The classical approach is management that focuses on the best way to manage and organise workers to improve productivity in a business.
Planning is referred to as the primary management function which is the key to short and long term success of the business. It is preparing a predetermined course of action for a business so that it can achieve its objectives and stated mission. A business that uses classical management needs planning as it will give the business direction and goals. Planning is crucial if the business wants to survive.
There are 3 different types of planning in a business. These include strategic or long term; planning for the following 3 to 5 years which assists in determining where in the market the business wants to be and what the business wants to achieve. Tactical or medium term; planning that is flexible and adaptable which can last for 1 to 2 years. Tactical planning can be used to assist in creating a strategic plan and allows the business to respond quickly to change. Operational or short term; planning that provides specific details about the way in which a business will operate in a shorter time period when trying to achieve a more important goal.
Organising is determining what is to be done, who does it and the best way to do it. It is organising the financial, human and material resources to achieve the goals of the business. This part occurs after the planning process. The organisation process is the range of activities that turn the goals of the business into reality. The first step is to determine the work activities. The work activities are needed to achieve management objectives which can then be broken down into smaller steps. The second step is classifying and grouping activities. After the work activities of the business have been broken down into smaller steps, similar activities can be grouped together. By doing this it improves efficiency as it enables the most appropriate allocation of resources. The third step is assigning and delegating authority. This is determining who is suitable to carry out the work and who is responsible to do the work.
Controlling in a business is comparing what was supposed to happen with what has actually occurred. Controlling allows for the business to improve if there are variations between performance and goals.
Also with controlling, there is the control process that involves 3 steps for measuring the success of the business. The first step is to establish standards to the employees with influences from employees, management, industry and government. The second step is to measure performance and determine how comparisons will be made against the standards. The third step is taking corrective action; it can be changing activities, processes or human resources to make sure the goals of the business have been met.
Hierarchical organisational structure:
Hierarchical structure is a type of management structure that consists of multiple levels of authority. The structure can