MANAGERIAL FUNCTIONS OF MANAGEMENT

1. MANAGERIAL FUNCTIONS OF MANAGEMENT DR. J.ARUL SURESH DEPARTMENT OF COMMERCE LOYOLA COLLEGE,C HENNAI

2. POSDCORB • P – PLANNING • O – ORGANISING • S – STAFFING • D – DIRECTING • CO- COORDINATING / CONTROLLING • R – REPORTING • B - BUDGETING

3. PLANNING • Broad outline of things that need to be done and methods for doing them. • Deciding what needs to happen in the future and generating plans for action. • Process of thinking about the activities required to create a desired future on some scale. • It is a fundamental functions of the management process and precedes other activities. • It involves determining the objectives and selecting a course of action to achieve them. • It is mental process requiring the use of intellectual, foresight, imagination, and sound of judgement. • It consist of forecasting, decision making and problem solving.

4. SIGNIFICANCE OF PLANNING • Helps in the accomplishment of enterprise goal. • Basic function of all managers at all levels. • Helps in execution of all other functions. • Helps to minimize costs.

5. PROCESS OF PLANNING • Determination of objectives. • Forecasting and choice of a course of actions • Formulation of policies, programmes, budgets, schedules etc to achieve the objectives. • Laying down of procedures and standards of performance.

6. CHARACTERISTICS OF GOOD PLAN • Simple – Easy to understand, not complicated. • Action oriented – Should be neither impossible to attain nor too easily reached. (Blue print for action). • Thorough – Full coverage of all needed activities, no functions should be omitted, no controversial. • Motivate employees – Based on employee’s participation and cooperation. (Before finalize – Employees to read and invite comments). • Flexible – Must reflect and meet current needs, should possess built in flexibility. • Well coordinated – Both consistent with the goals of the larger external system and coordinating internally.

7. ORGANIZING • Once plans are formulated, the next step is that of organizing. • It is the process of establishing harmonious authority-responsibility relationships among the members of enterprise. • It is the function of creating a structure of duties and responsibilities. • The network of authority-responsibility is known as organizational structure. • It is important element of management, because through organizing that a manager brings together the material and human resources required for achievement of desired goals. • It helps to avoid duplication of work and overlapping of effort.

8. CHARACTERISTICS OF ORGANIZING • Based on delegated authority. • Responsibility and accountability at all levels should be clearly defined. • Organizational charts are usually drawn. • Unity of command is normally maintained. • It improves for division of labour.

9. STEPS IN THE PROCESS OF ORGANIZING • Determining and defining the activities required for the achievement of planned goals. • Grouping the activities in to logical and convenient units. • Assigning the duties and activities to specific position and people. • Delegating authority to these positions and people. • Defining and fixing responsibility for performance. • Establishing horizontal and vertical authority relationship throughout the organization.

10. STAFFING • It is the process of filling all positions in the organization with adequate and qualified personnel. • It consists of Human Resource Planning, Recruitment, Selection, Training, Compensation, Integration and maintenance of employees. • Staffing function become important with growing size of organization, technological advancement and recognition of the human factor in industry.

11. DIRECTING • It is the managerial function of guiding, supervising, motivating and leading people towards the attainment of planned targets of performance. • In the process directing his subordinates, a manager takes active steps to ensure that the employees accomplish their tasks according to the established plans. • It is the executive function of management because it is concerned with the execution of plans and policies. • Direction initiates organized action and sets the whole organizational machinery into action.

12. DIRECTING FUNCTION ACTIVITIES • Issuing orders and instructions. • Supervising people at work. • Motivation – Creating willingness to work. • Communication – Establishing understanding with employees regarding plans and their implementation. • Leadership or influencing the behaviour of employees.

13. CO-ORDINATING • It refers to harmonizing and integrating the activities and efforts of different individuals into team work. • It requires unification of diverse and specialized activities towards the achievement of common goal. • Through coordination, a manager secures unity of action in the pursuit of common purpose (Conductor of an orchestra). • A manager interprets and explains the goals and policies of the organisation to his subordinates. • Manager integrates the efforts of different employees to ensure that they work as a team. • It involves the integration of the various parts of the organization.

14. CONTROLLING • It is the process of ensuring that the organization is moving in the desired direction and that progress is being made towards the achievement of goals. • The process of controlling involves the following steps • Establishing standards for measuring work performance. • Measurement of actual performance and comparing it with the standards. • Finding variances between the two performances and the reasons therefore. • Taking corrective action for correcting deviations so as to ensure attainment of objectives.

15. IMPORTANCE OF CONTROLLING • Monitoring organizational performance. • Efficient execution. • Helps delegation. • Assists Co-ordination. • Simplifies supervision. • Aids to efficiency

16. REPORTING • Preparing reports on the progress of various activities.

17. BUDGETING • Financial planning. • Accounting. • Control over expenditure.