The Functions of Management

CHAPTER II
WRITER:
SYED AQEEL RAZA
Master of Commerce & Arts

TABLE OF CONTENTS: PAGE NO:
The function of management 2.1
Principle 2.2
The function of the manager 2.3
The function of the higher management 2.4
- Planning 2.5
- Organizing 2.6
- Staffing 2.7
- Directing 2.8
- Controlling 2.9
- Coordination 2.10-2.11
The Management and its characters 2.12
- Management 2.13
- Owner 2.13
- Principle 2.14
- Partner 2.15
- Director 2.15
- Manager 2.16
- Authorized Manager 2.17
- Working Manager 2.17
- Staff 2.17
Authority and responsibility
- Authority 2.18
The Source of Authority
- The formal authority theory 2.19
- Acceptance theory 2.20
- Competence theory 2.21
Limits of Authority 2.22
Delegation of Authority 2.23 – 2.24
Responsibility 2.25
Delegation of responsibility 2.26
Accountability for responsibility 2.27 – 2.28
Principle of delegation 2.29
- Scalar Principle 2.30
- Authority level principle 2.31
- Principle of unity of command 2.32
- Principle of delegation by result expected 2.33
- Principle of absoluteness of responsibility 2.34
- Principleof parity of authority and responsibility 2.34 – 2.35
- Authority, manager, and leader 2.36 – 2.37
- Writers’ view 2.38 – 2.39

THE SYSTEM OF MANAGEMENT-2.1
THE FUNCTION OF MANAGEMENT
In management, the five elements such as planning, organizing, staffing,
directing and controlling are in function every time and are considered the
basis of management.
The functions of management make principles which enable functions to
achieve the goal.
Management is an unforeseen force to increase efficiency.
PLANNING
CONTROLLING
DIRECTINGSTAFFING
ORGANIZING

PRINCIPLE:
The principles are not the invention of today but were known by men
before centuries. The work of any kind is to perform called principles. A
principle can be defined as a fundamental statement or general truth
providing a guide to thought. The desired results are obtained by using
principles and by which a manager can remove mistakes and can do
forecast the result during the action.
The principles have a close relationship with management and without
principles, the concept of management and existence is impossible.
Because of principles, the capability of a man and the best results for an
organization is obtained and when a man is able to reach on any result to
manage his ways and methods then the management comes into existence
which is possible because of principles.
The bodily, physically and mentally characteristics are limited to a cultured
man then he has to participate others in order to get his objectives. In fact,
every man wants to get satisfactory and profitable results in less and less
time and expenditure so that he has to face minimum uncertain losses than
under this theory, man thinks suitable to include others in every
department of life either socially or commercial or governmental.
When all men under an organization intend to get a particular object then,
in this case, the existence of management occurs.
Principles separate man and animal.
The system of management/aqeelraza@live.com/slideshare.net

THE FUNCTIONS OF THE MANAGER
The responsibilities of manager differ with the nature and span of
organizations. If the organization is very large then the separate manager
will be for every unit or department and like this in an organization, there
can be one or more managers such as manager production belongs to the
production, manager sale belongs to the sale and like this manager factory
looks after other managerial works. In a small and medium organization,
these functions are performed by only one manager.
- The first and foremost responsibility of a manager will be that he creates
the environment in the organization by which the desired objectives are
obtained.
- The manager is responsible for making a good environment for workers
in the organization or creates such environment for good work.
- The manager does planning for his working subordinates.
- The manager selects suitable staff for the nature of work.
- The manager educates for work and then directs to his subordinates.
- The manager keeps on eye on results of the work because all works are
performed for results.
Universally, the function of managers are equal either they are in any
organization or in a peculiar place in the organization. Their particular
responsibility is that they prove themselves a ruler that their subordinates
work with unity and establish coordination with other units.
The peaceful functioning of an enterprise should be the objective of a manager.

THE FUNCTION OF HIGHER MANAGEMENT
The principals or higher management work for the functions of
management; planning, organizing, staffing, directing and controlling; and
deliver to managers for getting desired results, managers following the
functions of management and work on principles.
The function of management is just like a cycle which has no end.
THE CLASSIFICATION OF FUNCTIONS
It is essential to classify the responsibilities of manager that the nature of
work must be understood for instance sale, industrialization, accountancy,
engineering and purchasing which have different nature from one
enterprise to other enterprise but principles for working with them are
same.
For planning of responsibilities, it is an easy way that they must be taken in
the limitation of planning, organizing, staffing and controlling.

PLANNING
The planning selects objective firstly and this objective is obtained by the
policy, procedures and the way of working of an organization. Actually, the
meaning of planning is to select one objective among many possible
objectives means one objective is determined by planning. In fact, the
planning and the responsibility of making it cannot be separated by
principals because it is necessary for principals to make planning either
belong to the top place of an organization or in a small unit but planning
are very necessary on every step.
The planning works in every place of work.

ORGANIZING
The action or the discipline of work is called organizing so that the desired
objectives of an organization could be obtained. However, the organization
is the summary of attaching with all works and authorities.
The organizing cannot be in a private company because the owner pays the
responsibility of manager himself and he does not deliver the authority to
other. Hence, there mustbe two principals who do work in a place or under
each other.
The organizing is the source of reaching the desired goal.

STAFFING
Actually, the meaning of staffing is to provide workers and kept suitable
staff in the enterprise. The nature of staff depends on the nature of work
and suitable person or staff is selected according to work. In staffing,
suitable education and training are essential so that they complete their
work with full efficiency. The watching of staff, their upgrading,
remuneration, etc., come understaffing and like this, it is a very necessary
duty of manager.
The staffing in management is like a soul in the body.

DIRECTION
Direction tells work to a subordinate, keeps on eye their work and issue
order to them. A good manager, by his directions, explains the policies,
objectives, and nature of his enterprise to his subordinate.
Itis the continuing duty of a manager to informhis subordinates relating to
their work and provides guidelines to them so that the methods of their
work could be better.
The direction is the source of training.

CONTROLLING
The control creates such opportunities that are according to planning.
Hence, the works are scaled, the mistakes are improved and the work is
completed according to planning. The control creates the ability to do
decided work.
The control on all works is the result of workers in control.

CO-ORDINATION
Most of the writers are in the opinion that the co-ordination is the separate
duty or function of a manager but it is seen that the co-ordination is the
part of management which includes five functions of management and
because of the reason that every function of management exercises of
coordination.
The coordination explains the procedure of getting decided objectives and
joints departments with each other. The coordination is established at the
time of planning and policy making.
It is the particular responsibility of a manager that he establishes
coordination. His most first responsibility is that he establishes an
environment in organization that the co-ordination can be possible to;
- establish reasonable system structure
- select skilled subordinates and educate
- keep in control subordinate work effectively
- make out subordinates the necessary timing and work schedules
- provide such sources by which the subordinates can perform decided
work
- make out subordinates the principles and the importance of co-
ordination

The coordination is the essence of manager ship.

THE MANAGEMENT AND ITS CHARACTERS
The management is a body and the following characters are soul which
move it functions;
- Management
- Owner
- Principal
- Partner
- Director
- Manager
- Staff
CHARACTERS OF MANAGEMENT
MANAGEMENT
OWNER
PARTNER
STAFFMANAGER
PRINCIPAL

MANAGEMENT
Management is a plate form of managers where their areas of working to one objective
are assembled and on joining all efforts of managers, the result comes is called the
result of management. The decision of manager in his area is considered the decision of
the management.
The term” management” may refer to the person who manages an organization.
OWNER
The owner is who that applies finances in specific business aiming end target to
generator profit from his investment then he makes planning to start business and to
organize it he keeps employees and distribute authorities and obligations in them as he
cannot do everything in business because of having therein many departments as like
administration, production, procurement, sales etcetera.
The owner is responsible for good and bad in business and his staff will use his given
authority only to get the desired result and in case of failure they will not be responsible
and the owner will have to suffer the cause of failure so that he keeps on eye on all
activities working under his authority. The owner has right to cancel or does low and
high the authority of his staff.
The owner makes planning, organizing, staffing, directing and controlling himself and
operating departments he keeps working manager like Manager Administration,
Manager Production, Manager Procurement, Manager Sales etcetera according to the
nature of his business.
We can say manager to the owner; the manager who has the authority of doing
anything in business and is responsible for every type of good and bad in business. The
owner is himself a planner, organizer, director, controller and even employee in working
according to the nature of business.

PRINCIPAL
The Principal means the owner or authorized person from
owner to operate a business. The owner applies finances
and gives objectives to principal and principal works for
obtaining the objective for the owner. The owner brings
finance and does planning for business and the principal
walks on the planning of the owner and does planning the
objective how to get it and for this purpose, he organizes
works, keeps employees and give them authorities and
obligations. The principal is answerable to the financer for
his authorities and responsibilities and his responsibility
and authority is less than one step to owner hence he
keeps on eye on all the activities of his sub-authorized
persons.
We can say that the principal in case of authority is an
employee of the owner for which he pays against his goal
although he has fully right for using authority but under
owner’s right the principal works.

PARTNER
Two or more persons do business investing finances equally or not equally under profit
and loss sharing ratio are called partners. The partner has the same right as owner
according to investment. In partnership, one man character in business becomes
meaningless now one man cannot do himself planning, organizing, directing, staff and
controlling and for doing them the consultations of partners are needed.
The objectives of partners in business are common and they are responsible equally or
partially according to agreement.
DIRECTOR
The director can be the owner, partner or an employee of the owner and who is
assigned to get the desired result for the company in case of an employee. He leads or
supervises the particular area of the company or company’s program or project like
technical director, production director, finance direct, the director or human resources
etcetera. He is responsible for smooth working and reporting the activities to Chief
Executive Officer or owner/owners of the company.
If the director is the owner, he may be chairman, managing director, executive director
and nonexecutive director depends on the size of company they gathered at the plate
form called the board of directors.
The director is a manager in his area of working so he makes planning, organizing,
staffing, directing and controlling and authorized and responsible for desired results of
the company.

MANAGER
The owner or principal appoint managers in different areas of the
company to control activities and give them authorities to get the
work done by their subordinates and the manager gives sub
authority to his subordinates to take work.
The manager applies the five principal of management; planning,
organizing, staffing, directing and controlling his area of working.
Every authorized person either owner of employee is a manager
who works for obtaining the desired result of the company but
the difference of the employee and owner will remain in its place.
We can divide manager into two categories;
1- Authorized manager
2- Working manager

Authorized Manager
The person who has authority of doing anything in business and who can be
the owner because the owner has the same right so we can say him the
authorized manager for the business who makes planning, organizing,
staffing, directing and controlling in every area of business, gives or takes
the authority and takes every kind of decision in business.
Working Manager
The person who has been given authority by authorized manager to take
the assigned works for getting the desired result. The working manager is
hired and can be fired by authorized manager or for the purpose of
particular work.
The working manager does planning, organizing, staffing, directing and
controlling in his given area and he can subdivide his authority to his
subordinates but cannot separate from his given authority and
responsibility.
STAFF
The employee is the person who may be a director, manager, supervisor
and workers controlled by the principal authorities and they work under
the scalar chain.
The staff is the source of getting the desired result of the company for
which they are given authorities and obligations.

AUTHORITY AND RESPONSIBILITY
AUTHORITY
The meaning of authority in the management is that the authority could become the
cause of success for the organization by ways and methods of the authorized persons
or the authority is given like this that by the way of taking work of authorized person,
the progress could lighten in the work of enterprise or in the department of the
enterprise.
The authority and responsibility have close relationship with each other in every
enterprise where are officers and subordinates.
The authority generates responsibility automatically who has authority, he will be
responsible definitely. If it is seen that the authority is the way of examining the
capability of the manager and when the authority is being given tomanager its means
that he is being given responsibilities.
The authority takes work.

THE SOURCE OF AUTHORITY
The source of authority differs in experts under theories;
Formal Authority theory:
In a commercial enterprise, the source of authority depends on the ownership of an
enterprise or the theory of authority in meaningpower inprivate enterprise isobtained to the
owner, given by law under social rules and regulations to officials or to the chief manager and
chief manager to managers. In a public organization, the ultimate authority is vested in the
shareholders who delegate the authority to a board of directors who delegate its powers to
the chief executive who delegates it to the Mangers and so on. Hence, the authority flows in
the scalar chain from the highest level to the lower level.
The existence of authority is because of the elements of group behaviour when these
elementsare changed thenthe change inenterprise occurs. In present time, the change in the
nature of an enterprise is because of today’s wishes, objectives, and common action.
The power creates authority.

ACCEPTANCETHEORY
The authority of the superior has no meaning unless it is accepted by the
subordinates. If the subordinates do not accept the orders of a superior
there will be no use of exercising authority.
The authority has two ways; subjective and objective wherein subjective
accepts the givenauthority andin an objective, the authority may accept.
According to Bernard a subordinate will accept the authority of his
manager if he understands that;
- The authority is necessary for the organization.
- He feels the authority is joined with his personal interest.
- It is fit mentally and physically to comply with it.
The authority depends on acceptance.

COMPETENCETHEORY:
According to this theory, the authority comes to manager on the
basis of technical competence or personal characteristics. The
manager, according to this theory, has no authority but his
directions and advice are accepted and needed to an
organization.
The authority on competency is because of personal.

LIMITS OF AUTHORITY
The authority of order in an organization from upper level to lower level decreases
gradually under limits of authority.
There may be many reasons for limits of authority as;
On biological basis, the authorities are to be limited because a man has no ability to do
every work.
The limit of authority is because of physicals such as air and water, geography or
physical law.
The limit of authority is determined technically for example on the basis of authority, a
factory is not ordered to install on the moon.
The economical limits and many others complex limits also retard on authority.
Every manager has separate authority limit, for example, a manager is authorized to
spend up to 1000 rupees but has no right to strike out an employee.
The limit in authority separates work.

DELEGATION OF AUTHORITY
The delegation of authority is a key for an enterprise which opens
doors to distribute duties among small units. Actually, the theory
of the delegation of authority creates the existence of an
enterprise because a single man can not do every work of the
enterprise and has to delegate authority and then subordinate
can have the work completed according to given obligations in his
area.
The delegation of authority is the first step for the art of
management. In fact, this art tells us how and when they should
be used.
The responsibility is explained on delegation of authority wherein
the explanation of work with clean and visible is an important
factor.
The authority is splintered in case of not solving any problem
without other managers. In this case, more than one managers
gather their authorities and decide.
All given authorities can be returned because of changes in
enterprise, changing in policy, deputation of workers and
improvement in the enterprise.

RESPONSIBILITY
Actually, the meaning of responsibility, in general, is to work
efficiently and normally it connects to authority and authority to
obligation. The responsibility belongs to a person not to a
building, machine or animal.
The responsibility can be subdivided to subordinates for getting
work done but not to separate it with manager.

THE DELEGATION OF RESPONSIBILITY
The responsibility cannot be delegated but a manager can
delegate the authority to his subordinate to have the work
completed because the responsibility is an obligation of a ruler.
Hence, the president of an organization cannot be separated by
his responsibility even though the authority is handed over and
obligations are delegated but no one can leave his responsibility.
The delegation is an art.

ACCOUNTABILITY FOR RESPONSIBILITY
In the field of management, accountability isattached with
responsibility which means that subordinates can perform
to their obligations quickly and effectively so that the
correct work is performed and drawbacks in their work
may be removed.
The accountability supports responsibility.

Authority is the legal right of a person or superior to
command his subordinates while accountability is the
obligation of individual to carry out his duties as per rules
and regulations. Authority flows from the superiors to
subordinates wherein orders and instructions are given to
subordinates to complete the task. It is only through
authority, a manager exercises control and in a way, the
superior demands accountability from subordinates. For
instance, a marketing manager gives target for 100 units of
products to be sold in a month and if the target is not
accomplished, the marketing manager will be accountable
to his superior.
Therefore, we can say that the authority flows from top to
bottom and responsibility from bottom to top and
accountability is the result of responsibility and
responsibility is the result of authority means every
authority is attached with equal accountability.

PRINCIPLES OF DELEGATION
The following principles for the delegation of authority are the
candle in way;
1- Principles of functional delegation
The clarification of work is very necessary to complete ay work
with delegated authority. If the superior does not know that what
he should do then he cannot clarify the work. The authority is
delegated to managers of different unit after knowing it and
breaking down it in different units so that subordinate can also
complete the work to understand it.
The clarification of duties is the first step of delegation.

2- ScalarPrinciple
Actually, the scalar principle establishes the permanent
relationship between superior to lower and at last the
authority ends on a limit. The scalar authority between
superior to lower is very necessary for operating the work
of an enterprise. Every subordinate should know that he is
authorized by whom and the matters which are beyondhis
limit whom to submit.
The Scalar chain is just like a ladder step by step.

3- Authority Level Principle
The level of authority comes into existence because of the
clarification of work and scalar chain. Every manager decides on
authority level keeping in view of his authority and that matters
which will be out from his authority, he represents them to his
superior. If manager wants to do effective delegation of authority
then he should clarify the delegation of authority and subordinate
may understand it at home. The manager gives often decidable
authorities to his subordinate for which he experienced.
The Authority requires level for working.

4- Principle of unity of command
This is the basic principle of the principle of management
that every subordinate informs to his superior about his
work. The delegation of authority on determined work
must be given by only a superior to a subordinate. The
principle of unity of command explains to the connection
between authority and responsibility.
The information about work to relative superior is the basic principle.

5- Principle of delegation by result expected
The authority must be delegated in view of the nature of
work and span of work. In fact, the objective of an
enterprise is decided at first and after making plan, the
authorities are delegated. The authority should be
delegated at the limit and like this that goods results may
obtain later.
The authority is delegated on the basis of result expected.

6- Principle of absoluteness of responsibility
On the basis of the delegation of authority, no superior
cannot be separated by his responsibility because the
superior is who that delegates the authority to his
subordinate and gives him obligations when the
subordinate accepts one time the authority then the
absolutenessof responsibilityof subordinateon superior is
made.
The responsibility of subordinate is on superior.

7- Principle of parity of authority and responsibility
As the authority is a power which is essential for
delegated work and responsibility is an obligation
which assists to complete this work then it appears
clearly that authority is essential which is with
responsibility. This status of parity is not
accountability but is in balance because both belong
to responsibility then the status of the manager
becomes responsible by the principle of parity of
authority and responsibility. According to this fact,
this is his obligation that he takes work with his
subordinate and has authority to himself work. The
responsibility and authority have equal position.
The parity in authority and responsibility are in balance.

8- Authority, manager, and leader
The authority enables manager to direct his subordinate
according to work so that the particular objective of the
enterprise may be obtained. The existence of manager is with
authority and the ability of a manager depends on influence on
his subordinates for getting work done by them. A leader gets
authority from peoples because of his effective ability and rules
over peoples to use that authority when the authority is obtained
or delegated to manager.
The manager must have the ability like a leader when the
characteristics of leaders gather in a manger then he can make a
good manager.
The manager is a leader.

The manpower plays an important role in management and without it, the
desired objective of an organization is just like a dream and to control it is
an art of management.
We must consider that the employee belongs to the category of services
business which applied in all businesses and without it the concept of
business is just like a dream wherein no investment is applied but physical
and mental forces are the sources in this type of business.
The employee provides services mentally or physically to businessmen
involving all kind of businesses then he is a service provider and his client is
who that hired his services.
Everyone who is hiring employee wants to keep him on rules and
regulations which he makes besides this government makes rules for the
betterment of employees so there will be two rules are applied person and
state, the state rules are common in every business which has to adapt to
every businessman.
But unfortunately, our here the employee is not considered the services
provider but he is considered the hired person like things which are
obtained on rent because of the reason the word employee changed to
hiring staff and the word fire is used to let him off.
Every person who will give something for something wants to have it
according to his desire and the end result of work which he keeps in mind
he requires it from the man to whom he acquired services of his own
planning then he makes plan and give it to the man who will complete it.
The same is applied to business; the business man who is not investor but
also planner in business and delivered his plan to others can say manager,
supervisor, and labors.

The persons who are the player carry his ball to goal. It is separate talk that
they have been given something for their struggles in reaching the goal but
cannot be overlooked them in the sharing of success because nobody is
nothing for nothing.
The nature of man is to live free in thinking, talking, working and showing
him super in all conditions. Sometimes these things move him wrong side
because everything has it opposite like good thinking and bad thinking,
good talking and bad talking, good working and bad working then to control
opposites, the rules and regulations are formed and cannot be freed to
think, talk and work against them but freedom in thinking, talking and
working is a separate matter discussable.
The democracy is a good practice in staff but in the limit of rules and
regulations.
Writer’s view

HELP FOR EDUCATION AND NEED
AQEEL RAZA
A/C # “PK60SONE0002302010046285”
SONERI BANK LTD.
Email: aqeelraza@live.com

The Functions of Management

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