Unit II

Management Functions
By Group : 2
Sana Saleem
Abrar
Tariq Jamil
Institute of Nursing Sciences,KMU
Objectives:
Define management
Identify the functional approach of managers
Discuss management process
Discuss the attributes of an effective manager
Analyze the function of a nursing manager and
management nurse in relation to planning,
controlling, organizing, directing and evaluating.
Continue…
Describe functions of management process
Discuss some selected management processes
commonly used by nurses in their managerial role
Understand the concept of strategical planning
Discuss various strategies managers use to
coordinate material and human resources and for
the accomplishment of organizational goals
Definition:
Management is the art of getting things done by other

According to Henri Fayol, "to manage is to forecast

and to plan, to organize, to command, to co-ordinate
and to control."[1]
Fredmund Malik defines it as "the transformation of
resources into utility."

General and administration management( London: Sir

Isaac Pitman and Sons Ltd,1949)p.5
Continue…
Peter Drucker (1909–2005) saw the basic task of
management as twofold: marketing and innovation.
Nevertheless, innovation is also linked to marketing
(product innovation is a central strategic marketing
issue). Peter Drucker identifies marketing as a key
essence for business success, but management and
marketing are generally understood as two different
branches of business administration knowledge.

Peter Drucker "The Principles of Management".

 What Do Managers Do?
Functional Approach
Planning
Defining goals, establishing strategies to achieve goals,
developing plans to integrate and coordinate activities.
Organizing
Arranging and structuring work to accomplish organizational
goals.
Leading
Working with and through people to accomplish goals.
Controlling
Monitoring, comparing, and correcting work.
Management process:
Some regard management process as getting things
done through people.
Some consider it as the process of reaching
organizational goal by working with and through
people
Continue..
Management process is defined as “the process
composed of interrelated social and technical
functions activities ( roles ) occurring in a formal
organizational setting for the purpose of
accomplishing predetermined objectives through
utilization of human and other resources.”
Continue…
According to D.E McFarland, ‘ Management process is the
distant process by which the managers create , direct,
maintain and operate purposive organization through
systematic , coordinated and cooperation human efforts.”(4)

According to George R. Terry, “ Management process is a

distinct process consisting of planning, organizing, actuating
and controlling, performed to determine and accomplish
objectives by the use of people and other resources.”(5)

Management: Principles and Practices (London: The

Macmillan Company,1970),p.5
Principles of Management(New York: John Wiley &
Sons,1955),p.19
Attributes of effective manager
Leadership.
Experience
Communication
Knowledge
Organization
Time Management
Reliability
Confidence
Respect for employees
Function of Nurse Manager
Nurse managers work with their staff to coordinate all
aspects of daily patient care on the unit. By ensuring that
staff, patients, and patients' families are communicating,
nurse managers help unit staff members deliver the safest
possible care.

Nurse managers:
Embody both the nurse and executive roles.
Typically report to a supervising nursing leader.
Are responsible for the function of their unit.
Continue…
Luther Gullic gave a new formula to suggest the
elements of Management Process i-e basic functions of
management
According to him, management process may be
indicated by the word “PODSCORB”
Here, ‘P’ states for ‘Planning’, ‘O’ for ‘Organizing’, ‘D’
for ‘Directing, ‘S’ for Staffing, ‘CO’ for ‘Coordinating’,
‘R’ for ‘Reporting and ‘B’ for ‘Budgeting’
Gullic coined the word ‘PODSCORB’ to suggest seven
functions of management.
Management function and process
Management Functions:
Function of Management Process:
Basic functions of management
Planning
Organizing
Directing
Controlling
We may add some more function in the management process as
follows:
Motivating
Co ordinating
Staffing
Communicating
Planning:
Planning is the primary function of management
It involves determination of a course of action to achieve
results/ objectives
Planning is the starting point of management process and
all other functions of management are related to and
dependent on planning function
Planning is the key to success, stability and prosperity in
business
It act as a tool for solving the problems of a business unit
It helps to visualize the function problems and keeps
management ready with possible solutions
Organizing:
Organizing means bringing the resources ( men ,
materials, machines) together and use them properly for
achieving the objectives
It is a process as well as structure
Organizing means arranging ways
It provide suitable administrative structure and facilitates
execution of proposed plan
Organizing involves departmentalization, establishing
span of control, delegation of authority and provision of
mechanism for coordination of various business
activities.
Directing ( Leading)
Directing deals with guiding and instructing people to do
the work in the right manner
It is the responsibility of manager at all levels
They have to work as leaders for their sub ordinates
It involves raising the morale of subordinates
It involves communicating , leading and motivating
Clear plans and sound organization set the stage but it
requires a manager to direct and lead his men for achieving
the objectives
Leadership is essential on the part of managers for
achieving organizational objectives
Controlling
Controlling involves three broad aspects:
1. Establishing standards of performance
2. Measuring work in progress and interpreting results
achieved and
3. Taking corrective actions, if required
Managers have to exercise effective control in order to
bring success to business plan
It is a continuous activity of a supervisory nature
Motivating
Motivating is the process through which a manager
motivates his men to give their best to the organization
It means to encourage people to take more interest and
initiative in the work assigned
Organization prosper when the employees are motivated
through special efforts including provision of facilities
and incentives
It is a psychological process of great significance
It is actually inspiring and encouraging people to work
more and contribute more to achieve organizational
objectives
Coordinating:
Effective coordination and also integration of activities
of different departments are essential for orderly
working of an organization
A manager must coordinate the work for which he is
accountable
Coordination is essential at all levels of management
It gives one clear cut direction to the activities of
individuals and department
It also avoid misdirection and wastages and brings
unity of action in the organization
Staffing:
Staffing refers to provision of manpower for the
execution of business plan
Staffing involves recruitment, selection, appraisal,
remuneration and development of personal
The need of staffing arises in the initial period and also
from time to time for replacement and also along with
expansion and diversification of business activities
Every business needs stable and cooperative staff for
management
‘Right man for right job’ is the basic principles in staffing
Communicating:
Communication is necessary for the exchange of opinions, ideas
and information between individual and department
Manager should be a great communicator
In an organization, communication is useful for giving
information , guidance and instruction
They have to use major portion of their time on communication
in order to direct , motivate and coordinate activities of their
subordinate
People think and act collectively through communication
According to Louis Allen, ‘Communication involves a
systematic and continuing process of telling ,listening and
understanding
Strategic Management used by
manager
What is Strategic Management?
Application of the basic planning process at
the highest levels of the organization
Top management sets goals for the
performance of the organization
◦ Carefully formulating, implementing, and
evaluating plans and strategies
What is Strategic Management?
Most important part is developing strategic plans
Plans must remain current as changes occur inside and
outside the organization
Involves many levels of management
Top level formally develops basic plans
Different departments may be asked to develop plans for
their own areas
A solid plan guarantees that plans are coordinated and
are supported by everyone in the organization.
 Planning Tools
Budgets – most widely used tool
Schedules – deadlines
Standards – Quality, Quantity, Time, Cost
Policies – general rule for the whole business
Procedure – steps followed to perform certain work
Research – Gathering information
Planning
Serves as a guide for making decisions
The act of setting goals, developing strategies,
outlining tasks, creating timelines

Each organization develops its own plan to guide

its operations
All plans must work together toward the
organization of overall goals.
 Importance of Planning
Mangers use their plans to determine whether the
business is making progress
It encourages managers to be more specific in their
decisions
Planning in a large business is like a jigsaw puzzle. All
the pieces must work together
Coordination to avoid conflict & missed opportunities
Sharing plans between departments helps each see
how their plans effect another
 Levels of Planning
Managers plan on two levels
Strategic planning (upper management)
Long term
Provides broad goals & direction for the entire business

Operational (mid-level management)

Short term
Identifies specific activities for each area of the
organization.
 Setting Goals
You will never know when you have arrived if you don’t know
where you are going.

Goal – Is a specific statement of a result the business expects to

achieve

Characteristics of Effective Goals:

1. Specific & Meaningful 3. Clearly Communicated
2. Achievable (realistic) 4. Consistent with each other
and overall company
Operation Planning
Determines the:
How it will be done
Who will do it
What resources are needed to do it

Operational plans direct the day-to-day activities of a

organization.
Strategic Management Approach
Three phases critical to the success of the
process
Formulation
 Developing the strategic plan

Implementation
 Putting the formulated plan to work

Evaluation
 Continuously evaluating and updating the strategic plan
Formulating Strategy
Developing the grand- and business-level strategies
to be used by the company
Company’s strengths/weaknesses and
threats/opportunities shape the strategies
First step is to understand the current position of
the company
Identify mission, identify past and present strategies,
diagnose the company’s past and present performance,
set objectives for the organization operation
Formulating Strategy
Identify the mission statement
Outlines why the organization exists
Describes the organization basic products and/or
services and defines markets and sources of
revenue
Designed to accomplish several goals and
ensures a common purpose within the
organization.
Identifying Past and Present Strategies
Organization need to understand and appreciate
their corporate history
Strategic managers should ask
Has past strategy been developed?
If not, can past history of the organization be
analyzed to identify the strategy that has
evolved?
If yes, has the strategy been recorded in
writing?
Diagnosing Past and Present Performance
A corporate planner must decide if past
strategies worked and if strategic changes
are needed by asking:
How is the organization currently performing?
How has it performed during the past few years?
Is the performance trend moving up or down?
Setting Goals
Concise statements that provide direction
employees and set standards for achieving
the organization strategic plan
Goals must be reevaluated as the
environment and opportunities change
Multiple goals are used to reflect the
desired performance
Policies, Procedures, and Rules
Policies are broad general guides to action
that establish boundaries within which
employees must operate
“answering all written customer complaints in
writing within 10 days”
Policies, Procedures, and Rules
Procedures are detailed series of related steps/tasks
written to implement a policy
Define methods through which policies are achieved
“the customer service representative must note the
complaint of Form 622 and forward the yellow copy of
the form…”
Rules detail specific and definite corporate actions
that employees must follow
Leave little doubt about what is to be done
“no smoking in the conference room”
Implementing Strategy
Action stage of strategic management
Managers determine and implement the
most appropriate organization structure,
motivate employees, develop short-range
goals, and establish functional strategies
Strategy must fit with current company
policies
Or conflicting policies must be changed
Evaluating and Controlling the Strategic Plan
Process of continuously monitoring the
organization progress toward its long-range goals
and mission
Managers should ask:
Does the grand strategy need revising?
Where are problems likely to occur?
Basic strategy evaluation strategies:
Review external and internal factors that are the bases
for current strategies
Measure performance
Take corrective action
SWOT Analysis
Strengths, Weaknesses, Opportunities,
Threats
Process that allows organization to evaluate
overall health
Internal (SW) – Can Control
External (OT) – Can’t Control
Most important result of a SWOT analysis is the ability
to draw conclusions about the attractiveness of the
company’s situation and the need for strategic action
Evaluating and Controlling the Strategic Plan
Emphasis is making the company’s
managers aware of the problems that are
likely to occur and of the actions to take if
they do arise
Plan ahead and avoid disaster
Strategic planning and evaluation should be
done on a predetermined schedule and as
frequently as necessary, determined by
internal and environmental factors
Referencing:
1. General and administration management( London: Sir
Isaac Pitman and Sons Ltd,1949)p.5
2. Peter Drucker "The Principles of Management".
3. Management: Principles and Practices (London: The
Macmillan Company,1970),p.5
4. Principles of Management(New York: John Wiley &
Sons,1955),p.19