The Functions of Management

Presented by: Dr. Alexander, SE, MM

Introduction to Management 1
 Subjects
• Planning
• Organizing
• Leading
• Controlling

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 Part One

Planning

Introduction to Management 3
 Reasons for Planning

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 Planning Activities

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 Formal Planning Steps

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 Planning/Control Cycle

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 Levels of Management and Types of Planning

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 Benefits to a Firm that Does Strategic Planning

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 The Strategic Management Model
Where are we now?

Where do we want to go?

How are we going to get there?

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 Stages of Strategic Management

Strategy Strategy Strategy

formulation implementation evaluation

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Comprehensives Strategic Management Model
Ethics, Social Responsibility, and Sustainability

External
Assesment

Strategy
Strategy Strategy
Setting Implementation
Vision and Mission Generation Implementation Strategy
Long Term (Management
Development and (Marketing, Monitoring
Objectives and Operational
Selection Finance/Accounting,
Issues) R&D, and MIS Issues)

Internal
Assesment

Global/International Issues

Strategy Strategy Strategy

Formulation Implementation Evaluation

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 Part Two

Organizing

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 The Major Features of an Organization
• Common Purpose: the means for unifying members.
• Coordinated Effort: working together for common purpose.
• Division of Labor: work specialization for greater efficiency.
• Hierarchy of Authority: the chain of command.
• Span of Control: narrow (or tall) versus wide (or flat).
• Authority: accountability, responsibility, and delegation.
• Centralization versus Decentralization of Authority: the important
decisions are made by higher-level versus middle-level and
supervisory-level managers.
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 Organizational Design
• Organizational design: concerned with designing the optimal structures of
accountability and responsibility that an organization uses to execute its
strategies.
• Organization chart: a box-and-lines illustration showing the formal lines of
authority and the organization’s official positions or work specializations.
• The three broad categories of organizational design:
1. Traditional designs (simple, functional, divisional, and matrix structures).
2. Horizontal designs (horizontal structure).
3. Designs that open boundaries between organizations (hollow, modular,
and virtual structures).

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 The Six Basic Elements of Organizational
Structure
• Work specialization: dividing work activities into separate job tasks (also called division of
labour).
• Departmentalization: how jobs are grouped together (function, product, customer,
geographic, process).
• Authority: the rights inherent in a managerial position to give orders and expect them to be
obeyed and responsibility: an obligation to perform assigned duties.
• Span of control: the number of employees a manager can efficiently and effectively
supervise.
• Centralization: the degree to which decision making takes place at upper levels of the
organization versus decentralization: the degree to which lower-level managers provide
input or actually make decisions.
• Formalization: how standardized an organization’s jobs are and the extent to which
employee behavior is guided by rules and procedures.

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 Simple Structure

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 Functional Structure

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 Divisional Structure

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 Divisional Structure

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 Divisional Structure

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 Matrix Structure

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 Horizontal Design

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 Hollow/Network/Modular Structure

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 Contingency Factors Affect Structural Choice
• Strategy
• Size
• Culture
• Technology
• Environment

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 Learning Organization

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 The Three Levels of Organizational Culture

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 Part Three

Leading

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 Definitions:
• Leader: someone who can influence others.
• Leadership: the ability to influence employees to voluntarily pursue organizational goals.
• Leadership coaching: the process of enhancing the skills and abilities that a leader needs in
order to help the organization achieve its goals.
• Supervisory leadership: behavior that provides guidance, support, and corrective feedback
for day-to-day activities.
• Managerial leadership: involves both influencing followers to internalize and commit to a set
of shared goals, and facilitating the group and individual work that is needed to accomplish
those goals.
• Strategic leadership: behavior that gives purpose and meaning to organizations, envisioning
and creating a positive future.
• Power: the ability to influence other people.
• Influence tactics: conscious efforts to affect and change behaviors in others.

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 Traditional vs Today Thinking of Leadership

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 Characteristics of Managers and Leaders

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 The Six Sources of Leaders’ Power
1. Legitimate Power: influencing behavior because of one’s formal
position.
2. Reward Power: influencing behavior by promising or giving
rewards.
3. Coercive Power: influencing behavior by threatening or giving
punishment.
4. Expert Power: influencing behavior because of one’s expertise.
5. Referent Power: influencing behavior because of one’s personal
attraction.
6. Informational Power: influencing behavior because of the logical
and/or valuable information one communicates.
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 Nine Common Influence Tactics
1. Rational persuasion: trying to convince someone with reason, logic,
or facts.
2. Inspirational appeals: trying to build enthusiasm by appealing to
others’ emotions, ideals, or values.
3. Consultation: getting others to participate in planning, decision
making, and changes.
4. Ingratiation: getting someone in a good mood prior to making a
request.
5. Personal appeals: referring to friendship and loyalty when making a
request or asking a friend to do a favor.

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 Nine Common Influence Tactics (cont’d)
6. Exchange: making explicit or implied promises and trading favors.
7. Coalition tactics: getting others to support your efforts to persuade
someone.
8. Pressure: demanding compliance or using intimidation or threats.
9. Legitimating tactics: basing a request on authority or right,
organizational rules or policies, or explicit/ implied support from
superiors.

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 Traditional Approaches of Leadership
• The trait approach
• Attempts to determine the personal characteristics that great
leaders share.
• Identify distinctive characteristics that account for the
effectiveness of leaders.
• Isolate characteristics (traits) that differentiate leaders from non-
leaders.

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 Traditional Approaches of Leadership
• The behavioral approach
• Attempts to identify what good leaders do related to behaviors
they exhibit.
• Determine the key behaviors displayed by effective leaders.
• Isolate behaviors that differentiate effective leaders from
ineffective leaders.
• The situational/contingency approach
• Effective leadership behavior varies from situation to situation.
• Effective leadership behavior depends on the situation at hand.

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 Contemporary Leadership Perspectives
• Charismatic leader: enthusiastic, self-confident leader whose personality and
actions influence people to behave in certain ways.
• Visionary leader: leader who has ability to create and articulate a realistic,
credible and attractive vision of the future that improves on the present situation.
• Transactional leader: leader who leads primarily by using social exchanges (or
transactions).
• Transformational leader: leader who stimulates and inspires (transforms)
followers to achieve extraordinary outcomes.
• Leader-Member Exchange leader: leader who has different sorts of relationships
with different subordinates.
• Servant leader: leader who helps both followers and organization to achieve goal.

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 Contemporary Leadership Concepts
1. Leading with humility.
2. Empowering leadership.
3. Ethical leadership.
4. The role of followers.
5. Abusive supervision.

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 Part Four

Controlling

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 Planning–Controlling Link

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 Six Reasons Control is Needed

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 Steps in the Control Process

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 Common Measures of Performance Standards

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 Types of Control

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 The Balanced Scorecard: A Comprehensive
Approach to Managerial Control

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 The PDCA Cycle: Plan-Do-Check-Act

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 References
Bateman, T. S., & Konopaske, R. (2022). Management (7th ed.). New
York: Mc Graw Hill.
David, F.R., David, F.R., & David, M.E. (2020). Strategic Management: A
Competitive Advantage Approach, Concept & Cases, 17th ed.,
Pearson, 636p.
Kinicki, A., & Soignet, D. B. (2022). Management: A Practical
Introduction (10th ed.). New York: Mc Graw Hill.
Stephen, R., Coulter, M., DeCenzo, & Woods, D. A. (2022).
Management: The Essentials (5th ed.). Melbourne: Pearson.

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