Functions

of
Management
fORM 4c
fRIDAY 5TH fEB 2021
 Introduction
Look at five people working in Toney Inc. as described below.

Gabriel Modeen
Corey Mapp Faith Cozier Kyle Davis
Cummings Godridge
Introduction

Hi, I am Gabriel Cummings. I am a

member of the Board of Directors at
Toney INC. I am one of the people in
the organization who is responsible
for laying down the objectives and
broad policies of the organization. I
also play a part in preparing the
strategic plans and the preparation of
department budgets, procedures,
schedules etc. I am responsible for
taking into consideration available and
prospective human and physical
resources of the organization so as to
get effective co-ordination,
contribution and perfect adjustment.
Introduction

Hi, I am Moodeen Goodrige. I work as a

Human Resources (HR) Manager at
Toney Inc. I am responsible for the
managerial function of staffing which
involves manning the organization
structure through proper and effective
selection, appraisal and development
of the personnel to fill the roles
assigned to the employers/workforce. I
am responsible for motivating and
identifying the training and
development needs of the employees.
Introduction

Hello, I am Corey Mapp. I work as a

Project Head in the Operations
department at Toney Inc. I am
responsible for the execution of the
plans of the organization in accordance
with the policies and directives of the
organization. I also take care of the
coordination of the activities within my
department. I am responsible for
classifying the authority as well as for
the co-ordination between authority
and responsibility.
Introduction
Hello, I am Faith Cozier. I work as a
Manager in the Operations department
at Toney Inc. I am responsible for the
controlling function which includes
verifying whether everything occurs in
conformities with the plans adopted,
instructions issued and principles
established. I ensure that there is
effective and efficient utilization of
organizational resources so as to
achieve the planned goals. I am
responsible for measuring the deviation
of actual performance from the
standard performance, discovering the
causes of such deviations and help in
taking corrective actions.
Introduction

Hi, my name is Kyle Davis. I am a

supervisor at one of Toneys’ steel
manufacturing plants. I am responsible
for assigning of jobs and tasks to
various workers at the plant. I guide
and instruct the workers for day to day
activities and am responsible for the
quality as well as quantity of
production. I ensure that discipline is
maintained among the workers at the
plant and communicate workers’
problems, suggestions and
recommendatory actions to my
managers.
 Introduction
So, you can see that all the five people, Gabriel, Modeen, Corey, Faith and
Kyle help manage the functioning of Toneys’ business?

All the five of them perform managerial activities and functions to help in the
smooth running of Toneys’ day-to-day business activities.

Gabriel Modeen Corey Mapp Faith Cozier Kyle Davis

Cummoings Goodridge
However, they are different from each other. How do you think their
responsibilities differ from each other?
Introduction

Yes, each one has a different function to

perform and a different chain of command
that he controls; each one holds a different
amount of authority and enjoys a different
status in his managerial position at Toney INC.

This difference between the three managerial

positions and its functions at Toney INC is due
to the various ‘Functions of Management’.
Introduction

The term ‘Functions of Management’ refers to

a strict separation of the functions and the
kinds of work performed by various positions
in an organization.

The five key functions of management are:

Planning, Staffing, Organizing, Controlling and
Directing.
Introduction

Hence, to understand the management of any

organization, it is very important to
understand the different functions that are
performed by management and how they
contribute to the overall working of the
organization.

Let us learn about ‘Functions of Management’

in detail.
Functions of
Management
Planning

Staffing

Organizing

Directing

Controlling
Functions of Management
The following are the key Functions of Management:

Planning

Staffing
Directing Functions
of
Management

Organizing
Controlling
Management Functions
Planning

1
 Planning
The process of setting goals, and
determining the appropriate
action to achieve the goals of the
company.

2
Reasons for Planning
• To coordinate human resource
• To reduce uncertainty in
operation
• To reduce overlapping and
wasteful activities

3
Planning
• Planning involves setting goals of the
company and establishing a plan or
strategy to achieve these goals.

4
Company Goals
• Every company has its company goals.
• E.g. The basic goal of Walt Disney is to promote the
happiness and well-being of kids and families by inspiring
them to join the company’s activities in creating a brighter
tomorrow. (sources:
http://thewaltdisneycompany.com/citizenship)
• Other examples of company goals include:
• Maintain growth of 10% net profit for each year.
• Provide reliable products to customers.
• Establish favourable image with public
• Manager therefore makes use of a company’s
resources to efficiently and effectively achieve the
company goals. 18
Activity 1 – Class
Discussion
• Can you suggest any company goals of
an online game development company
to achieve?

19
Activity 1 – Solution
• Examples of company’s goals:
• Become the leader of the industry.
• Integrate different elements from novels, comics,
movies and music in order to create outstanding
games.
• Maintain a market share of 20% in the industry.
• Introduce a new product next year.
• Achieve a 10% growth in sales in a year.
• Keep cost of goods no more than 50% of sales.
• Achieve a net profit of $2 million in next year.

20
 How to set goals? Be
SMART!
• SMART Goals are
• Specific – goals are clearly defined and focused.
• Measureable – outcome of the goal can be measured.
• Achievable – goals should be realistic and are able to
accomplish.
• Relevant – goals are relevant to the business operation.
• Time-bound – a specific period of time must be set for
achieving the goal.

The use of SMART goal setting can help managers save time and
resources by making the planning process more efficient and
effective. 5
 SMART Goals
• Specific: To set a specific goal, there are some questions to
ask.
Who is involved? What to accomplish? When to start/end?
Where to start?
• Example: setting the goal as “to achieve $3 million sales for
product A in the next year” is more meaningful than “to get more
business”.
• Measurable: establish concrete criteria for measuring
outcomes.
• The criteria should be quantifiable so that the outcome can be
easily measured.
• Examples: to achieve $1 million net profit in the next year or to
obtain 20% market share in the industry. 6
 SMART Goals
• Achievable: it is important to ensure the goals are realistic
and be attainable with consideration of the abilities and
financial capacity of the company.
• Example: it is not appropriate for a small company to set a goal of
earning billions dollars in one year.
• Relevant: the goals should be set for business operation and
based on current economic climate.
• Example: a business can set a goal of increasing 20% in sales for its
product A in the next year which is relevant to the goal of
obtaining 20% market share in the industry.
• Time-bound: a goal should be bound within a time frame.
• Example: it is not appropriate to set a goal of $30 million sales
without time limit or it will never be achieved as there is no sense
of urgency. 7
Planning as a Function of Management
Vision
Clarifies long term direction of a
company [where the company is
going] & reflects management’s
aspirations for the company.
Objectives
Mission
Statement of the basic purpose
Goals for a company's existence & its
values [role towards customers,
employees, society, etc.].
Strategy Strategy
Course of action created to
achieve a long term goal.
Goals
Mission Long term aims that a company /
individual wants to achieve.
Objectives
Vision Concrete attainments that can be
achieved by following a certain
number of steps.
Planning process

11
Management Functions
Organising

1
 Organising
The process of allocating and arranging the resources
of the company such as employee, facilities and
equipment, finance, to achieve the goals of the
company.

3
Organising Steps

4
Organising Steps

A restaurant wants to improve the service for its

customers. How should the restaurant manager
organise the staff to achieve this goal?

5
Organising Steps

6
Organisational Structure
• Good management should be able to
design an organisational structure to
ensure employees can carry out the
work assigned to them effectively.
• The use of an organisation chart can
also help to visualise the relationships
between levels of the organisational
structure.

7
Implications of an
Organisation Chart
⮚Show the activities of the organisation
by level.
⮚Highlight subdivisions of the
organisation.
⮚Identify different types of work
performed.
⮚Provide information about different
management levels.
⮚Show the lines of authority in the
organisation and the flow of
communications within an organisation.
8
why do you think organising function is
important to a company?

9
The organising function is important because:
• Specialisation is achieved through division
of work. E.g. by separating the works
amongst cooking, serving and janitorial etc.
• It clarifies the authority of each manager.
E.g. the restaurant manager report to the
operation manager of the company.
• It clarifies the duties and responsibilities of
every job position. E.g. who take the orders,
who cleans the tables.
• It facilitates effective administration through
a clear clarification of job positions and
specification. 10
Management Functions
Directing

1
 Directing involves how manager
lead and motivates employees to
perform tasks in order to achieve the
company goals.

3
 Directing as a Function of Management
Components of Directing
Supervision
Supervision
Supervision is directing efforts of
employees and other resources to
accomplish stated work outputs.

Motivation
Motivation is something that moves
the person to action, and continues
him in the course of action already
initiated / about to be initiated.
Leadership
Components of Motivation Leadership is essentially a continuous
Communication
Directing process of influencing behaviour. A
leader breathes life into the group and
motivates it towards goals. The
lukewarm desires for achievement are
transformed into burning passion for
accomplishment
Communication
Leadership Communication is the transfer of
information from one person to another
by transmitting ideas, facts, thoughts,
feelings & values. In its absence,
organisation would cease to exist.
Management Functions
Controlling

1
Controlling
• Controlling is the process of evaluating and
correcting individual performance to ensure that
outcomes conform to the standard set before.

3
Control Process – Step 1
Establishing Standard
• Standard must be reasonable and
achievable.
• Ideal standard which is unachievable
may frustrate employees and cannot
help achieve the standards set.
• Low standard which is too easy to
achieve cannot make improvement for
company’s operation.

4
Control Process – Step 2
Measuring Actual
Performance
• For a given standard, manager must decide how to
measure actual performance.
• Setting control criteria:
⮚ Company ⮚ Employees
• Sales • Satisfaction
• Costs • Turnover
• Output • Absenteeism

• Sources of data:
• Observation
• Statistical reports
5
Control Process – Step 3
Comparing Actual Performance with
Standard
• Compare the actual performance against the
standards based on the control criteria and identify
the deviations, if any.
• Deviations are noted if:
• Actual performance below the standard.
• Actual performance above the standard.

6
 Control Process – Step 4
Taking Corrective Action
• If no deviation or deviation is insignificant, no
action is required.
• Otherwise, take corrective actions such as changing
the existing strategy, employees’ remunerations,
training etc., OR
• Revise the standard if it is not realistic, fair and
achievable.

7
Illustrative Example for the
Control Process
Monthly sales target set by Sales Directors. Sales managers are then
required to achieve the sales target.

At the end of each month, the sales figure of each manager is

recorded so total monthly sales levels can be determined.

Compare monthly sales total to sales target to see if

any deviation.

If monthly sales are significantly below the target, the Sales Director
should reduce the target if it is unrealistic for the managers to achieve
or do more promotion to stimulate the sales.
If, on the other hand, monthly total are significantly high, which may
indicate the target is too easy to achieve, then the Sales Director
should increase the target total. 8
Activity 1 – Group
Discussion
• A restaurant wants to improve the
service provided to its customers. One
of the targets is to reduce the waiting
time for serving the food after the
customer places an order.
• Please design a controlling system to
measure the efficiency of service and
customer satisfaction.

9
Suggested Solution
Step Action
1. Establishing The food will be ready in 20 minutes after
standard customer places an order.
2. Measuring Source of data: actual time taken to serve the
actual food; customer satisfaction survey.
performance Control criteria: time taken; satisfaction.
3. Comparing Identify if there are any discrepancies for the
actual time taken and the result of customer
performance satisfaction survey.
with standard
4. Taking correct See if it is too tough to get the food ready in 20
action minutes if the actual time required is far more
than the standard and revise the standard to
be a more realistic and achievable one.
10
Management Functions
Staffing

1
Class Discussion which category will each activity fall into?

Activity Planning Organising Directing Controlling

Decide whether to open a branch.
Assign job duties
Check register slips to ensure proper
prices are being charged to customer
Consider the use of technology to
save costs
Decide what new menu items to offer
Monitor that shop opens and closes
as scheduled
Set target time to complete
customer’s order
Check whether the budgeted profit is
achieved for the year
Explain the work plan with staff and
the expectations on them

12
 Solution
Activity Planning Organising Directing Controlling
Decide whether to open a branch. ✓
Assign job duties ✓
Check register slips to ensure proper ✓
prices are being charged to customer
Consider the use of technology to save ✓
costs
Decide what new menu items to offer ✓
Monitor that shop opens and closes as ✓
scheduled
Set target time to complete customer’s ✓
order
Check whether the budgeted profit is ✓
achieved for the year
Explain the work plan with staff and ✓
the expectations on them
13