The Five Functions Of Effective Management

1867 WordsJul 20, 20168 Pages
The role of management contains the responsibilities for sustaining the life cycle of an organization. According to textbook “The Five Functions of Effective Management” by Baack, Reilly, & Minnick (2014) Peter Drucker in 1985 made a formal statement regarding management. In textbook “The Five Functions of Effective Management” by Baack, Reilly, & Minnick (2014) Peter Drucker in 1985 stated, “Management in turn is the organ of the institution (chapter 1.2).” Peter Drucker visual outline the concept of what management is about for companies in his statement. Management decides on purchases and supplies that influence the effectiveness and efficiency of organizational functions. This paper is a comprehensive view to importances to…show more content…
Strategic, operational, environmental dimension, and social risk influence the decision in management to an organization 's needs because it is the foundation to a company 's success based on performance for customer excellence. Suppliers are selected by first defining needs. The needs of an organization can be meet by either insourcing or outsourcing materials, service, and equipment. However, the description of needs is essential before selecting a qualified supplier because a strategic or nonstrategic plan should be implemented as part of the purchasing and supply management process for a higher level of effective and efficient performance in the procurement to operations. Procurement is acquiring the needs of the organization to function at the highest level of quality performance. Procurement steps are recognition of needs, translation of need into commercially equivalent description, a search for potential suppliers, the selection to suitable source, an agreement in order or contract-details, the delivery of products or service, a payment of supplier, and monitoring the cross-functional activities. A supplier or purchases is valued on the level of quality, quantity, delivery, price, and service with consideration of risks. The risks are operational, financial, and reputational. For example, BP is a convenient store where fuel is sold. The effectiveness and efficiency of products and service by BP is measured based on the
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