CHAPTER 5:

MANAGEMENT FUNCTION

INTRODUCTION

Management, whether in the school foodservice industry or

elsewhere is extremely critical because it is the root of all the key activities
that drive the majority of the organization's activities. Proper identification
and use of management tools according to the needs of the company
concerned is critical to ensuring effective production and service is
efficient. In the sense of food service in schools, this becomes all the more
complicated because not just the students, but the staff working at the
campus are here. In this class, you'll hear about the food preparation
methods as well as the food service team's organizational map in school
foodservice.

OBJECTIVES

LO 1. Define the management functions that create value for an organization;

LO 2. Understand the relationship between leadership and motivation;
LO 3. Identify the fundamental aspects of employee management;
LO 4. Enumerate the major objectives of performance management; and
LO 5. Know the difference and importance of marketing and branding.

LESSON PROPER
MANAGEMENT FUNCTION

A. MANAGEMENT AND ORGANIZATION

Management
"Management is a set of concepts relating to the roles of
planning, organizing, directing and regulating and the
implementation of those concepts in the efficient and effective use of
physical, financial, human and information capital to achieve
organizational objectives."
Five primary functions of management:
1. Planning
Planning is forward-looking, which decides the future of an entity.
According to Peter Drucker, "Planning is the ongoing process of
making present entrepreneurial decisions systematically and with
the best possible knowledge of their future, systematically
coordinating the efforts necessary to execute those decisions and
evaluating the outcomes of those decisions against expectations
through structured and systematic input.'

2. Organizing
Organizing involves a structured authority structure and a direction
 and flow of that authority in which subdivisions of work are
described, organized, and coordinated in such a way that each part
relates to the other part in a united and cohesive manner to achieve
the objectives set.
According to Henry Fayol, “To organize a business is to provide it
with everything useful or its functioning i.e. raw material, tools,
capital and personnel’s”.

3. Staffing
Staffing is the role of hiring and maintaining an adequate workforce
for the company at both the managerial and non-managerial levels.
It includes the process of hiring, educating, creating, compensating,
and assessing workers and with appropriate rewards and
motivations retaining this workforce.
According to Kootz & O’Donnell, "The management feature of
staffing includes managing the structure of the company through
the proper and efficient selection, assessment and recruitment of
personnel to fill the structure's planned roles."
4. Directing
The directing function is concerned with:
• Leadership includes giving orders and advising the
subordinates on strategies and procedures.
• Communication must be available in all directions so that the
information can be passed on and input obtained from the
subordinates.
• Motivation is very critical considering that highly motivated
individuals demonstrate excellent performance with less
superior guidance.
• Supervision subordinates would lead to ongoing progress
reports as well as assure superiors that the directions are being
carried out appropriately.
5. Controlling
According to Koontz & O’Donnell, "Controlling is the assessment
and correction of subordinates' performance practices to ensure
that the company's priorities and objectives are met."

The controlling function involves:

a. Establishment of standard performance.
b. Measurement of actual performance.
c. Measuring actual performance with the pre-determined
standard and finding out the deviations.
d. Taking corrective action.
B. LEADERSHIP AND

MOTIVATION What is

Leadership?
A mechanism by which the executive can steer, guide, and
influence other people's actions and function towards the achievement of
particular goals in a given situation.
Leadership is a manager's ability to inspire his subordinates to
function with confidence and zeal.
Leadership is the ability to affect others' behaviors.
According to Keith Davis, "Leadership is the ability to actively
encourage others to achieve established goals. It's the human aspect that
ties a community together and motivates it toward goals."

Importance of Leadership
1. Action initiates-Leader is an individual who starts the work by
transmitting the objectives and strategies to the subordinates from
where the work begins.
2. Motivation-A leader is proving to play a motivational role in the work of
the concern.
3. Providing direction- A leader must not only supervise the
subordinates but also play a leading role. Here, advice means the
instruction of the subordinate.
4. Creating trust- Confidence is an essential factor that can be
accomplished by communicating the work efforts to the subordinates,
clearly describing their position, and providing them guidance for
achieving the goals. effectively. It is also important to hear about your
complaints and issues from the employees.
5. Building morale- Morale denotes the desire of the workers to
cooperate towards their job and trust them and gain their trust.
6. Builds work environment- Management is bringing employees to do
stuff. A productive work environment helps to develop soundly and
stably.
7. Teamwork-Coordination can be accomplished by reconciling personal
and organizational interests.

Role of a Leader
• Mandatory at all levels
• Corporate Delegate
• Combines and reconciles personal priorities with organizational objectives;
• He pleads for help
• A philosopher, a friend, and a guide

What is Motivation?
Motivation is derived from the word 'motive' which means needs,
wishes, desires, or drives inside the individual. It's the method of motivating
people to take action to achieve their goals. In the context of the work
objective the psychological factors that influence the actions of the people
may be:
 • desire for money
• success
• recognition
• job-satisfaction
• teamwork
Maslow’s Need Hierarchy Model
Human action is purpose-driven. Goal-driven behavior generates
motivation. It is by inspiration that the needs can be consciously managed
and answered. By understanding the hierarchy of needs per boss, this can
be appreciated. Individual desires act as a driving force in human behavior.
But a boss needs to consider the "hierarchy of needs." Maslow suggested
“The Need Hierarchy Model’.

FIGURE 4 MASLOW'S HIERARCHY OF NEEDS

Importance of Motivation
For a company motivation is very important because it offers the
following benefits:
1. Put human resources into action- To achieve the goals, every
issue needs physical, financial, and human capital.
2. Improves employee productivity-The quality of a manager or an
employee does not depend solely on his or her skills and abilities.
To get the best out of his work results, the gap between skill and
willingness has to be filled which helps to improve subordinates'
results level. This results in:
a. Stepping up productivity,
b. Reducing running costs, and
c. Improving performance overall
3. Leads to achieve organizational objectives-An enterprise's goals
can only be accomplished when the following factors occur:
a. Assets use is ideally feasible,
b. The work environment is cooperative,
c. Employees are target-driven and behave deliberately,
d. Goals can be achieved when there are mutual
teamwork and collaboration and can
efficiently accomplished through encouragement.
 4. Builds a good relationship- Motivation is a significant factor that
gives happiness to the employees. This can be achieved by
having an incentive package in mind and presenting it for the
good of the workforce. This may set the following things in
motion:
a. Incentives in monetary and non-monetary terms,
b. Promoting employee chances,
c. Disincentives of employee ineffectiveness.
5. Leads to workforce stability- Workforce stability is very critical from
the perspective of a concern's credibility and goodwill. The workers
will only stay loyal to the company when they have a sense of
involvement in the management.

C. EMPLOYEE MANAGEMENT

What is Employee Management?

Employee management is a method that makes the employees work
at their best and attain their company objectives. It's a systematic process
that includes everything related to human resources such as hiring new
workers, handling payroll, monitoring results, and more.
Employee management covers three key areas:
• Acquisition – Selecting the best applicants and hiring them.
• Engagement and retention – Ensure the workers are satisfied,
dedicated, and remain as long as possible.
• Performance Management – Monitor and execute performance
evaluations, help them improve consistently, and reward hard work.

What Are the Main Aspects of Workforce Management?

During the hiring process, you have to pick the right candidates.

• Measurement. You have to determine whether an employee is

meeting goals and performs exceptionally well.
• Monitoring. You have to monitor the measurement.
• Interplay. You must communicate, ask for feedback, and interact
with staff, and vice versa.
• Reward. The workers must be compensated for excellent results.
• Discipline. When workers show bad results, you have to punish
them, this may lead to termination.
• Selection. During the recruiting process, you have to pick the right
applicants.
• Measurement. You have to determine if the employee meets the
objectives and has exceptional performance.
• Monitoring. You need to monitor the measurement.
• Interplay. You must communicate, ask for feedback, and interact
with staff and vice versa.
• Reward. The workers must be compensated for outstanding performance.
• Discipline. You have to discipline workers when they show poor
performance, this may lead to termination.

D. PRODUCTIVITY AND PERFORMANCE

MANAGEMENT What is Performance

Management?
Performance management can be seen as a structured mechanism
in which an organization's overall performance can be enhanced by the
performance of individuals within a team structure. It is a means of
cultivating superior performance by communicating goals, identifying
positions within the necessary structure of competence, and setting
achievable benchmarks.
Performance management, based from Armstrong and Baron
(1998), is both a strategic and an integrated approach for achieving
successful results in organizations by improved success and improving
team and individual skills.
The following acts constitute a Performance Improvement system:
• Create specific job requirements and management plans for workers
including main outcome areas (KRA') and management indicators;
• Choosing the correct group of people by introducing a suitable
selection method.
• Negotiate result assessment and overall efficiency criteria and
performance expectations against the predefined benchmarks;
• Continuous coaching and encouragement throughout the success
delivery period;
• Defining the training and growth needs by assessing the results
achieved against the criteria set and by implementing successful
performance implementation programs.
• Conduct quarterly management planning meetings and assess the
success of employees based on performance plans;
• Design appropriate incentive and reward programs to identify all
workers who meet the performance expectations by meeting the
criteria set in compliance with the performance plans.
• Supporting workers with promotional / career growth and guidance;
• Exit interviews to clarify the source of employee dissatisfaction and
eventually leave
The major objectives of performance management are:
• Allowing workers to achieve higher work performance levels.
• Helping workers recognize the expertise and skills needed to do the
job effectively as this would shift their attention to executing the right
task in the right direction.
• Push their attention in the right direction to accomplish the right mission.
• Improve employee efficiency by promoting employee confidence,
encouragement, and successful incentive program implementation;
• Promoting a two-way communication mechanism between
supervisors and employees to explain responsibilities and
accountability requirements, to communicate functional and
organizational priorities, to provide frequent and consistent feedback
to improve employee performance and continuous coaching.
• Identifying and addressing barriers to effective success by
continuous
monitoring, coaching, and development approach.
• Establishing a basis for strategic planning, succession planning,
promotions, and performance-based payment of several
administrative decisions.
• Encouraging professional development and employee career
progression by helping them to gain the knowledge and skills they
 need.

Two of the main issues of an organization's performance

management framework are:

• In terms of output (results achieved), outcomes, processes required

to achieve results, and also inputs (knowledge, competencies, and
attitudes).
• Concerned with measuring outcomes and assessing progress in
achieving targets set.
• Defining business plans to shape a successful future in advance.
• Continuous improvement and development through the creation of a
learning culture and an open system;
• Developing a culture of trust and mutual understanding that
encourages free communication at all levels in matters such as
clarifying expectations and sharing information on the core values of
an organization that binds the team together.
• Ensuring procedural fairness and accountability in the decision-
making process.

An effective performance management system includes the

following components:

1. Performance Planning: Performance planning is the first key

component of the method of performance management that forms
the basis of performance evaluations.
2. Performance Appraisal and Reviewing: The evaluations are
typically conducted twice a year in a company in the form of mid-
reviews and annual reviews at the end of the financial year.
3. Feedback on performance accompanied by personal therapy and
performance facilitation: in the performance improvement process,
feedback and therapy are given a lot of importance.
4. Rewarding good performance: This is a very important factor
since it will decide on an employee's job motivation. A staff member
is publicly recognized for good performance at this point and is
rewarded.
5. Performance Management Plans: Fresh set of targets for an
employee is being developed at this stage and new deadlines are
being given to meet those goals.

6. Potential assessment: Potential assessment forms the basis for

lateral as well as vertical employee movement. Potential
assessment is conducted by incorporating competency mapping and
multiple evaluation techniques.

E. FINANCIAL PLANNING, OPERATIONS, AND ACCOUNTABILITY

What is Financial Planning?

Financial planning is the mechanism by which the capital needed

is calculated and its competition decided. It is the method of defining
financial policies relating to an enterprise's acquisition, expenditure, and
fund administration.
Objectives of Financial Planning
Financial preparation has multiple priorities to jump on:
a. Determining capital needs-This will depend on factors such as
operating and fixed asset costs, advertising, and long-range
planning expenses. Capital requirements have to be looked at in
both aspects: requirements for the short and long term.
b. Determining capital structure-The capital structure is the
composition of capital, i.e. the relative existence and proportion of
capital needed in the company. This includes judgments on the
short- and long-term debt-equity ratio.
c. Framing financial policies relating to cash management, loans, borrowing,
etc.
d. A finance manager ensures that to get optimum returns on
investment, the scarce financial resources are used at least cost in
the best possible way.

Importance of Financial Planning

Financial planning is the practice of defining goals, strategies,
practices, services, and budgets affecting a concern's financial activities.
This ensures the financial and investment plans are efficient and sufficient.
The significance can be classified as:
1. Adequate funds must be given.
2. Financial planning helps ensure a fair equilibrium between the
outflow and the inflow of funds to preserve stability.
3. Financial planning means those fund suppliers invest efficiently
in financial planning firms.
4. Financial planning helps to establish growth and expansion
strategies that lead to the long-term survival of the company.
5. Financial Planning reduces uncertainties about changing market
trends that can easily be coped with through sufficient funds.
6. Financial planning helps reduce uncertainties that can be a
barrier to the company's growth. This helps to ensure a d
profitability in regards to stability.

The Role of the Finance Function in Organizational Processes

• The Finance Function and the Project Office
To survive recessionary times, contemporary organizations need to
exercise cost control. Given that many top tier companies are
currently mired in low growth and fewer situations of activity, they
must control their costs as much as they can.
• The Finance Function's management of the pension fund and
tax activities
The role of the finance function is in the processing of payroll,
claims and the repository of pension schemes and gratuity
• Payroll, Claims Processing, and Automation
Another role of the finance function is to process payroll and
associated benefits in time and tune with the regulatory
requirements.

Role of a Financial Manager

- The company's financial operations are one of the company's most
significant and dynamic tasks. Therefore, a financial manager
conducts all the necessary financial tasks to take care of these
 tasks.
- A financial manager is a person who cares about all of the
organization's essential financial functions. The person in charge
should have a far- sightedness to ensure that the funds are used
most effectively. His behaviors directly impact the Company's
performance, growth, and goodwill.

Financial Manager's principal roles are as follows:

1. Raising of Funds
- To meet the business's obligation, it is important to have ample
cash and liquidity. A firm can pay funds through equity and debt.
A financial manager must assess the ratio between debt and
equity.
2. Allocation of Funds
- Upon raising the funds through various channels, the next
important function is to distribute the funds. The funds should
be distributed in such a way as to allow full use of them. The
following point must be considered to allocate the funds in the
best possible way.
• The size of the company and its capacity to expand
• Long-term or short-term status of the properties
• The way the funds are collected
3. Profit Planning
- Profit earning is a prime feature of any corporate enterprise.
Benefit earning is necessary for any organization's existence and
sustenance.
- Benefit planning refers to a careful utilization of the company's
generated benefit.
4. Understanding Capital Markets
- Business shares are traded on the stock exchange, and stocks
are continually sold and purchased. Therefore, a good
understanding of the stock market is a financial manager's
essential feature.

F. MARKETING AND BRANDING

Marketing is the method of keeping prospective buyers or clients

involved in goods and services. "Process" is the main word in this
definition; marketing includes investigating, advertising, selling, and
distributing the goods and services.

Types of Marketing
▪ Influencer Marketing- Marketing influencer focuses on exploiting
individuals who influence potential customers and orienting
marketing efforts around those individuals to bring a brand message
to the wider market.
▪ Marketing relationship- According to the National Advertisers'
Association (ANA), the marketing relationship relates to techniques
and methods for building loyalty by segmenting customers.
▪ Viral Marketing-is a marketing technique that promotes and
inspires people to get a marketing message across.
▪ Green Marketing – relates to the production and promotion of goods
believed to be environmentally friendly (i.e. intended to reduce
 harmful effects on, or enhance, the physical environment).
▪ Keyword Marketing-requires putting a marketing message in front
of users based on the unique keywords and search phrases used.
▪ Guerilla Marketing-defines an innovative and inventive marketing
technique aimed at generating maximum results with the limited
resources available.

4 P’s of Marketing
1. Product-defined as a set of attributes (features, functions, benefits,
and uses) that can be exchanged or used; typically, a mixture of
tangible and intangible forms;
2. Price-is the formal ratio indicating the amount of money, goods, or
services necessary to purchase a specified amount of goods or
services.
3. Place (or distribution)-refers to the act of marketing and
transportation of goods to consumers. It is often used to define the
degree to which the product concerned has market coverage.
4. Promotion – According to the National Advertisers' Association
(ANA), marketing promotion includes tactics that promote short-
term purchases, influence trials and purchase quantities, and are
very measurable in volume, share, and profit.

Four Activities or Components of Marketing:

1. Creating-The process of collaborating with suppliers and clients
to create value-added offers.
2. Communicating-Broadly describing those offers and learning from
customers as well.
3. Delivery-Get those offers to the consumer in a manner that optimizes
value.
4. Exchange-Trading value in respect of those offers.

What is Branding?
Branding is by definition a marketing activity where a organization
produces a brand, emblem, or design that can be recognized as belonging
to the company. This helps to recognize and differentiate a commodity from
other goods and services.
Why Is Branding Important?
✓ Branding is utterly important to a company owing to its ultimate
effect on the company. Branding can shift the way the brand is
viewed by consumers, can attract new business, and increase brand
recognition.
✓ The main reason why branding is important for a company is
because it is how a company gets attention and becomes
recognizable to customers. The logo is one of the important
branding features, particularly given that it is the face of the
business.
✓ Branding Increases Market Value — Branding is crucial when it
comes to attracting potential sales, and a well define brand will
improve the profitability of a business by giving the company more
influence in the industry.
✓ Branding attracts new buyers — A successful brand won't have
trouble drumming up the referral. Good branding usually means
 that customers have a favorable view of the company and they are
likely to do partnership with you because of the trust, familiarity, and
perceived reliability of having a name that they can trust. If a brand
is well-established, word of mouth would be the strongest and most
effective promotional strategy for the company.
✓ Increases Employee Pride and Happiness- When an employee
works for a highly branded business and is genuinely behind the
brand, they will be more pleased with their job and feel prouder of
the work they do.
✓ Creates Business Confidence — Professional presence and well-
strategized branding can help create confidence with buyers,
potential customers.
✓ Branding Advertisement Supports — Advertisement is another
aspect of branding, and advertising campaigns can explicitly
represent the brand and its desired image.