Week 1: Session 4

Today's Topic
• Functions of Management
• Business Functions
• The main functional areas within
business organizations
• The administration function
• Administration functions
• The customer service function
• The distribution function
Activity:
The Best/Worst Boss
The whole class to brainstorm the characteristics of the “Best Boss”. It
can be characteristics of a boss they worked with in the past or
characteristics of a boss they wish to work with.

What would be the characteristics to describe the “Best Boss”?

Encourage everyone in the group to participate and write down their

ideas on the “Best/Worst Boss” Chart on the board under the
characteristics column.
Functions of
Management
Management has been described as a social process involving:
•Responsibility for economical and effective planning & regulation of operation of an
enterprise in the fulfillment of given purposes.
•Various elements and activities. These activities are different from operative functions
like marketing, finance, purchase etc.
•Creation of a collaborative environment where all the functionaries from different
operational areas come together to work towards a common goal.
Planning
Planning is one of the primary functions of management. It
involves:
• Chalking out a future course of action.
• Determining the most appropriate course of actions for
achievement of pre-determined goals.
• Planning for contingencies that may harm the organization.
 Organizing
It is the process of bringing together physical, financial
and human resources and developing productive
relationship amongst them for achievement of
organizational goals.
To organize a business involves determining & providing
human and non-human resources to the organizational
structure. Organizing as a process involves:
⦁ Identification of activities.
⦁ Classification of grouping of activities.
⦁ Assignment of duties.
⦁ Delegation of authority and creation of responsibility.
⦁ Coordinating authority and responsibility relationships
Staffing
Managerial function of staffing involves manning the
organization structure through:
• Proper and effective selection, appraisal and
development of personnel to fill the roles
designed in the structure.
Staffing involves:
• Manpower Planning (estimating required
manpower and choosing the right person for the
right job).
• Recruitment, Selection & Placement.
• Training & Development.
• Remuneration.
• Performance Appraisal.
• Promotions & Transfer.
Directing
Directing is the part of the managerial function which
communicates direction, provides motivation and leadership
as well as overseeing the organization’s overall functioning.
Direction has the following elements:

Supervision- Overseeing the work of subordinates by their

superiors. It is the act of watching & directing work &
workers.
Motivation- Inspiring, stimulating or encouraging the sub-
ordinates with zeal to work. Positive, negative, monetary,
non-monetary incentives may be used for this purpose.
Leadership- Rallying morale of the employees during difficult
times and also guiding them towards achieving their goal.
Communications- Passing information, experiences, opinions
from one person to another. It is a bridge of understanding.
 Controlling
It implies measurement of accomplishment against the standards and correction of
deviation if any to ensure achievement of organizational goals.
The purpose of controlling is to ensure that everything occurs in conformity with
standards.
An efficient system of control helps to predict deviations before they actually occur.

The controlling aspect of management comprises of the following steps:

• Establishment of standard performance.
• Measurement of actual performance.
• Comparison of actual performance with the standards and finding out deviation if any.
• Corrective action.
 Business Functions
A business function refers to the various activities performed
by a company. These activities are divided into several
functions or departments. In the most basic classification,
they can be divided into core functions and support functions.
• Core functions refer to income-generating activities, for
example, the production of final goods or services.
• These functions are usually the main activities of the
company. However, they may also include other activities if
the company considers them part of its core function.
• Support functions refer to activities within the organization
to facilitate core functions.
• They do not produce output to sell or generate revenue,
but rather they provide support services to core functions.
 The Main Functional Areas Within a Business
Organizations
The main purpose of functional areas is to ensure that:
All important business activities are carried out efficiently.
This is essential if the business is to achieve its aims and
objectives.
In addition, specific areas will be responsible for supporting
specific types of aims and objectives, for example:
• Sales and marketing will be involved in achieving targets
linked to developing new markets or increasing sales .
• Human resources will be involved in arranging staff training
activities and supporting the continuous professional
development of all staff.
• Finance will be expected to monitor and support aims and
objectives linked to keeping costs low to improve
profitability, budgetary and funding concerns.
• Production will be set targets relating to quality or meeting
planned production schedules.
Administration Functions
• Collecting, distributing and dispatching the mail
• Storing and retrieving paper and electronic records
• Organizing meetings and preparing meetings documents
• Responding promptly to enquiries
• Preparing documents using word processing, spreadsheet
and presentation packages, such as PowerPoint
• Researching information
• Sending and receiving messages by telephone, fax and email
• Making arrangements for visitors.
• Making travel arrangements
• Purchasing supplies of office stationery and equipment
• Making arrangements for events, such as interviews or sales
conferences.
Customer Service Functions
• Answering customer enquiries about products and
services
• Providing specialist information and advice to meet
customer needs
• Solving customer problems
• Providing after-sales service, including
replacing damaged goods,
• Arranging for repairs or for spare parts to be
obtained and fitted
• Dealing with customer complaints according to
company procedures
• Analyzing records of customer complaints to resolve
problem areas
• Using customer feedback to improve customer
service and satisfaction
Distribution Functions
• Ensuring all goods are appropriately stored before
dispatch
• Ensuring goods for dispatch are securely packed and
correctly labelled
• Checking vehicle loads are safe and secure
• Ensuring goods are dispatched at the right time
• Checking that all deliveries match orders precisely
and notifying sales if there is a discrepancy
completing the delivery documents planning and
scheduling vehicle routes
• Notifying sales staff of delivery schedules so that
customers can be informed
• Dealing with distribution problems, eg through bad
weather or vehicle breakdown.
Activity:
Manager or Leader?
This classic activity clearly shows the difference between being a
manager and being a leader.

Management and leadership are often interchanged within the

business world; however, they are two very distinct skills.

Management is essentially process/task focused and centers on the

current and immediate future. Whereas, Leadership is much more
people and future focused. It includes setting culture & Direction for
the organization.
Activity:
Manager or Leader?
• Split the participants into small groups, give each group a copy of
the Manager Vs Leader table.

• Each group is tasked to identify which of the statements on the

Manager Vs leader table describe management behavior and
which describe leadership behavior, write one statement on each
post it note and stick it either on the Manager flipchart sheet or
the Leader flip chart sheet on the wall.

• The list is available in next slide.

 Manager or Leader Chart
Scheduling work Ensuring predictability Look ‘over the horizon’
Sharing a vision Coordinate effort Appeal to peoples’ emotions
Plan and prioritise steps to task Coordinate resources Follow systems and procedures
achievement

Use analytical data to support Give orders and instructions Provide development opportunities
recommendations

Explain goals, plan and roles Act as interface between team and Ensure effective induction
outside

Provide feedback on performance Take risks Monitor budgets, tasks etc

Motivating staff Guide progress Use analytical data to forecast trends

Provide focus Evaluate progress Monitoring progress

Create a ‘culture’ Check task completion Unleashing potential
Inspiring people Create a positive team feeling Be a good role model
Delegating tasks Monitor feelings and morale Appeal to rational thinking
Build teams
Answers
Manager Leader
• Build teams
• Scheduling work
• Provide feedback on performance
• Delegating tasks
• Motivating staff
• Use analytical data to support recommendations
• Act as interface between team and outside
• Ensuring predictability
• Explain goals, plan and roles
• Co-ordinate effort
• Inspiring people
• Co-ordinate resources
• Appeal to peoples’ emotions
• Give orders and instructions
• Sharing a vision
• Guide progress
• Provide focus
• Evaluate progress
• Monitor feelings and morale
• Check task completion
• Create a ‘culture’
• Follow systems and procedures
• Create a positive team feeling• Ensure effective induction
• Monitor budgets, tasks etc
• Provide development opportunities
• Use analytical data to forecast trends
• Unleashing potential
• Monitoring progress
• Look ‘over the horizon’
• Appeal to rational thinking
• Take risks
• Plan and prioritise steps to task achievement
• Be a good role model
ANY
QUESTIONS???