FUNCTION OF MANAGEMENTFUNCTION OF MANAGEMENT

(I) Defining Management(I) Defining Management• What is Management?

• Management Levels

• Management Skills

(II) Functions of Management(II) Functions of Management

Planning Organizing Staffing Co-ordinating

Leading Controlling

OUTLINEOUTLINE

(I) Defining Management(I) Defining Management

A) What is Management?A) What is Management?

Effectiveness: doing the right things under the right circumstances

• The process of getting activities done efficiently and effectively with and through other people

Process: refers to the primary activities engaged in by managers

planning, organizing, staffing, co-ordinating, leading, controlling & decision making

Efficiency: the relationship between inputs and outputs (minimize resources)

B) Management LevelB) Management Level

Top Management

Middle Management

First-line Management

• Top Management: making decision and setting policies that affect all aspects of the organization

• Middle management: formulate strategies, communicate

• First-line management: monitor front-line operations

C) Management SkillsC) Management Skills

• Technical skills: knowledge of and proficiency in a certain specialized field

Top Management

Middle Management

First-line Management

Conceptual skills

Human skills

Technical skills

• Conceptual skills: ability to think and to conceptualize about abstract situation

• Human relation skills: ability to work well with other people

(II) Functions of Management(II) Functions of Management

Planning Organizing Staffing Co-ordinating Leading ControllingDecision-

making

• “SMART” objectives: Specific, Measurable, Achievable, Realistic & Time-based

A) PlanningA) Planning

• the process of defining an organization’s objectives and how it will achieve them

A) PlanningA) Planning

1. Purposes of Planning1. Purposes of Planning

• Clarify the purpose of the organization

• Give direction to the organization

• Establish coordinated effort

• Reduce uncertainty by anticipating changes

• Reduce overlapping and wasteful activities

• Clarify the consequences of action

A) PlanningA) Planning

2. Types of Plan2. Types of Plan

BREADTH• Strategic plan: an overall plan that apply to the entire organization and covers a long period of time•Tactical plan: a more specific and detailed plan made by middle managers• Operational plan: a detailed plan that specify how the overall objectives are to be achieved

TYPES OF PLANSBREADTH TIME FRAME SPECIFICITY FREQUENCY OF USE

StrategicTactical

Operational

Long termShort term

DirectionalSpecific

Single-useStanding

TIME FRAME

· Long term plan: plan that extend beyond five years· Short term plan: plan that cover less than one year

TYPES OF PLANSBREADTH TIME FRAME SPECIFICITY FREQUENCY OF USE

StrategicTactical

Operational

Long termShort term

DirectionalSpecific

Single-useStanding

A) PlanningA) Planning

2. Types of Plan2. Types of Plan

TYPES OF PLANSBREADTH TIME FRAME SPECIFICITY FREQUENCY OF USE

StrategicTactical

Operational

Long termShort term

DirectionalSpecific

Single-useStanding

A) PlanningA) Planning

2. Types of Plan2. Types of Plan

SPECIFICITY

·Directional plan: flexible plan that set out general guidelines·Specific plan: plan that are clearly defined and leave no room for interpretation

TYPES OF PLANSBREADTH TIME FRAME SPECIFICITY FREQUENCY OF USE

StrategicTactical

Operational

Long termShort term

DirectionalSpecific

Single-useStanding

A) PlanningA) Planning

2. Types of Plan2. Types of Plan

FREQUENCY OF USE·Single-use plan: · a one-time plan · specifically designed to meet the needs of a unique situation · in response to non-programmed decisionsStanding plan: ·ongoing plan ·created in response to programmed decisions

3. Steps in the planning process3. Steps in the planning process

Forecast the future environment

Establish goals & objectives

Select the best alternatives

Design alternative ways of achieving objectives

Implement & monitor the plan, making adjustment when necessary

MISSION What is our fundamental reason for being?

GOAL What do we want to achieve?

STRATEGYWhat are the major means by which we hope to achieve our goals?

OBJECTIVEHow are we going to achieve our goals specifically?

4. Some Terminologies4. Some Terminologies

B) Organizing, Staffing & Co-ordinatingB) Organizing, Staffing & Co-ordinating

Planning Organizing Staffing Co-ordinating

Leading ControllingDecision-

making

• Organizing: the process of breaking down the work into smaller pieces and designing a structure to facilitate the completion of work

• Staffing: the personnel management process in which qualified candidates are recruited to fill the position in organizations

• Coordinating: the process of integrating the work of separate department to achieve unity of effort

C) LeadingC) Leading

Planning Organizing Staffing Co-ordinating Leading ControllingDecision-

making

The process of influencing subordinates to behave in a way that can contribute to the accomplishment of the organizational objectives

• task-oriented: plan and define work; monitor results; assign responsibilities• employee-oriented: respect; warmth; mutual trust; sensitivity

Leadership

C) LeadingC) Leading

3 Types of Leader 3 Types of Leader

• Autocratic leader: makes all the decision and does not concern about the subordinates (task-oriented)

• Democratic leader: makes decisions with subordinates or based on their suggestions (employee-oriented)

• Free-rein leader: allows subordinates to have full autonomy in decision-making without giving any directions to them

Autocratic Democratic Free-reinDecision-maker Superior Superior and

subordinatesSubordinates

Number of people to make decision Few Many ManyDegree of control High Moderate LittleAttitude towards subordinates’suggestions and ideas

Ignore Appreciate Highlyappreciate

Amount of communication Little Great LittleFlow of communication Top to bottom Upward &

downwardMulti-

directionalMorale of subordinates Poor High High

C) LeadingC) Leading

Comparison of Autocratic, Democratic and Free-rein

Leaders

• The process of monitoring activities to ensure they are being accomplished as planned and of correcting any significant deviations

D) ControlD) Control

Planning Organizing Staffing Co-ordinating Leading ControllingDecision-

making

• Importance of Control

to make sure organizational goals are met

To reduce the reluctance to delegate

To provide information and feedback on the performance of subordinates

Compare actual

performance with standard

Objectives Standard Measure actual

performance

Do nothingIs standard

being attained?

Is variance acceptable?

Is standard acceptable?

Review standard

Do nothing

Identify cause of variation

Correct performance

Yes

Yes

Yes

No

No

No

Control Process

• Qualities of an Effective Control System

Accuracy

Timeliness

Economy

Flexibility

Understandability

Reasonable criteria

Strategic placement

Multiple criteria

Corrective action

Emphasis on the exception

E) Decision-makingE) Decision-making

typically described as “choosing among alternatives” a comprehensive view: as a set of 8 steps that include:

Identifying a problem

Identifying decision criteria

Allocating weights of

criteria

Developing alternatives

Analyzing alternatives

Selecting an alternatives

Implementing the alternative

Evaluating the decision

effectiveness

E) Decision-makingE) Decision-making

1. Types of Decision• Programmed/routine decision: a repetitive

decision that can be handled by a routine approach

• Non-programmed/ non-routine decision: an unique decision that requires a custom-made solution

Programmed decisions

Non-programmed decisions

Ill-illustrated

Well-illustrated

Top

Lower

Level in organization

Type of problem

1. Factors affecting the decision-making process

E) Decision-makingE) Decision-making

Types of decision

Management style (autocratic, democratic or free-rein)

Availability of resources

Time factor