The paper “ Strategic Planning and Other Essentials of Management” is a motivating version of a case study on management. Efficient management not only plays the role of improving a company’ s general operations but is also a prerequisite for enhancing productivity. Accordingly, all managers must continually seek to improve these aspects to improve the outcome of activities within the firm. This discussion seeks to establish the importance of efficiency and effectiveness within the organization by focusing on a real organization. The manager I interviewed is the Director of Strategy for SP Austen, Mr.
McCarthy**. SP Austen is a private electricity and gas transmission and distribution company responsible for servicing over a million customers in Australia’ s South East. SP AusNet also undertakes select solutions to customers which include management of energy, water, and environmental needs. The company which employs approximately 1,500 employees manages a $6.3 billion network of electricity and gas. SP AusNet is a member of the larger multinational company known as Singapore Power. 51 percent of SP AusNet is owned by Singapore Power’ s wholly-owned subsidiary, Singapore Power International Pte Ltd.
The company is registered on the Australian Securities Exchange. SP AusNet is known for its consistent commitment to its customers, who include both corporate and individual customers hence its popularity in the market. SP AusNet is to a large extent a market leader in the Australian energy market. Mr. McCarthy’ s work mostly involves facilitating strategic planning; ensuring that organizational goals are met through ensuring that deadlines for compliance are met; guiding decisions and making recommendations; making reports on energy trading to the Electric Commission; networking with energy experts and general coordination of information and duties aimed at making the company successful.
All these culminate ineffective strategy design aimed at achieving the organization’ s objectives. As a result, his role is of great importance to SP AusNet. He is highly involved in the development of external networks, negotiations on behalf of the company and information transmission both within and outside the organization. During the course of his work, there is significant use of technical skills and knowledge as well as the need to work with individuals and groups. Furthermore, he is an energy compliance expert and has led an emissions-trading project involving 100 people.
The organization is in the service sector and is considered to be large (100+ people). The role associated with this manager is thereby demanding hence the need to develop work skills to enhance efficiency and effectiveness. McCarthy is also given the responsibility of allocating resources through allocating tasks to employees and plays a major role in searching for new opportunities in the company’ s environment. The relevance of achieving efficiency and effectivenessEfficiency and effectiveness are highly imperative in the management work of the manager.
As a matter of fact, they have often considered the foundations of organization success and hence given significant importance. Efficiency is defined as the process of doing things right and is basically a minimum condition to enhance survival in a company after the achievement of success (Koontz and Weihrich, 2006). It is concerned with resource usage, such that the management strives to attain low wastage. On the other hand, effectiveness denotes doing the right things. It is concerned with goal attainment, such that the management strives to enhance high attainment (Koontz and Weihrich, 2006; Jalham and Abdelkader, 2006).
Overall, managers strive to enhance low wastage (high efficiency) and to promote high goal attainment (high effectiveness). These concepts are interrelated in that a successful business with great effectiveness may collapse due to poor efficiency. Similarly, the most efficient business is not capable of surviving if it lacks effectiveness. Notably, the role of a manager requires a proactive approach and strategy in order to achieve the company’ s objectives, hence the reason why effectiveness and efficiency are imperative virtues for McCarthy to enhance in the course of his work.