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Factors Affecting the Four Functions of Management.
Numerous factors impact the four functions of management. The functions of management include: planning, organizing, leading, and controlling. Key components include: external, internal, globalization, technology, innovation, diversity, and ethics.
A prime external factor would include the current state of the of the United States economy. Consumers may not be purchasing as many Hershey products this year as they did last year, due to staple items such as milk, bread, and eggs being more expensive. During the planning process Hershey’s managers are going to have to implement forecasting more than ever.
The organizing process involves synchronizing the resources required to attain organizational goals. Due to internal factors such as correspondence and numerous phone inquiries Hershey’s decided to create a company website to address customer inquiries. On Hershey’s website, consumers can read anything from product descriptions to the organization’s philosophies. (The Hershey Company, n.d.)
The function of leading is the process of motivating employees to perform at their best. Hershey’s is a company that truly values their employees as the company’s website clearly states. Hershey’s mission statement reads, “Bringing sweet moments of Hershey happiness to the world every day. To Hershey’s employees this means winning with an aligned and empowered organization…while having fun.” This is a reflection of the organizations culture and its dedication to company employees.
Controlling is the process of monitoring development and applying modifications. Hershey’s must be aware of how internal factors can affect control. By reviewing annual reports Hershey’s can get a general idea of what products are selling. If sales are low, marketing may need to see about alterative marketing strategies.
“The Hershey Company (NYSE: HSY) is the largest North American manufacturer of quality chocolate and sugar confectionery products. The Hershey Company revenues nearly $5 billion and has almost 13,000 employees worldwide.”(The Hershey Company, n.d., 1) The Hershey Company is a highly globalized company. When managers are in the planning process they must look at whom they are serving and where. A product that sells out in Mexico may not have the same outcome in the United States. Hershey’s excels in the fact that they view employees as valuable resources. Hershey’s wants employees to feel empowered in their decision-making. Empowerment makes for a positive work environment. Since managers are to use the function of leading to stimulate employees, managers must lead in a positive manner. On Hershey’s website, the corporate philosophy states that Hershey’s “maintains a strong "people" orientation and demonstrates care for every employee.”(The Hershey Company) That is a grand portrayal of leadership for employees all over the globe. No matter what language is spoken every employee wants to feel valued and appreciated. The function of controlling allows managers to monitor progress from every corner of the world. By incorporating today’s technology global business has been simplified. With the use of specialized software the information that global managers require can be theirs with the click of a button. Technology has enabled Hershey’s to make a sizeable amount of improvements.
In the 1800’s making chocolate a complicated process. Employees roasted cocoa beans for 5 to 35 minutes in an oven at temperatures between 120-163 degrees. After the beans were roasted they needed to be cracked and winnowed. The nibs must then be grinded into a cocoa liqueur. After the chocolate is refined, cocoa butter, sugar, lecithin and vanilla are placed in an oven at 120 degrees. The chocolate is pulled out of the oven every couple of hours and stirred. The heating and stirring process takes approximately 36 hours. Thanks to technology this process no longer applies, the Hershey Company can now produce approximately one million pounds of chocolate a day.
The Hershey Company uses technology today on several levels. Production of chocolate, marketing and even their Great American Chocolate Tour ride are excellent examples of technological improvement. Incidentally, the Great American Chocolate tour was originally developed due to tour members increased body heat warming the plant as they walked through.
(Pennsylvania: Hershey’s Chocolate World is sweet, 2006, p. 1)
Hershey has now teamed with AXS Technologies; their parallel processing technology amplifies the speed at which high quality digital images are observed. In a study released by PricewaterhouseCoopers, 44 % of respondents claimed they would purchase more merchandise online if they were able to see the products at close range. (AXS Technologies Announces Sweet Deal with Hershey’s. 2001, p. 1)
Hershey’s is one of the more aggressive companies in terms of scientific development in the market. They have up-sized their technical department in the past years because Hershey’s is dedicated to technical research. Hershey labs contain research on rheology (the study of the deformation and flow of matter) (The American Heritage, 2006, p. 1), chocolate processing, packaging, pasta, test kitchens, analytical services and newly developed ingredients. This includes the incorporation of high intensity sweeteners, cocoa butter replacements, new carbohydrates, and new flavors.
The cocoa plant, which is turned into chocolate, has been around for a centuries.
Mr. Hershey started the milk chocolate sensation that has completely shaped and
innovated the flavor, manufacturing, and sales of chocolate. One huge innovation that Hershey
incorporated was the coshe machine. The Coshe mixes the chocolate. Mr. Hershey saw a
machine while on an expedition in Colombia, which led to the idea of inventing the coshe
machine. The coshe machine made the first Hershey kiss. Mr. Hershey has stated,
“One is only happy in proportion as he makes others happy” (Hershey 1935) Mr. Hershey
wanted to do what ever it took to make his chocolate unique. Chocolate lovers rejoice all
across the world.
Diversity can be more than a person’s race or ethnic background. “Workplace diversity refers to the variety of differences between people in an organization.” “Diversity encompasses race, gender, ethnic group, age, personality, cognitive style, tenure, organizational function, education, background and more.” The effects of diversity can impact how management is should be enforced. Learning to work with different personalities and cultures can make or break a manager. Managers must take into account diversity when dealing with issues in the workplace.
Hershey employees can receive tasks from their manager, but may not possess the attributes necessary for the task required. One may not have the skills needed to fulfill the task, but may have the appropriate skills needed for other delegated assignments. The Hershey Company’s managers select employees to perform certain jobs according to their diversified traits. Because the Hershey Company employs several hundred people, diversity within the company is vast, therefore, creating a more valuable workforce. “Diversity not only involves how people perceive themselves, but how they perceive others.” These perceptions can have a positive or negative influence. Therefore, management will have to implement constructive strategies to further build on employees’ strengths and weaknesses.
Business ethics is critical during times of fundamental change. Ethics in the workplace allows managers and staff to act consistently. Hershey’s makes it a priority to be ethical in all business practices whether it be in the front office or in the factory. Ethics programs cultivate sound teamwork and efficiency.
Ethics align employee behaviors with the ethical values ideal for The Hershey Company. Organizations find surprising discrepancies between certain values and values reflected by behaviors in the work environment. Ongoing attention and dialogue regarding values in the work environment builds openness, integrity and honesty -- critical ingredients of strong teams in the work environment. Employees feel a strong connection between their values and those of the organization. They react with strong motivation and performance. Ethics programs support employee growth and character. Attention to ethics in the work environment helps employees face reality, both good and bad with in the organization.
Work ethics ensures ethical policies and procedures in the workplace. The main purpose of well-designed personnel policies is to ensure fair treatment of employees, especially in matters of hiring, evaluating, disciplining, and termination. Drake and Drake (California Management Review, V16, pp. 107-123) note that “an employer can be subject to suit for breach of contract for failure to comply with any promise it made, so the gap between stated corporate culture and actual practice has significant legal, as well as ethical implications.”
Ethics programs tend to detect early on ethical issues and violations so they can be reported or addressed. In some cases, when an organization is aware of an actual or potential violation and does not report it to the appropriate local authorities, this can be considered a criminal act and can be punishable with a fine or imprisonment. The recent Federal Sentencing Guidelines specify major penalties for various types of major ethics violations. However, the guidelines potentially lower fines if an organization has clearly made an effort to operate ethically.
Ethics programs help manage values that are linked with total quality management and strategic planning. Ethics programs identify preferred values and morals to ensure organizational behaviors are the same as those values and morals. Efforts include recording the values that are developing policies and procedures to align behaviors with preferred values, and training all personnel. This overall effort is very useful for a lot of other programs in the work environment that demand behaviors to be aligned with values, including quality management, strategic planning and diversity management. Total Quality Management includes high priority on certain operating values, e.g., trust among stakeholders, performance, reliability, measurement, and feedback.
Ethics programs also promote a strong public image. Attention to ethics is also strong public relations -- admittedly, managing ethics shouldn’t be done primarily for reasons of public relations. The fact that The Hershey Company regularly gives attention to ethics portrays a strong positive image to the public. People see those organizations as valuing people more than profit, as striving to operate with the utmost of integrity and honor. Aligning behavior with values is critical to effective marketing and public relations programs. Bob Dunn, President and CEO of San Francisco-based Business for Social Responsibility, puts it best: “Ethical values, consistently applied, are the cornerstones in building a commercially successful and socially responsible business.”
In conclusion, a variety of factors influence the four functions of management. Whether management is in the planning, organizing, leading, or controlling aspect they must always be prepared to implement new ideas. Key factors such as external, internal, globalization, technology, innovation, diversity, and ethics influence managers’ daily decisions.
AXS Technologies Announces Sweet Deal with Hershey’s. (2001). Business Services Industry. Retrieved from http://findarticles.com/p/articles/mi_mOEIN/is_/ai_72382151
Pennsylvannia: Hershey’s Chocolate World is sweet. (2006). Retrieved from http://www.newsday.com/travel/ny-glbb4680817apr02, 0,1194325.story
The American Heritage (2006). In The American Heritage (Vol. 4, p. 1). Houghton Mifflin Company: Houghton Mifflin Company.
The Hershey Company (n.d.). . Retrieved October 26, 2008, from http://www.thehersheycompany.com/index.asp
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"Factors Affecting The Four Functions Of Manangement." 123HelpMe.com. 22 May 2015