society

Used by investment groups to guide investment decisions

Many investment groups evaluate companies based on their commitment to environmental, social, and governance (ESG) criteria. Institutional investors and mutual fund companies may outline how ESG principles are integrated into their investment philosophy (often with positive results) in their annual reports.

The framework for the ESG reporting stems from the Global Reporting Initiative, an independent standards organization that has sought to standardize corporate sustainability reporting since the late '90s.﻿﻿ In 2006, the United Nations launched the Principles for Responsible Investment, a voluntary program that institutional investors can use to incorporate ESG values into their decision-making process.﻿﻿

More than 3,000 investors and investor groups have signed onto the Principles for Responsible Investment, promising to stand by these six principles:

1. We will incorporate ESG issues into investment analysis and decision-making processes.

2. We will be active owners and incorporate ESG issues into our ownership policies and practices.

3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.

4. We will promote acceptance and implementation of the Principles within the investment industry.

5. We will work together to enhance our effectiveness in implementing the Principles.

6. We will each report on our activities and progress toward implementing the Principles.

Individual investors may want their investments to reflect their values. These investors can buy into mutual funds and exchange-traded funds (ETFs) that are grouped according to their commitment to sustainability and corporate social responsibility. Examples of this include the iShares MSCI KLD 400 Social ETF( DSI) and the SPDR SSGA Gender Diversity Index Fund ( SHE).

Key Takeaways

A company practices corporate social responsibility (CSR) when it seeks to improve its environmental and societal impact.

Even for those unconcerned with environmental or social issues, there is ample evidence that a commitment to CSR can have a positive effect on a company's finances.

CSR is similar to ESG, which is a process by which investors make decisions based in part upon CSR programs and a company's societal impact.

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What Is Corporate Social Responsibility?

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Corporate social responsibility, or CSR, is the act of incorporating environmental and social concerns into a company's planning and operations. These programs center around the idea that businesses can make the world a better place, or at the very least, they can reduce their negative social and environmental footprint on the world.

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Globalization is expanding revenue opportunities and diversifying a company when operating in multiple countries. It allows a company to achieve success in different economies.

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International and Global Management is concerned with the techniques and practices that are involved in directing and controlling international organisations. Thus, it covers all the issues that arise as a consequence of international and global strategies. In practice, strategy and management at the senior level of a company are inter-related. That is why we have a section here on the topic.

For example, the US car company Ford Motors has a joint venture in the People's Republic of China with the Chinese company Chang'An. This requires careful management at a senior level both for the US company and the Chinese company to ensure that the local joint venture continues to run effectively.

International and Global Management can usefully be considered from the perspective of the different functions of the organisation: marketing, operations (often called production), human resources, finance and other support activities like research and development and legal issues. From an international perspective, each of these functional areas will have more complex issues than arise in any one country. The purpose of this section is to identify at least some of these additional issues.

In addition to the functional perspectives, international and global management has an additional dimension. Senior managers will need to have discussions at various times with the country within which they are operating and, perhaps on occasions, with other international bodies like the World Bank or the United Nations. Other world institutions act primarily at country level, like the International Monetary Fund which is located in Washington DC, USA. The IMF, as it is usually known, governs international currency and other intergovernmental financial arrangements.

In any event, it is important that global managers understand these and many other world institutions because they will have an impact on their decision making - perhaps directly through negotation and certainly indirectly through decisions taken by world bodies.

For some managers, the impact of either world institutions or individual country governments may be more direct. There may be a need to negotiate directly with an individual governmental organisation - perhaps over a tax issue, perhaps over a proposed acquisition. Bargaining between companies and countries then becomes a major issue.

For these reasons, this section of the website has a number of themes:

How do we manage international and global companies? Why do companies go outside their home countries?

How does world trade impact on multinationals and smaller companies? Waht is the political and economic background to world trade?

What are the institutions that govern world trade? What are the underpinning economic theories?

Global management: the operations perspective

Cross functional issues and resource issues in international companies: human resources, financial issues and some legal matters

The internal organisation structure and external relationships of large and small international companies

Global management: knowledge, technology and innovation issues

International companies and the nation state: the balance of power

International companies and the nation state: the risks involved and the methods of handling them

Do you want a FREE download of the Global Management powerpoint presentations below?

You can do this at the SlideShare website here

How do we manage international and global companies?

How does world trade impact on multinationals and smaller companies?

What are the institutions that govern world trade? What are the underpinning economic theories?

Global Management: the operations (production) perspective

Cross functional issues and resources issues in international companies

The internal organisation structure and the external relationships of large and small international companies

Global Management: knowledge, technology and innovation issues

International companies and the nation state: the balance of power

International companies and the nation state: the risks involved and the methods of handling them

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International and Global Management is concerned with the techniques and practices that are involved in directing and controlling international organisations. Thus, it covers all the issues that arise as a consequence of international and global strategies. In practice, strategy and management at the senior level of a company are inter-related.

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The importance of organizational structure is to includes rules, roles, and responsibilities from each individual between the top and bottom level management to achieve the organization's goals.

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The organizational structure of, for example, a company is a system used to define its hierarchy. Each employee's position is identified, including their function and who they report to within the firm. It is the way in which a company or organization is organized, including the types of relationships that exist between the directors, managers and employees.

The organizational structure, which may refer to the hierarchy of not just a business, but also any entity such as a charity, government department, agency or education establishment, is developed to establish how an entity operates and helps the organization in achieving its goals and objectives.

The organizational structure outlines how activities including task allocation, supervision and coordination are directed towards its individual aims. It is also a 'viewing glass' or perspective through which employees may see their organization and its environment.
In this type of structure the organization is divided into different functional work activities - departments. A level of top managers usually oversees the work carried out by employees in each functional area.
Organizational structure helps firm meet goals

Put simply, it refers to how an organization arranges its staff and jobs so that its work can be performed and its objectives and goals met.

There are many different ways in which a company or organization may be structured, depending on why it exists and what its objectives are.

For the rest of this article, I shall use the terms 'company', 'business' or 'firm' when referring to an organization. Unless otherwise stated, they could also refer to any other type of organization.

In a small company, face-to-face communication is common and a formal structure is probably not required. However, in larger corporations, decisions need to be made regarding the delegations of several tasks. So procedures are set up that assign tasks and responsibilities for a number of functions. It is these decisions that determine the company's organizational structure.

This type of organization divides the functional areas into divisions - each one with its own resources in order to operate independently. Divisions may be defined according to products/services, geographical area or any other measurement.

In any medium- or large-sized businesses, employees' job descriptions are typically defined by what they do, their immediate supervisors (who they report to), and who reports to them if they are managers or directors.

Eventually, these descriptions are assigned to the post within the company rather than specific people.

Organizational chart illustrates the structure

How these different positions are inter-related is often illustrated graphically in an organizational chart. The features of any organizational structure depend on many factors including:
Employees are placed according to their function and the product. With this structure you get the best of both the worlds of divisional and functional structures. The business uses teams to complete tasks. Teams are formed according to the functions of each member plus the product he or she is involved in.

how big it is

how many people work in it

its revenue

where it is located (could be in several locations)

what it sells and how many different markets it is active in.

Types of organizational structures

There are many kinds: vertical & tall with many tiers, or flat with just a couple of levels separating top from bottom. Below are the four most common:

Functional: also known as a bureaucratic organizational structure. It divides the company based on specialty, with a marketing department customer service department, sales department, HR department, etc.

In a functional structure, each employee is dedicated to a single function. These clearly-defined job descriptions and expectations reduce confusion. One drawback with this type is that it makes it harder to facilitate inter-departmental communications.

Dan Rasky: Start Ups' Organizational Structure https://t.co/7uQfYTpiRR

- S Rodger Bock (@SRodgerBock) May 1, 2016

Divisional: this type of organization structures leadership according to different projects or products. For example, while International Consolidated Airlines Group, S.A. (IAG) is the company, there are four different airlines underneath - British Airways, Iberia, Vueling and IAG Cargo. Each one operates as an individual company, but they are ultimately under IAG.

Matrix: in this kind of organization the workers have several different bosses and reporting lines. They report to, for example, a divisional manager, and also have project managers for certain project.

A matrix organization is more likely to experience confusion and complications, especially when staff members have to carry out conflicting tasks.

Jacob Morgan says the following regarding flatarchies in thefutureorganization.com: "They can be more hierarchical and then have ad-hoc teams for flat structures or they can have flat structures and form ad-hoc teams that are more structured in nature. Organizations with this type of structure are very dynamic in nature and can be thought of a bit more like an amoeba without a constant structure." (Image: thefutureorganization.com)

Flatarchy: more common in new startups and smaller companies. These types of businesses have a bit of vertical hierarchy but also flat structures, i.e. they may be more hierarchical and then have ad-hoc teams for flat structures, or vice-versa.

Flatarchy structures are very dynamic in nature and are typically constantly evolving and changing.

ICAS (Institute of Chartered Accountants of Scotland) says the following about flatarchy:

"Odd name, but not such an odd concept. The flatarchy aims to combine the organisational strengths of the hierarchy with the innovative freedom of the flat structure. It's not so much an organisational structure as an ad-hoc way of working."

"For example, this method is favoured by many companies with in-house incubators or innovation teams. The overall business maintains a relatively traditional model, but teams of people are allowed to create flat spin-offs for specific projects. This leaves employees free to explore new ideas in a more fast-paced, open environment. Tech firms such as Google have used such a practice to great effect."

According to the Cambridge Dictionary, organizational structure is:

"The way in which a large company or organization is organized, for example, the types of relationships that exist between managers and employees."

Video - What is organizational structure?

This BusinessDictionary video walks you through the definition of organizational structure with easy-to-understand terms and examples.

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What is organizational structure? Definition and meaning

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The organizational structure of, for example, a company is a system used to define its hierarchy. Each employee's position is identified, including their function and who they report to within the firm. It is the way in which a company or organization is organized, including the types of relationships that exist between the directors, managers and employees.

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Managers monitor and control the desired outcomes by setting the standards it will take to achieve those goals.

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Controlling is the process of ensuring that actual activities conform to planned activities.

Controlling is more pervasive than planning.

Controlling determines what is being accomplished - that is, evaluating the performance and, if necessary, taking corrective measures so that the performance takes place according to plans.

Controlling can also be viewed as detecting and correcting significant variations in the results obtained from planned activities.

Importance of Controlling in Management

Undoubtedly, controlling also helps managers monitor environmental changes and the effects of these changes on the organizations' progress.

Coping with changes

Every modern organization has to cope with changes in the environment.

New products and technologies emerge, government regulations are too often amended or enacted, and competitors change their strategies.

Creating better quality

Modern industries follow total quality management (TQM) which has led to dramatic improvements in control. Under it, process flaws are spotted, and the process is purged of mistakes.

Employees are empowered to inspect and improve their work and this also helps change their attitudes and approaches to achieving effective control.

There are innumerable examples in which the TQM program had helped restore quality, decrease cost and increase the production of giant organizations that confronted threats of shutdowns owing to low quality, high cost and declining productivity.

Creating faster cycles

Control helps to speed up the cycles involved in creating and then delivering new products and services to customers.

But modern marketing managers must remember that today's customers expect not only speed but also customized products and services.

It is clear that the most successful companies try to personalize things and tailor them to individual needs. The most successfully target narrow customer niches with specific models.

Adding value

An organization that strives to survive through competition should be able to "add value" to products or services so that customers prefer them to those offered by the organization's rivals.

Very often this added value takes the form of above-average quality achieved through exacting control procedures.

Facilitating delegation and teamwork

Modern participative management has changed the nature of the control process. Under the traditional system, the manager would specify both the standards for performance and the methods for achieving them.

Under a new participative system, managers communicate the standards, but then let employees, either as individuals or as teams, use their creativity to decide how to solve certain work problems.

The control process, then, lets the manager monitor the employees' progress without hampering employees' creativity or involvement with the work.

Control as a Feed-back System

Most managers exercise control through information feedback, which shows deviations from standards and initiates changes.

In other words, feedback information helps compare performance with a standard and to initiate corrective action.

But then, for making necessary corrections, they must develop a program for corrective action and implement this program to arrive at the performance desired.

Control Techniques

Managers use a large number of tools and techniques for effective controlling.

Therefore,

We need to discuss specific techniques for managing the control process.

First, we'll discuss budgetary control. And then we shall deal with other control techniques and methods.

Budgetary Control

Budgeting is the formulation of plans for a given future period in numerical terms.

Organizations may establish budgets for units, departments, divisions, or the whole organization. The usual period for a budget is one year and is generally expressed in financial terms.

Budgets are the foundation of most control systems.

They provide yardsticks for measuring performance and facilitate comparisons across divisions, between levels in the organization, and from one time to another.

Types of Budgets: Most organizations use some different kinds of budgets:

Non-budgetary Control Devices

The following are some control devices that are not related to the budget.

Operational audit/internal audit

It is the regular and independent appraisal of the accounting, financial, and other operations of an enterprise by a staff of internal auditors.

In its most usual form, operational auditing includes auditing of accounts, appraisal of operations in general and weighing actual results against planned results.

Operational auditors, thus, assures that accounts reflect the fact, appraise procedures, policies, quality of management, the effectiveness of methods and other phases of operations.

Milestone budgeting

Used by an increasing number of companies in recent years in controlling engineering and development, milestone budgeting breaks a project down into controllable pieces and then carefully follows them.

In this approach to control, "milestones" are defined as identifiable segments. When a given segment is accomplished, its cost or other results can be determined.

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What is Controlling? Importance of Controlling in Management

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Controlling helps managers monitor the effectiveness of their planning, organizing, and leading activities; monitor environmental changes and effects of these changes on the organizations' progress. Controlling also is detecting and correcting significant variations in the results obtained from planned activities

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Planning is the process where managers make various decisions as they set goals to predict future outcomes. It sets realistic, attainable goals for all to achieve.

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In everyday life, all of us make and execute certain plans to achieve our goals. For example, before going on a trip, we make a plan i.e. where and when to go, how to reach the destination, the duration of the trip, where to stay and luggage to carry, etc. All these tasks require creating an effective plan which consists of certain activities for the successful execution of a trip. Process of making such plans to achieve some goal or objective is called "Planning. " In other terms, in order to execute activities in future, prior forethought is necessary and this forethought comes under the concept of "planning."

From an organizational point of view, planning is defined as "process by which an organization identifies its short-term and long-term goals, design, and implement strategies to achieve them." One of the important aspects of planning is to allocate resources and manpower in an organization.

The planning function was put forth by Henri Fayol, known for his Management Theories i.e. 14 principles of management and 5 basic functions of management.

Planning is one of the six management functions/processes of Henri and the management process starts with planning function in any organization.

For example, manpower planning or human resource planning is a crucial planning process which ensures the right kind of people at the right place, and at the right time to fulfil the right type of jobs in the organizations. This process includes different activities in the planning process to meet organizational goals.

The Purpose Of Planning

2. Cost-Effective Decision-Making

3. Forecasting

4. Productive Utilisation Of Available Resources

5. Facilitate Other Management Functions

Characteristics/Nature Of Planning

1. Basic and Important Management Function

Planning is not only the base for the rest of the management functions i.e. staffing, directing, organizing, and controlling, but it is also one of the most crucial processes for any organization to meet goals. All the above management functions involve effective planning as without proper planning no function can be performed well. Therefore, the results might be ambiguous.

2. Goal-Oriented

Planning is focused on defining organizational goals or objectives, identifying different action plans, deciding and implementing the best action plan to achieve goals.

3. Omnipresent

Planning is involved at all the levels i.e. top, middle, and bottom. The effective functioning of different departments of organizations like sales, purchase, IT, HR, finance among others depends on planning their systems, optimum use of resources, etc. The scope may vary in different functions.

4. Continuous Process

Planning is a continuous process in an organization which involves making plans for a particular time period i.e. monthly or quarterly, half-yearly, yearly, etc. New plans are initiated after the previous plans lapse to fulfil organizational goals.

5. Demands Strong Analytical Skills

Planning requires robust analytical abilities i.e. analyzing information, problem-solving, decision-making, critical thinking, etc. at each level and function.

Planning process demands forecasting future needs, i.e. analyzing and detecting future requirements, challenges in accomplishing organizational goals, etc.

Importance Of Planning

1. Increase In Efficiency

Planning helps in increasing efficiency by aiming at cost-reduction and generating maximum output. It controls the wastage of available resources and their duplicity.

2. Minimize Risks

Risk-management is an important aspect of any organization, especially in forecasting. Planning predicts various risks related to business and further helps in generating action plans to control and reduce these risks. So, with effective planning, organizations prepare themselves for any future uncertainty.

Planning ensures effective coordination at different levels, between various departments or functions. Plans are formulated at each level i.e. top, middle, and bottom as well as in different departments. Effective execution of these plans requires proper coordination which is possible through effective planning. Similarly, different plans like short-, mid-, and long-term plans require coordination to achieve organizational goals where planning plays an important role.

4. Optimum Utilization Of Available Resources

An organization needs different resources like funds, manpower, physical assets to disburse activities of different departments. These resources are limited. So, it's necessary to utilize and organize them efficiently to produce maximum output. Planning helps in organizing these resources carefully.

5. Smooth Supervision And Direction

Planning paves a path for supervising subordinates, providing right instructions, and rendering top-notch guidance. It aims to provide help, direction for performing various tasks, and methods for carrying out different activities.

6. Facilitates Control

Performance of staff can be controlled or improved by devising plans for improvement in performance according to the variance in performance plans and actual performance at work. Without planning, this process of control could not be smooth.

7. Staff Motivation

Attractive monetary and non-monetary benefits can be designed through proper planning which is helpful in boosting the morale of the staff. This leads to high motivation among staff and reduces turnovers of quality staff.

8. Trouble-Free Decision-Making

Making effective and right decisions in an organization is essential to achieve goals. A supervisor has to make different plans and strategies for the smooth functioning of the department and to decide the most appropriate plan. So, planning helps in smooth decision-making in an organization.

9. Goal-Oriented

Proper planning ensures that the best strategies and decisions are made to fulfil organizational goals. Different plans made at different levels are aimed at achieving individual, departmental, and organizational goals.

10. Encouraging Creativity And Innovative Ideas

Planning demands thinking and implementing the best ideas or strategies for organizational success. Both supervisors and subordinates are encouraged to exploit their creative skills and present their innovative plans.

Elements/Components Of Planning

The planning process revolves around different aspects as shown in the diagram below:

Mission or purpose is the base of planning in any organization. The mission of an organization specifies its reason for existence, customers, products or services, service locations, etc. and mostly in written form. It acts as a direction towards achieving organizational goals. Mission also includes an organization's values and belief system. It also clears the organization's viewpoint on staff. Organizational goals are defined based on the mission statement of an organization.

The ultimate aim of the functioning of each department in an organization is to achieve organizational goals and objectives. Planning also requires setting of goals to make a plan further. Goals can be individual or team based. For example:

Individual goal of Hiring Manager in the HR department: To recruit top talent in the organization in given time-frame.

Team goal of Human Resource Department: To ensure the development of employees by fulfilling an individual's personal, professional needs and by meeting organizational goals.

Goals are specific, measurable, achievable, realistic, and time-bound. Short-term goals can be for less than a year and long-term goals are defined for a time-period of more than a year.

3. Policies

Planning is also based on defined policies of an organization. Policies are a set of guidelines to accomplish any task effectively and also includes procedure and actions. These are defined as a set of plans to handle different situations. Different policies like an insurance policy, travel policy, HR policies are designed to facilitate smooth functioning in any organization. Similarly, if an organization policy says that the minimum annual salary increment of staff will be 10% of the salary then increment can't be less than 10%. So, policies act as a decision-making element as well.

Planning is connected to a process, and it is an important element of planning. A process defines guidelines to execute different activities, i.e. action plan. In any planning activity, the process is practical. A process like planning is aimed at achieving something. These are step-by-step inter-related activities to be performed and require different resources like money, manpower, machinery, etc. to produce the desired output. For example, in a manufacturing company, different processes are present like production process, quality control and quality assurance process, maintenance process etc.

Plans that are made for estimating income and expenses for a specific period are defined as "budget." Budget is a set of financial plans which are made for a specific period and reviewed at regular intervals. Whether it is an organization or a family or an individual; all make budget plans to utilize their financial resources efficiently. For example, in an organization business budget is present that includes fixed and variable costs, expected sales, profits, etc.

A well-designed budget also helps in planning during a financial crisis.

Project in an organization refers to the set of inter-related activities which are planned to fulfil certain goals in a specific time period at a given cost using limited resources. Project planning includes defining goals, project schedule, resources, budget, project quality, manpower, and risk management. So, this element of planning consists of other planning elements as well. For example, software companies work on different projects for their clients.

Strategies are a set of plans and actions that are defined to meet certain results. Proper planning and implementation of strategies are essential for organizational success and to meet certain goals.

Planning is mainly of four types i.e. Operational, Strategic, Tactical, and Contingency.

a) Operational Planning

Operational plan or work plan refers to the planning process aimed at achieving departmental and organizational goals. It is related to the day-to-day functioning of organizations. These plans clear planned activities of departments for the near future in detail. The operational plan provides answers of:
-What goals have to be achieved and what strategies to use?

-Who will be responsible for different activities?

-What is the time limit to complete activities?-

-How much budget in terms of financial resources is required and available to complete activities?

For example, the goal of the marketing team of an engineering college is to increase the number of students by increasing marketing promotional activities. Marketing operational plan is explained in the diagram below:

Operational planning is of two types i.e. single use plans or ongoing plans. Single-use plans are developed for one-time activities or tasks like sales or marketing event or seminar. Ongoing plans have a defined set of policies, rules, and procedures to achieve goals and are continued for the future as well, like a performance management system for employees.

Strategic planning is defined as the strategies made by management to achieve its objectives. It also includes defining directions and allocating resources for execution. Strategic planning is meant for long-term business decisions. A strategic plan starts with the vision and the mission statement of an organization.

The process of strategic planning includes vision clarity, collecting and analyzing information, strategy formulation, and implementation of strategy, evaluating, and controlling. For example, the strategic plan of an organization which aims to reduce the current turnover rate is explained in the below diagram:

Models of Strategic Planning

There are five models of strategic planning which represents its designs or blueprints. Selection of the right model depends on an organization's goals, mission, and vision. These models are:

1. The basic model of strategic planning

These are used by new organizations having less experience in using strategic business planning. It is mainly useful for small-scale organizations and business. This planning includes defining mission, goals, identifying strategies, creating action plans, evaluation etc.

This one is an extended version of the basic strategic planning model and is used by established organizations which aim at introducing an improved strategic process. The process of this model includes a SWOT analysis (strength, weakness, opportunity and threat), identifying goals and mission, making strategies, action plans, operational plans, budget allocation, and evaluation on yearly basis.

3. Scenario-based model

This model is more of a technical model. It is used by organizations to face different challenges or scenarios which arise due to external factors or environmental change. Change can be demographic or in the form of rules and regulations. The process includes identifying problem areas in business and different scenarios- both best and worst, designing suggestions for an action plan of business in different scenarios, selecting common strategies to handle changes, and identifying common issues through which business is being affected or will be affected in the near future.

This model is useful in making a balance between an organization's mission and available resources as well as aligning resources to the mission. It helps in identifying any gaps in planning i.e. gap between actual results and expected results. Organizations facing huge efficiencies prefer this strategic planning model to rectify issues.

The process includes identifying an organization's mission, resources, process, etc, inspecting which areas are working in the right direction and which areas need improvement. It also requires finding ways of improvement and incorporating these improvements in the form of strategies in the plan.

This strategic model is the self-organizing model which is based more on the value system and less on the process. The process includes clearing values and vision to stakeholders in a meeting; an action plan is established by each person as per values and vision, everyone clears results of actions and update values, vision accordingly.

This type of planning is for short duration i.e. plans and actions by functions for short-term and aims at contributing to the strategic plan of an organization. Tactical planning is based on today's need and is a bit more detailed. This planning needs to be flexible to meet unexpected issues which are not predefined. It answers what to do to achieve the strategic objective rather than how-to-do as in case of operational plans. Below is an example of tactic planning by HR Hiring Manager to achieve the goal of hiring twenty sales representatives in the first quarter:

d) Contingency Planning

These type of plans are need-based and are formulated when the need for change arises or during the occurrence of any unexpected circumstance. It is also called alternate plans as it comes under picture once other plans fail to produce desired results. The process includes formulating policy, identifying critical factors of a business, risk analysis, preventive control measures, developing recovery strategies, and testing, training, monitoring plan.

An example of contingency planning can be seen in the diagram below which is a crisis situation of organization i.e. what-if HR Head, who is taking care of all HR gamut of organization, left suddenly. To handle such unexpected situations, contingency plans are made. Like in the below diagram, an organization has formulated a plan i.e. performance development program to train the rest of the HR staff to work at the capacity of HR Head in such crisis situations.

The planning process is defined as the steps to define goals and making the best action plans to achieve it.
Steps In Planning Process
1. Defining goal or objective

Goal setting is the first and important step in the planning process. Goals are defined at the organizational, department, and individual level and are meant to be achieved in future in a specific time period. A goal can be short-term, mid-term or long-term. Plans are devised which are aimed at achieving these predefined goals. Goals specify what to achieve by defined rules, policies, process, resources, strategies, etc.

2. Collecting information

Gathering information like facts and figures required to achieve goals is a necessary part of planning. Target audience, circumstances, market information, competitor's strategy, etc. are required to make a right and effective plan.

3. Analyzing information

The next step in the planning process is interpreting information as per goals. Analyzing information includes organizing collected information as per importance, identifying accuracy and relevancy of information from different sources, its unique features, sources and reliability for the organization.

Once relevant information is collected and analyzed, the next step is to formulate a plan to achieve defined goals; the plan includes identifying different activities, required resources, timelines, etc. to implement a plan.

Implementing a plan refers to allocate defined activities, resources, time guidelines to individuals. In this step, strategies and plans are converted into actions to achieve goals. Implementation of plans also requires allocation of responsibility in the team which is responsible for accomplishing the plan.

Once a plan is implemented, it's necessary to evaluate and monitor its effectiveness and impact according to desired goals.

The planning process can be understood further in below example of an organization plan to formulate competitive compensation and benefits structure or plan for employees.

Although planning has lots of advantages for any organization aiming to achieve its goals; it also has certain constraints or limitations. Few of them are:

Planning requires much investment as lots of aspects, i.e. funds, resources, manpower etc, are included in the process of planning. Due to limited capital or funds in small and medium organizations, it is quite challenging to have comprehensive plans. It is hard to allocate funds for information gathering, predicting future needs, developing strategies, and hiring specialists. If a plan is more detailed, then the cost is high too.

The planning process is a bit time-consuming and, sometimes, there is a delay in decision-making especially in immediate decisions. Due to this, the planning process can't be detailed in some organizations.

3. Fewer employee initiatives

Planning demands work under predefined policies and rigid processes. This, in turn, marks an impact on initiatives and innovative ideas from the employees. Complexity arises in managerial work as well.

The planning process is backed by a change in methods, policies, rules, etc. Employees resist this change due to insecurity, the uncertainty of new plans' success, and getting used to the current plan. This fails the new plan.

The planning process requires an appropriate or fixed financial budget for future actions. An investment in purchasing fixed assets by organizations puts a constraint on the budget required for implementing the planning process.

Planning cannot be 100% accurate and reliable as it is based on forecasting and the future is uncertain, data and information used in making plans may not be accurate, vague decisions made by incompetent planner etc. There is no surety of risks in future.

Apart from these, there are few other external factors like change in government policies i.e. tax policy, import-export policy etc. The trade-unions may also hinder a smooth planning process.

Decision-making is defined as the process by which different possible solutions or alternatives are identified and the most feasible solution or course of action is finalized. It is an integral part of planning. Decision-making results in selecting the right action among different available options.

It is also one of the important management functions and effective decision-making leads to fulfilling expected goals by sorting out different problems related to such decisions. Decision-making is also a time-bound process and eliminates confusions to reach a conclusion. It has a minimum of two or more alternatives or solutions to a problem so that the best can be decided. If only one alternative is available, then there is no requirement of decision-making.

Relation Between Planning And Decision-Making

Both planning and decision-making are connected to each other. These are the most important aspects of management functions. Planning requires a series of decisions to be incorporated in advance. The foundation of planning is decision-making. The role of a planner demands good decision-making abilities also as the planner has to take a lot of decisions simultaneously. So, decision-making is an important task in planning. Simultaneous and a number of decisions make a plan. In the absence of decision-making, it's not possible to answer what, how, when, and who is planning. To execute planned activities, decision-making is compulsory.

So, planning has an important role to play in decision-making.

Characteristics of Decision-Making

Different characteristics of decision-making are mentioned below:

Decision-making consists of a process to choose the best solution to a problem among available alternatives. The process includes identifying and analyzing problems, collecting different facts and figures, finding different solutions, and, finally, narrowing down and implementing the best one to meet organizational goals.

2. Demands creativity and Intellectual mind

Decision-making process requires creativity and logical thinking. It demands a lot of mental exercise and other components, i.e. education, experience level, intelligence, etc.

3. Demonstrates commitment

Decision-making process ensures better results based on the decisions made. So, it indicates the commitment of desired results. It requires joint efforts of the team.

4. Ensures the best solution

Decision-making also provides the best solution to any problem as the best solution is decided after evaluating different available alternatives.

5. Impacts of decision-making

Decision-making can be either positive or negative. A positive or right decision can bring positive results and negative or wrong decisions can bring negative results.

6. Decision-making is a final process

After disbursing different activities and tasks, decision-making takes place to get the results of the work done. It is the end result of discussions, comparisons, etc.

7. An ongoing and changing process

Organizations take decisions on a regular basis; so, decision-making is a continuous process. Every decision consists of separate situations that make decision-making a changing process.

Decision-Making Process

There are different steps in effective decision-making process;

a. Situation analysis and information gathering

The first step of the decision-making process is analyzing any situation, defining a problem, collecting relevant information, and identifying goals. This step includes collecting data and information to identify a real issue or problem. Problem identification is necessary for furthering the decision-making process. Once the problem is identified, an effective solution is determined. Problems are solved as per priority. After the solution is improvised, an action plan is designed to achieve the solution.

b. Plan and make alternatives

After collecting information, the next step is to develop different action plans or an alternative course of action. It requires imagination skills of a decision maker. Sometimes, additional information is also required to define better alternatives.

c. Evaluating and selecting the best alternative

This step in the decision-making process not only includes the analysis of different alternatives available or solutions but also an examination of each one of them based on results they are going to produce. The actual results of these solutions are not known as it's based on performance in the future. So, it comes with uncertainty. It also includes choosing the best solution to achieve objectives. Different alternatives or solutions are judged based on different criteria, i.e. risk involvement, the least effort, the least timing based on the urgency of the situation, limited resources etc.

d. Implementing and evaluating decisions

After deciding the best solution to address a problem, the next step is to make and implement plans. This requires getting and allocating resources, budgets, time frame, etc. Once made, decisions are evaluated to know the progress by preparing progress reports.

Evaluating and monitoring decisions will clear different aspects, i.e. if everything is going as per the plan, different internal and external factors influencing decisions, the performance of subordinates as expected etc.

Example of the decision-making process is shown in the below visual presentation to solve the problem of high employee turnover in an organization;

Factors Affecting Decision-Making

The quality of decisions depends on how much time has been devoted to making decisions. Most of the time decision-makers have to take decisions in a limited time frame as instructed by the management. Due to the time limit, decision-makers are not able to collect all the necessary information that influences decisions and are, also, not able to look for more alternatives.

2. Value and beliefs of decision-makers

In addition, the quality of decisions also depends upon the value and belief system of the decision-makers. Anyone's reaction to a particular situation is more likely to depend on the individual's values, likes and dislikes, thoughts, and beliefs. It is also a behavioural aspect of the decision-makers and reflects in their decisions related to goals, strategy-making activities. So, value-based decisions help in prioritizing tasks and making goals, identifying different solutions to problems, and finalizing the best solution or alternative.

3. Policies of organization

Decisions are affected by the policies of an organization. Decisions taken have to be in the boundary or within the limits of these policies. Decisions which violate policies are not considered for implementation. Though there is a scope to make changes in policies as per decision, most of the time decisions should be at par with the policy guidelines. However, a change in policy is a time-consuming task and requires lots of things to be considered before any change. Comparatively, a change in proposed decisions is much easier.

4. Other factors like budget, manpower, values of management also influence decision-making.

Decisions can be of different types depending upon their nature and influence:

1. Programmed and non-programmed decisions

Programmed decisions are meant for daily routine issues and for those problems that repeat frequently. A Set of tasks are defined to handle such problems or issues and are mostly initiated by the entry-level decision-makers.

For example, HR department issues like handling grievances related to leaves or attendance of employees require programmed decisions. Non-programmed decisions are made for tough situations where defining different alternatives is a challenging task. These types of decisions strategically affect organizations.

For example, decisions related to expanding the operation of an organization to other countries, launching a new product, introducing performance management system for the first time to the employees are non-programmed decisions where decision-making is a challenging task and these decisions are mostly taken by management or at the top-level.

2. Routine and strategy-oriented decisions

Routine decisions are a regular activity in an organization once identified. These are quick decisions and don't require deep thinking or analysis. These decisions are generally taken by the bottom-management staff. Different alternatives are not required in these as everyone is aware of what action to take on a daily basis.

Examples of such decisions include what reports to generate from the biometric system of attendance by the HR staff.

Decisions, in which involvement of organizational goals, resources, and policies is required, are termed as strategic decisions. Strategy-based decisions are future-related and executed by the top management. These are for the long term and are centrally focused. A large amount of investment is required to execute strategic decisions. Different alternatives or course of actions are considered and evaluated to finalize such decisions.

For example, developing a performance management system (PMS) strategy for employees demands strategic decisions. Steps involved in strategic decision-making for formulating PMS strategy starts with identifying goal which might be retaining and motivating the quality staff. Further steps involved are: developing a process for monitoring performance and formulating a comprehensive PMS plan.

3. Policy-related and operational decisions

Decisions related to policy issues are policy-related or tactical decisions. These decisions come under the preview of the top management and leave a long-term impact. For example, changing leave structure or office timings are policy-related decisions.

Operating decisions are for operational functioning and on a daily basis. Middle- and bottom-level management is responsible for such decisions. Different departments or functions of an organization like sales, IT, production, purchase, accounts, or HR take operations decisions.

For example, Diwali bonus payment to employees is a policy matter and calculation of such bonus to handover to employees is considered an operational decision.

4. Organization-based and personal decisions

Decisions, taken by an individual as office staff, are organizational decisions. For example, conducting a campus interview decision by hiring executives is an organizational decision. Wherein, personal decisions are related to an individual's decision to meet personal commitments. These are also known as life decisions. Buying a house is a personal decision.

5. Major and minor decisions

Major decisions are those which require much time, effort, and thinking to finalize and have a long-term impact. For example, a decision regarding higher studies whether to continue in own country or to go abroad is a major decision.
Minor decisions are routine decisions and don't require much time and deep thinking. Like purchasing stationery for different departments is a minor decision.

6. Individual and group decisions

Individual decisions are taken by one person i.e. routine decisions; as the decision of making an excel sheet for attendance management to keep the attendance record is an individual decision.

Decisions which are taken by a group of people aiming to achieve a common goal are group decisions. For example, employee engagement activities demand HR staff to work as a group and take decisions for better employee engagement programs.

Importance of Decision-Making

1. Optimum utilization of resources

With the help of decision-making, all resources of organizations i.e. money, men, material, machine, market and method are used carefully and as per requirement.

2. Problem-solving approach

By decision-making, organizations can determine and face different problems in working. It not only helps in identifying problems but also solving them by making correct and fast decisions.

3. Contributes to organizational growth

As decision-making ensures optimum utilization of resources, making the right decisions to solve problems or issues helps in achieving organizational goals and overall growth.

4. Encourage initiatives and innovations

Decision-making task is performed at all levels of organization i.e. top, middle and bottom. This motivates the staff members to contribute to decisions through brainstorming or alternatives to solve the problem. Thus, it encourages innovative thoughts and ideas which, in turn, help the organization to be at a competitive place in the market.

Good decisions help in increasing the productivity of organizations that result in more profits. Surplus profits help in increasing compensation benefits to employees which ultimately boosts their morale and keeps them motivated.

To conclude, planning is a systematic process that supports organizations to carry out all its present and future activities to achieve desired objectives. Planning, being a continuous function, works well in adverse situations too. Plans can be modified and restructured as per requirement and available information.

Decision making is also an important activity that supports the organization by reducing risks in projects with quick and better decisions.

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Planning And Decision Making: Characteristics, Importance, Elements, Limitations

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In everyday life, all of us make and execute certain plans to achieve our goals. For example, before going on a trip, we make a plan i.e. where and when to go, how to reach the destination, the duration of the trip, where to stay and luggage to carry, etc.

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To be an effective leader, you must be knowledgeable about the work, job, and task. Influential leaders lead by example and motivate the team to achieve goals.

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Want to spend your time in leadership activities that inspire motivation, trust, and certainty while dispelling employee fear, negativity, and skepticism? During times of change, no actions are more powerful than when leaders make the time to communicate and build relationships.

When leadership shares vision, optimism, and purpose driven goals, motivation and commitment from employees is ensured. Jon Gordon, author of Soup: A Recipe to Nourish Your Team and Culture (compare prices), who participated in an earlier interview about managers and motivation, recommends these six leadership actions to inspire motivation.

Communicate Daily With Employees

Communication is a powerful tool that leadership can use to create an environment that brings forth employee motivation. Communication provides information, makes employees feel important and recognized, and provides the glue that binds a workforce with their leadership and their organization.

"Communicate with transparency, authenticity, and clarity. Whether you have a scheduled morning meeting each day, make office rounds in the afternoon, or take your team to lunch, make it a priority to make time to talk to each and every member of your team on a regular basis. You may be busy, but, the truth of the matter is that you really can't afford not to," Gordon recommends.

Transfer Leadership's Optimism

"As a leader, your most important weapon against pessimism (prevalent in recent years) is to transfer your optimism and vision to others. This inspires others to think and act in ways that drive results.

"Leadership is a transfer of belief -- and great leaders inspire their teams to believe they can succeed. As a leader and manager, you are not just leading and managing people, but you are also leading and managing their beliefs. You must utilize every opportunity available to transfer your optimism," Gordon says.

"From town hall meetings to daily emails to individual conversations to weekly teleconferences, it's imperative that you share your optimism with your team. Optimism is a competitive advantage, and you need to convey it in all you say and do. As one of the greatest American innovators, Henry Ford, said, 'Think you can, or think you can't -- either way you are correct.'"

Leadership Shares the Vision

Gordon recommends that to inspire employee motivation, leadership must, "Share the vision. It's not enough to just be optimistic. You must give your team and organization something to be optimistic about. Talk about where you have been, where you are, and where you are going.

"Share your plan for a brighter and better future, talk about the actions you must take, and constantly reiterate the reasons why you will be successful. Create a vision statement that inspires and rallies your team and organization."

Leadership Builds Relationships

"Relationships build real motivation. It's much easier to motivate someone if you know them and they know you. After all, if you don't take the time to get to know the people who are working for you, then how can you ever truly know the best way to lead, coach, and motivate them effectively? And, for that matter, how can you expect them to trust and follow you if they don't know you as well?"

"Relationships are the foundation upon which winning teams and organizations are built," says Gordon. "I advise managers to make their relationship with their employees their number one priority.

"In fact, I've worked with numerous NFL coaches and have seen firsthand how the most successful coaches and best motivators are those who develop meaningful relationships with their players. The same strategy that works on the playing field works in the office as well."

Leadership Creates Purpose-Driven Goals

Gordon recommends: "Create purpose-driven goals. When it comes down to it, the real force behind motivation has nothing to do with money or number-driven goals. Real motivation is driven by purpose and a desire to make a difference.

"In fact, people are most energized when they are using their strengths for a purpose beyond themselves. When employees feel as though the work they do is playing an integral role in the overall success of the company and the world, they are motivated to work harder."

"Similarly, when they feel as though they are working for something more than just the bottom line, they feel good about the work they are doing. So as a leader, you will want to motivate your team by focusing less on number goals and more on purpose-driven goals," Gordon explains.

"It's not the numbers that drive your people but your people and purpose that drive the numbers. Sit down with each individual on your team and talk through their personal goals and how you see those goals fit in to the bigger picture. Give them a sense of purpose that will fuel their fire towards taking action."

Leadership Nourishes the Team

These may seem like strange words to apply to the workplace. But Gordon insists they are spot-on. He says, "The main question that every employee in every organization wants to know is, 'Do you care about me; can I trust you?'

"If your answer is yes, they will be more likely to stay on the bus and work with you. Employees who feel cared for, honored, and nourished are more engaged in what they're doing and will work at their highest potential."

Think about it: Gallup's research shows that employees who think their managers care about them are more loyal and productive than those who do not think so. If you nourish your team and take the time to invest in them, they will pay you back in productivity, creativity, and loyalty. If your employees know that you care about them, they will want to do good work for you. It's the greatest motivator of all."

"Remember this simple formula," Gordon concludes. "Belief plus action equals results. If you don't believe that something can happen, then you won't take the actions necessary to create it.

"If you believe that your team can do big things, they will believe it, too. And that belief will fuel the fires of action and provide you with the results you're looking for."

Nowhere are these six leadership actions more important than in today's organizations. Leadership strives to draw forth the best that employees have to offer, their intrinsic motivation and their discretionary energy. With the active role of your organization's leadership in these six critical activities, motivation and commitment from employees is ensured.

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Learn What Daily Leadership Behaviors Inspire Employee Motivation

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Want to spend your time in leadership activities that inspire motivation, trust, and certainty while dispelling employee fear, negativity, and skepticism? During times of change, no actions are more powerful than when leaders make the time to communicate and build relationships. When leadership shares vision, optimism, and purpose driven goals, motivation and commitment from employees is ensured.

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The responsibility of the Human Resource Department for hiring the right talent to fulfill a position can be challenging. Their decision can affect an entire team. If the right person isn't in the correct position, achieving the organization's goal is difficult.

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A human resources department is an integral part of many businesses. It carries out essential functions, such as hiring and retaining the best possible employees, staying on top of labor laws, managing compensation and benefits, and promoting employee development - all vital to the smooth running of a company.

To carry out these important, multi-faceted duties, HR employees must possess a wide range of abilities. Among other things, they must be keen organizers, have a knack for dispute resolution and negotiation, and be strong multi-taskers. Underpinning all of these skills, however, is the ability to communicate effectively.

The name says it all. Above all else, human resources deals with an organization's most important resource: its human capital. Obviously, a person can't manage humans without interacting with them and the key to effective interaction is communication - both verbal and nonverbal. So if you're thinking about a career in human resources, it's necessary to understand the role that strong communication skills play in your chosen field.

For example, good communication skills are vital when hiring new employees. Knowing how to interview candidates to best gauge their fit will ensure you ask the right questions. Furthermore, a clear job description is the best way to attract qualified applicants who fully understand what the work entails.

In many instances, effective communication can help solve problems or stop them from developing in the first place. Employees turn to the HR department when there is a problem with their job or they have a personal problem that could affect their job performance. In these situations, an HR executive must know what questions will draw out responses that paint the full picture.

If there is a problem between two employees, it is up to HR to negotiate a solution. Skilled negotiation takes excellent verbal and nonverbal communication skills. Employees feel comfortable opening up when they sense that they are speaking to someone who cares. When HR professionals exude trustworthiness, it puts employees at ease and helps them feel confident that their concerns will be resolved. Likewise, special sensitivity and tact are required during employee performance evaluations, layoffs or organizational changes.

During training sessions, an effective HR professional can have a direct bearing on how well employees learn new skills by making performance goals clear and designing employee training tools that are easy to understand and follow.

Of course, good communication involves good listening. To bolster productivity, workplace morale and employee engagement in a corporation's overall goals, human resources personnel need to foster an environment of open communication and active listening. It is vital that staff members feel their concerns and ideas are really being heard.

It's also important to have solid written communications skills. Management often communicates with personnel via email, newsletters and reports - especially in mid-size to large companies. It is up to an HR professional to make sure that written communication is clear, professional and easy to understand.

A 2014 survey of corporate recruiters by the Graduate Management Admission Council found that employers are also putting increased emphasis on communication skills. Under sought-after proficiencies in new MBA hires, the survey notes, "Employers seek recent graduates who are highly proficient in communication skills, specifically oral communication, followed by listening and writing skills."

The more proficiently HR professionals can communicate, the more they will be able to successfully help manage the workforce.

Superlative communication skills are necessary to excel in a human resources career. If you don't consider yourself an expert communicator, you can still learn. As more and more employers begin to place greater value on communication, universities with MBA programs are responding by ensuring their courses develop future business leaders who can communicate effectively.

Southeastern Oklahoma State University offers an online MBA program that strives to produce well-rounded executive leaders. Its online MBA with an emphasis in Human Resources focuses on hard skills such as data analysis and finance as well as soft skills like communication and team building. SOSU seeks to equip graduates with a spectrum of well-honed abilities that make them attractive to future employers.

HR professionals need great communication skills. They must be adept at communicating with both top executives and junior staff members, often acting as a bridge between the two. If you're interested in a future in human resources, make sure you choose a higher learning institute that understands the importance of effective communication for success in business.
Learn more about the SOSU online MBA with an emphasis in Human Resources program.
Sources:
HRVoice: Effective Communications and HR - Making the Connection HR Daily Advisor: The 9 Essential Skills of Human Resource Management - How Many Do You Have? GMAC: 2014 Corporate Recruiters Survey Report Have a question or concern about this article? Please contact us.

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Communication Is an Essential HR Skill | SOSU Online

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A human resources department is an integral part of many businesses. It carries out essential functions, such as hiring and retaining the best possible employees, staying on top of labor laws, managing compensation and benefits, and promoting employee development - all vital to the smooth running of a company.