UNIT -11

MANAGEMENT FUNCTIONS
MANAGEMENT FUNCTION
Koontz and ODonnell classify Mgt. Function on the following
PLANNING
ORGANIZING
STAFFING
DIRECTING
CONTROLLING

Management functions
Luther Gluick provides a term called
POSDCORB
Planning
Organizing
Staffing
Directing
Coordinating
Budgeting

Management functions

J.l Massie classifies management into

Planning
Decision making
Organizing
Staffing
Controlling
Directing

Unit 2 syllabus

Planning
Organizing
Staffing
Leading
controlling

Planning

Nature and purpose

Objectives
Strategies
Policies and planning premises
Decision making

Organizing

Nature and purpose

Departmentalization
Line and staff function
Decentralization
Organizational culture

Staffing

Selection and training

Placement
Performance appraisal
Carrier strategy
Organizational development

Leading
Managing human factor
Leadership
communication

Controlling
Process of controlling
Controlling techniques
Productivity and operation
management
Preventive control
Industrial safty

Planning

Nature and purpose

Objectives
Strategies
Policies and planning premises
Decision making

I- Planning
Planning is the most basic of all
management function
Planning is the process of selecting
objectives and determining the course
of action required to achieve these
objectives
Planning is looking ahead
Planning is getting ready to do
something tomorrow

Planning - definition
Planning is deciding in advance what to do,
how to do it, when to do it, who is to do
it.
The selection among alternatives of future
course of action for the enterprise as a whole
and each department within it . Plan involves
selecting enterprise objectives and
determining ways of achieving them.
koontz and
ODonnell

NATURE OF PLANNING
Planning is goal oriented
Planning has a reference to future
Planning is the primary functions of
management
Planning involves choice
Planning is a mental exercise
Planning is continuous
Planning is actionable
Planning is flexible
Planning is integrated system

Purpose / objective of
planning

It helps to achieve objectives

It guides decision making process
It helps a sense of direction to action
It facilitates co-ordination
It helps to face the future with
confidence

STRUCTURE OF PLANNING

Basic Planning
Mission - Fundamental purpose of an enterprise
(University- imparting high level education)
Objectives
Strategies
Tactics

Policies
Rules
Procedures
Methods

Aides of planning

Mission
This is the reason for existence of
any Organisation.
Fundamental purpose of an
enterprise
Ex. University- imparting high level
education

Objectives
Objectives are the aims, purpose
or goals that an organization want
to achieve over varying periods.
These are short term or long term
goals set to fulfill the mission set for
an Organisation
They should be SMART. (That is
Specific, Measurable, Achievable,
Relevant and Timely).

Hierarchy of objective
Socio-economic purpose
Mission of organisation
Overall objectives of organisation
Objectives in key result areas
Division objectives
Departmental objectives
Unit- sectional objectives
Individual objectives

Objective- SMART
Specific- no ambiguity in the
objective
Measurable- it should by measured
Achievable Relevant Timely-

Strategy
It is the step by step approach taken
to achieve the goals/ objectives.
Strategy is one of those words that
has as many different meanings as
there are strategists, Strategy
includes the high-level decisions
that shape what is done and how it is
done

Example for strategy

Selection of markets and market segments
to target.
Decisions on where the organisation will
be geographically located.
Decisions on what products and services
to offer.
Overall approach to competition, for
example on cost or quality.
Make or buy decisions, including what to
outsource.

Tactics
Tactical planning takes strategic
decisions and figures out how to
implement them in practice
(How strategies are put into action)
.
Recruitment of graduate engineers
from universities.

strategy vs Tactics
Strategy is the basic plan chosen to
achieve objectives while tactics is the
means of implementing the plan

Aides of planning
Policies Statement of guidance and
instructions
Rules- Statement of action asking
sub-ordinate to behave in a
particular way
Procedures Specifies the manner
handling the activity
Methods- M. is the best planned way
of performing one step of procedure

NATURE OF POLICIES
Policy is a broad statement
formulated to provide guidance in
decision making

Planning Process
Defining the problem
Formulate objectives- Objectives must be specific
and functional
Establishing planning premises-Mgt. has to take
decision based on certain assumptions about
future
Determining alternative course of action
Evaluating the alternative course of action
Select best alternative
Making derivative plans ( Secondary or
supporting plans)
Implementation
Follow-up action

Decision making
Decision is a choice from among a set of
alternatives.
The word 'decision' is derived from the
Latin words de ciso which means 'a cutting
away or a cutting off or in a practical sense'
to come to a conclusion.
Decisions are made to achieve goals
through suitable follow-up actions.
Decision-making is a process by which a
decision (course of action) is taken.