X1.3- Planning, Organizing, Leading, Controling

7/23/2019 X1.3- Planning, Organizing, Leading, Controling

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Topic 1.3

THE FOUR MANAGEMENT FUNCTIONS:

Planning, Organizing, !a"ing, Con#rolling

OBJECTIVE:

To understand the four main functions of all managers



Deninggoals,

establishingstrategy,anddeelo!ing

!lans tocoordinateactiities

Directingand

motiatingall inoled!arties,selectingmoste"cient

communicationchannelandresolingcon#icts

$onitoringactiitiesand!erformance, ensurethey areaccom!lis

hedas!lanned,ta%ingcorrectieactions

&chieingthe

organi'ation(sstated!ur!ose

)lanning Organi'ing *eadingControlling

Determining+hat needsto be done,ho+ it +illbe done,and +ho isto do it-ho re!orts

to +hom,and +heredecisionsare to bemade

Leading toLeading to

C The . $anagement

functions



/ )lanning

0 1tage )lanning )rocess

1. Objectives

What do I want to achieve? When?

2. Policies

Does plan contradict company policies or companyphilosophy and values?

3. Procedures

how to put the plan into action concrete steps

!. "ulesDoes my plan contradict our le#al obli#ations?

$. %ud#ets

&ow much will it cost? Do we have the capital? Will it createcash'(ow problems?

/ )lanning



)et*s tal+ a little more about ,-in# O%/0I/

hey should be 45" Objectives

• 1!ecic 6concrete detailed well de,ned7

• $easurable 6numbers 8uantity comparison7

• &chieable 6considerin# resources7

• 2ealistic 6practicable 9easible actionable7 and

• Time3Bound 6a de,ned time line7.

/ )lanning



4 Organi'ation

Organi'ational *ogic

• 4odern wor+ is complicated

•"e8uires speciali:ation' o9ten called departmentali:ation

• /very or#ani:ation needs to have an Or#ani:ational 0hart

• ;OW5D5< O"=5;I>5IO; 5"/ )5/"

/567(s /557(s 8o+

4 Organi'ing



$ODE* /3 9unctional 1tructure3 People are #rouped to#ether in

departments by common activities s+ills and resource use.

)oor communication acrossfunctions.

1lo+ res!onse to changes

Economies of scale

E"cient use of resources

In de!th s%ill s!eciali'ation

4anu9acturin#&uman"esource

s

inance

-hen to use:

1table, certainenironment

1mall to medium si'e

oals of e"ciency,technical ;uality

4 Organi'ing



$ODE* 43 Diisional 1tructure People are #rouped to#ether based

on a common product customer or #eo#raphical re#ion. unctions

are split amon#st the divisions.

Du!lication of resources

Com!etition for resources

among diisions

)oor coordination across

diisions.

9le<ibility and ;uic% to

ada!t to local changes

4ore in touch with customers focusing on customers(

needs

/-cellent coordination

across functions

Division 2Division 1 Division n

&" 49t# in &" 49t# in &" 49t# in

-hen to use: =nstable, uncertain

enironment

$edium to *arge si'e

oals of

!roduct>region>clients!eciali'ation, #e<ibility

4 Organi'ing



$ODE* ?3 @ybrid 1tructure 0ontains elements o9 both 9unctional

and divisional structure. With divisional 9orm maintains centrali:ed

9unctional departments

Con#ict bet+een diision

and cor!orate

de!artments

&dministratie costs

&lignment bet+een

cor!orate and diisionalgoals

&elps attain ada!tability

in some de!artments and

e"ciency in others-hen to use:

=nstable enironment,es!ecially in

customer>com!etitor sectors

*arge si'e

oals of #e<ibility, !lus

e"ciency in some functions

&um."esources

"esources @trate#y

echnolo#y

Div149t#

in

4anu9.

49t#

in

4anu9.

49t#

in

4anu9.

Div2

Div3

4 Organi'ing



@igh con#ictseeral

bosses

)o+er struggles, confusion

A stress

Ta%es adantage of both

functional and diisional

structures &da!tation and innoation

-hen to use:

Very uncertainenironment

$edium to large si'e

Dual goals of !roduct and

geogra!hic

s!eciali'ation

$ODE* .3 $atri< 1tructure Or#ani:ed li+e division structure but

with hori:ontal teams cuttin# across divisions

4 Organi'ing



President

PRODUCT 1

Asia Pacific

Division

Latin Am

Division

Europe

Division

Rest of World

Division

PRODUCT 2

PRODUCT 3

Team /

Team 4

Team ?

usiness

Areas!

eac" #it"

product

coordinator

Re$ional Divisions! eac" #it" o#n Di ecto

$ODE* .3 $atri< 1tructure

Team /

Team 4

Team ?

Team /

Team 4

Team ?

Team /

Team 4

Team ?

Corporate %trate$&Corporate 'inance

4 Organi'ing



? *eadershi!

1tyles

1. 5utocratic

2. Democratic3. )aisse:'aire

!. 0onsensual

/ 4?

=sed in all social systems

• "e8uires a lot o9 thin+in#

about 4otivation

WO <P/A

• ormal 6based on job

position7

• ;atural 6based on

personal leadership

8ualities7

? leading



0onsidered the classical approach.

he mana#er retains as much power and decision'ma+in# authority

as possible. he mana#er does not consult employees.

/mployees are e-pected to obey orders without receivin# any

e-planations.

he motivation is produced by creatin# a structured set o9 rewards

and punishments.B

'/Cective

'ime to decide is limited

'0an help coordination

'&elps to have hi#h productivity

'

'/mployees become tense or9ear9ul

' /mployees may disli+e bein#i#nored

'/mployees depend on mana#erto ma+e all decisions

&utocratic *eadershi! 1tyle

E<am!le: 1tandardi'ed

)roduction



/mployees are part o9 the decision ma+in#.

he democratic mana#er +eeps employees in9ormed

"e8uires the leader to be a coach who ma+es ,nal decision but ,rst

#athers in9ormation 9rom staC members.

'/mployees share in decision'ma+in# and problem'solvin# duties.

'/mployees develop a hi#h sense o9

personal #rowth and jobsatis9action.

'4ay help solve comple- problems.

&elps build teams.

3

';eeds time to #et everyone*sopinion.

'It*s easier and more cost'

eCective 9or the mana#er toma+e the decision.

'ome mana#ers 9eelthreatened by this type o9

leadership.

Democratic *eadershi!1tyle

E<am!le: $edical Team >

designers



he laisse:'9aire leadership style is also +nown as the hands'oCE

style.

It is when the mana#er provides little or no direction and #ives

employees as much 9reedom as possible. 5ll authority or power is

#iven to the employees and they must determine #oals ma+e

decisions and resolve problems on their own.B

'/mployees have pride in theirwor+.

'/mployees 9eel trusted and

respected.'ave mana#er*s time and ener#y

'

'ome employees 9eel insecure atthe unavailability o9 a mana#er.

' 4ana#er cant #ive re#ular

9eedbac+ to let employees +nowhow well they are doin#.

*aisse'39aire *eadershi!1tyle

E<am!le: Inestigatie Journalist



he mana#er mana#es by the boo+E.

/verythin# must be done accordin# to procedure or policy.

I9 it isn*t covered by the boo+ the mana#er re9ers to the ne-t level

above.

his mana#er is really more a police oFcer than a leader. &e or she

en9orces the rules.B

'Gse9ul when employees need tounderstand certain standards or

procedures H wor+in# with

dan#erous or delicate e8uipment'Gse9ul when employees are usin#

company resources.

'

'People lose ability to thin+ 9orthemselves

'/mployees lose their interest in

their jobs.

'/mployees do only what ise-pected o9 them and no more.

Bureaucratic *eadershi!1tyle

E<am!le: 8uclear )o+er 1tation



. Control

1te!s

1. Plannin#

2. In9ormation #atherin#3. /valuation

!. 0orrective 4easures

*ogic

• /-plain and limit

diCerence between

objectives ands and

results8egatie &s!ects

• 0ost

• ;e#ative Implications 6people 9ree lac+ o9 trust7

• Incomplete In9ormation

. controlling



enerally, higher leel managers !lan and organi'emore, +hile lo+er leel managers lead more This isbecause they are inoled on a daily basis +ith +or%ers

&ctiity by Organi'ational *eel

$anagement3 time dedicated to eachfunction



)lanning is more important 9or top mana#ement because they

decide the or#ani:ations overall direction which needs e-tensive

plannin#.Organi'ing is more important 9or top and middle mana#ers than

,rst'line mana#ers because they have #reater responsibility 9or

allocatin# resources.

*eading is more important 9or ,rst'line supervisors because they

produce #oodsH services and are constantly in contact with

wor+ers customers suppliers etc.

Controlling is similar at all levels. his shows a commonemphasis on monitorin# activities and ta+in# corrective action.

5dmin 2J1J'2J11A opic 1' %usiness 5dministration. Ivan &illiard

$anagement3 time dedicated to eachfunction

X1.3- Planning, Organizing, Leading, Controling

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