Managerial functions (Gullick)

7 functions of management or POSDCORB

1. Planning
Planning is an important function of management because it sets the
pace for all subsequent steps in the managerial process. You need to
develop a roadmap for the future—predefined steps—to accomplish
organizational goals. In this step, you’ll have to evaluate methods and
strategies to determine how you’ll progress toward your goal.
You have to consider both internal factors—people, time and cost—
and external factors—competitors, policies and general business
environment—to arrive at a sound planning strategy.
2. Organizing
This is where you put your plan into action by establishing a system of authority or hierarchy in the
context of your organizational structure.
Determine the tasks that need to be completed to achieve your goals before assigning them to your
staff. As opposed to the traditional ways of working where a manager made all the decisions,
today’s business world is more dynamic and flexible.
Every member of the organization—regardless of position—shares accountability and responsibility.
So, define an organizational structure that aligns with your workplace and assign tasks that map to
your team’s skills and abilities. You have to get everyone on the same page and delegate tasks the
way you see fit.

• Identification of activities.
• Classification of grouping of activities.
• Assignment of duties.
• Delegation of authority and creation of responsibility.
• Coordinating authority and responsibility relationships
3. Staffing
You have to assign tasks based on each team member’s knowledge, skills and abilities. You
have to be careful here because you may have to hire new talent for specific tasks that require
specific technical expertise.
Assessing the needs of your employees in terms of incentives, training and development and
compensation are critical for the success of this step.
An effective manager will have the insight to evaluate the competency and efficiency of their
employees. This is to ensure that their assigned tasks match their skills. You have to adopt an
empathetic approach to connect with your employees and understand their strengths and
weaknesses.

• Recruitment, Selection & Placement.

• Training & Development.
• Remuneration.
• Performance Appraisal
4. Directing
Directing is concerned with supervising your team’s progress. Here,
an open channel of communication and get regular updates to stay on
top of things is required.
A great way to do this is by giving and receiving feedback to address
any problem areas and improve performance. This is where you have
to act as a leader, navigate conflict and motivate your employees to
take initiative.
5. Controlling: The process of management begins with the planning
function and concludes with the controlling function. It involves
comparison between the actual work performance and the planned
standards, and taking corrective steps when there is a difference
between the two.
• Establishment of standard performance.
• Measurement of actual performance.
• Comparison of actual performance with the standards and finding out
deviation if any.
• Corrective action
6. Reporting: Report is a factual document which contains the information meant for the
superiors. Manager may make report for the top management.
The fundamental object of preparing the report is to inform the top management of the
progress made, the idea about the future performance, the causes responsible for any
deviation from the set course and suggestions made to remove the causes for the
difference between the planning and performance. Thus, the feedback information is
provided by the manager to the top management people.
7. Budgeting: Budgeting is a managerial technique of planning and controlling the
operations of an organization. It enables management as well as managers to draw out
the future course of action through mutually acceptable decisions and to control it
through performance dynamics.
It is the planning made before the actual expenditure is incurred. Budgeting prepares the
blue print both in quantity and monetary terms and reflects the objectives of the firm. It
involves collection of relevant data, analysis of the information available, preparation of
various alternative plans and selection of the most profitable one. In today’s scenario the
efficient allocation of financial resources is the most important function of a manager.
Managerial skills
• Managerial skills are the knowledge and ability of the individuals in a managerial position
to fulfil some specific management activities or tasks. This knowledge and ability can be
learned and practised. However, they also can be acquired through practical
implementation of required activities and tasks.
• Management skills are abilities and traits needed to perform certain duties, usually as it
pertains to overseeing a team, such as solving problems, communicating well, and
motivating employees. Such skills can be learned, through practical experience, or in
courses and then honed on the job.
1. Managerial skills
• Three-Skill Approach Based on field research in administration and his own first-hand
observations of executives in the workplace, Katz (1955, p. 34) suggested that effective
administration (i.e., leadership) depends on three basic personal skills: technical, human
and conceptual.
• Katz argued that these skills are quite different from traits or qualities of leaders. Skills are
what leaders can accomplish, whereas traits are who leaders are (i.e., their innate
characteristics).
2. Technical Skill- Technical skill is knowledge about and proficiency in a
specific type of work or activity. It includes competencies in a
specialized area, analytical ability, and the ability to use appropriate
tools and techniques (Katz, 1955).
• For example, knowing software language and programming. In an
accounting firm, technical skill might include understanding and
having the ability to apply generally accepted accounting principles to
a client’s audit.
• In both these examples, technical skills involve a hands-on activity
with a basic product or process within an organization. Technical skills
play an essential role in producing the actual products a company is
designed to produce.
3. Human Skill- Human skill is knowledge about and ability to work with people. It is quite
different from technical skill, which has to do with working with things (Katz, 1955).
Human skills are “people skills.”
• They are the abilities that help a leader to work effectively with subordinates, peers and
superiors to accomplish the organization’s goals.
• Human skills allow a leader to assist group members in working cooperatively as a
group to achieve common goals.
• For Katz, it means being aware of one’s own perspective on issues and, at the same
time, being aware of the perspective of others. Leaders with human skills adapt their
own ideas to those of others.
• Furthermore, they create an atmosphere of trust where employees can feel
comfortable and secure and where they can feel encouraged to become involved in the
planning of things that will affect them.
• Being a leader with human skills means being sensitive to the needs and motivations of
others and taking into account others’ needs in one’s decision making. In short, human
skill is the capacity to get along with others as you go about your work.
4. Conceptual Skill- Conceptual skills are the ability to work with ideas and concepts.
Whereas technical skills deal with things and human skills deal with people, conceptual
skills involve the ability to work with ideas.
• A leader with conceptual skills is comfortable talking about the ideas that shape an
organization and the intricacies involved. He or she is good at putting the company’s
goals into words and can understand and express the economic principles that affect
the company.
• A leader with conceptual skills works easily with abstractions and hypothetical notions.
• Conceptual skills are central to creating a vision and strategic plan for an organization.
• The conceptual skill has to do with the mental work of shaping the meaning of
organizational or policy issues—understanding what a company stands for and where it
is or should be going.
• In fact, when upper-level managers do not have strong conceptual skills, they can
jeopardize the whole organization.
• Conceptual skills are also important in middle management; as we move down to lower
management levels, conceptual skills become less important.
Managerial Roles (Mintzberg)

• Managerial roles are behaviours adopted to perform various management

functions, like leading and planning, organizing, strategizing, and solving
problems.
• Within an organization, managers of different levels have different
responsibilities that may overlap. It enables one to develop those skills
which eventually help in strategic decision making. Managerial functions are
different from managerial roles.
• Managerial functions inform the ways that managers meet the
requirements of their duties. Managerial roles encompass the types of skills
necessary to successfully complete those duties.
• Managerial functions refer to the managerial job role from a task-based
perspective, while managerial skills have to do with the manager's ability to
execute the functions.
 3 categories of managerial roles
1. Interpersonal roles. This category includes the roles which concern interactions with people
working inside and outside the organization. Basically, the majority of managers’ time is spent
on interpersonal communication through which things get done.
• The managerial roles in this category are figurehead, leader, and liaison.

2. Informational roles. The informational category involves creating, receiving, or sharing

information with coworkers. The manager collects information from sources both inside and
outside the organization, processes it, and delivers it to those who need it.
• The managerial roles in this category are monitor, disseminator, and spokesperson.

3. Decisional roles. Interpersonal roles are about dealing with people, and informational ones
are about dealing with knowledge. Decisional roles are about action. By communicating with
people and using information, managers make decisions that lead the organization to its goals.
• The managerial roles in this category are entrepreneur, disturbance-handler, resource-
allocator, and negotiator.
Mintzberg's 10 managerial roles

1. Figurehead
• This role requires performing social, ceremonial and legal responsibilities. The Figurehead represents the
organization, as well as motivates the team to achieve goals. For people, this managerial role is a source of
power and authority.
• Examples:
• Managers in the figurehead role attend social event where they promote their company.
• Greeting a potential business client and giving a tour.
2. Leader
• The leader role is the most pivotal as it shows to which extent a manager’s potential is realized. Managers
are in charge of their people's performance, which may mean leading a team, a department or an entire
organization.
• The responsibilities include hiring and training (direct leadership) and encouragement of employees
(indirect leadership). Leaders influence and motivate people, giving them a sense of purpose to reach
organizational goals.
• Example:
• A manager sets a goal for the team and communicates his expectations, making sure that people
understand them. He monitors their progress and provides feedback and resources if needed.
3. Liaison
• Managers in the liaison role develop and maintain internal and external relationships. They are a connection link
that bridges the gap between employees of different levels to ensure work is done smoothly. Liaisons transfer
knowledge through different members of the organization, up and down the chain of command, and can also
involve their business contacts from outside the company.
• Examples:
• A manager coordinates with people inside the company, as well as coordinating work between the company’s
units.
• A manager coordinates with people outside the organization, such as buyers, suppliers and strategic partners.
• Manager-client-employee interaction. A manager communicates with a client to see what the client's needs are,
providing this information to the employees after the fact.
4. Monitor
• In the monitor role, managers are expected to look for information necessary for their organization, as well as for
information that can concern potential industry changes. They gather internal and external sources, trying to
identify problems and opportunities for growth. In other words, they scan the environment to assess the current
state of things in a company and see if corrective action is needed.
• Examples:
• Seeking customer feedback to see how exactly you can improve your products or services.
• Monitoring industry trends, like products made by competitors or government regulatory changes, in order to
meet standards and stay on track.
5. Disseminator
• Receiving information from various sources, a manager in the disseminator
role is responsible for sharing it with those who may need it. This can be
done in both verbal and written forms.
• A manager can pass on information directly to the appropriate person, or
pass it on between subordinates if they lack contact. The information can
concern the organization's direction or strategy, as well as specific technical
issues.
• Examples:
• A one-on-one conversation between a manager and an employee where a
certain issue is discussed.
• Developing a proposal for a new product design, submitting it to upper
management for approval, and providing it to the employees so that they
can get familiarized with it.
6. Spokesperson
• Managers in a spokesperson role speak for their organization, defending the
company's interests. Their responsibility is to make the organization look good
in the eyes of potential or new clients and the general public.
• Examples:
• A manager attends the annual shareholders’ meeting, informing the attendees
about the results her team has achieved this year and presenting statistics.
• A manager speaks on behalf of the company at a conference.
• Division leaders talk to other division leaders, informing them about strategies
and resource requirements.
• CEOs meet with investors or government officials to give them information
about the company which they may find useful. This way, they can persuade
investors that their company is pursuing a good strategy, and raise some capital.
7. Entrepreneur
• In the entrepreneur role, a manager organizes and runs business processes. This role develops
and implements new ideas or strategies, which often means coming up with innovative
solutions.
• Entrepreneurs create conditions for change since innovation and change are needed for a
company to stay competitive. Besides, they make sure a company adopts new products and
processes pioneered by others or change the organizational structure.
• Examples:
• A manager decides to use social media to increase sales.
• A manager reorganizes a weak department, or uses mergers or acquisitions.
8. Disturbance handler
• A manager solves issues as they arise – like sales that grow too slowly, a client breaking a
contract, or valuable employees leaving. The task of the manager in the disturbance handler
role is to fix the problem, maintaining productivity.
• Example:
• When two members of a team have a conflict, it’s the manager’s responsibility to help them
resolve it.
9. Resource Allocator
• The resource allocator role requires a manager to determine how and
where to apply organizational resources. By resources we mean
equipment, staff, funding, facilities and time. Typically, the resources
an organization has are limited, so it takes some effort to decide how
to best allocate them.
• Example:
• A manager divides funding between the departments of his
organization, based on their current and future needs.
• A marketing manager divides funding between media advertising and
promotions.
• A resource manager distributes project workload across people.
10. Negotiator
• Managers participate in negotiations, trying to reach their goals. This
managerial role includes negotiating with external parties, where they
represent the interests of their organizations, as well as negotiating
with internal parties, such as other departments or team members.
• The better negotiation skills managers have, the higher their chances
to come to an agreement with customers, better organize the work
process, and gain access to more resources.
• Examples:
• A manager negotiates pricing, delivery and design with customers.
• A manager negotiates over access to capital and personnel with
seniors.
Insights from Indian practices and ethos
• Indian Ethos in Management refers to the values and practices that the culture of India
(Bharatheeya Sanskriti) can contribute to service, leadership and management.
• These values and practices are rooted in Sanathana Dharma (the eternal essence), and
have been influenced by various strands of Indian philosophy.
• Indian Ethos is all about what can be termed as “national ethos”.
• Indian Ethos is the set of values and ethics derived from the Indian Cultures as is depicted
in the epics like Ramayana & Mahabharata and Holy Books like Bhagavad Gita & Vedas.
Tyaga (renunciation), dana (liberal giving), nishtha (dedication), satya (truth), ahimsa (non-
violence) and upeksha (forbearance) are examined as the keynotes of the Indian values
system.
• Ethos is Greek for “character” and “ethic” is derived from ethos.
• Ethos consists of convincing your audience that you have good character and you are
credible therefore your words can be trusted. Ethos must be established from the start of
your talk or the audience will not accept what you say.
• In modern usage, ethos denotes the disposition, character, or fundamental values peculiar
to a specific person, people, organization, culture, or movement.
Ethos

• The simple meaning of ‘Ethos’ is, the guiding principles of a person,

group or of an organization. ‘Ethos’ is a set of beliefs, ideas, etc.,
about social behaviour and relationship of a person or group.
• Indian ethos refers to the principles of self-management and
governance of society, entity or a system by wisdom as revealed and
brought-forth by great scriptures like Veda, Upanishads, Gita,
Mahabharata, Bible and Quran.
• This wisdom has evolved through the old practices of Indian mystics,
philosophers and religious ‘gurus’, and is now found to have profound
implications for self-management and good governance of the society
and business environment.
The ancient guiding principles thus, are a good pathway for:
1. Self-purification and Self-development.
2. Individual growth and welfare.
3. Collective growth and welfare.
4. Team spirit and Teamwork.
5. Autonomous management, minimum control and supervision.
6. Manager acts as a Mentor.
7. Self-motivation.
8. Perfection.
9. All round happiness and prosperity.
10. Skills and values.
11. Conflicts resolved by mutual understanding.
The valuable and pioneering aspects of Indian
ethos are as follows:-

1 Know Oneself 13 Co-operation

2 Purification of Mind 14 Self-Management
3 Humanity 15 Happiness
4 Mutual Trust 16 Means are Equally Important
5 Self Introspection
6 Intuition
7 Value Oriented Services
8 Spirit of Sacrifice
9 Unity in Diversity
10 Peace
11 Team Spirit
12 Self Realisation
Role of Indian Ethos in Management

• Organizations following Indian ethos considers humanity as supreme.

This provides a strong bond with internal as well as external
customers, resulting in improved performance. Indian ethos focuses
on, if a person is good, then the whole world is good.
• Any organization which follows the above ethical thought
automatically gets converted into an ethical organization, with less
conflicts and hindrances. Indian ethos impacts the performance of
business while sacrificing individual desires.
• Self-motivation and self-development helps a lot in the development
of business and its quality. Indian ethos helps in problem solving and
develops self-reliability.
• The process of management involves four aspects; maximum
utilization of resources, leading with efficiency, materializing the
organizational goals towards effectiveness and value addition to the
world through Corporate Social Responsibility (CSR).
• All these aspects are possible only in a healthy environment. Ethics
and ethical behaviour are the main ingredients of healthy
management.
• Our ancient wisdom literatures in the Vedas, Vedanta, Upanishads,
Ramayana, Mahabharata Bhagawad Gita or the Arthashastra are a
storehouse of comprehensive and powerful philosophy to be applied
in all ages for the benefit of mankind.
• Since Indian Philosophy extols unity amidst all diversities, belief in
tolerance, quest for freedom, we can become better performers by
imbibing knowledge from these scriptures on the art of management.
BUSINESS ETHOS PRINCIPLES PRACTICED BY INDIAN COMPANIES

1. Principle of `sacrifice’- An individual is trained by the principle of `sacrifice

through the process of `give and take9 policy. A person, who is willing to
sacrifice part of his bread or effort, commands a superior place in the
organization.
2. Principle of `harmony’- An individual is trained in such a way that to
avoid conflicts and friction one should be guided by certain set of moral
conducts and principles.
3. Principle of `non-violence’- This principle protects an organization from
strikes and lockouts and unnecessary avoidable conflicts. Indian companies are
guided by certain rules of conduct in the form of ethical and moral standards.
4. Principle of `reward’- The one who performs well are encouraged to do so.
This implies that the activities of individuals need to be monitored and
encouragement in the form of `rewards may cultivate the spirit of higher
productivity among groups.
5. Principle of `justice-’ The one who works hard is `rewarded and the
one who fails to do so is `punished9. This is essence the principle of
Justice.
6. Principle of `taxation-’ The one who is taxed more is encouraged
to stay fit for a longer period by proper appreciation and
encouragement. This principle applies to individuals who are
hardworking and productive.
7. Principle of `Integrity’
• An integrated mind is more productive. Groups are encouraged to
stay united in order to reap
• Common well-being.
Thank You.