Basic functions of management



Management operates through various functions, often classified as planning, organizing, leading/motivating, and controlling.

  • Planning: Deciding what needs to happen in the future (today, next week, next month, next year, over the next 5 years, etc.) and generating plans for action.
  • Organizing: (Implementation) making optimum use of the resources required to enable the successful carrying out of plans.
  • Staffing: Job Analyzing, recruitment, and hiring individuals for appropriate jobs.
  • Leading/Motivating: Exhibiting leadership and motivational skills in order to encourage others to play an effective part in achieving plans and ensure willing participation in the organization on the parts of workers.
  • Controlling: Monitoring, checking progress against plans, which may need modification based on feedback.

"Students who need to get topics precribed by Anna Universtiy are advised to follow the link provided below"
POM MG1351
 
  1. Question bank :
  1. lesson from peter drucker
  1. Subject content for POM
    http://mechsuman.blogspot.com/2008/12/pom-unit-wise-explained.html
  2. http://mechsuman.blogspot.com/2008/12/case-studies-part-iii.html
  3. http://mechsuman.blogspot.com/2008/12/case-studies-part-ii.html
  4. http://mechsuman.blogspot.com/2008/12/pom-case-studies.html
 
Formation of the business policy

  • The mission of the business is its most obvious purpose -- which may be, for example, to make soap.
  • The vision of the business reflects its aspirations and specifies its intended direction or future destination.
  • The objectives of the business refers to the ends or activity at which a certain task is aimed.
  • The business's policy is a guide that stipulates rules, regulations and objectives, and may be used in the managers' decision-making. It must be flexible and easily interpreted and understood by all employees.
  • The business's strategy refers to the coordinated plan of action that it is going to take, as well as the resources that it will use, to realize its vision and long-term objectives. It is a guideline to managers, stipulating how they ought to allocate and utilize the factors of production to the business's advantage. Initially, it could help the managers decide on what type of business they want to form.

 How to implement policies and strategies

  • All policies and strategies must be discussed with all managerial personnel and staff.
  • Managers must understand where and how they can implement their policies and strategies.
  • A plan of action must be devised for each department.
  • Policies and strategies must be reviewed regularly.
  • Contingency plans must be devised in case the environment changes.
  • Assessments of progress ought to be carried out regularly by top-level managers.
  • A good environment is required within the business.

 

The development of policies and strategies

  • The missions, objectives, strengths and weaknesses of each department must be analysed to determine their roles in achieving the business's mission.
  • The forecasting method develops a reliable picture of the business's future environment.
  • A planning unit must be created to ensure that all plans are consistent and that policies and strategies are aimed at achieving the same mission and objectives.
  • Contingency plans must be developed, just in case.

All policies must be discussed with all managerial personnel and staff that is required in the execution of any departmental policy.

Where policies and strategies fit into the planning process

  • They give mid- and lower-level managers a good idea of the future plans for each department.
  • A framework is created whereby plans and decisions are made.
  • Mid- and lower-level management may add their own plans to the business's strategic ones.

Managerial levels and hierarchy

The management of a large organization may have three levels:

  1. Senior management (or "top management" or "upper management")
  2. Middle management
  3. Low-level management, such as supervisors or team-leaders
  4. Foreman
  5. Rank and File
Top-level management
  • Require an extensive knowledge of management roles and skills.
  • They have to be very aware of external factors such as markets.
  • Their decisions are generally of a long-term nature
  • Their decisions are made using analytic, directive, conceptual and/or behavioral/participative processes
  • They are responsible for strategic decisions.
  • They have to chalk out the plan and see that plan may be effective in the future.
  • They are executive in nature.
Middle management
  • Mid-level managers have a specialized understanding of certain managerial tasks.
  • They are responsible for carrying out the decisions made by top-level management.
Lower management
  • This level of management ensures that the decisions and plans taken by the other two are carried out.
  • Lower-level managers' decisions are generally short-term ones
Foreman / lead hand
  • They are people who have direct supervision over the working force in office factory, sales field or other workgroup or areas of activity.
Rank and File
  • The responsibilities of the persons belonging to this group are even more restricted and more specific than those of the foreman.

HENRY FAYOL'S 14 PRINCIPLES

Fayol listed fourteen, based on his experience. They are summarized in the perspective.

            1.Division of work.
This is the specialization that economists consider necessary for efficiency in the use of labor. Fayol applies the principle to all kinds of work, managerial as well as technical.


           2. Authority & responsibility. Here Fayol finds authority and responsibility to be related, with the latter arising from the former. He sees authority as a combination of official factors, deriving from the manager’ position and personal factors.

 

  1. Discipline. Seeing discipline as “respect for agreements which are directed at achieving obedience, application, energy, and the outward marks of respect. Fayol declares that discipline requires good superiors at all levels.

 

  1. Unity of command. This means that employees should receive orders from one superior only.

 

  1. Unity of direction. According to this principle, each group of actives with the same objective must have one head and one plan.

  2. Subordination of individual to general interest. This is self explanatory when the two are found to differ, management must reconcile them.

 

  1. Remuneration. Remuneration and methods of payment should be fair and afford the maximum possible satisfaction to employees and employer.

 

  1. Centralization. Without using the term “Centralization of authority.” Fayol refers to the extent to which authority is concentrated or dispersed. Individual circumstances will determine the degree that will give the best overall yield.

 

  1. Scalar chain. Fayol thinks of this as a chain of superiors from the highest to the lowest ranks, which, while not to be departed from needlessly, should be short circuited when to follow it scrupulously would be detrimental.

 

  1. Order. Breaking this into material and social order, Fayol follows the simple adage of a place for everything and everything in its place.

 

  1. Equity. Loyalty and devotion should be elicited from personnel by a combination of kindliness and justice on the part of managers when dealing with subordinators.

 

  1. Stability of tenure. Finding unnecessary turnover to be both the cause and the effect of bad management, Fayol points out its dangers and costs.

 

  1. Initiative. Initiative is conceived of as the thinking out and execution of a plan. Since it is one of the keenest satisfactions for an intelligent man to experience.

 

  1. Esprit de corps. This is principle that “in union there is strength” as well as an extension of the principle of unity of command, emphasizing the need for teamwork and the importance of communication in obtaining it.

    KEY MANAGEMENT SKILLS

     

    In addition to having a knowledge base, managers need certain skills to carry out the various functions of management. A skill is the ability to engage in a set of behaviors that are functionally related to one another and that lead to a desired performance level in a given are. For managers, three types of skills are necessary :

     

    Technical Skills

    Technical skills that reflect both an understanding of and a proficiency in a specialized field. For example, a manager may have technical skills in accounting, finance, engineering, manufacturing, or computer science.

     

    Human Skills

    Human skills are skills associated with manager’s ability to work well with others, both as a member of a group and as a leader who gets things done through other.

    Conceptual Skills

    Conceptual skills related to the ability to visualize the organization as a whole, discern interrelationships among organizational parts, and understand how the organization fits into the wider context of the industry, community, and world. Conceptual skills, coupled with technical skills, human skills and knowledge base, are important ingredients in organizational performance.

     

    Function of Management

    The relative importance of planning, organizing, leading and controlling varies somewhat depending on managerial level. Planning tends to be more important for top managers than for middle or first-line managers. This is primarily because top managers are responsible for determining the overall direction of the organization, a charge that requires extensive planning.

    At the same time, organizing is somewhat more important for both top and middle managers than for first-line managers. This stems from the fact that it is the top and middle levels of management that are mainly responsible for allocating and arranging resources, even though this function is also performed to some extent by first-line supervisors.

    In contrast, leading substantially more important for first-line supervisors than for managers at higher levels. Since first-line supervisors are charged with the ongoing production of goods or services, they must engage in substantially higher amounts of communicating, motivating, directing, and supporting. All of which are associated with leading.

    Finally, the management function that is most similar at all three hierarchical levels is controlling. This similarity reflects a common degree of emphasis at all levels on monitoring activities and taking corrective action as needed.

     

    Management Skills

    The three levels of management also differ in the importance attached to the key skills discussed earlier: technical, human, and conceptual. Generally, conceptual skills are most important at the top management level. Top managers have the greatest need to see the organization as a whole, understand how its various parts relate to one another and associate the organization with the world outside. Whirlpool’s David Whitwam points out that looking at an organization as a whole can be difficult, particularly when a company is doing well and there is not imminent crisis on the horizon. He said that Whirlpool was doing well domestically, but nevertheless, top management faced up to the challenge of looking at the big picture because they could envision their future growing more difficult and complicated. When they took a more holistic view, they realized that they had to globalize to survive and prosper.

     

    In contrast, first-line managers have the greatest need for technical skills, since they directly supervise most of the technical and professional employees who are not manager. Yet middle managers, too often need sufficient technical skills so that they can communicate with subordinates and recognize major problems. Even top managers must have some technical skills, particularly when technology is an important part of the products or services their organizations produce.

    Not surprisingly, all three levels of management require strong human skills because they all must get things done through people. Ironically, promotions to first-level management are often based on individuals good technical skills, with little consideration given to the adequacy of their human skills. Managers who lack sufficient human skills usually run into serious difficulties when they attempt to deal with individuals inside and outside their work units.

    Although Mintzberg argued that the 10 managerial roles he identified apply to all levels of management he did note that there may be some differences in emphasis at various levels. Subsequent research by others suggests that the figurehead role and several others such as liaison and spokesperson may become more important ass a manager moves up the hierarchy. On the other hand, the leader role appears to be more critical at the lower levels, a finding that supports the idea that the leading function itself has greater importance for lower-level managers than for those higher up.

    In a study of the importance of the various roles, managers at all levels gave particularly high ratings to the entrepreneurial role. Several experts on innovation, however, argue that the entrepreneurial role varies in some important way depending on a manager’s level in the hierarchy.

     

    Planning

    Planing is thinking in advance or before doing something .All kinds of organizations do planing. Planing helps us in looking into the future.Planing establishes goals or objectives and identifies the ways to achieve them. A plan is a predetermined course of action to be taken in future. Planning has been defined as follows:

    Counts and O’Donnell

    “Planing is an intellectual process, the conscious determination of courses of action,

    the basing of decisions on purpose, facts and considered estimates.”

    At another place they say

    ”Planning is deciding in advance what to do,how to do it,

    when to do it and who is to do it.”

     

    George Steiner

    “Planing is a process that beings with objectives; defines strategies, polices,

    and detailed. Plans to achieve them”.

    Peter Drucker

    “Planing is the continuous process of making present entrepreneurial (risk taking) decisions systematically and with best possible knowledge of their futurity.

     

    Planning process :Steps in planning

    The process of planning involves the following steps

    • Analysing environment. At the outset the internal and external environment is analyzed in order to identify company ;s strengths and weaknesses (in internal environment)and opportunities and threats (existing in the external environment) this is also known as SWOT (Strengths Weaknesses Opportunities and Threats ) analysis .

    • Establishing objectives or goals in the light of the environmental scanning (study)clear or probable opportunities that can be availed are identified in order to avail them objectives or goals are clearly defined in specific terms along with priorities in all the key areas of operations major problems associated with such objectives are also identified and defined ,so that there may be special emphasis on their planned solutions.

    • Seeking necessary Information :

    All relevant data and facts are collected from internal and external sources such as Availability of supplies, physical and human recourses of the company , finance of disposal, relevant government policy etc then such collected information and factors are analyzed. These information can be used in two ways

    1. To make necessary modifications in objective and goals

    2. To take help them in premising assumption.

    Establishing the planing premises

    In order to develop consistent and coordinate plans ,it is necessary that planing is based upon carefully considered assumption and predictions

     

    Identifying the alternative course of action.

    After established the goals or objective and taking other related steps , feasible alternative programs or course of action are searched out . Impossible or highly difficult propositions are left out .

     

    Evaluating the alternatives.

    Problems consequences of each alternative course of action in terms of its pros and cons (eg Cost, benefits, risks etc) are assessed and then relative importance of each of them is found out by looking at their overall individual strengths and limitations especially in the light of present objective and the environment of the company.

     

    Selecting the alternative or Course of action.

    The alternative which appears to be most feasible and conducive to the accomplishment of company’s objective, is selecting the final plan of action as strategy.

     

    Preparing the Derivative plans

    Derivative plans involve short rang operating plans that are useful in day-to-day operations these plans are developed through the

    1 Schedules

    2 Budgets

    3 Programmes

    4 Procedures

    5 Methods

    6 Rules & Polices etc.

    These plans are prepared in different departments ,and their timings and sequence are also specified .

     

    Advantages benefits of Planning

    1. Provide a sense of direction.

    Without planning manager would fail to make proper decisions , and hance there would be chaos ,not activity in the organisation. Planing desired decision making and efforts on guided path leading to the desired destination.

    1. Offsets (balance ) future uncertainty and change.

    Uncertainty and risk are inevitably associated with business and its operations. Through planing cannot eliminate these two element plans of nature and risk because they provide a better understanding of likely future events.

    1. Focuses attention on objective and results.

    Organisation exists because people have common objective. Managers are charge of organisation for the purpose of attaining results .if attention are not focused on objective and results.

    1. Causes efficient operations.

    Planing make things occur ,improves the competitive strength of the organisation, guides proper utilisation channels for resources and facilities integrates resources and efforts, aligns internal and external environment

    1. Provides the basis for decentralization

    Decentralisation of authority signifies dispersal of decision making power to the lowest level in the organisation .Well-designed plans serve as guides to subordinates and reduce the risk involved in delegation of authority.

    1. Guides Rational decision making

     

    Decisions are primarily future oriented .plans cover to the future activities without plans there is no sound basis for making future oriented decision

     

    Stratigies and Policies

    STRATEGY :

    The determination of the purpose and the basic long term objectives of an enterprise, and the adoption of course of action and allocation of resource necessary to achieve these aims .

     

    POLICIES :

    General statements or understanding that guide thinking in decision making, the essence of policies is the existence of discretion , with in certain limits, in guiding decision making .

    Both strategies and policies give direction to plans. They provide the framework for plans and serve as a basis for the development of tactics and other managerial activities .

     

    The Strategic Planing Process Steps

    • INPUTS:

    It includes

    • People

    • Capital

    • Managerial skills

    • Technical skills

    • Goals of claimants

     

    • Enterprise Profile :

    It is the starting point for determining where the company is and where it should go.

     

    • Orientation Of Top Managers:

    Orientation of top managers are important for formulating the strategy .

     

    • Purpose And Major Objectives :

    It is the endpoint towards which the activities of the enterprise are directed .

    • External Environment :

    The external environment is scanned for technological developments for products and services on the market, and for other factors necessary in determining the competitive situation of the enterprise .

     

    • Internal Environment :
      It should be audited and evaluated the firm’s resources, weaknesses and strengths .


      Management stories

There’s the story about a top salesman in the aircraft industry who messed up. He lost a $5,000,000 contract. At his desk the next morning he starts going through his papers - tidying them up, clearing his desk. He gets a phone call from his manager,

“Have you got 5 minutes? ”

“Sure” he mumbles and slowly makes his way up the stairs to his boss’ office.

As he enters the room he says “Look I know I got it wrong - I’m sorry - I’ve written my letter of resignation - here it is ” and puts it on the desk.

His manager looks at the letter, rips it in half, rips it in half again and puts it in the bin.

“You must be joking” she says smiling ” We’ve just spent $5,000,000 on your training - there’s no way you’re leaving until you’ve made that back for us.”

Source: Learning, Trust and Making Mistakes by Byron Kalies

Areas and categories and implementations of management

Dear Visitor,
This site is aimed to provide the basic fundamentals in the concepts related to mechanical Engineering. Happy Exploration.

N.Subramanian,M.E,
Webdesigner,
Concept designer.
contact him through:
subramanian.me@
gmail.com
His blog:
http://mechsuman.blog
spot.com/
There have been 9210 visitors (17915 hits) on this page!
This website was created for free with Own-Free-Website.com. Do you want your own website too?
Register for free