Organizational Function Of Management Essay

1050 words - 4 pages

Organizing Function of ManagementSCA is a global multi-billion dollar international paper, packaging, hygiene and forestry company. SCA operates in more than 40 countries on five continents, and employs more than 46,000 people. We compete in several complex markets to provide a "vast array of products and services to very different groups of customers." www.sca.comLike many other companies the corporate office sets goals for each manager to follow. One monetary goal was for all managers to implement a cost reduction program at the plant level. Corporate gave each plant a chance to come up with ideas of where they could cut costs. The goal was to have at least a 2% reduction in a minimum of three areas. Once the goal was determined the planning began. Initially we got a group I like to call the administrative team together and we had a brain storming session. We all came up with several different ideas of how we could cut costs. The next step was to get the employees ideas as well as our own. Successful leadership recognizes that if employees feel like management is listening to their ideas they will be more likely to care about their job. After getting all the ideas we could come up with, I started organizing.Organizing plays an important role in accomplishing a goal. Three of the cost reduction categories deal with material and one with labor. The largest of projects is to eliminate the tape that is used to hold the pad on the steel tool. This project has required several steps and will take months to complete. One of the essential project steps is to rework the steel tools and put a lip of metal around the edges so the foam does not leak. This had to be carefully organized due to the fact that the tools have to be taken out of production to be worked on. If the tools are off the production line too long, the productions numbers will drop and we will not be able to keep up with orders. I had to make sure the person I delegated to rework these tools was competent and could get the job done in a timely fashion. This is often the case when trying to organize a project.Another of the cost reduction goals is reducing subcontracted plant wages. The employees that get brought in initially come through a temporary agency. If they learn the skills required and seem to work well with the group already here, at the end of the probationary period they are offered a full time position with the company. There are so many staffing companies available now; the hard part is not finding them, but finding the ones that are willing to meet the criteria that the corporate management has specified.To track and control the results of these projects, the corporate management has created a spreadsheet for all cost reduction plans. It includes the targeted savings, the actually savings and the variance between the two. Each month the project leader calculates the savings and enters the information into the spreadsheet. On a monthly basis, this information is sent to the...

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