There are four main functions of management.
1. Planning.
2. Organizing.
3. Leading.
4. Controlling.
Planning.
Planning is an important managerial function. It offers the appearance of a desired future state and the means of causing that future state to complete the organization’s objectives. In other words, planning is the process of thinking before doing. To resolve the issues and take the advantages of the opportunities created by rapid change, managers must develop formal long- and short-range plans to ensure that organizations can move toward their objectives.
It is the foundation section of management. It’s the base upon which the all the areas of management ought to be built. Planning requires administration to evaluate; where the company is presently set, and where it might be within the upcoming. After that an appropriate course of action is determined and carried out to reach the company’s objectives and goals
Planning is unending strategy. There might be sudden strategies where companies need to face. Sometimes they’re uncontrollable. You can state that they’re external factors that constantly affect a company both optimistically and pessimistically. With respect to the conditions, a business might have to alter its course of action in accomplishing certain goals. This kind of preparation, arrangement is called strategic planning. In strategic planning, management analyzes inside and outside factors that may affect the company and thus goals and objectives. Here they should possess a study of weaknesses and strengths, opportunities and threats. For management to do this efficiently, it has to be very practical and ample.
Characteristics of planning.
Goal oriented.
Primacy.
Pervasive.
Flexible.
Continuous.
Involves choice.
Futuristic.
Mental exercise.
Planning premises.
Need for planning.
* Make objectives clear and particular.
* Make activities meaningful.
* Reduce the risk of uncertainty.
* Facilitators coordination.
* Facilitators making decisions.
* Promotes creativity.
* Provides foundation of control.
* Leads to economy and efficiency.
* Improves adoptive behavior.
* Facilitates integration.
Formal and informal planning.
Formal planning usually forces managers to consider all the key elements and concentrate upon both short- and long-range consequences. Formal planning is a systematic planning process during which plans are coordinated through the organization and are usually recorded on paper. There are some advantages informal planning. First, formalized planning forces managers to plan since they’re necessary to achieve this by their superior or by organizational rules. Second, managers have to examine all areas from the organization. Third, the formalization it self provides a set of common assumptions which all managers can base their plans.
Planning that’s unsystematic, lacks coordination, and involves only areas of the organizations called informal planning. It’s three dangerous deficiencies. First, it might not account for all the important factors. Second, it frequency focuses only on short range consequences. Third, without coordination, plans in different parts of the business may conflict.
Stages in planning.
The sequential nature of planning implies that each stage should be completed before the following stage is begun. A systematic planning progress is a series of sequential activities contributing to the implementation of organizational plans.
The first step in planning would be to develop organizational objectives.
Second, planning specialists and top management create a strategic plan and communicate it to middle managers.
Third, use the strategic intends to coordinate the introduction of intermediate plans by middle managers.
Fourth, department managers and supervisors develop operating plans which are in conjuction with the intermediate plans.
Fifth, implementation involves selection and initiating actions to carry out the plans.
Sixth, the final stage, follow-up and control, which is critical.
The organizational planning system.
A coordinated organizational planning system mandates that strategic, intermediate, and operating plans be coded in order of the importance to the organization. The 3 plans are interdependent with intermediate plans based on strategic plans and operating planes based on intermediate plans. Strategic plans are the initial to become developed simply because they set the near future direction from the organization and therefore are crucial to the organization’s survival. Thus, strategic plans lay the building blocks to add mass to intermediate and operating plans. The following plans to be developed would be the intermediate plans; intermediate plans cover major functional areas inside an organization and therefore are the steppingstones to operating plans. Last come operating plans; these provide specific guidelines for the activities within each department.
Organizing.
The second function of the management is getting prepared, getting organized. Management must organize all its resources well before in hand to put into practice the course of action to determine that has been planned in the base function. Through this process, management will determine the inside directorial configuration; establish and keep relationships, as well as assign required resources.
While determining the interior directorial configuration, management must consider the different divisions or departments. Additionally they see to the harmonization of staff, and then try to discover the best way to handle the key tasks and expenditure of information within the company. Management determines the division of work according to its need. It also needs to decide for suitable departments at hand over authority and responsibilities.
Importance of the organization process and organization structure.
Promote specialization.
Defines jobs.
Classifies authority and power.
Facilitators’ coordination.
Act as a source of support security satisfaction.
Facilitators’ adaptation.
Facilitators’ growth.
Stimulators creativity.
Directing (Leading).
Directing is the third function of the management. Working under this function helps the management to control and supervise those things from the staff. This can help these phones assist the staff in achieving the company’s goals as well as accomplishing their personal or career goals which can be powered by motivation, communication, department dynamics, and department leadership.
Employees those that are highly provoked generally surpass within their job performance as well as play natural part in achieving the company’s goal. And here lies the key reason why managers concentrate on motivating their employees. They are available about with prize and incentive programs based on job performance and geared in direction of the workers requirements.
It is crucial to maintain a productive working environment, building positive interpersonal relationships, and problem solving. Which is done just with Effective communication. Understanding the communication process and dealing on area that need improvement, help managers being more efficient communicators. The best manner of finding the areas that requires improvement would be to ask themselves and others at regular intervals, how good they’re doing. This can lead to better relationship helping the managers for better directing plans.
Controlling.
Managerial control is the follow-up procedure for examining performance, comparing actual against planned actions, and taking corrective action as necessary. It’s continual; it doesn’t occur only at the end of specified periods. Even though owners or managers of small stores may evaluate performance at the end of the entire year, they also monitor performance throughout every season.
Kinds of managerial control:
* Preventive control.
Preventive controls are designed to prevent undesired performance before it occurs.
* Corrective control.
Corrective controls are made to adjust situations by which actual performance has deviated from planned performance.
Procedures in the managerial control process.
The managerial control process is composed of several stages. These stages includes
Determining performance standards.
Measuring actual performance.
Comparing actual performance against desired performance (performance standards) to find out deviations.
Evaluating the deviations.
Implementing corrective actions.
2) Describe how this each function results in reach the organizational objectives.
Planning
If the product is an organization, department, business, project, etc., the entire process of planning includes planners working backwards through the system. They start from the results (outcomes and outputs) they like and work backwards through the system to recognize the processes required to produce the results. They identify what inputs (or resources) are essential to handle the processes.
* Quick Look at Some fundamental Terms:
Planning typically includes use of the following basic terms.
NOTE: It is not critical to grasp completely accurate definitions of every from the following terms. It’s more essential for planners to possess a basic sense for that distinction between goals/objectives (results) and strategies/tasks (techniques to achieve the results).
Goals
Goals are specific accomplishments that must be accomplished in total, or in some combination, in order to achieve some larger, overall result preferred from the system, for example, the mission of the organization. (Going back to our mention of the systems, goals are outputs from the system.)
Strategies or Activities
Fundamental essentials methods or processes needed in total, or in some combination, to offer the goals. (Returning to our reference to systems, strategies are processes in the system.)
Objectives
Objectives are specific accomplishments that must be accomplished as a whole, or in some combination, to achieve the goals in the plan. Objectives are usually “milestones” on the way when implementing the strategies.
Tasks
Particularly in small organizations, people are assigned various tasks necessary to implement the program. If the scope of the plan is very small, tasks and activities in many cases are essentially the same.
Resources (and Budgets)
Resources range from the people, materials, technologies, money, etc., required to implement the strategies or processes. The expense of those resources in many cases are depicted as a financial budget. (Going back to our mention of the systems, resources are input to the system.)
Basic Overview of Typical Phases in Planning
If the system is a business, department, business, project, etc., the fundamental planning process typically includes similar nature of activities carried out in similar sequence. The phases are performed carefully or — in some cases — intuitively, for instance, when planning a very small, straightforward effort. The complexity of the various phases (and their duplication throughout the system) depends upon the scope of the system. For instance, inside a large corporation, the next phases could be carried out in the organization offices, in each division, in each department, in each group, etc.
1. Reference Overall Singular Purpose (“Mission”) or Desired Derive from System.
During planning, planners have in mind (consciously or unconsciously) some overall purpose or result the plan’s to achieve. For instance, during strategic planning, it is critical to reference the mission, or overall purpose, from the organization.
2. Take Stock Outside and Inside the System.
This “taking stock” is always completed to some degree, whether consciously or unconsciously. For example, during strategic planning, it is important to conduct an environmental scan. This scan usually involves considering various driving forces, or major influences, that might effect the business.
3. Analyze the Situation.
For example, during strategic planning, planners often conduct a “SWOT analysis”. (SWOT is short for for considering the organization’s weaknesses and strengths, and the opportunities and threats faced by the organization.) In this analysis, planners may also make use of a number of assessments, or methods to “measure” the health of systems.
4. Establish Goals.
In line with the analysis and alignment towards the overall mission from the system, planners begin a group of goals that build on strengths to take advantage of opportunities, while accumulating weaknesses and preventing threats.
5. Establish Strategies to Reach Goals.
The particular strategies (or techniques to reach the goals) chosen rely on matters of affordability, practicality and efficiency.
6. Establish Objectives On the way to Achieving Goals.
Objectives are selected to become timely and suggestive of progress toward goals.
7. Associate Responsibilities and Time Lines with Each Objective.
Responsibilities are assigned, including for implementation from the plan, as well as for achieving various objectives and goals. Ideally, deadlines are positioned for meeting each responsibility.
8. Write and Communicate an agenda Document.
The above details are organized and written in a document which is distributed round the system.
9. Acknowledge Completion and Celebrate Success.
This critical step is usually ignored — which can eventually undermine the prosperity of a lot of your future planning efforts. The purpose of an agenda would be to address a present problem or pursue a development goal. It appears simplistic to say that you ought to acknowledge when the problem was solved or even the goal met. However, this step in the planning process is usually ignored in lieu of moving on the following problem to solve or goal to pursue. Skipping this task can cultivate apathy and skepticism — even cynicism — in your organization. Don’t skip this task.
To Ensure Successful Planning and Implementation:
A common failure in many kinds of planning would be that the plan’s never really implemented. Instead, all focus is on writing an agenda document. Too often, the plan sits gathering dust on a shelf. Therefore, most of the following guidelines help to ensure that the planning process is completed completely and is implemented completely — or, deviations from the intended plan are recognized and managed accordingly.
Involve the best People within the Planning Process
Going back to the reference to systems, it is important that areas of the system continue to exchange feedback to be able to function effectively. This is true no matter what type of system. When planning, get input from everyone who’ll responsible to handle parts of the program, together with representative from groups who definitely are effected by the plan. Obviously, people should also be involved in they’ll be responsible to review and authorize the program.
Write Down the Planning Information and Communicate it Widely
New managers, in particular, often forget that others do not know what these managers know. Even if managers do communicate their intentions and plans verbally, chances are great that others will not completely hear or know very well what the manager wants done. Also, as plans change, it is very hard to remember who is said to be doing what and according to which version of the plan. Key stakeholders (employees, management, board members, founders, investor, customers, clients, etc.) may request copies of numerous kinds of plans. Therefore, it is advisable to write plans down and communicate them widely.
Goals and Objectives Ought to be SMARTER
SMARTER is short for, that’s, a word composed by joining letters from different words in a phrase or group of words. In this instance, a SMARTER goal or objective is:
Specific:
For example, it is difficult to know what someone should be doing if they’re to pursue the aim to “work harder”. It is easier to recognize “Write a paper”.
Measurable:
It is not easy to know what the scope of “Writing a paper” really is. It’s easier to appreciate that effort if the goal is “Write a 30-page paper”.
Acceptable:
Should i be to consider responsibility for pursuit of an objective, the goal should be acceptable to me. For instance, I’m not prone to stick to the directions of someone saying to write a 30-page paper after i also need to five other papers to write. However, should you involve me in setting the goal so I can change my other commitments or customize the goal, I am more likely to simply accept quest for the goal too.
Realistic:
Even if I actually do accept responsibility to pursue an objective that’s specific and measurable, the goal won’t be helpful to me varieties if, for example, the goal is to “Write a 30-page paper within the next 10 seconds”.
Time frame:
It might mean more to others basically commit to an authentic goal to “Write a 30-page paper in one week”. However, it’ll mean more to others (particularly if they’re likely to assist me to or guide me to reach the aim) if I specify that I will write one page a day for Thirty days, rather than including the possibility that I will write all 30 pages in last day of the 30-day period.
Extending:
The aim should stretch the performer’s capabilities. For instance, I would become more interested in writing a 30-page paper when the topic from the paper or even the way that I write it will extend my capabilities.
Rewarding:
I am more inclined to create the paper when the paper will bring about an effort in such a way which i may be rewarded for my effort.
Build in Accountability (Regularly Review Who’s Doing What by When?)
Plans should specify who’s accountable for achieving each result, including goals and objectives. Dates should be looking for completion of each result, as well. Responsible parties should regularly review status of the plan. Make sure to have someone of authority “sign off” on the plan, including putting their signature on the plan to indicate they accept and support its contents. Include responsibilities in policies, procedures, job descriptions, performance review processes, etc.
Note Deviations in the Plan and Replan Accordingly
It’s OK to deviate in the plan. The program isn’t a group of rules. It’s an overall guideline. As important as following a plan is noticing deviations and adjusting the plan accordingly.
Evaluate Planning Process and the Plan
Throughout the planning process, regularly collect feedback from participants. Do they accept the look process? Otherwise, what do not that like and how could it be done better? In large, ongoing planning processes (for example strategic planning, business planning, project planning, etc.), it is critical to collect this sort of feedback regularly.
During regular reviews of implementation of the plan, assess if goals are now being achieved or otherwise. Otherwise, were goals realistic? Do responsible parties have the resources essential to achieve the goals and objectives? Should goals be changed? Should more priority go on experienceing this goals? What needs to be done?
Finally, take Ten minutes to jot down how the planning process could have been done better. File it away and browse it the next time you conduct the planning process.
Recurring Planning Process is at Least as Important as Plan Document
Way too often, primary emphasis is placed on the plan document. This really is extremely unfortunate because the real treasure of planning may be the planning process itself. During planning, planners become familiar with a great deal from ongoing analysis, reflection, discussion, debates and dialogue around issues and goals within the system. Perhaps there is no better example of misplaced priorities in planning than in business ethics. Far too often, people put emphasis on written codes of ethics and codes of conduct. While these documents certainly are important, a minimum of as important is conducting ongoing communications around these documents. The ongoing communications are what sensitize people to understanding and following a values and behaviors suggested in the codes.
Nature of the Process Ought to be Compatible to Nature of Planners
A prominent illustration of this type of potential problem is when planners do not like the “top down” or “bottom up”, “linear” kind of planning (for instance, going from general to specific across the procedure for an environmental scan, SWOT analysis, mission/vision/values, issues and goals, strategies, objectives, timelines, etc.) There are other methods to conduct planning. To have an summary of various methods, see (in the following, the models are applied to the strategic planning process, but generally are eligible for use elsewhere).
Critical — But Frequently Missing Step — Acknowledgement and Celebration of Results
It’s easy for planners being tired as well as cynical about the planning process. One of the reasons with this issue is most likely that way too often, emphasis is positioned on achieving the results. When the desired answers are achieved, new ones are quickly established. The process can feel just like having to solve one problem to another, without any real result in sight. Yet when one really thinks about it, it’s a major accomplishment to softly analyze a situation, involve others inside a expect to do something about this, work together to handle the plan and also see some results.
Organizing.
Organizing can be viewed as the activities to gather and configure resources in order to implement plans in a highly effective and efficient fashion. Organizing is really a broad group of activities, and often one among the main functions of management. Therefore, there are a wide selection of topics in organizing. Listed here are some of the major kinds of organizing needed in a business organization.
A vital trouble in the style of organizations may be the coordination of activities within the organization.
Coordination
Coordinating the activities of the number of people performing specialized jobs is crucial if we wish avoid mass confusion. Likewise, various departments as grouping of specialized tasks should be coordinated. If the sales department sells on credit to anybody who wished it, sales are likely to increase but bad-debt losses may also increase. If the credit department approves sales only to customers with excellent credit records, sales might be lower. Thus there is a need to link or coordinate the activities of both departments (credits and purchasers) for that good from the total organization.
Coordination is the procedure of thinking several activities to attain a functioning whole.
Leading
Leading is an activity that includes influencing other people’s behavior, individually and as an organization, toward the achievement of desired objectives. A number of factors affect leadership. To provide a better understanding of the connection of these factors to leadership, a general type of leadership is presented.
Their education of leader’s affect on individuals and group effectiveness is impacted by several energizing forces:
Individual factors.
Organizational factors.
The interaction (match or conflict) between individual and organizational factors.
A leader’s influence over subordinates also affects and is impacted by the effectiveness of the group.
* Group effectiveness.
The purpose of leadership would be to boost the group’s achievement. The energizing forces may have an effect on the group’s effectiveness. The leader skills, the character of the task, and the skills of every employee are direct inputs into group achievement. If, for instance, one member of the audience is unskilled, the audience will accomplish less. When the task is poorly designed, the group will achieve less.
These forces will also be combined and modified by leader’s influence. The leader’s influence over subordinates provides a catalyst to the task accomplishment through the group. And as the group becomes more effective, the leader’s influence over subordinates becomes greater.
Occasionally the effectiveness of an organization depends on the leader’s capability to exercise power over subordinates. A leader’s behavior might be motivating because it affects that the subordinate views task goals and personal goals. The leader’s behavior also clarifies the paths by which the subordinate may reach those goals. Accordingly, several managerial strategies can be utilized.
First, the best choice may partially pick which rewards (pay, promotion, recognition) to associate with confirmed task goal accomplishment. Then your leader uses the rewards which have the highest value for that employee. Giving sales representatives bonuses and commissions is an example of linking rewards to tasks. These bonuses and commissions generally are based on sales goals.
Second, the leader’s interaction with the subordinate can increase the subordinate’s expectations of finding the rewards for fulfillment.
Third, by matching employee skills with task requirements and providing necessary support, the leader can boost the employee’s expectation that effort will result in good performance. The supervisor can either select qualified employees or provide training for new employees. Sometimes, providing other types of support, such as appropriate tools, could raise the probability that employee effort leads to task goal accomplishment.
Fourth, the leader could raise the subordinate’s personal satisfaction related to doing a job and accomplishing job goals by
Assigning meaningful tasks;
Delegating additional authority;
Setting meaningful goals;
Allowing subordinates to help set goals;
Reducing frustrating barriers;
Being considerate of subordinates’ need.
Having a leader who are able to motivate subordinates, a group is more prone to achieve goals; and therefore it is more likely to become affective.
Controlling.
Control, the last of four functions of management, includes establishing performance standards that are obviously in line with the company’s objectives. It also involves evaluating and reporting of actual job performance. When these points are studied by the management then its necessary to compare both things. This study on comparison of both decides further corrective and preventive actions.
Area as well as of solving performance problems, management should higher standards. They should straightforwardly talk to the worker or department having problem. On the contrary, if you will find inadequate resources or disallow other external factors standards from being attained, management needed to lower their standards according to requirement. The controlling processes as with comparison along with other three, is unending process or say continuous process. With this particular management can make out any probable problems. It will help them in taking necessary preventive measures against the consequences. Management can also recognize any further developing issues that need corrective actions.
Even though control process is definitely an action oriented, some situations may require no corrective action. When the performance standard is appropriate and actual performance meets that standard, no changes are essential. But when control actions are essential, they must be carefully formulated.
A highly effective control system is one that accomplishes the purposes that it had been designed.
Controls are made to affect individual actions within an organization. Therefore control systems have implications for employee behavior. Managers must recognize several behavioral implications and avoid behavior detrimental towards the organization.
It is common for individuals to face up to certain controls. Some controls are designed to constrain and restrict certain kinds of behavior. For example, Dress codes often evoke resistance.
Controls also carry certain status and power implications in organizations. Those responsible for controls positioned on important performance areas frequently convey more power to implement corrective actions.
Control actions may create intergroup or interpersonal conflict within organizations. As mentioned earlier, coordination is required for effective controls. No quantitative performance standards may be interpreted differently by individuals, introducing the possibility of conflict.
An excessive number of controls may limit flexibility and creativity. The possible lack of flexibility and creativity may lead to low levels of employee satisfaction and personal development, thus impairing the organization’s ability to adjust to a changing environment.
Managers can overcome most of these consequences through communication and proper implementation of control actions. All performance standards should be communicated and understood.
