Enterprises to be able to survive and develop stably must have an effective corporate governance system. Administration must be regular and continuous. So what is corporate governance? 4 administrative functions What is the business that you should know? Let's Johnson's Blog Find out in the article below.
What is corporate governance?
The first, corporate governance is considered a system of all policies and regulations that help to run and manage a business. From there, towards a balance between the interests of the parties involved. That includes shareholders, government agencies, partners, customers, environment, community and society as a whole.
Second, this is seen as a process of continuous and purposeful organizational impact from the business owner on the collective of employees in the enterprise. This process will be used effectively, creating opportunities to carry out production and business activities to achieve the set goals.
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4 functions of management
After understanding the basics of corporate governance, we need to learn more about the 4 functions of management that any business needs to master.
Business planning function
This function helps leaders define goals and develop strategies for businesses. It is this planning function that helps each person in the organization know the destination clearly, allocate human and material resources effectively. This function will have the following roles:
- Assess the current situation of the organization as well as resources such as human, material and budget.
- Define long-term goals such as increasing profits, revenue, increasing the number of employees.
- Build the activity needed to achieve the goal in each time period.
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Business organization function
This function is performed by managers. It requires defining what must be done, who is in charge and responsibility of the departments and who is responsible for each piece of work.
Of course, this position has the following main roles:
- Create an internal environment to accomplish goals.
- Building organizational structure and empowering each department and individual.
- Communicate information, orders, etc. to perform work as well as receive feedback.
As such, this function is considered the most important, ensuring the existence and development of the business.
Control function of the administrator
This function has the role of stimulating, motivating, commanding as well as coordinating personnel to achieve the set goals and resolve arising conflicts. This function will include guiding and leading employees to operate in the most effective and fastest way, limiting delays, backlog of work, etc.
In addition, it also helps smooth work between departments to work together towards a common goal. And when administrative function If this is effective, other functions make sense.
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Management control function
Control helps the work to be done according to the plan, ensures the quality of the work, collects actual performance compared to the set goals and makes adjustments if there are deviations.
This function not only occurs in senior managers, but even department managers and junior employees also need to check and re-evaluate their work, limit errors, etc. some of the following forms:
- Anticipated control: This is done before the activity is incurred. It helps to predict errors or situations that may occur in the working process
- Simultaneous control: This process is performed during work, controlling as well as capturing difficulties during work. From there, it can be adjusted in time
- Feedback control: This process is performed when the work is completed, helping to review and re-evaluate the achieved plan against the previously set goals. From there, draw lessons for the next activity
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Above is all information related to administration and 4 functions of corporate governance. Today, business management becomes easier when most businesses apply business management software.
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