Management Practices
Management Practices
Introduction
Management is an important activity for logistics firms such as JKL Logistics Company, considering that the scope of business logistics is very broad. According to Blooma, Genakosb, Sadunc and Van Reenend (2011), the management practices are considered as being contingent to any business situation in raising efficiency and setting the right track to be pursued by the business. In recent years, innovative management practices have emerged in the logistics business domain with the focus being on a two-sided relationship between customers and suppliers. In regard to JKL’s logistics management principle, management concepts have focused on the startup activities in the supply chain, how the activities create value for customers and the costs associated with the activities. It also integrates the logistics activities with other important functions such as marketing, sales, finance, and information technology. The management activities in the company typically include inbound and outbound transportation management, warehousing, order fulfillment, network design, and inventory management. Through the application of management functions of planning, leading, organizing, staffing, and controlling, the management process remains a significant part of the supply chain management as it ensures the effective coordination and optimization of all logistics activities.
The management function of planning relates to where the company seeks to be in the future and how to get there. It involves defining goals for the future performance of the company and deciding the tasks and resources that are required to attain the goals and task requirements (Blooma et al., 2011). For JKL, the development of a strategic logistics plan involves the identification of major customer segments as well as the total costs associated with the alternative logistics systems to identify the lowest cost networks. The planning function began with the identification and documentation of customer service goals and strategies. Through a customer survey, the manager was able to determine the specific needs of the company’s customers and also the performance of the company in comparison to that of competitors. Specifically, the company focused on the use of environmentally friendly practices such as the use of biodegradable packaging materials and the use of information technology applications to ensure that each department’s activities are in line with the goals of quality and effectiveness. By identifying the customers through segmentation, the company has been able to offer tailor made services to the customers to ensure their satisfaction is guaranteed.
Leading
Leading is a function associated with influencing and motivating the employees to achieve company goals. The function incorporates interpersonal facets such as resolving conflicts, effective communication, and directing others which keeps the employees motivated and willing to adopt new improved measures (Pohankova, 2010). In JKL Company, the leading function has been useful, especially when problems like technical breakdowns and machine failures emerge. For the company’s manager, when such problems have emerged, rather than calling for meetings and making demands that subordinates and heads of departments correct the emergent problem, the manager adopted an inclusive approach to discuss the issues with the heads of the departments. In the approach, the manager deliberately started conversations by noting how well the heads of departments had worked before and encouraged them to seek innovative solutions to the problems. In the process, the company has been able to establish new ways that use technology applications to ensure that problems are detected early so that system failures are reduced.
In the company, supervision remains an important function. The manager of the company has assigned the supervisory roles to the heads of departments who have been trained and equipped with a variety of supervisory skills to ensure that employees complete their assigned work activities. This relates to the directing function which is complemented by leadership aspects such as motivation and communication. The leading function is thus seen to emphasize the manager’s role in setting the tone for different departments and encouraging the employees in their work involvements to ensure that quality is maintained throughout the company.
Controlling
Controlling is the management function that deals with monitoring the activities of employees and determining whether the organization is moving positively towards its goals. The function of controlling focuses on evaluating the efficiency of internal logistics processes and finance and accounting functions to get a picture of the management of internal and external cost reports and performance indicators (Blooma et al., 2011). The manager’s pursuit in relation to the controlling function has been on portfolio management and internal audits to ensure the logistics costs are transparent. Information that relate to revenue-relevant performance indicators, as well as measurement of logistics profitability, have been made available as the manager seeks to devise new ways to create value to the customers. The information gives room for an in-depth analysis of the logistics processes and to respond to changing business conditions. JKL’s management has also focused on the area of inventory control. The company has adopted the use of computer systems and information technology systems which enable the detection of the strengths and weaknesses of the internal production processes (Gaines, Hoover, Foxx, Matuszek, & Morrison, 2012). This, in particular, has allowed the company to adjust stocks in relation to the size of orders to ensure that there are sufficient amounts of goods and resources needed to make certain that processes such as supply are effectively undertaken. Through computer systems, any imbalances in the ratio between the stocks and the orders are quickly noticed. This ensures that the company’s production, storage requirements, and supply dynamics in relation to the market remain viable.
Staffing
The staffing management function relates to the recruitment, selection, training and development, and compensation of employees. For a company like JKL with different operational departments such as warehousing, marketing, and IT among others, filling the positions is important in relation to the organizational structure. The staffing function is closely related to the human resource function which deals with hiring productive individuals and developing them to achieve the goals of the company. The management of JKL Company has been instrumental in implementing policies, particularly the promotion policy. In the policy, vacant posts are to be filled up by a promotion. In that regard, the employees already working in the company have the opportunity to reach higher posts while people from outside fill up only lower posts.
The company has also implemented policies that require the training of employees through annual seminars that are conducted for different departments by consulted experts. The training from time to time is aimed at the development of the employees. The training results in the possibility of maximum production at the minimum cost. This is one way the company has ensured that the employees not only develop their skills but are able to fill up the higher positions and perform adequately in their promotions. This also ensures that the people handling the different work-related processes and resources handle them effectively so as to improve the overall performance of the organization which is part of the planning function of the managers. To further ensure that the staffing function is achieved, the company has established a fledged department that deals with human resource development to ensure the management of the employees and their welfare in relation to the work processes. This ensures that the company not only has competent employees but also the competence is improved over time. The department also ensures that employees with personal problems find assistance which helps to keep the workforce capable and motivated.
Organizing
Organizing is a management function that deals with the arrangement of people and other resources to work together to facilitate the accomplishment of the company goals. JKL is a company that has relied on the division of labor and coordination to achieve efficiency in the logistics processes and overall high performance for the company. In the company, job clarification is an important aspect with individuals heading different departments identified. The company works through a network structure that is basically the connective patterns between different departments complemented by internet connections between departmental systems. For the supply chain system, the interest has been on the efficiency of the logistics processes. Since the company focuses on a multi-suppliers and multi-customer system, new flows often interact with existing flows in the system since they share same facilities in many cases. In that regard, the area of facility location has been able to make significant contributions to how service facilities are located. The network model ensures that communication flow is eased and people, materials, and time are efficiently used which is a reflection of good management practices (Blooma et al., 2011). The model has also been instrumental in ensuring that the lines of authority within the network structure are clearly defined. In the company, the managers of different departments generally receive complaints related to their departments and forward them to the general manager in the case that it requires further analysis and a higher level decision. This ensures that less severe issues are addressed at the departmental level, thereby ensuring that the top management is focused on more serious issues. The network systems, the interconnected systems, as well as the defined line of command and communication systems, help to strengthen the team effort while at the same time clarifying roles and processes. This ensures that customers are served fast and efficiently and problems are addressed as soon as they emerge through information sharing.
Conclusion
Management is an essential factor in JKL Logistic Company’s effective coordination and optimization of logistics services. In the consideration of the management functions of planning, leading, organizing, staffing, and controlling, the company has been able to ensure the timely accomplishment of higher-quality work and the best possible use of capital and human resources. Through the application of technology communication and management of processes, inventory control and warehousing have been achieved which has helped to maintain internal coherence and quality services for the customers. The role of the manager as a leader has also motivated employees to focus on the goals of the organization and to come up with innovative solutions to problems. Essentially, the goals of the company have been used to shape the manner in which processes are undertaken thus ensuring that quality and effectiveness remain paramount throughout the company.
References
Bloom, N., Genakos, C., Sadun, R., & Van Reenen, J. (2011). Management Practices across Firms and Countries (Working Paper 12-052). Harvard Business School. Retrieved from http://www.people.hbs.edu/rsadun/Management_Practices.pdf
Gaines, C., Hoover, D., Foxx, W., Matuszek, T., & Morrison, R. (2012). Information systems as a strategic partner in organizational performance. Journal of Management and Marketing Research, 9, 1-17.
Pohankova, A. (2010). Motivation and Decision-Making Process in Managing Change within the Organization. Human Resources Management and Ergonomics, 4(2), 125-133.
