Functions of Management

UMBB/IGEE functions of management
Engineering Management
Economic system is a complex of activities that must form the background of

management. Goods and services that consumers need must be supplied and the
means by which they can purchase these goods and services must be provided.
Management’s role must therefore be to provide this in the most efficient
manner by combining factors of production and distribution and directing the
efforts of the people concerned to the given purpose.
Organizations need plans, direction and control and all these will function only
with effective organization. These elements, planning, directing, controlling,
staffing, and organizing are called ‘managerial functions.
Planning
 A plan is a predetermined course of action which provides purpose and

direction of an organization.
 Planning is foreseeing future circumstances and requirements, then,
setting objectives, making long and short term plans and determining the
policies to be followed with standards to be set
 It involves making a systematic process for achieving the organization’s
goals.
 In planning, managers receive and store information, monitor and

disseminate the information.
 A manager makes decisions on strategy and allocation of resources and

initiate planned changes
 Strategic planning is the process of developing and analyzing the

organization’s mission, overall goals, general strategies and allocating
resources.
A strategy
Is a course of action created to achieve a long – term goal.
Goals
Are the things that the organization strives to achieved.
Strategic planning requires a lot of information gathering, exploring alternatives
and emphasizing future implications of its current decisions
1
Steps in planning
Define the organization‘s mission and vision. A mission is the purpose of the
organization. It explains why the organization exists .Vision is the future goal or
achievement of an organization. It guides the mission of the organization by
defining measurable strategic and financial objectives.
SWOT analysis
Analyze the strength, weaknesses and identify opportunities and threats of the
organization i.e. SWOT Analysis baseline. SWOT analysis is used as the basis
for future improvements.
Setting goals and objectives.
Goals and objectives are developed to bridge the gap between current capability
and the mission Objectives – are statements describing results and the way in
which they will be achieved. They are more specific and narrower than goals.
Develop a strategy.
Information collected from the environmental can is used to: Match strengths
with opportunities and address weaknesses while trying to minimize threats to
its existence. Make superior profits by getting a competitive advantage over
competitors.
Implementation of strategy
Strategy is implemented by developing programs, budgets and procedures .It

involves organizing the firm’s resources and motivating staff to achieve the
firm’s objectives.
Evaluating /monitoring and control

Evaluation and control consists of:
 Defining parameters to be measured.
 Defining the target values of those parameters.
 Performing measurement.
 Comparing measured results to predefined standards.
 Making necessary changes.
2
Organizing
 This is the identification and classification of the required activities, the
grouping of activities necessary to attain objectives, the assignment
of each grouping to a manager with authority and the provision of
coordination
.
 In organizing, structures are created, relationships established and
resources are allocated for the accomplishment of activities
 In organizing, plans are reviewed, tasks to be performed are listed, tasks

are grouped into jobs that can be done by an individual, departments are
created, work is assigned to individuals and authority is delegated
Organizational Structure
 Each organization has an organizational structure.

 Ideally, in developing an organizational structure and distributing
authority, managers' decisions reflect the mission, objectives, goals and
tactics that grew out of the planning function
 Specifically, they include:
Division of labor
Delegation of authority
Departmentalization
Span of control
Coordination
Controlling.
 This is the measurement and correction of performance in order to ensure

that enterprise objectives and plans devised to attain them are
accomplished
.
 Controlling is a function of every manager both at lower and upper level
since all have responsibility for the execution of plans.
 In controlling we must:
Establish standards-
These are criteria for performance used by managers to measure performance
since managers cannot usually watch everything being done within an
organization.
3
Measure performance-
This should be on a forward looking basis so that deviations may be detected in
advance of their occurrence and avoided by appropriate actions. This is through
detection of probable departures from standards
Correct deviations
 Standards should reflect the various positions in an organization

structure .Managers may correct deviations by redrawing their plans or by
modifying their goals.
 They may also correct by exercising their organizing function through

reassignment or clarification of duties
 They may correct also by additional staffing, better selection and training
of subordinate or by firing staff.-Standards set may be physical like labor
hours per unit produced, may be cost standards like cost per unit produced
or revenue standards like sales per customer
.
 For control to be effective there must be real time feedback
.
Directing /Leading.
 Directing involves the initiation of action and it entails three elements that
are action oriented in nature.
 These are motivation, communication and leadership.
 Leading is the process of influencing people so that they will contribute to
organization and group goals
Conclusion
Management has been identified as a systematic body of knowledge based on
general principles, concepts, theories and techniques which are variable in terms
of business practice. These are embodied in the managerial functions of
planning, organizing, staffing, directing and controlling which form the job of a
manager.
 In planning we establish objectives, and plans.

 In Organizing, activities are grouped.
 In Directing/Leading the manager leads, motivates and appraise
personnel.
 Controlling is concerned with how well the organization is faring.

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UMBB/IGEE functions of management

Economic system is a complex of activities that must form the background of

 A plan is a predetermined course of action which provides purpose and

 In planning, managers receive and store information, monitor and

 A manager makes decisions on strategy and allocation of resources and

 Strategic planning is the process of developing and analyzing the

Setting goals and objectives.

Strategy is implemented by developing programs, budgets and procedures .It

Evaluating /monitoring and control

 In organizing, plans are reviewed, tasks to be performed are listed, tasks

 Each organization has an organizational structure.

 This is the measurement and correction of performance in order to ensure

 Standards should reflect the various positions in an organization

 They may also correct by exercising their organizing function through

 In planning we establish objectives, and plans.

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