We have hit the weekend, yes! Now, let’s sit back and relax as it’s time to binge-watch your favourite series on Netflix, relishing a full bucket of butter or caramel popcorn. But do you have any idea that while you are chilling, Netflix is rapidly climbing the ladder of success by becoming the Number #1 company with each passing weekend or day, so to say? Boom! And now REALITY hits you hard and not the weekend!
According to Harvard Business project management plan, a study conducted by Innosight, the revenue of Netflix has tripled, and its revenues have burgeoned 32-fold. Moreover, its stock Compound Annual Growth Rate (CAGR) has increased to 57% yearly instead of 11% for the Standard & Poor’s 500 Index.
And now you want to know HOW? Well, let us tell you. It could all be possible because of the strong managerial skills of the company.
It was Netflix’s tactical and premeditated whim to recognise a higher-purpose mission, which helped electrify the organisation that made it what it is today. Netflix repositioned its core business altogether, and thereby, a specular hike in its financial performance could be seen. Way back in 2013, the company’s CEO, Reed Hastings, released an 11-page memorandum to all its investors and employees, stating to switch from just dispensing content digitally to become a chief producer of content that is original. And that’s when Netflix Originals came to the play!
Management has always been the essential facet of any business, be it a small-scale, medium-scale or large-scale, and it is too crucial to be overlooked. As a management student, you may be required to work on a number of different case study tasks. Should you face any difficulty, seek assignment help in uk from your professor or look through the learning resources available on your university website. The success of a company can be traced back to the way it is managed. How does management help in the success of the company? To know the answer to this question, without further ado, let’s go ahead and look into the reasons why management is important.
It is rightly said that “failing to plan is planning to fail”. Therefore, proper planning directs in laying down what, how, and when to do the appropriate things so that the long-term and short-term goals of the company are achieved. It can be seen as a daunting prospect when the entire business entity is under the manager’s stewardship, and ensuring its longevity is even harder.
Reason #1: It helps in achieving group goals
Good planning helps in a perfect concoction of individual, group and organisational goals. The efforts of each individual are directed towards the achievement of the targeted goal. Proper planning helps in following a mapped course of action towards its vision and mission.
For example, a company’s goal is to maximise the output and the revenue of the organisation. Conversely, the purpose of the employees is to get recognition and decent remuneration. Proper planning helps in aligning both by employing employee motivation strategies.
Reason #2: It helps in offering a sense of focus and direction
When the actions in an organisation are planned, it has a swift move to the singular focus. Bad planning can leave a business in dismay and panic because no one will comprehend where they are headed.
For instance, Compaq, a company that happened to be the largest PC systems supplier in the 80s and 90s, lacked its planning and headed towards the downfall. Eckhard Pfeiffer, the company’s CEO, planned to expand the business by obtaining a service occupation, Digital Equipment Corporation, which he did not keep in acquiescence with the audience and market. In doing so, the company fell short of the right track and uprightness, due to which CFO Earl Mason and CEO Eckhard Pfeiffer fell into the scandals and were obligated to quit. As a consequence of poor planning and lack of direction, it first lost to Dell and later to all other competitors. It was ousted in 1998, and in 2002, it was then bought by Hewlett-Packard.
When you are gearing towards the goal, you ought to organise the workings, including deciding on roles and creating authorities and agendas. In organising, the manager must break down the plans on counts of how they are to be executed and what resources will be required.
Reason #3: It helps in optimum utilisation of resources.
To keep up with the competitive environment, organisations need to make optimum use of resources. Effective organising skills can only do this; no one gets overburdened as there is the proper division of work. Every worker has their arena of proficiency, which upsurges their efficiency and precision in work.
For example, if good organising is done, an employee with a strong foothold in administration will be employed in that department. The same goes with a person who is good at convincing people that they will be hired by the sales department.
Reason #4: It helps in reducing cost.
Proper management also helps in combining all the aspects of productivity in an organised manner. If done rightfully, it averts waste of time and energy, thereby reducing the wastage of money spent. Hence, appropriate management helps in providing a better Return on Investment (ROI) also.
For instance, the chronicle of Enron Corporation is a perfect depiction of a dizzying fall after reaching dramatic heights. Because of a lack of management skills, the company went bankrupt. According to the report by Investopedia, the company was at its peak in January 2001 when it had earned $100 billion in revenue, and its shares were worth $90.75. The company announced being bankrupt in December, the same year when it was trading at $0.26. This ill-fate was because the company’s employees used loopholes in accounting and created untrue reports to con the debt of billions of dollars because of deteriorating plans and contracts.
Staffing is to choose, progress, uphold, and utilise personnel to acquire organisational goals effectively and economically.
Reason #5: It helps in reducing workload and getting things done.
If staffing is done effectively and competently, it will help divide the workload equally amongst the employees as per the roles they are allocated. If a particular employee is staffed in their strong position, it will be done quicker and better. And also, there will be no work pressure at the workplace, ensuring employee satisfaction as well.
Directing in management for staffing industry challenges is leading or supervising to oversee the subordinates and whether all processes are going in a planned manner.
Reason #6: It helps in strengthening communication.
Communication is a two-way track, and it helps in building so if there is good directing in a business between the leaders and their subordinates. If employees feel that they will be heard, they go to the respective senior and address their matters. Communication is one of the major contributors to how an organisation performs, and this aspect can never be ignored.
Whilst measuring and assessing the performance of numerous factors, control in an organisation aims at the progression. Controlling mustn’t be ignored or undervalued as it is a significant contributor to the success of the business’s perils.
Reason #7: It helps in sustaining the ever-evolving environment.
Controlling helps any business to sustain the ever-evolving environment. The dynamic environment has political, social and economic factors that affect the functioning of the organisation. With the change in the external environment, coordination of the firm also has to be changed, which is furthermore responsible for the growth of the business.
For instance, a businessman has opened a food joint in a market that vegetarians dominate. He has to make alterations to the menu as per the demand.
To conclude, management is, therefore, extremely significant as it can make or break any business within a blink of an eye. Good management can take the business to new heights and ahead of the curve than done otherwise. So, to help the company grow, one cannot turn a blind eye to management; it is not optional. Managerial skills are required to excel in all walks of life, and hence, it is imperative to be aware of its strength and how greatly it can impact one’s business.
Lucy Keith, an education consultant, currently associated with many clients in the tutoring industry like TutorOpedia, My Assignment Services. She loves to play football and reading books in his free time.