FUNCTIONS OF

MANAGEMENT
Mr. V. D. Patil
Assistant Professor
Planning
 Meaning
 Planning is an intellectual process of thinking
resorted to decide a course of action which helps
achieve the pre-determined objectives of the
organization in the future.
Planning
 Definition
 Koontz and O’Donnel, “planning is deciding in advance
what to do, how to do, when to do it and who is to do it.
It bridges the gap from where we are to where we want
to go.”
 M.S.Hurley, “Planning is deciding in advance what is to
be done. It involves the selection of objectives,policies,
procedures and programmes from among alternatives.”
 Hart, “Planning is the determination in advance of a line
of action by which certain results are to be achieved.”
PLANNING - Nature
 Primary Function
 Planning contributes to objectives
 Planning an intellectual activity
 Planning results in higher efficiency
 Planning is a continuous process
 Planning is flexible
 Planning is common to all
 Planning results in Unity and consistency
 Considering limiting factors
Planning - Steps
 Analysis of external environment
 Analysis of internal environment
 Determination of objectives
 Determining planning premises and constraints
 Examination of alternative course of action
 Selection of best alternative course of action
 Establishing the sequence of activities
 Formulation of action Programme
 Determining secondary plans
 Securing participation of employees
 Follow-up and Evaluation
ORGANISING
 Meaning
 Organisation can be compared to a human body. The
human body consists of hands, feet, eyes, ears, nose, fingers,
mouth etc. these parts are performing their work
independently and at the same time , one part cannot be
substitute to another. The same principles can be identified in
the organization also.
 Organization is the detailed arrangement of work and working
conditions in order to perform the assigned activities in an
effective manner.
ORGANISING
 Definition
 Louis Al Allen, “the process of identifying and grouping the
work is to be performed, defining and delegating
responsibility and authority and establishing relationships for
the purpose of enabling people to work most effectively
together in accomplishing objectives.”
 Wheeler, “Internal organisation is the structural framework of
duties and responsibilities required to personnel in performing
various functions within the company..”
 Mooney and Reily, “Organization is the form of every human
association for the attainment of a common purpose.”
ORGANISING - Classification
 Formal Organisation
 An organizational structure clearly defines the
duties, responsibilities, authority and relationships as
prescribed by the top management.”
 The inter-relationship of staff members can be shown
in the organization chart and manuals under formal
organization.
Characteristics of Formal Organization

 It is properly planned.
 It is based on delegated authority.
 It is deliberately impersonal.
 The responsibility and accountability at all levels of
organization should be clearly defined.
 Organizational charts are usually drawn.
 Unity of command is normally maintained.
 It provides for division of labour.
ORGANISING
 Informal Organisation
 Informal organization is an organizational structure
which establishes the relationship on the basis of the
likes and dislikes of officers without considering the
rules, regulations and procedures. E.g. a salesman
receives orders or instructions directly from the sales
manager instead of his supervisors.
 The informal organization relationship or informal
relations give a greater job satisfaction and result in
maximum production.
Features of Informal Organization
 No Rules and Regulations
 Communication - grapevine communication
 No Stability
Virtual Organization
i. Virtual Organization can be defined as “an organisational form that
enables companies to reduce their physical assets (large headquarters,
centralised plants etc.), relying instead on small decentralized units
linked by strong communications network.”
ii. Thus, it uses information and communication technology to allow it to
operate without clearly defined physical boundaries between different
functions.
iii. It provides customized services by outsourcing production and other
functions to third parties.
iv. Thus, employees may work in anytime zone and customers are able to
purchase tailored products from any location.
v. This leads to more responsive and flexible company with greater
market orientation.
Characteristics
 i. Lack of Physical structure:
 ii. Reliance on knowledge:
 iii. Use of communications technologies:
 iv. Mobile work:
 v. Boundary less and inclusive:
 vi. Flexible and responsive:
STAFFING
 Meaning
 Staff literal meaning is “keeping the worker or
employee” for the doing work at the office. and
Staffing means doing this activity continuously.
 Staffing in management is a continuous activity
because new positions are made, as employees might
leave the organization due to many reasons.
 Sometimes they leave due to better opportunities in
career development and sometimes due to new
business units of the company.
STAFFING
 Definition
 Staffing is the act of acquiring, deploying, and retaining a
workforce/manpower of appropriate quantity and quality
to improve the organization’s effectiveness.
 Staffing refers to the process of filling vacant positions
in the organization with skilled and qualified
personnel.
 Staffing is the process of hiring eligible candidates in
the organization or company for filling specific vacant
positions.
STAFFING - Functions
 Manpower planning
 Development
 Fixing the employment standards
 Sources
 Selection and Placement
 Training
 Other Functions – transfer, record maintenance, rating of
employees, motivation
CONTROLLING
 Meaning
 Controlling consists of verifying whether everything
occurs in conformities with the plans adopted,
instructions issued and principles established.
 Control is a fundamental managerial function or
process which measures current performance and
guides it towards some predetermined objectives.
 The controlling function will be unnecessary to the
management of other functions of management are
performed properly.
CONTROLLING

 Definitions
 Knootz and O’Donnel, “Controlling is the
measurement of accomplishment against the
standards and the correction of deviations to assure
attainment of objectives according to plans.”
 Robert N. Anthony, “Management control is the
process by which managers assure that resources are
obtained and used effectively and efficiently in the
accomplishment of an organizations objectives.”
CONTROLLING - Steps
 Establishing Standards
 Measurable or tangible - Those standards which can be measured
and expressed are called as measurable standards. They can be in
form of cost, output, expenditure, time, profit, etc.
 Non-measurable or intangible- There are standards which cannot
be measured monetarily. For example- performance of a manager,
deviation of workers, their attitudes towards a concern. These are
called as intangible standards.
CONTROLLING - Steps
 Measuring Performance
Performance of a manager cannot be measured in
quantities. It can be measured only by-
 Attitude of the workers,
 Their morale to work,
 The development in the attitudes regarding the physical
environment, and
 Their communication with the superiors.
CONTROLLING - Steps

 Comparison of actual with standards

Once the deviation is identified, a manager
has to think about various cause which has led to
deviation. The causes can be-
 Erroneous planning,
 Co-ordination loosens,
 Implementation of plans is defective, and
 Supervision and communication is ineffective, etc.
CONTROLLING - Steps
 Taking corrective action
There are two alternatives here-
 Taking corrective measures for deviations which have
occurred; and
 After taking the corrective measures, if the actual
performance is not in conformity with plans, the manager can
revise the targets. It is here the controlling process comes to
an end. Follow up is an important step because it is only
through taking corrective measures, a manager can exercise
controlling.
CONTROLLING – Types of
Control
 Feedback Control: This process involves collecting
information about a finished task, assessing that information
and improvising the same type of tasks in the future.
 Concurrent control: It is also called real-time control. It
checks any problem and examines it to take action before
any loss is incurred. Example: control chart.
 Predictive/ feedforward control: This type of control
helps to foresee problem ahead of occurrence. Therefore
action can be taken before such a circumstance arises.
Assignment - 2
1) Define planning. Explain the nature of planning.
2) Explain the different steps of Planning.
3) Define organizing. Explain the classification of
organizing with its merits and demerits.
4) Explain the concept of staffing and brief the significant
activities performed in it?
5) Define control and describe the various steps involved
in control process.
6) Write a brief note on various types of control exercised
at different levels of management.