- Yate 5 1 1 1 Corporate Responsibility Policy
- Yate 5 1 1 1 Corporate Responsibility Letter
- Yate 5 1 1 1 Corporate Responsibility Plan
- Yate 5 1 1 1 Corporate Responsibility Examples
Learning Objectives
- Know the dimensions of the planning-organizing-leading-controlling (P-O-L-C) framework.
- Know the general inputs into each P-O-L-C dimension.
A manager’s primary challenge is to solve problems creatively. While drawing from a variety of academic disciplines, and to help managers respond to the challenge of creative problem solving, principles of management have long been categorized into the four major functions of planning, organizing, leading, and controlling (the P-O-L-C framework). The four functions, summarized in the P-O-L-C figure, are actually highly integrated when carried out in the day-to-day realities of running an organization. Therefore, you should not get caught up in trying to analyze and understand a complete, clear rationale for categorizing skills and practices that compose the whole of the P-O-L-C framework.
In 2014, Bill Gates was the single largest giver in the world, donating $1.5 billion in Microsoft stock to the Bill and Melinda Gates Foundation. Ethical Business Practices The primary focus on ethics is to provide fair labor practices for businesses’ employees as well as the employees of their suppliers. Corporate social responsibility (CSR) is a type of international private business self-regulation that aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically-oriented practices.
It is important to note that this framework is not without criticism. Specifically, these criticisms stem from the observation that the P-O-L-C functions might be ideal but that they do not accurately depict the day-to-day actions of actual managers (Mintzberg, 1973; Lamond, 2004). The typical day in the life of a manager at any level can be fragmented and hectic, with the constant threat of having priorities dictated by the law of the trivial many and important few (i.e., the 80/20 rule). However, the general conclusion seems to be that the P-O-L-C functions of management still provide a very useful way of classifying the activities managers engage in as they attempt to achieve organizational goals (Lamond, 2004).
Planning
Planning is the function of management that involves setting objectives and determining a course of action for achieving those objectives. Planning requires that managers be aware of environmental conditions facing their organization and forecast future conditions. It also requires that managers be good decision makers.
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Planning is a process consisting of several steps. The process begins with environmental scanning which simply means that planners must be aware of the critical contingencies facing their organization in terms of economic conditions, their competitors, and their customers. Planners must then attempt to forecast future conditions. These forecasts form the basis for planning.
Planners must establish objectives, which are statements of what needs to be achieved and when. Planners must then identify alternative courses of action for achieving objectives. After evaluating the various alternatives, planners must make decisions about the best courses of action for achieving objectives. They must then formulate necessary steps and ensure effective implementation of plans. Finally, planners must constantly evaluate the success of their plans and take corrective action when necessary.
There are many different types of plans and planning.
Strategic planning involves analyzing competitive opportunities and threats, as well as the strengths and weaknesses of the organization, and then determining how to position the organization to compete effectively in their environment. Strategic planning has a long time frame, often three years or more. Strategic planning generally includes the entire organization and includes formulation of objectives. Strategic planning is often based on the organization’s mission, which is its fundamental reason for existence. An organization’s top management most often conducts strategic planning.
Tactical planning is intermediate-range (one to three years) planning that is designed to develop relatively concrete and specific means to implement the strategic plan. Middle-level managers often engage in tactical planning.
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Operational planning generally assumes the existence of organization-wide or subunit goals and objectives and specifies ways to achieve them. Operational planning is short-range (less than a year) planning that is designed to develop specific action steps that support the strategic and tactical plans.
Organizing
Organizing is the function of management that involves developing an organizational structure and allocating human resources to ensure the accomplishment of objectives. The structure of the organization is the framework within which effort is coordinated. The structure is usually represented by an organization chart, which provides a graphic representation of the chain of command within an organization. Decisions made about the structure of an organization are generally referred to as organizational design decisions.
Organizing also involves the design of individual jobs within the organization. Decisions must be made about the duties and responsibilities of individual jobs, as well as the manner in which the duties should be carried out. Decisions made about the nature of jobs within the organization are generally called “job design” decisions.
Organizing at the level of the organization involves deciding how best to departmentalize, or cluster, jobs into departments to coordinate effort effectively. There are many different ways to departmentalize, including organizing by function, product, geography, or customer. Many larger organizations use multiple methods of departmentalization.
Organizing at the level of a particular job involves how best to design individual jobs to most effectively use human resources. Traditionally, job design was based on principles of division of labor and specialization, which assumed that the more narrow the job content, the more proficient the individual performing the job could become. However, experience has shown that it is possible for jobs to become too narrow and specialized. For example, how would you like to screw lids on jars one day after another, as you might have done many decades ago if you worked in company that made and sold jellies and jams? When this happens, negative outcomes result, including decreased job satisfaction and organizational commitment, increased absenteeism, and turnover.
Recently, many organizations have attempted to strike a balance between the need for worker specialization and the need for workers to have jobs that entail variety and autonomy. Many jobs are now designed based on such principles as empowerment, job enrichment and teamwork. For example, HUI Manufacturing, a custom sheet metal fabricator, has done away with traditional “departments” to focus on listening and responding to customer needs. From company-wide meetings to team huddles, HUI employees know and understand their customers and how HUI might service them best (Huimfg, 2008).
Leading
Leading involves the social and informal sources of influence that you use to inspire action taken by others. If managers are effective leaders, their subordinates will be enthusiastic about exerting effort to attain organizational objectives.
The behavioral sciences have made many contributions to understanding this function of management. Personality research and studies of job attitudes provide important information as to how managers can most effectively lead subordinates. For example, this research tells us that to become effective at leading, managers must first understand their subordinates’ personalities, values, attitudes, and emotions.
Studies of motivation and motivation theory provide important information about the ways in which workers can be energized to put forth productive effort. Studies of communication provide direction as to how managers can effectively and persuasively communicate. Studies of leadership and leadership style provide information regarding questions, such as, “What makes a manager a good leader?” and “In what situations are certain leadership styles most appropriate and effective?”
Figure 1.8
Quality control ensures that the organization delivers on its promises.
International Maize and Wheat Improvement Center – Maize seed quality control at small seed company Bidasem – CC BY-NC-SA 2.0.
Controlling
Controlling involves ensuring that performance does not deviate from standards. Controlling consists of three steps, which include (1) establishing performance standards, (2) comparing actual performance against standards, and (3) taking corrective action when necessary. Performance standards are often stated in monetary terms such as revenue, costs, or profits but may also be stated in other terms, such as units produced, number of defective products, or levels of quality or customer service.
The measurement of performance can be done in several ways, depending on the performance standards, including financial statements, sales reports, production results, customer satisfaction, and formal performance appraisals. Managers at all levels engage in the managerial function of controlling to some degree.
The managerial function of controlling should not be confused with control in the behavioral or manipulative sense. This function does not imply that managers should attempt to control or to manipulate the personalities, values, attitudes, or emotions of their subordinates. Instead, this function of management concerns the manager’s role in taking necessary actions to ensure that the work-related activities of subordinates are consistent with and contributing toward the accomplishment of organizational and departmental objectives.
Effective controlling requires the existence of plans, since planning provides the necessary performance standards or objectives. Controlling also requires a clear understanding of where responsibility for deviations from standards lies. Two traditional control techniques are budget and performance audits. An audit involves an examination and verification of records and supporting documents. A budget audit provides information about where the organization is with respect to what was planned or budgeted for, whereas a performance audit might try to determine whether the figures reported are a reflection of actual performance. Although controlling is often thought of in terms of financial criteria, managers must also control production and operations processes, procedures for delivery of services, compliance with company policies, and many other activities within the organization.
The management functions of planning, organizing, leading, and controlling are widely considered to be the best means of describing the manager’s job, as well as the best way to classify accumulated knowledge about the study of management. Although there have been tremendous changes in the environment faced by managers and the tools used by managers to perform their roles, managers still perform these essential functions.
Key Takeaway
The principles of management can be distilled down to four critical functions. These functions are planning, organizing, leading, and controlling. This P-O-L-C framework provides useful guidance into what the ideal job of a manager should look like.
Exercises
- What are the management functions that comprise the P-O-L-C framework?
- Are there any criticisms of this framework?
- What function does planning serve?
- What function does organizing serve?
- What function does leading serve?
- What function does controlling serve?
Referenes
Huimfg.com, http://www.huimfg.com/abouthui-yourteams.aspx (accessed October 15, 2008).
Lamond, D, “A Matter of Style: Reconciling Henri and Henry,” Management Decision 42, no. 2 (2004): 330–56.
Mintzberg, H. The Nature of Managerial Work (New York: Harper & Row, 1973); D. Lamond, “A Matter of Style: Reconciling Henri and Henry,” Management Decision 42 Privatus 6 1 8 x 8. , no. 2 (2004): 330–56.
Since Amazon went public in 1997, the e-commerce giant has been repeatedly criticized for its lack of commitment on corporate social responsibility aspect of the business. Moreover, Amazon’s first sustainability executive Kara Hartnett Hurst was appointed only in August 2014 , a stark proof that CSR aspect of the business has not been paid due attention to for a long period of time. Currently, Amazon CSR programs and initiatives include the following:
Amazon Supporting Local Communities
- In 2020, the e-commerce giant created the Amazon Relief Fund, with a USD25 million initial contribution, focused on supporting its independent delivery service partners and other stakeholders to deal with the negative impact of coronavirus developments on the business.
- Amazon’s Device Donation Program facilitates the donation of electronic devices and gift cards to schools located near Amazon fulfilment centres throughout the US
- The company hosts ‘Girls Who Code’ events occasionally to help get more girls interested in coding
- The e-commerce giant supports local and national nonprofits with cash and product donations.
Amazon Educating and Empowering Workers
- Amazon Career Choice Program pre-pays 95% of tuition for employees to take courses for in-demand fields, such as airplane mechanic or nursing, regardless of whether the skills are relevant to a career at Amazon. Up to date the program has been attended by more than 10000 employees worldwide.
- Amazon Virtual Contact Centre, allows Amazon’s customer service employees to work from home.
- Amazon program “Pay to Quit” offers USD 5000 to warehouse workers who quit to encourage employees to take a moment and think about what they really want.[1]
Employee Health and Safety at Amazon
- In 2020 due to the risk of COVID-19 coronavirus, the company recommended all of global employees to who work in a role that can be done from home, do so for a certain period of time
Amazon and Gender Equality and Minorities
- Gender equality and minorities are placed at the core of Amazon CSR initiatives. There are 10 affinity groups in the company, known as employee resource groups
- In 2019 the company launched Business for Social Responsibility’s HERproject™ which attracted more than 8000 women in its supply chain
Energy Consumption by Amazon
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- The e-commerce and cloud computing company is heavily investing in wind and solar to reach 80% renewable energy across all business operations by 2024[2]
- The ultimate aim of the company is to be using 100% renewable energy by 2030
- Amazon has ranked #1 company in the US for the amount of corporate on-site solar installed in 2018 in Solar Means Business Report.
- Three million square feet of Amazon head office in Seattle is planned to be heated by a “district energy” system—recycling the heat from a nearby building to heat the office space
Water Consumption by Amazon
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- Many of Amazon’s fulfilment centres have the ability to collect and recycle water. This is achieved via rainwater collection tanks or recharge wells.
- Whenever possible, the e-commerce giant uses direct evaporative technology for cooling our data centres, significantly reducing energy and water consumption.
Waste Reduction and Recycling by Amazon
- The company has started Packaging-Free program in a number of cities. Customer orders within this program are shipped in their original packaging without secondary or additional packaging.
- Amazon celebrated 10-year anniversary of Frustration-Free Packaging in 2017. The company claims to have eliminated more than 665,000 tons of packaging materials – more than 1.18 billion shipping boxes over the last decade.[3]
Carbon Emissions by Amazon
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- Amazon’s total carbon footprint for the financial year 2019 totalled to 44,40 million metric tons
- In 2019 Amazon and Global Optimism announced The Climate Pledge, a commitment to meet the Paris Agreement 10 years early
- The e-commerce giant has pledged to deploy its technology and people to reach zero carbon across the company by 2040
- As an important step towards the achievement of zero carbon operations, The tech giant aims to achieve zero carbon for 50% of all shipments by 2030
- The company has ordered 100,000 fully-electric delivery vehicles, the largest order ever for electric delivery vehicles[4]
- The largest internet retailer in the world by revenue has invested about USD 100 million in reforestation projects globally
Amazon and Sustainable Sourcing
- Amazon is a member of Better Cotton Initiative (BCI), which is the largest cotton sustainability program in the world
- In 2019, the e-commerce giant signed the Responsible Sourcing Network’s public Cotton Pledge to not source cotton from certain countries until the pervasive use of government-mandated forced labour is stopped
Amazon.com Inc. Report contains a full analysis of Amazon corporate social responsibility including Amazon CSR issues. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Amazon. Moreover, the report contains analyses of Amazon leadership, business strategy, organizational structure and organizational culture. The report also comprises discussions of Amazon marketing strategy and its ecosystem.
[1] Soper, T. (2014) “Here’s why Amazon pays $5K to warehouse workers who quit” Geek Wire, Available at: https://www.geekwire.com/2014/heres-amazon-pays-5k-workers-quit/
[2] Sustainability: Thinking Big (2019) Amazon
[3] Sustainability: Thinking Big (2019) Amazon
[4] Sustainability: Thinking Big (2019) Amazon
Tags: IT, Retail