CH - 2 Functions of Management
CH - 2 Functions of Management
2 Functions of Management
CHAPTER OUTLINE
responsibility;
the assigned tasks as planned:
(e) guiding and inspiring people to perform
and
Planning
MANAGEMENT
PROCESs
Supo a1 uiyyeis
in their field
wTe carefully selected, specifically trained, continually kept up-to-dateresponsibility
activity, guided in their development for the assumption of greater
and adequately rewarded".
function of guiding, supervising.
Directing. Directing is the managerial
. of
V n g and leading people towards
the attainment of planned targets
Management | ROM
Introduction to
and
B u s i n e s s Organisalion
2.4 subordinates, a manager takes acti
process of
directing his the establish
In the thcir taskS according to hed
performance. accomplish
cmployees because it is concerno
to e n s u r e that the ol management
steps function c
i n i t i a t e s orgaised action and
executive
is the ts
plans Directing policics.
Direction
o
of plans and
It is, therefore, the life spark
an
with the e x e c u t i o n into action.
machincry
the whole organisational
activities:
organisation. embraces the following
function of management
Directing instructionsS,
orders and
(a) issuing at work,
(overseeing) people
b) supervising to work for certain objectives.
willingness
(c)motivation, i.e., creating the
understanding with empioyees
regarding
c o m m u n i c a t i o n , i.e., establishing
(d)
implementation, and
plans and their
or influencing
the behaviour of employees.
(e) leadership
that the organisation is
is the process of ensuring
5. Controlling. Controlling is being made towards the
in the desired direction and that progress
moving involves the following steps:
achievement of goals. The process of controlling
work performance;
(a) establishing standards for measuring
it with the standard;
(b) measurement of actual performance and comparing
and
(c) finding variances between the two and the r e a s o n s therefore;
(d) taking corrective action for removing deviations so as to ensure attainment
of objectives.
Management is a composite process because its different elements are interrelated
and interdependent. It is also an ongoing process as the cycle of management gets
repeated again and again. Management is a social or human process because it
involves people, their efforts and behaviour. It is a universal process as managerial
functions are needed in all organisations irrespective of their nature (business or
non-business), size (small or big) and purpose (profit making or not).
Top Management
Managing Director
Production
Finance Intermediate
Marketing Manager Management
Manager
ManageT
Chief Middle
Branch Plant
Superintendent
Accountant Management
Managers
Sales Foremen or
Accounts or Operating
Officers Supervisors Finance Officers Management
department depends on the production department for the required volume, range
and quality of products at the right time, to serve the customers. Such inter-
dependence requires coordination among the various functional departments.
According to Thompson, there are three types of interdependence. Pooled
interdependence requires minimum coordination as the units are not directly related.
Sequential interdependenceimplies that later units (e.g.. production) depend on earlier
ones le.g.. purchase of materials). Reciprocal interdependence refers to the situation
where the outputs of one unit become the
inputs of another. Such interdependence
requires maximum coordination among the interdependent units.
8. Empire-building. Empire builders always expect cooperation from oune
but they are not prepared to
provide cooperation to others. Coordination is requrc
to cope with such disruptive elements.
Need for coordination also arises on
of conflict between line and staff. Staff accou
action and may not appreciate the
specialists tend to follow their own line o
9. Human Nature.
viewpoint of line executives.
People
in general are
preoccupied with the work or their
own
departments or units and fail to
appreciate the role of other departments
units.Deliberate efforts
departments and units.
are
required to maintain
coordination between au
10. Congruence
of Flows. An vs of
inputs and outputs. These lows must organisation
be harnessed
is a dynamic
system ol
direction and timing, Coordination properly in terms ot the olume
facilitates a smooth NS.
11. Differentiation and and congruent system oi low *
The other members of the human body. not liking the luxurious life ofthe belly.
ered into conspiracy to cut off its supplies. The hand refused to carry food, mouth
wallow and teeth to chew it. As a result all of them began to fag and fail and the
to.
members then realised their folly and truth
entire body. to pine away. The otherFalble) the
that all
must cooperate." (Aesop's
Essence of Managing
2.4.4 Coordination-The
Coordination is the very ssence of management because the basic objective of
is to integrate and harmonise human efforts. It is the epitome of the
management
management process as managerial functions are instruments to ensure coordination.
The of a manager can very well be compared with that of an orchestra conductor
job
efforts of various instrumentalists to produce rhythm. He interprets
who integrates the
every instrumentalist may adjust his voice and pitch
to
score so that
the composer's
to achieve
the score. Similarly. a manager blends the efforts of his subordinates
unified action.
likea silken
Coordination perneates the entire process of management running exercise in
function of management is an
thread through its elements. Every more well-
more effective, organisation
coordination. Coordination makes planning
more regulative.
more efficient and control
knit, staffing m o r e realistic, directing
follows:
This point may further be elaborated as
coordination to the extent that it lays
down the
1. Planning is an exercise in
various components of planning
The
common objectives of the organisation.
schedules and programmes serve
such as policies, strategies, procedures,
and departments.
as m e a n s of integrating
the activities of different groups
between
structure defines the interrelationships
2. A sound organisation of activities into
and work units. It involves grouping
different positions
and roles will not be
homogeneous departments.
Authority relationships
of diverse activities.
clear without the integration on different
of management seeks to put right persons
3. The staffing function
planning. recruitment.
jobs. The various
functions of staffing, e.g., manpower
etc. are performed to job requirements
match
selection, training, appraisal, coordination in assigning
tasks
in achieving
and employee skills. This helps
to various individuals.
Planning
Suo
Coordination
Organ,.
Staffing
Directing
Coordination.
Nature of
Essential
Fig. 3.1:
| Introduction to B0M
2.10 Business Organisation and Management OM
REVIEW QUESTIONS
1. Briefly discuss the functions of Management.
2. Define the term 'management. Explain its
meaning and state its chief characteristies
3. How will you classify the levels of management?
Briefly describe the functions of differea
levels of management.
4. Explain what are the various perspectives of Business
organisation.
5. "Every manager is concerned with ideas, things and people." Comment.
6. What is meant by Coordination? Why is it called the
Essence of Managing?
7. "Management is the effective utilisation of human and material resources to achieve
the enterprise objectives." Comment.
8. Discuss in brief the scope of management.
9. Examine the significance of management in a developing country like India.
10. What is the central purpose of management? Why organisations stand or fall on the
quality of their
management?
Functions of Management 2.13
16. Coordination is the orderly arrangement of group effort to provide unity of action in
the pursuit of a common purpose". Elucidate
17. Explain "Management as a Process"
18. "Management is the process by which managers create, direct, maintain, and operate
purposive organisations through coordinated, cooperative human effort." Elaborately
explain this statement.