For accomplishing objectives and goals, information about the environment, market, customers and non-customers, technology in one’s own industry and others, is required. Proper strategies for growth are to be chalked out on this information.
Functions of Management:
The basic Management functions include
Planning
Organising
Directing / Leading
Delegation
Decision Making /Taking
Motivating
Co-ordination
Controlling
1.- Planning:
Planning is a process for accomplishing purpose. It is blue print of business growth and a road map of development. It helps in deciding objectives both in quantitative and qualitative terms. It is setting of goals on the basis of objectives and keeping in view the resources.
It is “an anticipatory decision making process” that helps in coping with complexities. It is deciding future course of action from amongst alternatives. It is selection of missions, objectives and “translation of knowledge into action.” Planning is needed to foresee the uncertainties of the future, Planning is needed to foresee the uncertainties of the future as well as to cope up with complexities, problems and opportunities resulting from change. It is required in performing managerial function.
Planning gives more power over the future. It is deciding in advance what to do, how to do, when to do, and who would dot. The planning function involves establishing goals and arranging them in logical order.
Purpose of Plan
As no two organizations are alike, so also their plans. It is therefore important to prepare a plan keeping in view the necessities of the enterprise. A plan is important aspect of business. It serves following three critical functions: Planning is setting of goals on the basis of objectives and keeping in view the resources. It is necessary for growth and involves
TO GROW
a) Goal setting
b) Resources
c) Opportunities
d) Will
Planning helps management to clarify, focus and research their businesses or project's development and prospects.
Provides a considered and logical framework within which a business can develop and pursue business strategies over the next three to five years.
Offers a benchmark against which actual performance can be measured and reviewed.
How a plan should be?
A plan should be a realistic view of the expectations. Depending upon the activities, a plan can be Long Range, Intermediate range and of Short range. It the framework within which it must operate.
Preparing Plan:
A plan plays a vital role in helping to avoid mistakes or recognize hidden opportunities.. The planning process enables management to understand more clearly what they want to achieve, and how and when they can do it.
A well-prepared business plan demonstrates that the managers know the business and that they have thought through its development in terms of products, management, finances, and most importantly, markets and competition.
Planning is not done off hand. It is prepared after careful and extensive research. For a comprehensive business plan, management has to
· Clearly define the target / goal in writing.
1. It should be set by person having authority
2. The goal should be realistic
3. Specific
4. Acceptability
5. Easily measurable
Identify all the main issues, which need to be addressed.
Review past performance.
Decide budgetary requirement
Focus on matters of strategic importance.
What are requirements and how will it be met.
What will be the likely length of the plan and its structure?
Identify Shortcomings in the concept and gaps.
Strategies for implementation.
Review periodically.
Preparing Business Strategy:
The process of putting the plan into action is called Strategic Planning and implementation part is known as Operational Planning. Whereas, Strategic plan reflects visionary and conceptual outlook that provides the foundation and framework for a comprehensive business plan, Operational Plan focuses on its implementation aspect and related issues.
For preparing an effective business plan management has to have
Vision
Mission
Objectives
Values
Strategies
Goals
Programmes
Vision : Vision statement is a long-range strategy. It is broken in to short range for achieving desired results. It is a clear definition of what changes will occur on account of new initiatives.. It is visualization of the position and standing of the organization at a future date.
Mission : Mission indicates the purpose of the business. It indicates what activities the organization will perform, and how will it perform etc.? What would make the business special/competitive etc.?
Objectives : These are the purpose of running the business enterprise. It is why of business. Aside from earning regular profits, objectives also indicate to the expectations and requirements of all the major stakeholders, including, and should reflect the underlying reasons for running the business.
Values : Vlues indicate conduct of business, its ethical and moral values. It talks about relationships with society at large, customers, employees, local community shareholders etc.
Strategies : These are the rules and guidelines by which the mission, objectives etc. may be achieved.
Goals : Goals are specific interim or ultimate time-based measurements to be achieved by implementing strategies in pursuit of the objectives of the organization.
Programme : Programmes set out the implementation plans for the key strategies. It goes without saying that the mission, objectives, values, strategies and goals must be inter-linked and consistent with each other.
Strengths, weaknesses, opportunities and threat (SWOTs):
SWOT is a useful tool for planning and deciding strategies for achieving corporate goals. It is introspection and evaluation of abilities, draw backs etc., on the basis of past results, achievements. Once the SWOT analysis is complete, the future strategy can be chalked out
Strengths & Weaknesses:
Strengths and weaknesses are essentially internal to the organization and relate to matters concerning resources, in key areas.
Strengths are the positive support to the function of an organization. Weaknesses are those aspects that work against the growth and functions of organization. They are detrimental to growth.
Threats & Opportunities:
Threats refer to risks, competition and other inhibiting factors. The opportunities refer to scope and challenges available both in its internal and external environment.
2.- Organizing:-
The effectiveness of an organization is influenced by the organization culture, which affects the way the managerial function of planning, organising, staffing, leading, and controlling are carried out.
In any institution wide variety of people with diverse views and experience work together. Organizing helps in creating an environment for performance by integrating resources i.e. men, material capital, equipments, and their utilization in a well-planned manner.
Organising is a vital part of management. It is deciding and developing a structure of roles for people for effective performance. It helps in proper utilization of resources at the disposal of the institution, so that corporate goals are achieved.
Ingredients for organising properly:
There is no simple way to organize. It depends on the kind of jobs to be done, the way it is to be done and the people who would do and monitor.Organizing involves developing an institutional structure of roles for effective performance. It requires a network of decisions and communication with others for coordinating efforts for achieving enterprise goals. It is designing a framework for segmentation and departmentalization of activities so that organisational and individual objective can be achieved effectively and efficiently.
Organising process:
Organizing is science, which requires logical thinking and proper planning of
People
Planned goals
Resources
Structure
Task/responsibility
Rules and regulations
Coordination
Effectiveness of organization activities depends on
Making the work flow smooth and simple
Developing harmonious relationship
Lesser tier of authority
Quick decision
Effective communication
3.-Directing/ Leading: -
Is a process of influencing people and, canalizing their ability skill, creativity towards organizational goals? It is guiding people’s activities in desired direction. It requires exceptional interpersonal skills and the ability to motivate people, an essential and most important aspect of managing. Directing is not merely giving instructions, but solving the problems and showing a way and leading.
Role of Leader:
Management and leadership are supplementary and complementary to each other. Whereas Management is doing things right, leadership is doing right things. Fate of an organization is made or marred by its leaders as lifeline of the organization depends on their knowledge, vision, skill, experience, ability to plan, guide and coordinate
The person directing and leading is the leader. His role is to develop people. Since, goals of group/ individual may be different than that of organization; therefore behavior is to be directed towards desired goals.
The style of functioning of a leader is known as leadership. Leadership involves setting of long-term goals and rebuilding teams and trust. It is influencing the behaviour of individuals or groups for achieve organizational goals by encouraging people to work with willingness, zeal and confidence.. A leader promotes group cohesiveness and team effort
4.-Decision-Making /Taking
Decision-making / taking is involved in whatever we do. In every thought we think, in every action we take, we are faced with a decision. Taking decision is an art, which is based on scientific methods of interpreting the issue for which decision is being taken. Decision-making is a reasoning process, which can be rational or irrational. It has two contrasted meanings, truth finding and truth –making.
The question of decision-making comes only when one has more than one available option and only one is to be chosen out of them. It is the process of selection of a course of action among alternatives. Decision is logical understanding and reasoning .This is where decision-making skills come into play to take the right option, to make correct decision. Decision-making is said to be a psychological construct. Although we can never "see" a decision, we can infer from observable behavior that a decision has been made. As uncertainties increase, decisions become more complex.
Necessity for Decision:
Taking decisions is an important management technique for effective functioning. Avoiding decisions often seems easier. It is said that a bad decision is better than no decision at all. No action starts unless a decision is made.. It is also an important tool for effective people management.
The purpose of decision-making is to find out various options and alternatives of a given situation problem or otherwise and to make the best choice from amongst them to arrive at a given result.
In some cases arriving at an appropriate decision may be easy because of adequate guidelines provided in the organization or from the analysis of the problem only one option is available or there is a precedent within the experience of the manager.
Classification of decisions:-
Decision depends on particular situation and circumstances.Decision can be classified as:
Routine Decision
Policy Decision
Spot Decision
Administrative Decision
Shared Decision
Committee decision
Operational Decision
Routine Decision: These are programmed decisions which are taken within the set frame of rules and regulations. These are of repetitive nature and do not require much knowledge and intelligence.
Policy decision: These decisions have long-range impact and repurcurtions on the organisation. These decisions are the framework; guidelines for smooth management. These decisions are the rulebook and blue print for the organisation.
Spot decision: These are non programmed decisions they are novel and non repetitive. Looking at the emergent circumstances of the event, when an authority takes a decision, such decisions are termed as on the spot decision. Say in the event of a fraud, decision to suspend the culprit immediately from the service is a decision on the spot. These are situational decisions.
Administrative Decisions:
These decisions are regulated through norms, rules, procedures and agreements. These decisions are taken on the predetermined dotted lines as per rules and there is no deviation this is just like applying mathematical formulas. These decisions are easy as rules and guidelines support them.
Operational Decisions:
These decisions are related to day today functioning.
Shared Decisions:
These are consensus decisions taken by a team. Shared decisions improve quality of a decision. It involves those who are going to implement them or are being affected by them. This helps in mutual trust and respect amongst the members and brings out expertise and resources of every group member. This helps in identifying and using various ideas, suggestions, options, dimensions, angles, which emerges from the process of discussion Shared decisions, are mostly effective decisions. The skills required in shared decision-making process are problems solving ability; work facilitating skills and team building skills.
Committee Decisions:
Committees of experts are appointed for evaluating a proposal / project from various angles viz. technical, financial, administrative, marketing etc. The committee takes the decisions, which are then implemented. The decisions are joint decisions and no individual responsibility lies in case the decision turns out to be wrong in future.
Qualities of a decision maker:
Decisions imply consequences. Decision-making can be hard. Almost any decision involves some conflicts or dissatisfaction. Courage to decide is an important quality, which the persons should have. The decision-maker must possess sound judgment. He must quickly perceive opportunities as well as dangers and react speedily. He should have proper balance of head and heart then only he can take proper, correct and appropriate decision. Emotions and psychological factors should not influence him .He should have logical thinking abilities which helps in taking sound judgment and safe guards from error.
How to take effective decision :
Decision is logical understanding and reasoning. Its effectiveness depends on the trust and faith people have in the person taking decision, when they do not doubt the sincerity. Effectiveness of a decision depends on the time factor. Decision should be timely. Quality and effectiveness of decision depends on the knowledge, skill, experience, exposure of the decision maker, and his position in the organisational hierarchy, authority and power vested in him. It is also influenced by the prevailing circumstances in which decision is being taken
There has to be broader guidelines or framework for taking decision. The person taking decision should take decision on the merits of the issue and within the laid down parameters. A person taking decision should not be biased. He should not only be fair, but should appear to be fair. There should be transparency. Decision should be taken after examining and evaluating the entire facts and figures. Decision taken by discriminative mind and understanding is generally resented. Effectiveness of a decision also depends on the sincerity of the decision taker. Effectiveness of a decision depends on the sincerity of the decision taker.
Taking Decisions:
Past experiences, imagination, reasoning abilities provide reasonable assistance in taking decisions and in avoiding mistakes. It also helps in generating alternatives. Decisions are no decisions if they are not implemented.
5. Motivating:
Human behaviour is series of activities. People do things that lead them to accomplish some thing. Human motives are based on needs, whether consciously or subconsciously felt. Intensity of needs vary from person to person. Motivation is the drive to satisfy a need. It is a complex concept .It pertains to various drives, desires, needs, wishes, and other forces that direct a person to perform.
Motivation is a drive or impulse within an individual for better performance. A manager cannot do his job without knowing what motivates people. His job is to manage the work of people for performance by leading the work force, boosting their morale and motivating them. The goal is to make productivity the specific strengths of each individual.
· Low Motivation ------ Less performance
· When highly motivated ------- people work 80 to 90% of their ability.
· Without motivation ------ 20 to 30% work is done which is sufficient to retain job.
Motivational behaviour is not only influenced by the personal characteristics of an individual but also by the various conditions prevalent in the organization.
6. Coordinating: -
Coordinating is lifeline of the entire system. it is an important aspect of management process. Corporate goals cannot be achieved without coordination between various functions and functionaries’. Coordination helps in monitoring, controlling and improving efficiency, and output.
7. Controlling: -
Controlling is a process of monitoring performance and taking action to ensure desired results. It ensures that right things happen in the right way and at the right time. It helps in ensuring that objectives and accomplishments are consistent with one another throughout the organization. It helps in making compliance with rules and policies of government. Planning and coordination are interred related. The control process starts with planning and establishing performance objectives. Controls facilitate comparison of intended goals with actual performance. The purpose is to ensure high-quality performance and satisfactory results while maintaining an orderly and problem-free environment. Controlling includes measurement of performance, and institution of corrective actions. It is the feed back of results. The purpose of control in any system of managerial action is to detect deviations and taking corrective actions as to ensure that objectives are achieved.
Processes involved in controlling
a) Establishing objectives and standards. Follow up
b) Measuring actual performance
c) Compare results with objectives
d) Taking necessary action in case of deviation.
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