Management Functions PDF

# Management Functions ## Concept Map ### What is management? - Four management functions - Planning - Organizing - Leading - Controlling - Importance of planning - The planning process - SMART goals - Importance of management - Principles of effective management - Div...

# Management Functions ## Concept Map ### What is management? - Four management functions - Planning - Organizing - Leading - Controlling - Importance of planning - The planning process - SMART goals - Importance of management - Principles of effective management - Division of work - Unity of command - Unity of direction - Balancing authority and responsibility - Management by objectives ## Glossary 1. **Management:** The process of accomplishing organisational goals through planning, organising, leading and controlling. 2. **Planning:** The process of establishing goals and objectives for an organisation and determining the best ways to achieve them. 3. **Goals:** The desired outcomes for an organisation. 4. **Organising:** The process of determining what tasks are to be done and how the tasks are to be grouped. 5. **Organisational structure:** This specifies the responsibilities for each job position at a company and the relationship between these positions. 6. **Line authority:** The authority given to a job position at a higher level (superior) to give instructions to those directly below him (subordinates). 7. **Staff authority:** The authority given to a job position that is created to support, assist and give advice to other departments. 8. **Leading:** The process of guiding directing and motivating people to work towards achieving organisational goals. 9. **Autocratic leadership:** Managers do not involve subordinates in decision-making. They keep all the power to themselves and make all decisions. 10. **Participative leadership:** Managers share their power with their subordinates and involve them in decision-making. 11. **Laissez-faire leadership:** Managers delegate their authority to subordinates and allow them to make their own decisions. 12. **Controlling:** The process of monitoring activities to ensure that they are being done as planned. 13. **Division of work:** The production process is broken down into many different tasks with each worker concentrating on one or a few tasks. 14. **Unity of command:** Each employee takes orders from and reports to one superior only. In other words, each subordinate has only one direct superior. 15. **Unity of direction:** Each plan is led by only one manager and that there should be only one plan for a group of activities with the same objective(s). 16. **Authority:** The formal and legitimate power given by an organisation to a person in a certain position to complete his assigned tasks. 17. **Responsibility:** The obligation of a person to perform his assigned tasks. 18. **Delegation:** The assignment of work and the transfer of formal authority and responsibility to complete that work from a superior to a subordinate. 19. **Management by objectives:** The overall objectives of an organisation are translated into objectives for each succeeding level, such as divisions, departments and individual employees. ## Summary 1. Management involves four major functions: planning, organising, leading and controlling. 2. **Planning** is important as it - helps managers seek opportunities and deal with challenges. - provides direction to employees. - provides standards for monitoring work progress. 3. The **planning process** involves the following steps: - Establish objectives and goals - Gather useful and relevant information - Evaluate alternative plans and choose the best option - Formulate the plan - Implement the plan 4. The five characteristics of **SMART goals** are: - **Specific:** State clearly and explicitly what is to be achieved - **Measurable:** Quantifiable or expressed in numbers - **Attainable:** Not too easy or too difficult - **Relevant:** Focus on key results which can affect company performance - **Time-based:** Have a time frame for achieving the goals 5. In **organising**, the management designs an organisational structure which helps the company achieve its goals by coordinating the work that different people do. 6. In general, a company's management can be classified into three levels: - **Top management:** determine the company's overall goals and direction - **Middle management:** act as a bridge between top management and front-line management - **Front-line management:** responsible for the daily operation of the business 7. A tall structure has more levels while a flat structure has fewer levels. 8. Managers with line authority can direct and monitor their subordinates. Managers with staff authority can support, assist and give advice to other departments. 9. **An effective control system** ensures that all company activities are aimed at achieving organisational goals. 10. The **control process** consists of the following steps: - Set performance standards - Measure actual performance - Compare actual performance with standards - Analyse deviations and take corrective actions 11. **Corrective action** is an integral part of the control process as it can bring unacceptable performance back to a desirable level. 12. **Management** is important to a company because it can - help achieve organisational goals effectively. - ensure efficient use of resources. 13. Managers can employ five **management principles** to manage their companies effectively. - **Division of work:** Each worker specialises in doing one or a few tasks rather than completing the entire production process. - **Unity of command:** It clearly defines the chain of command in a company. - **Unity of direction:** This ensures that employees working on the same plan or project have the same goal(s). - **Authority and responsibility:** Authority and responsibility go hand-in-hand and should be in balance. If a position has greater responsibilities and involves more complicated tasks, more authority should be given to the person in that position. - **Management by objectives:** It can direct all employees in a specific department to work together towards the organisation's objectives. ## Advantages and disadvantages of different leadership styles | Advantages | Disadvantages | |---|---| | **Autocratic leadership** | Quick decisions, more efficient operation | Lower employee motivation, heavy reliance onthe manager, narrow scope of view | | **Participative leadership** | Widen the manager's exposure, strengthen employees' support for business decisions, enhance employees' commitment and motivation | Lower operational efficiency, increase risk of information leaks | | **Laissez-faire leadership** | Greater employee motivation, encourage innovation | Chaos in the workplace, lack of directions for passive or inexperienced employees |