FUNCTIONS OFMANAGEMENT

FUNCTION OF MANGEMENTA person who holds a management position inside an organization is

required to think strategically and conceptually in order to achieve organizational goals.

Management has to carry out different functions in order to accomplish these goals`

The major function that a manager completes can be categorized into five different functions namely planning , organizing , staffing , leading , and controlling.

PLANNINGDeciding in advance :

What to doHow to doWhen to doWho is going to do it

Bridges a gap between where we are today and where we want to reach.Sets the goal of an organization.

PLANNINGIt 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 is an exercise in problem solving & decision making. Planning is determination of courses of action to achieve desired goals.

Thus, planning is a systematic thinking about ways & means for accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties

ORGANIZING 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 Fayor, “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel’s”. To organize a business involves determining & providing human and non-human resources to the organizational structure.

ORGANIZING Establishing the framework of working:

How many units or sub-units or departments are needed. How many posts or designations are needed in each department. How to distribute authority and responsibility among employees

Once these decisions are taken, organizational structure gets set up.

ORGANIZINGOrganizing as a process involves:

Identification of activities. Classification of grouping of activities. Assignment of duties. Delegation of authority and creation of responsibility. Coordinating authority and responsibility relationships.

STAFFING• Recruiting, selecting, appointing the employees, assigning duties,

maintaining cordial relationship and taking care of grievances of employees.• Training and Development of employees, deciding their

remuneration, promotion and increments.• Evaluating their performance.

STAFFINGIt 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 o staffing is to put right man on right job i.e. square pegs in square holes and round pegs in round holes.

STAFFINGStaffing involves:

Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place).

Recruitment, selection & placement. Training & development. Remuneration. Promotions & transfer. Performance appraisal.

DIRECTINGGiving direction or instruction to employees to get the job done.Leadership qualities are required.Motivating employees by providing monetory and non-monetory

incentives.Communicating with them at regular intervals.

DIRECTINGIt is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals.

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.

Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding

CONTROLLINGMatching actual performance with the planed goal.

If problem, tries to find out the reasons of deviation.

Suggesting corrective measures come on the path of plan

CONTROLLINGIt 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

actually occur. According to Theo Haimann, “Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation”.

CONTROLLINGTherefore controlling has following steps:

Establishment of standard performance. Measurement of actual performance. Comparison of actual performance with the standards and finding

out deviation if any. Corrective action.

Types of organizing structure To achieve the goals, organization has to take necessary actions which can convert goals into result. Necessary action includes assignment of authority and responsibilities, groping of people and allocation of resources. This process is termed as organizing.

1) Based on relationship, organization classified into two types:Formal organizationInformal organization

1.Formal organizationThis is one which refers to a structure of well-defined jobs each

person has authority and responsibilities. This kind of organization is an arbitrary set up in which each person is

responsible for his performance. It is based on the rule ‘chain of command’.

2. Informal organizationA network developed based on personal and social relationship between

the employees within the formal set up is called informal organization. Informal organization develop relationships which are developed on likes,

dislikes, feelings.It emerges from the formal organization and it is not based on any rules

and regulation.

2) Based on hierarchy structure, organization classified into three types: Line organizationStaff organization Matrix organization(Line and Staff organization)

• A hierarchy organization is an structure where every entities in organization is subordinate to a single other entity.

1.Line organization • In line organization, the authority flows from top to bottom. • So this organization is also known as scalar organization which means

scalar chain of command is a part and parcel of administrative organization. • The line of command flows on an even basis without any gaps in

communication and co-ordination.

2.Staff organizationIn this type, top positions are acquired by the person having specialities

in performing a particular function throughout the enterprise. For example, production manager has to deal with only production and

related issues.

3. Line and Staff organization

Line and staff organization is combination of line and staff organization. In this type, specialized and supportive activities are attached to a line command by appointing the staff supervisors and staff specialist .

The power command always remain with the line executives and staff supervisors guide, advice and counsel the line executives.

As shown in diagram, the highest authority is president who controls all the functional heads.

Separate doctor of products is appointed who look after the products through line authority.

All functional heads carry out their functions for each types of products.

SPAN OF CONTROL

What is span of control?• span of control is a span of supervision which shows the

number of can be effectively handled and controlled by a single manager.

• There are two types of span: 1.Narrow and 2.wide.

Narrow span•According to narrow span, the manager supervises

a selected number of employees at one time.• it is the difficult to get effective co-ordination. •Also, due to this kind of span of control,

number of managers are increases and hence the overall costing of the company increases.

Wide span

• According to wide span, the manager supervises and control effectively a large group of persons at one time.• it is the easy to get effective co-ordination ,better

communication.• Also, due to this kind of span of control, number of

managers required are few, so overall cost is law.

Factors affecting the span of control

1. Managerial abilities• When managers are capable, qualified and experienced,

wide span control is always helpful to control more number of employees.

2.Competence of subordinates

• Where the subordinates are capable and competent and understanding levels are proper, the subordinates tend to very frequently visit the superiors for solving their problems. In such cases, the manager can handle large number of employees. Hence, wide span is suitable.

3. Nature of work

• If the work is of repetitive nature, wide span of supervision is more helpful. On the other hand, if work requires mental skill or craftsmanship, tight control and supervision is required in which narrow span is more helpful.

4. Delegation of authority

• When the work is delegated to lower levels in an efficient and proper way, confusions are less and congeniality of the environment can be maintained. In such cases wide span of control is suitable and the supervisors can manage and control large number of sub-ordinates at one time.

5. Economic Consideration

• Economic considerations also determines the span of control. As we know that small span of control requires more economic resources and vice versa. So, when there is problem of economic conditions, wide span of control is adopted. Economic Consideration

DEPARTMENTATIZATION

DEPARTMENTALIZATION

Once the jobs are allocated to individual member of the organization, then it is very important to group them in logical way. It is very essential process of creating department in the organization. The process of creating department is known as DEPARTMENTALIZATION.

Departmentalization is done by two basis;

1. On the basis of Function

2. On the basis of Divisions

Functional departmentalization

According to functions to be carried out, functional activities are developed and based on the functional departmentalization is carried out.

Mostly in all organization functional departmentalization is adopted.

Division Departmentalization

Organization can structure itself into departments in the following ways:

1.Functional Departmentalization

2.Process Departmentalization

3.Product Departmentalization

4.Geographic Departmentalization

5.Customer Departmentalization

6.Time Departmentalization

Functional departmentalizationIn functional departmentalization, department are segregated on The basis of functional performed. For example production ,finance ,marketing, human and resource etc. major functions of the organization and departments are formed accordingly. Hence all activities, Which are directly or indirectly connected with respective functional are grouped together to make a respective department.

Process departmentalizationIn process departmentalization, departments are segregated on the basis of their role in a production process. For example, process departmentalization in a textile mill have spinning department ,weaving department, dyeing department ,printing department ,etc. Here ,all activities ,which are directly or indirectly related with spinning are grouped together to make a spinning department

This departmentalization delivers high level of efficient work but on the other hand this type on departmentalization is not possible to adopt for all type of product

Product departmentalization In product departmentalization, department are segregated on the basis of type of product producer by the company. Here every individual department is responsible for producing and selling the type of product assigned to them. In automobile manufacturing company, department like a two-wheeler department , three-wheeler department , four-wheeler department ,heavy motors department ,etc. exist which manufacture vehicles such as motorcycle (bike),auto-rickshaws, car, buses and trucks, receptivity. Here inside an automobile Company all activities which are directly or indirectly related to car manufacturing are grouped together and assigned to four-wheeler or department.

Geographic Departmentalization In Geographic Departmentalization, separate department are made on the basis of company’s location through branches or offices established at different zone or place in the area. For example, a large company may globally through its different zonal departments established on a country basis. Each part or area have different zonal departments established on a country basis. Each part or area have different requirement or interests. Marketing a product in western USA may have different requirement than marketing the same product in southeast Asia. Market are is broken up into sales territories like northern, southern, west, east .the salesman appointed for each territory report to their regional or territorial manager. These manager again report to the sales manager who manager who is head of the sales department.

Customer DepartmentalizationIn Customer Departmentalization, department are segregated on the basis of types or group of customers to be handle or dealt with. For example, customer can be classified under type of such as ,international or foreign customers, island or domestic customers, bulk purchasing or wholesales customers, retail customer, etc .Each group of customer’s need different tactics and strategies to handle them better .hence an appropriate customer departmentalization serves this purpose.

Time DepartmentalizationIn Time Departmentalization, department are segregated on the basis of shift of work. For example, departments can be made based on the night shift ,morning or regular shift, evening shift, etc. this method of Departmentalization is generally seen among those organizations who render 24-hours emergency and/or essential public services for 365 days a year .Example of such organizations include, hospitals, hotel, airport, police, security, and so on.