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Functions of management,Planning process & techniques,Organizing-Process & Organisational Structure,Directing-principle &process,ControllingProcess & techniques,problem solving & decision Making
Functions
Planning Organizing Directing Staffing & Controlling
Introduction
What is the use of running if youre not on the right road?
German Proverb
What is Planning?
Planning is a search problem that requires to find an efficient sequence of actions that transform a system from a given starting state to the goal state Planning is the starting point of the management process Predetermines what the business proposes to accomplish and how it intends realizing its goals
Levels of planning
Strategic Planning
The four main aspects of strategic planning that managers can directly influence include:
Vision and Mission Goals Strategies Resource Allocation
Assignment
An electronic company is facing a problem of declining market share due to increased competition from others new & existing players in the market. Its competitors are introducing lower price models for mass consumers who are price sensitive. For quality conscious consumers company is introducing new model with added features and new technological advancements. Prepare a model plan for this company. Specify which type of plan you are preparing. Identify the limitations of such plans. How will you remove these limitations?
Organization structure
The system of tasks, workflows, reporting relationships, and communication channels that link together diverse individuals and groups.
Principal of organisation
Span of control Chain of command(Scalar chain) Hierarchy Authority & responsibility Delegation Empowerment
Business Organisation
Authority the right to make decisions and carry out tasks Span of control the number of people a superior is responsible for Chain of Command the relationship between different levels of authority in the business the superior-subordinate authority chain that extends from the top of the organization to the lowest echelon Hierarchy shows the line management in the business and who has specific responsibilities Delegation authority to carry out actions passed from superior to subordinate Empowerment giving responsibilities to people at all levels of the business to make decisions
Line authority
The position authority (given and defined by the organization) that entitles a manager to direct the work of operative employees.
Staff authority
Positions that have some authority (e.g., organization policy enforcement) but that are created to support, assist, and advise the holders of line authority.
Functional Authority
Figure 7.1
Creation of Departments
Basis for grouping job positions into departments and departments into the total organization. Internal Operations Oriented Functional Network (Virtual) Output Oriented Divisional Product Geographic Customer Team (Cluster)
Organisation Charts
Hierarchical Structure
Managing Director
Sales Director
Marketing Director
Finance Director
Market Research
Accounts Manager
Hierarchy of Authority
Tall organizations have many levels Flat organizations have few levels
Production
Marketing
Accounts
Personnel
IT
Divisional Organization
Organizational structure in which corporate divisions operate as autonomous businesses under the larger corporate umbrella
Frozen-Foods Division
Division: Department that resembles a separate business in producing and marketing its own products
Departmentalization by Product
President VP (Fuels) VP (Lubricants & Waxes) Marketing Planning Supply & distribution Manufacturing VP (chemicals)
Organisation by Product/Activity
Advantages Clear focus on market segment helps meet customers needs Positive competition between divisions Better control as each division can act as separate profit centre Disadvantages Duplication of functions (e.g. different sales force for each division) Negative effects of competition Lack of central control over each separate division
Departmentalization by Geography
Apple Products
Apple USA
Apple Europe
Europe West Europe North
Apple Pacific
Canada
Australia
France
Japan
South Europe
Market Structure
CEO
Commercial Division
Consumer Division
Government Division
Corporate Division
4-
34
Process Departmentalization
+ More efficient flow of work activities Can only be used with certain types of products
1035
Organisation by Area
Hewlett-Packards Headquarters Worldwide
Hewlett Packard
Customer Departmentalization
1037
CEO
Matrix Structure
Vice President Engineering Vice President Sales and Marketing Vice President Finance Vice President Research and Development Vice President Purchasing
Product A Manager
Product B Manager
Product Team
Product C Manager
Product D Manager
Two-boss employee
4-
38
FIGURE 3.3
Product Distribution
Product Design
Product Manufacturing
Hybrid Structure
President
Functional Structure
Chief Counsel
Product Structure
Directing
It is an inter-personal aspect of management which deals directly with influencing, guiding, supervising& motivating the subordinates. It involves Communication Leadership & Motivating
Directing:techniques
Supervision Motivation (incentives) Leadership (Mgt. Vs leader) Communication (Formal Vs informal)
SupervisionOverseeing employees at work Intelligent utilization of human resources Motivating employees to peak performance Maintenance of good human relationship Morale building
High morale is associated with low productivity when the employees are merely happy & they are not proper motivated to do their jobs. High productivity is associated with low morale when management uses strict supervision & punishments against low productivity. High productivity with low morale cannot be sustained for long since will to work is a very important factor which moulds workers attitude towards the job.
Motivation is
the set of forces that lead people to behave in particular ways
Satisfied Need
Cont.
Motive- give directions to human behavior. A motive is an inner state that energizes activates, or move & directs or channels behavior towards goal Motivating- Implies an activity` engaged into an individual, by which he or she will channelise the strong motives in a direction that is satisfactory. Motivation-is a process that starts with a physiological or psychological deficiency or need that activates behavior or a drive that is aimed at a goal or incentive.
Kinds of Motivation
Financial Profit sharing, Co-partnership/stock option(ESOP), bonus, pay & allowances, productivity-linked wage incentive, retirement benefits, perquisites (housing, medical, free education to kids, car allowances) Non-Financial- status, organizational climate, career advancement opportunity, job enrichment, employee recognition, job security, employee participation, employee empowerment.
Enhancing Motivation
Job enrichment programs Designed to increase the job satisfaction of employees by increase their autonomy. Flexible work schedule (flextime) Compressed work weeks that compress the work load into fewer days per week. Job sharing by two or more persons who share a particular work schedules.
Leadership
- The ability to positively influence people and
systems to have a meaningful impact and achieve results - Is a process whereby a person inspires a group of constituents to work together using appropriate means to achieve common mission and common goals.
Work-related Characteristics Achievement drive Drive to excel Conscientiousness in pursuit of goals Persistence against obstacles, tenacity
Source: Adapted from Bernard M. Bass, Stogdills Handbook of Leadership, rev. Ed. (New York: Free Press, 1981), 75 -76. This adaptation appeared in R. Albanese and D. D. Van Fleet, Organizational Behavior: A managerial Viewpoint (Hinsdale, III.: The Dryden Press, 1983).
Transformational Vs Transactional
Transformational leaders
Focus on the potential relationship between the leader and the followers Engage the full person of the follower Tap the motives of the followers
Transactional leaders
Focus on exchanges between leaders and followers Emphasize exchanging one thing for another