Discuss Fayol's four functions in relation to an Australian Essay

Discuss Fayol's four functions in relation to an Australian organization that you are familiar with. Provide an analysis of ho - Essay Example The principles used by the management include division of work, and authority in the organisation2. Division of work is the specialization that increases the output of each individual employee. Authority enables the management to give orders to the subordinates. Unity of command and unity of function are also essential in the management functions. Remuneration principle asserts that employees should receive fair wages, with stability of tenure in their employment contract. Other principles of management outlined by Fayol include the scalar chain whereby the communication flows from the top management to the subordinates and order principle that asserts that all people and materials should be at the appropriate place in the right time3. Accordingly, the team spirit and imitativeness of employees is critical in promoting creativity in work4. Planning According to Fayol, one of the core functions of management is planning. This function entails deciding the future organizational goals a nd preparing plans of achieving the goals. Planning involves determining a future course of action and taking adequate steps of achieving the pre-determined goal5. Rio Tinto is a multinational company that has a presence in Australia. Through several mergers and acquisitions, the company has expanded to become one of the leading mining companies engaged in the mining of aluminum, uranium, coal, copper and iron ore. The Management of Rio Tinto has to prepare different types of plans. For instance, there are weekly plans, monthly plans, operational plans, tactical plans and strategic business plans. At the corporate level, the company prepares long term plans that extend more than ten years. The strategic plans include the diversification of operations and long term commitment to expanding operations in different continents. The company also prepares yearly plans that entail the expected profits and costs of operations during the year. The tactical plans of the company mainly focus of functions such as mine prospecting and exploration. Tactical plans are prepared for each department such as employee recruitment and remuneration plans, financial plans, and mining department plans. The operational plans are mainly prepared by the first level managers and outline the activities and accountabilities of the specific managers. Other plans that are common at Rio Tinto include weekly plans and daily plans of mine exploration, with accompanying details of activities to be undertaken by each employee and the supervisors6. Planning entails defining the current situation, establishing the objectives of the plans, and developing an action plan for attaining the goals7. Other elements of planning include budgeting, implementing the plans and controlling the plans. Planning should also forecast the aids and barriers to the goals of the organisation. For instance, some of the aids to achieving planned objectives in Rio Tinto include well qualified personnel and superior technol ogy. However, some barriers to planning at Rio Tinto include complexity of the plans due to unforeseen uncertainties like a possibility of cancellation of the mining rights and contracts in many jurisdictions. Some of the factors that influence the planning function in Rio Tinto include political factors, environmental factors and government control over the mining industry in many countries. Planning is important in any organisation since it enhances