15/01/2019

THE MANAGEMENT
PROCESS
BSMA 1-12 | GROUP 2
Amponin, Cailing, Fabillo, Lumahan,
Miranda, Salanguste, Tolentino

FUNCTIONS OF
MANAGEMENT

Key points:
01 Functions of management are said to be weaving tog
ether.

02
People cooperate for a common purpose.

03
Managers and executives perform certain functions. PLANNING
04 According to Koontz and O’Donnell, the functions of
management are: Planning, Organizing, Staffing,
Directing and Controlling.

PLANNING
An indispensable function of management
determining the objectives to be achieved
and the course of action to be allowed to
achieve them.

A mental effort by which managers

anticipate the possible factors or causes
that may affect or change the activities
and objectives of a particular business or
organization. Portfolio Designed
What is the planning process, and
PLAN why would you need one?

A methodic technique of looking BASIC

ahead in order to meet work
requirements. The management planning process helps your company through the
steps of defining a desired outcome and developing a strategy to STEPS IN
achieve it. Setting this planning process in motion helps you move
forward with clarity, and saves you wastes time, energy and capital.
PLANNING

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DETERMINATION OF OBJECTIVES
"Objectives are goals, they are aims
which management and administration
wish the organization to achieve.”
- Robert C. Appley
SEARCH OF ALTERNATIVE COURSES
OF ACTION AND THEIR EVALUATION
To search and analyze alternative
courses of action. All probable alternatives
should be stated and compared and
analytically evaluated. This step calls for
the evaluation of alternative courses of
action and selecting the most appropriate
course of action.
BUDGETING
Determine how much
the planning will cost
to implement and if
the plan is ready to
taken into action.
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FORECASTING
"Forecasts are predictions or estimates
of the change, if any in characteristic
economic phenomena which may affect
one's business plans."
- Mefarland
DRAWING POLICIES AND
PROCEDURES
POLICIES PROCEDURES
"A verbal, written, or appli
ed overall guide setting up Crystal clear administrative
boundaries that supply the specifications prescribing
general units and direction the choronological order in
which repetitive activity is
s in which managerial acti
initiated, carried forward
on will take place."
and controlled.
- George R. Ferey
ORGANIZING
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Louis A. Allen
What is Organizing?
Organizing is the process of establishing orderly uses for all
“ Organisation is the process
of identifying and grouping
resources within the management system of the organization.
of the works to be
It is a function in which the synchronization and combination of
performed, defining and
human, physical, financial, and information resources takes delegating responsibility
place for the achievement of the results. and authority and
establishing relationships
for the purpose of enabling
people to work most
efficiently.
”

Chester Barnard
Organization Structure

“which
Organizing is a function by
the concern is able to
define the role positions, the
jobs related and the co-
ordination between authority
and responsibility.
” The organizational structure is to be designed for some concrete
Organization structure is the pattern of relationships among various
components or parts of the organization which prescribes the relations
among various activities and positions.
It defines the system of relations between elements, factors, and
activities within the organization.
conditions and objective needs of the organization.

Factors in the process of designing

the organizational structure: IMPORTANCE OF ORGANIZING

Environment
1. Efficient Administration
2. Resource Optimization
Forms of
3. Benefits Specialization
Technology
Aggregating 4. Promotes effective communication
5. Creates Transparency
6. Expansion and Growth
Size
Strategy

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Organizing Function of Management
Organization
unites the efforts of the people to realize objectives
Organizing is the function of mana-
gement which follows planning. It is a
function in which the synchronization
and combination of human, physical
and financial resources takes place.
All the three resources are important
to get results. Therefore, organizational
function helps in achievement of results
which in fact is important for the
functioning of a concern.
Authority
Authority is the legitimate power assigned to
a manager to make decisions, issue orders,
and allocate resources on behalf of the
organization to achieve organizational
objectives.
The extent and level of authority is defined
by the job role of the manager. Subordinates
comply with the manager’s authority as it is a
formal and legitimate right to issue orders.
essential part of the
manager’s job role
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Portfolio Designed
What are the Management
Principles of Organizing?
Principles of
The organizing process can be done efficiently if the managers have
certain guidelines so that they can take decisions and can act. To
organize in an effective manner, the following principles of
organization can be used by a manager.
Organizing
Work Specialization
Work specialization is the degree to which or
ganizational tasks are divided into separate
jobs. Each employee is trained to perform
specific tasks related to their specialized
function.
It makes the organization people dependent.
Hence organizations are creating and
expanding job processes to reduce depen-
dency on particular skills in employees and
are facilitating job rotation among them.
Also called division of labor
Chain of Command
It is an effective business tool to maintain
order and assign accountability even in the
most casual working environments. A chain
of command is established so that everyone
knows whom they should report to and what
responsibilities are expected at their level. A
chain of command enforces responsibility
and accountability. It is based on the two
principles of Unity of command and Scalar
Principle.
The chain of command is an
important concept to build a
robust organization structure
.
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Delegation Span of Control

It is the practice of turning over work-related tasks Refers to the number of employees who report to
and/or authority to employees or subordinates. one manager. It is the number of direct reportees
Without delegation, managers do all the work the that a manager has and whose results he is acco
mselves and underutilize their workers. The ability untable for.
to delegate is crucial to managerial success.
Delegation as a process involves establishment Span of control is critical in understanding organi-
of expected outcomes, task assignment, zational design and the group dynamics operating
delegation of authority for accomplishing these within an organization. Span of control may
tasks, and exaction of responsibility for their change from one department to another within the
accomplishment. same organization.

Delegation leads to empowerment,

as employees have the freedom to also referred to as
contribute ideas and do their jobs in Span of Management
the best possible ways.

STAFFING

It includes manning and keeping manned

the positions created by the
organizational structure.

Defines manpower requirements for

STAFFING the job to be done that includes

inventory, appraising, selecting people
for different positions, giving
compensations, and training hired
applicants to accomplish tasks
effectively.

STAFFING

Every manager is performing the staffing

function, although the some basic
responsibilities such as keeping inventory
of personnel, job advertising for its
vacancies, and calling candidates are
assigned to Human Resource
Management Office/ Department (HR)

The HRMD Manager performs job

analysis, description, work
DIRECTING
measurement, and other functons.

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CONCEPTS OF DIRECTING
Process of initiating action in accordance with what has
been planned

Portfolio Designed Consists of the processes and techniques utilized in

DIRECTING GUIDING AND

issuing instructions and making certain that operations
are carried on as originally planned

LEADING
SUBORDINATES

CONCEPTS OF DIRECTING CONCEPTS OF DIRECTING

A complex function that includes all those actions which
are designed to encourage subordinates to work effectively
and efficiently in both the short-range and long-range
actions respectively
Telling people what to do and seeing that they do it the best
of their ability.
Guidance, the inspiration, the leadership of those men and
women that constitute the real core of the responsibilities of
management.
Heart of administration, which involves determining the
course, giving orders and instructions, providing the dynamic
leadership.

Characteristics Of Directing Characteristics Of Directing

 Directing helps attain objectives
 Directing get things done
 Directing facilitates effective
 Directing initiates action organizational change

 Directing executes plans and decisions  Directing creates work environment

 Directing helps achieve coordination  Directing motivates and mobilizes personnel

 Directing helps develop future managers  Directing provides stability and growth of
the firm

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Techniques In Directing
01 Issuing Orders And Instructions

02 Supervising

03 Motivating And Mobilizing

04 Leading And Modeling

CONTROLLING
05 Communicating And Articulating

Controlling as a function involves

As Part of Management Function
Fixing standards
is the process whereby organization sets itself performance objectives and
strives to achieve them as best it can over time. It is a method for managing
the performance of the organization. Measurement of
Taking corrective
errors Actual Performance
It implies measurement of accomplishment against the standards and
correction of deviation if any to ensure achievement of organizational goals.

It is the process oriented to verify the advancement status of the planned Finding variances
objectives as well as the efficacy and efficiency of the organization through between the two and Comparing actual and
the analysis of the resources, costs and proceeds. the reasons for the Planned performance
variance

3 Types of Control in Management 3 Types of Control in Management

1. Feed forward controls
2. Concurrent controls are sometimes known as ‘in-process’ controls, t
hese controls apply to processes as they happen. Audible warnings
- are future directed, designed to detect and anticipate
mark this type of control.
deviations from standards at various points, focuses on
establishing conditions that makes it difficult or impossible for
deviations from norms to occur
3. Feedback controls are post-performance controls and they focus up
on the end results of the process. The information obtained is used f
- Examples include safety equipment, safety procedures, job
or corrective purposes. Adjustments and/or corrections follow the fee
descriptions, job specifications, inductions and orientation
dback input.
training etc.

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Requisites Of An Effective Control

How it helps?
Focus on critical points
01
It helps all the levels of management– Such points focus specifically on those areas at
which failures cannot be tolerated and where time
Top, Middle & Lower and costs are crucial.

Integration
It is a function that brings back the manage 02 Controls must not be haphazardly placed. They
ment cycle back to the planning function. must function harmoniously within the established
processes of the work.
Thus, the controlling function act as a tool
Acceptability
which helps in finding out that how actual 03 employees must accept the devices, tools or
performance deviates from standards and methods of control. The necessity, usage, and
appropriateness of the controls must blend with the
also finds the cause of deviations & attempt personnel involved.
which are necessary to take corrective
actions based upon the same. 04 Timeliness
Costs are frequently attributed to time shortcomings
or failures

Requisites Of An Effective Control

Importance of Controlling
Economic feasibility  Accomplishing Organizational Goals
05 expenses to any control or system of controls need
to be analyzed and the costs are to be compared
with the benefits.  Judging Accuracy of Standards

 Making Efficient use of Resources

Accuracy
06 The information for the control must be useful and
accurate  Improving Employee Motivation

 Ensuring Order & Discipline

Comprehensibility
07 Management must favour simplicity.
 Facilitating Coordination in Action

THANK YOU!