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Management Functions

Management is a process of planning, organizing, directing leading, and controlling.

Henry Fayol who is called as the father of modern management theory divided industrial undertakings into six groups:

1. Technical
2. Accounting
3. Financial
4. Commercial
5. Security
6. Managerial

Fayol divided managerial elements into five functions

1. Planning
2. Commanding
3. Controlling,
4. Organizing
5. Coordinating.

Luther Gulick coined word POSDCORB as management using the initial letters.

- P for planning
- O - for organising
- S - for staffing
- D - for directing
- CO - for coordinating
- R - reporting
- B - budgeting

Management and Innovation

• The environment around a business enterprise is always changing thus a manger can not apply the same
working style throughout his life.
• Manager has to focus on the issues of how to analyze; design and manage new products
• In today’s business environment open innovation is a vital perspective.
• A manager has to continuously manage his planning so as to keep its organisation prepared for challenges.

Coordination

Co-ordination is the essence of management and is implicit and inherent in all functions of management.

Management seeks to achieve co-ordination through its basic functions of planning organizing, staffing, directing and
controlling. Therefore, co-ordination is not a separate function of management because achieving of harmony between
individuals efforts towards achievement of group goals is a key to success of management.

Principles of coordination are

• Coordination encourages team spirit, gives right direction, motivates employees, and makes proper utilization of
resources. Thus, it should be viewed as a responsibility of every manager,
• All managers must have direct contact with their subordinates. Direct contact helps to avoid misunderstandings,
misinterpretations and disputes between managers and subordinates.
• All departments in an organization are interrelated, a decision in one department will affect other department;
thus coordination should understand the interpersonal relations.
• Coordination must start during the planning stage. This will result in making the best plans and implementation.
If coordination is started early, all the functions will be performed successfully
• Coordination must be a continuous process, not a one-time activity

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Functions of Management

1. Planning

Planning is the most important and basic management function. Its purpose is the define where the Organization wants
to go, what goals it wants to achieve, who is responsible for what, and how it will be performed. Its main functions are:

• Defining goals and objectives

• Organizational goals should be derived from its mission statement
• Deciding what type of activities the company will engage in
• Determining the resources needed to achieve the organizations goals & objectives.
• Standing-use plans and single-use plans are used to prepare for problems or emergencies.

2. Organizing

Organizing is necessary result of planning, The objective is to achieve maximum efficiency towards organizational goals.

Some of the functions which form a part of organizing are

• Directing and motivating employees, communication with employees individually & in groups.
• Management creates teamwork in an Organization by developing a sound organizational structure
• Establishes work groups, materials, and activities necessary to achieve the organizations goals
• Assignment of duties amongst the employees
• Delegation of authority and responsibility
• Coordination of these activities

3. Human resource Management

Human resource management is necessary after organizing cause after establishing the whole plan regarding the
different positions it is required to recruit suitable person.

Functions of HRM are

• Recruiting, selecting, training, and developing employees.

• To check adequate number of competent qualified personnel are there so as to achieve the perceived goal
• It is a continuous function and not one time function.

4. Direction

Direction is a managerial function performed by all managers of different levels of management.

Direction involves the following activities

• It is concerned with the direction of human efforts towards the enterprise objectives.
• It helps in achieving co-ordination among the various operations of the enterprise.
• It provides the necessary leadership in the business.
• It motivates, commands, communicates, supervises the staff and controls the organisation.
• It facilitates in securing co-operation of the employees for attaining the objectives of the organisation.

5. Control

Control focuses on evaluating performance according to the plans that have been establislled. Control includes

• Monitoring performance of people & units.

• Provision of feedback or information about progress.
• Identification of performance problems & actions to correct problems

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Development of management theories

The formal study of management only began late in the 19th century.

The main driving force behind this development of management as a science was the transition from 19th century
entrepreneurial capitalism to early 20th century managerial capitalism.

Whereas the first capitalists were business owners who used their own finances to fund organizations that they
managed themselves, rapid industrial growth saw the formation of large organizations with capital often provided by
outsiders.

Frederick Taylor

One of the early pioneers of management theory was given by Frederick W. Taylor.

Taylor was known as father of scientific management

Features of Taylor theory

• As per him managers are specializes foremen who were adequately equipped to supervise each phase of the
production process
• Management was an activity common to all human undertakings (including home, business, govt., schools, etc.)
• All these undertakings needed five basic administrative functions (planning, organizing, commanding,
coordinating and controlling).
• Fayol’s approach rejected the old notion that managers are born, not made, proposing instead that
management is a skill which can be acquired if its principles are understood.
• Division of work between management and labour

Henry Fayol

Henry Fayol is known as father of modem management theory.

Fayol divided industrial activities into six groups

• Technical activities
• Commercial activities
• Financial activities
• Accounting activities
• Security activities
• Managerial activities

He fused the 14 principles for organizational design and effective administration

1. Specialization of labour: A principle of work allocation and specialization in order to concentrate activities to
enable specialization of skills and understandings
2. Authority: The right to give orders and the power to exact obedience.
3. Discipline: The generalization about discipline is that discipline is essential for the smooth running of a business
and without it - standards, consistency of action, adherence to rules and values – no enterprise could prosper.
4. Unity of command: A concept that suggests there should be only one supervisor for each person in an
organization
5. Unity of direction: A single mind generates a single plan and all play their part in that plan.
6. Subordination of individual interest to the general interest: When at work, only work things should be pursued or
thought about.
7. Remuneration of staff: Employees receive fair payment for services, not what the company can get away with.
8. Centralisation: Consolidation of management functions.
9. Scalar chain/line of authority: Formal chain of command running from top to bottom of the organization
10. Order: All materials and personnel have a prescribed place, and they must remain there.
11. Equity: Equality of treatment (but not necessarily identical treatment)
12. Stability of tenure: Limited turnover of personnel. Lifetime employment for good workers.
13. Initiative: Thinking out a plan and do what it takes to make it happen
14. Esprit de corps: Harmony, cohesion among personnel

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Elton Mayo

Elton Mayo proposed that managers should become more people oriented

Features

• It suggests the behavioural principles of management

• Conducted experiments on conditions in the workplace and incorporating the well-established findings of the
Hawthorne Studies
• Logical factors were considered less important than emotional factors in determining productive efficiency thus
human behaviour more important in organisation
• The work performed by individuals has to satisfy their personal, subjective social needs as well as the
company’s productive requirements.

Systems Approach

This is a recent approach which defines organization as a complex system.

Features are

• Company is a set of things connected to each other making it a complex structure.

• The company has several smaller parts, or systems.
• Each system executes its functions as a largely independent unit
• Each system must determine how best to reach those strategic goals to fulfill the mission of the leadership.

Responsibilities of management

All level of managers (top, middle, lower), have responsibilities towards three people, one who have appointed them,
those whom they are managing and the general community.

Drucker assigns three jobs to management- managing a business, managing managers, managing workers.

Henry stated three work roles for manager- Interpersonal role- Focus on interpersonal behaviour, human relations,
leadership and motivation.

Informational role - As he is concerned with both interpersonal and group behavioural aspects of employees he is a
person with all the information collected by him from employees which he can use and transmit when required.

Decisional role - To focus on making decisions as an individual or group and making decision making as a process.

Difference between Management and Administration

Management is the act or function of putting into practice the policies and plans decided upon by the administration.

Administration is an administrative and legislative function, while management is an executive and governing function.

Administration makes the important decisions of an enterprise in its entirety, whereas management makes the decisions
within the confines of the framework, which set up by administration

Administrators are concerned with planning and organizing, management on the other hand, is used for motivation and
control

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Managerial Skills

Different managerial skills as per Katz are stated below

Top level managers require more conceptual skills and less technical skills, The lower level managers require more
technical skills and less conceptual skills

Conceptual skills -involve the formulation of ideas, conceptualization about abstract & complex situations. Using these
skills, managers must be able to see the organization as a whole. They have to understand the relationships among
various subunits, and visualize how organization fits into its broader environment.

Technical skills - involve process or technique knowledge and proficiency in a specialized field, such as engineering,
computers, accounting, or manufacturing. It refers to a person’s knowledge and proficiency in any type of process or
technique.

Human Skills - involve the ability to interact effectively with people. Managers interact & cooperate with employees.
Because managers deal directly with people, this skill is crucial.

Besides these there are other skills required by a manager

Communication skills - managers must be able to communicate plans and policies to all workers in an efficient way

Leadership skills- it is a must for managers so that they can motivate workers

Administrative skills- it is required by top level. They should be able to 4499 policies for organization

Problem solving skills- these are also called design skills. It is for them not just to identify the problem but also to find an
appropriate solution for it.

Decision making skills- it is required more at top level. It has to take quick and appropriate decisions

Tasks and responsibilities of professional managers

(To be dictatated)

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