Functions of Management

7 February 2014

Functions of Management
Learning Objectives
What is What is Management? Management?

Planning as a Function of Management

Organizing as a Function of Management Staffing as a Function of Management Directing as a Function of Management Controlling as a Function of Management Summary

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What is Management?
Learning Objectives
Define Management Management Science or Art Management in Organizations Three Levels Managerial Skills Henry Mintzbergs Managerial Roles Four Functions of Management

7 February 2014

What is Management?

Defining Management
"Art of knowing what you want to do and then seeing that it is done the best and cheapest way". F.W.Taylor

" To manage is to forecast, to plan, to organize, to command, to co-ordinate and to control. Henry Fayol

Management is the art of getting things done through others.

Management is the art of getting things done through others.

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What is Management?
Is Management a Science / Art

Management as Science Empirically derived Critically tested General principles Cause & effect relationship Universal applicability

Management as an Art Practical know how Technical skills Concrete results Creativity Personalized nature

Management is the art of getting things done through others.

Management as a science provides principles and as an art helps in tackling situations

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What is Management
Management in Organizations
Top Level
Made up of senior-level executives of an organization, or those positions that hold the most responsibility. Jobs titles such as Chief Operating Officer (COO), Chief Executive Officer (CEO), Chief Financial Officer (CFO), President, or Vice President are commonly used by top managers in organizations. These top managers are responsible for setting the overall direction of a company. Their leadership role can extend over the entire organization or for specific divisions such as finance, marketing, human resources or operations.

Objectives

Top Level

Middle Level
Report to top management and serve as the head of major departments and their specialized units. Serve as a liaison between top managers and the rest of the organization They are typically much more visible to the greater workforce than top management,

Middle Level

Low Level

Low Level

Low-level managers work most closely with the greater workforce and hold a much more interpersonal role than any of the other levels of management. These managers work to ensure that individual employees are meeting their performance goals in a way that aligns with the organizational goals,

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What is Management
Managerial Skills
Technical How to Combination of Education+Training+On Job Experience Human Interpersonal skills Help the manager to communicate, motivate and lead a set of people Conceptual The skill to solve problems in a strategic and calculated manner

Technical

Objectives

Human

Top Level

Conceptual

Low Level

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What is Management
Henry Mintzbergs Managerial Roles
coach, strategic planner, liaison, Cheerleader conflict manager, problemsolver, organizer, optimist, trainer and decisionmaker Interpersonal Behaviors assocaiated human interaction with

Objectives

Interpersonal

Informational Generate & share knowledge

Top Level

Decisional Using avaialble information to make decisions

Informational

Decisional

Low Level

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Functions of Management

Planning

1
Organizing

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Controlling

2
Directing

Staffing

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Functions of Management
Learning Objectives
What is Management Planning as a a Function Function of ofManagement Management Organizing as a Function of Management Staffing as a Function of Management Directing as a Function of Management Controlling as a Function of Management Summary

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Planning as Function of Management

Learning Objectives
What is a Plan? Define Goals, Objectives, Strategy, Mission, and Vision Examples of Vision & Mission statements Types of Planning Steps in Planning Process

Importance of Planning
Challenges while Planning

Characteristics of an Effective Plan

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Planning as Function of Management

What is a Plan?

It Involves?

It Answers

A plan is a predetermined course of action which provides purpose and direction of an organization.

Making a systematic process for achieving the organizations goals.

Questions like What, how, where, when, etc. and bridges the gap between where we are & where we want to be.
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Planning as Function of Management

Vision Clarifies long term direction of a company [where the company is going] & reflects managements aspirations for the company. Mission Statement of the basic purpose for a company's existence & its values [role towards customers, employees, society, etc.]. Strategy Course of action created to achieve a long term goal. Goals Long term aims that a company / individual wants to achieve.

Objectives
Goals Strategy

Mission

Vision

Objectives Concrete attainments that can be achieved by following a certain number of steps.

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Planning as Function of Management

Examples of Vision & Mission Statements
Vision "Our Vision is to put joy in kids hearts and a smile on parents faces." Vision "To bring inspiration and innovation to every athlete* in the world * If you have a body, you are an athlete. Mission "Our Goal is to be the Worldwide Authority on Kids, Families and Fun." Mission "To lead in corporate citizenship through proactive programs that reflect caring for the world family of Nike, our teammates, our consumers, and those who provide services to Nike.

Mission Statement "Facebook's mission is to give people the power to share and make the world more open and connected."

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Types of Planning
Strategic Designed with entire organization in mind & starts with the Mission statement Top level function Look ahead plans 3/5/10 yr Tactical Translate the strategic plans to specific plans relevant to a distinct area of the organization Middle level function

Objectives Strategic

Tactical

Top Level

Operational

Low Level

Operational Focussed on the specific procedures and processes Low level function Single use plans Ongoing plans

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Planning as Function of Management

Steps in Planning Process
Follow-up / appraisal of plans

Securing cooperation Formulation of derivative plans

Establishment of Planning Premises

Choice of alternative course of action

Establishment of Objectives

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BUSINESS NETWORK

Planning as Function of Management

Importance of Planning Why Plan?
Reduces Uncertainties

Provides Direction

Planning bridges the gap between where we are & where we want to be

Minimizes impulsive & arbitrary decisions

Resource Allocation

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Planning as Function of Management

Challenges while Planning

Difficulty in accurate Premising

Time & Cost factors

Problems of Rapid Change

External Inflexibilities

Political Climate

Policy & Procedural

Internal Inflexibilities
Psychological Policy & Procedural

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Planning as Function of Management

Characteristics of an Effective Plan
Direction For Action
Plans must be action oriented

Consistent
Plans must not be changed unless necessary. Deviations must be tracked and controlled.

Linked to Long Term Objectives

An effective plan is always based on the long term goals of an organization.

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Flexible
While plans must be consistent, they should be flexible enough to meet the demands of the dynamic environment.

Simple & Feasible

An effective plan must be simple so that it can be easily understood and followed.

Functions of Management
Learning Objectives
What is Management Planning as a Function of Management Organizing as a Function of Management Staffing as a Function of Management Directing as a Function of Management Controlling as a Function of Management Summary

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Organizing as a Function of Management

Learning Objectives
What is Organizing Nature of Organizing Components of Organizing Steps of Organizing

Benefits of Organizing

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Organizing as a Function of Management

What is Organizing?
Organizing involves: Identification and classification of the required activities Grouping of activities necessary to attain objectives Assignment of each grouping to a manager with authority and the provision of coordination

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Organizing as a Function of Management

Nature of Organizing
Composition of Individuals & Differentiated Functions Division of Work Groups Intangible

& Specialization Continuity

Management is the art of getting things done through others.

Orientation

Towards Goals

Purposeful

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Organizing as a Function of Management

Components of Organizing
Division of Labour Assigning responsibility for each activity to an individual / group. It becomes Specialization when the responsibility for a specific task lies with a designated expert in that field. Delegation of Authority Process managers use delegation to transfer authority to positions below them. Organizations today tend to encourage delegation from highest to lowest possible levels. It improves flexibility. Departmentation It is the basis on which individuals are grouped into departments and departments into total organizations.

Division of Labour

Span of Control

Components of Organizing

Delegation of Authority

Departmentation

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Span of Control It refers to the number of subordinates a supervisor has.Factors that affect span of control are Geographical Location, Capability of workers, and 24 Similarity of task

Organizing as Function of Management

Steps in Organizing Process

Building relationship between authority and responsibility

Organizinzing the activities

Classification of the authority

Identificatio of activities of the organization

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BUSINESS NETWORK

Organizing as Function of Management

Benefits of Organizing
Optimum utilization of Resources

Helps to achieve organizational goals

Facilitates Growth & Diversification

Planning, Staffing, Directing and Controlling cannot be implemented without proper organization

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Functions of Management
Learning Objectives
What is Management Planning as a Function of Management Organizing as a Function of Management Staffing as as a a Function Function of of Management Management Staffing Directing as a Function of Management

Controlling as a Function of Management

Summary

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Staffing as a Function of Management

Learning Objectives
What is Staffing Steps in Staffing Manpower Planning Recruitment

Selection

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Staffing as Function of Management

What is Staffing
Staffing involves manning the organizational structure through proper Manpower Planning, Recruitment, Selection and Orientation of people

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Staffing as Function of Management

Steps in Staffing Process
Selection

Recruitment

Identifying manpower requirements Manpower Planning

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Staffing as Function of Management

Manpower Planning
Determine Required Manpower & Analyze Current Manpower Inventory

Manpower Planning Process of identifying the no. of people required to ensure the organization achieves its defined Goals.

External Recruitment / Internal movements

Throw up gap between Required & Available

Management is the art of getting things done through others.

Define Strategy to fill this gap

Staffing as Function of Management

Recruitment Adverts
Recruitment Process of soliciting applications from the external / internal environment

External
Recruitment

Internal

Transfers

Management is the art of getting things done through others. Search Firms Promotions

Staffing as Function of Management

Interviews
Selection
Selection Identifying the right person from the pool of applicants

Selection

Assessment Centers

Management is the art of getting things done through others.

Functions of Management
Learning Objectives
What is Management Planning as a Function of Management Organizing as a Function of Management Staffing as a Function of Management Directing as as a a Function Function of of Management Management Directing Controlling as Function of Management Summary

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Directing as a Function of Management

Learning Objectives
What is Directing Components of Directing Benefits of Directing

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Directing as a Function of Management

What is Directing?
Directing is a process in which the managers instruct, guide, & oversee the performance of the employees to achieve predetermined goals. It involves: telling people what is to be done & how to do it; issuing instructions & orders to subordinates to carry out their assignments as scheduled supervising their activities; inspiring them to contribute towards the achievement of organizational objectives; and providing leadership.

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Directing as a Function of Management

Components of Directing
Supervision Supervision is overseeing efforts of employees and other resources to accomplish stated work outputs. Motivation Motivation is something that moves the person to action, and continues him in the course of action already initiated / about to be initiated.

Supervision

Communication

Components of Directing

Motivation

Leadership Leadership is essentially a continuous process of influencing behaviour. Communication Communication is the transfer of information from one person to another by transmitting ideas, facts, thoughts, feelings & values. In its absence, organisation would cease to exist.

Leadership

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BUSINESS NETWORK

Directing as Function of Management

Benefits of Directing
Attempts to get maximum out of employees
Initiates action to get desired results

Helps accepting & adapting changes Helps achieving organizational goals through effective supervision, motivation, leadership, & communication
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Functions of Management
Learning Objectives
What is Management Planning as a Function of Management Organizing as a Function of Management Staffing as a Function of Management Directing as a Function of Management Controlling as as aFunction of Controlling Function ofManagement Management Summary

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Controlling as a Function of Management

Learning Objectives
What is Controlling Characteristics of Controlling Steps in Controlling Typs of Control Techniques of Controlling

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Controlling as a Function of Management

What is Controlling?
Controlling is the measurement and correction of performance in order to ensure that an organizations objectives and plans are accomplished.

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Controlling as Function of Management

Characteristics of Controlling

Continuous Process Pervasive Management Process Forward Looking

Management is the art of getting things done through others.

Tool for achieving Organizational activities
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Linked with Planning

Controlling as Function of Management

Steps in Controlling Process

Correct deviations Identifying & communicating deviations

Measurement of Actual Performance

Comparing actual performance with standard performance

Establishment of Standards

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Controlling as a Function of Management

Types of Control
Preliminary Feed forward Control that takes place at input level the aim is to eliminate the behavior because of an unexpected result in the work performed Concurrent As the work is being performed Checkpoint observed issues can be solved and process continued

Preliminary

Post Action

Types of Control

Concurrent

Post Action Feedback process

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Functions of Management
Learning Objectives
What is Management Planning as a Function of Management Organizing as a Function of Management Staffing as a Function of Management Directing as a Function of Management Controlling as Function of Management Summary

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FIVE FUNCTIONS OF MANAGEMENT

Summary

Planning It bridges the gap between where we < are and where we want to be It helps facing future with confidence

Organizing Grouping of tasks It involves specialisation, delegation, span of control, and departmentalization

Staffing Hiring Right people for right job It is devoted to acquiring, training, appraising, and compensating employees

Directing It involves supervision, motivation, leadership, and communication It is a very people oriented function of management

Controlling It involves setting standards, measuring performance as per standards, finding deviations, and taking necessary corrective action

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Thank You!

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