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FUNCTIONS OF MANAGEMENT

POSDCORB
 PLANNING  ORGANIZING  STAFFING  DIRECTING  COORDINATING  REPORTING  BUDGETING

STRENGTHS OF POSDCORB  GOOD STARTING POINT TO ANALYZE THE MANAGEMENT FUNCTIONS IN STRUCTURAL WAY. .  HELP THE STRUCTURE TO ANALYZE THE MANAGEMENT ACTIVITIES.

.  Dr.DRAWBACKS  MARK MOORE (IN 1995):”the most important job for a manager is understanding and shaping the environment”. LEWIS MERIAM:Emphasis on subject matter  DOES NOT EMPHASIS ON MANAGERS ACHIEVE.

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VARIOUS TYPES OF PLANNING  Business Plan  Event Planning  Financial Plan  Marketing Plan  Strategic Planning .

MARKETING PLAN INCLUDES Who are the customers? What are their key characteristics? What are their needs and wants? What do they expect the `product' to do? What are their special requirements and perceptions? What do they think of the organization and its products or services? What are their buying intentions? .

the investors will want to have certain information about the company before they commit to investing. on the other hand. and so on. A bank looking at giving a loan to an organization will want similar information. to guide itself. its market.Difference between Strategic and Business Plan • A strategic plan is a document that is primarily intended to be used internally by the organization. . and they will want to know where the company expects to get revenues in the future. It often contains information about organizational strategy that a company might not want in the hands of its competitors. In some cases. if a company wishes to attract investors. is usually meant to be used to show others. • A business plan. in many cases the strategic plan is never seen by anyone outside the organization. They certainly will want present financial information. For example. in fact.

Business plans may also target changes in perception and branding by the customer. the reasons why they are believed attainable.Business Plan • A business plan is a formal statement of a set of business goals. tax-payer. client.a 3 to 5 year business plan is essential • . When the existing business is to assume a major change or when planning a new venture . and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals. or larger community.

STRATEGIC PLANNING  Strategic planning determines where an organization is going over the next year or more. service or program .  While the focus of a business plan is usually on a particular product.  How it's going to get there  The focus of a strategic plan is usually on the entire organization.

emergency plans. tables. parking. establishing dates and alternate dates. Event planning includes budgeting . fire. arranging decor. and cleanup. event support and security. tents. Event planning also includes some or all of the following. catering. signage. arranging for speakers and alternate speakers. depending on the event: developing a theme or motif for the event. party. portable toilets. coordinating location support (such as electricity and other utilities). health care professionals. ceremony. acquiring permits. or convention. competition. and coordinating transportation and parking. chairs.Event Planning • Event planning is the process of planning a festival. selecting and reserving the event site. . police.

All things being equal. short-term financial planning involves less uncertainty than long-term financial planning because. market trends are more easily predictable in the short term. . short-term financial plans are more easily amendable in case something goes wrong as a result of the short time frame.Financial Planning • The process of determining a person's or firm's financial needs or goals for the future and the means to achieve them. generally speaking. Financial planning involves deciding what investments and activities would be most appropriate under both personal and broader economic circumstances. Likewise.

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 The focus is on division. coordination.ORGANIZING  Organizing is establishing the internal organizational structure of the business. . and control of tasks and the flow of information within the organization.

ORGANIZATIONAL STRUCTURE  Division of labor  Delegation of authority  Departmentation  Span of control .

DELEGATION OF AUTHORITY  Exception principle  Scalar chain of command  Decentralization  Parity principle .

Parity principle • Principle of Parity of Authority and Responsibility.According to this principle. then at the same time he should be given enough independence and power to carry out that task effectively. the manager should keep a balance between authority and responsibility. if a subordinate is given a responsibility to perform a task. This principle also does not provide excessive authority to the subordinate which at times can be misused by him. According to this principle. Both of them should go hand in hand. Therefore. The authority should be given in such a way which matches the task given to him. there should be no degree of disparity between the two. .

The exception principle states that managers should concentrate their efforts on matters that deviate significantly frm the normal and let subordinates handle routine matters. .. The idea here is that managers should concentrate on those matters that require their abilities and not become bogged down with duties that their subordinates should be doing.Exception principle • The exception principle (also known as management by exception) is closely related to parity principle.

from the board of directors of a company at the top of the hierarchy down to shop-floor workers at the bottom.Scalar chain of command • In business. the path down which orders and decisions are communicated. the faster communication is likely to be. There is also less likely to be misinterpretation of communication. A short chain of command also tends to motivate workers because they are able to interact with those in positions of authority and see their decisions being implemented by workers below them. which identifies the superior and subordinate relationships in the organizational structure. The chain of command is usually depicted on an organization chart. . The shorter the chain of command.

wider span of control.Decentralization • Decentralization also called departmentalization is the policy of delegating decision-making authority down to the lower levels in an organization. A decentralized organization shows fewer tiers in the organizational structure. . and a bottom-to-top flow of decision-making and flow of ideas. relatively away from and lower in a central authority.

e. i. . the size and complexity of the business. for the purposes of planning.  According to some rational basis.  The number of departments in an organization depends on the number of different jobs.DEPARTMENTATION  Departmentation is the grouping of jobs under the authority of a single manager. coordination and control..

 The typical guideline is a span of control of no more than 5-6 people.SPAN OF CONTROL  The span of control is the number of people a manager supervises. variety and proximity of jobs. .  A larger span of control is possible depending on the complexity.

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STAFFING
• Staffing manages various positions created by organizing.
– Staffing prepares inventory of manpower and identify the gap between manpower available and manpower required.

• Organizing and staffing are continuous jobs.
– As an organization grows new positions need to be created and filled. Staffing cannot be done once for all,

STAFFING
• The organizing function of management defines each position or category of positions in the organization. Staffing follows with the filling and keeping filled all positions in the organization. • Staffing become more important as the complexity and overall level of performance of a business increases.

STAFFING INCLUDES • Recruitment – Getting application for the job. . Promotion rather implies improvement of both or one of them. • Transfer and promotion – Transfer generally refers to change in position without a change in status or pay. • Selection – Selection of the best candidate among the pool.

STAFFING • Training – The process of providing new employees with information they need to do their jobs satisfactorily • Appraisal – Evaluating an employee’s current or past performance in relation to the performance standards for the position. .

Steps in the Recruitment and Selection (staffing) Process FIGURE 10–2 .

Job Analysis • Job Analysis – The procedure through which managers determine the duties of the job. and the kinds of people (in terms of skills and experience) that should be hired for the job .

Job Description • Developed from information collected in the job analysis • Most contain sections that cover: – Job identification – Job summary – Responsibilities and duties – Authority of incumbent – Standards of performance – Working conditions – Job specification (the human requirements of the job) .

Job Specification • A list of the skills and aptitudes sought in people hired for the job • Identification of these skills and aptitudes are from information collected in the job analysis .

Fast track promotion opportunity for good condidates .Personnel Planning • Personnel Planning – The process of determining the organization’s future personnel needs. as well as the methods to be used to fill those needs – Company records showing present performance and promotability of inside candidates for the most important positions Ex.

Employee Recruiting • Recruiting – Attracting a pool of viable job applicants. .

Sources of Recruits • Current employees • Advertising • The Internet • Employment agencies – Public – Private • University and College recruiting • Recruiting for a diverse workforce • Contingent workers and temporary help agencies • Executive recruiters • Employee referrals • Walk-ins .

Testing for Employee Selection • Types of Tests – Intelligence – Mechanical comprehension – Personality and interests – Ability/achievement (current capabilities/knowledge) – Aptitude (performance potential) • Assessment centres • Video assessment .

Conducting Effective Interviews • Plan the interview • Structure the interview • Establish rapport • Ask questions • Delay your decision • Close the interview .

– The Mentorship Programme .Orienting Employees • Orientation – Providing new employees with basic information about the employer. such as vacation policies. work rules.

Training Employees • Training Program – The process of providing new employees with information they need to do their jobs satisfactorily. • Training Program Steps – Needs analysis – Instructional design – Validation – Implementation – Evaluation and follow-up .

Employee Appraisal • Performance Appraisal – Evaluating an employee’s current or past performance in relation to the performance standards for the position. . • Typical Performance Appraisal Method – A graphic rating scale that lists several job characteristics (like quality of work) and provides a rating scale (from outstanding to unsatisfactory). along with short definitions of each rating.

• Forced Distribution Method – Placing predetermined percentages of ratees into performance categories. . which are compiled into individualized reports for the ratee. and using them to support appraisal and development needs. supervisors. • 360-degree Feedback – Peers. subordinates.and customers complete appraisal surveys.Employee Appraisal Methods • Critical Incidents Method – Compiling brief examples of good/bad performance.

• Staffing means “right person to the right job”.STAFFING • Staffing function is created by some experts by splitting the social aspects of the organizing. .

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Directing  The continuous task of making decisions and embodying them in specific and general orders and instructions and serving as the leader of the enterprise. 2012 47 .  Directing includes: Communicating Leading Motivating February 21.

2012 48 .occurs between people Organizational Communication .COMMUNICATING  What is Communication? The transfer and understanding of meaning If no information has been conveyed.all the patterns. and systems of communication in an organization February 21. networks. communication has not occurred everything that a manager does involves communicating Effective communication does not equal agreement Ineffective communication is the basis for many managerial problems  Types of CommunicationInterpersonal Communication .

Communication  Communication Symbols    Oral communication Written communication Non verbal and pictorial communication Formal channel Informal channel  Communication Channels   February 21. 2012 49 .

2012 50 .LEADING February 21.

2012 51 .  LEADERSHIP is a dynamic relationship based on mutual influence and common purpose between leaders and collaborators in which both are moved to higher levels of motivation and moral development as they affect real. intended change. (Kevin Freiberg and Jackie Freiberg February 21.Definitions  Leader  someone who can influence others and who has managerial authority  all managers should ideally be leaders  not all leaders have the ability to be an effective manager  Leadership  A traditional definition of leadership: Leadership is an interpersonal influence directed toward the achievement of a goal or goals.

not because they have to.Leadership versus Management  A Leader can be a manager.  Employees willingly follow leaders because they want to. but a manager is not necessarily a leader. February 21. 2012 52 .

Fiedler's Contingency Model February 21.LEADING  Trait Theories  Behavioral Theories -.Theory X and Theory Y  Contingency Theories -. 2012 53 .

2012 54 .LEADING  Trait Theories of Leading leader traits . and situational factors February 21. their groups.characteristics that might be used to differentiate leaders from nonleaders might be used as a basis for selecting the “right” people to assume formal leadership positions proved to be impossible to identify a set of traits that would always differentiate leaders from nonleaders explanations based solely on traits ignored the interactions of leaders.

and have positive attitudes. 2012 55 . are cooperative.  Theory X managers believe that employees are motivated mainly by money.LEADING  Behavioral Theories of Leading  knowing what effective leaders do would provide the basis for training leaders  Theory X and Theory Y  Douglas McGregor described Theory X and Theory Y as . are lazy.  Theory Y managers believe that subordinates work hard. uncooperative. The Human Side of Enterprise . and have poor work habits. February 21.

Theory Z focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the wellbeing of the employee. and high employee morale and satisfaction. high productivity. consensual in nature • .Theory Z • For Ouchi. According to Ouchi. It is participative. Theory Z management tends to promote stable employment. both on and off the job.

least preferred coworker described in relatively favorable terms  leader is relationship oriented  low LPC . 2012 57 .LEADING  Contingency Theories of Leading  leader effectiveness depends on the situation  must isolate situational conditions or contingencies  Fiedler Model  effective group performance depends on matching the leader’s style and the degree to which the situation permits the leader to control and influence  Least-Preferred Coworker (LPC) .measures the leader’s style of interacting with subordinates  high LPC .least preferred coworker described in relatively unfavorable terms  leader is task oriented February 21.

2005 58 February 21. Lippitt. 2012 . & White in 1939 The democratic leader by Lewin. 1939 The people-oriented leader by Fiedler. 1939 The laissez-faire ("let do") leader by Lewin.Types of leadership styles in 1905  The bureaucratic leader by Weber           The charismatic leader by Weber in 1905 The autocratic leader by Lewin. 1978 The environment leader by Carmazzi. 1978 The transformation leader by Burns. & White. 1967 The servant leader by Greenleaf. Lippitt. & White. Lippitt. 1967 The task-oriented leader by Fiedler. 1977 The transaction leader by Burns.

organizational goals  needs . Motivation theories are important to supervisors attempting to be effective leaders.motivation is a need-satisfying process  Theories of Motivation  Many methods of employee motivation have been developed. conditioned by the effort’s ability to satisfy some individual need  effort .MOTIVATING  What is Motivation?  the willingness to exert high levels of effort to reach organizational goals. Two primary approaches to motivation are content and process.effort should be directed toward. and consistent with. The study of work motivation has focused on the motivator (supervisor) as well as the motivatee (employee). 2012 59 . February 21.a measure of intensity or drive  goals .

Maslow's Hierarchy of Needs February 21. 2012 60 .

implementation and maintenance of prudent control systems  Direction .giving is about showing the way ahead and leading Both are necessary for healthy organizations but they require very different attitudes. 2012 61 .Differentiating between Directing and Managing The Key to Direction Giving is to Distinguish between ‘Managing’ and ‘Direction-giving’  Managing is about dealing. with the design. knowledge and skills especially in approaches to thinking February 21. hands-on.

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staffing and directing.CONTROLLING Control is one of the managerial functions like planning. 2012 64 . organizing. It is an important function because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in desired manner February 21.

Controls aid in decision making.Organizational Control Objectives Controls make organizations effective. 2012 65 . Controls provide feedback on project status. February 21.

 Compare performance with the standards. 2012 66 .  Take corrective actions. February 21.The Organizational Control Process  Establish standards to measure performance  Measure actual performance.

Types of Organizational Controls  Feedforward controls  Concurrent controls  Feedback controls February 21. 2012 67 .

 Economic feasibility  Accuracy.  Integration into established process.Effective Organizational Control Systems  A focus on critical points  Acceptance by employees. February 21.  Availability of information when needed.  Comprehensibility. 2012 68 .

Organizational Control Techniques • Financial controls        Financial statements Income statement Financial audits Liquidity ratio.  Bottom-up budgeting. February 21. 2012 69 . Profitability ratios Debt ratios Activity ratio • Budget controls • Some budget development methods are as follows:  Top-down budgeting.

2012 70 .Marketing controls  Market research  Test marketing  Marketing statistics February 21.

Human resource controls • Human resource controls help managers regulate the quality of newly hired personnel. February 21. 2012 71 . as well as monitor current employees' developments and daily performances.

2012 . Management process can be seen as a circular. Management functions have Iterative quality. continuous movement.Conclusion     Management functions are Universal. No functions is more important but the mix of the functions varies from task to task and from level to level of management. 72 February 21.

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