MANAGEMENT, and ITS

FUNCTION
 Management

• Management is essential for organized life and

necessary to run all types of management. Good
management is the backbone of successful
organizations. Managing life means getting
things done to achieve life’s objectives and
managing an organization means getting things
done with and through other people to achieve
its objectives.
 Management is the set of principles relating to the
functions of planning, organizing, directing and
controlling, and the application of these principles in
harnessing physical, financial, human and informational
resources efficiently and effectively to achieve
organizational goals.
Management as defined...

• According to F.W. Taylor, ‘Management is an art of knowing what

to do, when to do and see that it is done in the best and
cheapest way‘.
• According to Harold Koontz, ‘Management is an art of getting
things done through and with the people in formally organized
groups. It is an art of creating an environment in which people
can perform and individuals and can co-operate towards
attainment of group goals.‘
Functions of Management

• Management has been described as a social

process involving responsibility for economical
and effective planning & regulation of operation
of an enterprise in the fulfillment of given
purposes. It is a dynamic process consisting of
various elements and activities. These activities
are different from operative functions like
marketing, finance, purchase etc. Rather these
activities are common to each and every manger
irrespective of his level or status.
• According to Henry Fayol, “To manage is to forecast and
plan, to organize, to command, & to control”. Whereas
Luther Gullick has given a keyword ’POSDCORB’ where
P stands for Planning, O for Organizing, S for Staffing, D
for Directing, Co for Co-ordination, R for reporting & B for
Budgeting. But the most widely accepted are functions of
management given by KOONTZ and O’DONNEL
i.e. Planning, Organizing, Staffing, Directing and Con
trolling.
Planning

• Planning means looking ahead and

chalking out future courses of action to be
followed. It is a preparatory step. It is a
systematic activity which determines
when, how and who is going to perform a
specific job. Planning is a detailed
program regarding future courses of
action.
• It is rightly said “Well plan is half done”. Therefore
planning takes into consideration available & prospective
human and physical resources of the organization so as
to get effective co-ordination, contribution & perfect
adjustment. It is the basic management function which
includes formulation of one or more detailed plans to
achieve optimum balance of needs or demands with the
available resources
Steps in Planning Function

1. Establishment of objectives
a. Planning requires a systematic approach.
b. Planning starts with the setting of goals and objectives to be achieved.
c. Objectives provide a rationale for undertaking various activities as well as indicate
direction of efforts.
d. Moreover objectives focus the attention of managers on the end results to be
achieved.
e. As a matter of fact, objectives provide nucleus to the planning process. Therefore,
objectives should be stated in a clear, precise and unambiguous language.
Otherwise the activities undertaken are bound to be ineffective.
f. As far as possible, objectives should be stated in quantitative terms. For example,
Number of men working, wages given, units produced, etc. But such an objective
cannot be stated in quantitative terms like performance of quality control
manager, effectiveness of personnel manager.
g. Such goals should be specified in qualitative terms.
h. Hence objectives should be practical, acceptable, workable and achievable.
2. Establishment of Planning Premises
– Planning premises are the assumptions about the lively shape of events
in future.
– They serve as a basis of planning.
– Establishment of planning premises is concerned with determining
where one tends to deviate from the actual plans and causes of such
deviations.
– It is to find out what obstacles are there in the way of business during
the course of operations.
– Establishment of planning premises is concerned to take such steps
that avoids these obstacles to a great extent.
– Planning premises may be internal or external. Internal includes capital
investment policy, management labour relations, philosophy of
management, etc. Whereas external includes socio- economic, political
and economical changes.
– Internal premises are controllable whereas external are non-
controllable.
3. Choice of alternative course of action

– When forecast are available and premises are established, a number of

alternative course of actions have to be considered.
– For this purpose, each and every alternative will be evaluated by
weighing its pros and cons in the light of resources available and
requirements of the organization.
– The merits, demerits as well as the consequences of each alternative
must be examined before the choice is being made.
– After objective and scientific evaluation, the best alternative is chosen.
– The planners should take help of various quantitative techniques to
judge the stability of an alternative.
4. Formulation of derivative plans
– Derivative plans are the sub plans or secondary plans which
help in the achievement of main plan.
– Secondary plans will flow from the basic plan. These are meant
to support and expedite the achievement of basic plans.
– These detail plans include policies, procedures, rules, program,
budgets, schedules, etc. For example, if profit maximization is
the main aim of the enterprise, derivative plans will include sales
maximization, production maximization, and cost minimization.
– Derivative plans indicate time schedule and sequence of
accomplishing various tasks.
5. Securing Co-operation
– After the plans have been determined, it is necessary rather
advisable to take subordinates or those who have to implement
these plans into confidence.
– The purposes behind taking them into confidence are :-
a. Subordinates may feel motivated since they are involved in
decision making process.
b. The organization may be able to get valuable suggestions
and improvement in formulation as well as implementation of
plans.
c. Also the employees will be more interested in the execution
6. Follow up/Appraisal of plans
– After choosing a particular course of action, it is put into action.
– After the selected plan is implemented, it is important to appraise its
effectiveness.
– This is done on the basis of feedback or information received from
departments or persons concerned.
– This enables the management to correct deviations or modify the plan.
– This step establishes a link between planning and controlling function.
_ The follow up must go side by side the implementation of plans so that
in the light of observations made, future plans can be made more
realistic
Organizing

• Organizing is the function of management which follows

planning. It is a function in which the synchronization and
combination of human, physical and financial resources
takes place. All the three resources are important to get
results. Therefore, organizational function helps in
achievement of results which in fact is important for the
functioning of a concern. According to Chester Barnard,
“Organizing is a function by which the concern is able to
define the role positions, the jobs related and the co-
ordination between authority and responsibility. Hence, a
manager always has to organize in order to get results.
A manager performs organizing function with the help of following
steps:-
1. Identification of activities - All the activities which have to be
performed in a concern have to be identified first. For example,
preparation of accounts, making sales, record keeping, quality
control, inventory control, etc. All these activities have to be grouped
and classified into units.
2. Departmentally organizing the activities - In this step, the
manager tries to combine and group similar and related activities
into units or departments. This organization of dividing the whole
concern into independent units and departments is called
departmentation.
 4. Classifying the authority - Once the departments are made, the
manager likes to classify the powers and its extent to the managers. This
activity of giving a rank in order to the managerial positions is called
hierarchy. The top management is into formulation of policies, the middle
level management into departmental supervision and lower level
management into supervision of foremen. The clarification of authority help
in bringing efficiency in the running of a concern. This helps in achieving
efficiency in the running of a concern. This helps in avoiding wastage of
time, money, effort, in avoidance of duplication or overlapping of efforts and
this helps in bringing smoothness in a concern’s working.
 5. Co-ordination between authority and
responsibility - Relationships are established among
various groups to enable smooth interaction toward the
achievment of the organizational goal. Each individual is
made aware of his authority and he/she knows whom
they have to take orders from and to whom they are
accountable and to whom they have to report. A clear
organizational structure is drawn and all the employees
are made aware of it.
Staffing

The managerial function of staffing involves manning the

organization structure through proper and effective
selection, appraisal and development of the personnels
to fill the roles assigned to the employers/workforce.
According to Theo Haimann, “Staffing pertains to
recruitment, selection, development and compensation
of subordinates.”
Nature of Staffing Function

1.Staffing is an important managerial

function- Staffing function is the most important
mangerial act along with planning, organizing, directing
and controlling. The operations of these four functions
depend upon the manpower which is available through
staffing function.
2.Staffing is a pervasive activity- As staffing function
is carried out by all mangers and in all types of concerns
where business activities are carried out.
3.Staffing is a continuous activity- This is because
staffing function continues throughout the life of an
organization due to the transfers and promotions that
take place.
 4. The basis of staffing function is efficient
management of personnel- Human resources
can be efficiently managed by a system or
proper procedure, that is, recruitment, selection,
placement, training and development, providing
remuneration, etc.
5.Staffing helps in placing right men at the
right job. It can be done effectively through
proper recruitment procedures and then finally
selecting the most suitable candidate as per the
job requirements.
 6. Staffing is performed by all managers depending upon the
nature of business, size of the company, qualifications and skills of
managers,etc. In small companies, the top management generally
performs this function. In medium and small scale enterprise, it is
performed especially by the personnel department of that concern.
Directing
• DIRECTING is said to be a process in which the managers instruct, guide
and oversee the performance of the workers to achieve predetermined
goals. Directing is said to be the heart of management process. Planning,
Organizing and staffing have got no importance if direction function does
not take place.
• Directing initiates action and it is from here actual work starts. Direction is
said to be consisting of human factors. In simple words, it can be described
as providing guidance to workers is doing work. In field of management,
direction is said to be all those activities which are designed to encourage
the subordinates to work effectively and efficiently. According to Human,
“Directing consists of process or technique by which instruction can be
issued and operations can be carried out as originally planned” Therefore,
Directing is the function of guiding, inspiring, overseeing and instructing
people towards accomplishment of organizational goals.
Characteristics of
Directing
• Pervasive Function - Directing is required at all levels of
organization. Every manager provides guidance and inspiration to
his subordinates.
• Continuous Activity - Direction is a continuous activity as it
continuous throughout the life of organization.
• Human Factor - Directing function is related to subordinates and
therefore it is related to human factor. Since human factor is
complex and behaviour is unpredictable, direction function becomes
important.
• Creative Activity - Direction function helps in converting plans into
performance. Without this function, people become inactive and physical
resources are meaningless.
• Executive Function - Direction function is carried out by all managers and
executives at all levels throughout the working of an enterprise, a
subordinate receives instructions from his superior only.
• Delegate Function - Direction is supposed to be a function dealing with
human beings. Human behaviour is unpredictable by nature and
conditioning the people’s behaviour towards the goals of the enterprise is
what the executive does in this function. Therefore, it is termed as having
delicacy in it to tackle human behaviour.