Functions of Management

Presented by:-P SVSSN ParameswaraoMBA 3rd Sem, BharatiarAcharya B-school,Bangalore.

• Management

• It includes: Management of business and profit making private and

government run organizations. non-profit making organizations. trusts, societies, associations, charitable organizations. governmental organizations. NGOs. educational organizations e.g. universities, colleges,

schools. day care units. hospitals and other health care organizations. sports related organizations and clubs. religious organizations.

• Management for any organization is a function of organizing and channeling the people together to accomplish desired goals.

• In common understanding, management is also referred to the body or group of persons who perform the various functions of management.

Hierarchical Levels of Management

• Top management (including the members of the board of directors of the company).

• Senior management (or upper management; normally, the heads of various departments).

• Middle management (responsible for operational management).

• Junior or lower management (they include supervisors, team leaders or, foreman etc)

Management consists of the functions given below: (based on Henri Fayol's thinking on the functions of management.)

• Planning: generating plans of action for immediate, short term, medium term and long term periods.

• Organizing: organizing the resources, particularly human resources, in the best possible manner.

• Staffing: positioning right people right jobs at right time.

• Directing (includes leading, motivating, communicating and coordinating): Communicate and coordinate with people to lead and enthuse them to work effectively together to achieve the plans of the organization.

• Controlling (includes review and monitoring): evaluating the progress against the plans and making corrections either in plans or in execution.

“You need to plan the way a fire department plans.”

... Andrew S. Grove

“Preparation is everything. Noah did not start building the ark when it was raining.”

... Warren Buffett

Each of these functions is explained in some detail below:

• 1. Planning

Planning is decision making process.It is making decisions on future course of actions.Planning involves taking decisions on vision, mission,

values, objectives, strategies and policies of an organization.

Planning is done for immediate, short term, medium term and long term periods.

It is a guideline for execution/implementation.It is a measure to check the effectiveness and

efficiency of an organization.

Importance of planning – The Ant and the Grasshopper

In a field one summer's day a Grasshopper was hopping about,chirping and singing to its heart's content. An Ant passed by,bearing along with great toil an ear of corn he was taking to thenest.

"Why not come and chat with me," said the Grasshopper,"instead of toiling and moiling in that way?"

"I am helping to lay up food for the winter," said the Ant, "andrecommend you to do the same."

"Why bother about winter?" said the Grasshopper; we have gotplenty of food at present." But the Ant went on its way andcontinued its toil. When the winter came the Grasshopper hadno food and found itself dying of hunger, while it saw the antsdistributing every day corn and grain from the stores they hadcollected in the summer. Then the Grasshopper knew:

It is best to prepare for the days of necessity

e.g. Planning involves developing a systematic process,

• the second will be to create a business plan since– "the development of the business plan greatly

helps to clarify the organization's plans and ensure that key leaders are all ,for attaining the goals of the organization.

• See sample business plan along with this.

• Reliance insurance • Vision:

– “ Empowering everyone live their dreams.”

• Mission: – Create unmatched value for everyone through dependable, effective,

transparent and profitable life insurance and pension plans.

• Our Goal:

– Reliance Life Insurance would strive hard to achieve the 3 goals mentioned below: • Emerge as transnational Life Insurer of global scale and standard • Create best value for Customers, Shareholders and all Stake holders

MISSION , VISION , & GOALS ARE related PART OF PLANNING:

• 2. Organizing

Organizing involves determination and grouping of the activities.

Designing organization structures and departmentation based on this grouping.

Defining the roles and responsibilities of the departments and of the job positions within these departments.

Defining relationships between departments and job positions.

Defining authorities for departments and job positions.

Effective Delegation of Work• Story:

• The Wolf and the Shepherd

A Wolf had been prowling around a flock of Sheep for a long time,and the Shepherd watched very anxiously to prevent him fromcarrying off a Lamb. But the Wolf did not try to do any harm.Instead he seemed to be helping the Shepherd take care of the Sheep. At last the Shepherd got so used to seeing the Wolf About that he forgot how wicked he could be.

One day he even went so far as to leave his flock in the Wolf's carewhile he went on an errand. But when he came back and saw howmany of the flock had been killed and carried off, he knew howfoolish to trust a Wolf as he exclaimed. “I have been rightlyserved; why did I trust my sheep to a Wolf?”

Moral• Delegate your task wisely, and only to

people you trust.

Companies have risen and fallen because they have entrustedthe wrong CEOs and successors with the management duties. Many great family businesses had been ruined at the hands ofthe children or grandchildren who took over the helm, basedon who they were rather than what they could do. Whenbusinesses failed, CEOs rightfully took the brunt. The peopleresponsible for delegating the management duties should notbe spared either.

• StaffingIt includes manpower or human resource

planning.Staffing involves recruitment, selection, induction

and positioning the people in the organization.Decisions on remuneration packages are part of

staffing.Training, retraining, development, mentoring and

counseling are important aspects of staffing.It also includes performance appraisals and

designing and administering the motivational packages.

The Goose with the Golden Eggs

• Staff is the most valuable asset

One day a countryman going to the nest of his Goose found therean egg all yellow and glittering. When he took it up it was asheavy as lead and he was going to throw it away, because hethought a trick had been played upon him. But he took it homeon second thoughts, and soon found to his delight that it was anegg of pure gold. Every morning the same thing occurred, and hesoon became rich by selling his eggs. As he grew rich he grewgreedy; and thinking to get at once all the gold the Goose couldgive, he killed it and opened it only to find nothing.

“The most important factor: our respect for the individual. In IBM it occupies a major portion of management time.”

... Thomas J. Watson, Jr.

“People are the lifeblood of any airline.”... Rod Eddington

“You can't treat your people like an expense item.”... Andrew S. Grove

“The more time I spend with our people, the more I find out about our business.”

... Herb Kelleher

“Human resources are the greatest assets of any company.”

... Narayana Murthy

• 4. Directing– It is one of the most important functions of

management to translate company's plans into execution.

– It includes providing leadership to people so that they work willingly and enthusiastically.

– Directing people involves motivating them all the time to enthuse them to give their best.

– Communicating companies plans throughout the organization is an important directing activity.

– It also means coordinating various people and their activities.

– Directing aims at achieving the best not just out of an individual but achieving the best through the groups or teams of people through team building efforts.

• 5. ControllingIt includes verifying the actual execution against the plans to ensure that execution is being done in accordance with the plans.It measures actual performance against the plans.It sets standards or norms of performance.It measures the effective and efficiency of execution against these standards and the plans.It periodically reviews, evaluates and monitors the performance.If the gaps are found between execution levels and the plans, controlling function involves suitable corrective actions to expedite the execution to match up with the plans or in certain circumstances deciding to make modifications in the plans.

• The functions of management centre on the application of human resource management and technology in HP organizational functions of the management are geared towards enabling the achievement of the company core objectives.

• The management functions in the company may change in response towards changes in market environment and technology, or due to organizational growth.

• The human resource aspect is very important for any company.

• In HP the company management has emphasized the value of better organization of human resource and technology to achieve its goals. The company has achieved this through; four functions of management that are important in creating and maintaining an efficient and effective organizational culture namely; planning, organizing, leading and controlling

FOUR MANAGEMENT FUNCTIONS ON HP

• Planning : This is the process of developing the company's mission and defining specific methods of accomplishing it. It can be on a broader or narrow perspective depending on the scope of the goal. – Planning comes in a number of ways since all sectors in HP company or rather any other

business require some form of planning in order to stick to what has been planned. – First, there is financial planning which entails the budgeting allocations for all

the programs being undertaken within the company. Provision of benefits, compensations and salaries are also taken care of at this stage.

– Human resource planning is crucial to achieving the best from employees. The goal of planning in relation to human resource is to assist HP to meet its strategic objectives, planning also ensure that the employees are effectively managed and well maintained.

– The company ensures better work force planning by proper selection and recruitment, offering orientation and induction to the new recruits, organizing trainings to develop and equip them with new skills. This together with better employment benefits goes a long way in making the employees achieve their targets. In addition the company is able to equip its employees with the latest technological tools which the employees use to achieve efficiency. This improves the technology of the company as more innovations are created.

• Organizing is how the internal structure of the company is set. It generally focuses on the division, coordination of activities and how tasks are controlled within the company.– General company procedure demand good organization from the

leaders and managers. At HP for the management is responsible for organizing all activities of the employees. This includes meetings that bring together all the employees on board. They also organize daily and monthly meetings within the specific affiliate factories when an issue arises. Proper organization of a meeting or how a project will be conducted results in a successful of the company. Through, these meeting employees are able to exchange views and ideas on how best to improve their work. It is at this meeting that new ideas on technological improvement come up. HP is sorely based on technology, and the managed has insured better organization by providing what is required in terms of tools, materials and skilled manpower. Without proper organization no company can be successful as they will be conflicts in the company. In HP this has been avoided.

• Leadership is also described as directing people to do specific duties by influencing their personal behavior through incentives and motivation, teamwork, individual dynamics and discipline. The core purpose of leadership is to channel all the employees' behavior towards attaining the company's objectives. – Leadership is thus essential in creating and maintaining a

healthy organizational culture within HP. Leading does not necessarily come from that in power but from any individual who provides information and suggestions on the way forward. Decision making within HP rests on the shoulders of the managers and leaders in the company who usually take risks whenever an issue that requires to be addressed arises. In improving its technology aspects hp have managed to created good team leaders. Teams are usually very inventive and team leaders are used to guide and oversee that the employees are able to achieve new products and improve on product technology.

Thank you