Management functions and structure
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Management involves coordinating efforts to accomplish goals using available resources. The five basic functions of management are planning, organizing, staffing, coordinating, and controlling. Planning involves setting goals and determining actions to reach goals. Organizing establishes the organizational structure and chain of command. Staffing involves recruiting and developing personnel. Coordinating ensures all activities work together, while controlling establishes standards and monitors performance.
Management functions and structure
- 1. Management in business and organizations is the function that coordinates the efforts of people to accomplish goals and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization or initiative to accomplish a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources. Management is also an academic discipline, a social science whose object of study is the social organization. * 18-sep-14Aloke Raz 1
- 2. * There are five basic function of management. As follows: i)Planning ii)Organizing iii)Staffing iv)Coordinating v)Controlling 18-sep-14Aloke Raz 2
- 3. ** Planning The planning function of management controls all the planning that allows the organization to run smoothly. Planning involves defining a goal and determining the most effective course of action needed to reach that goal. Typically, planning involves flexibility, as the planner must coordinate with all levels of management and leadership in the organization. Planning also involves knowledge of the company’s resources and the future objectives of the business. * Organizing The organizing function of leadership controls the overall structure of the company. The organizational structure is the foundation of a company; without this structure, the day-to-day operation of the business becomes difficult and unsuccessful. Organizing involves designating tasks and responsibilities to employees with the specific skill sets needed to complete the tasks. Organizing also involves developing the organizational structure and chain of command within the company. * Staffing The staffing function of management controls all recruitment and personnel needs of the organization. The main purpose of staffing is to hire the right people for the right jobs to achieve the objectives of the organization. Staffing involves more than just recruitment; staffing also encompasses training and development, performance appraisals, promotions and transfers. Without the staffing function, the business would fail because the business would not be properly staffed to meet its goals. * Coordinating The coordinating function of leadership controls all the organizing, planning and staffing activities of the company and ensures all activities function together for the good of the organization. Coordinating typically takes place in meetings and other planning sessions with the department heads of the company to ensure all departments are on the same page in terms of objectives and goals. Coordinating involves communication, supervision and direction by management. * Controlling The controlling function of management is useful for ensuring all other functions of the organization are in place and are operating successfully. Controlling involves establishing performance standards and monitoring the output of employees to ensure each employee’s performance meets those standards. The controlling process often leads to the identification of situations and problems that need to be addressed by creating new performance standards. The level of performance affects the success of all aspects of the organization. 18-sep-14Aloke Raz 3
- 4. 18-sep-14Aloke Raz 4 * Basis Taylor Fayol Human aspect Taylor disregards human elements and there is more stress on improving men, materials and methods Fayol pays due regards on human element. E.g. Principle of initiative, Espirit De’ Corps and Equity recognizes a need for human relations Status Father of scientific management Father of management principles Efficiency & administration Stressed on efficiency Stressed on general administration Approach It has micro-approach because it is restricted to factory only It has macro-approach and discuses general principles of management which are applicable in every field of management. Scope of principles These principles are restricted to production activities These are applicable in all kinds of organization regarding their management affairs Achievement Scientific management Administrative management
- 5. 18-sep-14Aloke Raz 5 * i)LINE AND STAFF ORGANIZATION ii)FUNCTIONAL iii)COMMITTEE ORGANIZATION iv)PROJECT & MATRIX v)DEPERTMENTALIZATION vi) CENTRALIZATION & DECENTRALIZATION
- 6. 18-sep-14Aloke Raz 6 * *LINE AND STAFF ORGANIZATION When staff specialists are added to a line organization to "advise; "serve;” or “support" the line in some manner, we have a line and staff organization. These specialists contribute to the effectiveness and efficiency of the organization. Their authority is generally limited to making recommendation to the line organization. Sometimes this creates conflict. However, such conflict can be reduced by having staff specialists obtain some line experience, which will tend to make them better understand the problems facing the line managers they support. Such functions as human resources management and research and development are typical staff functions. *FUNCTIONAL Perhaps the oldest and most common method of grouping related functions is by specialized function,such as marketing, finance, and production (or operations). Sometimes this form of departmentalization may create problems if individuals with specialized functions become more concerned with their own specialized area than with the overall business.
- 7. 18-sep-14Aloke Raz 7 * *COMMITTEE ORGANIZATION When a group of people is formally appointed to consider or decide certain matters, this type of structure is a committee. Committees can be permanent (standing) or temporary and usually supplement line and staff functions. Sometimes ad hoc or temporary committees are set up to deal with a specific problem. Once this committee makes its recommendations, it is dissolved. On the other hand, permanent committees usually act in an advisory capacity to certain organizational units or managers. For example, committees are used to a large extent in universities. They may report to a dean or department chair. Certain committees, called plural committees, have the authority to order, not only to recommend. These committees are usually reserved for a very high level, such as the board of directors. An example is an executive committee of the board for compensation or for succession planning. *MATRIX & PROJECT ORGANIZATION Departmentalization by matrix, or project, has received considerable use in recent years, particularly in such industries as aerospace (e.g., NASA). In this method, personnel with different backgrounds and experiences that bear on the project are assembled and given the specific project to be accomplished within a certain time period. When the project is completed, these specialized personnel return to their regular work assignments.
- 8. 18-sep-14Aloke Raz 8 * *DEPARTMENTALIZATION Grouping related functions into manageable units to achieve the objectives of the enterprise in the most efficient and effective manner is departmentalization. A variety of means can be utilized for this purpose. The primary forms of departmentalization are by function, process, product, market, customer, geographic area, and even matrix (also called project organization). In many organizations, a combination of these forms is used. *CENTRALIZATION & DECENTRALIZATION The issues of centralization and decentralization involve the principle of delegation of authority. When a limited amount of authority is delegated in an organization, it is usually characterized as centralized. When a significant amount of authority is delegated to lower levels in the organization, the business is characterized as decentralized. Centralization and decentralization are opposites, and there are different degrees of each. In a highly centralized organization, employees at lower levels have a limited range of decision-making authority.
- 9. 18-sep-14Aloke Raz 9 * *What is Span of Control? Span of control is simply the number of staff that report to a manager. Some companies also have an ideal span of control, which is the number of reports they feel a manager can effectively manage. In this case, if a manager has fewer reports than the ideal, they may feel he or she is not being effectively used, while handling more they may feel that the manager is over- stretched and the reports will not receive enough direction.
- 10. 18-sep-14Aloke Raz 10 * *What are the Implications of Span of Control? Span of control of the average manager in an organization determines the width of the organization, as seen when viewing the organizational chart. Fewer reports to the average manager will result in a taller organizational chart, with more management positions relative to the number of individual contributors. A higher number of reports to the average manager will result in a flatter or wider chart, with fewer management positions relative to the number of individual contributors. * The average span of control will also impact the company's time to make decisions and cost structure. * Higher average span of control means fewer layers of management within the organization, and a relatively flatter organizational structure. This can lead to: i) Faster decision-making due to fewer levels of approvals required for a specific decision, which allows the company to respond more quickly to business issues. ii) Better and more frequent communication between higher-level managers and staffers, so the staff is more knowledgeable about company goals and the higher-level managers are more knowledgeable about daily operational issues faced by staff. iii) Reduced costs relative to taller organization, since there are fewer management layers needing compensation. * Lower average span of control means relatively more layers of management within the organization, and a relatively taller organizational structure. This can lead to: i) Fewer opportunities for promotions, since there are fewer management positions in the company. ii) The concern that manager input will be relatively harder for staffers to obtain, and managers will have less time to focus on specific decisions. Employees will need to be relatively more self-motivated and independent in their work style due to having less manager input. iii) Important strategic decisions by the company will have relatively less time spent on them, due to the reduced time available to focus on individual decisions. This can lead to less-than-optimal responses to business opportunities and threats.
- 11. 18-sep-14Aloke Raz 11 * Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identify their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives. Management by Objectives (MBO) was first outlined by Peter Drucker in 1954 in his book 'The Practice of Management'. In the 90s, Peter Drucker himself decreased the significance of this organization management method, when he said: "It's just another tool. It is not the great cure for management inefficiency... Management by Objectives works if you know the objectives, 90% of the time you don't."
- 12. 18-sep-14Aloke Raz 12 * Management by Exception (MBE) is a practice where only significant deviations from a budget or plan are brought to the attention of management. The idea behind it is that management's attention will be focused only on those areas in need of action. When they are notified of a variance, they can hone in on that specific issue and let staff handle everything else. If nothing is brought up, then management can assume everything is going according to plan. This model is similar to the vital signs monitoring systems in hospital critical care units. When one of the patient's vital signs goes outside the range programmed into the machine, an alarm sounds and staff runs to the rescue. If the machine is quiet, it's assumed that the patient is stable, and they will receive only regular staff attention.