Functions of management

Faculty of Information Management

Bachelor Information Management

(Information System Management)

(MGT420) Principles And Practice Of Management

Group Assignment:

The Functions Of Management

Prepared for:

Puan Hjh. Sobariah Awang Mukhtar

Prepared by:

Arnold B. Hajihil (2012809116)

Mc Rayner Vandame (2012637626)

Submission date: 23 Oktober 2012

arnold_hajihil/uitmpuncakperdana/im225

CONTENTS

What is management ?

The definition of management…………………. 02

Theoretical scoupe……………………. 03

In short………………………… 03

The functions of management.

Basic functions of organization management ……………….. 04

Departmentalization in an organization.

The definition …………………………………………………….. 05 - 06

Types of departmentalization and the process ………………07 - 14

Controlling.

The definition ………………………………………………….. 15

Pre-action control (feed-forward) ………………………… 16

Steering control (concurrent) …………………….. 16

Screening control (yes or no control) ………….16

The barriers to effective communication.

The definition ………………………………………………….. 17

The several barriers in effective communication …………. 18 - 21

Goals in planning.

The definition …………………………………………. 22

Several types of goals in planning …………… 22 - 23

Islamic management :

The definition ……………………………………….. 24 - 25

The principles of management in Islamic………. 26 - 28

References


What Is Management ?

The verb manage comes from the Italian maneggiare (to handle — especially tools), which in

turn derives from the Latin manus (hand). The French word mesnagement (later ménagement)

influenced the development in meaning of the English word management in the 17th and 18th

centuries.

Some definitions of management are:

Organization and coordination of the activities of an enterprise in accordance with certain

policies and in achievement of clearly defined objectives. Management is often included

as a factor of production along with machines, materials and money. The basic task of a

management is marketing and innovation.

Peter Drucker (1909–2005)

Directors and managers have the power and responsibility to make decisions to manage

an enterprise when given the authority by the shareholders. As a discipline, management

comprises the interlocking functions of formulating corporate policy and organizing,

planning, controlling, and directing the firm's resources to achieve the policy's objectives.

The size of management can range from one person in a small firm to hundreds or

thousands of managers in multinational companies. In large firms the board of directors

formulates the policy which is implemented by the chief executive officer.


Theoretical scope

“considers management to consist of six functions: forecasting, planning, organizing,

commanding, coordinating and controlling.”

Henri Fayol (1841–1925)

"the art of getting things done through people".

Mary Parker Follett (1868–1933)

Management as equivalent to "business administration" and thus excludes management in

places outside commerce, as for example in charities and in the public sector.

English speakers may also use the term "management" or "the management" as a collective

word describing the managers of an organization, for example of a corporation.

IN SHORT ...

Management in all business and organizational activities is the act of getting people together

to accomplish main goals and objectives using available resources efficiently and effectively.

Management includes planning, organizing,staffing, leading or directing,

and controlling an organization (a group of one or more people or entities) or effort for

the purpose of accomplishing a goal. Resourcing encompasses the deployment and

manipulation of human resources,financial resources, technological resources and natural

resources.


The Functions Of Management

Basic functions

The various functions on how management work and operates in an organization :


PlanningDeciding what needs to happen in the future and generating palns for action.

OrganizingImplementation of pattern of relationship among workers, making optimum use of the resources require to enable the succesful carrying aout of plans.

StaffingJob analysist, recruitment and hiring for appropriate jobs.

Leading/DirectingDetermining what needs to be done in a situation and getting people to do it.

Controlling/MonitoringChecking progress against plans.

MotivationMotivation is a kind of basic function of management, because without motivation, employees cannot work effectively.If motivation not take place in an organization, then employees may nit contribute to the other functions( which are usually set by top-level management

Departmentalization In Organization

The definition

1. An organizational structure defines how job tasks are formally divided, grouped, and coordinated. Departmentalization is one of the major way to classify all of the task. Departmentalization refers to the process of grouping activities into departments, which is divided the jobs up through work specialization.

2. Departmentalization happens when the economy and structure of organization being developed and dynamic. Instead of to specialize the works and tasks which could be performed over and over again. This is because, all the activities and tasks job are in the organization expanding according to it goals and planning. Therefore, the reconstruct the department and reunite it in a certain and smart division or department will increase the capability of the system in the organization.

3. Which means, in an organization, the main administrative parties need to depart or divide its tasks jobs and avtivities in more specific, complex and responsive. They need to group and bound these jobs together so that common tasks can be coordinated and organized. This is because, in the way to achieve the goals, they must be maximize its power of organization, and at the same time to minimize its time production of results.


4. Following chart is the example how the organization had been departmentalize and the effectiveness and efficiency of its works and tasks job :

5. Based on the chart above, we can conclude that the departmentalization put the input inside the organization under the same department even the other department still in their own task and activity. After departmentalize, we can see that store management now handling three extras function which are manufacturing, production and distribution. As a result, the organization can achieve an efficiency or work and activity of economy.

6. Besides, the managerial work can be minimize because of there are several tasks under its mangament. For example, the person who handling the store management will carry out the other three functions such as manufacturing, production and distribution. These three functions are hold by certain manager or supervisor, which receive order from managerial of store management. So, the organization do not worry to set up more department to manage and reach out these three functions.


CEO

MARKETING STORE MANAGEMENT

MANUFACTURING DISTRIBUTION

PRODUCTION

FINANCE

7. Based on the organization millennium structure, there are several and common

types of departmentalization and how its transforming the organization :


Geography structure

Product structure

Customer structure

Process structure

Functional departmentalization .

A manufacturing manager might organize his or her plant by separating engineering,

accounting, manufacturing, personnel, and supply specialist into common departments. This

kind of departmentalization can be used in all types of organizations because its on ly reflects

the organization’s objectives and activities. Functional departmentalization seeks to achieve

economies of scale by placing people with common skills and orientation into common units

or sub-coordinates. For example, human resources, IT, accounting, manufacturing, logistics,

and engineering.

A basic functional structure.

In this case, the business functions had been separated in by few departments. This is

because of efficiency. The organization must structuring its function to gets its efficiency

from economies of scale in each function. Because there are cost savings when a large

number of people do the same job at the same place. For example, enable to locate all

marketing or manufacturing people in subunit, with one staff support group, one telephone

system, and one management system.


Headquarters

Research and Development Production Marketing Accounting

and Finance

Product departmentalization.

The organization with the greater value of products and the target of marketing is same, will

centralized its maintainance services and departmentalized its products. Usually, the

organization use this kind of departmentalization are food manufacturers, furnitures, and

products of body care. The departmentalize would be divided by its kind of products, the

deliverance, and the distribution. Each department will be lead by a manager or supervisor.

They will coordinate their activities in department.

Each major product is placed under the authority of an executive who has complete global

responsibility for that product. This will increased the accountability for product

performance, since all activities for specific product under the direction of a single manager.

For the organization which produce many kind of products will departmentalize its products,

even the tasks and activities are quite same.

Following are the chart of how to departmentalize the products.


CEO

Frozen Food Department

Instant Food Department

Canned Food Department

Vice Pressident of R&D

Vice Pressident of Source

Management

Vice Pressident of Sales & Marketing

Vice Pressident Of Finance

http://en.wikipedia.org/wiki/Product_(business)

While this kind of chart tells a basic product structure based on the categories of food.

R&D

Manufacturing

Marketing

Accounting and

finance

R&D

Manufacturing

Marketing

Accounting and

finance

R&D

Manufacturing

Marketing

Accounting and

finance

R&D

Manufacturing

Marketing

Accounting and

finance

Based on the chart above, the organization is lead by headquarters which monitored 4

departments. The departments sort by the types of product that is A,B,C and D. Each

department have sub-department consist R&D process, manufacturing, marketing, accounting

and finance. The product departmentalization is to divide its product into department, but the

product running the same tasks job and process. This is showing that departmentalization on

product will increase the number of production and using of manpower.


Headquarters

Product Group A

Product Group B

Product Group C

Product Group D

Geographic departmentalization .

For the company and organization whaich are operate in many areas and regions are very

suitable to use this kind of departmentalaization. This is because, when the organization

wanted to expand its market and sales to certain target, they need to open a new branch and

franchais in some area or place. Also, they need to reconstruct the organization structure

based on the number and nature of customer in the area to stablize the core competency of the

organization. This kind of structure will allows the organization to centralized some of their

function or division in office state and put the rest of function into the territory state. The

geoghraphic structure sets up a mini-functional organization in each region. This is what

happen when the organization departmentalize its geographic function,

Based on the chart above, we can see how the departmentalization change the basis of

geography or territory, when four different places are centred or monitored by the main

offices which is called as CEO headquarter. The sales function would be everywhere such

western, southhern, Midwestern, and eastern regions. The organization does this

departmentalization according to the demands of customer on the service or products in the

place.

Export structure


CEO Headquarter (HQ)

Operation Area C

Operation Area B

Operation Area D

Operatrion Area A

http://en.wikipedia.org/wiki/Geographic

Export structure is used by the wide range of sales and marketing organization and company

to separate its export functions from the other functions. This is because, exporting structure

are involving international sales, so, they need the investment oh human and financial

resources. The export department deals with all international customers for all products. In

this department, there are several sub-unit which consist pricing and promotion, data of

country or product expertise. Entirely, the departmentalize of export functions will reorder its

units under main of department. We can see how the departmentalization take place in export

structure.

According to the chart, the organization had been done a good structutre. This is because,

export department is placed under the task job of headquarter. So, the R&D, Production,

Marketing, and Accounting and finance deparment are still doing their own job. Separating

the export department can create an excellent goals and planning of this department, without

exterior distruption. The exportment department did the tasks job that are related to the

internatioanal sales and customers, and not more than that.


Headqurters

R&D Production Marketing Accounting & Finance

Export Department

Overseas Sales Force

Marketing structure

Marketing is one of the major structure in an organization. In order to renew the structure, its

also need to departmentalize. This is because, marketing got its own criteria and category of

tasks that need to be done. The marketing structure is put under a headquarter or CEO. Then,

separate its based on the types of marketing that organization provides. This structure able to

stabilize the skills and activities of organization to focus on the demands of customer that

comes from different background. Each group of customer have different target on

marketing. So, every functions in the organization needs to design a better products and

services which can attract and gratify the necessity of the marketing. Chart below shows how

the departmentalization run in the organization.

Customer departmentalization.


Headqurters

Commerce marketing

Customer marketing

Government marketing

CEO

http://en.wikipedia.org/wiki/Customer

In this case, the organization needs to structuring its customer services that are provided.

Customer refer to the group of people who seeks for advisor, specialist or expertise in several

field to solve their problem or help them in any situation. To maxixmize the number uf

customer that are looking for services, the organization needs to make its customer service

function very well and effective. So, the organization organized one department that special

for customer. This department only do thing that related to customer, including customer

interest, demand, problem and many more.

The component of corporation may be grouped according to the type of customer served by

the organization. The assumption is that customers in each department have a common set of

problems and needs that can best be met by specialists. The sales activities in an office supply

firm can be broken down into three departments that serve retail, wholesale and government

accounts.

Process departmentalization.

Process refers to the how the organization does their service and task job systematicly and

what are processes that involved. This is the reasin why all organization departmentalize their

process management. They put the structure under specific department to easier the process

run. The organization realize that some process need special threatment and monitoring,

especially on the heavy activities, which required more process and cost and need to be

managed by experienced people. Because each process requires different skills for different

process. As a result, the organization have to allows homogenous activities in process

departmentalization. Because the process might be repetitive and need to be handled by the

same functions or unit. For example, the applicants might need to go through several

departments namely validation, licensing and treasury, before receiving the driver’s license.


Controlling

Definition

Controlling defines as processes that measuring the improvement or progress of the

performance that are planned by the organization to ensure it is consistent and

appropriate with the manager’s objective. Controlling is the last function in

organization management after planning, organizing, and leadership.

Robbins and Coutler, 2002 said that controlling is about monitoring activities process

that carried out by the organization to ensure it is done based on the planning, and

improvising some of the significant deviation.

If the controlling is not suitable or comfortable with the organization, will lead to the

out of control of disciplinary problems and the goals will not be accomplished. While

the efficient and effective controls will resulting satisfactory among the workers and

the relationship between staff and manager will not loosen.

Due to the controlling process, the management of organization needs to make sure

the workers doing their assigned task job,overcoming the problems, encourage

creativity, evolves the quality and minimize the cos of organizatuon. There are several

types of controlling identified in an organization to achieve their goals.

The simple process of controlling as follows,



Preventive control sometimes called preliminary control or feedforward controls focuses on the regulation of inputs that is human, material, and financial resources that flows into organization to ensure they meet the standards necessary for the transformation process. Preventive control attempt to identify and prevent deviations in standards before they occur.

Pre-action control (Feed-

forward)

Concurrent control take place while an activity is in progress. Concurrent control monitor ongoing employee activity to ensure consistency with quality standards. These controls rely on performance standards, rules, regulations for guiding employee task and behaviour. The purpose is to ensure work activities produce the desired result.

Steering Control

(Concurrent)

This type of controls focuses on the outputs of the organization after transformation is complete. Feedback provides manager meaningful information on how effective its planning effort was. If planning indicates little variance between standards and actual performance, this prove that planning was generally on target. If deviation occur manager can use this information when formulating new plans to make them more effective. This controls also provides motivational information to employees.

Screening Control (Yes Or No

Control)

The Barriers To Effective Communication

The communication refers to the evoking of a shared or common meaning in another person.

The communication become effective when speakers be expressive, willing and empathetic

listeners, persuasive leaders, sensitive to feels, and informative. But, there are many barriers

can stop and distort the effective communication including,


Physical separation

Status differences

Gender differences

FilteringLanguage Characteristics

Selective perception

Emotion

Physical Separation

The physical separation of people in the work environment poses a barrier to

communication. Long distance communication such as through letter holds a high

potential for confusion or misunderstanding in communication. Telephones and

technology, such as electronic mail, often help bridge the physical gap. Although

telephones and technology can be helpful, they are not as information rich as face-

to-face communication.

Status Differences

Related to power and the organizational hierarchy pose another barrier to

communication among people at work, especially within manager-employee pairs.

Employee depend on the manager as a primary link to the organization, the

manager is more likely to distort upward communication than either horizontal or

downward communication.

Gender Differences


Men and women have different conversational styles, which may pose a

communication barrier between those of opposite sexes. For example, women

prefer to converse face to face, whereas men are comfortable sitting side by side

and concentrating on some local point in front of them. Hence, conversational

style differences may result in a failure to communicate between men and women.

Filtering

Sender’s purposely manipulating information so it will more favourable by the

receiver. For example, when an employee tells his boss what he feels his boss

want to hear, he is filtering information. Factors such as fear of conveying bad

news and desire to please one’s boss lead employee to tell their superiors what

they think those want to hear.

Selective Perception


The receiver in the communication process selectively see and hear based on their

needs, motivation, experience, background, and other personnel characteristics.

Receivers also project there interest and expectations into communications as they

decode them.

This kind of barrier mostly refers to the person who receive the information. Some

of peoples are being selective in terms of listening the speech or information from

other peoples. Fro example, in an organization, the manager or fisrt level manager,

tend to hear the beneficial and related topic from their lower level staff. Because

they are not paying for being counselling or lecturing.

Language characteristics

Language is a central element in communication. It may pose a barrier if its use

obscures meaning and distort intent. Although English is the international

language of aviation, it is not the international language of business. The native

language of supervisors and employees differ, the risk of barriers to

communication exists. Subtle distinctions in dialect within the same language can

cause confusion and miscommunication. For example, the word lift means an

elevator in Great Britain and ride in United States.


Emotions

How the receiver feels at the time of a communication will influence how she or

he interprets it. The same message received when a receiver is angry or distraught

is often interpreted differently from when a receiver is happy.

In some cases, the sender might be spoke out followed by their feels at the time.

For example, if the sender speak in sad emotion, the intonation and diction of the

words are a bit influenced by the sad emotion. So do to the happy, excited, cries

feels.


Goals In Planning

The definition of goals and planning Planning is the first function in every process of management that involve organizing,

leading, and controlling. In organization management, planning is the first step where the organization can be successful or not. Planning divided into two that is formal planning and informal planning. In informal planning there is no written documents, less or no objectives sharing and usually used in small business.

When goals and planning get together shows how the plans of organization can affected the goals or objectives of organization. The planning of an organization can be determined whether the goals are suitable with the planning and able to achieve or not. It depends how the planning work.


Increasing Work Motivation and Task Performance

Goals used to increase employees effort and motivation, which in turn improve task performance. Goals acceptance and commitment by employees can be achieve through employee participation, supervisory commitment, and performance feedback in goal setting.

Reducing Role of Stress of Conflicting and Confusing Expectations

Goals setting can reduce stress by clarifying the task role expectations communicated to employees. Supervisors, coworkers, and employees are important sources of task-related information. Improved role clarity resulting from goal setting improved communication between managers and employees.


Time management

Planning helps improve time management through personnel benefit that comes from the flexibility of organization, adjustment and controlling.

Improves control

Control involves effort of measuring and evaluating organization achievement and taking corrective action if necessary. Planning improve control by defining objectives that need to be achieve and decide steps to follow so that objective can be achieved.

Encourages Forward Thinking

Planning enables organization to look forward, analysing future needs, opportunities and potential treat.

Providing Direction

Organization works on plan and goal that have been made. Without planning and goals organization merely reacts on daily occurrences without considering what will happen in future. Plans avoid drift situation and ensure that short range effort support and harmonize with future goals.

The Principles Of Islamic ManagementThe deffinition

In modern theory of management, Islamic management still alive among the Islamic organization and administration. Nowadays, many organization apply many kind of modern management which is created based on the past experience of the past peoples. Eventhough, Islamic management are traditional management, but it saved many secrets behind its if we know how to use and define it.

Many Islamic corporate defines Islamic on their own. According to Al-Qurtubi, in his book of Al-Jami’li al-Ahkam, he defines the trading of corporations are the trading process between two parties or groups (trader and buyer). Can be summarized as the exchanges of things (system barter) use capital(money) to gain profit, a validated contract based on Islamic rules and regulations or an agreement between two peoples or two groups.

Islamic management actually presenting a vary concepts of trading in business which is consist to trade process, wages and payment of work done. In Islam, overall the business or trading involve the relationship between human to Allah S.W.T which is called as Habluminallah and the relationship among humans which is called as Habluminannas. Management by Islam is focussing on the system and the orderly structure, instead of the unfinished work. Overall, any task jobs or work done in Islam need to be manage wisely, effectively and well structured. The decree of Allah S.W.T in Al-Saf, verse 4 stated that :

“ In fact, Allah likes to those peoples whose queing up properly and in line during the war time, they are referring as a concrete building”

Entirely, Islamic management is the art and the skill of utilizing productive resources to achieve desired goals. Islamic leadership principles are primarily derived from four key resources. The first is the Holy Quran, which contains guidelines on the spiritual, social, economic and political aspects of human life, faith, struggle, knowledge seeking, piety, charity and decision making. These are the key attributes and qualities that form the core of leadership principles. Second are the examples shown by the Holy Prophet, who is the greatest leader of all time and whose life, deeds, sayings and personal qualities provide valuable leadership lessons. Third are the wise Caliphs and fourth are the Pious followers.

The abilities of Islamic personalities and leaders in the past to manage an expanding Islamic empire covering up to one third of the world and to withstand internal and external pressures for several centuries has attested to the outstanding performance and effectiveness of their leadership and management systems. One of the most important factors that contributed to the success of the early Islamic state in remaining unshaken for centuries was the establishment of an organized and dynamic system of management and leadership based on justice and mutual consultation.

The flow chart below shows the differences between islamic management and theory modern of management,


To strengthen the system of Islamic Management in an organization, there are several principles and concepts that should be take care of, including :


Shared Mission, Visison and Values

Adherence to religious texts and practicing Ijtihad

Character Building

Putting the right people in the right place

Permanence and dynamism

Building human relations and a strong team

Decision making process through consultation and empowerment

Controlling

Tolerence, justice and selective adaptation

Shared Mission, Vision And Values The leaders should be able to give clear and specific directions to the subordinates. The leadaers must be internalizes the shared mission, vision, and values in an

organization. This approach can result in cooperation, spirit de corps and job satisfaction among

members of the organization. Clear goals can enable leaders and managers to gauge what has been achieved and

learn from failures.

Adherence to religious texts and practicing ijtihad For Muslims, leading and managing an organization should be guided by the religious

texts which seek to protect public interest. They are principle-centred leaders who do not sacrifice their values for their own self

interests. New circumstances also require the proper use of ijtihad not for self int erest but the

common good. Leaders who require ijitihad in making decisions and policies should be aware of the

rules in the utilization of ijtihad.

Character building The requirement to translate vision into action is needed for God conscious and

sincere leaders to perform Islamic management. It also requires leaders with a strong sense of accountability to God and to the

organization Leaders should focus on programmes that can instil values and ethics so that effective

change can come from within the individuals Leaders, managers and subordinates with strong moral characters, leadership qualities

and personal and group accountability will enhance the productivity of the organization

Leaders should walk the talk.

Putting the right person at the right place Leaders should know where to put and appoint the right people for the right job. The criteria of trustworthiness, honesty and ability to perform are the best indicator to

appoint the subordinates. The organization will having failures or negative consequences if the leaders putting

the wrong people in a particular job. Favouritism, discrimination and conflict of interests are detrimental to an

organization. A non-performer whether a leader, manager or subordinate within the organization

should be advised and appropriate action should be taken. People with moral integrity and good work ethics should be hired.

Permanence and dynamism


Continuous change and growth of organization are good way to manage an organization.

The core purpose and values would not be affected by the changes, instead it remain the identity of the organization

A permanent value system able to achieve the desired goals due to the preservation of unity in diversity to a common puprpose.

Change must come from within the individuals and must begin from the leaders themselves.

Building human relations and a strong team The strong connection between the leaders and their subordinates will bring to the

effectively and efficiently working environment. Leaders who are concerned with the welfare of their subordinates will be close to the

hearts of their subordinates. The subordinates will show a better respects to the leaders who concerning about the

subordinates necessities. Leaders and subordinates must know their rights and obligations to their

organization. Leaders can inspire their subordinates through compassion, kindness, leadership by

example and personal touch The outcome of strong relations between leaders, managers and subordinates is a

continuous growth of the organization and retention of the best staff.

Decision making process through consultation and empowerment A democratic process should be started from the leaders in decision making and solve

problems. It will create a strong sense of belonging, commitment and loyalty to the organization. It creates leaders who are good listeners, humble and responsive to new ideas from

the subordinates. It prevents a dictatorial leadership style which is destructive to the organization Constructive ideas from people below can reach the people above It strengthens employe-remployee relations, which is indispensable for stability and

staff retention.

Controlling


Although leaders and subordinates are selected based on their honesty and capability to do a particular job, human nature and weaknesses are unavoidable.

Leaders, managers and subordinates have to be constantly monitored and controlled through internal and external mechanism to minimize the gap between what is desired and what is actually achieved.

Islam considers self control as more effective than other forms of controlling mechanism set up by the organization.

An unethical person can find ways to circumvent policies, regulations, procedures and processes to achieve their selfish motives.

What is required is to develop ethical and God conscious leaders, managers and subordinates with leaders showing the paragon of excellence and a model for others to follow.

Tolerance, justice and selective adaptation Leaders should not misuse their power and authority to practice injustice and

unfairness. Differences of opinion should be tolerated as long as it is within the boundaries of

Islam. Discriminatory practices in an organization in terms of gender, race, religion and

colour is not permissible in Islam as they demoralize those affected and negatively influence their quality of work and productivity.

Leaders should learn from the experience of their predecessors and others and adopt the selective adaptation approach in order to implement a holistic, practical and viable management system and leadership style.


References


Functions of management

Business

Transcript of Functions of management