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Transcript of Functions of Mngt
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FUNCTIONS OF MANAGEMENT
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POSDCORBPLANNINGORGANIZING
STAFFING
DIRECTING
COORDINATING
REPORTING
BUDGETING
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STRENGTHS OF POSDCORB
GOOD STARTING POINT TO ANALYZE
THE MANAGEMENT FUNCTIONS IN
STRUCTURAL WAY.
HELP THE STRUCTURE TO ANALYZETHE MANAGEMENT ACTIVITIES.
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DRAWBACKS
MARK MOORE (IN 1995):-
”the most important job for a manager isunderstanding and shaping the
environment”.Dr. LEWIS MERIAM:-
Emphasis on subject matter
DOES NOT EMPHASIS ON MANAGERSACHIEVE.
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VARIOUS TYPES OF PLANNING
Business Plan Event Planning
Financial Plan
Marketing Plan
Strategic Planning
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MARKETING PLAN INCLUDES
Who are the customers?What are their key characteristics?
What are their needs and wants?
What do they expect the `product' to do?
What are their special requirements and
perceptions?
What do they think of the organization and
its products or services?
What are their buying intentions?
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Difference between Strategic
and Business Plan• A strategic plan is a document that is primarily intended to be used
internally by the organization, to guide itself. In some cases, in fact, in
many cases the strategic plan is never seen by anyone outside the
organization. It often contains information about organizational strategy
that a company might not want in the hands of its competitors.
• A business plan, on the other hand, is usually meant to be used to showothers. For example, if a company wishes to attract investors, the
investors will want to have certain information about the company before
they commit to investing. They certainly will want present financial
information, and they will want to know where the company expects to
get revenues in the future, its market, and so on. A bank looking atgiving a loan to an organization will want similar information.
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Business Plan
• A business plan is a formal statement of a set of business goals,
the reasons why they are believed attainable, and the plan for
reaching those goals. It may also contain background information
about the organization or team attempting to reach those goals.
•Business plans may also target changes in perception and brandingby the customer, client, tax-payer, or larger community. When the
existing business is to assume a major change or when planning a
new venture - a 3 to 5 year business plan is essential
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STRATEGIC PLANNING
Strategic planning determines where an
organization is going over the next year
or more.How it's going to get there
The focus of a strategic plan is usually
on the entire organization, While the focus of a business plan is
usually on a particular product, service
or program
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Event Planning
• Event planning is the process of planning a festival, ceremony,
competition, party, or convention. Event planning includes budgeting
, establishing dates and alternate dates, selecting and reserving the
event site, acquiring permits, and coordinating transportation and
parking. Event planning also includes some or all of the following,
depending on the event: developing a theme or motif for the event,
arranging for speakers and alternate speakers, coordinating location
support (such as electricity and other utilities), arranging decor,
tables, chairs, tents, event support and security, catering, police,
fire, portable toilets, parking, signage, emergency plans, health care
professionals, and cleanup.
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Financial Planning
• The process of determining a person's or firm's financial needs or
goals for the future and the means to achieve them. Financial
planning involves deciding what investments and activities would be
most appropriate under both personal and broader economic
circumstances. All things being equal, short-term financial planning
involves less uncertainty than long-term financial planning because,
generally speaking, market trends are more easily predictable in the
short term. Likewise, short-term financial plans are more easily
amendable in case something goes wrong as a result of the short
time frame.
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ORGANIZING
Organizing is establishing the internalorganizational structure of the business.
The focus is on division, coordination,and control of tasks and the flow of
information within the organization.
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ORGANIZATIONAL STRUCTURE
Division of labor
Delegation of authority Departmentation
Span of control
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DELEGATION OF AUTHORITY
Exception principle
Scalar chain of command
Decentralization
Parity principle
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Parity principle
• Principle of Parity of Authority and Responsibility- According to
this principle, the manager should keep a balance between authority
and responsibility. Both of them should go hand in hand. According
to this principle, if a subordinate is given a responsibility to perform
a task, then at the same time he should be given enough
independence and power to carry out that task effectively. This
principle also does not provide excessive authority to the
subordinate which at times can be misused by him. The authority
should be given in such a way which matches the task given to him.
Therefore, there should be no degree of disparity between the two.
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Exception principle
• The exception principle (also known as management by
exception) is closely related to parity principle. The
exception principle states that managers should
concentrate their efforts on matters that deviate
significantly frm the normal and let subordinates handleroutine matters. The idea here is that managers should
concentrate on those matters that require their abilities
and not become bogged down with duties that their
subordinates should be doing..
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Scalar chain of command
• In business, the path down which orders and decisions are
communicated, from the board of directors of a company at
the top of the hierarchy down to shop-floor workers at the
bottom. The shorter the chain of command, the faster
communication is likely to be. There is also less likely to bemisinterpretation of communication. A short chain of
command also tends to motivate workers because they are
able to interact with those in positions of authority and see
their decisions being implemented by workers below them.
The chain of command is usually depicted on anorganization chart, which identifies the superior and
subordinate relationships in the organizational structure.
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Decentralization
• Decentralization also called departmentalization is the
policy of delegating decision-making authority down to
the lower levels in an organization, relatively away from
and lower in a central authority. A decentralized
organization shows fewer tiers in the organizationalstructure, wider span of control, and a bottom-to-top flow
of decision-making and flow of ideas.
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DEPARTMENTATION
Departmentation is the grouping of jobsunder the authority of a single manager,
According to some rational basis, for the
purposes of planning, coordination andcontrol.
The number of departments in an
organization depends on the number of different jobs, i.e., the size and
complexity of the business.
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SPAN OF CONTROL
The span of control is the number of
people a manager supervises.
The typical guideline is a span of controlof no more than 5-6 people.
A larger span of control is possible
depending on the complexity, variety andproximity of jobs.
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STAFFING• Staffing manages various positions created by
organizing.
– Staffing prepares inventory of manpower and identify
the gap between manpower available and manpower
required.
• Organizing and staffing are continuous jobs.
– As an organization grows new positions need to becreated and filled. Staffing cannot be done once for
all,
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STAFFING
• The organizing function of management
defines each position or category of
positions in the organization. Staffingfollows with the filling and keeping filled all
positions in the organization.
• Staffing become more important as the
complexity and overall level of performance
of a business increases.
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STAFFING INCLUDES
• Recruitment – Getting application for the job.
• Selection
– Selection of the best candidate among the pool.• Transfer and promotion
– Transfer generally refers to change in position
without a change in status or pay. Promotion rather implies improvement of both or one of them.
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STAFFING
• Training
– The process of providing new employees with
information they need to do their jobs
satisfactorily
• Appraisal
– Evaluating an employee’s current or pastperformance in relation to the performance
standards for the position.
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Steps in the Recruitment and
Selection (staffing) Process
FIGURE 10–2
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Job Analysis
• Job Analysis
– The procedure through which managers
determine the duties of the job, and the kinds
of people (in terms of skills and experience)that should be hired for the job
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Job Description• Developed from information collected in the
job analysis
• Most contain sections that cover:
– Job identification
– Job summary
– Responsibilities and duties
– Authority of incumbent
– Standards of performance
– Working conditions
– Job specification (the human requirements of the
job)
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Job Specification
• A list of the skills and aptitudes sought in
people hired for the job
• Identification of these skills and aptitudes
are from information collected in the job
analysis
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Personnel Planning
• Personnel Planning
– The process of determining the organization’s
future personnel needs, as well as the
methods to be used to fill those needs – Company records showing present
performance and promotability of inside
candidates for the most important positions
Ex. Fast track promotion opportunity for
good condidates
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Employee Recruiting
• Recruiting
– Attracting a pool of viable job applicants.
Sources of Recruits
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Sources of Recruits• Current employees
• Advertising• The Internet
• Employment agencies
– Public
– Private
• Contingent workers and
temporary help agencies
• Executive recruiters• Employee referrals
• Walk-ins
• University and
College recruiting
• Recruiting for a
diverse workforce
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Testing for Employee Selection
• Types of Tests
– Intelligence
– Mechanical comprehension
– Personality and interests – Ability/achievement (current capabilities/knowledge)
– Aptitude (performance potential)
• Assessment centres• Video assessment
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Conducting Effective Interviews
• Plan the interview
• Structure the interview
• Establish rapport• Ask questions
• Delay your decision
• Close the interview
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Orienting Employees
• Orientation
– Providing new employees with basic
information about the employer, such as
vacation policies, work rules. – The Mentorship Programme
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Training Employees
• Training Program
– The process of providing new employees with
information they need to do their jobs satisfactorily.
• Training Program Steps – Needs analysis
– Instructional design
– Validation
– Implementation
– Evaluation and follow-up
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Employee Appraisal
• Performance Appraisal
– Evaluating an employee’s current or past
performance in relation to the performance
standards for the position.• Typical Performance Appraisal Method
– A graphic rating scale that lists several job
characteristics (like quality of work) and provides
a rating scale (from outstanding to
unsatisfactory), along with short definitions of
each rating.
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Employee Appraisal Methods
• Critical Incidents Method – Compiling brief examples of good/bad performance,
and using them to support appraisal and development
needs.
• Forced Distribution Method
– Placing predetermined percentages of ratees into
performance categories.
• 360-degree Feedback – Peers, supervisors, subordinates,and customers
complete appraisal surveys, which are compiled into
individualized reports for the ratee.
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STAFFING
• Staffing function is created by some
experts by splitting the social aspects of
the organizing.
• Staffing means “right person to the right
job”.
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The continuous task of making decisions and
embodying them in specific and general
orders and instructions and serving as the
leader of the enterprise. Directing includes:
Communicating
Leading Motivating
Directing
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COMMUNICATING What is Communication?
The transfer and understanding of meaningIf no information has been conveyed, communication has not
occurred
everything that a manager does involves communicating
Effective communication does not equal agreement
Ineffective communication is the basis for many managerialproblems
Types of Communication-
Interpersonal Communication - occurs between people
Organizational Communication - all the patterns, networks,
and systems of communication in an organization
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Communication
Communication Symbols Oral communication
Written communication
Non verbal and pictorial communication
Communication Channels Formal channel
Informal channel
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LEADING
D fi iti
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Definitions
Leader someone who can influence others and who has managerial
authority all managers should ideally be leaders not all leaders have the ability to be an effective manager
Leadership A traditional definition of leadership:Leadership is an interpersonal influence directed
toward the achievement of a goal or goals.
LEADERSHIP is a dynamic relationship based on mutual influence and common purpose between leaders andcollaborators in which both are moved to higher levels of motivation and moral development as they affect real, intendedchange. (Kevin Freiberg and Jackie Freiberg
L d hi
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A Leader can be a manager, but a manager isnot necessarily a leader.
Employees willingly follow leaders because they
want to, not because they have to.
Leadership versus
Management
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Trait Theories
Behavioral Theories -- Theory X and Theory Y
Contingency Theories -- Fiedler's Contingency Model
LEADING
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Trait Theories of Leadingleader traits - characteristics that might be used
to differentiate leaders from nonleadersmight be used as a basis for selecting the “right”
people to assume formal leadership positions
proved to be impossible to identify a set of traitsthat would always differentiate leaders fromnonleaders
explanations based solely on traits ignored theinteractions of leaders, their groups, and situationalfactors
LEADING
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Behavioral Theories of Leading knowing what effective leaders do would provide the basis for
training leaders
Theory X and Theory Y
Douglas McGregor described Theory X and Theory Y as ,The Human Side of Enterprise .
Theory X managers believe that employees are motivated
mainly by money, are lazy, uncooperative, and have poor
work habits. Theory Y managers believe that subordinates work hard, are
cooperative, and have positive attitudes.
LEADING
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Theory Z
• For Ouchi, Theory Z focused on increasing employee loyalty to the
company by providing a job for life with a strong focus on the well-
being of the employee, both on and off the job. According to Ouchi,
Theory Z management tends to promote stable employment, high
productivity, and high employee morale and satisfaction.
• It is participative, consensual in nature
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Contingency Theories of Leading leader effectiveness depends on the situationmust isolate situational conditions or contingencies
Fiedler Model
effective group performance depends on matching the
leader’s style and the degree to which the situation permitsthe leader to control and influence
Least-Preferred Coworker (LPC) - measures the leader’s style of interacting with subordinates high LPC - least preferred coworker described in relatively favorable
terms
leader is relationship oriented low LPC - least preferred coworker described in relatively unfavorable
terms leader is task oriented
LEADING
ypes o ea ers p
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ypes o ea ers pstyles
The bureaucratic leader by Weber in 1905
The charismatic leader by Weber in 1905 The autocratic leader by Lewin, Lippitt, & White in 1939 The democratic leader by Lewin, Lippitt, & White, 1939 The laissez-faire ("let do") leader by Lewin, Lippitt, &
White, 1939 The people-oriented leader by Fiedler, 1967 The task-oriented leader by Fiedler, 1967 The servant leader by Greenleaf, 1977
The transaction leader by Burns, 1978 The transformation leader by Burns, 1978 The environment leader by Carmazzi, 2005
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MOTIVATING What is Motivation?
the willingness to exert high levels of effort to reach organizational
goals, conditioned by the effort’s ability to satisfy some individual need
effort - a measure of intensity or drive
goals - effort should be directed toward, and consistent with,
organizational goals
needs - motivation is a need-satisfying process
Theories of Motivation
Many methods of employee motivation have been developed. The study
of work motivation has focused on the motivator (supervisor) as well as
the motivatee (employee). Motivation theories are important to
supervisors attempting to be effective leaders. Two primary approachesto motivation are content and process.
Maslow's Hierarchy of
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Maslow s Hierarchy of
Needs
Differentiating between Directing and
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Differentiating between Directing and
Managing
The Key to Direction Giving is to Distinguish between‘Managing’ and ‘Direction-giving’
Managing is about dealing, hands-on, with the design,implementation and maintenance of prudent control
systems Direction - giving is about showing the way ahead
and
leading
Both are necessary for healthy organizations but they require very different attitudes, knowledge and skills especially in approaches to
thinking
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Control is one of the managerial functions like
planning , organizing , staffing and directing . It is an
important function because it helps to check the errorsand to take the corrective action so that deviation from
standards are minimized and stated goals of the
organization are achieved in desired manner
CONTROLLINGCONTROLLING
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Organizational Control
Objectives
Controls make organizations effective. Controls provide feedback on project
status. Controls aid in decision making.
The Organizational Control
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The Organizational Control
Process
Establish standards to measure performance
Measure actual performance.
Compare performance with the standards.
Take corrective actions.
Types of Organizational
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Types of Organizational
Controls
Feedforward controls
Concurrent controls
Feedback controls
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Effective Organizational Control Systems
A focus on critical points
Acceptance by employees.
Availability of information when needed.
Economic feasibility
Accuracy.
Comprehensibility.
Integration into established process.
Organizational Control
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Organizational Control
Techniques • Financial controls
Financial statements Income statement Financial audits Liquidity ratio. Profitability ratios Debt ratios Activity ratio
• Budget controls
• Some budget development methods are as follows:
Top-down budgeting. Bottom-up budgeting.
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Marketing controls
Market research
Test marketing
Marketing statistics
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Human resource controls
• Human resource controls help managers
regulate the quality of newly hired
personnel, as well as monitor current
employees' developments and dailyperformances.
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Conclusion Management functions are Universal. Management functions have Iterative
quality.
Management process can be seen as a
circular, continuous movement. No functions is more important but the mix
of the functions varies from task to task andfrom level to level of management.
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