Definition of management

Definition of management Executive summary The constitution of the people in an organization which includes planning, organizing, leading, motivating and controlling at all levels of the management. An introduction to a variety of tools, idea and system that are used to analyze and understand the inside and outside of business environment of a firm. Management In the simple term refers to making things done by others. History The word manage come from the Italian word maneggiare which means (to handle -especially a horse), which in turn derives from the Latin word manus (hand). Later on the French word mesnagement (later menagement) influenced the development in meaning of the English word management in the 17th and 18th centuries. (www.answers.com) (www.encyclopedia.com) FINDINGS:- Definition of management:- â€Å"The conventional definition of management is getting work done through people, but real management is developing people through work† By ‘Agha Hasan Abedi Management is defining both science and art but thats not so important, what important is? Management is a method that is used to achieve organizational objective; that is, a method that is used to attain what a firm wants to achieve. A business can be in any field or entity or any group in which people come together to perform their respective task. Managers are the person to whom this task is given. And thus the managers achieve these goals through the key function like (1) planning, (2) organizing, (3) directing, and (4) controlling. Some of them also include leading as a managing role, but leading is a part of directing. Planning: Planning could include setting of organizational aims and goals. This are usually done by the higher management of the organization and as the part of business objective, then the manager build up the same strategies for attaining the goals of the organization. Organizing: Organizing refers to the technique in which the organization distributes it resources, assigns their respective duties, and goes about achieving its goals. It is shown by an organizational chart; with the three main levels starting with top level (ceo) followed by the middle level (managers and executive) and at last the lower level (workers and labor). Directing: Directing is the process which would everyone relate to supervision. It is supervising, or leading workers to achieve the objective of the business. In many organizations, directing involves making coursework, supporting workers to carry out the coursework, interpreting organizational guidelines, and notifying workers to how well they are acting towards the respective goal. To successfully carry out this task, managers must have leadership ability in order to get workers to execute the work effectively. Controlling:- controlling is a function which involves the valuation of activities that the manager should carry out. It is a procedure of shaping the organization goals and objectives to be met. The process also includes correcting the business conditions for which the purpose and objectives are not meeting. There are many more other activities which are a part of controlling process. Managers must know and set some standards of appraisal for workers. PESTEL Analysis Political factor:- Political issues include government guidelines and legal issues and define both formal and informal rules under which the firm must function. Some examples of political factor include: tax policy employment laws trade constraint and tariffs political permanence Economical factor:- Economic factors affect the purchasing power of potential customers and the firm ´s cost of capital. The Economic condition is influenced by the political and government guiding principle, being a major influence affecting government assessments. The following are examples of factors in the macro economy: Economic growth Interest rates Exchange rates Inflation rates Social factor:- The Social factors comprises of the demographic and cultural phase of the external macro environment. These factors affect customer wants and the size of potential markets. Some social factors include: health consciousness population growth rate age distribution career attitudes emphasis on safety Technological factor:- Technological factors are those factors that can lower barriers to enter markets, reduce minimum efficient productivity levels, and influence the outsourcing decisions. Some technological factors include: RD process automation activity technology incentives rate of technological transform Legal factor:- These are allied to the legal obligation in which company operates. In latest days in UK there have been many considerable legal changes that have affected firms behavior. The introduction of age discrimination and disability legislation, the increase in the minimum wage and greater supplies for firms to recycle are illustration of relatively recent laws that affect an organization. Legal changes can affect a firms costs for example:- Future legislation European/international legislation Regulatory bodies and processes Employment law Consumer protection Environmentalfactor: Environmental factors include the weather conditions and climatic changes that take place. Changes in temperature can blow on many industries including farming, tourism and insurance. There is a major climate change taking place because of global warming and with greater environmental alertness this factor is becoming a major issue for firms to reflect on. Examples:- Ecological Environmental issues Environmental regulations Stakeholder/ investor values Organization structure and its design Organizational design is the process by which managers select and manage various elements and working of organizational structure and culture so that an organization can achieve its objective. Organizational structure is the formal system of work and reporting relationships that controls, co-ordinates, lead and motivates employees so that they work together to achieve an organizations goal. As a manager one should create an organizational structure and culture such that: Which Encourages employees to work hard and encourage them towards their work attitudes. Allows the employee and all the middle n lower level groups to cooperate and work together effectively. Structure and culture affect: Behavior Motivation Performance Teamwork and cooperation Intergroup and Interdepartmental relationships. Hongkong and shanghai banking corporation limited. The HSBC Group has an international history which is unique. Many of its most important companies opened for big business over a century ago and they have a history which is rich in diversity and success. The HSBC Group is named after its founding member and the founder of it was Sir Thomas Sutherland, The Hongkong and Shanghai Banking Corporation Limited and a public limited company, which was established in year 1865 to finance the growing trade between China and Europe. It was started as it headquarters in hongkong and than until 1992 hongkong served as a world headquarter when it was forced to move to London as a condition of completing the acquisition of midland bank. As a public limited company hsbc is listed on different stock exchanges of the world like London, hongkong, Paris, India, Bermuda constituent of the FTSE 100 Index and the Hang Seng Index. (www.HSBC.co.uk/history) INFORMATION SYSTEMS IN USE AT HSBC FOR THE TRADING PORTAL HSBC was a founder member of the ‘FXall software, the leading multi-bank FX trading portal. With increasing competition in electronic FX trading, HSBC wanted to be the first bank to introduce the new QuickFill functionality software. QuickFill enables customers to execute trades based on streaming Prices i.e. using configurable deal sizes for different currency pairs as opposed to a request for quote (RFQ) system where a deal is executed against the best available quote in the market. QuickFill allows customers to see a price and simply â€Å"hit† it. The system provides a 24/7 operation base with rates being managed globally from a range of HSBC financial centres. This software enhances functionality to enable streaming prices, rapid implementation within an infinite timeframe, and transfer of required details over multiple levels and minimized the risk by strict project planning. Structural and contextual dimensions of HSBC Structural dimensions: Centralization:- This means the extent to which functions are dispersed in the company, either in the terms of integration with other functions and geographically. Since HSBC is a worldwide banking corporation all functions are dispersed into different departments under different heads. In such conditions centralization is not possible and so the entire organization functions are de-centralized so as to make the functioning easier and smoother. Formalization:- This concept is regarding to the extent of policies and procedures in any organization. HSBC being a highly accredited name all over the world, it is very important for the management to upkeep its name and standard in the world wide market place and so for this reason it is essential that formalization levels in the company be very high. This company deals with high profile clients and so every employee must be aware of all the rules and regulations of the company so as to avoid reduction of reputation in the eyes of the customers. Hierarchy:- This concept is regarding the extent and configuration of levels in the structure of the organization. Hierarchy of a bank at the stature of HSBC is very complicated as it involves both a flat as well as tall structure hierarchy and level of management. Basically, the bank tries to follow a flat structure and has decentralized all its departments so as to increase efficiency and productivity of the organization. Specialization:- Specialization refers to the extent at which activities are refined in the organization. Like any other multi-national corporation even HSBC has a high amount of specialized employees working under different departments from different fields and educational backgrounds. The company advocates a policy of well defined tasks and roles for each employee so as to avoid overlapping job portfolios. Training:- Training is the extent at which activities to equip organizational members with knowledge and skills are carried out, about their roles. Before an employee can be sent onto the floor to handle customers each employee has to undergo various trainings so as to be fully equipped with complete knowledge over all the queries that a customer might have. This training is highly professionalized so that no errors are made on the side of the employee who would result in the loss of a potential or existing customer. As this is in the banking sector low professional training standards are not advised and harmful for the company. Contextual Dimensions: Culture:- The values and the beliefs shared by all employees in the organization should be maintained in decorum. Culture is often explained by examining the norms and behaviors of employees in the workplace. HSBC has a multilingual culture where persons from all over the world come together and work in a single workplace as a team. So, its said that ‘HSBC- THE WORLDS LOCAL BANK. Environment:- Environment refers to the nature of external influences and activities in the political, social, technical, and economic areas of business. A stable environment is very essential for any business to survive and function smoothly in a way as per norms written down in the memorandum of association. Being a world wide bank it is very difficult to say that HSBC has a stable environment as it might have a stable environment in one of its branches but that is not the same with each and every one of its franchised branches. Goals:- The unique overall priority and preferred end-states of the organization is known as its goal. The goal of the bank is â€Å"To be the Bonding Company that guarantees continuance in the market to satisfy appropriately and professionally the bonding needs of our obligors and the assurance of timely fulfillment of our bond to our beneficiaries† (www.hsbc.co.uk). Size:- The number of people and resources in the organization and their span of control in the organization. HSBC is a highly resourceful bank and has the most number of employees in comparison to any other bank. Basically, we can say that HSBC is a large multinational corporation with around 8500 offices over 119 countries which consist of more than 1 million employees and workers. Technology:- The unique activity needed to reach organizational goals, including nature of activities, specialization, type of equipment/facilities needed, etc. HSBC provides their customers with both products as well as services. The main technologies includes computer softwares and banking instruments which have made modern life un-livable without. SWOT ANALYSIS â€Å"Situation analysis in which internal strengths and weaknesses of an organization, and external opportunities and threats faced by it are closely examined to chart a strategy.† (www.businessdictionary.com) STRENGHTS:- Competitive market and brand name. High standard regulatory environment Flexible work permit system and good quality staff offering personal client service WEAKNESSES:- Tough competitors Retail and staff affluent customer proposition Lack of legitimate access to all markets Rigid laws that prohibit development OPPORTUNITIES:- Brand expansion Unified trade body to lead finance sector program change Active and aggressive targeting of private and corporate clients Co-ordinate business relationships thus investing in the ecosystem THREATS:- Changing scenario which makes investors hard to invest. Outsourcing to cheaper jurisdictions Downsizing and reduction in banking operations Regulations in foreign trade capital markets Impact on the service sector ecosystem Conclusion Service sector management is an important factor for any business organization and with the rapid growth of these sector people are keener to develop the habit of providing services with all the necessary means available to them. Due to high competition in the service market people are scared to invest in banking sector, hsbc have always arrived up with various schemes to hold the interest of its customers. As mentioned: High competition in the banking sector, hsbc has to increase the confidence in the mind of their customer about the reliability and security of their investment compared to other banking service provider. Best service compared to the other providers. Hsbc should be more concentrative in after sales service, There is opportunity but no security; it should emphasis more on service than any other thing. Hsbc should give some more sound strategies to trap more customers giving more comparison with other investment center. Due to uncertainty of market hsbcs security investment are subject to market risk and there is no guarantee that the objective be will achieved. The growth of retail financial services sector has been a key to the development on the market front. Both the public and the private bank will not only keen to tap the domestic but also to hold the international market of financial services. Now foreign banks will be more likely to gain foothold in prospective global market. Therefore the future will belong to them who develop good and strong service strategies, internal controls cost effective services and instruments and innovating new evolution in the SERVICE SECTOR market.