free essays
Free essays




Everybusiness and organization requires an understanding of managementtheory and concepts before starting up, as this provides a foundationfor best business practices. Management theory and concept stresseson the need for effective planning to ensure that a business ororganization increases its service quality, productivity, and meetsthe set goals (Coffey, 2010). The understanding and knowledge of thetheories and concepts will enable me to begin a small advertisingagency, whose objective is to promote sales of the organization’sclients. More so, as the manager of the advertising company, I amplanning on implementing effective management theories and strategiesin the workplaces that will motivate employees, increase mutualunderstanding, improve decision making and reduce conflict.Attainment of the advertising company’s goal will be achieved in aneffective way of operation through planning, organizing, leading, andcontrolling. This research will analyze the four functions to ensurethat the new business maintains global competitiveness.


Planningwill include identifying and setting goals for future organizationperformance, and defining the actions necessary to achieve them. Inthis case, the company will create an organization culture that willprovide guidance for morals, values and behavior. Creativity andinnovation are important elements in advertising. Therefore, thecompany will create a culture that encourages creativity, and onethat employs new innovative and creative minds that are familiar withthe changing environment and advancing technology. The organizationculture of the advertising company will include a formal process suchas job descriptions, implementing policies and procedures relating toworking hours and establishing employee benefits.

Agood understanding of the business environment is an essential aspectthat leads to the success of the business. The most commonenvironmental factors that are likely to affect the advertisingcompany is the increased level of competition, physical environmentand the local government. Advertising companies continue to faceincreased competition from internet advertising companies and thosethat sell product and services online. Physical barriers areexperienced in the form of poor infrastructure and poor network.Thus, some advertisements may not reach the target market in suchgeographical locations.

Thereis a need to realize any competitive advantage as it will give theadvertising agency an edge against the rivals. The main competitivetools that the company will focus on the use of the internetincreased creativity and innovation, pricing, customer relation, aswell as offering quality services. Creative talent is a fundamentalstrength in any advertising company, and it is known to be the heartand soul of advertising services. The culture of creativity in theagency should lead to the active participation of new ideas that arealso crucial in producing quality service and maintaining customerrelation. On the other hand, the company will use pricing strategiesthat will minimize losses. In this case, the price of the servicemust cover the cost used when bringing it to the customer. More so,the agency will study competitors in order to learn what they arecharging, and in turn, charge within a reasonable range of thecompetition.

Makingkey business decision should revolve around ethical consideration.These decisions may include reconstructing the company, forming analliance and using new channels of marketing among others. However,the decision should require the knowledge of the businessenvironment, use of reliable information, and improvedresponsiveness. Many organizations hold that information is a keyelement, while making business decisions and innovation. Thus, beforemaking decision, it is crucial to acquire information on customertaste and preferences, the internal and external environment, and theeffectiveness of the current marketing strategies. When theinformation is obtained, the decision maker respond immediately toensure that breaches do not occur.

Goalsact as a source of motivation in an organization for employees. Thus,setting the goals requires that they correspond to the objective ormission of the company. The goals should be evaluated at the onset ofthe task, and should be clear and brief, attainable, appropriate,measurable, easy to evaluate or measure, and specific. This will helpprovide an effective mechanism for evaluation and control.


Anorganizational design offers a basic guideline, theory, and themethat shape the final structure of the organization. Designing theadvertising agency structure would first require consideration of thecompany value’s, business and financial goals. After thisevaluation, the company will apply designing principle that includedecision-driven and product driven leadership. In product leadership,the company should support new ventures that exploit innovation,encourage team work and sharing of information across groups, andconstantly encourage product innovation. On the other hand, as adecision driven organization, the agency must improve decision makingby prioritizing on value, establish clear roles of accountability,clear the bottlenecks in its decision making, and act on decisionsmade.

Effectivecommunication is vital as organizations achieve their strategies,goals and outcome through communication. There are various wayswhereby the company can communicate with its employees, customer andsuppliers. Communication may include the use of e-mail, video, officeparties, staff meeting, posters, electronic bulletin boards, memos,and publication boards among others. These methods should beeffectively used to inform employees, customers or suppliers changesor improvements in operations, and communicate the way in which theycan be affected.

Humanresource management is an increasingly essential function in manyorganizations. The principle objective of managing human resource inthe new agency business is to enable administrators and departmentheads to integrate organizational and employee needs. For thisreason, human resource activities should be considered necessary inorder to ensure the recruitment, training, compensation, safety andhealth, performance management and development of employees in thecompany. These activities can be managed through various approaches.For instance, the organization invest in training of new employees asthe most effective way of recruitment and selection, as well as,offer competitive salaries and benefits.

Everybusiness operation takes place in a dynamic environment that impactschange. For this reason, the manager of the company should understandthe need to manage change and innovation. One way in which change canbe managed is by ensuring the agency is built on a culture flexibleto respond to external development quickly. In addition, the companyshould open to accepting changes and, therefore, foster anorganization culture that encourages innovation and embraces recenttechnology advances. Another way in which the agency can managechange in innovation is by providing employees with training in orderto increase employee skill and knowledge so that they can meet thedemand of the new change.


Havinga considerable leadership style leads employees to experience lessjob stress. Employees in an advertising agency, as well as, graphicartists need to brainstorm creative approaches for advertisingcampaigns. Thus, these employees may not be accustomed to directiveleadership style as it may constrain their creativity. For thisreason, the agency will use democratic leadership style. The use ofthe democratic leadership will encourage employee participation inthe process of management, by seeking the ideas, thoughts and bygiving them the opportunity to use their problem solving abilities.Therefore, employees are more likely to operate well under thisleadership style because it recognized that everyone has good ideasand seeks the input of all workers.

Leadershipissues vary in organization. However, some of the common modernissues in leadership include globalization, the advancing innovationsin technology, changing demographics, and economic shifts amongothers. As a leader of the agency, I should be able to deal withthese challenges by adopting current technology, implement employeetraining, and employee competent and skilled employees. The companycan establish an in-house training program geared for employee toensure that they are up-to-date with the latest technology.Alternatively, the company may hire employees who are highly skilledand creative to avoid incurring extra cost on training. Other ways of overcoming leadership issues, which include encouraginginnovation, facilitating open communication and creating team unityamong others.

Employeemotivation is a key building block for the long-term success of anyorganization. Studies have observed changing employee behavior as aresult of encouragement and motivation. Therefore, the advertisingagency plans on encouraging and motivating its employee in variousways including rewarding and public recognition, offering cash andfinancial incentives, gifting employees, and by showing and telling.The manager should come up with these forms of motivation toencourage ethical behavior, attain organization goals and attain ahigher level of moral development.

Effectiveteamwork and cooperation are essential in all aspect of life, andespecially in the new advertising agency. The company`s ability toincrease the successful functioning of teams will be an importantfactor. Researchers have observed that often, efforts to form teams,with good intention, fail to improve performance because of a lack ofvision and failure to accept the common goal. However, theadvertising agency hopes to develop effective teamwork by encouragingand ensuring team members are committed to working with each other tomake decisions, achieve the team purpose, and hold each other jointlyaccountable for the team’s purpose. Furthermore, the organizationwill ensure that the employees are aware of the importance ofteamwork and that it requires team related knowledge, work-relatedskills, as well as, team related attitudes. These competencies areessential because they correlate with successful job performance.


Themanagement should function to ensure that employees are coordinatedand directed in order to increase performance and achieveorganizational goals. The manager of the advertising agency should,therefore, monitor organization performance and then compare theactual performance with the set goals. This monitoring, comparing,and potential correcting takes place in the controlling function. Thecompany can monitor performance in monitory terms by evaluating thereturn on investment or net earnings. On the other hand, The Companywill apply various methods of monitoring including contextmonitoring, strategy monitoring, activity monitoring, impactmonitoring, impact and catalysis. These methods of monitoring ensurethat the company maximizes on its productivity, quality andresources.

Theorganization hopes to the general tools and techniques of qualitycontrol, which include the cause-and-effect diagram, control chartsand run chart among others. The cause-and-effect diagram will helpthe company to trace complaints concerning quality problems anddetermine the root cause of the problem. The cause-and-effect, alsoknown as the fishbone diagram, allows determining the root cause,which would have a significant impact on actions taken to solve theproblem. The use of control chart helps to illustrate the result of aprocess within a period of time, which helps to determine whether theprocess is in or out of control. Lastly, the use of the run chartsis crucial as it displays the history and pattern of variation of theprocess over time. The company will use run charts to perform trendanalysis for forecast future outcome based on historical results.

Highquality service has an enormous impact on productivity and profits ofany organization. To ensure high quality production and service, theagency should utilize the rapidly advancing technology in themanagement operations, respond to the changing market conditions anddemand, as well as, create a culture of quality performancethroughout all operations of the enterprise. Management operationsthat maintain high quality products and services allow the company toincrease market share and meet customers’ satisfaction, which leadsto customer loyalty. In fact, loyal customers ensure solid customerbase, buy more and recruit new customers. As a result, it is relevantfor the management operations should maintain high quality even inthe case of stiff price competition.


Today,starting a business requires strategic management that focuses onmanagerial decision and actions that determine the long termperformance of the company. The organization manager should allowinnovation, flexibility, professionalism and training among others.More so, there is a need for strong communication skill,understanding of employees, and the ability to develop goodinterpersonal skills in order to maintain proper relationships in theexternal and internal environment. Mostly importantly, the awarenessof the fast changing technology and innovation should be vital astechnology has a great influence on operations.


Coffey,G. W. (2010). ASystems Approach to Leadership: How to Create Sustained HighPerformance in a Complex and Uncertain Environment.Berlin: Springer.