FUNCTIONS OF MANAGEMENT

Presented by:
Ma. Elizabeth Arlene U. Castel
RN,MAN
Management
 includes vision, policies, tasks achieved by efforts of people utilizing resources,
discipline, system and procedures
 Every achievement of the people is also achievement of the manager( as with
failure as well)
 Management applies to both private and public orgs and administration is part of
the management process involved in the design and implementation of systems and
procedures

FUNCTIONS OF MANAGEMENT
 Planning involves devising a systematic process for attaining the goals of the
organization. It prepares the organization for the future.
 Organizing involves arranging the necessary resources to carry out the plan. It is
the process of creating structure, establishing relationships, and allocating resources to
accomplish the goals of the organization.
 Directing involves the guiding, leading, and overseeing of employees to achieve
organizational goals.
 Controlling involves verifying that actual performance matches the plan.

LEVELS OF MANAGEMENT
3 MANAGEMENT ROLES
 A role is an organized set of behaviors.
 The interpersonal roles ensure that information is provided.
 The informational roles link all managerial work together.
 The decisional roles make significant use of the information.

3 MANAGEMENT SKILLS
 Technical skill involves process or technique knowledge and proficiency.
Managers use the processes, techniques and tools of a specific area.
 Human skill involves the ability to interact effectively with people. Managers
interact and cooperate with employees.
 Conceptual skill involves the formulation of ideas.

MANAGEMENT HISTORY/ THEORIES

 CLASSICAL SCHOOL
 BUREAUCRACY
 SCIENTIFIC MANAGEMENT
 ADMINISTRATIVE
 HUMAN RELATIONS
 HUMAN RESOURCES SCHOOL
 INTEGRATIVE MANAGEMENT THEORY

1. CLASSICAL SCHOOL
 In 1975, Raymond E. Miles wrote Theories of Management: Implications for
Organizational Behavior and Development published by McGraw Hill Text.
 In it, he popularized a useful model of the evolution of management theory in the
United States. His model includes classical, human relations, and human resources
management.
2. BUREAUCRACY
 Max Weber (1864-1920), known as the Father of Modern Sociology, analyzed
bureaucracy as the most logical and rational structure for large organizations with well
defined hierarchy of authority, division of work with specializations, rules, interpersonal
relationship and competence as basis of promotion.
3. SCIENTIFIC MANAGEMENT
 In 1911, Frederick Taylor, known as the Father of Scientific Management,
published Principles of Scientific Management in which he proposed work methods
designed to increase worker productivity. Selection of best man for the job.
 Frank Gilbreth wrote Motion Study. In 1919, Frank and his wife, Lillian Gilbreth
wrote Applied Motion Study.
 Henry Gantt developed the Gantt chart, which is used for scheduling multiple
overlapping tasks over a time period.
4. ADMINISTRATIVE
 Henri Fayol (1841--1925), known as the Father of Modern Management, was a
French industrialist who developed a framework for studying management. He wrote
General and Industrial Management.Developed the 14 principles of Management.
 Mary Parker Follett's concepts included the universal goal, the universal principle,
and the Law of the Situation. Take orders from the situation not from the employee.
14 Principles of Management (H. Fayol)
 D-division of work, discipline
 I-initiative
 S-scalar chain, stability of tenure ,subordinate of ind to gen interest
 C-centralization
 O-order
 U-unity of command and direction
 R-remuneration of personnel
 A-authority
 E-equity, esprit de corps
5. HUMAN RELATIONS
 Elton Mayo, known as the Father of the Hawthorne Studies, identified the
Hawthorne Effect or the bias that occurs when people know that they are being studied.
 When Chester Barnard retired as the CEO of New Jersey Bell Telephone, he
recorded his insights about management in his book, Functions of the Executive.
6. HUMAN RESOURCES SCHOOL
 The human resources school understands that employees are very creative and
competent, and that much of their talent is largely untapped by their employers.
Employees want meaningful work; they want to contribute; they want to participate in
decision making and leadership functions.
7. INTEGRATIVE MANAGEMENT THEORY
 Systems theory and a contingency view can help integrate the theories of
management.
 Appropriate managerial techniques can be applied as required by environmental
conditions.
 A broad perspective is valuable to managers when overseeing one unit or the total
integration of all subunits.

 Douglas McGregor developed theory Y questioning theory X

 Theory X assumed that average individual dislikes work and needs to be directed
 Theory Y states that man will exercise self control and self direction in the
service of objectives he has committed
 Cris Argyris believed that during maturation, individual develops greater
independence and self control

 Rensis Likert-believed that effective organization focused its attention on building

effective work groups with high performance goals.
 Herbert Simon- 2 approaches to decision making;
 1. Optimizing-Economic Man
 2. Satisfying- Administrative Man
 Alvin Toffler-talks of Change Regulators to be able to deflect,accelerate, shape
changes

 Need Theories:
 Abraham Maslows- humans as wanting organisms. Hierarchy of needs.
 Frederick Herzberg- 2 factor need theory:
 1.Hygiene factor/dissatisfiers - working condition w/c may lead to job
dissatisfaction
 2. Motivating factor/satisfiers- work itself such as added responsibility and OJT
 B.F.Skinner- Operant Theory: Respondent and Operant (reinforcer) Behavior

 Victor Vroom-Expectancy theory-behavior is shaped by the valued outcome

 Adam-Equity theory-compare inputs with other employees
 White-Competence Theory-behavior is motivated by desire to control one’s
environment

1ST MANAGEMENT FUNCTION: PLANNING

 Planning involves devising a systematic process for attaining the goals of the
organization.
 It prepares the organization for the future.
PLANNING PROCESS
TYPES OF PLANS
 Strategic plans
 Broad future of the organization
 External environmental demands
 Internal resources
 Tactical plans
 Translate strategic plans into specific goals
 Specific parts of the organization
 Operational plans
 Translate tactical plans into specific goals and actions
 Small units of the organization
 Near term

OBJECTIVES
 An objective is simply a statement of what is to done and should be stated in
terms of results.
 A mnemonic aid to write objectives is SMART:
 Specific
 Measurable
 Attainable
 Result-oriented
 Time-limited
PROBLEM SOLVING
 Problem solving is the process of taking corrective action in order to meet
objectives.
 A problem exists whenever there is a difference between what actually happens
and what the supervisor wants to have happen.
PROBLEM SOLVING PROCESS
2ND MANAGEMENT FUNCTION: ORGANIZING
 Organizing involves arranging the necessary resources to carry out the plan.
 It is the process of creating structure, establishing relationships, and allocating
resources to accomplish the goals of the organization.

ORGANIZING PROCESS
AUTHORITY
Authority is the legitimate power of a supervisor to direct subordinates to take action
within the scope of the supervisor's position.
3 FORMS OF AUTHORITY
 Line authority is direct supervisory authority from superior to subordinate.
 Staff authority is more limited authority to advise. It is authority that is based on
expertise and which usually involves advising line managers.
 Team authority is granted to committees or work teams involved in an
organization's daily operations.

POWER
 Power is the ability to exert influence in the organization beyond authority, which
is derived from position.
 6 Sources of Power:
 Legitimate
 Coercive
 Reward
 Expert
 Referent
 Information
6 SOURCES OF POWER
 Legitimate power is a result of the position a person holds in the organization
hierarchy.
 Coercive power is the threat of sanctions. It is dependent on fear and includes,
but is not limited to the ability to dismiss, assign undesirable work, or restriction of
movement.
 Reward power results in people doing what is asked because they desire positive
benefits or rewards. Rewards can be anything a person values (praise, raises, and
promotions).
 Expert power comes from expertise, skill, or knowledge.
 Referent power refers to a person who has desirable resources or personal traits.
It results in admiration and the desire to emulate.
 Information power is based upon the persuasiveness or content of a
communication and is independent of the influencing individual.
CENTRALIZATION VERSUS DECENTRALIZATION
 Centralization is the degree to which decision-making is concentrated in top
management's hands.
 Decentralization is the extent to which decision-making authority is pushed
down the organization structure and shared with many lower-level employees.
3RD MANAGEMENT FUNCTION: DIRECTING
 Directing involves the guiding, leading, and overseeing of employees to achieve
organizational goals.
 It includes decision making, training employees, delegation as well as
communication.

DELEGATION, RESPONSIBILITY AND ACCOUNTABILITY

 Delegation is the downward transfer of formal authority from superior to
subordinate.
 Responsibility is the obligation to do assigned tasks. The individual employee is
responsible for being proficient at his or her job.
 Accountability is answering for the result of one's actions or omissions. It is the
reckoning, wherein one answers for his or her actions and accepts the consequences,
good or bad.
DELEGATION PROCESS
COMMUNICATION
 Communication is the process of passing information and understanding from
one person to another.
 The communication process involves 6 basic elements:
 Sender (encoder)
 Message
 Channel
 Receiver (decoder)
 Noise
 Feedback.
COMMUNICATION PROCESS
MANAGING STRESS
 Stress is a mental and hormonal response to the pressure of outside events or
internal problems.
 Exercise, nutrition, relaxation, and sleep are important to managing stress
TEAMBUILDING
 A team is two or more employees who are organizationally empowered to
establish their objectives, to make decisions about how to achieve those objectives, to
undertake the tasks required to meet them, and to be individually and mutually
accountable for their results.
 Empowerment is the delegation of authority to an individual or team and
includes autonomy, trust and encouragement to make the decisions necessary to
accomplish the job.
 Teambuilding is a method designed to help teams operate more effectively by
improving internal communication and problem-solving skills.
TRAINING
 After employees are selected, they enter an orientation program to be formally
introduced to their jobs.
 Orientation is a program that introduces new employees to the organization as a
whole, their work unit and co-workers, and their job duties.
 Training refers to improving an employee's knowledge, skills, and attitudes so
that he or she can do the job.

LEADERSHIP VERSUS MANAGEMENT

 A leader can be a manager, but a manager is not necessarily a leader.
 If a manager is able to influence people to achieve the goals of the organization,
without using his or her formal authority to do so, then the manager is demonstrating
leadership.

LEADERSHIP VERSUS MANAGEMENT

 Management is the process of setting and achieving the goals of the organization
through the functions of management: planning, organizing, directing (or leading), and
controlling.
 Generally speaking, leadership deals with the interpersonal aspects of a manager's
job, whereas planning, organizing, and controlling deal with the administrative aspects.
 Leadership deals with change, inspiration, motivation, and influence. And
management deals more with carrying out the organization's goals and maintaining
equilibrium.
MOTIVATION
 Motivation is the set of processes that moves a person toward a goal. Thus,
motivated behaviors are voluntary choices controlled by the individual employee.
4TH MANAGEMENT FUNCTION: CONTROLLING
 Controlling involves verifying that actual performance matches the plan.
 Controlling is directly related to planning. The controlling process ensures that
plans are being implemented properly.
 Control is the process through which standards for performance of people and
processes are set, communicated, and applied.
3 TYPES OF CONTROL
 Controls are most effective when they are applied at key places. Supervisors can
implement controls before the process begins (feedforward), during the process
(concurrent), or after it ceases (feedback).
 Feedforward controls focus on operations before they begin. Their goal is to
prevent anticipated problems
 Concurrent controls apply to processes as they are happening. Concurrent
controls enacted while work is being performed include any type of steering or guiding
mechanism
 Feedback controls focus on the results of operations. They guide future planning,
inputs, and process designs.
COACHING AND COUNSELLING
 Coaching is a behavioral control technique used by the supervisor to give on-
going guidance and instruction, to follow day-to-day progress, and to give feedback.
 Coaching is the informal, day-to-day ongoing instructing of employees.
 Counseling is a behavioral control technique used by the supervisor to solve
performance problems.
EVALUATING
 Evaluating individual work performance is a form of control because it ties
performance feedback to rewards and corrective actions.
PERFORMANCE APPRAISAL
 Performance appraisal is a formal, structured system that compares employee
performance to established standards.
 Assessment of job performance is shared with employees being appraised through
one of several primary methods of performance appraisals
6 PERFORMANCE APPRAISAL METHODS
 Comparative Standards or Multi-person comparison
 Critical Incidents
 Graphic Rating Scale
 Behaviorally Anchored Rating Scales (BARS)
 Management by Objectives (MBO)
 360 Degree Feedback
TERMINATING
 The last step in the discipline procedure (Progressive Discipline Steps) is
termination.
SUMMARY OF MANAGEMENT FUNCTIONS