Functions of Mngt

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FUNCTIONS OF MANAGEMENT



POSDCORBPLANNINGORGANIZING

STAFFING

DIRECTING

COORDINATING

REPORTING

BUDGETING



STRENGTHS OF POSDCORB

GOOD STARTING POINT TO ANALYZE

THE MANAGEMENT FUNCTIONS IN

STRUCTURAL WAY.

HELP THE STRUCTURE TO ANALYZETHE MANAGEMENT ACTIVITIES.



DRAWBACKS

MARK MOORE (IN 1995):-

”the most important job for a manager isunderstanding and shaping the

environment”.Dr. LEWIS MERIAM:-

Emphasis on subject matter

DOES NOT EMPHASIS ON MANAGERSACHIEVE.



February 21, 2012 6



VARIOUS TYPES OF PLANNING

Business Plan Event Planning

Financial Plan

Marketing Plan

Strategic Planning

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

http://en.wikipedia.org/w/index.php?title=Financial_Plan&action=edit&redlink=1

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

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

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

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

http://en.wikipedia.org/w/index.php?title=Financial_Plan&action=edit&redlink=1

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



MARKETING PLAN INCLUDES

Who are the customers?What are their key characteristics?

What are their needs and wants?

What do they expect the `product' to do?

What are their special requirements and

perceptions?

What do they think of the organization and

its products or services?

What are their buying intentions?



Difference between Strategic

and Business Plan• A strategic plan is a document that is primarily intended to be used

internally by the organization, to guide itself. In some cases, in fact, in

many cases the strategic plan is never seen by anyone outside the

organization. It often contains information about organizational strategy

that a company might not want in the hands of its competitors.

• A business plan, on the other hand, is usually meant to be used to showothers. For example, if a company wishes to attract investors, the

investors will want to have certain information about the company before

they commit to investing. They certainly will want present financial

information, and they will want to know where the company expects to

get revenues in the future, its market, and so on. A bank looking atgiving a loan to an organization will want similar information.



Business Plan

• A business plan is a formal statement of a set of business goals,

the reasons why they are believed attainable, and the plan for

reaching those goals. It may also contain background information

about the organization or team attempting to reach those goals.

•Business plans may also target changes in perception and brandingby the customer, client, tax-payer, or larger community. When the

existing business is to assume a major change or when planning a

new venture - a 3 to 5 year business plan is essential

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

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



STRATEGIC PLANNING

Strategic planning determines where an

organization is going over the next year

or more.How it's going to get there

The focus of a strategic plan is usually

on the entire organization, While the focus of a business plan is

usually on a particular product, service

or program



Event Planning

• Event planning is the process of planning a festival, ceremony,

competition, party, or convention. Event planning includes budgeting

, establishing dates and alternate dates, selecting and reserving the

event site, acquiring permits, and coordinating transportation and

parking. Event planning also includes some or all of the following,

depending on the event: developing a theme or motif for the event,

arranging for speakers and alternate speakers, coordinating location

support (such as electricity and other utilities), arranging decor,

tables, chairs, tents, event support and security, catering, police,

fire, portable toilets, parking, signage, emergency plans, health care

professionals, and cleanup.

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

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

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

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

http://en.wikipedia.org/wiki/Convention_(meeting)

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

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

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

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

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

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

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

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

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

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

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

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

http://en.wikipedia.org/wiki/Convention_(meeting)

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

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

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

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



Financial Planning

• The process of determining a person's or firm's financial needs or

goals for the future and the means to achieve them. Financial

planning involves deciding what investments and activities would be

most appropriate under both personal and broader economic

circumstances. All things being equal, short-term financial planning

involves less uncertainty than long-term financial planning because,

generally speaking, market trends are more easily predictable in the

short term. Likewise, short-term financial plans are more easily

amendable in case something goes wrong as a result of the short

time frame.

http://financial-dictionary.thefreedictionary.com/Investments

http://financial-dictionary.thefreedictionary.com/Activities

http://financial-dictionary.thefreedictionary.com/Economics

http://financial-dictionary.thefreedictionary.com/Market+Trends

http://financial-dictionary.thefreedictionary.com/Market+Trends

http://financial-dictionary.thefreedictionary.com/Economics

http://financial-dictionary.thefreedictionary.com/Activities

http://financial-dictionary.thefreedictionary.com/Investments



February 21, 2012 15



ORGANIZING

Organizing is establishing the internalorganizational structure of the business.

The focus is on division, coordination,and control of tasks and the flow of

information within the organization.



ORGANIZATIONAL STRUCTURE

Division of labor

Delegation of authority Departmentation

Span of control



DELEGATION OF AUTHORITY

Exception principle

Scalar chain of command

Decentralization

Parity principle



Parity principle

• Principle of Parity of Authority and Responsibility- According to

this principle, the manager should keep a balance between authority

and responsibility. Both of them should go hand in hand. According

to this principle, if a subordinate is given a responsibility to perform

a task, then at the same time he should be given enough

independence and power to carry out that task effectively. This

principle also does not provide excessive authority to the

subordinate which at times can be misused by him. The authority

should be given in such a way which matches the task given to him.

Therefore, there should be no degree of disparity between the two.



Exception principle

• The exception principle (also known as management by

exception) is closely related to parity principle. The

exception principle states that managers should

concentrate their efforts on matters that deviate

significantly frm the normal and let subordinates handleroutine matters. The idea here is that managers should

concentrate on those matters that require their abilities

and not become bogged down with duties that their

subordinates should be doing..



Scalar chain of command

• In business, the path down which orders and decisions are

communicated, from the board of directors of a company at

the top of the hierarchy down to shop-floor workers at the

bottom. The shorter the chain of command, the faster

communication is likely to be. There is also less likely to bemisinterpretation of communication. A short chain of

command also tends to motivate workers because they are

able to interact with those in positions of authority and see

their decisions being implemented by workers below them.

The chain of command is usually depicted on anorganization chart, which identifies the superior and

subordinate relationships in the organizational structure.

http://encyclopedia.farlex.com/hierarchy

http://encyclopedia.farlex.com/organization+chart

http://encyclopedia.farlex.com/organization+chart

http://encyclopedia.farlex.com/hierarchy



Decentralization

• Decentralization also called departmentalization is the

policy of delegating decision-making authority down to

the lower levels in an organization, relatively away from

and lower in a central authority. A decentralized

organization shows fewer tiers in the organizationalstructure, wider span of control, and a bottom-to-top flow

of decision-making and flow of ideas.

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

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



DEPARTMENTATION

Departmentation is the grouping of jobsunder the authority of a single manager,

According to some rational basis, for the

purposes of planning, coordination andcontrol.

The number of departments in an

organization depends on the number of different jobs, i.e., the size and

complexity of the business.



SPAN OF CONTROL

The span of control is the number of

people a manager supervises.

The typical guideline is a span of controlof no more than 5-6 people.

A larger span of control is possible

depending on the complexity, variety andproximity of jobs.



STAFFING• Staffing manages various positions created by

organizing.

– Staffing prepares inventory of manpower and identify

the gap between manpower available and manpower

required.

• Organizing and staffing are continuous jobs.

– As an organization grows new positions need to becreated and filled. Staffing cannot be done once for

all,



STAFFING

• The organizing function of management

defines each position or category of

positions in the organization. Staffingfollows with the filling and keeping filled all

positions in the organization.

• Staffing become more important as the

complexity and overall level of performance

of a business increases.



STAFFING INCLUDES

• Recruitment – Getting application for the job.

• Selection

– Selection of the best candidate among the pool.• Transfer and promotion

– Transfer generally refers to change in position

without a change in status or pay. Promotion rather implies improvement of both or one of them.



STAFFING

• Training

– The process of providing new employees with

information they need to do their jobs

satisfactorily

• Appraisal

– Evaluating an employee’s current or pastperformance in relation to the performance

standards for the position.



Steps in the Recruitment and

Selection (staffing) Process

FIGURE 10–2



Job Analysis

• Job Analysis

– The procedure through which managers

determine the duties of the job, and the kinds

of people (in terms of skills and experience)that should be hired for the job



Job Description• Developed from information collected in the

job analysis

• Most contain sections that cover:

– Job identification

– Job summary

– Responsibilities and duties

– Authority of incumbent

– Standards of performance

– Working conditions

– Job specification (the human requirements of the

job)



Job Specification

• A list of the skills and aptitudes sought in

people hired for the job

• Identification of these skills and aptitudes

are from information collected in the job

analysis



Personnel Planning

• Personnel Planning

– The process of determining the organization’s

future personnel needs, as well as the

methods to be used to fill those needs – Company records showing present

performance and promotability of inside

candidates for the most important positions

Ex. Fast track promotion opportunity for

good condidates



Employee Recruiting

• Recruiting

– Attracting a pool of viable job applicants.

Sources of Recruits



Sources of Recruits• Current employees

• Advertising• The Internet

• Employment agencies

– Public

– Private

• Contingent workers and

temporary help agencies

• Executive recruiters• Employee referrals

• Walk-ins

• University and

College recruiting

• Recruiting for a

diverse workforce



Testing for Employee Selection

• Types of Tests

– Intelligence

– Mechanical comprehension

– Personality and interests – Ability/achievement (current capabilities/knowledge)

– Aptitude (performance potential)

• Assessment centres• Video assessment



Conducting Effective Interviews

• Plan the interview

• Structure the interview

• Establish rapport• Ask questions

• Delay your decision

• Close the interview



Orienting Employees

• Orientation

– Providing new employees with basic

information about the employer, such as

vacation policies, work rules. – The Mentorship Programme



Training Employees

• Training Program

– The process of providing new employees with

information they need to do their jobs satisfactorily.

• Training Program Steps – Needs analysis

– Instructional design

– Validation

– Implementation

– Evaluation and follow-up



Employee Appraisal

• Performance Appraisal

– Evaluating an employee’s current or past

performance in relation to the performance

standards for the position.• Typical Performance Appraisal Method

– A graphic rating scale that lists several job

characteristics (like quality of work) and provides

a rating scale (from outstanding to

unsatisfactory), along with short definitions of

each rating.



Employee Appraisal Methods

• Critical Incidents Method – Compiling brief examples of good/bad performance,

and using them to support appraisal and development

needs.

• Forced Distribution Method

– Placing predetermined percentages of ratees into

performance categories.

• 360-degree Feedback – Peers, supervisors, subordinates,and customers

complete appraisal surveys, which are compiled into

individualized reports for the ratee.



STAFFING

• Staffing function is created by some

experts by splitting the social aspects of

the organizing.

• Staffing means “right person to the right

job”.




The continuous task of making decisions and

embodying them in specific and general

orders and instructions and serving as the

leader of the enterprise. Directing includes:

Communicating

Leading Motivating

Directing




COMMUNICATING What is Communication?

The transfer and understanding of meaningIf no information has been conveyed, communication has not

occurred

everything that a manager does involves communicating

Effective communication does not equal agreement

Ineffective communication is the basis for many managerialproblems

Types of Communication-

Interpersonal Communication - occurs between people

Organizational Communication - all the patterns, networks,

and systems of communication in an organization




Communication

Communication Symbols Oral communication

Written communication

Non verbal and pictorial communication

Communication Channels Formal channel

Informal channel




LEADING

D fi iti




Definitions

Leader someone who can influence others and who has managerial

authority all managers should ideally be leaders not all leaders have the ability to be an effective manager

Leadership A traditional definition of leadership:Leadership is an interpersonal influence directed

toward the achievement of a goal or goals.

LEADERSHIP is a dynamic relationship based on mutual influence and common purpose between leaders andcollaborators in which both are moved to higher levels of motivation and moral development as they affect real, intendedchange. (Kevin Freiberg and Jackie Freiberg

L d hi




A Leader can be a manager, but a manager isnot necessarily a leader.

Employees willingly follow leaders because they

want to, not because they have to.

Leadership versus

Management




Trait Theories

Behavioral Theories -- Theory X and Theory Y

Contingency Theories -- Fiedler's Contingency Model

LEADING




Trait Theories of Leadingleader traits - characteristics that might be used

to differentiate leaders from nonleadersmight be used as a basis for selecting the “right”

people to assume formal leadership positions

proved to be impossible to identify a set of traitsthat would always differentiate leaders fromnonleaders

explanations based solely on traits ignored theinteractions of leaders, their groups, and situationalfactors

LEADING




Behavioral Theories of Leading knowing what effective leaders do would provide the basis for

training leaders

Theory X and Theory Y

Douglas McGregor described Theory X and Theory Y as ,The Human Side of Enterprise .

Theory X managers believe that employees are motivated

mainly by money, are lazy, uncooperative, and have poor

work habits. Theory Y managers believe that subordinates work hard, are

cooperative, and have positive attitudes.

LEADING



Theory Z

• For Ouchi, Theory Z focused on increasing employee loyalty to the

company by providing a job for life with a strong focus on the well-

being of the employee, both on and off the job. According to Ouchi,

Theory Z management tends to promote stable employment, high

productivity, and high employee morale and satisfaction.

• It is participative, consensual in nature

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

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




Contingency Theories of Leading leader effectiveness depends on the situationmust isolate situational conditions or contingencies

Fiedler Model

effective group performance depends on matching the

leader’s style and the degree to which the situation permitsthe leader to control and influence

Least-Preferred Coworker (LPC) - measures the leader’s style of interacting with subordinates high LPC - least preferred coworker described in relatively favorable

terms

leader is relationship oriented low LPC - least preferred coworker described in relatively unfavorable

terms leader is task oriented

LEADING

ypes o ea ers p




ypes o ea ers pstyles

The bureaucratic leader by Weber in 1905

The charismatic leader by Weber in 1905 The autocratic leader by Lewin, Lippitt, & White in 1939 The democratic leader by Lewin, Lippitt, & White, 1939 The laissez-faire ("let do") leader by Lewin, Lippitt, &

White, 1939 The people-oriented leader by Fiedler, 1967 The task-oriented leader by Fiedler, 1967 The servant leader by Greenleaf, 1977

The transaction leader by Burns, 1978 The transformation leader by Burns, 1978 The environment leader by Carmazzi, 2005




MOTIVATING What is Motivation?

the willingness to exert high levels of effort to reach organizational

goals, conditioned by the effort’s ability to satisfy some individual need

effort - a measure of intensity or drive

goals - effort should be directed toward, and consistent with,

organizational goals

needs - motivation is a need-satisfying process

Theories of Motivation

Many methods of employee motivation have been developed. The study

of work motivation has focused on the motivator (supervisor) as well as

the motivatee (employee). Motivation theories are important to

supervisors attempting to be effective leaders. Two primary approachesto motivation are content and process.

Maslow's Hierarchy of




Maslow s Hierarchy of

Needs

Differentiating between Directing and




Differentiating between Directing and

Managing

The Key to Direction Giving is to Distinguish between‘Managing’ and ‘Direction-giving’

Managing is about dealing, hands-on, with the design,implementation and maintenance of prudent control

systems Direction - giving is about showing the way ahead

and

leading

Both are necessary for healthy organizations but they require very different attitudes, knowledge and skills especially in approaches to

thinking




Control is one of the managerial functions like

planning , organizing , staffing and directing . It is an

important function because it helps to check the errorsand to take the corrective action so that deviation from

standards are minimized and stated goals of the

organization are achieved in desired manner

CONTROLLINGCONTROLLING




Organizational Control

Objectives

Controls make organizations effective. Controls provide feedback on project

status. Controls aid in decision making.

The Organizational Control




The Organizational Control

Process

Establish standards to measure performance

Measure actual performance.

Compare performance with the standards.

Take corrective actions.

Types of Organizational




Types of Organizational

Controls

Feedforward controls

Concurrent controls

Feedback controls




Effective Organizational Control Systems

A focus on critical points

Acceptance by employees.

Availability of information when needed.

Economic feasibility

Accuracy.

Comprehensibility.

Integration into established process.






Techniques • Financial controls

Financial statements Income statement Financial audits Liquidity ratio. Profitability ratios Debt ratios Activity ratio

• Budget controls

• Some budget development methods are as follows:

Top-down budgeting. Bottom-up budgeting.




Marketing controls

Market research

Test marketing

Marketing statistics




Human resource controls

• Human resource controls help managers

regulate the quality of newly hired

personnel, as well as monitor current

employees' developments and dailyperformances.




Conclusion Management functions are Universal. Management functions have Iterative

quality.

Management process can be seen as a

circular, continuous movement. No functions is more important but the mix

of the functions varies from task to task andfrom level to level of management.



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