fn's of mgmt

8/3/2019 Fn's of Mgmt

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MODULE 1.3


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CONTENTS

Functions of Management

Planning:Objectives, MBO Policies, Premises Merits & Demerits

Organizing:Elements, Principles, Of Exception, Departmentation,Delegation of Authority, Internal Organisation-Line & Staff

Decision Making :Meaning & steps

Motivation: Meaning, Theory X & Y, Hierarchy of Needs

Controlling: Meaning & Steps

Leadership: Meaning & Types


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PLANNING

Setting missions and objectives as well asthe actions to achieve them which requiresdecision-making i.e., choosing a course of

action from among alternatives

Planning is a bridge between where we areand where we want to go


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TYPES OF PLAN

Short Range & Long Range Plans

Strategic & Operational Plans

Policies & Procedures Plans Budgets Plans

Projects Plans


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SHORT-RANGE AND LONG-RANGE PLANS

Short-range Plans cover 1 year or less

Intermediate-range Plans cover 1 to 2 years

Long-range Plans look 3 or more years into the future

Top management is most likely tobe involved in setting long-range

plans and directions for the

organization as a whole, while lower

management level focus more on

short-run plans that help achieve long-term objectives.


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STRATEGIC AND OPERATIONAL PLANS

Strategic Plans set broad, comprehensive,and longer-term directions.

Strategic planning involves:

Determining objectives for the

entire organization.

Describing what and where it

wants to be in the future.


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Operational Plans define what needs to

be done in specific functions or work units

to implement strategic plans.

PRODUCTIONPLANS

dealing with the methods andtechnology needed by people in their work

FINANCIALPLANSdealing with money required to

support various operations

FACILITIESPLANSdealing with facilities and

work layouts

MARKETINGPLANS

dealing with requirements of

selling and distributing goods or services

HUMANPLANSdealing with the recruitment,

selection, and placement of people into various jobs

Typical operational plans for a businessfirm include:


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POLICIES AND PROCEDURES

POLICY communicates broad

guidelines for making decision and

taking action in specific

circumstances.

RULES or PROCEDURES describeexactly what actions are to be taken

in specific situations. They are often

found stated in employee

handbooks or manuals as SOPs

standard operating procedures.


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BUDGETS AND PROJECTS

BUDGETS are single-use plans that commit resources to

activities, projects, or programs. They are powerful tools

that allocate scarce resources among multiple and often

competing uses.

FIXEDBUDGET

allocates a fixedamount of resources for a specific purpose.

FLEXIBLEBUDGETallows the

allocation of resources to vary in

proportion with various levels of activity.

Z

ERO-BASED

BUDGET

deals with thisproblem by approaching each new budget

period as it if were brand new.


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PROJECTS

PROJECTS one time activity that have clear beginning and

end points.

PROJECT MANAGEMENTinvolves making sure that activities

required to complete a project are completed on time, within

budget, and in ways that otherwise meet objectives.


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STEPS IN PLANNING

Being aware

of

Opportunities

Establishing

Objectives

Developing

Premises

Determining

Alternative

Courses

Evaluating

Alternative

Courses

Selecting aCourse

FormulatingDerivative

Plans

QuantifyingPlans by

Budgeting


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MBO (MANAGEMENT BY OBJECTIVES)

A comprehensive managerial system thatintegrates many key managerial activities ina systematic manner is consciously directed

toward the effective & efficient achievementof organizational and individual objectives


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ADVANTAGES

Improvement of mgmt through result-orientedplanning

Clarification of organizational roles andstructures as well as Delegation of authority

Encouragement of commitment to personal &organizational goals

Development of effective controls thatmeasure results & lead to corrective actions


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DISADVANTAGES

Failure to give guidelines to goal setters

Failure to the philosophy of MBO

Difficulty of verifiable goals with the rightdegree of flexibility


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Organizing


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WHAT IS AN ORGANISATION?

A group of people working towards a definedset of goals and objectives.

Types:

Functional Product

Place/Territory/Geographic

Line/StaffMatrix


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FUNCTIONAL GROUPING

Production Marketing AccountsHuman

ResourcesIT

Board of Directors

Chief Executive


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PRODUCT STRUCTURE

Washing Machine

Division

Lighting

Division

Television

Division

CorporateManagers

CEO

Corporation


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GEOGRAPHIC STRUCTURE

Northern

Region

Western

Region

Southern

Region

Eastern

Region

CorporateManagers

CEO

Corporation


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PROCESS OF ORGANISING

Identification of Activities

Grouping of Activities

AssigningActivities

Delegation of Authority

Divisionof Work

Departmentation

Hierarchy

Decentralization


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LEVELS OF MANAGEMENT

Assistants

Supervisors

Junior Managers

Managers

Senior Managers

Board of Directors

Chief ExecutiveThis is how we wouldnormally see anorganisation structure.

This is an organisationchart of a business.

There is another way

we can view the sameorganisation.


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ORGANISATION PYRAMID

Chief Executive

Board of Directors

Senior Managers

Managers

Junior Managers

Supervisors

Assistants


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SPAN OF CONTROL

Span of control The number of employees managed by each

manager.

Narrow spans of control have feweremployees reporting to each manager thando wide spans of control.

Organizational height Tall organizations have many layers. Short (or flat) organizations have few layers.


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President

Vice President

Sales Manager

Salesperson

Narrow Span ofControl

President

SalesPerson-1

SalesPerson-

SalesPerson-3

SalesPerson-4

Wide Span of Control


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HIERARCHICAL STRUCTURES

Tall

Flat


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TALL STRUCTURES

Many levels of

management

Managers will havenarrow span of

control

Management posts

usually specialised Clearly defined roles


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FLAT STRUCTURES

Few levels ofmanagement

Managers havewider spans ofcontrol

Fastercommunications

Quicker decision-making


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OTHER ELEMENTS OF STRUCTURE

Centralization Most authority is held by high-level

managers. Middle and supervisory managers are not

allowed to make many decisions.

Decentralization Authority is spread among several divisions

or managers. Autonomous divisions can make their own

decisions and act independently


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CENTRALISATION

Control and decision-making lies with topmanagement in Head

Office or Head QuartersHQ


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DECENTRALISATION

Control and decision-making is delegated todepartments

Relieves seniormanagement fromroutine, day-to-daytasks

HQ


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DECENTRALISATION

Advantages

Motivates staff

Empowers staff

Decision-makingquicker

Decisions can match

local needs Reduces operating

expenses byeliminating

unnecessary positions

Disadvantages

Decisions may differfrom other branches

Transfer of staff maylead to confusion due todifferent practices

Less supervision


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LINE ORGANISATION

Characteristics: All managers have line authority to direct and controlsubordinates. Used in small firms / departments

Advantages: Simple organisation, clear authority, quick decisions, lowcost

Disadvantages: No support to line managers from subordinates who

have specialised knowledge / skills. Less time for planning / analysis

HeadMarketing

SalesManager

Area SalesManager1

Area SalesManager3

Area SalesManager2

Area SalesManager4

salespeople salespeople salespeople salespeople


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LINE AND STAFF ORGANISATION

Characteristics: Specialist staff managers are available for senior

marketing / sales managers. Staff managers role is to assist / advise line

managers. Used in medium and large size organisations

Advantages: Better marketing decisions, superior sales performance

Disadvantages: High cost and coordination, slower decision making,

conflict may arise if staff managers role is not clear

Head-Marketing

Marketing ResearchManager

Sales ManagerPromotional

Manager

Customer ServiceManager

Area Sales

Manager-1

Area SalesManager-1

Area SalesManager-1

Salespeople Salespeople Salespeople


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Matrix Organisation

A structure in which thetasks of the organization aregrouped along twoorganizational dimensions

simultaneously.

Such structures are used

to tackle complex problems


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Decision Making- An essence toproblemsolving


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DECISION MAKING AND ITS PROCESS

The process of responding to a problem bysearching for and selecting a solution or courseof action that will create value for organisationalstakeholders.

Selection of a courseof action from amongst

the alternatives.

It is at the core ofplanning


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Example-The Decision MakingProcessIdentification of a problem

Identification of Decision Criteria

Allocation of weights to criteria

Development of alternatives

Analyzing of alternatives

Selection of alternatives

Implementation of alternatives

Evaluation of decision alternatives

My sales Reps need new computers!

Memory and Storage, Display Quality,Better Life,Warranty, Carrying weight

Memory and Storage-10, DisplayQuality,-8, Better Life-6,Warranty -7,Carrying weight-3

Toshiba, HP, Sony Vaio, Gateway,Apple iBook, Lenovo, Dell

Toshiba, HP, Sony Vaio, Gateway, AppleiBook, Lenovo, Dell

Toshiba, HP, Sony Vaio, Gateway, AppleiBook, Lenovo, Dell

Toshiba!


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Contd next ppt with Motivation

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