Major Managerial Functions

BY- DISHTI KHANDEKAR

 The major managerial functions are:-

 Planning - Deciding in advance the objectives to be achieved and preparing plans for achieving them.
 Forecasting - Process of predicting or estimating the future based on past and present data.
 Decision-Making - Process by which a decision is taken.
 Direction – Process through which a manager communicates with and influences other members of the organisation in the pursuit
of company objectives.
 Motivation – The managerial function of ascertaining the motives of subordinates and helping them to realise these motives.
 Organising – Determining, grouping and arranging of various activities deemed necessary for the attainment of objectives.
 Controlling – Systematic effort by business management to compare performance to predetermined plans.
Nature of Planning
Planning is a primary function.
Planning is all pervasive.
Planning is an intellectual process.
Planning is continuous process.
Planning is forward looking.
Need and Importance of
Planning Advantages of Planning
Planning is needed for survival and Brings unity of purpose and direction.
growth of a business unit in an orderly
manner. Ensures full utilization of resources.
Planning is needed in order to face new Avoids inconsistency in efforts.
problems/ difficulties developed due to Raises competitive capacity/strength.
growth of markets, market competition,
changes in consumer expectations and so Promotes managerial efficiency.
on.
Planning is needed in order to face
challenges created by changing
environmental factor/ forces.
Types of Planning
Single use or one time plan
Standing plans
Subject plans
Long-term plans
Middle-term plans
Short-term plans
Strategic plans
Operational plans
Tactical plans
Steps in the planning
process Disadvantages of Planning
i. Classifying the problems Time-consuming and costly.
ii. Determining the objectives Ineffective due to environmental
changes.
iii. Collecting complete information
and data Dangers of unreliable data.
iv. Analysing and classifying the
information
Delays actions.
v. Establishing planning premises
Unsuitable to small firms.
vi. Determining alternative plans
vii. Selecting operating plan and
preparing derivative plans
viii. Arranging timing and sequence of
operations
ix. Securing participation of employees
x. Follow-up of the proposed plan
 Features of
forecasting
 Concerned with future events.
 Shows the probability
happening of future events.
 Analysis past and present data.
 Uses statistical tools
techniques.
 Uses personal observation.
Need and
Advantages
 Provides relevant and
of reliable information about
the past and present events.
 Gives confidence to the
and
managers for making
important decisions.
 Basis for making planning
premises.
Major Areas
 Predicts what the general
business conditions will be
in the future.
 Predicts probability and/or
possible future development
in technology.
 Predicts the quantity and
timing of demand for a
firm’s product.
 Methods and
Steps of Forecasting Techniques Disadvantages

i. Analysing & understanding  Simple average technique.  Based on assumptions.

the problem.  Matrix technique.  Not always true.
ii. Developing sound  Graphic charting technique.  Costly and time consuming.
foundation.
 Brainstorming technique.
iii. Collecting and analysing
data.  Scenario writing.
iv. Estimating future events.  Time-series forecasting.
v. Comparing results.
vi. Follow up actions.
 Characteristics of
decision-making Process Techniques

 Implies choice. i. Defining/identifying the  Operations Research.

managerial problem.
 Continuous process.  Linear Programming.
ii. Analysing the problem.
 Pervasive process.  Games theory.
iii. Developing alternate solutions.
 Time-consuming activity.  Probability Theory Analysis.
iv. Selecting the best solution out
 Goal oriented process.  Stimulation.
of the available alternatives.
v. Converting the decision into
action.
vi. Ensuring feedback for follow
up.
 Characterstics of
Direction Importance Principles

 Pervasive function.  Initiates action.  Unity of Command

 Continuous Activity.  Integrates efforts.  Appropriateness of Direction
Technique
 Executive function.  Means of motivation.
 Managerial Communication.
 Creative activity.  Provides stability.
 Comprehension.
 Delegate function.  Efficient utilisation of resources.
 Use of informal organisation
 Leadership.
 Characterstics of
Motivation Importance Types

 Continuous process  Increase in efficiency and i. Intrinsic

productivity.
 Goal oriented ii. Extrinsic
 Security of employment.
 Dynamic process
 Reduction in the rate of
 Essence of management
labour absenteeism and
process.
turnover.
 Complex subject
 Job satisfaction.
 Tools Theories Principles

 Fair treatment to employees.  Abraham Maslow’s Hierarchy of i. Recognise the individuality of

Needs Theory. individuals.
 Recognition of good work.
 Fredrick Herzberg’s Theory. ii. Make your subordinates feel
 Delegation of authority.
special.
 David McCelland’s Achievemet
 Congenial working conditions.
Motivation, Manifest Need iii. Set a good example.
 Fair opportunity of promotion. Theory.
iv. Encourage participation.
v. Listen attentively.
 Features of
Organisation Steps Objectives

 Division of work i. Identification of activities.  To help management.

 Coordination
 Common Objective
 Co-operative relationship
 Well defined authority-
responsibility relationship.
ii. Departmentally organising  To increase production.
the activities.
 Co-operation of
iii. Classifying the authority.
employees.
iv. Coordination between
authority and responsibility.
 Types Delegation Decentralisation

i. Flat. Transfer of authority from Even and systematic

superior to subordinate. distribution of authority at
ii. Functional. every level of management.
iii. Product.
iv. Geographical.
 Features of
Controlling Elements Process

 Continuous process.  The characteristic or i. Fixing the control

 Closely linked with condition to be standards
planning. controlled. ii. Measuring the actual
 The sensor. performance
 Management process.
 The Comparator iii. Comparison
 Forward looking.
 An end process
 The activator. iv. Corrective Action
v. Follow-up