Functions Of Management

Made
By,
Pooja
Yadav
Roll No: 33
AIKC
College
A ear 2016-2018
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Functions of Management
• The process of achieving company goals
effectively and efficiently by engaging in the
six major functions of planning,
organizing, staffing, directing, co-
ordinating & controlling of company’s
resources is Called as Management.

• Resources include:
 Human resources e.g. employees
 Financial resources e.g. bank loan
or investment from shareholders
 Physical resources e.g.
machinery, inventory
 Information resources e.g. knowledge
Process of Management

Human
Resources

Financial
Manager Resources Goals
Planning→ Organising→Staffing
Physical →Directing→Co-ordinating → Controlling
Resources

Information
Resources
Company Goals
• Every company has its company goals.
• E.g. The basic goal of Walt Disney is to promote the happiness and
wellbeing of kids and families by inspiring them to join the company’s
activities in creating a brighter tomorrow. (sources:
http://thewaltdisneycompany.com/citizenship)
• Other examples of company goals include:
• Maintain growth of 10% net profit for each year.
• Provide reliable products to customers.
• Establish favourable image with public
• Manager therefore makes use of a company’s resources to efficiently
and effectively achieve the company goals with the help of Functions of
Managements.
Planning
Planning involves setting goals
of the company and
establishing a plan or strategy
to achieve these goals.
Reasons for Planning
• To coordinate human resource
• To reduce uncertainty
in operation
• To reduce overlapping
and wasteful activities
• To Setup and achieve overall
goal of organization
Importance of Planning
• It provides directions
for achievement of goals
• It reduces the risk of Uncertainties
• It helps in increasing the
overall efficiency of the
organization
• It helps to ensure optimum use
of available resources
• It helps in improving moral of
the employees
 Planning
process
2. Listing 3. Selecting best

1. Setting alternative
of ways
company goals achieving way to achieve
the
the goals goals

4. Developing
plans to 5. Putting plans
pursue into action
chosen alternative
Organizing
• Organizing is the process of
allocating and arranging the
resources of the company
such as employee, facilities
and equipment, finance, to
achieve the goals of the
company.
• Organizing in correct order is
an art to increase the efficiency
of the organization.
Importance of Organizing
• Maximum work in minimum possible time
• Optimum utilization of available resources
• Proper organizing leads to Specialization
in different units of organization
• It Increases the efficiency of the employees.
• It facilitates proper distribution of
Authority as well as Responsibility
 Organizing Steps

5. Evaluate the
3. Assign work
1. Determine the 4. Coordinate the results or
2. Group these to specific
specific work of organising
activities into a employees and
activities different process and
needed to logical sequence provide resources
groups and make appropriate
required
implement employees adjustment
Staffing
The staffing function of management controls all recruitment and
personnel needs of the organization. The main purpose of staffing is to
hire the right people for the right jobs to achieve the objectives of the
organization.
Importance of staffing
• Staffing helps in maintaining smooth human relationships in
the organization which turns to be key to success
• Staffing has the long term effect on the efficiency of the organization
• It helps in selection of best person for the respective job
• It helps in providing job satisfaction to the employees
• It provides the organization with efficient an skill full
employees resulting in achievement of organizational goals
Departmentalisation of staff by Function
• To divide an organisation into separate units according to their key
function performed in the firm. E.g. Production, Marketing, Finance, etc.
• Advantages
• Easier to lead and control
• Resources can be allocated by departments
• Disadvantages
• Lack of communication between departments
• Employees become narrow specialists
Directing
• Directing is a process in which the manager instructs, guide
and oversees the performance of the workers to achieve
predetermined goals.
Importance of Directing
• Provides positive and • Effective directing function
dynamic leadership brings Stability & Balance
• Provides maximum opportunities • Proper Direction Leads to
• Provides proper motivation Efficient & Effective use
of personnel of resources
• Ability to command people
Co-ordination
• Coordinating function of
the management consists of inter-relating the
various parts of the work as well as the work
of different departments. It involves
coordinating the various job roles and
responsibilities of the employees so that they
have good relationship with the co-employees
while delivering the output.
Importance of Co-ordination
• Co-ordination enhances team efforts
• It acts as a creative force for achievement of desired results
• Co-ordination ensures optimum use of resources
• Well coordinated work enhances team spirit as well as
efficiency of employees
• It acts as a motivational force for the employees which brings
in creativity & inovation
Controlling
• Controlling is a managerial function
which ensures the effective & optimum
use of organizations resources so as to
achieve planned goals.
• Controlling is the process of evaluating and
correcting individual performance to
ensure that outcomes conform to the
standard set before
Controlling Process
.
Illustrative Example for the Control Process
• Setting
Step Step 4 Standard

1
• Measuring actual performance

• Comparing actual performance with standard

Step • Taking corrective action
2

Step
3
Mont each month, significantly below the target, the Sales Director should reduce the target if it is
hly the sales unrealistic for the managers to achieve or do more promotion to stimulate the sales.
sales figure of each If, on the other hand, monthly total are significantly high, which may indicate the target
target manager is is too easy to achieve, then the Sales Director should increase the target total.
set by recorded so
Sales total
Direct monthly sales
ors. levels can be
Sales determined.
mana
gers
are
then Compare
requir monthly sales
ed to total to sales
achiev target to see
e the if any
sales deviation.
target.

If
monthly
At the
sales are
end of
Importance of Controlling
• Coping with uncertainty because of the standard set in
advance, managers can react quickly to any sudden events.
• Detecting irregularities such as poor quality, cost overruns etc.
and managers can take remedial action as soon as when it arises.
• It facilitates Coordination between departments
• It ensures efficient use of resources
• It Helps to improve overall Corporate Image
Evaluation & analysis
• Q.1 Function of management is concerned with
inter relating different parts of the work.

a. Planning
b. Controlling
c. Co-ordination
Sorry..! Incorrect answer!

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Q.2 Function of management is concerned with the reduction
of wastages by taking corrective steps.

a. Controlling
b.Staffing
c. Co-ordination

Q.3 Staffing Function of Management is related with

a. Selecting best raw material for production
b. Selecting best Candidate for particular job
c. Giving Directions to Complete the job
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No.3 Move To the Next
Question No.4
Q.4 Planning Function Deals with Following

a. Setting up Organizations Goal

b. Giving Directions to lower level management
c. Recruitment of people in organization

Q.5 is the Process of allocating the resources.

a. Directing
b. Controlling
c. Organizing
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Thank You