Functions Of Management PDF

FUNCTIONS OF MANAGEMENT BY ABIODUN-OJO O.E Introduction Management has been described as a social process involving responsibility for economical and regulation of operation of an organization to achieve an objective or a set goal. It is a dynamic process consisting of various elements and...

FUNCTIONS OF MANAGEMENT BY ABIODUN-OJO O.E Introduction Management has been described as a social process involving responsibility for economical and regulation of operation of an organization to achieve an objective or a set goal. It is a dynamic process consisting of various elements and activities. Some theorists According to George & Jerry, “There are four fundamental functions of management i.e. planning, organizing, actuating and controlling”. According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, & to control”. Luther Gullick gave a keyword ’POSDCORB’ where P stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for Budgeting.  The most widely accepted are functions of management given by KOONTZ and O’DONNEL i.e. Planning, Organizing, Staffing, Directing and Controll ing. For theoretical purposes, it may be convenient to separate the function of management but practically these functions are overlapping in nature i.e. they are highly inseparable. Each function blends into the other & each affects the performance of others.  Functions of management are differentiated into two parts managerial function (i.e., planning, organising, staffing, directing, and controlling ) and operative function (i.e., production, marketing, purchasing, financing, and personnel). For example, planning is common in all organisations. Whereas operative functions are not common, and they differ from one organisation to another. For example, production is not performed in a retail store. Planning It is the basic function of management and deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals. According to KOONTZ, “Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be”. A plan is a future course of actions. It is an exercise in problem solving & decision making. Planning contd... Planning is a systematic thinking about ways & means for accomplishment of pre-determined goal. It ensures proper utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.  It is concerned with the certain determination of a future course of action to achieve the desired result. Planning bridges the gap between the initial point to the destination to reach. Selection of objectives, policies, and procedures are involved in planning. The essential elements of planning are decision- making and problem-solving. Planning cannot avoid or stop problems, but it can anticipate them and prepare emergency plans to deal Organizing The process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry Fayol, “To organize a business is to provide it with everything useful for its functioning i.e. raw material, tools, capital and personnel’s”.  Organising is the management function of allotting duties, grouping various activities, establishing authority, and allocating resources necessary to attain the specific plan. Once the plans are formulated, the organising function reviews the activities and resources needed to be applied. Organisation decides who will perform a particular task, and where and when it will be done. There is an organisational hierarchy so that reporting is smooth within the organisation. Organizing contd... To organize involves determining & providing human and non-human resources to the organizational structure. Organizing involves: Identification of activities. Classification of grouping of activities. Assignment of duties. Delegation of authority and creation of responsibility. Staffing It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance due to advancement of technology, increase in size of business, complexity of human behavior etc. The main purpose of staffing is to put right man/woman on right job i.e. square pegs in square holes and round pegs in round holes.  According to Koontz & O’Donell, “Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal & development of personnel to fill the designed roles”.  Staffing refers to the process of hiring and developing the required personnel to fill in various positions in the organisation. It is that part of the management process, which is concerned with recruitment, selection, placement, allocation, conservation, and development of human resources. It is a very important aspect of management as it ensures that the organisation has the right number and right kind of people, with the right qualification at the right places, at the right times and that they are performing the right thing. It is also known as the human resource function. Staffing contd... Staffing involves: Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place). Recruitment, Selection & Placement. Training & Development. Remuneration. Performance Appraisal. Promotions & Transfer. Directing Directing is that component of the management process which ensures that the members of an organisation work efficiently and effectively for achieving the desired objective. It involves leading, influencing, instructing, guiding, and inspiring employees to perform and achieve the predetermined objectives. The two important components of directing are motivation and leadership.  Communicating effectively and clearly with supervising employees at work is also a part of directing. It involves issuing orders and instructions to subordinates, overseeing people at work, and creating a work environment wherein the employees may perform to the best of their abilities. To bring out the best from the employees, a manager needs to direct them through praise and humbly criticize them. Directing contd.. It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion and action of people, because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inter-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. Elements of Direction Supervision- overseeing the work of subordinates by the superiors. It is the act of watching & directing work & workers. Motivation- means inspiring, stimulating or encouraging the sub-ordinates to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose. Leadership- a process by which manager guides and influences the work of subordinates in desired direction.  Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding. Controlling When the plans are put into operation from directing, it becomes essential to judge regularly whether the actual results are consistent with the planned results. It monitors the organisational performance towards the fulfilment of organisational goals. It enables the manager to detect errors and defects in the course of work and to take corrective actions whenever needed.  It also provides proper direction to work in conformity with the plan of action or pre-determined standards. Controlling serves the purpose of finding out deficiencies in performance and rectifying them so that the organisation can prevent their recurrence. Controlling contd... 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 conformities with the standards. An efficient system of control helps to predict deviations before they actually occur.  According to Theo Haimann, “Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation”. According to Koontz & O’Donell “Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the organisational set objectives and desired plans are accomplished”. Steps in controlling Establishment of standard performance. Measurement of actual performance. Comparison of actual performance with the standards and finding out deviation if any. Corrective action. summary Planning: Setting objectives and determining the best course of action to achieve them. Organizing: Arranging resources and tasks to implement the plan. Staffing: Recruiting, selecting, and training individuals for specific roles within the organization. Directing: Leading and motivating employees to work towards the organization’s goals. Controlling: Monitoring performance and making adjustments to ensure objectives are achieved. THANK YOU