Four Functions of Management - Outsource Technology?

Four Functions of Management - When Usednew systems.” But as ticket volumes steadily
Correctly or Poorlygrow, the IT Company decides to export desktop
Researched and Authored by: Michael J. Spindlerfunctions that can be completed remotely to a great
Over the course of this paper, the author is going tocity name Monterey in the country of Mexico.
examine the four functions of management; planning,Incredible savings to boot with a lower
organizing, leading, and controlling. We are also goingcommunication barrier issue to the English speaking
to explore some of the realities of the businesscustomer the IT Company supports in Kansas City.
world that impact, for better or worse, these four“Offshore staff offer fantastic skills but cultural
functions and how these functions affect employees,and dialect differences undermine their value in key
profitability, and the future direction of the company.customer facing roles such as call centres.”
The first phase of management is in planning. At this(Venkataraman, 2007) In the world of information
stage, the company is given an objective. For thetechnology, if a customer has reached the point of
purpose of this paper, we are going to focus on anfrustration to sit on hold while fuming over a technical
external Information Technology (IT) Company thatissue. The last dilemma a customer wants to deal
has been contracted to take over all internal ITwith is attempting to communicate a problem and
functions of the hiring company. To further narrowtrying to help the recipient on the other end to
down a rather large endeavor, we are going tounderstand. While the staff in Monterey is
narrow down this analysis to the desktop supportknowledgeable, this is yet another item on a growing
department.list of complaints towards the IT Company servicing
The external IT Company now handling the principlethe companies technically challenged employees.
company’s technology needs has the primaryNow that the IT Company has downsized the
goal of meeting the bare minimum with the highestsupport staff, demoralized them with a tremendous
rate of financial return. In planning, the IT Companywork load with little reward and no hope that there
needs to analyze, the technology needs of thewill be light at the end of the tunnel, how does this
individual customers within the organization. ThisIT Company lead the troops? It does not. This is a
would include hardware types to support, whethercompany that has poorly planned and executed a
personal computers, laptops, peripherals such asstrategy. Has no organizational structure or one that
scanners, desk side printers, and other various officebends so easily on the threats of the hiring company
related equipment. The number of customers the ITthat no employee can keep up with new direction
Company will be supporting as well directly impactsdue to lack of communication. “By "structure" I
the number of support staff that will be needed, asmean things like degree and type of horizontal
well as skill levels required to support the wide rangedifferentiation, vertical differentiation, mechanisms of
of technologies. In an ideal world, the IT Companycoordination and control, formalization, and
would be wise to have one technician per 800centralization of power.” (Borgatti, 2001)
customers supported. However, as this company isThe conclusion brings us to the controlling aspect of
looking to make a profit, we are going to increasethe function of management. While the reason for
our technicians support load to 1600 customers. Whileconducting business is to earn a profit. Any control
this may easily lead to employee burn out, inthe IT Company has is in instilling fear into the
preplanning, and with no obligation to meet a Serviceemployees to continue to produce while the
Level Agreements (SLA). Tickets from customersinformation technology market is tight. Time and
can sit in the queue for up to one month.again, this author has seen the scenario above played
Now let us take a look at further poor preplanning,out across this industry, and ultimately it is the
which leads this paper in the direction of organizing.employees, the company that was meant to be
To save more money, the IT department is going toserved that lose.
let go of an entire department consisting of twelvePlease note; this paper may have not been what
employees that handle technical refreshes. Techwas asked for. But the author believes that just as
Refresh (TR) refers to the roll over of equipmentmuch can be learned from seeing how management
that is due to be returned on lease agreements.performs poorly as well above average. By observing
Failure to return the equipment on time results in highhow co-workers, supervisors, and managers, all cogs
penalties, which are usually higher in costs than thein a wheel out of control, cope with this distress. It
actual worth of the equipment.has opened my eyes to direct impact that company
In order to do this, now we are going to strip downchoices affect everyone.
half of our desk side support team to half, down toReferences - Do Not Strip Article References
three. The other three will now be in charge ofBorgatti, S. P. (2001, October 08). Organizational
handling the full volume of TR’s. However, a newTheory: Determinants of Structure. Retrieved
problem has arisen. New models of laptops andNovember 10, from
desktops are coming in. The IT Company now needsVenkataraman, J. (2007, August 8). Don’t
to dedicate a technician to building an operatingoutsource your customers!. Retrieved November 10,
system and customizing it to meet the security2007, from
needs and standards of the organization. The ITResearched and Authored by: Michael J. Spindler
Company says to itself, “We don’t have anFree to distribute - However- Do not strip Research
SLA on tickets that the three main technicians areArticle References, remove the HTML if needed, but
working, so let us pull one of those technicians tokeep the URL text.
work on the full time project basis of building up the