FUNCTIONS OF MANAGEMENT

The functions of management provide a useful structure for

organizing management knowledge. The most broad, basic and
widely accepted functions of management are: Planning,
organizing, staffing, leading, controlling, coordinating. These are
performed by every manager regardless of his/her position,
undertaking or official assignment.

The Functions of Management

Organizing

Planning Directing

Controlling
PLANNING

This involves forecasting, goal setting and decision making. It

entails selecting missions and objectives and the actions to
achieve. It requires decision making that is, choosing future
courses of action from among alternatives. Plans provide a
rational approach to achieving pre-selected objectives.

Planning is the process of systematic thought that precedes

action, during which resources in hand or likely resources are

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matched against known or predicted conditions to achieve
organizational goals.

ORGANIZING

An organization consists of people performing a multiplicity of

functions or roles. These must fit into their job objectives and into
group effort, given that they have the necessary authority, tools
and information, to accomplish the task. Organizing is that part
of managing that involves establishing an intentional structure of
roles for people to fill in an organization. This creates an
environment for human performance. Organizing involves
division of work into logical tasks and its allocation to staff, and
the structural arrangement of staff into groups and organizational
relationships.

STAFFING

This involves filing and keeping filed the positions in the

organization structure. This is done by identifying workforce
requirements, inventorying the people available, and recruiting,
selecting, placing, promoting, appraising, planning the careers of,
compensating and training or otherwise developing both
candidates and current job holders so that tasks are
accomplished effectively and efficiently.

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LEADING

Leading is influencing people so that they will contribute to

organization and group goals-it has to do with the interpersonal
aspect of managing. Leadership entails followership. And people
tend to follow those who offer a means of satisfying their own
needs, wishes and desires.

CONTROLLING

This is the monitoring and regulating of performance against set

goals and objectives. This is measuring and correcting individual
and organizational performance to ensure that events conform to
plans. It involves measuring the performance against set goals
and plans, identifying deviations from the standards and
correcting them. Controlling facilities accomplishment of plans.
Controlling entails measurement of achievement. During
controlling, one may review and amend plans.

COORDINATING

This is the essence of management. It seeks to achieve harmony

among individual efforts towards the accomplishment of group
goals. Managers must reconcile differences in individual
approaches, timing, effort or interest and also harmonize
individual goals to contribute to organization goals.

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DIRECTING

This arises out of organizing-ensuring that people are

appropriately engaged in working activities to meet goals and
plans. It involves motivating and supervising staff.
THE MANAGERIAL ROLES APPROACH

This is a newer approach to management theory and was

proposed by Mintzberg (1975). This was developed by observing
what actually mangers do to-giving rise to conclusions as to what
managerial activities (or roles) are. Mintzberg studied five CEO;s
in the USA and concluded that they do not perform the traditional
managerial functions-planning, organizing, coordinating, and
controlling. Instead they engage in a variety of activities.

To meet the many demands of performing their functions,

managers assume multiple roles. A role is an organized set of
behaviors. Mintzberg has identified ten roles common to the work
of all mangers. The ten roles are divided into three groups;
Interpersonal, informational, and decisional. The
informational roles link all managerial work together. The
interpersonal roles ensure that information is provided. The
decisional roles make significant use of the information.
The Managerial Roles

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 Interpersonal Provide
Information

Process
Informational
Information

Use
Decisional Information

The three interpersonal roles are primarily concerned with

interpersonal relationships. In the figurehead role, the manager
represents the organization in all matters of formality. He
performs formal, representational and symbolic duties. The top
level manager represents the company legally and socially to
those outside the organization. The supervisor represents the
work group to higher management, and higher management to
the work group. As a leader, the manager has a relationship with
the subordinates, motivates, communicates and coaches. In the
Liaison role, the manager interacts with peers and people
outside the organization. The top level manager uses the liaison
role to gain favours and information, while the supervisor uses it
to maintain the routine flow of work. The leader role defines the
relationships between the manager and employees.

The direct relationship with people in the interpersonal roles place

the manager in a unique position to get information. Thus the
three informational roles are primarily concerned with the
information aspects of managerial work. In the monitor role, the

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manager receives and collects information necessary for work. In
the role of disseminator, the manager transmits special
information into the organization. The top level manger receives
and transmits more information from people outside the
organization than the supervisor. In the role of spokesperson,
the manager disseminates the organizations information into its
environment. There is formal provision of information on behalf
of the organization. Thus, the top level manager is seen as an
industry expert, while the supervisor is seen as a unit of
departmental expert.

The unique access to information places the manager at the

centre of organizational decision making. There are four
decisional roles. In the entrepreneur role, the manager
initiates change. HR initiates, develops and facilitates change
and innovation. In the disturbance handler role, the manager
initiates, develops and facilitates change and innovation. In the
disturbance handler role, the manager deals with threats in
the organization. He troubleshoots problems as and when they
arise. In the resource allocator role, the manager chooses
where the organization will expend its efforts. He distributes and
arranges the use of resource (staff, finance, materials and time).
In the negotiator role, the manager negotiates on behalf of the
organization. He represents the organization in negotiation within
his area of responsibility. The top level manager makes the

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decisions about the organization as a whole, while the supervisor
makes decisions about his or her particular work unit.
In order to perform functions of management and to assume
multiple roles, managers must be skilled. A manager needs the
following managerial skills that are essential to successful
management: technical, human and conceptual.

Technical skill involves process or technique, knowledge

and proficiency.
Managers use the processes, techniques and tools of specific
area.
Human skill involves the ability to interact effectively with
people.
Managers interact and cooperate with employees.
Conceptual skill involves the formulation of ideas.
Managers understand abstract relationships, develop ideas,
and solve problems creatively. Thus technical skill deals
with things, human skills concerns people, and conceptual
skills has to do with ideas.
Diagnostic skills; used to define and understand situations
requiring problem solving processes.

A manager’s level in the organization determines the relative

importance of possessing technical, human and conceptual skills.
Top level managers need conceptual skills in order to view the
organization as a whole. Conceptual skills are used in planning

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and dealing with ideas and abstractions. Supervisors need
technical skills to manage their area of specialty. All levels of
management need human skills in order to interact and
communicate with other people successfully.

THE PRINCIPLES OF MANAGEMENT

Management
Skills
Level
Top Management Conceptu
al
Middle Huma
Management n
Technical
Supervision

Skill Distribution at various

Management Levels

Principles in management are fundamental truths explaining the

relationship between two or more sets of variables. Principles
may be descriptive or predictive-describing how one variable
relates to another. Managers who apply theory to managing must
usually blend principles with realities. The best known principles
of management are those of Henri Fayol (1841-1925). Principles
of management are flexible, not absolute and are usable
regardless of changing and special conditions. Fayol listed 14
principles based on his experience.

1. Division of work: The specialization that economists

consider necessary for efficiency in the use of labour.

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2. Authority and responsibility: Authority is seen as a
combination of official factors derived from the manager’s
position, and personal factors-experience, past service etc.
He insisted that authority goes hand in hand with
responsibility.
3. Discipline: Respect for agreements which are directed at
achieving obedience, application, energy and the outward
marks of respect.
4. Unity of Command: Employees should receive orders or
instructions from one superior only.
5. Unity of Direction: Each group of activities with the same
objective must have one head and one plan
6. Subordination of individual to group interests: When
the two are found to be in conflict, management must
reconcile them.
7. Remuneration: This should be fair and afford the
maximum possible satisfaction to employees and employer.
8. Centralization: The extent to which authority is
concentrated or dispersed.
9. Scalar Chain: Chain of superiors from the highest to the
lowest ranks.
10. Order: A place for everything (everyone) and everything
(everyone) in its place. Arrangements of things and people.
11. Equity: Loyalty and devotion should be elicited from
personnel by a combination of kindness and justice on the
part of managers when dealing with subordinates.

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 12. Stability of tenure: Assuring workers of job security.
Unnecessary turnover is both cause and effect of bad
management.
13. Initiative: The thinking out and execution of a plan. Fayol
insisted that managers should permit subordinates to
exercise it.
14. Espirit de corps: In union there is strength. Emphasizing
the need for team work and the importance of
communication in obtaining it.

EVOLUTION OF HUMAN RESOURCES MANAGEMENT

The following sub-topics will be discussed under this topic:-

a) Meaning and importance of HR
b) Evolution of HRM since the industrial revolution
c) Multi-disciplinary nature of HRM
d) Ethics and professional conduct
e) Professional conduct in Kenya

IMPORTANCE OF HR MANAGEMENT

Of all the factors of production, labor is the most dynamic and

significant. This is because it is labor that makes it possible for
the organization to manipulate the other resources. HRM is
concerned with getting optimum use of the available knowledge,
skills and abilities in the workforce. HRM is the only resource to

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give an organization that handles its workers well. A HR manager
can contribute to the company’s profits in a number of ways:

i) Reduce unnecessary overtime expenses by increasing

productivity during a normal days working regime.
ii) Stay on top of absenteeism and institute programmes
designed to reduce money spent for time not worked.
iii) Eliminate time wastage through job design.
iv) Install and monitor effective health and safety programmes.
v) Minimize employee turnover.
vi) Properly train and develop all employees
vii) Decrease costly material wastage by eliminating bad work
habits and attitudes and poor working conditions that lead to
carelessness and mistakes.
viii) Have the best people available.
ix) Maintain competitive pay practices.

EVOLUTION OF HUMAN RESOURCE MANAGEMENT

HRM has evolved through several stages since the industrial

revolution. However, the most noticeable developmental stages
took place beginning the early 1990’s.

The main developmental stages include:-

Stage i: Welfare

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Stage ii: Personnel Administration
Stage iii: Personnel Management
Stage iv: Personnel Management-Mature Phase
Stage v: Personnel Management-Entrepreneurial Phase
Stage vi: Personnel Management-Post Entrepreneurial Phase

Stage i: Welfare (1914-1918)

This was during the 1st World War. Organizations that existed
were involved in the production of military hardware for the
troops in the war. The military personnel were the ones most
involved in the industries and the war. A main concern during
this time was provision of transport facilities, canteens, sports’
activities and so on.

Stage ii: Personnel Administration (1919-1938)

The services provided to the industries in the first stage i.e.

transportation, canteen, were also provided in this stage. But the
advent of systematic administrative procedures emerged
Personnel administrative support to management included areas
such as recruitment, basic training and record keeping.

Stage iii: Personnel Management (1939-1950’s)

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The stage saw a refinement in the manner in which the activities
in stage i and ii were being undertaken. Other activities also
came in and included salary, administration, training for
supervisory levels, and introduction of industrial relations. The
employees begun to get increasingly aware of their rights.

Stage iv: Personnel Management-Mature Phase (1960’s-

1970’s)

This stage saw the beginning of sophistication of the personnel

function. The period saw the introduction of; organizational
development, systematic training programmes, concept of
performance, management and appraisal systems. The most
significant development of all was the introduction of manpower
planning. The period also saw an increase in involvement of
personnel managers in corporate strategy matters.

Stage v: Personnel Management-Entrepreneurial Phase

(1980’s)

The 1980’s saw a surge in businesses demands that there be a

change in approach in HRM. HR practitioners were now expected
to be entrepreneurial in their approach to business matters. They
had to have a business approach to the management of HR.
More and more research in HR was being conducted especially by
independent researchers and scholars at the Harvard University.

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The main interest was to find out what it is in HR that could give
an organization competitive advantage. They singled out a
number of corporations as being successful in HR implementation.
These all had a common characteristic; they saw their employees
as highly valued resources. The theorists and practitioners then
began initiating changes that initiated HRM and sent out
personnel management. From then onwards, people were seen
as the most strategic asset in the organization.

Stage vi: Personnel Management-Post Entrepreneurial

Phase

This is the stage we are in now globally. There is a higher

involvement of HR practitioners in strategic management in the
company. HR practitioners now participate at the boardroom
level, in the formulation of corporate strategies.

Some of the current developments in HR include:-

a) Management via web: Companies are now under constant

change, organized around networks, built on shifting
partnerships and alliances and constructed in technological
advantages.
b) Organizational structures: are becoming flat, with an
intricately woven form that links partners, employees, external

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 contractors, supplies, and customers within areas of great
interdependence.
c) Organizations are now turning customers into business
partners. The companies are now tailoring their products to
each individual who is expected to design and say exactly what
he/she wants.
d) Intellectual capital will be important to business success.
Companies now have to attract and retain the best thinkers-
requiring huge pay cheques, excellent culture and reward
systems.
e) Businesses are now doing away with the old command and
control hierarchies in favor of organizations that empower vast
numbers of people and reward the best of them as if they were
the owners of the enterprise.
f) Talent is now being sought wherever it can be found globally.
g) There is speed in the processing of work. All work is now being
done in an instant (Real-Time).
h) Concentration on the core business and the outsourcing of non
core company activities is now the norm.

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