Function_of_Management

Management Planning of Tyco Myra Stilwell MGT/330 - Management: Theory, Practice and Application September 1, 2012 Peter Espeut Tyco International is a diversified company that provides security products and services, fire protection and detection products, valves and controls, and other industrial products worldwide. Its headquarters is located in Schaffhausen, Switzerland and employs approximately 102,000 people that are based in countries such as America, Europe, Africa and ,the Middle East. As of September 2011 Tyco recorded revenues of $17.3 million, which was an increase of 2% over Fiscal Year 2010. Tyco's operating profit for the fiscal year of 2011 was $2.1 million. This was an increase of 32.6% over the Fiscal Year of 2010, and finally Tyco had a net profit of $1.7 million in the Fiscal Year of 2011 and this was an increase of 53.1% over Fiscal Year 2010. (Tyco International Ltd. SWOT Analysis) Tyco's management is a big part of their increase in profits and also affects their employees and the countries they are working out of. Tyco has internal and external influences, such as the environment which is also a legal issue for Tyco. The strategic, tactical, operational and contingency plans can help control and manage both internal and external issues. Governance will allow Tyco to manage internal issues. A large internal issues would be employees. Governance helps Tyco use practices that involve the employees. These practices would include policies, job descriptions and understanding between the company and the employee so that each of them knows what is expected of the other. Since Tyco is a worldwide corporation they use Horizontal Structure. This Structure would give them the capability to govern all of the individual divisions under the same concepts, goals and plans. Once both company and employee understand their roles they will be able to implement plans and goals that are set to meet the needs of the customers. Tyco understands that the customers' needs are the top priority, but Tyco has to create a plan that withholds the company standards and also gives the customer what they want. The growth and ethical behavior of Tyco and its employees can depend on the policies they decided to put into place. Evaluating performances of the employees will give the management and overview of the work being completed. This knowledge will then lead to continual growth and improvement for the company. Evaluation shows management the weak areas and also the areas that the company excels in so as to give management an idea of where the focus needs to be. Policies can also aid in the ethical behavior of employees. These policies can range from the use of Tyco's name and logo for corporate use only to the point of practices that are performed in each position that Tyco has. These practices can be described as the exact job description of the position and who they report to. Policies can dictate the behavior of employees towards each other as well as how they are to report financial spending and property use. This can help eliminate misuse of funds, property and even employees by top level management. Employees are the cornerstone of Tyco. Employees implement policies, hit and maintain plans and goals and also recruit other employees as well as finding new customers. Tyco motivates their employees by using teamwork, training, open communication and management involvement. Training helps employees create a product that can be marketed and sold in several countries. Teamwork is used to make employees feel like they can depend on each other and also creates a working environment that runs smoothly with little tension. Open communication and management involvement helps with motivation by letting the employee know that they are a vital component to the company and that their ideas and voice want to be heard. Putting all of these items together and you will get the operating practices of Tyco and how they expect to keep growth maintained within the company. Tyco ensures that earnings and revenues are met on investment by using financial strength and flexibility. Using investment in a productive way will maintain the support of shareholders. Financial records keeping should always be correct and accurate. This helps prove that the company is growing and moving in a direction that investors and management had planned. Keeping a company flexible also shows that the company can be prepared for any turns the market may have or wants/needs the customer may come up with. Tyco makes sure that their financial and flexibility goals are met on the investment of the company and that the investors are kept up to date with all the information. This helps the investors feel comfortable that their investments are being spent correctly and also that they will make a profit. Unfortunately, not all management can be ethical with money. Top members of management for Tyco were convicted of Grand Larceny, falsification of business records and conspiracy. This type of legal issues can bring a company to an end. Tyco had to prove that this was not common practice in the company. They did this by paying back the shareholders what they were entitled to, making changes in management, training and policies. The shareholders have to be certain that the company is making the proper changes regarding the way the finances are being maintained within Tyco. The best way to do this is by Tyco have a solid financial plan that includes new policies, audits and management involvement. With these new vices in place Tyco stood a great advantage of future success with the shareholders. Tyco is an example of a company that has functions of management as a strong force in the company. The success of Tyco is based solely on the successful implementation of strategic, tactical, operational, and contingency planning Tyco has been able to grow and remain profitable, produce and provide world class service for a worldwide market, find and correct legal issues, and be a company that is among the top organizations to work for. Being able to guide their employees with expectations, goals, and information has guided them from errors in record keeping to raising the net profit in one year time. Tactical and operational planning has improved and maintained the integrity of both the security services and also the industrial products that are used and sold worldwide. Contingency planning has giving the shareholders the affirmation that the ill judgment of the past will not be repeated in the future thus keeping financial availability flowing into the company. References Company Profile Tyco International. (2012,May).marketline, Retrieved from http://www.marketline.com http://nytimes.com/2007/07/07/business/07tyco.html'_r=1&oref=slogin http://www.tyco.com