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FUNCTIONS OF MANAGEMENT
MODULE 2
Functions of Management-Planning, Directing, Staffing,
PLANNING
 Planning is deciding in advance what is to be done in the
future.
 Planning is deciding what to do, how to do it, when to do it
and who is to do it.
 Planning bridges the gap from where we are to where we
want to go.
 It makes the impossible things possible
Features of planning
Planning is oriented towards the future.
 Planning is a mental exercise.
 Planning involves choices from alternatives.
 Planning is the basics for all other functions.
It is a continuous function.
Planning is directed towards efficiency.
STEPS INVOLVED IN PLANNING
Analysis of external environment
Establishing objectives
Establishing planning premises
Identifying alternatives
Evaluating alternatives
Selecting best alternative
Formulating derivative plan
Measuring & controlling process
Advantages of planning
It focuses attention on desired objectives.
It helps to minimize risk.
 It improve efficiency.
 It avoid confusions.
 It encourage innovation and creativity.
 It enables co operation and group work
 It serves as the basis of control.
Limitations of planning-
Lack of accurate information.
 Time consuming
Unwillingness to people change
External limitations (political )
How we overcome the limitations?
•Top management support
•Better forecasting
•Developing clear-cut objectives
•Participation of employees in planning
•Sound communication
•Overcoming resistance to change
•Scientific planning
•Well balanced keeping plans.
ORGANIZING
ORGANIZATION:
“Organization is an identifiable group of people
contributing their efforts towards the attainment of
goals.”
ORGANIZING:
“Organizing is the process of defining and
grouping the activities of the enterprise and
establishing the authority relationships among them.”
Steps in organizing
Functions of Management-Planning, Directing, Staffing,
Formal Organization
Formal Organization means the intentional structure of
roles in a formally organized enterprise.
Formal Organization refers to the structure of well
defined jobs, each bearing a definite measure of
authority, responsibility and accountability.
In formal Organization, Each & every person is
assigned the duties, authority , responsibilities &
relationship as prescribed by the top management.
Advantages & Disadvantages of Formal
Organization
Advantages
(1)Optimum use of resources
(2)Job Satisfaction
(3)Motivating Employees
(4)Facilitating Management Action
Disadvantages
(5)Doesn’t allow flexibility
(6)Doesn’t allow long term planning
(7)limited scope of Creativity
Informal Organization
Informal Organization means a network of
interpersonal relationships that arise when people
associate with each other.
Informal Organization means natural grouping of
people in the work situation.
Informal Organization is a network of personal and
social relations not established or required by the
formal organization but arising spontaneously as people
associate with one another.
Benefits of Informal Organization
To the Employees:
(1) Job Satisfaction.
(2) Earn sympathy; guidance & advice.
(3) Get help in critical situation.
(4) Atmosphere favorable to research is built.
(5) Social control on members
(6) If a manager tries to misuse his powers, informal
organization puts a check on him.
To the Managers:
(1) Reduces burden.
(2) If manager is weak, informal group come to his help.
(3) Helps formal organization in realizing its objectives
(4) Additional means of effective & quick communication.
Disadvantages of Informal Organization
(1) Rumors spread swiftly.
(2) It oppose change.
(3) Individuals personal need may go unsatisfied.
(4) Members have to observe norms & values.
(5) Gives importance to group relation which sometimes
challenge the authority of the management
(6) Group leaders sometimes uses group influence to
promote his personal ends
Functions of Management-Planning, Directing, Staffing,
Types of organization
1. Line or scalar organization
2. Line and staff organization
3. Functional organization
4. Project organization
Functions of Management-Planning, Directing, Staffing,
Functions of Management-Planning, Directing, Staffing,
Functions of Management-Planning, Directing, Staffing,
Functions of Management-Planning, Directing, Staffing,
Functions of Management-Planning, Directing, Staffing,
Functions of Management-Planning, Directing, Staffing,
Functions of Management-Planning, Directing, Staffing,
Functions of Management-Planning, Directing, Staffing,
Functions of Management-Planning, Directing, Staffing,
Functions of Management-Planning, Directing, Staffing,
Functions of Management-Planning, Directing, Staffing,
STAFFING
Staffing is the managerial function of recruitment, selection,
training, developing, promotion and compensation of personnel.
Staffing may be defined as the process of hiring and developing
the required personnel to fill in the various positions in the
organization.
Functions of Staffing
 The first and foremost function of staffing is to obtain qualified
personnel for different jobs position in the organization.
 In staffing, the right person is recruited for the right jobs,
therefore it leads to maximum productivity and higher
performance.
 It helps in promoting the optimum utilization of human resource
through various aspects.
 Job satisfaction and morale of the workers increases through the
recruitment of the right person.
 Staffing helps to ensure better utilization of human resources.
 It ensures the continuity and growth of the organization,
through development managers.
STAFFING ACTIVITY INVOLVES –
1. RECRUITING
2. PLACEMENT
3. INDUCTION
4. PROMOTION
DIRECTING
The directing function is concerned with leadership,
communication, motivation and supervision so that the
employees perform their activities in the most efficient manner
possible, in order to achieve the desired goals.
The leadership element involves issuing of instructions and
guiding the subordinates about procedures and methods.
The communication must be open both ways so that the
information can be passed on to the subordinates and the
feedback received from them.
Motivation is very important, since highly motivated people
show excellent performance with less direction from superiors.
Supervising subordinates would lead to continuous progress
reports as well as assure the superiors that the directions are
being properly carried out.
Importance of Directing:
Direction initiates actions
Direction integrates employees efforts
Direction attempts to get maximum out of individuals
Direction facilitates changes in the organization
Direction provides stability and balance in the organization
Communication Process
 The process by which a person (known as sender) transmits
information or messages to another person (known as receiver).
 Purpose - to convey orders, instructions, or information
 Types – 1) formal communication & informal communication
2) verbal & non verbal communication
MOTIVATION
It is a force that inspire a person at work to intensify his
willingness to use the best of his capability for achievement of
specify objectives
It may be in the form of incentives like financial (such as bonus,
commission etc.) or, non-financial (such as appreciation, growth
etc.), or it could be positive or negative.
Basically, motivation is directed towards goals and prompt people
to act.
CONTROLLING
WHAT IS CONTROLLING?
• maintain influence over (others or oneself) skillfully, usually to
one's advantage.
• It is a process of monitoring performance and taking action to
ensure desired results.
• It sees to it that the right things happen, in the right ways,
and at the right time.
CONTROLLING PROCESS –

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Functions of Management-Planning, Directing, Staffing,

  • 3. PLANNING  Planning is deciding in advance what is to be done in the future.  Planning is deciding what to do, how to do it, when to do it and who is to do it.  Planning bridges the gap from where we are to where we want to go.  It makes the impossible things possible
  • 4. Features of planning Planning is oriented towards the future.  Planning is a mental exercise.  Planning involves choices from alternatives.  Planning is the basics for all other functions. It is a continuous function. Planning is directed towards efficiency.
  • 5. STEPS INVOLVED IN PLANNING Analysis of external environment Establishing objectives Establishing planning premises Identifying alternatives Evaluating alternatives Selecting best alternative Formulating derivative plan Measuring & controlling process
  • 6. Advantages of planning It focuses attention on desired objectives. It helps to minimize risk.  It improve efficiency.  It avoid confusions.  It encourage innovation and creativity.  It enables co operation and group work  It serves as the basis of control.
  • 7. Limitations of planning- Lack of accurate information.  Time consuming Unwillingness to people change External limitations (political )
  • 8. How we overcome the limitations? •Top management support •Better forecasting •Developing clear-cut objectives •Participation of employees in planning •Sound communication •Overcoming resistance to change •Scientific planning •Well balanced keeping plans.
  • 9. ORGANIZING ORGANIZATION: “Organization is an identifiable group of people contributing their efforts towards the attainment of goals.” ORGANIZING: “Organizing is the process of defining and grouping the activities of the enterprise and establishing the authority relationships among them.”
  • 12. Formal Organization Formal Organization means the intentional structure of roles in a formally organized enterprise. Formal Organization refers to the structure of well defined jobs, each bearing a definite measure of authority, responsibility and accountability. In formal Organization, Each & every person is assigned the duties, authority , responsibilities & relationship as prescribed by the top management.
  • 13. Advantages & Disadvantages of Formal Organization Advantages (1)Optimum use of resources (2)Job Satisfaction (3)Motivating Employees (4)Facilitating Management Action Disadvantages (5)Doesn’t allow flexibility (6)Doesn’t allow long term planning (7)limited scope of Creativity
  • 14. Informal Organization Informal Organization means a network of interpersonal relationships that arise when people associate with each other. Informal Organization means natural grouping of people in the work situation. Informal Organization is a network of personal and social relations not established or required by the formal organization but arising spontaneously as people associate with one another.
  • 15. Benefits of Informal Organization To the Employees: (1) Job Satisfaction. (2) Earn sympathy; guidance & advice. (3) Get help in critical situation. (4) Atmosphere favorable to research is built. (5) Social control on members (6) If a manager tries to misuse his powers, informal organization puts a check on him. To the Managers: (1) Reduces burden. (2) If manager is weak, informal group come to his help. (3) Helps formal organization in realizing its objectives (4) Additional means of effective & quick communication.
  • 16. Disadvantages of Informal Organization (1) Rumors spread swiftly. (2) It oppose change. (3) Individuals personal need may go unsatisfied. (4) Members have to observe norms & values. (5) Gives importance to group relation which sometimes challenge the authority of the management (6) Group leaders sometimes uses group influence to promote his personal ends
  • 18. Types of organization 1. Line or scalar organization 2. Line and staff organization 3. Functional organization 4. Project organization
  • 30. STAFFING Staffing is the managerial function of recruitment, selection, training, developing, promotion and compensation of personnel. Staffing may be defined as the process of hiring and developing the required personnel to fill in the various positions in the organization.
  • 31. Functions of Staffing  The first and foremost function of staffing is to obtain qualified personnel for different jobs position in the organization.  In staffing, the right person is recruited for the right jobs, therefore it leads to maximum productivity and higher performance.  It helps in promoting the optimum utilization of human resource through various aspects.  Job satisfaction and morale of the workers increases through the recruitment of the right person.  Staffing helps to ensure better utilization of human resources.  It ensures the continuity and growth of the organization, through development managers.
  • 32. STAFFING ACTIVITY INVOLVES – 1. RECRUITING 2. PLACEMENT 3. INDUCTION 4. PROMOTION
  • 33. DIRECTING The directing function is concerned with leadership, communication, motivation and supervision so that the employees perform their activities in the most efficient manner possible, in order to achieve the desired goals. The leadership element involves issuing of instructions and guiding the subordinates about procedures and methods. The communication must be open both ways so that the information can be passed on to the subordinates and the feedback received from them. Motivation is very important, since highly motivated people show excellent performance with less direction from superiors. Supervising subordinates would lead to continuous progress reports as well as assure the superiors that the directions are being properly carried out.
  • 34. Importance of Directing: Direction initiates actions Direction integrates employees efforts Direction attempts to get maximum out of individuals Direction facilitates changes in the organization Direction provides stability and balance in the organization
  • 35. Communication Process  The process by which a person (known as sender) transmits information or messages to another person (known as receiver).  Purpose - to convey orders, instructions, or information  Types – 1) formal communication & informal communication 2) verbal & non verbal communication
  • 36. MOTIVATION It is a force that inspire a person at work to intensify his willingness to use the best of his capability for achievement of specify objectives It may be in the form of incentives like financial (such as bonus, commission etc.) or, non-financial (such as appreciation, growth etc.), or it could be positive or negative. Basically, motivation is directed towards goals and prompt people to act.
  • 37. CONTROLLING WHAT IS CONTROLLING? • maintain influence over (others or oneself) skillfully, usually to one's advantage. • It is a process of monitoring performance and taking action to ensure desired results. • It sees to it that the right things happen, in the right ways, and at the right time.