02-FUNCTIONS-OF-MANAGEMENT.pptx

FUNCTIONS OF MANAGEMENT
Management entails 5 basic functions: planning, organizing,
staffing, leading, and controlling resources (land, labor,
capital, and information) to efficiently reach a company's
goals.

1. THE PLANNING FUNCTION
It is the basic function of management. It deals with
chalking out a future course of action & deciding in
advance the most appropriate course of actions for
achievement of pre-determined goals. It bridges the gap
from where we are and where we want to be. Planning is
determination of courses of action to achieve desired
goals.

STRATEGIC PLANNING
Strategic plans outline the organization’s long-range (two
to five years) organizational goals and set a course of
action they will pursue to reach its goals. These long-term
goals encompass eight major areas of concern: market
standing, innovation, human resources, financial resources,
physical resources, productivity, social responsibility, and
financial performance.

2. THE ORGANIZING FUNCTION
It is 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 or its functioning i.e. raw
material, tools, capital and personnel”. To organize a
business involves determining and providing human and
non-human resources to the organizational structure.

2. THE ORGANIZING FUNCTION
Organizing as a process involves:
• Identification of activities.
• Classification or grouping of activities.
• Assignment of duties.
• Delegation of authority and creation of responsibility.
• Coordinating authority and responsibility relationships.

3. THE STAFFING FUNCTION
It is the function of manning the organization structure
and keeping it manned. Staffing has assumed greater
importance in the recent years 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 on right job

3. THE STAFFING FUNCTION
Staffing involves:
• Manpower Planning (estimating manpower in terms of
searching, choose the person and giving the right place).
• Recruitment, selection & placement.
• Training & development.
• Remuneration.
• Performance appraisal.
• Promotions & transfer.

4. THE DIRECTING FUNCTION
It is that part of managerial function which actuates the
organizational methods to work efficiently for achievement
of organizational purposes. Direction is that inert-personnel
aspect of management which deals directly with
influencing, guiding, supervising, motivating sub-ordinate
for the achievement of organizational goals.

Direction has the following elements:
• Supervision
• Motivation
• Leadership
• Communication

SUPERVISION: implies overseeing the work of
subordinates by their superiors. It is the act of watching &
directing work & workers.
MOTIVATION: means inspiring, stimulating or encouraging
the sub-ordinates with zeal to work. Positive, negative,
monetary, non-monetary incentives may be used for this
purpose

LEADERSHIP: may be defined as a process by which
manager guides and influences the work of subordinates in
desired direction.
COMMUNICATION: is the process of passing information,
experience, opinion from one person to another. It is a
bridge of understanding.

5. THE CONTROLLING FUNCTION
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 can actually
occur.

5. THE CONTROLLING FUNCTION
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

LEVELS OF MANAGEMENT
1. TOP LEVEL
2. MIDDLE LEVEL
3. LOWER/SUPERVISORY LEVEL

TOP LEVEL
• The managers working at this level have maximum authority.
• It includes group of crucial persons essential for leading and
directing the efforts of other people. For example, Managing
Director, General Manager, President, Vice President, Chief
Executive Officer (C.E.O.) etc.

MIDDLE MANAGEMENT LEVEL
• This level of management consists of departmental heads
such as purchase department head, sales department head,
marketing manager etc.
• People of this group are responsible for executing the plans
and policies made by top level.

LOW LEVEL MANAGEMENT
• Their authority is limited. The quality and quantity of output
depends upon the efficiency of this level of managers.
• Managers of this group carry on the work or perform the
activities according to the plans of top and middle level
management. Supervisors, clerks etc. come under this group.
• They pass on the instruction to workers and report to the
middle level management.

MANAGERIAL FUNCTIONS AND THE ORGANIZATIONAL HIERARCHY

MANAGERIAL SKILLS
The cognitive ability to see the organization as a
whole and the relationships among its parts
The ability to work with and through other people
and to work effectively as a group member
The understanding and proficiency in the
performance of specific tasks.
CONCEPTUAL
SKILL
HUMAN
SKILL
TECHNICAL
SKILL

02-FUNCTIONS-OF-MANAGEMENT.pptx

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