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Functions of Management

Functions of Management
organizations need plans, direction and control and all these will function only with effective organization. These elements, planning, directing, controlling,staffing, and organizing are called managerial functions

POSDCORB is an acronym widely used in the field of Management and Public Administration that reflects the classic view of administrative management. It first appeared in a 1937 staff paper by Luther Gulick and Lyndall Urwick written for the Brownlow Committee.

Planning, Organizing, Staffing, Directing, Coordinating, Reporting, Budgeting.

In Gulick's own words, the elements of POSDCORB are as follows Planning, that is working out in broad outline the things that need to be done and the methods for doing them to accomplish the purpose set for the enterprise; Organizing, that is the establishment of the formal structure of authority through which work subdivisions are arranged, defined, and co-ordinated for the defined objective; Staffing, that is the whole personnel function of bringing in and training the staff and maintaining favourable conditions of work; Directing, that is the continuous task of making decisions and embodying them in specific and general orders and instructions and serving as the leader of the enterprise;

Co-Ordinating, that is the all important duty of interrelating the various parts of the work; Reporting, that is keeping those to whom the executive is responsible informed as to what is going on, which thus includes keeping himself and his subordinates informed through records, research, and inspection; Budgeting, with all that goes with budgeting in the form of planning, accounting and control

A plan is a predetermined course of action which provides purpose and direction of an organization. Planning is foreseeing future circumstances and requirements, then, setting objectives, making long and short term plans and determining the policies to be followed with standards to be set

What Is Planning?
Actions that transform a system from a given starting state to the goal state Predetermines what the organization proposes to accomplish and how it intends realizing its goals

What Is Planning?
A primary managerial activity that involves:
Defining the organizations goals Establishing an overall strategy for achieving those goals Developing plans for organizational work activities.

Types of planning
Informal: not written down, short-term focus; specific to an organizational unit. Formal: written, specific, and long-term focus, involves shared goals for the organization.

Purposes of Planning
Provides direction Reduces uncertainty Minimizes waste and redundancy Sets the standards for controlling

Elements of Planning
Goals (also Objectives)
Desired outcomes for individuals, groups, or entire organizations Provide direction and evaluation performance criteria

Documents that outline how goals are to be accomplished Describe how resources are to be allocated and establish activity schedules

Financial Goals
Are related to the expected internal financial performance of the organization.

Strategic Goals
Are related to the performance of the firm relative to factors in its external environment (e.g., competitors).

Stated Goals versus Real Goals

Broadly-worded official statements of the organization (intended for public consumption) that may be irrelevant to its real goals (what actually goes on in the organization).

Types of Plans

Types of Plans
Strategic Plans
Apply to the entire organization. Establish the organizations overall goals. Seek to position the organization in terms of its environment. Cover extended periods of time.

Operational Plans
Specify the details of how the overall goals are to be achieved. Cover short time period.

Types of Plans
Long-Term Plans
Plans with time frames extending beyond three years

Short-Term Plans
Plans with time frames on one year or less

Specific Plans
Plans that are clearly defined and leave no room for interpretation

Directional Plans
Flexible plans that set out general guidelines, provide focus, yet allow discretion in implementation.

Types of Plans
Single-Use Plan
A one-time plan specifically designed to meet the need of a unique situation.

Standing Plans
Ongoing plans that provide guidance for activities performed repeatedly.

The Planning Process

GOAL SETTING Identification and formulation of objectives

Revision Choices between alternative plans of goals and plans


IMPLEMENTATION Execution of the plan

Establishing Goals and Developing Plans

Traditional Goal Setting
Broad goals are set at the top of the organization. Goals are then broken into sub goals for each organizational level. Assumes that top management knows best because they can see the big picture. Goals are intended to direct, guide, and constrain from above.

Steps in Goal Setting

1. 2. 3. 4. Review the organizations mission statement.
Do goals reflect the mission?

Evaluate available resources.

Are resources sufficient to accomplish the mission?

Determine goals individually or with others.

Are goals specific, measurable, and timely?

Write down the goals and communicate them.

Is everybody on the same page?


Review results and whether goals are being met.

What changes are needed in mission, resources, or goals?

Developing Plans
Contingency Factors in A Managers Planning
Managers level in the organization
Strategic plans at higher levels Operational plans at lower levels

Degree of environmental uncertainty

Stable environment: specific plans Dynamic environment: specific but flexible plans

Length of future commitments

Commitment Concept: current plans affecting future commitments must be sufficiently long-term to meet those commitments.

Planning in the Hierarchy of Organizations

Approaches to Planning
Establishing a formal planning department
A group of planning specialists who help managers write organizational plans.
Planning is a function of management; it should never become the sole responsibility of planners.

Involving organizational members in the process

Plans are developed by members of organizational units at various levels and then coordinated with other units across the organization.

Successful Planning Process

Everyone participates Board and staff educated about planning Board and staff explore new ideas Board takes advantages of opportunities Necessary resources available

Making Planning Effective

Linked to Long term objectives Consistency Everyone participates Feasible Flexible Simple Top Management Support

Criticisms of Planning
Planning may create rigidity.
Plans cannot be developed for dynamic environments.

Formal plans cannot replace intuition and creativity.

Planning focuses managers attention on todays competition not tomorrows survival.

Formal planning reinforces todays success, which may lead to tomorrows failure.