Management functions
- 1. TOPIC MANAGEMENT PLANNING Foundations of Planning Planning is one of the four functions of management. Planning involves defining the Organization’s goals, establishing an overall strategy for achieving these goals, and developing plans for organizational work activities. The term planning as used in this chapter refers to formal planning. Purposes of Planning As a managerial function planning is important due to the following reasons:- 1) To manage by objectives: All the activities of an organization are designed to achieve certain specified objectives. However, planning makes the objectives more concrete by focusing attention on them. 2) To offset uncertainty and change: Future is always full of uncertainties and changes. Planning foresees the future and makes the necessary provisions for it. 3) To secure economy in operation: Planning involves, the selection of most profitable course of action that would lead to the best result at the minimum costs. 4) To help in co-ordination: Co-ordination is, indeed, the essence of management, the planning is the base of it. Without planning it is not possible to co-ordinate the different activities of an organization. 5) To make control effective: The controlling function of management relates to the comparison of the planned performance with the actual performance. In the absence of plans, a management will have no standards for controlling other's performance. 6) To increase organizational effectiveness: Mere efficiency in the organization is not important; it should also lead to productivity and effectiveness. Planning enables the manager to measure the organizational effectiveness in the context of the stated objectives and take further actions in this direction. Nature of Planning i. Planning is goal-oriented: Every plan must contribute in some positive way towards the accomplishment of group objectives. Planning has no meaning without being related to goals. ii. Primacy of Planning: Planning is the first of the managerial functions. It precedes all other management functions. iii. Pervasiveness of Planning: Planning is found at all levels of management. Top management looks after strategic planning. Middle management is in charge of administrative planning. Lower management has to concentrate on operational planning. iv. Efficiency, Economy and Accuracy: Efficiency of plan is measured by its contribution to the objectives as economically as possible. Planning also focuses on accurate forecasts.
- 2. v. Co-ordination: Planning co-ordinates the what, who, how, where and why of planning. Without co-ordination of all activities, we cannot have united efforts. vi. Limiting Factors: A planner must recognize the limiting factors (money, manpower etc) and formulate plans in the light of these critical factors. vii. Flexibility: The process of planning should be adaptable to changing environmental conditions. viii. Planning is an intellectual process: The quality of planning will vary according to the quality of the mind of the manager. Characteristics/features of planning 1. Primary function 2. A dynamic process 3. Planning is based on objectives 4. Planning is a selective process 5. Pervades all managerial functions 6. Planning is an intellectual process 7. Planning is a continuous process 8. It concerns future activities Planning and Performance Although organizations that use formal planning do not always outperform those that do not plan, most studies show positive relationships between planning and performance. Effective planning and implementation play a greater part in high performance than does the amount of planning done. Studies have shown that when formal planning has not led to higher performance, the external environment is often the reason. The Role of Goals and Plans in Planning Planning is often called the primary management function because it establishes the basis for all other functions. Planning involves two important elements: goals and plans. Goals (often called objectives) are desired outcomes for individuals, groups, or entire organizations. TYPES OF GOALS a. Financial goals versus strategic goals Financial goals related to the financial performance of the organization while Strategic goals are related to other areas of an organizations performance. b. Stated goals versus real goals Stated goals are official statements of what an organization says and what it wants its various stakeholders to believe its goals are. Real goals are those that an organization actually pursues, as defined by the actions of its members. Types of Plans Plans can be described by their breadth, time frame, specificity, and frequency of use On the basis of Breadth plans can be Strategic or operational plans. Strategic plans (long-term plans) are plans that apply to the entire organization, establish the
- 3. organization’s overall goals, and seek to position the organization in terms of its environment. Operational plans (short-term plans) are plans that specify the details of how the overall goals are to be achieved. On the basis of Time frame plans can be Short-term or long-term plans. Short term plans are plans that cover one year or less. Long-term plans are plans with a time frame beyond three years. On the basis of Specificity plans can be Specific or directional plans. Specific plans are plans that are clearly defined and leave no room for interpretation. Directional plans are flexible plans that set out general guidelines. On the basis of Frequency of use plans can be Single-use or standing plans. A single- use plan is a one-time plan specifically designed to meet the needs of a unique situation. Standing plans are ongoing plans that provide guidance for activities performed repeatedly. Approaches to Establishing Goals Goals can be established through the process of traditional goal setting or through MBO (management by objectives). Traditional goal setting is an approach to setting goals in which goals are set at the top level of the organization and then broken into sub goals for each level of the organization. Traditional goal setting assumes that top managers know what is best because of their ability to see the “big picture.” Employees are to work to meet the goals for their particular area of responsibility. This traditional approach requires that goals must be made more specific as they flow down to lower levels in the organization. In striving to achieve specificity, however, objectives sometimes lose clarity and unity with goals set at a higher level in the When the hierarchy of organizational goals is clearly defined, it forms an integrated means end chain—an integrated network of goals in which the accomplishment of goals at one level serves as the means for achieving the goals, or ends, at the next level. DEVELOPING PLANS (THE PLANNING PROCESS) The process of developing plans is influenced by three contingency factors and by the particular planning approach used by the organization. Three Contingency Factors in Planning are Manager’s level in the organization: Operational planning usually dominates the planning activities of lower-level managers. As managers move up through the levels of the organization, their planning becomes more strategy oriented. Degree of environmental uncertainty: The greater the environmental uncertainty, the more directional plans should be, with emphasis placed on the short term. When uncertainty is high, plans should be specific, but flexible. Managers must be prepared to rework and amend plans, or even to abandon their plans if necessary. Length of future commitments: According to the commitment concept, plans should extend far enough to meet those commitments made today. Planning for too long or for too short a time period is inefficient and ineffective. Steps in planning include
- 4. 1. Establishment of objectives to be attained-overall and departmental, sectional or individual 2. Establishment of planning premises. Premises may be internal or external 3. Identification of alternatives, taking into mind the minimum preliminary criteria I.e. capital investment, government, government controls, matching with present business market conditions, skilled workers and techniques available 4. Evaluation of alternatives- done in terms of profitability, risks involved, capital investment, gestation period, keeping in mind the negative and positive points of the plan 5. Choice of alternatives – the best one, more than one alternative may be selected 6. Formulating derivative plans for each segment of the company 7. Establishing sequence of activities Criticisms of Planning Although planning is an important managerial function with widespread use, five major arguments have been directed against planning: Planning may create rigidity. Plans can’t be developed for a dynamic environment. Formal plans can’t replace intuition and creativity. Planning focuses managers’ attention on today’s competition, not on tomorrow’s survival. Formal planning reinforces success, which may lead to failure. The external environment is constantly changing. Therefore managers should develop plans that are specific, but flexible. Managers must also recognize that planning is an ongoing process, and they should be willing to change directions if environmental conditions warrant. Flexibility is particularly important. Managers must remain alert to environmental changes that could impact the effective implementation of plans, and they must be prepared to make changes as needed. TOPIC THE STAFFING FUNCTION Staffing involves filling the positions needed in the organization structure by appointing competent and qualified persons for the job. The staffing process encompasses man power planning, recruitment, selection, and training. a) Manpower requirements: Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. The primary function of man power planning is to analyze and evaluate the human resources available in the organization, and to determine how to obtain the kinds of personnel needed to staff positions ranging from assembly line workers to chief executives. b) Recruitment: Recruitment is the process of finding and attempting to attract job candidates who are capable of effectively filling job vacancies. Job descriptions and job specifications are important in the
- 5. recruiting process because they specify the nature of the job and the qualifications required of job candidates. c) Selection: Selecting a suitable candidate can be the biggest challenge for any organization. The success of an organization largely depends on its staff. Selection of the right candidate builds the foundation of any organization's success and helps in reducing turnovers. d) Training and Development: Training and Development is a planned effort to facilitate employee learning of job related behaviors in order to improve employee performance. Experts sometimes distinguish between the terms “training” and “development”; “training” denotes efforts to increase employee skills on present jobs, while “development” refers to efforts oriented toward improvements relevant to future jobs. In practice, though, the distinction is often blurred (mainly because upgrading skills in present jobs usually improves performance in future jobs). RECRUITMENT PROCESS Recruitment is the process of finding and attempting to attract job candidates who are capable of effectively filling job vacancies. The recruitment process consists of the following steps • Identification of vacancy • Preparation of job description and job specification • Selection of sources • Advertising the vacancy • Managing the response a) Identification of vacancy: The recruitment process begins with the human resource department receiving requisitions for recruitment from any department of the company. These contain: • Posts to be filled • Number of persons • Duties to be performed • Qualifications required b) Preparation of job description and job specification: A job description is a list of the general tasks, or functions, and responsibilities of a position. It may often include to whom the position reports, specifications such as the qualifications or skills needed by the person in the job, or a salary range. A job specification describes the knowledge, skills, education, experience, and abilities you believe are essential to performing a particular job. c) Selection of sources: Every organization has the option of choosing the candidates for its recruitment processes from two kinds of sources: internal and external sources. The sources within the organization itself (like transfer of employees from one department to other, promotions) to fill a position are known as the internal sources of recruitment. Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as the external sources of the recruitment. d) Advertising the vacancy:
- 6. After choosing the appropriate sources, the vacancy is communicated to the candidates by means of a suitable media such as television, radio, newspaper, internet, direct mail etc. e) Managing the response: After receiving an adequate number of responses from job seekers, the sieving process of the resumes begins. This is a very essential step of the recruitment selection process, because selecting the correct resumes that match the job profile, is very important. Naturally, it has to be done rather competently by a person who understands all the responsibilities associated with the designation in its entirety. Candidates with the given skill set are then chosen and further called for interview. Also, the applications of candidates that do not match the present nature of the position but may be considered for future requirements are filed separately and preserved. The recruitment process is immediately followed by the selection process. SELECTION PROCESS Selecting a suitable candidate can be the biggest challenge for any organisation. The success of an organization largely depends on its staff. Selection of the right candidate builds the foundation of any organization's success and helps in reducing turnovers. Though there is no fool proof selection procedure that will ensure low turnover and high profits, the following steps generally make up the selection process a)Initial Screening This is generally the starting point of any employee selection process. Initial Screening eliminates unqualified applicants and helps save time. Applications received from various sources are scrutinized and irrelevant ones are discarded. b) Preliminary Interview It is used to eliminate those candidates who do not meet the minimum eligibility criteria laid down by the organization. The skills, academic and family background, competencies and interests of the candidate are examined during preliminary interview. Preliminary interviews are less formalized and planned than the final interviews. The candidates are given a brief up about the company and the job profile; and it is also examined how much the candidate knows about the company. Preliminary interviews are also called screening interviews. c) Filling Application Form An candidate who passes the preliminary interview and is found to be eligible for the job is asked to fill in a formal application form. Such a form is designed in a way that it records the personal as well professional details of the candidates such as age, qualifications, reason for leaving previous job, experience, etc. d) Personal Interview Most employers believe that the personal interview is very important. It helps them in obtaining more information about the prospective employee. It also helps them in interacting with the candidate and judging his communication abilities, his ease of handling pressure etc. In some Companies, the selection process comprises only of the Interview. e) References check Most application forms include a section that requires prospective candidates to put down names of a few references. References can be classified into - former employer, former customers,
- 7. business references, reputable persons. Such references are contacted to get a feedback on the person in question including his behaviour, skills, conduct etc. f) Background Verification A background check is a review of a person's commercial, criminal and (occasionally) financial records. Employers often perform background checks on employers or candidates for employment to confirm information given in a job application, verify a person's identity, or ensure that the individual does not have a history of criminal activity, etc., that could be an issue upon employment. g) Final Interview Final interview is a process in which a potential employee is evaluated by an employer for prospective employment in their organization. During this process, the employer hopes to determine whether or not the applicant is suitable for the job. Different types of tests are conducted to evaluate the capabilities of an applicant, his behaviour, special qualities etc. Separate tests are conducted for various types of jobs. h) Physical Examination If all goes well, then at this stage, a physical examination is conducted to make sure that the candidate has sound health and does not suffer from any serious ailment. i) Job Offer A candidate who clears all the steps is finally considered right for a particular job and is presented with the job offer. An applicant can be dropped at any given stage if considered unfit for the job. TOPIC DECISION MAKING Everyone in an organization makes decisions, but decision making is particularly important in a manager’s job. Decision making is such an important part of all four managerial functions that decision making is said to be synonymous with managing. Meaning Decision making is the process of selecting one alternative among many available to achieve a desired goal. It is a conscious and human process Characteristics of DM 1. It is a selection process 2. It is a human and rational process 3. It is a dynamic process 4. Dm making is a goal oriented process 5. It implies freedom to the decision maker regarding their final choice 6. Dm is a continuous process 7. Dm may be positive or negative The Decision-Making Process A decision is a choice made from two or more alternatives. The decision-making process is a set of eight steps that include the following:
- 8. • Identifying a problem: A problem is a discrepancy between an existing state and a desired state of affairs. In order to identify a problem, a manager should be able to differentiate the problem from its symptom; he should be under pressure to take action and must have the authority and resources to take action. • Identifying decision criteria: Decision criteria are criteria that define what Relevant is in a decision. • Allocating weights to the criteria: The criteria identified in the previous step of the decision-making process may not have equal importance. So he decision maker must assign a weight to each of the items in order to give each item accurate priority in the decision. • Developing alternatives: The decision maker should then identify viable alternatives that could resolve the problem. • Analyzing alternatives: Each of the alternatives are then critically analyzed by evaluating it against the criteria established in Steps 2 and 3. • Selecting an alternative: The next step is to select the best alternative from among those identified and assessed. If criteria weights have been used, the decision maker would select the alternative that received the highest score in Step 5. • Implementing the alternative: The selected alternative is implemented by effectively communicating the decision to the individuals who would be affected by it and their commitment to the decision is acquired. • Evaluating decision effectiveness: The last step in the decision-making process is to assess the result of the decision in order to determine whether or not the problem has been resolved. Characteristics of Effective Decisions An effective decision is one which should contain three aspects. These aspects are given below: • Action Orientation: Decisions are action-oriented and are directed towards relevant and controllable aspects of the environment. Decisions should ultimately find their utility in implementation. • Goal Direction: Decision making should be goal-directed to enable the organization to meet its objectives. • Effective in Implementation: Decision making should take into account all the possible factors not only in terms of external context but also in internal context so that a decision can be implemented properly. Bases of decision making Managers can make decisions on the basis of rationality, bounded rationality, or intuition. 1. Rational decision making. Managerial decision making is assumed to be rational—that is, making choices that are consistent and value-maximizing within specified constraints. A rational manager would be completely logical and objective. Rational decision making assumes that the manager is making decisions in the best interests of the organization, not in his/her own
- 9. interests. The assumptions of rationality can be met if the manager is faced with a simple problem in which (1) Goals are clear and alternatives limited, (2) Time pressures are minimal and the cost of finding and evaluating alternatives is low, (3) The organizational culture supports innovation and risk taking, and (4) outcomes are concrete and measurable. 2. Bounded rationality. As the perfectly rational model of decision making isn’t realistic, managers tend to operate under assumptions of bounded rationality, which is decision-making behavior that is rational, but limited (bounded) by an individual’s ability to process information. Under bounded rationality, managers make satisfying decisions, in which they accept solutions that are “good enough.” Managers’ decision making may be strongly influenced by the organization’s culture, internal politics, power considerations, and by a phenomenon called escalation of commitment— an increased commitment to a previous decision despite evidence that it may have been wrong. 3. Intuitive decision making. Managers also regularly use their intuition. Intuitive decision making is a subconscious process of making decisions on the basis of experience and accumulated judgment. Although intuitive decision making will not replace the rational decision- making process, it does play an important role in managerial decision making. TYPES OF PROBLEMS AND DECISIONS Managers encounter different types of problems and use different types of decisions to resolve them. Problems can be structured problems or unstructured problems and decisions can be programmed decisions or non programmed decisions. Structured problems are straightforward, familiar, and easily defined. In dealing with structured problems, a manager may use a programmed decision, which is a repetitive decision that can be handled by a routine approach. Managers rely on three types of programmed decisions: a) A procedure is a series of interrelated sequential steps that can be used to respond to a structured problem. b) A rule is an explicit statement that tells managers what they can or cannot do. c) A policy is a guideline for making decisions. Unstructured problems are problems that are new or unusual and for which information is ambiguous or incomplete. These problems are best handled by a non programmed decision that is a unique decision that requires a custom made solution. At higher levels in the organizational hierarchy, managers deal more often with difficult, unstructured problems and make non programmed decisions in attempting to resolve these problems and challenges. Lower-level managers handle routine decisions, using programmed decisions. Decision-Making Conditions Decision can be made under conditions of certainty, uncertainty and risk. Certainty is a situation in which a manager can make accurate decisions because all outcomes are known. Few managerial decisions are made under the condition of certainty.
- 10. More common is the situation of risk, in which the decision maker is able to estimate the likelihood of certain outcomes. Uncertainty is a situation in which the decision maker is not certain and cannot even make reasonable probability estimates concerning outcomes of alternatives. In such a situation, the choice of alternative is influenced by the limited amount of information available to the decision maker. It’s also influenced by the psychological orientation of the decision maker. 1) An optimistic manager will follow a maximax choice, maximizing the maximum possible payoff. 2) A pessimistic manager will pursue a maximin choice, maximizing the minimum possible payoff. 3) The manager who desires to minimize the maximum regret will opt for a minimax choice. TOPIC THE ORGANIZING FUNCTION DEFINITION According to Koontz and O'Donnell, "Organization involves the grouping of activities necessary to accomplish goals and plans, the assignment of these activities to appropriate departments and the provision of authority, delegation and co-ordination." Organization involves division of work among people whose efforts must be co-ordinated to achieve specific objectives and to implement pre-determined strategies. NATURE OR CHARACTERISTICS OF ORGANIZING From the study of the various definitions given by different management experts we get the following information about the characteristics or nature of organization, (1) Division of Work: Division of work is the basis of an organization. In other words, there can be no organization without division of work. Under division of work the entire work of business is divided into many departments .The work of every department is further sub- divided into sub works. In this way each individual has to do the saran work repeatedly which gradually makes that person an expert. (2) Coordination: Under organizing different persons are assigned different works but the aim of all these persons happens to be the some - the attainment of the objectives of the enterprise. Organization ensures that the work of all the persons depends on each other’s work even though it happens to be different. The work of one person starts from where the work of another person ends. The non-completion of the work of one person affects the work of everybody. Therefore, everybody completes his work in time and does not hinder the work of others. It is thus, clear that it is in the nature of an organization to establish coordination among different works, departments and posts in the enterprise. (3) Plurality of Persons: Organization is a group of many persons who assemble to fulfill a common purpose. A single individual cannot create an organization.
- 11. (4) Common Objectives: There are various parts of an organization with different functions to perform but all move in the direction of achieving a general objective. (5) Well-defined Authority and Responsibility: Under organization a chain is established between different posts right from the top to the bottom. It is clearly specified as to what will be the authority and responsibility of every post. In other words, every individual working in the organization is given some authority for the efficient work performance and it is also decided simultaneously as to what will be the responsibility of that individual in case of unsatisfactory work performance. (6) Organization is a Structure of Relationship: Relationship between persons working on different posts in the organization is decided. In other words, it is decided as to who will be the superior and who will be the subordinate. Leaving the top level post and the lowest level post everybody is somebody's superior and somebody's subordinate. The person working on the top level post has no superior and the person working on the lowest level post has no subordinate. (7) Organization is a Machine of Management: Organization is considered to be a machine of management because the efficiency of all the functions depends on an effective organization. In the absence of organization no function can be performed in a planned manner. It is appropriate to call organization a machine of management from another point of view. It is that machine in which no part can afford tube ill-fitting or non-functional. In other words, if the division of work is not done properly or posts are not created correctly the whole system of management collapses. (8) Organization is a Universal Process: Organization is needed both in business and non business organizations. Not only this, organization will be needed where two or mom than two people work jointly. Therefore, organization has the quality of universality. (9) Organization is a Dynamic Process: Organization is related to people and the knowledge and experience of the people undergo a change. The impact of this change affects the various functions of the organizations. Thus, organization is not a process that can be decided for all times to come but it undergoes changes according to the needs. The example in this case can be the creation or abolition of a new post according to the need. IMPORTANCE OR ADVANTAGES OF ORGANIZING Organization is an instrument that defines relations among different people which helps them to understand as in who happens to be their superior and who is their subordinate. This information helps in fixing responsibility and developing coordination. In such circumstances the objectives of the organization can be easily achieved. That is why, it is said that Organization Is a mechanism of management. In addition to that it helps in the other functions of management like planning, staffing, leading, controlling, etc. The importance of organization or its merits becomes clear from the following facts, a) Increase in Managerial Efficiency: A good and balanced organization helps the managers to increase their efficiency. Managers, through the medium of organization, make a proper distribution of the whole work among different people according to their ability.
- 12. b) Proper Utilization of Resources: Through the medium of organization optimum utilization of all the available human and material resources of an enterprise becomes possible. Work is allotted to every individual according to his ability and capacity and conditions ant created to enable him to utilize his ability to the maximum extent. For example, if an employee possesses the knowledge of modem machinery but the modem machinery is not available in the organization, in that case, efforts are made to make available the modem machinery. c) Sound Communication Possible: Communication is essential for taking the right decision at the right time. However, the establishment of a good communication system is possible only through an organization. In an organization the time of communication is decided so that all the useful information reaches the officers concerned which. in turn, helps the decision-making. d) Facilitates Coordination: In order to attain successfully the objectives of the organization, coordination among various activities in the organization is essential. Organization is the only medium which makes coordination possible. Under organization the division of work is made in such a manner as to make all the activities complementary to each other increasing their interdependence. Inter-dependence gives rise to the establishment of relations which, in turn, increases coordination. e) Increase in Specialization: Under organization the whole work is divided into different parts. Competent persons are appointed to handle all the sub-works and by handling a particular work repeatedly they become specialists. This enables them to have maximum work performance in the minimum time while the organization gets the benefit of specialization. f) Helpful in Expansion: A good organization helps the enterprise in facing competition. When an enterprise starts making available good quality product at cheap rates, it increases the demand for its products. In order to meet the increasing demand for its products an organization has to expand its business. On the other hand, a good organization has an element of flexibility which far from impeding the expansion work encourages it. ORGANIZING PROCESS Organization is the process of establishing relationship among the members of the enterprise. The relationships are created in terms of authority and responsibility. To organize is to harmonize, coordinate or arrange in a logical and orderly manner. Each member in the organization is assigned a specific responsibility or duty to perform and is granted the corresponding authority to perform his duty. The managerial function of organizing consists in making a rational division of work into groups of activities and tying together the positions representing grouping of activities so as to achieve a rational, well coordinated and orderly structure for the accomplishment of work. According to Louis A Allen, "Organizing involves identification and grouping the activities to be performed and dividing them among the individuals and creating authority and responsibility relationships among them for the accomplishment of organizational objectives." The various steps involved in this process are:
- 13. a) Determination of Objectives: It is the first step in building up an organization. Organization is always related to certain objectives. Therefore, it is essential for the management to identify the objectives before starting any activity. Organization structure is built on the basis of the objectives of the enterprise. That means, the structure of the organization can be determined by the management only after knowing the objectives to be accomplished through the organization. This step helps the management not only in framing the organization structure but also in achieving the enterprise objectives with minimum cost and efforts. Determination of objectives will consist in deciding as to why the proposed organization is to be set up and, therefore, what will be the nature of the work to be accomplished through the organization. b) Enumeration of Objectives: If the members of the group are to pool their efforts effectively, there must be proper division of the major activities. The first step in organizing group effort is the division of the total job into essential activities. Each job should be properly classified and grouped. This will enable the people to know what is expected of them as members of the group and will help in avoiding duplication of efforts. For example, the work of an industrial concern may be divided into the following major functions – production, financing, personnel, sales, purchase, etc. c) Classification of Activities: The next step will be to classify activities according to similarities and common purposes and functions and taking the human and material resources into account. Then, closely related and similar activities are grouped into divisions and departments and the departmental activities are further divided into sections. d) Assignment of Duties: Here, specific job assignments are made to different subordinates for ensuring a certainty of work performance. Each individual should be given a specific job to do according to his ability and made responsible for that. He should also be given the adequate authority to do the job assigned to him. In the words of Kimball and Kimball - "Organization embraces the duties of designating the departments and the personnel that are to carry on the work, defining their functions and specifying the relations that are to exist between department and individuals." e) Delegation of Authority: Since so many individuals work in the same organization, it is the responsibility of management to lay down structure of relationship in the organization. Authority without responsibility is a dangerous thing and similarly responsibility without authority is an empty vessel. Everybody should clearly know to whom he is accountable; corresponding to the responsibility authority is delegated to the subordinates for enabling them to show work performance. This will help in the smooth working of the enterprise by facilitating delegation of responsibility and authority. TOPIC DIRECTING MANAGERIAL FUNCTION
- 14. DIRECTING is said to be a process in which the managers instruct, guide and oversee the performance of the workers to achieve predetermined goals. Directing is said to be the heart of management process. planning, organizing, staffing have got no importance if direction function does not take place. Directing initiates action and it is from here actual work starts. Direction is said to be consisting of human factors. In simple words, it can be described as providing guidance to workers is doing work. In field of management, direction is said to be all those activities which are designed to encourage the subordinates to work effectively and efficiently. According to Human, “Directing consists of process or technique by which instruction can be issued and operations can be carried out as originally planned” Therefore, Directing is the function of guiding, inspiring, overseeing and instructing people towards accomplishment of organizational goals. "Activating deals with the steps a manager takes to get sub-ordinates and others to carry out plans". - Newman and Warren. After plans have been ready and the organization has been established and staffed, the next step is to progress towards its distinct objectives. This role of manager can be called by various names like "actuating", "leading", "directing", "motivating" and so on. But whatsoever the name used to recognize it, in carrying out this function the manager clarify to his people what they have to do and facilitate them do it to do the best of their capability. Directing thus engages three sub-functions; they are communication, leadership and motivation. Communication is the process of passing information and understanding from one person to another person. Leadership is the process in which a manager guides and influences the effort of his subordinates. Motivation means arousing desire or wish in the minds of workers to give their greatest to the enterprise. It is the act of inspiring or rousing workers. If the workers of an organization are appropriately motivated they will pull their weight efficiently, give their loyalty to the enterprise, and perform their duty effectively. Motivation is classified under two broad categories; financial and non-financial. Financial motivation takes the form of bonus, profit- sharing, distribution of company share etc. whereas non-financial motivation takes the form of opportunity of advancement, job security, recognition, praise, etc. Directing in Management Directing means giving instructions, guiding, counselling, motivating and leading the staff in an organization in doing work to achieve Organizational goals. Directing is a key managerial function to be performed by the manager along with planning, organizing, staffing and controlling. From top executive to supervisor performs the function of directing and it takes place accordingly wherever superior – subordinate relations exist. Directing is a continuous process initiated at top level and flows to the bottom through organizational hierarchy Importance of Directing Directing function is the basis of management process and the accomplishment of goals depends on this. This function is also known as actuating function of management as an enterprise’s
- 15. running really begins on the direction. Several benefits are provided to an organization because direction is the central point of an organization and they are as follows: Directing initiates actions: Directions is the beginning of the subordinate’s execution of their work. Actions begin right from this function onward as the employees learn their jobs and carry out the proper instructions that are given to them. Plans which are made can be carried out only after the actual job begins and it is only then that the direction turns out to be helpful. Directing integrates efforts: The superiors are capable of directing, inspiring and instructing the employees to work only by directing. To do this, every person needs to work hard in order to accomplish the goals of an organization. Every department’s efforts can be easily connected and included along with the other departments through proper direction. This can also be achieved through influential leadership and efficient communication. A concern achieves certain stability only through effectively incorporating all the efforts made by all. Directing is a means of motivation: The function of direction aids in achieving all the goals effectively. A manager uses this motivation factor effectively in order to enhance the employee’s performance in the organization. This can be easily achieved by giving proper salaries or rewards and this in turn enables to help as a sort of ‘’Morale Booster’’ for the employees in an organization. The employees can do their best through effective motivation and this in turn aids in the eventual expansion of an organization. Directing provides stability: An organization’s balance and constancy is very vital for surviving in the market in the long run. The managers can achieve this effectively by using four tools or essentials of direction, cautiously blending influential leadership skills, able communication, a firm command and also a well-organized motivation. Stability is very vital as it is an indication of the enterprise’s expansion. Hence, a manager can utilize all the four traits within himself in order to uphold the standards of performance of an organization. Directing will enable to cope with the changes: It is normal for humans to resist any new changes that are brought in an organization. However, in order to become a leader in the market, it is important to able to adapt oneself to the ever-changing environment which in turn aids in supporting planned growth of an organization. The function of direction is necessary for meeting the new challenges in a fast- changing environment, both internally and externally. The changes in an environment can be managed easily through effective communication. The manager’s role is to effectively communicate all the contents and nature of new modifications explicitly to the employees. This aids in clarifying, easily adapting and an enterprise’s smooth functioning. For instance, if an enterprise changes from handlooms to doing power looms, it is necessary to bring about a vital change in the methods of production. This results in a decrease of human labor and an increase in using more machines for this purpose. Hence, in this case, the manager can explain to his employees that it is important to bring about this change in order to benefit them. Production increases as a result of utilization of more machines and this in turn results in more profits for the enterprise. Hence, the subordinates are benefited indirectly through this change in the form of high salaries being given to them. Directing helps in efficient utilization of resources: The proper direction of money aids in
- 16. defining the roles and responsibilities of all the employees towards their own work. Utilization of resources can be effectively done only when there is no duplication of any efforts, no wastage, overlapping of achievements and so on. The roles of employees become defined only through proper direction as the manager uses his control, guiding and instructional abilities and skills of motivating and inspiring all his subordinates in the organization. This aids in the greatest employment of resources pertaining to humans, materials, machines and finance and this further aids in cost reduction and an increase in profits of an organization. Elements of Direction The elements of direction that are briefed here under are Supervision, Motivation, Leadership and Communication. Supervision: "Guiding and directing efforts of employees and other resources to accomplish stated work outputs" - Terry and Franklin. "Day-to-day relationship between an executive and his immediate assistant and covers training, direction, motivation, coordination, maintenance of discipline etc"- Newman and Warren. Supervision denotes the functions performed by the supervisors. Motivation : "Motivation is the complex force starting and keeping a person at work in an organization. Motivation is something that moves the person to action, and continues him in the course of action already initiates." Dubin. Motivation is the core of management. Technically, the term motivation can be traced to the Latin word movere, which means 'to move'. Motivating is a term which implies that one person induces another, to engage in action by ensuring that a channel to satisfy the motive becomes available to the individual. Motive is energizer of action, motivating is the channelization and activation of motives, motivation is the work behavior itself. Motivation depends on motives and motivating. It is a complex process. Leadership : "Leadership is essentially a continuous process of influencing behavior A leader breathes life into the group and motivates it towards goals. The lukewarm desires for achievement are transformed into burning passion for accomplishment".- George R. Terry. Leadership is the process of influencing the behavior of others to work willingly and enthusiastically for achieving predetermined goals. It is an essential ingredient for successful organization.The successful organization has one major attribute that sets sets it apart from unsuccessful organization that is dynamic and effective leadership. Communication : "Communication is the transfer of information from one person to another person. It is a way of reaching others by transmitting ideas, facts, thoughts, feeling sand values." Newstrom and Davis. Communication is regarded as basic to the functioning of the organization, in its absence, the organization would cease to exist. It is the process through which two or more persons come to exchange ideas and understanding among themselves. Directing Characteristics Direction has got following characteristics: 1. Pervasive Function - Directing is required at all levels of organization. Every manager provides guidance and inspiration to his subordinates.
- 17. 2. Continuous Activity - Direction is a continuous activity as it continuous throughout the life of organization. 3. Human Factor - Directing function is related to subordinates and therefore it is related to human factor. Since human factor is complex and behaviour is unpredictable, direction function becomes important. 4. Creative Activity - Direction function helps in converting plans into performance. Without this function, people become inactive and physical resources are meaningless. 5. Executive Function - Direction function is carried out by all managers and executives at all levels throughout the working of an enterprise, a subordinate receives instructions from his superior only. 6. Delegate Function - Direction is supposed to be a function dealing with human beings. Human behaviour is unpredictable by nature and conditioning the people’s behaviour towards the goals of the enterprise is what the executive does in this function. Therefore, it is termed as having delicacy in it to tackle human behaviour.