Functions of Management

Functions of Management
Management is a process of achieving
organizational goals by engaging in
four major functions of planning,
organizing, leading and controlling
 Planning
• A thinking process to work out
objectives to be achieved for a given
time frame.
• Develop strategies inline with the
objectives and business plan of the
organization.
• It defines who will do what, how,
where, when and with which
resources.
Management
Functions
Monitoring & Controlling
• Measuring of performance in all pre-
determined objectives
• Determining reasons for deviation
and taking appropriate actions, as
necessary.
• Providing ways to ensure that the
organization moves towards
achieving the objectives.
Organizing
• Determine what tasks to be done.
• Effective assignment of resources
• How the tasks are to be grouped?
• Who will implement & coordinate
tasks?
• Who reports to whom?
• Logical & efficient work flow of the
organization
Leading
• Involves motivating subordinates.
• Selecting effective ways of
communication across all tiers
/levels.
• Resolving conflicts,
• Rational DM,
• Directing & guiding others with the
intention of achieving objectives.
4. Controlling
 Controlling
• It is a process of regulating organizational activities so that
actual performance conforms to expected standards and goals.
• It refers to activities taken on by the engineering manager to
assess and regulate work in progress, evaluate results for
objectivity, reduce and prevent unacceptable performance.
• Managerial control is crucial to efficiently implement any plan,
project or program.
– Any thing, including very well thought off plan, is likely to fail if it is
not adequately monitored and controlled.
• Controlling function requires execution of the following tasks;
– Setting performance standards
– Measuring performance
– Evaluating performance
– Controlling performance
 Controlling
(1. Setting Performance Standards)
• It is a process of specifying criteria by which work & results are
measured and evaluated – defining expected results
– What is; outstanding, above avg, avg, below avg and unacceptable
• Avg --- the expected performance level for the work / job by a person
with adequate training and dedication
• Setting performance standard provides a yardstick for measuring
performance of an individual
• Performance standard could be different from case to case
– how many (# of units produced)
– How good (quality, acceptance)
– How soon (timing)
– Technical / safety / market / financial standards, etc
 Controlling
(1. Setting Performance Standards)
• Effective performance standard is a metrics of parameters that
are reasonable, measurable, comparable, and indicative of the
expectations of work performance on objective basis to
– Conform to the expectations of the organization
– Considerate of human factors
– Promote worker growth
– Securing workers understanding and acceptance
• Performance standard should be
– Not confusing and vague
– Not tough / very high
– Not too low / shallow
– A bit challenging sometimes to help worker growth
– Commensurate to authority delegated and resources provided
 Controlling
(2. Measuring Performance)
• Measuring performance refers to recording and reporting of
work done and results attained.
• Engineering managers take following steps to measure
performance;
– Collect, store , analyze and report information systematically
– Compare the performance against established standards
– Issue reports (data, results, forecast of activities/project or
individual performance) to document results
• All measurements taken or made must be factual and accurate
to provide valid basis for performance evaluation
 Controlling
(3. Evaluating Performance)
• Performance evaluation is to judge work in progress, assess job
completed and provide feedback.
• Engineering managers take following steps to evaluate performance
of an employee;
– Establish limits of tolerance
– Note variations (deviation within tolerance limits) and exceptions
(deviation outside tolerance limits)
– Provide feedback to the employee
• recognition for good performance
• Mentoring for deviations
• Counseling for failures
 Controlling
(3. Evaluating Performance)
• A rating method used in the industry is to rank an employee in order
of five categories – outstanding, above avg, avg, poor and failure.
• Category ranking is based on performance metrics and each factor is
assigned a weight factor in Performance Evaluation Report (PER).
• PER comprise gross weighted total of all factors and written
comments for a period under review.
• PER is submitted to the senior management for review and approval.
• Employee is notified on approved PER and his feedback is taken in
writing on PER. In case of a disagreement, PER is reviewed
appropriately and addressed.
• Avg Performance : the level of performance expected of a person with adequate
training and dedication a given position.
• Poor Performance : work that is not meeting the acceptable standards ---not
completing assigned work in time, communication problems, interpersonal problems,
personality conflicts, etc
• Outstanding Performance :unexpected positive outcome of recognizable impact on
company’s objectives
 Controlling
(4. Controlling Performance)
• Controlling performance refers to rectifying and improving the
work done and results obtained.
• Following action may be taken an engineering manager;
– Provide feedback on performance appraisal metrics to the employee
– Offer negative feedback without attacking employee’s self esteem
– Feedback must focus on results and outcome, not the person, and
directed towards future not the past.
– Identify deficient technical skills and other personality issues with the
employee and explain possible remedy
– Arrange for more training if possible
– Arrange periodic performance counseling and mentoring during the next
performance measurement period
 Means of Control
• Engineering managers take following steps to measure
performance;
– Control of time
– Control of Personnel
– Control of knowledge
– Control of Projects
– Control of Quality
– Control of Business relationships
 Means of Control
(Control of Time)
• Time is a valuable and limiting resource for everyone
• Avoid wasting of time due to
– Confused job description
– Hierarchy not clearly defined
– Lack of planning
– Confused priorities
– Lack of self discipline
– Lack of personal drive / motivation
– Procrastination (unnecessary delaying, putting off)
– Long and irrelevant meetings
– Repetition – create systems instead
– Continuous self evaluation
 Means of Control
(Control of Time)
• Following techniques may help in managing time well
– Set ur routine – set goals for the day, week, month, and the year
– Prioritize tasks to be done
– Make a master to-do list
– Design ur office environment
– Maintain good office order and office place
– Plan each tasks beforehand and group some of them together
– Minimize interruptions during some specific time period of the day
– Make good use of travelling and waiting times
– Prepare and keep reports short and brief for superiors
– Get concise and objective regular feedback from subordinates
– Take one-minute break during daily work to evaluate & reorganize ur
activities
 Means of Control
(Control of Personnel)
• Higher level of control is required to manage low skill,
demotivated and unwilling subordinates
• For highly skilled personnel, less control is more effective.
• Manager may apply lower level of control to manage creative
people or those who are able to produce useful results, to
maintain a collaborative and creative work environment
– Excess control induces undesirable reactions & produces adverse effects
 Means of Control
(Control of Knowledge)
• Knowledge Management is the conscious process of defining,
structuring, retaining and sharing the knowledge and experience of
employees within an organization
• It aims to improve an organization's efficiency, save knowledge within
the company and boosting the organization’s decision-making ability.
• It consists of a cycle of creating, sharing, structuring and auditing
knowledge, to maximize the effectiveness of an organization’s
collective knowledge.
• Knowledge refers to the sum total of corporate intellectual properties,
composed of
– Patents
– Proprietary know-how
– Technical expertise
– Design and development procedures
– Scenario management - problem solving heuristics
– Management of projects / programs
 Means of Control
(Control of Knowledge)
• KM is a four step process
1. Discovery - How will knowledge inside the organization be
discovered?
2. Capture - How will new and existing knowledge be stored?
3. Process - How best can this knowledge be synthesized and
incorporated?
4. Share & benefit - How best can individuals within the
organization access this knowledge?
• KM efforts typically focus on organizational objectives such as
 improved performance,
 competitive advantage,
 innovation,
 the sharing of lessons learned,
 integration and continuous improvement of the organization.
• KM is an enabler of organizational learning.
 Means of Control
(Control of Projects)
• Engineering manager needs skills related to all facets of management
foundation to manage and control projects
• PM need to have drive, energy, broad technical knowledge, goal
oriented, focused and optimistic outlook to make project a success
• Project leaders exercise control over engineering projects by using
tools, including
– Gantt Charts, PERT and CPM
– Computer based software (Microsoft Project, Primavera, etc)
• Project control focuses on following key issues;
– Critical path activities
– Cost control
– Schedule control
– Manage deviations from plan
– Conflict resolution
– Collaboration among different players
 Means of Control
(Control of Quality)
• Companies focus on product and service quality attributes to
achieve success in the market place
• Quality is defined differently by different peoples within the
organization and outside as well, depending on their varied
interests and perspectives. For example;
– Production based - it is a reject rate and deviation from the
specification (production engineer view)
– Value based – it is in-terms of price and cost (Marketing manager
view)
– User based – it is a degree to which a product satisfies one’s
needs (customer view )
– Product based - it is related to he number of attributes offered by
a product (product designer view)
For the company to succeed in the market, requirement /perspective
of the user related to a product or service quality must be given top
priority.
 Dimensions of Quality
Product quality may be defined to have eight attributes/dimensions.
Which dimensions of product quality will have the most impact on product’s
success in the market??
1. Performance (operational characteristics)
2. Features
3. Reliability
4. Conformance to design specifications
5. Durability
6. Serviceability
7. Aesthetics (look and feel)
8. Perceived quality (affected by brand name and company reputation)

Which of these quality dimensions affect the product’s success in the market;
A. Automobiles --
B. Consumer products --
C. Office supplies --
D. Home appliances --
 Action Planning
• Action Planning is a process of establishing specific
objectives, action steps, schedule and a budget related to a
program, task or project.
• Following are important functions of Action Planning
– helps in focusing on critical areas that need attention and action,
and devise appropriate contingency plans to control deviations.
– states specific results to be accomplished and its accountability.
– delegation of responsibility and resources
– evaluation of performance on continuous basis
• A well developed project plan would help in effective
communication when many participants are involved
– peer departments, external supply chain partners, technology
partners, outsource works, etc.
 Action Planning
• Engineering managers are required to take following
steps for Action Planning at their tier of responsibility;
– Define specific objectives / goals / tasks
– Analyze critical needs
– Define standards
– Define key action steps
– Create a schedule
– Develop a budget
– Monitor, control, evaluate and update plans to meet the higher
objective/goal
• Action Planning require use of Project Management
Tools such as Program Evaluation & Review Technique
(PERT) or Critical Path Method (CPM) to effectively
implement and control the project activities.
– Software tools: Microsoft Project, Primavera