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FUNCTION OF MANAGEMENT (I)Defining Management What is Management? Management Levels Management...
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Transcript of FUNCTION OF MANAGEMENT (I)Defining Management What is Management? Management Levels Management...
FUNCTION OF MANAGEMENTFUNCTION OF MANAGEMENT
(I) Defining Management(I) Defining Management• What is Management?
• Management Levels
• Management Skills
(II) Functions of Management(II) Functions of Management
Planning Organizing Staffing Co-ordinating
Leading Controlling
OUTLINEOUTLINE
(I) Defining Management(I) Defining Management
A) What is Management?A) What is Management?
Effectiveness: doing the right things under the right circumstances
• The process of getting activities done efficiently and effectively with and through other people
Process: refers to the primary activities engaged in by managers
planning, organizing, staffing, co-ordinating, leading, controlling & decision making
Efficiency: the relationship between inputs and outputs (minimize resources)
B) Management LevelB) Management Level
Top Management
Middle Management
First-line Management
• Top Management: making decision and setting policies that affect all aspects of the organization
• Middle management: formulate strategies, communicate
• First-line management: monitor front-line operations
C) Management SkillsC) Management Skills
• Technical skills: knowledge of and proficiency in a certain specialized field
Top Management
Middle Management
First-line Management
Conceptual skills
Human skills
Technical skills
• Conceptual skills: ability to think and to conceptualize about abstract situation
• Human relation skills: ability to work well with other people
(II) Functions of Management(II) Functions of Management
Planning Organizing Staffing Co-ordinating Leading ControllingDecision-
making
• “SMART” objectives: Specific, Measurable, Achievable, Realistic & Time-based
A) PlanningA) Planning
• the process of defining an organization’s objectives and how it will achieve them
A) PlanningA) Planning
1. Purposes of Planning1. Purposes of Planning
• Clarify the purpose of the organization
• Give direction to the organization
• Establish coordinated effort
• Reduce uncertainty by anticipating changes
• Reduce overlapping and wasteful activities
• Clarify the consequences of action
A) PlanningA) Planning
2. Types of Plan2. Types of Plan
BREADTH• Strategic plan: an overall plan that apply to the entire organization and covers a long period of time•Tactical plan: a more specific and detailed plan made by middle managers• Operational plan: a detailed plan that specify how the overall objectives are to be achieved
TYPES OF PLANSBREADTH TIME FRAME SPECIFICITY FREQUENCY OF USE
StrategicTactical
Operational
Long termShort term
DirectionalSpecific
Single-useStanding
TIME FRAME
· Long term plan: plan that extend beyond five years· Short term plan: plan that cover less than one year
TYPES OF PLANSBREADTH TIME FRAME SPECIFICITY FREQUENCY OF USE
StrategicTactical
Operational
Long termShort term
DirectionalSpecific
Single-useStanding
A) PlanningA) Planning
2. Types of Plan2. Types of Plan
TYPES OF PLANSBREADTH TIME FRAME SPECIFICITY FREQUENCY OF USE
StrategicTactical
Operational
Long termShort term
DirectionalSpecific
Single-useStanding
A) PlanningA) Planning
2. Types of Plan2. Types of Plan
SPECIFICITY
·Directional plan: flexible plan that set out general guidelines·Specific plan: plan that are clearly defined and leave no room for interpretation
TYPES OF PLANSBREADTH TIME FRAME SPECIFICITY FREQUENCY OF USE
StrategicTactical
Operational
Long termShort term
DirectionalSpecific
Single-useStanding
A) PlanningA) Planning
2. Types of Plan2. Types of Plan
FREQUENCY OF USE·Single-use plan: · a one-time plan · specifically designed to meet the needs of a unique situation · in response to non-programmed decisionsStanding plan: ·ongoing plan ·created in response to programmed decisions
3. Steps in the planning process3. Steps in the planning process
Forecast the future environment
Establish goals & objectives
Select the best alternatives
Design alternative ways of achieving objectives
Implement & monitor the plan, making adjustment when necessary
MISSION What is our fundamental reason for being?
GOAL What do we want to achieve?
STRATEGYWhat are the major means by which we hope to achieve our goals?
OBJECTIVEHow are we going to achieve our goals specifically?
4. Some Terminologies4. Some Terminologies
B) Organizing, Staffing & Co-ordinatingB) Organizing, Staffing & Co-ordinating
Planning Organizing Staffing Co-ordinating
Leading ControllingDecision-
making
• Organizing: the process of breaking down the work into smaller pieces and designing a structure to facilitate the completion of work
• Staffing: the personnel management process in which qualified candidates are recruited to fill the position in organizations
• Coordinating: the process of integrating the work of separate department to achieve unity of effort
C) LeadingC) Leading
Planning Organizing Staffing Co-ordinating Leading ControllingDecision-
making
The process of influencing subordinates to behave in a way that can contribute to the accomplishment of the organizational objectives
• task-oriented: plan and define work; monitor results; assign responsibilities• employee-oriented: respect; warmth; mutual trust; sensitivity
Leadership
C) LeadingC) Leading
3 Types of Leader 3 Types of Leader
• Autocratic leader: makes all the decision and does not concern about the subordinates (task-oriented)
• Democratic leader: makes decisions with subordinates or based on their suggestions (employee-oriented)
• Free-rein leader: allows subordinates to have full autonomy in decision-making without giving any directions to them
Autocratic Democratic Free-reinDecision-maker Superior Superior and
subordinatesSubordinates
Number of people to make decision Few Many ManyDegree of control High Moderate LittleAttitude towards subordinates’suggestions and ideas
Ignore Appreciate Highlyappreciate
Amount of communication Little Great LittleFlow of communication Top to bottom Upward &
downwardMulti-
directionalMorale of subordinates Poor High High
C) LeadingC) Leading
Comparison of Autocratic, Democratic and Free-rein
Leaders
• The process of monitoring activities to ensure they are being accomplished as planned and of correcting any significant deviations
D) ControlD) Control
Planning Organizing Staffing Co-ordinating Leading ControllingDecision-
making
• Importance of Control
to make sure organizational goals are met
To reduce the reluctance to delegate
To provide information and feedback on the performance of subordinates
Compare actual
performance with standard
Objectives Standard Measure actual
performance
Do nothingIs standard
being attained?
Is variance acceptable?
Is standard acceptable?
Review standard
Do nothing
Identify cause of variation
Correct performance
Yes
Yes
Yes
No
No
No
Control Process
• Qualities of an Effective Control System
Accuracy
Timeliness
Economy
Flexibility
Understandability
Reasonable criteria
Strategic placement
Multiple criteria
Corrective action
Emphasis on the exception
E) Decision-makingE) Decision-making
typically described as “choosing among alternatives” a comprehensive view: as a set of 8 steps that include:
Identifying a problem
Identifying decision criteria
Allocating weights of
criteria
Developing alternatives
Analyzing alternatives
Selecting an alternatives
Implementing the alternative
Evaluating the decision
effectiveness
E) Decision-makingE) Decision-making
1. Types of Decision• Programmed/routine decision: a repetitive
decision that can be handled by a routine approach
• Non-programmed/ non-routine decision: an unique decision that requires a custom-made solution
Programmed decisions
Non-programmed decisions
Ill-illustrated
Well-illustrated
Top
Lower
Level in organization
Type of problem
1. Factors affecting the decision-making process
E) Decision-makingE) Decision-making
Types of decision
Management style (autocratic, democratic or free-rein)
Availability of resources
Time factor