Management

Functions
Managerial Functions
 Henry Fayol noted managers at all
levels, operating in a for profit or not for
profit organization, must perform each
of the functions of:
Planning
organizing
Staffing
Directing
controlling
 Planning

Controlling Organizing

Directing Staffing
 1­8

Functions of Management
Planning
Choose goals

Controlling Organizing
Measuring and 
Co­ordination & control
Monitoring

Directing Staffing
Influencing people 
Recruitment, Training
behavior
 Planning
 Planning is the process used by managers to
identify and select appropriate goals and courses
of action for an organization.
 3 steps to good planning :
 1. Which goals should be pursued?
 2. How should the goal be attained?
 3. How should resources be allocated?
 The planning function determines how
effective and efficient the
organization is, and determines the
strategy of the organization.
Planning: Planning is the process which
includes determination of future course
of action.
üPlanning is concerned with the future
impact of today’s decisions.
üPlanning includes determination of
objectives
üDetermination of projects and programmes
üSetting policies and strategies
üSetting rules and procedures
üPreparing Budgets.
Organizing:
Organizing is the process of
üDividing work into convenient duties
üGrouping of such duties in the form of
positions
üGrouping of various positions into
departments and sections
üAssigning duties to individual positions
üDelegating authority to each position so
that the work is carried out as planned.
 Organizing
 Inorganizing, managers create the structure of
working relationships between organizational
members that allows them to work together
and achieve goals.
 Managers will group people into departments
according to the tasks performed.
 Managers will also lay out lines of authority and
responsibility for members.
 An organizational structure is the outcome of
organizing. This structure coordinates and
motivates employees so that they work
together to achieve goals.
 Leading
 In leading, managers determine direction,
state a clear vision for employees to follow,
and help employees understand the role
they play in attaining goals.
 Leadership involves a manager using power,
influence, vision, persuasion, and
communication skills.
 The outcome of the leading function is a high
level of motivation and commitment from
employees to the organization.
Staffing: Staffing involves manning the
various positions created by the
organizing process.
üPreparing inventory of personnel
available
üIdentifying the sources from where
people will be selected
üSelecting people
üTraining and Developing them
üFixing financial compensation
üAppraising them periodically, etc.
Directing: Directing includes
communicating, motivating and
leading.
üContinuous responsibility of
guiding and leading them for
better performance and
motivating them to work with zeal
and enthusiasm.
 1­12

Controlling
 In controlling, managers evaluate how well the
organization is achieving its goals and takes
corrective action to improve performance.


 Managers will monitor individuals, departments, and the

organization to determine if desired performance has
been reached.


 Managers will also take action to increase performance

as required.


 The outcome of the controlling function is the accurate

measurement of performance and regulation of
efficiency and effectiveness.
Controlling: Controlling involves
üIdentification of actual results
üComparison of actual results
with expected results as set by
planning process
üIdentification of deviation
between the two, if any
üTaking of corrective action so
that actual results with expected
results.
Controlling:



Establish Standards & Targets

Create Measuring & Monitoring System

Compare Actual Performance

Initiate Corrective action

 American Practices Japanese Practices

Planning Planning
rily short-term orientation
1.Primarily long-term orientation.
dual decision making 2.Collective decision making.
ons flow from top to bottom.
3.Decisions flow upward and back.
ecision making but slow implementation.
4.Slow decision making but fast implementatio
tional decisions as tactical.
5.Operational decisions as strategic.
 American Practices Japanese Practices

Organizing Organizing
al Responsibility
1.Collective responsibility
is on formal structure.
2.Emphasis on informal structure.
n organization3.Common
culture lacking.
organisation culture and philosophy.
ational change4.Organizational
by external change
change
agents.
by consensus and internal ch
 American Practices Japanese Practices

Staffing Staffing
t-term employment. 1.Life-long employment.
d upward movement. 2.Slow upward movement.
mented concern for employees. 3.Holistic concern for employees.
essionalism 4.Loyalty to the organization.
cialized career. 5.General career.
6.Reward based on group performance.
ards based on individual performance.
7.Small difference in pay increase.
stantial differences in pay increase.
 American Practices Japanese Practices

Directing Directing
rective style 1.Paternalistic style.
dividual motivation. 2.Group motivation.
3.Confluence
eparation of working and private life. of working and private life.
eader as decision-maker. 4.Leader as group facilitator.
op-down communication. 5.Bottom-up communication.
6.Emphasis on face-to-face communication
mphasis on written communication.
 American Practices Japanese Practices

Controlling Controlling
Control by superior. 1.Control by peer.
2.Control of group performance.
Control of individual performance.
Limited use of quality control3.Extensive
circle use of quality control circle.