Notes - Management Functions
Category :
Under management process, many activities interrelated to each other are included, which are planning, organising, staffing, directing and controlling. These activities are know as functions of management.
10.1 Planning
It is deciding in advance the objectives to be achieved during a given period, formulating alternative courses of action to achieve them and selecting the best course of action.
10.1.1 Features of Planning
(i) The Primary Function: Planning lays down the base for all other managerial functions.
(ii) Goal Oriented: It starts with determination of objectives and formulating plans for achievement of desired goals.
(iii) All Pervasive: It is performed in all organisations and at all levels.
(iv) Futuristic: It is essentially looking ahead and the purpose of planning is to meet future events efficiently.
(v) A Continuous Process: It follows a cyclic pattern. When a plan is drawn and implemented, it is followed by another plan.
(vi) Involves Decision-making and Choice: Planning is essentially making a choice from among various alternatives.
(vii) An Intellectual Process: Planning is .a mental exercise. It involves use of creativity, imagination and higher thinking skills with an element of sound judgement.
10.1.2 Process of Planning
Planning involves the following logical steps
Step 1 Setting objectives Step 2 Developing premises
Step 3 Identifying alternative courses of action Step 4 Evaluating alternative courses
Step 5 Selecting an alternative Step 6 Formulating derivative plans
Step 7 Securing co-operation Step 8 Follow-up action
Essential Requirements of an Effective Plan
For a plan to be successful, it should have following characteristics
(i) Specific (ii) Flexible (iii) Complete and integrated (iv) Logical
10.1.3 Types of Plans
These plans are formulated by companies to deal with situations that can occur again and again. The various types of standing plans are explained below
(i) Objectives: It can be said to be the desired future position that the management would like to reach.
(ii) Strategy: A strategy is a comprehensive plan for accomplishing an organisations objectives.
(iii) Policy: These are general statements that guide thinking or channelise energies towards a particular direction.
(iv) Procedure: It describes the exact manner, in which a certain activity is to be performed.
(v) Method: It provides the prescribed ways or manner, in which a task has to be performed, considering the objectives.
(vi) Rule: These are specific statements that inform what is to be done and what is not to be done.
It is one time plan specifically designed to achieve a particular goal. The different types of single use plans are explained below
(i) Programme: These are concrete action plans indicating how, when and by whom work is to be done.
(ii) Budget: It is a projection designed to define the anticipated costs and results in numerical terms of single project.
10.2 Organising
It is the process of Identifying and grouping different activities in the organisation and bringing together the physical, financial and human resources to establish most productive relations for the achievement of specific goals of an organisation.
10.2.1 Process of Organising
The various steps involved in the process of organising are
Step 1 Identification and division of work
Step 2 Departmentation
Step 3 Assignment of duties
Step 4 Establishing reporting relationships
10.2.2 Formal and Informal Organisation
The structure of an organisation is both formal and informal.
Formal Organisation: It is an organisation structure, which is designed and established by management to achieve organisational goals. It is an official system of clearly defined activities and relationships, which are intended to divide and integrate the activities of the organisation.
Informal Organisation: It is an organisational structure, which is a result of social relationships and interaction among people. The type of structure is unplanned and arises spontaneously within the formal organisation.
10.2.3 Forms/Types of Organisational Structures
(i) Line Organisation (Scalar or vertical or military): This type of organisation first originated in military and historically, it is known as military organisation. A line organisation has only direct vertical relationships between different levels in the firm. The authority flows from top to bottom throughout the organisation. The quantum of authority is highest at the top and reduces at each successive level.
(ii) Staff or Functional Organisation: It is one, where the work is divided into various activities or functions. Each function is entrusted to a specialist and the authority possessed by him is functional authority. This concept was developed by FW Taylor. The highlight of a functional organisation is the exercise of functional authority by a functional manager or specialist, not only over his own subordinates, but also over all the subordinates in all other departments, in so far as, the particular function pertaining to his specialisation, is performed by them.
(iii) Line and Staff Organisational Structure: Most of the large organisations belong to this type of organisational structure. These organisations have direct, vertical relationships between different levels and specialists responsible for advising and assisting line managers. Such organisations have both line and staff departments. Staff departments provide line people with advice and assistance in specialised areas (e.g., quality control advising by production departments).
10.2.4 Delegation of Authority
It means the assignment of work to others and granting them the requisite authority to accomplish the job assigned. According to Theo Haimman, ‘Delegation of authority merely means the granting of authority to subordinates to operate within prescribed limits’.
10.2.5 Elements of Delegation
The process of delegation involves three elements
(i) Authority
(ii) Responsibility
(iii) Accountability
10.2.6 Centralisation and Decentralisation
The issues of centralisation and decentralisation involve the principle of delegation of authority.
Centralised Organisation
When a limited amount of authority is delegated in an organisation, it is centralised organisation.
Decentralised Organisation
When a significant amount of authority is delegated to lower levels in the organisation, the business is characterised as decentralised.
10.3 Staffing
It may be defined as the process of hiring and developing the required personnel to fill in various vacant positions in the organisation. It implies, placing right person at the right place.
10.3.1 Features of Staffing
(i) Deals with Human Resource: This function is people-oriented and aims at efficient utilisation of them.
(ii) Pervasive Function: It is performed in all types of organisations whether big or small, profit or non-profit and in all parts of the world.
(iii) Continuous Function: The process of hiring, training and compensating is a never-ending process.
(iv) Extends beyond Personnel Department: It is both a line and a staff function. When every manager performs it, it is a line function, but when the personnel department is performing it by giving specialised services, then it is a staff function.
(v) Multidisciplinary: The subject matter has been developed with a combination of many disciplines like psychology, sociology and anthropology.
10.4 Directing
It means giving instructions and guiding people in doing work.
10.4.1 Features of Directing
(i) Initiates Action: It translates plans into action. Thus, directing is known as ‘management in action’.
(ii) Pervasive Function: It takes place at every level of management. It is performed in the context of superior-subordinate relationship.
(iii) Continuous Process: Manager needs to give orders to his subordinates, motivate lead and guide them on a continuous basis.
(iv) Flows from Top to Bottom: It is the function of a superior, i.e., supervisor/manager can motivate, guide, supervise and issue instructions to his subordinates but not vice-versa.
(v) Deals with People: It is concerned with the direction of human efforts towards organisational objectives.
10.4.2 Elements of Directing
The directing function of management consists of the following four elements
10.5 Controlling
Control is a continuous process of measuring actual performance against standards, measurement of deviations and taking corrective action, if there are any deviations in the actual performance.
10.5.1 Characteristics of Controlling
(i) Pervasive Function: All managers at different hierarchy, perform the controlling function.
(ii) Planning is the Basis of Controlling: Standards for performance are set down in plans.
(iii) Forward as well as Backward Looking: When past events are appraised to find deviations from the standards, then controlling is backward looking. Controlling is linked with future as past cannot be controlled. Corrective actions, which are taken, initiated by controlling function, aim to improve future performance. Thus, it is a forward looking function.
(iv) Action Oriented: Action is the soul of controlling function. After analysing deviations, suitable remedial actions are taken.
(v) Continuous Function: It is taken on a regular and continuous basis.
10.5.2 Controlling Process
Steps involved in controlling process are
Step 1 Establishing standards
Step 2 Measurement of actual performance
Step 3 Comparison of actual performance with standards
Step 4 Taking corrective measures
10.5.3 Management by Objective
The process of setting objectives in the organisation to give a sense of direction to the employees is called as Management by Objectives. It refers to the process of setting goals for the employees so that they know what they are supposed to do at the workplace. It defines roles and responsibilities for the employees and help them chalk out their future course of action in the organisation. It guides the employees to deliver their level best and achieve the targets within the stipulated time frame.
10.6 Coordination: The Essence of Management
According to Mooney and Railey ‘Coordination is the orderly arrangement of group efforts to provide unity of action in the pursuit of a common purpose’. Coordination is not referred to as a separate function but is the essence of management, as it is a continuous process of achieving unity of purpose in the organisation. It leads to blending the activities of different individuals and groups for the achievement of certain objectives.
10.6.1 Features of Coordination
The salient features of coordination are
(i) It is an essential managerial activity. It is needed at all levels of management.
(ii) It involves an orderly arrangement of group efforts.
(iii) It is a continuous process carried on by the managers.
(iv) It is a deliberate action to secure unity of action towards attainment of objectives.
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