The functions of management

Bush Herbert Aguma

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The process of management

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Planning
It means identifying goals for future organizational performance and deciding on the tasks and use of resources needed to attain them. Managerial planning defines where the organization wants to be in future and how to get there.

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Planning cont.
A goal is a desired future state that the organization attempts to realize. Goals are important bse organizations exist for a purpose, and goals define and state the purpose. A plan is a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks and other actions. Goals specify future ends; plans specify todays means.
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Planning cont.
The concept of planning incorporates both ideas; it means determining the organizations goals and defining the means of achieving them.

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Purposes of goals and plans

Legitimacy Source of motivation Resource allocation Guides to action Rationale for decisions Standard of performance

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The planning process

The process begins when managers develop the overall plan for the organization by clearly defining the mission and strategic goals. They translate the plan into action, which includes defining tactical plans and objectives, developing a strategic map to align goals. Managers lay out the operational factors needed to achieve goals and plans, selecting the measures and targets .
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The planning process cont

Tools for executing the plan include management by objectives, performance dashboards, single-use plans & decentralized responsibility. Managers periodically review plans to learn form results and shift plans as needed, starting a new planning cycle.

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Organizational Mission
At the top of goal hierarchy is the mission- the organizations reason for existence. The mission describes the organizations values, aspirations and reason for being. A well defined mission is the basis for devt of all subsequent goals and plans. The formal mission statement is a broadly stated definition of purpose that distinguishes the organization from others of a similar type.
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Goals and plans

Strategic goals, sometimes called official goals, are broad statements describing where the organization wants to be in future. These goals pertain to the organization as a whole rather than to specific divisions or departments. Strategic plans define the action steps by which the company intends to attain strategic goals. The strategic plan is the blueprint that defines the organizational activities & resource allocations required for meeting these targets.
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Goals and plans cont

The purpose of strategic plans is to turn organizational goals into realities within that time period. After strategic goals are formulated, the next step is to define tactical goals, which are the results that major divisions and depts with the organization intend to achieve.

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Goals and plans cont

Tactical plans are designed to help execute the major strategic plans and to accomplish a specific part of the companys strategy. They have a shorter time horizon compared to strategic plans. In business, tactical plans define what major depts do to implement the organizations strategic plan.
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Goals and plans cont

The results expected from depts, work gps and individuals are the operational goals. They are precise and measurable. Operational plans are developed at the lower levels of the organization to specify action steps towards achieving operational goals & to support tactical plans. Schedules are an important component of operational planning.
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Aligning goals with Strategy maps

Effectively designed organizational goals are aligned i.e. they are consistent and mutually supportive. An increasingly popular technique of achieving goal alignment is the strategy map. A strategy map is a visual representation of the key drivers of an organizations success & shows how specific goals and plans in each area are linked ( cause-and-effect r/shps among goals and plans.

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Operational planning
Managers use operational goals to direct employees & resources toward achieving specific outcomes that enable the organization to perform efficiently & effectively. One consideration is how to establish effective goals. Managers use a number of planning approaches, including management by objectives, single-use plans and standing plans.
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Criteria for effective goals

Goals need to be specific and measurable. They shd be expressed in quantitave terms. Effective goals have a defined time period. Goals should cover key result areas. Goals cant be set for every aspect of employee behaviour . Instead managers set goals based on the idea of choice & clarity. Managers shd also set goals that are challenging but realistic and are linked to rewards.
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Criteria for effective goals cont..

Many organizations refer to the criteria used to set effective goals by the acronym SMART. S Specific, significant, stretching M Measurable, meaningful, motivational A Agreed upon, achievable, acceptable R Realistic, relevant, reasonable, rewarding T Time based, timely, tangible, trackable
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Management by Objectives
MBO gained recognition in 1954 with the Publication of Peter Druckers book The Practice of Management. It has remained a popular & compelling method of for defining goals & monitoring progress toward achieving them. MBO is a system whereby managers & employees define goals for every dept, prjct & person and use them to monitor subsequent performance.
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The MBO process

1) 2) 3) 4) Set goals Develop action plans Review progress Appraise overall performance

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A model of the MBO process

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A model of the MBO process

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Benefits of the MBO process

Manager and employee efforts are focused on activities that will lead to goal attainment. Performance can be improved at all company levels. Employees are motivation Departmental and individual goals are aligned with company goals.

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Problems with MBO

Constant changes prevent MBO from taking hold. An environment of poor employer-employee relations reduces MBO effectiveness. Strategic goals may be displaced by operational goals. Mechanistic organizations & values that discourage participation can harm the MBO process. Too much paperwork saps MBO energy.
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Single-use & Standing plans

Single use plans are developed to achieve a set of goals that are not likely to be repeated in future. Standing plans are ongoing plans that provide guidance for tasks or situations that occur repeatedly within the organization. Single use plans typically include both programmes and projects. The primary standing plans are organizational policies, rules and procedures. Standing plans generally pertain to such matters as employee illness, absences, smoking, hiring, dismissal etc
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Organizing
Organization typically follows planning and reflects how the organization tries to accomplish the plan. Organizing involves assigning tasks, grouping tasks into depts, delegating authority, and allocating resources across the organization. Organizing is the deployment of organizational resources to achieve strategic goals.

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Organizing cont
The deployment of resources is reflected in the organizations division of labour into specific departments & jobs, formal lines of authority, and mechanisms for coordinating diverse organization tasks. Strategy defines what to do; organizing defines hoe to do it.

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Organization structure
The organizing process leads to the creation of organizational, which defines how tasks are divided and resources deployed. Organization structure is defined as; 1) The set of formal tasks assigned to individuals & depts, 2) Formal reporting r/ships including lines of authority, decision responsibility, number of hierarchical levels and span of managers control
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Organization structure cont

3) the design of systems to ensure effective coordination of employees across depts. The set of formal tasks and formal reporting r/ships provides a frame work for vertical control of the organization. The xtics of the vertical structure are portrayed in the organizational chart, which is a visual representation of an organization structure.
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Organization chart
The chart delineates the chain of command, indicates departmental tasks & how they fit together, and provides order and logic for the organization. Every employee has an appointed task, line of authority and decision responsibility. Look at work specialization, chain of command, span of mgt, Centralization and decentralization

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Approaches to organization structure

Vertical functional Divisional Matrix Team based Virtual network *Their advantages and disadvantages

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Leading
Leading is the use of influence to motivate employees to achieve organizational goals. Leading means creating a shared culture & values, communicating goals to employees throughout the organization, and infusing the employees with the desire to perform at a high level. *Leadership styles

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Leadership versus Management

Effective managers have to be leaders, too, bse distinctive qualities are associated with mgt & leadership that provide different strengths for the organization. Mgt & leadership reflect two different sets of qualities and skills that frequently overlap within a single individual. A person might have more of one set of qualities than the other.
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Leadership versus Management cont

Mgt promotes stability, order and problem solving within the existing organizational structure and systems. Leadership promotes vision, creativity and change. In other words, a manager take care of where you are; a leader takes you to a new place.

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Leadership versus Management cont

Leadership means questioning the status quo so that outdated, unproductive or socially irresponsible norms can be replaced to meet new challenges. Leadership cant replace mgt; it shd be an addition to it. Good mgt is needed to help the organization meet current commitments, while good leadership is needed to move the organization into the future.
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Controlling
Controlling means monitoring employees activities, determining whether the organization is on target toward its goals, and making corrections as necessary. Organizational control refers to the systematic process of regulating organizational activities to make them consistent with the expectations established in plans, targets and standards of performance.
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Controlling cont.
To effectively control an organization, managers need to decide what information is essential, how they will obtain that information, and how can and should respond to it. Managers decide which standards, measurements and metrics are needed to effectively monitor and control the organization and set up systems for obtaining that information.
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Steps of feed back control

All well designed systems involve the use of feed back to determine whether performance meets established standards. Establish standards of performance Measure actual performance Compare performance to standards Take corrective action

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Problem solving and decision making

Planning is said to be a decision making process. A process in which you gather information about an issue and take a decision. In taking decisions, we are usually trying to solve a problem. A decision is a choice made from available alternatives. Decision making is the process of identifying problems and opportunities and resolving them.
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Problem solving and decision making cont..

A problem exists whenever there is a difference between what actually happens and what the supervisor wants to have happen. Problem solving is the process of taking corrective action in order to meet objectives.

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