MANAGERIAL FUNCTIONS & ORGANIZATIONAL FUNCTIONS
The process school of management has adopted functional approach in describing the managerial work and distinguishing it from non-managerial or operational work.
In fact many of the activities Mintzberg found are indicators of planning, organizing, staffing, leading and controlling. For instance the entrepreneurial role represents almost the whole field of planning. Interpersonal role represents leading etc.
The functional approach to management is a time-tested device and it also fits into the systems approach to management.
The major functions of management are:
1.Planning
2.Organizing
3.Leading & Motivating
4.Controlling etc.
Management functions should not be confused with organizational or enterprise functions. Thus, production, finance, marketing and personnel are the enterprise functions or functional areas of business.
In each area of enterprise functions there exists managerial functions like planning, leading, coordinating, controlling etc.
FLOW OF MANAGING PROCESS
The sequence of manager’s functions begins with planning.
1.Planning:
When management is reviewed as a process, planning is the first step taken by a manager. The work of a manager begins with the setting of objectives of the organization in each area of the business. This is done through planning. The alternatives to achieve the objectives are evaluated and the selected alternative becomes the plan of action.
A plan is a predetermined course of action to accomplish the set objectives. It is today’s projection for tomorrow’s activity. Once the plan is formulated, the manager has to indicate the objectives of the plan are formulated; the manager has to indicate the objectives of the plan and steps to be taken by his subordinates. Planning makes things happen that would not otherwise occur.
2.Organizing:
Managing a business is not just planning. It includes putting life into the plan by bringing together the executive personnel, workers, capital, machinery, materials, physical facilities and other things or services to execute the plans. When these resources are assembled the enterprise comes to life. Organizing involves determining activities needed by to fulfill the objectives, grouping these activities into various departments, and assigning such group of activities to managers. Planning decides what management wants to do, while organizing provides an effective machine for achieving the plan or objectives.
3.Staffing:
Staffing involves filling positions needed in the organization structure by appointing competent and qualified persons for the jobs. This needs planning and management of Human Resource. We have to provide suitable methods of remuneration and performance appraisal. Personnel manager does staffing. However, the top management is the ultimate authority responsible for all activities relating to staffing.
4.Leading:
The Function of leading has been termed Motivating. Directing, Guiding, Teaching, Stimulating and actuating. This managerial function is directly concerned with human factors of an organization. Manager by leadership and motivation has lead and guide all subordinates and get the work done through people.
Leading involves managers, Managing workers and the work through the means of motivation, proper leadership, effective communication as well as co-ordination. Manager must develop the ability to lead. He must be able to secure willing obedience from his subordinates without destroying their initiative and creativity. The term " Leading' instead of directing reflects the trend of modern management philosophy. Leading is the art of influencing people so that they work willingly and enthusiastically inn order to achieve group goals.
5.Motivating:
This managerial function is fully reflected when we define management as the art of getting things done willingly through and with other people. Management is interested in two primarily elements:
(1)Things i.e. material resources and
(2) Men and women i.e. Human Resources. A thing is subject to the laws of mechanics and it is susceptible to scientific or machine like treatment. But human beings cannot be subjected to scientific or machine like treatment. However, through the power of leadership and the science of co-operation we can evolve a suitable method of integrating the interests of individuals and the organization.
Motivating is inseparably interwined with leadership.
The power of management exists with or through people, but never over them, at least in a democratic society. Authority may be imposed from above but it must be supported, nourished and recognised from below, i.e. from the subordinates.
Then only the authority is meaningful and it can work smoothly. The managerial power has its source in the methods of leading, motivating, appraising, teaching, influencing, counseling, coaching, delegating and setting an example. So the manager plans, organizes, leads, and motivates the people working with him.
Motivating and leadership are the master-keys to successful management of any enterprise. They are also responsible to ensure productivity of human resources. Motivation can set into motion a person to carry out certain activity. Motivation assumes unique in modern management. Democratic leadership heavily relies on motivation of employees, through inspiration and financial incentives. Human values in industry have accorded special emphasis to this managerial function.
Effective communication and participation enhance the power of motivation. Feedback of information (upward communication) is necessary for effective motivation and leadership. When the job itself is meaningful, interesting and challenging it can provide maximum motivation power to the employee. Self-motivation from within is preferable for extra-ordinary performance. Satisfaction for accomplishing a challenging job becomes the self- administered reward.
6.Controlling:
Controlling is the last phase of the management process. Control is the process of measuring actual results of present performance, comparing those results to plans or some standard of performance, finding out the reason for deviations of actual from desired result and taking corrective action when necessary.
The corrective action may lead to a change in the method of implementation of the plan or even a change in the objectives. Usually our desired performance standard is the objectives, policies, programmes, procedures and budgets. A good plan assures effective control.
MANAGEMENT CYCLE
There are three important elements in the total management cycle or system:
(1) Planning
(2) Implementation (action) of the plan and
(3) Controlling.
The entire planning-action-control process in the management is repetitive.
The control process generates information for modification or even creation of new plans. Planning is followed by action, then by review and control in order to achieve the desired result. Complete operating cycle or planning control cycle includes:
(1) Objectives
(2) Planning
(3) Action
(4) Accomplishment
(5) Feedback of information and
(6) Mechanism of Control
Hood management adopts this cycle and assures not only survival but also promotes growth.
Manager must have a budget and live within the set budget. Budgeting itself involves planning. Budget is not only a plan but also a valuable means of control. Reporting is another means of control. Manager is accountable for quality and quantity of results. He has to maintain them. He must meet the deadline. This he does by setting standards of performance, measuring and comparing actual performance with the expected standards. Self-management assures self-discipline and self-control.
The enriched quality of mind enables best performance both for quality and quantity.
We have noted that controlling is the process of ensuring that actual activities comply with the planned activities. At present, organisations are emphasizing the Total Quality Management also to be incorporated in the controlling function. TQM focuses management on the continuous improvement of all operations, functions, and above all, processes of work. TQM will assure complete fulfillment of customer needs and desires. This is feasible when we have value oriented holistic management as per Indian insight in Management.
Controlling means checking that the plans are carried out as per expectations. Manager has to attend, if there are any deviations and these must be corrected or rectified in time. Thus controlling enables the realization of plans. There is no control without plans and plans without control means no achievements.
Plans are not self-achieving and control seeks to compel events to confirm to plans. Automation in plans is not feasible. Things are controlled by controlling what people do.
Control Mechanism: Manager must adopt the following steps in controlling:
(1) Identify potential problems
(2) Select mode of control
(3) Audit, measure and evaluate performance in terms of planning
(4) Spot significant deviations
(5) Ascertain causes of deviations
(6) Take remedial measures
(7) Ensure accomplishment of targets
7.Co-ordination
Each managerial function is an exercise of co-ordination. It is said that co-ordination is the essence of management. It is an integral part of leadership. Co-ordination is concerned with harmonious and unified action directed towards a common objective. It involves inter-relating various parts of the work or organization. It is not a separate activity but a condition that should diffuse itself through all phases of management process. Co-ordination is an orderly arrangement of group efforts to provide unity of action. It ensures that all group and persons work efficiently, economically and in harmony. Co-ordination can be accomplished automatically if we have sound organization structure. Co-ordination is essential in a large organization because we have:
(1)Multiple and complex activities.
(2)Complex and elaborate organization structure.
(3) Multiple levels of management due to limited span of control and (4) Acute division of work leading to increasing use of specialists.
A Manager must co-ordinate the work for which he is accountable by balancing, timing and integrating the work. Co-ordination means achieving harmony of individual effort with group effort toward the accomplished of group objectives. Such efforts of co-ordination are required at all levels of management. Board of directors, managing directors, heads of division and/or departments are the usual agencies of co-ordination to develop, an orderly and integrated pattern of group efforts in proper sequence and at proper time. Co-ordination requires effective channels of communications. Person-to-person communication is most effective for co-ordination.
8.Communication
In its broadest sense, communication is the transmission of meaning to others. It means transfer of information and understanding from person to person- a flow of information from the top to the bottom and from the bottom to the top as well as horizontal or sideways on the same level of organization. In formal communication we have dissemination of information primarily. In inter-personal communication between two or more persons we have transmission of information as well as flow of understanding based on two-way traffic of communication. Personal or face-to-face communication is the best form of communication. Managerial leadership depends upon upwards communication to the leader in the form of feedback so that he can understand the feelings, emotions, motives and problems of subordinates and his power will have support and acceptance from below.
Communication also leads to sharing of information, ideas and knowledge. Communication is the cement that makes organization. It enables a group to think together, act together. Society’s very existence is dependent upon communication. i.e. passing of information and understanding from one person to another.
An organization exists on the basis of good system of communication networks. A manager spends more than 80 per cent of his time daily on the communication in order to direct, motive, lead and co-ordinate management activities. When communication breaks down, organized activity also fails.
Communication system serves two-fold purposes:
(1)Can integrate and co-ordinate all managerial functions as well as all enterprise operations and areas.
(2)It links the organization with its environment and enables the enterprises to adapt with all variable forces of the environment. The organization is aware of customer needs, competition, marketing opportunities, threats and risks only through effective system of communication or information. Communication process must have union of values and skills. This will eliminate any tendency to manipulate the devices of communication.
The process school of management has adopted functional approach in describing the managerial work and distinguishing it from non-managerial or operational work.
In fact many of the activities Mintzberg found are indicators of planning, organizing, staffing, leading and controlling. For instance the entrepreneurial role represents almost the whole field of planning. Interpersonal role represents leading etc.
The functional approach to management is a time-tested device and it also fits into the systems approach to management.
The major functions of management are:
1.Planning
2.Organizing
3.Leading & Motivating
4.Controlling etc.
Management functions should not be confused with organizational or enterprise functions. Thus, production, finance, marketing and personnel are the enterprise functions or functional areas of business.
In each area of enterprise functions there exists managerial functions like planning, leading, coordinating, controlling etc.
FLOW OF MANAGING PROCESS
The sequence of manager’s functions begins with planning.
1.Planning:
When management is reviewed as a process, planning is the first step taken by a manager. The work of a manager begins with the setting of objectives of the organization in each area of the business. This is done through planning. The alternatives to achieve the objectives are evaluated and the selected alternative becomes the plan of action.
A plan is a predetermined course of action to accomplish the set objectives. It is today’s projection for tomorrow’s activity. Once the plan is formulated, the manager has to indicate the objectives of the plan are formulated; the manager has to indicate the objectives of the plan and steps to be taken by his subordinates. Planning makes things happen that would not otherwise occur.
2.Organizing:
Managing a business is not just planning. It includes putting life into the plan by bringing together the executive personnel, workers, capital, machinery, materials, physical facilities and other things or services to execute the plans. When these resources are assembled the enterprise comes to life. Organizing involves determining activities needed by to fulfill the objectives, grouping these activities into various departments, and assigning such group of activities to managers. Planning decides what management wants to do, while organizing provides an effective machine for achieving the plan or objectives.
3.Staffing:
Staffing involves filling positions needed in the organization structure by appointing competent and qualified persons for the jobs. This needs planning and management of Human Resource. We have to provide suitable methods of remuneration and performance appraisal. Personnel manager does staffing. However, the top management is the ultimate authority responsible for all activities relating to staffing.
4.Leading:
The Function of leading has been termed Motivating. Directing, Guiding, Teaching, Stimulating and actuating. This managerial function is directly concerned with human factors of an organization. Manager by leadership and motivation has lead and guide all subordinates and get the work done through people.
Leading involves managers, Managing workers and the work through the means of motivation, proper leadership, effective communication as well as co-ordination. Manager must develop the ability to lead. He must be able to secure willing obedience from his subordinates without destroying their initiative and creativity. The term " Leading' instead of directing reflects the trend of modern management philosophy. Leading is the art of influencing people so that they work willingly and enthusiastically inn order to achieve group goals.
5.Motivating:
This managerial function is fully reflected when we define management as the art of getting things done willingly through and with other people. Management is interested in two primarily elements:
(1)Things i.e. material resources and
(2) Men and women i.e. Human Resources. A thing is subject to the laws of mechanics and it is susceptible to scientific or machine like treatment. But human beings cannot be subjected to scientific or machine like treatment. However, through the power of leadership and the science of co-operation we can evolve a suitable method of integrating the interests of individuals and the organization.
Motivating is inseparably interwined with leadership.
The power of management exists with or through people, but never over them, at least in a democratic society. Authority may be imposed from above but it must be supported, nourished and recognised from below, i.e. from the subordinates.
Then only the authority is meaningful and it can work smoothly. The managerial power has its source in the methods of leading, motivating, appraising, teaching, influencing, counseling, coaching, delegating and setting an example. So the manager plans, organizes, leads, and motivates the people working with him.
Motivating and leadership are the master-keys to successful management of any enterprise. They are also responsible to ensure productivity of human resources. Motivation can set into motion a person to carry out certain activity. Motivation assumes unique in modern management. Democratic leadership heavily relies on motivation of employees, through inspiration and financial incentives. Human values in industry have accorded special emphasis to this managerial function.
Effective communication and participation enhance the power of motivation. Feedback of information (upward communication) is necessary for effective motivation and leadership. When the job itself is meaningful, interesting and challenging it can provide maximum motivation power to the employee. Self-motivation from within is preferable for extra-ordinary performance. Satisfaction for accomplishing a challenging job becomes the self- administered reward.
6.Controlling:
Controlling is the last phase of the management process. Control is the process of measuring actual results of present performance, comparing those results to plans or some standard of performance, finding out the reason for deviations of actual from desired result and taking corrective action when necessary.
The corrective action may lead to a change in the method of implementation of the plan or even a change in the objectives. Usually our desired performance standard is the objectives, policies, programmes, procedures and budgets. A good plan assures effective control.
MANAGEMENT CYCLE
There are three important elements in the total management cycle or system:
(1) Planning
(2) Implementation (action) of the plan and
(3) Controlling.
The entire planning-action-control process in the management is repetitive.
The control process generates information for modification or even creation of new plans. Planning is followed by action, then by review and control in order to achieve the desired result. Complete operating cycle or planning control cycle includes:
(1) Objectives
(2) Planning
(3) Action
(4) Accomplishment
(5) Feedback of information and
(6) Mechanism of Control
Hood management adopts this cycle and assures not only survival but also promotes growth.
Manager must have a budget and live within the set budget. Budgeting itself involves planning. Budget is not only a plan but also a valuable means of control. Reporting is another means of control. Manager is accountable for quality and quantity of results. He has to maintain them. He must meet the deadline. This he does by setting standards of performance, measuring and comparing actual performance with the expected standards. Self-management assures self-discipline and self-control.
The enriched quality of mind enables best performance both for quality and quantity.
We have noted that controlling is the process of ensuring that actual activities comply with the planned activities. At present, organisations are emphasizing the Total Quality Management also to be incorporated in the controlling function. TQM focuses management on the continuous improvement of all operations, functions, and above all, processes of work. TQM will assure complete fulfillment of customer needs and desires. This is feasible when we have value oriented holistic management as per Indian insight in Management.
Controlling means checking that the plans are carried out as per expectations. Manager has to attend, if there are any deviations and these must be corrected or rectified in time. Thus controlling enables the realization of plans. There is no control without plans and plans without control means no achievements.
Plans are not self-achieving and control seeks to compel events to confirm to plans. Automation in plans is not feasible. Things are controlled by controlling what people do.
Control Mechanism: Manager must adopt the following steps in controlling:
(1) Identify potential problems
(2) Select mode of control
(3) Audit, measure and evaluate performance in terms of planning
(4) Spot significant deviations
(5) Ascertain causes of deviations
(6) Take remedial measures
(7) Ensure accomplishment of targets
7.Co-ordination
Each managerial function is an exercise of co-ordination. It is said that co-ordination is the essence of management. It is an integral part of leadership. Co-ordination is concerned with harmonious and unified action directed towards a common objective. It involves inter-relating various parts of the work or organization. It is not a separate activity but a condition that should diffuse itself through all phases of management process. Co-ordination is an orderly arrangement of group efforts to provide unity of action. It ensures that all group and persons work efficiently, economically and in harmony. Co-ordination can be accomplished automatically if we have sound organization structure. Co-ordination is essential in a large organization because we have:
(1)Multiple and complex activities.
(2)Complex and elaborate organization structure.
(3) Multiple levels of management due to limited span of control and (4) Acute division of work leading to increasing use of specialists.
A Manager must co-ordinate the work for which he is accountable by balancing, timing and integrating the work. Co-ordination means achieving harmony of individual effort with group effort toward the accomplished of group objectives. Such efforts of co-ordination are required at all levels of management. Board of directors, managing directors, heads of division and/or departments are the usual agencies of co-ordination to develop, an orderly and integrated pattern of group efforts in proper sequence and at proper time. Co-ordination requires effective channels of communications. Person-to-person communication is most effective for co-ordination.
8.Communication
In its broadest sense, communication is the transmission of meaning to others. It means transfer of information and understanding from person to person- a flow of information from the top to the bottom and from the bottom to the top as well as horizontal or sideways on the same level of organization. In formal communication we have dissemination of information primarily. In inter-personal communication between two or more persons we have transmission of information as well as flow of understanding based on two-way traffic of communication. Personal or face-to-face communication is the best form of communication. Managerial leadership depends upon upwards communication to the leader in the form of feedback so that he can understand the feelings, emotions, motives and problems of subordinates and his power will have support and acceptance from below.
Communication also leads to sharing of information, ideas and knowledge. Communication is the cement that makes organization. It enables a group to think together, act together. Society’s very existence is dependent upon communication. i.e. passing of information and understanding from one person to another.
An organization exists on the basis of good system of communication networks. A manager spends more than 80 per cent of his time daily on the communication in order to direct, motive, lead and co-ordinate management activities. When communication breaks down, organized activity also fails.
Communication system serves two-fold purposes:
(1)Can integrate and co-ordinate all managerial functions as well as all enterprise operations and areas.
(2)It links the organization with its environment and enables the enterprises to adapt with all variable forces of the environment. The organization is aware of customer needs, competition, marketing opportunities, threats and risks only through effective system of communication or information. Communication process must have union of values and skills. This will eliminate any tendency to manipulate the devices of communication.