GEICO Culture: Nicely’s approach to the Four Functions of Management

In the mid-1930s, at the height of the Great Depression, there werent m whatever bulk with the foresight and courage to start up a new familiarity. until now the husband and wife team of Leo and Lillian Goodwin were up to the ch anyenge. Confident that he could create a successful auto insurance business by marketing directly to c befully targeted customer groups, Leo Goodwin hammered aside a business plan during his early career in Texas. In 1936, he put that plan into action, establishing the Government Employees Insurance Companythe company known and loved today as GEICO.Few people visualise that GEICO was initially targeted to federal employees and certain categories of enlisted military officers. From the 1960s to the early 90s GEICO had separate CEOs in place entirely it was not until 1993 that the company began to change as a whole. In 1993, Olza Tony nicely was named GEICOs new chairman, president and CEO, and worked to expand the customer base through a new quad-comp any strategy. Along with it came an increased advertising budget which propelled GEICO toward much high national visibility.In all successful corporations planning is essential. Planning is the starting line and most important step in the surgical process of successfully managing a corporation. Planning activities determine an organizations objectives and establish abstract strategies for achieving them. The organizing, commanding, and jumper cable functions of management are all derived from planning. All members of management in any organization must plan. Through plans managers are able to communicate their expectations and strategic plans to achieve corporal mission.Tony Nicely, GEICOs CEO understands the importance of planning. Nicely is precise involved in the planning process and stays abreast of the corporate business stance as well as how individually practicable department plans to achieve corporate goals. Nicely meets with top management to enlarge plans for th e upcoming year. The decisions and plans made by top level management are communicated to mid-level management in the form of business level plans. Mid-level management is responsible for creating functional level plans where.The usage of this systematic approach to planning ensures that each level of the hierarchy within an organization understands the corporate mission and their office in achieving it. GEICOs planning is centered around its 7 operational principles * Respect Respect, support and provide opportunity for all associates. * Service Be fanatics for outstanding customer service. * Low-Cost Be the low-cost provider. * Integrity track down with uncompromising integrity. * Discipline Maintain a disciplined balance sheet. gainful Growth Make an underwriting profit while achieving optimum growth. * adorn Invest for total return. Organizing The second function of management is organization. We submit to organize everything we need in order to achieve our goal. We need to find people who give work on that project and we need to gather resources which we need to advance our goal. Once we organize everything we can move to the tierce function of four functions of management. Creates a structure of task and authority relationships that supports attainment of organizational goals.Organizing is the process of structuring both human and physical resources to accomplish organizational objectives. Thus, organizing involves dividing tasks into jobs, delegating authority, determing the appropriate bases for departmentalizing hoibsm and deciding the optimum numbers of jobs in each department. Leading The third function is directing or leading. We need to lead people to use the resources we prepared in the second function. Leading is probably the hardest function of all four.We need to know our people in order to lead them correctly Controlling The death function is controlling. This wizard is as any other of the four functions of management very impor tant. We first must explain what controlling actually is. This is not just controlling over workers as one might think, this is also the controlling of your programs and your goal achievement at the end. This last function enables us to improve our skills and process in future by correcting errors that happened during this cycle.