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3
THE FOUR MANAGEMENT FUNCTIONS:
Planning, Organizing, Leading, Controlling
OBJECTIVE:
To understand the four main functions of all managers
C.
C.The
The44Management
Management
functions
functions
Planning
Organizing
Controlling
Defining
goals,
establishi
ng
strategy,
and
developin
g
plans to
coordinat
e
activities
Determining
what needs
to be done,
how it will
be done,
and who is
to do it.
Who reports
to whom,
and where
decisions
are to be
made
Directing
and
motivating
all involved
parties,
selecting
most
efficient
communica
tion
channel
and
resolving
conflicts
Leading
Monitorin
g
activities
and
performan
ce, ensure
they are
accomplis
hed
as
planned,
taking
corrective
actions
Leading
Leading to
to
Achieving
the
organizatio
ns
stated
purpose
1. Planning
1. Planning
5 Stage Planning Process
1. Objectives
What do I want to achieve? When?
2. Policies
Does plan contradict company policies or company
philosophy and values?
3. Procedures
how to put the plan into action, concrete steps
4. Rules
Does my plan contradict our legal obligations?
5. Budgets
How much will it cost? Do we have the capital? Will it create
cash-flow problems?
1. Planning
Lets talk a little more about fixing OBJECTIVES
They should be SMART Objectives
2. Organizing
2. Organization
Organizational Logic
Modern work is complicated
Requires specialization- often called departmentalization
Every organization needs to have an Organizational Chart
1980s
1990s
Now
2. Organizing
MODEL 1- Functional Structure- People are grouped together in
departments by common activities, skills and resource use.
Human
Resource
s
Manufacturing
Economies of scale,
Finance
When to use:
Stable,
certain
environment
Goals
of
efficiency,
technical quality
2. Organizing
Division 1
HR
Mftg
Fin
Division 2
HR
Mftg
Fin
Division n
HR
Mftg
Fin
When to use:
Unstable,
uncertain
environment
Goals
of
product/region/client
specialization, flexibility
2. Organizing
Technology
Resources &
Strategy
Div
1
Mftg
Div
2
Mftg
Div
3
Mftg
Fin
Fin
Fin
Manuf.
Manuf.
Manuf.
When to use:
Unstable
environment,
especially
in
customer/competitor sectors
Large
Goals
size
of
flexibility,
plus
efficiency in some functions
Alignment
between
corporate and divisional
goals
Helps attain adaptability
in some departments and
efficiency in others
Conflict between division
and corporate
departments
Administrative costs
2. Organizing
MODEL 4- Matrix Structure Organized like division structure, but
with horizontal teams cutting across divisions
When to use:
Very
environment
uncertain
High
bosses
conflict...several
2. Organizing
MODEL 4- Matrix Structure
President
Corporate Finance
Corporate Strategy
Business
Areas,
each with
product
coordinator
Rest of World
Division
Asia Pacific
Division
Latin Am
Division
Europe
Division
PRODUCT 1
Team 1
Team 1
Team 1
Team 1
PRODUCT 2
Team 2
Team 2
Team 2
Team 2
PRODUCT 3
Team 3
Team 3
Team 3
Team 3
3. leading
3. Leadership
Used in all social systems
TWO TYPES:
Natural (based on
personal leadership
qualities)
Styles
1. Autocratic
2. Democratic
3. Laissez-Faire
4. Consensual
1
Autocratic
Leadership Style
Considered the classical
approach.
The manager retains as much power and decision-making authority
as possible.
The manager does not consult employees.
Employees are expected to obey orders without receiving any
explanations.
The motivation is produced by creating a structured set of rewards
and punishments.
+
-Effective
-Time to decide is limited
-Can help coordination
-Helps to have high productivity
Democratic Leadership
Style
Employees are part of the decision making.
The democratic manager keeps employees informed
Requires the leader to be a coach who makes final decision, but first
gathers information from staff members.
+
-Employees share in decisionmaking and problem-solving duties.
-Employees develop a high sense of
personal growth and job
satisfaction.
-May help solve complex problems.
Helps build teams.
Laissez-Faire Leadership
The laissez-faire leadership styleStyle
is also known as the hands-off
style.
It is when the manager provides little or no direction and gives
employees as much freedom as possible. All authority or power is
given to the employees and they must determine goals, make
decisions, and resolve problems on their own.
+
-Employees have pride in their
-Some employees feel insecure at
work.
the unavailability of a manager.
-Employees feel trusted and
- Manager cant give regular
respected.
feedback to let employees know
how well they are doing.
-Save managers time and energy
Example: Investigative Journalist
Bureaucratic Leadership
The manager manages by the book.
Style
Everything must be done according to procedure or policy.
If it isnt covered by the book, the manager refers to the next level
above.
This manager is really more a police officer than a leader. He or she
enforces the rules.
+
-Useful when employees need to
understand certain standards or
procedures / working with
dangerous or delicate equipment
-Useful when employees are using
company resources.
4. controlling
4. Control
Logic
Steps
1. Planning
2. Information gathering
3. Evaluation
4. Corrective Measures
Negative Aspects
Cost
Managementtime
dedicated
each
Planning
is more important
for top
management, to
because
they
decidefunction
the organization's overall direction, which needs extensive
planning.
Organizing is more important for top and middle managers than
first-line managers because they have greater responsibility for
allocating resources.
Leading is more important for first-line supervisors, because they
produce goods/ services, and are constantly in contact with
workers, customers, suppliers etc.
Controlling is similar at all levels. This shows a common
emphasis on monitoring activities and taking corrective action.