Organisation and Management: Purpose, Roles, Skills, and Decision Making Models

This article explains the main purpose of organisations, management roles and skills, and problem-solving and decision-making models. It also provides examples of non-profit and for-profit organisations in New Zealand. The article discusses the bounded rationality model and its application in decision making, along with a personal example.

ORGANISATION & MANAGEMENT
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A. Purpose of Organisations
1) The main purpose of organisations is to provide an enabling platform where a host of
people can together and be driven by common organisational objectives and achieve the same
under the given organisational culture and values. An organisation is a pivotal tool required
to run a host of businesses and other complex activities owing to varied skill set required. In
such a scenario, it is essential that an organisation be formed so that complex activities and
businesses can be broken down into simpler tasks where are then performed by different
individuals, teams or departments based on the complexity and size of the sub-activities.
2) One example of a non-profit organization based in New Zealand is Save the Children. An
example of for profit organisation based in New Zealand is Genesis Energy. The purpose of
Save the Children, New Zealand is to extend financial help and other resources to children in
need worldwide which face issues related to health, education, calamity and other problems.
An organisation is required in order to achieve this as there are various aspects required for
sustainable activity. For instance, with regards to Save the Children, a key requirement is to
obtain funds from various donors because only then can help be extended to children in need
globally. Thus, various functions are required to be performed in a coordinated manner which
is achieved through the organisation structure (Save the Children, nd).
Similarly, with regards to Genesis Energy, the key motive is to earn profits and thereby create
value for the shareholders. In the process, the organisation needs to conduct the business
activity which is to generate electricity and also distribute LPG and natural gas directly to
consumers. There are a host of processes which are involved in the business such as
arranging for funds for building new power plants, generation of electricity and selling the
same to the distribution companies (Genesis, nd). Hence, the organisation has been formed in
order to perform the various functions in a coordinated manner so as to achieve the objective
of profit generation.
B. Management roles and skills
1) As per Henry Fayol, there are essentially five roles of managers. One of these is planning
whereby the managers need to make plans about the future needs and growth of the
organisation. This is critical so that a vision can be charted and also various milestones are
identified which can later serve as yardsticks to measure performance. Another function is
organising which aims to ensure that adequate resources are available in order to perform the

various functions and achieve objectives. The organisational structure along with chain of
command also forms a crucial aspect of organisation. The third function is commanding
which involves the managers to given instructions or commands to subordinates so that the
requisite activity and performance expected from the employees can be met. The fourth
function is coordination which is of essence importance considering the fact that the various
activities need to be coordinated in order to ensure that the requisite output is achieved in a
timely manner. The fifth function is controlling which ensures that the performance of
employees is in accordance with the planned performance standard. In case of any negative
deviation, suitable action ought to be taken (Pratap, 2016).
2) According to Henry Fayol, the managers need to have three different types of skills in
order to discharge their roles and responsibilities. One of these is technical skills which is
required where the managers are expected to perform specific tasks. Examples include
positions such as accountant, auditor, engineers where the underlying manager is expected to
have the skills related to the concerned profession. These skills are considered quite pivotal
for first line managers who tend to be involved in subordinate training. Another skill set that
managers need to possess human skills. This is required in order to manage manpower,
understand their concerns and provide them support as and when required. This is a critical
function for most managers and thereby these skills are arguably the most pivotal as most
managers are required to manage teams and deal with various issues such as resolving
disputes and motivating the team in crisis situation. Another skill that is required is
conceptual skill. This allows the manager to present a broad vision at the organisational level
where the impact of various actions is represented on a organisation wide scale rather than
limiting to individual departments (TutorialsPoint, nd).
C. Problem Solving and decision making
1) One of the decision making models is rational decision making model which involves the
following steps.

This process starts with identifying the problem at hand which leads to establishment of the
appropriate decision criteria. Appropriate weight to various decision criteria is decided. The
alternative solutions are then generated and followed by evaluation of these based on the
decision criteria. The best alternative is chosen and implemented. After implementation, the
decision is evaluated (Chand, 2017).
Another decision making is given by Herbert Simon which is based on bounded rationality.
This basic premise is that the managers do not behave perfectly rationally as the information
possessed by them with regards to possible alternative and their respective pros and cons is
limited. Also, there are time and cost restrictions with regards to taking decisions. Further, the
optimality of the decision is also driven by the underlying intelligence and capacity of the
individual (Rawat, n.d.).
2) The bounded rationality model would be the preferable model adopted in the business
context. This is because managers are expected to take a host of decisions and it is not
possible for them to behave rationally for these decisions. Based on the underlying
importance of the decision at hand, the information would be collected and alternatives would
be evaluated. However, the bounded rationality concept would be applicable to every
decision owing to the constraints in terms of cost and time. As a result, the managers tend to
make a satisfactory decision based on the information and resources at hand. Also, like
Simon indicated, the quality of decision taken by a given manager would be driven by the
underlying skill and capability of the given manager.
3) The bounded rationality model has been used by myself in making decision with regards to
the university I should pursue my higher education from. In line with prediction of Simon, I

concentrated on limited alternatives only and then considered the various pros and cons for
each of these universities. Further, based on my individual preference, the various factors
were given arranged in decreasing priority and then by giving ranking on each of the
parameters, a choice was made with regards to the university choice. There was limited
rationality involved in this decision considering the fact that I did not consider all the possible
universities and also focused on limited aspects with regards to pros and cons which were
vital to me.

References
Chand, S. (2017) Models of Decision Making: Rational, Administrative and Retrospective
Decision Making Models, Retrieved from http://www.yourarticlelibrary.com/decision-
making/models-of-decision-making-rational-administrative-and-retrospective-
decision-making-models/25658
Genesis (n.d.) About Genesis, Retrieved from https://www.genesisenergy.co.nz/about-genesis
Pratap, A. (2016) Five Functions of Management by Fayol, Retrieved from
https://www.cheshnotes.com/2016/10/five-functions-management-fayol/
Rawat, S. (n.d.) Top 5 Models of Managerial Decision Making, Retrieved from
http://www.businessmanagementideas.com/decision-making/top-5-models-of-
managerial-decision-making/3353
Save the Children (n.d.) Who we Are? Retrieved from
https://www.savethechildren.org.nz/who-we-are/
TutorialsPoint (n.d.) Management Principles- Role of Managers, Retrieved from
https://www.tutorialspoint.com/management_principles/management_principles_man
agers_role.htm