Functional areas of management

1. Planning …Thinking before doing
“Planning is an intellectual process, the conscious determination of course of
action basing decision on purpose, facts and considered estimates”
Koontz and O’Donnel
1. Goal oriented 6. Intellectual process
2. Primary function 7. Flexible
3. Pervasiveness 8. Involves choice
4. Forward looking 9. Integrated process
5. Continuous process 10. Addresses economy and efficiency

2. Importance of planning
1. Planning helps in realizing objectives
2. planning makes activities meaningful
3. planning reduces the risk and uncertainty
4. Planning facilitates decision making
5. planning enhances efficiency
6. planning helps in co ordination
7. planning is the basis of control
8. Reduces wastages.. Time , resource, money..
9. Brings creativity, innovation, changes

3. Principles of planning
1. Principle of contribution to objectives
2. Principle of pervasiveness of planning
3. Principle of limiting factor
4. Principle of flexibility
5. Principle of navigational change
6. Principle of primacy of planning
7. Principle of planning premises
8. Principle of alternative or choice

4. Limitations of planning / steps
1. Costlier/ expensive
2. Time consuming
3. Rigidity
4. False sense of security
5. Gives only a probable result
1. Setting objectives
2. Developing planning premises
3. Search for alternatives
4. Analysis of alternatives
5. Selection of the best alternative
6. Preparation of sub plans
7. Routing, scheduling,
8. Communication
9. Implementation
10. Follow up and correction

5. Organising
Organising is the function of identifying and grouping the activities to be performed,
defining and delegating authority and responsibility and establishing relation for the
purpose enabling people to work most effectively together in the accomplishment of
objectives
1. Identifying the activities 2. Grouping the activities
3. Defining and delegating authority 4. Fixing responsibility
5. Establishing relationship 6. Co ordinating
7. Accomplishment of objectives

6. Nature or features of organizing
1. Objective oriented
2. Division of work
3. Departmentation…grouping
4. Functional definition
5. Delegation of authority
6. Co ordination
7. Authority - responsibility relation

7. Importance / significance of organising
1. Helps to realize objectives
2. Work specialisation
3. Clarity in work/role
4. Avoidance of work duplication
5. Clear definition of authority and responsibility
6. Effective administration
7. Brings co ordination
8. Subordinate development
9. Unity of Command

8. Principles of organising
1. Principle of unity of objective
2. Principle of specialization
3. Parity of Authority- responsibility
4. Principle of co ordination
5. Principle of span of control
6. Principle of unity of command
7. Principle of functional definition
8. principle of scalar chain
9. principle of delegation
10. principle of exception
11. principle of efficiency

9. Importance of delegation / Principles of delegation
1. Relief to top
2. Specialisation
3. Motivation
4. Speedy completion
5. Executive development
6. Base of authority –responsibility
relation
1. Principle of functional definition
2. Parity of authority-responsibility
3. Principle of exception
4. Principle of absoluteness of
accountability
5. Principle of unity of command
6. Principle of scalar chain

10. Guidelines for an effective delegation/ Difficulties
1. establishment of goal
2. defined authority
3. adequate authority
4. unity of command
5. no delegation of accountability
6. proper communication
7. motivation
8. creating environment
Difficulties
1. lack of confidence in sub.
2. I can do better policy
3. inability to direct others
4. fear of criticism
5. lack of confidence
6. lack of motivation
7. lack of proper communication

11. decentralisation
Merits
1. Reduces work load
2. Specialisation
3. Efficiency
4. Subordinate development
5. Early achievement of targets
6. Effective control
Demerits
1. Difficulty in co ordination
2. Expensive
3. Lack of uniformity
4. Delay in decisions

12. Factors of decentralisation
1. Size of the organization
2. Nature of work
3. Nature of subordinates
4. Presence of communication
5. Degree of diversification
6. Approach of top
7. Distribution of units
Organisation culture
Organisational culture is a system of shared
beliefs and attitudes that develop within an
organization and guides the behaviour of its
members.
Organisational culture is based on shared
values, attitudes, beliefs, customs, and
written and unwritten rules that have been
developed over time and are considered
valid.

13. Types of OC
1. Normative Culture – Existing rules, norms, policies………
2. Pragmatic culture- give more importance to customers
3. Baseball culture- importance to employees
4. Academy culture- impart culture through training, vision, mission……..
5. Club culture- such people are recruited
6. Tough guy culture- employees are in a close watch…feedback
7. Process culture- follow the ideologies, process and procedure

14. Significance of staffing
1. human resource as an asset
2. Heavy investment
3. Long term effect
4. Cost may surpass investment
5. Impact on the entire organisation
6. Determines the future of the org.
Steps
1. man power planning
2. Job analysis
3. Recruitment
4. Selection
5. Placement
6. Induction
7. Training
8. Performance appraisal
9. Compensation
10. Promotion transfer

15. Directing.. Telling people what to do and seeing that they do it in the
best possible manner…………………. Earnest dale
Supervision
Motivation
Leadership
communication
Importance
1. Initiates action
2. Integrating function
3. Means of motivation
4. Brings changes
5. Provides stability and balance

16. Controlling is a process by which managers assure that actual
activities and results are in conformity with the planned activities and
results.
Importance
1. Realization of objective
2. Corrective function
3. Discipline
4. Reduces wastages/economy
5. Minimising errors
6. Quality assurance
7. Essence of planning
Features
1. End function
2. Forward looking
3. Essence of planning
4. Positive function
5. Continuous function

17. Steps tools/techniques
1. Setting standards
2. Measuring actual performance
3. Comparison of actual v. std
4. Identifying reasons for deviation
5. Taking corrective action
Traditional
1. Observation
2. Statistical reports
3. Break even analysis
4. Budget and budgetary control
Modern
1. ROI
2. Ratio analysis
3. Responsibility accounting
4. Management audit
5. PERT and CPM
6. MIS