Chapter 2.

3: POLC

TOPIC 6: Planning, organizing, leading and controlling

WHAT IS MANAGEMENT?
 The process used to accomplish organizational goals through planning,
organizing, leading and controlling people and other organizational resources.

4 FUNCTION OF MANAGEMENT
 Planning
 Organizing
 Leading
 Controlling

MANGERIAL FUNCTION
 Henri Fayol was the first to describe the four (4) managerial functions when he
was the CEO of a large mining company in the later 1800’s
 Fayol noted, managers at all levels, operating in a for profit or not profit
organization, must perform each of the functions of planning, organizing, leading
and controlling.

(a) PLANNING
 Includes anticipating trends & determining the best strategies & tactics to achieve
organizational goals & objective
WHAT MANAGERS DO?
 Setting organizational goals
 Developing strategies to reach those goals
 Determining resources needed
 Setting precise standards
FORM OF PLANNING
 Strategic Planning – reflecting decision about resource allocations, company
priorities, and steps needed to meet strategic goals. Its done by top management
 Tactical Planning – Generally short-term plan concerned with implementing
specific aspects of a company’s strategic plans (what is to be done, who is to do it
and how)
 Operational Planning – setting short-term targets for daily, weekly, or monthly
performance (work standard & schedule)
 Contingency Planning – the process of preparing alternative courses of action
the firm can use if its primary plans don’t work out

(b) ORGANIZING
 Includes designing the structure of the organization & creating conditions &
systems in which everyone & everything work together to achieve the
organization’s goals & objective
WHAT MANAGERS DO?
 Allocating resources, assigning tasks, & establishing procedures for
accomplishing goals.
 Preparing a structure (organization chart)
  Recruiting, selecting, training, & developing employees
 Placing employees where they will be most effective
(c) LEADING
 Creating a vision for the organization & guiding, training, coaching & motivating
others to work effectively to achieve the organization’s goals & objectives.
WHAT MANAGERS DO?
 Guiding & motivating employees to work effectively to accomplish organizational
goals & objectives
 Giving assignments
 Explaining routines
 Clarifying policies
 Providing feedback on performance

(d) CONTROLLING
 Involves establishing clear standards to determine whether or not an
organization is progressing toward its goals & objectives, rewarding people for
doing a good job, & taking corrective action if they are not.
WHAT MANAGERS DO?
 Measuring results against corporate objectives
 Monitoring performance relative to standards
 Rewarding outstanding performance
 Taking corrective action when necessary

LEADERSHIP
 Process of influencing others in identifying and working towards a common
goal
 Creating a vision for others to follow, establishing corporate values & ethics, &
transforming the way the organization does business in order to improve its
effectiveness & efficiency

LEADERSHIP STYLE
 Autocratic- Involves making managerial decision without consulting others
 Participative (democratic)- Consists of managers & employees working together
to make decisions
 Free-rein- Involves managers setting objectives & employees being relatively free
to do whatever it takes to do accomplish those objective