Management & its functions


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Management & its functions

  1. 1. Sunday, February 05, 2012Management & Its FunctionsManagement is the process of reaching organizational goals by working with and through people and otherorganizational resources. The organization and coordination of the activities of an enterprise in accordance with certainpolicies and in achievement of defined objectives.In simple words, management means managing an activity. In other words, we have in mind some goal and we decideabout the ways of carrying out the activity so as to achieve the goal.Management can also be defined as human action, including design, to facilitate the production of useful outcomesfrom a system, with an organization viewed as a system.  It is a process or series of continuing and related activities.  It involves and concentrates on reaching organizational goals.  It reaches these goals by working with and through people and other organizational resources.Management Functions:PlanningThe function of management of systematically making decisions about the goals to be achieved and activities or actionsneeded to achieve those goals that an individual, a group, a work unit, or the overall organization will pursue in thefuture. Plans are developed for the entire organizational unit and individuals for certain period of time.Its activities include:  Analyzing current situations.  Anticipating the future.  Determining the organizational objectives.  Deciding the activities to be involved.  Choosing strategies.  Determining resources to achieve organizational goals.Every plan has to contribute positively toward the accomplishment of the objectives. Efficiency is measured by thecontribution of the plan to objectives implementing the plan. Planning is the primary prerequisite for all other functionsof management. Every action of the manager follows a planning step. If more people in an organization use commonand consistent planning premises, the enterprise planning will be more coordinated Select the plan which is the mosteffective and the most efficient to the attainment of a desired goal. Planning can cover a period over which commitmentof resources can be clearly visualized. Building flexibility in planning is beneficial, but cost of building flexibility needs toAssignment By Rajat Sharma Page 1
  2. 2. Sunday, February 05, 2012be evaluated against the benefits. Manager needs to periodically check events of the plan and redraw plans to maintainthe move toward a desired goal. In a competitive arena, it is important to choose plans in the light of what competitorwill or will not do and navigate based on what competitors are doing or not doing.Organizing The management function of assembling and coordinating human, financial, physical, information and other resourcesneeded to achieve organizational goals.Its activities include:  Specifying job responsibilities.  Grouping jobs into work units.  Resource allocation. An organization structure is effective if it as a whole, and every part of it, make possible accomplishment of individualsin contributing toward the attainment of objectives There is a limit at each managerial position on the number ofpersons an individual can effectively manage. Maintenance of authority delegation requires that decisions within theauthority competence of an individual manager be made by him and not be referred upward in the organization. Thebetter an organization structure reflects a classification of the tasks and activities required for achievement of objectivesand assists their coordination through creating a system of interrelated roles; and the more these roles are designed tofit the capabilities and motivations of people available to fill them, the more effective and efficient an organizationstructure will be. The more a position or a department has clear definition of results expected, activities to beundertaken, organization authority delegated, and authority and informational relationships with other positions, themore adequately individual responsible can contribute toward accomplishing objectives.StaffingThe positions provided by the organization structure must be staffed with personnel able and willing to carry out theassigned functions. The quality of management personnel can be ensured through proper definition of the job and itsappraisal in terms of human requirements, evaluation of candidates and incumbents, and appropriate training.Specifications for the job rest on organization requirements and on provision for incentives to induce effective andefficient performance of the tasks involved. Performance must be appraised against the management action required bysuperiors and against the standard of adherence in practice to managerial principles. Managers should be selected fromamong the best available candidates for the job, whether they are inside or outside the enterprise. The objective ofmanagement development is to strengthen existing managers. The most effective means of developing managers is tohave the task performed primarily by a managers superior.DirectingThe management function that involves the managers efforts to stimulate high performance by employees and includesdirecting, motivating and communicating with employees, individually and in groups.Its activities include:  Directing the workforce.  Motivating your subordinates.  Communicating with employeesEffective directing depends on the extent to which individual objectives in cooperative activity are harmonized withgroup objectives. The more completely an individual has a reporting relationship to a single superior, the less theproblem of conflict in instructions and the greater the feeling of personal responsibility for results. Effective directionrequires that management supplement objective methods of supervision with direct personal contact. Since people,tasks, and organizational environment vary, techniques of supervision will be most effective if appropriately varied. Atone time there was a management emphasis on directing in the directorial(autocratic) sense, but in recent times, theconcept of directing has become more congruent with leading than with pushing. Thus today, directing is more relatedto leading and leadership styles. Leadership in this context means the process whereby a work environment is created inwhich people can do their best work and feel an interest in producing a quality product or service.Assignment By Rajat Sharma Page 2
  3. 3. Sunday, February 05, 2012ControllingThe function of management of monitoring progress and making needed changes to make sure that the organizationalgoals are achieved.Its activities include:  Setting performance standards that indicate progress toward long-term goals.  Monitoring staff performance through performance data evaluation.  Identifying performance problems by comparing performance data against standards and take corrective actions.The task of control is to assure accomplishment of objectives by detecting potential or actual deviation from plans earlyenough to permit effective corrective action. The more control approaches and techniques detect and illuminate thecauses of potential or actual deviations from plans with the minimum of costs or other unsought consequences, themore efficient these controls will be. The primary responsibility for the exercise of control rests in the manager chargedwith the execution of plans. The more controls are designed to deal with and reflect the specific nature and structure ofplans, the more effective they will serve the interests of the enterprises and its managers. The more controls aredesigned to reflect the place in the organization structure where responsibility for action lies, the more they willfacilitate correction of deviation of events from plans. Controls have to be consistent with the position, operationalresponsibility, competence, and needs of the individuals who have to interpret the control measures and exercisecontrol. Effective control requires objective, accurate, and suitable controls. Effective control requires attention tothose factors critical to appraising performance against an individual plan. The more a manager concentrates his controlon exceptions, the more efficient will be the results of this control. If controls are to remain effective despite failure orunforeseen changes in plans, flexibility is required in the design of controls. Control is justified only if indicated orexperienced deviations from plans are corrected through appropriate planning, organizing, staffing and directing.Assignment By Rajat Sharma Page 3