FUNCTIONS OF A MANAGER AS APPLICABLE TO AN INDUSTRY

The functions of a manager would vary from industry to industry. Typically a manager is given a
task to execute or a project to manage. There are targets set before the task is undertaken. These
targets are set by the higher management of the firm.
A manager will normally have a team of individuals working with him. His responsibility
would be to ensure that the task is completed in the given span of time by optimally utilizing the
skill sets of his team members. His job will include a lot of planning, coordinating, organizing,
reporting and motivating.
A manager will also have to play the role of a fire-fighter whenever a crisis situation occurs.
He will need to do all this and at the same time not lose focus on the task at hand. There is an old
saying - "Management is a myth" because only mismanagement is visible.

Functions of Managers

Regardless of the type of the industry, every manager has to perform certain basic managerial
functions such as planning, organizing, staffing, leading and controlling.

• Planning:

Planning is the process of setting goals, and charting the best way of action for
achieving the goals. This function also includes, considering the various steps to be
taken to encourage the necessary levels of change and innovation.

For example, if a company is planning for a promotional campaign, then the manager
responsible for the campaign has to chart out actions that are in the best interest of the firm.

• Organizing:

Organizing is the process of allocating and arranging work, authority and resources, to
the members of the organization so that they can successfully execute the plans.
In many retail outlets, departments are organized (inventory department etc.), based on the
nature of the job (product packing, grading, pricing, inventory etc.)

• Staffing:

Staffing consists of recruiting, training and developing people, who form part of the
organized efforts to contribute towards organizational growth.

For instance, recruiting programmers and analysts for a company. Training and developing
them to achieve organizational goals forms a part of the staffing activity.

• Leading:

Leading involves directing, influencing and motivating employees to perform essential

tasks. This function involves display of leadership qualities, different leadership
styles, different influencing powers, with excellent abilities of communication and
motivation.

For instance, Sam Walton - founder of Wal-Mart, leadership style was instrumental for the
roaring success achieved by the retail giant. He always enjoyed interacting with his employees.
He also made it a practice to visit each store, at least once in a year. He also insisted that the top
level executives should visit the stores, and interact with employees.

• Controlling:

Controlling is the process of devising various checks to ensure that planned

performance is actually achieved. It involves ensuring that actual activities confirm to
the planned activities. Monitoring the financial statements, checking the cash registers
to avoid overdraft etc, and form part of this process.

The Essentials of control activities are:

• Setting performance standards.

• Determining the yard-stick for measuring performance.

• Measuring the actual performance.

 • Comparing actual with the standard.

• Taking corrective actions, if actual do not match with standards.

COORDINATION AS A TASK OF A MANAGER

Coordination is a voluntary effort of individuals to work together and to help each other. It is a
managerial effort of harnessing the human resources. The term coordination is more
comprehensive than the term cooperation. Coordination includes the task of the manager to issue
proper orders to the right people at the right time so that there is unity of objectives. Cooperation
is equally essential to develop team spirit and perfect understanding among the employees.
As an executive leader, a manager has to perform the task of coordination, which he cannot
escape.
Coordination is based on unity of objective: the very purpose of coordination is to accomplish
the objectives of organization. So, all the efforts of different groups should be directed towards
the accomplishment of the common objectives.
Coordination should provide for unity of action: all the actions of the individuals to be
blended and directed towards a productive action. Every member should work together with a
sense of team spirit.
Coordination is possible when a manager pays heed to the following aspects:
• Proper planning and progressive outlook.
• Departmentation, delegation and decentralization.
• Direct contacts and personal communication with individuals.
• Having regular staff meetings.
• Encouraging participation and group discussion.
• Developing workable internal strategies and programs.

Coordination will increase productivity, efficiency, performance, standards

and regularity. It involves harmony and understanding. Therefore, coordination is very
 essential for the organization to achieve its goals and managers should focus on maintaining
coordination in the organization.

HENRI FAYOL IS REGARDED AS FATHER OF

“MODERN MANAGEMENT THEORY”

Henri Fayol is described as the father of modern management theory. He emphasized that
management skills are universal. In fact, a number of current ideas and practices in management
can be directly attributed to him.

Henri Fayol is the managing director of a large French coal mining firm where he developed a
blueprint of a cohesive doctrine of management. He originated the symbol of formal
organization, the organization chart which remains the chief instrument of modern business
management.
On the basis of Fayol’s experience as a top level manager, Henri Fayol realized that it is possible
to develop theories about management that could be taught to individuals with administrative
responsibilities. In 1916, he published a monograph titled “General and Industrial
Management.”
Fayol has classified industrial and business operations into six distinct activities, which are:
• Technical: Producing manufacturing products.
• Commercial: Buying raw materials and selling products.
• Financial: Acquiring and employing capital.
• Accounting: Recording and taking stock of costs- Profit and Losses.
• Security: Protecting employees and property.
• Managerial: Administering the activities of an organization by performing certain basic
functions based on principles.

Fayol has proposed that there are 6 primary functions of management and 14 principles of
management.
Primary functions:

1. forecasting
2. planning
3. organizing
4. commanding
5. coordinating
6. controlling

Henri fayol gave 14 principles of management theory.

Henry Fayol’s 14 Principles of Management Theory:

• Division of work: the more staff socialized, the more efficient they can perform their
work.
• Authority and Responsibility: Authority is the right to command and the power to make
people obey. Along with authority goes responsibility.
• Discipline: Employees need to obey and respect the rules that govern the organization.
• Unity of command: Every employee should receive orders and instructions from only one
superior.
• Unity of direction: There should be one manager and one plan for all operations having
the same objective.
• Subordination of individual interests to the general interest: the general interests of the
organization must take precedence over individual/personal interests.
• Remuneration: Workers must be paid a fair wage for their services.
• Centralization: Whether decision making is centralized or decentralized is a matter of
proper proportion.
• Scalar chain: It is a graded chain of authority from top to bottom through which all
communications flow.
• Order: people and materials should be in the right place and right time.
• Equity: Manager should be fair, just and impartial and unbiased to their subordinates.
• Stability of tenure of personnel: The management must implement a plan of action which
encourages long range commitment of employees.
 • Initiatives: The opportunity to perform independently is an essential component of
employee growth and development.
• Esprit de corps: Need for teamwork and the importance of effective communication in
obtaining it.

VARIOUS GROUPS IN WHICH INDUSTRIAL ACTIVITIES

CAN BE DIVIDED

A business is normally organized by its functions, e.g. marketing department, accounts

department and so on. This is because being grouped together allows the functions to benefit
from specialization and division of labor. This leads to lower unit costs and a greater efficiency.
However it can mean that there is departmental rivalry.

Larger businesses might have a number of businesses within the whole company. This would be
coordinated by a Head Office, where all the major decisions are made.

 Board of Directors

The Board of Directors is the chief policy making body in the company. The shareholders elect
the directors to the Board. The Board fixes the objectives for the company and appoints senior
executives, including the managing director to achieve the goals which have been set. Boards
meet regularly, perhaps once per week and some directors will have positions within the
company such as sales director. Others will be brought in because of expertise in certain areas.

 The Company Secretary

The company secretary is the administrator for the Board of Directors and is responsible for the
company’s compliance with legal requirements. Various Companies’ Acts have been passed
which control the behavior of limited companies. The company secretary ensures adherence to
the law.

 The Managing Director

The managing director is the chief executive. He or she leads the management team and is a
member of the Board. Responsibility for the management team’s efficiency lies with the
managing director.

 Administration

This is the office function which is involved in the following:

(a) Provides a communication network between members of the company, other members and
customers.

(b) Collects information which is stored and made available to management.

(c) Other jobs, telephoning, filing, data storage, photocopying, word processing.

 Accounts

Provides a detailed record of the money coming in and going out of the business and prepares
accounts as a basis for financial decisions.

The Chief Accountant

The chief accountant will be responsible for keeping the financial records of the company.
Accounts are designed to answer the following questions:

(a) How much is owed to the business?

(b) How much profit has been made?

(c) What taxes are due to be paid?

(d) How do the liabilities (debts) compare with the assets?

(e) How can the accounts be used to make the right policy decisions?

 Human Resources or Personnel

It deals with all the recruitment, training, health and safety and pay negotiations with
unions/workers.

The Personnel Manager

The personnel manager has a wide variety of tasks in the organization:

(a) Staff records such as time and attendance records, progress reports and academic
qualifications.

(b) Manpower planning which ensures the work-force is in the required place, at the required
time, in sufficient numbers and with appropriate skills.

(c) Recruitment and selection.

 Production

Makes sure that the production plans are met on time and products of the right quality are
produced.

 Purchasing

Buys all the raw materials and goods required for production.

 Sales and marketing

Sales function deals with all aspects of selling to customers; the marketing function carries out
marketing research, organizes advertising and product promotion.

 Transport and Distribution

It is important that raw material and goods are transported quickly and efficiently between
locations. Choices are made with regard to the type of transport. By distribution we mean all
aspects of retailing and wholesaling.