Part 1

Review of managerial functions focusing

on essential strategies for organizational
efficiency and effectiveness.
 1. PLANNING

Planning is the process of identifying what

you want to do, how to do it, what
resources to use to achieve organizational
goals and objectives.

1–2 Copyright © 2004 Prentice Hall, Inc. All rights

The Planning Process:
1. Defining of goals and objectives.
• Identify desired outcomes or results in every ways.
• Be specific.
2- Determining where you stand vis-a-vis goals and
objectives.
• Evaluate current accomplishments relative to the desired
results.
• Consider the organization's strengths and weaknesses.
3. Developing premises regarding future conditions.
• Anticipate future events by generating alternative courses
of action. This will help identify scenarios that may hinder
the progress toward your objectives.
The Planning …
4. Analyzing and choosing among action alternatives.
• List and carefully evaluate possible actions.
5. Implementing the plan and evaluating results.
• Take action and carefully measure progress toward
objectives.
• Do what the plan requires.
• Evaluate results.
• Revise plans if needed.
•Importance of Planning

1. Planning provides information about the

organization's purpose and mission.
Purpose the reason for an organization's
existence
Mission the path the organization takes to
achieve its purpose.
2. It sets task scope.
3. it defines what method of motivation to use.
4. It sets performance standards.
•Examples of Planning Function Decisions

 What are the organization’s long-term objectives?

 What strategies will best achieve those objectives?
 What should the organization’s short-term objectives
be?
 What is the most efficient means of completing
tasks?
 What might the competition be considering?
 What budgets are needed to complete department
tasks?
EXHIBIT 4.1

1–6 Copyright © 2004 Prentice Hall, Inc. All rights

•Planning: Focus and Time
• Strategic plans
• Plans that are organization-wide, establish overall
objectives, and position of organization in terms of
its environment.
• Tactical plans
• Plans that specify the details of how an
organization’s overall objectives are to be achieved
• Short-term plans
• Plans that cover less than one year
• Long-term plans
• Plans that extend beyond five years
1–7 Copyright © 2004 Prentice Hall, Inc. All rights
 Strategic Plans:
• Apply broadly to the entire organization
• Establish the organization’s overall objectives

• Seek to position the organization in terms of its

environment
• Provide direction to drive an organization’s efforts
to achieve its goals.
• Serve as the basis for the tactical plans.

• Cover extended periods of time

Example of Strategic Plans:.

Long term investment plans, Product diversity
plans, etc.
1–8 Copyright © 2004 Prentice Hall, Inc. All rights
 Tactical Plans (operational plans)
• Apply to specific parts of the organization.
• Are derived from strategic objectives

• Specify the details of how the overall objectives are

to be achieved.
• Cover shorter periods of time

• Must be updated continuously to meet current

challenges
Example of Tactical /Operational Plans:
• Production Plans, Financial Plans, Facilities Plans
Marketing Plans, Human Resource Plans, etc.

1–9 Copyright © 2004 Prentice Hall, Inc. All rights

2. ORGANIZING

Organizing - involves identifying, subdividing,

grouping and coordinating the various
activities required to achieve the objectives
of the institution.

“Organizing is a function by which the concern

is to define the role positions, the jobs
related, and the co-ordination between
authority and responsibility.
(Chester Barnard)
STEPS IN ORGANIZING
Identifying the required activities.
classifying and grouping the activities into
related areas and establish group design/
structure.
Assigning activities to respective groups and
delegating appropriate authority
Coordinating organizational operating
relationship horizontally and vertically.
•
Principles of Organizing
1. Principle of Departmentation — refers to the
particular groupings of functions or activities.
2. Principle of Unity of Command — each worker
has only one boss or direct superior to avoid
conflict in authority
3. Principle of Delegation of Responsibility and
Authority
4. Principle of Span of Control — refers to the
number of subordinates a superior can
manage effectively.
5. Principle of Check and Balance
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 Major Types of Organization Structures:

1. Functional Structure

2. Divisional Structures

3. Matrix Structure

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Management 8/e -
1. Functional Structures:

14
Major Types of Organization Structures…

1. Functional structures
• People with similar skills and performing
similar tasks are grouped together into
formal work units.
• Members work in their functional areas of
expertise.
• Work well for organizations producing few
products or services.

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2. Divisional structures based on product,
geography, customer, and process.

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Major types of organization structures…

2. Divisional structures
• Group together people who work on the
same product or process, serve similar
customers, and/or are located in the
same area or geographical region.

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3. Matrix structure

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3. Matrix structure
• Combines functional and divisional
structures to gain advantages and minimize
disadvantages of each.
• Used in:

• Manufacturing

• Service industries

• Professional fields

• Non-profit sector

• Multi-national corporations
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•
Strategic Management:
Organizing for Action

1. Developing Programs- Define what must

de done
2. Management Development & Staffing -
Who Implements the Strategy
3. Developing the Budget- Determine/
Estimate costs to incur
4. Developing the Procedures- How to
implement the strategy
•
3. DIRECTING

• Directing is the process of communicating,

leading, and motivating subordinates
• toward the achievement of organizational
goals.
•Key Areas in Directing
Leading - the process of influencing people
contribute to the attainment of organization
goals.
• Motivating - the process of initiating and directing
behavior toward the achievement of goals.
• Communicating•- is a process wherein the sender
encodes and sends a message via a particular
• channel to the receiver where the latter decodes
the message in order to make the desired
response.
Strategic Management:
Leading for Actualizaton
• B. Leading:
• 1. Managing Corporate culture
• 2. Action Planning
• 3. Management by Objectives
• 4. Total Quality Management
•
4. Controlling

Controlling -A process of monitoring perfor-

mance and taking action to ensure
results.
It ensures that the right things happen, in the
right ways, and at the right time.
Control Process:
Measure performance

Recommend &
Compare performance
Implement best
w/ standards
course of action

Develop alternative Correct/Analyze

courses of action deviation