Principles and Practice of Management: Functions, Systems Approach, General Environment, and CSR

This report discusses the principles and practice of management, including the four functions of management, the systems approach to management, components of the general environment, and the CSR approach taken by Starbucks. It also explores the pros and cons of business involvement in CSR activities. The report provides examples and case studies to illustrate the concepts.

Running Head: Principles and practice of management
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Contents
Introduction......................................................................................................................................4
Question 1........................................................................................................................................5
(a) Four functions of management.........................................................................................5
(b) Management functions are related to one another with example......................................6
Question 2........................................................................................................................................7
(a) A systems approach to management.................................................................................7
(b) The approach is practised in the organisation...................................................................9
Question 3......................................................................................................................................10
(a) Components of the general environment........................................................................10
(b) General environmental factors that can affect your business.........................................10
Question 4......................................................................................................................................11
(a) Approach took by Starbucks in its corporate social responsibility.................................11
(b) Pros and cons of the involvement of businesses in corporate social responsibility (CSR)
activities.....................................................................................................................................12
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

Principles and practice of management 4
Introduction
Management consists of the activities of setting the strategy of an organisation and coordinating
efforts of its employees to accomplish the objective through the application of the available
resources like technological, human resources, financial and natural (Koontz, 2010). The report
includes the concepts of the management with their practice and principles. In the current era,
every business practice the management as it is a growing business strategy that is intended to
help the companies that overcome the challenges of fluctuating markets and adapt to the ever-
evolving needs of customers. In the end, two of the questions related articles are answered which
are the topics of management.

Principles and practice of management 5
Question 1
(a) Four functions of management
The management is based on four main functions which include planning, organizing, leading
and controlling. Every business performs these functions that help them in performing the
business activities. These functions of management are discussed below: -
 Planning: - It is a process in which the business needs to develop the mission and
objectives of the company that is required to get accomplished. Along with this, the
planning also includes the strategies that the managers are willing to implement related to
policies, procedures, programmes and budgets (Schraeder, Self, Jordan & Portis, 2014).
This function of management helps the company to get safeguard from the uncertainty
that might occur within the organisation.
 Organizing: - This function of management is the organizational internal structure for
which the managers of the company are responsible. The manager needs to organize the
employees and the resources of the organisation. In organizing step, the company
structure plays a vital role because the managers of the company take the steps for
accomplishing the objective by providing proper guidance and responsibility to the
employees (Drucker, 2012). The managers of the team take the decision whether they
need to delegate the responsibility or not.
 Leading: - Leading is considered one of the essential function of management. In this
function, the company need to ensure that the allocated tasks are accomplished on time.
Along with this, the employees of the company follow the policies or not are also

Principles and practice of management 6
evaluated in this function. Leading process is followed by the leader of the company who
guides the employees, motivate them for accomplishing the goals.
 Controlling: - In this function of management, the evaluation and analysis of the plans
and work is done. The manager of the company ensures that proper implementation of
the plan is done in the right way (Morden, 2017). If the manager and leader of the
company found anything wrong then they can improve the same. The loopholes will be
analysed with the help of the controlling function of management.
(b) Management functions are related to one another with example
The management functions are related to one another and this can easily be explained with the
help of the considering the example of McDonald's company. The company is a well-known fast
food company who perform their operations in different countries.
This is found that the management functions importantly impact the competitive and
performance of McDonald’s. The planning function ensures that the organisation is able to
determine or select the goals. This function helps the company in forming the strategies that are
required to achieve the goals. Along with this, the company carefully plan to take the actions
because they plan for the minimum utilization of resources.
In organizing function, the McDonalds Company focus mainly on division, coordination and
control of tasks and information within the company. Managers of a company transfer the
authority to other employees (Weihrich & Cannice, 2010). The company is operating their
business at different locations due to which it is essential for them to ensure that they are able to
operate smoothly and collaboratively in different regions. The strategic plan and the structure of
the organisation monitor to ensure that they meet the needs. The organizing function takes place

Principles and practice of management 7
once the planning is done by the company. If the planning is not done then the company won’t
be able to organise the things according to the planning.
The leading function is implemented by the company as this helps in empowering organizational
culture to ensure that every stakeholder of the company should know their individual roles that
contribute to fulfilling the objectives. The leaders of McDonald’s encourage the employees to
work together as a team. This shows that leaders are willing to organize the task done by the
company. Therefore, this function is directly related to the organizing function of management.
The controlling function is maintained within the organisation by ensuring that workers are
motivated and policies are clear. This function will be performed when the leading function will
be done. This function provides the support to the company in forming and sustaining a positive
brand image. Along with this, it prevents the incidences related to the frauds and ethical
malpractices in any of the retail centres.
Question 2
(a) A systems approach to management
The system approach to management is a concept that views an organisation as an interconnected
purposive system that includes the several business sections (Kerzner & Kerzner, 2017). The
image given below shows several sections of system approach to management.

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(Source: IBM, 2018)
The entire system is divided into the 3 major parts which are input, process and output.
 Input- The system of input includes the raw material, funds, technology and others.
 Process- The process in the system approach it refers to as the activities that are related
to the management, technology, operations and many others (Workspirited, 2018).
 Outputs- The outputs of the approach include the products, results and others.
 Feedback- The feedback sections that are presented in the image shows the system that
focuses on the information and data which is utilized for executing the certain sort of

Principles and practice of management 9
operations. These feedbacks suggest the corrections for the errors that are found in
processes.
(b) The approach is practised in the organisation
The system approach is practised in the organisation in which each element of the approach is
followed. In the input process, the company make use of raw material to manufacture the
products with the optimum utilization of the resources. Along with this, the processing of the
production needs the use of the advanced technology in terms of machines that are used for
production. The products that are manufactured by the company are automobiles. The
manufacturing of the product is operations that are performed by the company. The system
approach helps the managers to manage the process of manufacturing the automobiles. The
output results in the form of a complete car or bike.
In the end, the feedback is taken from the customers who have experienced the services and
product that is offered by the company (Tanuja, 2018). The feedbacks of the customers might be
positive or negative might vary according to customers to customers and their preferences. The
customers might get influenced due to the change in the environment of the market. This shows
how the whole process of the system to management approach gets implement within the
business.

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Question 3
(a) Components of the general environment
In the management, there are generally four components of the general environment. It includes
the details related to the environment the economic, technological, social cultural and political
with legal trends that indirectly affect the working of the organisation.
 Environment and Economic- This force includes interest rates, inflation, unemployment,
atmosphere, climate changes, economic growth and many others (Therivel & Paridario,
2013).
 Technological- The technology factors are changes in technology or advancement of
technology that affect the working.
 Political and legal factors- This force includes the outcome of changes in the regulations
and laws by the government.
 Social-cultural factors- This force include the changes in the preference of people or
customers.
(b) General environmental factors that can affect your business
Being the owner of a travel agency, the two major general environmental factors that can affect
the working of the business are discussed below: -
Political factors
The political factors include different rules and regulation introduced by the government that can
affect the working of the company (Wilson & Gilligan, 2012). A travel agency is directly related
to the tourism industry because most of the travel facility is used by the tourist or by the tourism

Principles and practice of management 11
companies. The political conditions and stability are very important in identifying the image of
the destination in the different regions that can attract the tourists. This impacts the working of
the travel agency because they won’t be able to attract the tourist for those particular
destinations. The travel industry gets affected due to the warfare, terrorist attack, coups and
violence on the destinations. Political instability brings the changes in policies for the tourism
industry and for the taxes which affect the travel agency.
Technological factors
Travel agency found the major influence of the technological factors. In the era of technology,
most of the people are interested in the new technology due to which the travel industry needs to
adopt the latest technology (Hollensen, 2010). In the travel industry, the customer makes use of
the online services for booking the tickets of the destinations and for the transport which is
directly related to the travel agency. The agency should keep themselves updates and should
allow the users to make use of the online ticket booking facility. This shows that the
advancement of technology directly influences the working of a travel agency.
Question 4
(a) Approach took by Starbucks in its corporate social responsibility
The case study reflects that the Starbucks Company make use of the Corporate Philanthropy. In
this approach of CSR the company exercise by making the direct contribution to the
communities (Burch, 2018). In the case study, it is mentioned that the company opted for
Malaysia's Philanthropic project in which they connected the communities present in Malaysia.
The company helped the communities by driving the economy in the small villages by providing

Principles and practice of management 12
the support to the local produce and craft. They opened the opportunities for the farmers and
their entire community. The entire village got the benefit when they started selling fresh home-
grown bananas to the company for making pastries and selling it in the Malaysia market. This
how the company provided them with the direct benefit of earning good amount than selling it
into the other market. The company also raised RM 118,000 to form the computer centre for the
children's in the village.
In the year 2015, the company opted for the Felda Chini Timur 01 as a second project recipient.
The project includes the production of the mengkuang-based products that aim at supporting and
cultivating handicraft and local talent. It improved the boosted the income of the villagers which
provided the benefit to the company. This shows how the company make use of Corporate
Philanthropy approach of CSR in which they offer the direct support to communities who are in
need.
(b) Pros and cons of the involvement of businesses in corporate social
responsibility (CSR) activities
Pros
 The involvement of business in the CSR provides the benefits to the company as they can
complete their motive and business activities together. Though, in this case, they provide
the more benefit to the local society or people.
 Another benefit to the business is that they will be able to boost the value and
profitability of the business which is required to compete in the market (Lombardo,
2016).

Principles and practice of management 13
 The reputation of the company will improve by taking into the consideration that the
company has taken the genuine actions to support the villagers.
 The business involvement in CSR helps the company in creating the effective
relationship with the customers.
Cons
 The major drawback of the involvement of business is that the people can think that the
purpose of the company is to accomplish the project instead of helping the local
communities for the survival.
 Another drawback of the business in CSR activity is that the company has to pay a high
amount to the community for the welfare. The company need to prepare an expected
budget for the CSR activities that they are conducting with the business (Lombardo,
2016).

Principles and practice of management 14
Conclusion
In the end, it can be concluded that management concept plays a vital role for the business in
making a decision and performing the operations. The functions of the management and system
approach help the business in performing the business activities. The paper shows the details
related to the general environment that can affect the working of the business. In the end, there is
discussion related to the corporate social responsibility that is performed by the Starbucks
Malaysia.

Principles and practice of management 15
References
Burch, J. (2018). Three Approaches to Corporate Social Responsibility. Retrieved from:
https://yourbusiness.azcentral.com/three-approaches-corporate-social-responsibility-
11676.html
Drucker, P. (2012). The practice of management. New York: Routledge.
Hollensen, S. (2010). Marketing management: A relationship approach. India: Pearson
Education.
IBM. (2018). Systems Approach To An Organisation. Retrieved from:
http://www.iibmindialms.com/library/management-basic-subjects/principle-practice-of-
management/systems-approach-organisation/
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Koontz, H. (2010). Essentials of management. US: Tata McGraw-Hill Education.
Lombardo, C. (2016). Pros and Cons of Corporate Social Responsibility. Retrieved from:
http://visionlaunch.com/pros-and-cons-of-corporate-social-responsibility/
Morden, T. (2017). Principles of management. New York: Routledge.
Schraeder, M., Self, D. R., Jordan, M. H., & Portis, R. (2014). The functions of management as
mechanisms for fostering interpersonal trust. Advances in business research, 5(1), 50-62.

Principles and practice of management 16
Tanuja, A. (2018). System Approach Theory of Management: Features and Evaluation.
Retrieved from: http://www.businessmanagementideas.com/management/system-
approach-theory-of-management-features-and-evaluation/4703
Therivel, R., & Paridario, M. R. (2013). The practice of strategic environmental assessment.
New York: Routledge.
Weihrich, H., & Cannice, M. V. (2010). Management. US: Tata McGraw-Hill Education.
Wilson, R. M., & Gilligan, C. (2012). Strategic marketing management. New York: Routledge.
Workspirited. (2018). Understanding the Systems Approach to Management is Pretty Easy.
Retrieved from: https://workspirited.com/systems-approach-to-management