I NT RODUCT I ON

MANAGEMENT
FUNCTIONS
PROCESS OF MANAGEMENT/
MANAGEMENT FUNCTIONS
Fayol FOCCC
Terry POAC
Gullick PODSCORB
Massie DOSPCCD
Koontz & ODonnell POSDC

( Each term must be explained in brief)
PLANNING
ORGANISING
STAFFING DIRECTING
CONTROLLING
PLANNING
Meaning
Features
Steps / Process
Advantages
Limitations
Components / Elements
MBO

MEANING
Primary task of mgmt. - foundation of mgmt.
Precedes all managerial functions
Represents the expenditure of thought & time now for
an investment in the future.
Present day business
Intellectual process
Forecasting
Achievement of objectives
Decision- making
Planning answers the Qs: Where are we now? Where
do we want to go? How do we get there? How are
we doing?
Planning is the selecting & relating of facts &
the making & using of assumptions regarding
the future in the visualization & formulation of
proposed activities believed necessary to
achieve desired results.
- George R. Terry
Planning is deciding in advance what to do,
where to do it, how to do it, when to do it, who
is to do it. Planning bridges the gap from where
we are to where we want to go.
- Koontz & ODonnell

FEATURES
1) Primary task of mgmt.
2) It is an intellectual process (It is a process of orderly
thinking. It requires ability to visualize the future.)
3) It is goal oriented
4) Future oriented
5) All pervasive activity (From chairman to foreman,
everyone plans)
6) Continuous & dynamic activity adaptive &
innovative
7) Basis of control
8) Time bound activity
9) Decision oriented
10)Based on facts


STEPS/ PROCESS (TERRY)
1. SWOT analysis
2. Define objectives & clarify the problem
3. Obtain complete information about the activities
to be planned
4. Classify & analyze the information (statistics,
charts, ratios, etc.)
5. Establishing planning premises & constraints
(Premises are assumptions providing a
background against which estimated events
affecting the planning will take place. Selection of
planning premises & their use in planning depends
upon the skill, perception & experience of the
planner. Constraints are boundaries within which
the planning takes place)

6. Determine alternate plans
7. Choose a proposed plan
8. Arrange detailed sequence & timing of the
proposed plan
9. Control devices
ADVANTAGES
1) Basis of success ( failing to plan means planning to
fail)
2) Better utilization of resources
3) Point out need for future changes
4) Encourages innovation & creativity
5) Facilitates control
6) Improves competitive strength
7) Prevents hasty decisions
8) Managing crisis
9) Sense to participation to employees
10)Promotes growth & development
11)To take care of future uncertainty
LIMITATIONS
1) Accuracy of information regarding future
2) Costly & time-consuming (benefits may not match
cost)
3) Psychological barrier (the present is more desirable
than the future as it has some certainty)
4) Delays action - emergencies
5) Stifles employee initiatives
6) Not suitable for small firms
7) False sense of security once plan is prepared
implementation will go smoothly
8) May not motivate people (Too high or too low goals)
9) Lack of ability to plan
10) Environmental constraints
COMPONENTS/TYPES
1) Objective
2) Mission
3) Policy
4) Rules
5) Schedules
6) Procedure
7) Programmes
8) Budget
9) Method
10)Strategy

MANAGEMENT BY OBJECTIVE (MBO)
MBO is a process whereby the superior and the
subordinate managers of an enterprise jointly
identify its common goals, define each individual
major areas of responsibility in terms of results
expected of him & use these measures as guides in
operating the unit & assessing the contribution of
each of its members.
- George Odiorne
OBJECTIVES OF MBO
1) To measure & judge performance
2) Relating individual performance to organisational
goals
3) To clarify the job to be done & expectational
performance
4) To enhance communication between superior &
sub-ordinate
FEATURES OF MBO
1. A device for organisational control & integration
2. A basis of judgement to decide on salary &
promotion
3. Also acts as a motivator
4. Participative management
5. Result oriented
6. KRAs**
7. Periodic performance review
8. Emphasis on objectives


STEPS/PROCESS- MBO
1) Setting of organisational objectives/ goals in KRAs
2) Departmental objs
3) Subordinate objectives
4) Action plans
5) Establishing Standards of perf
6) Periodic review of progress
7) Performance appraisal
8) Employee counselling
ADVANTAGES-MBO
1. Better managing
2. Higher productivity
3. Targeted planning
4. Team work
5. Motivation
6. Efficient communication
7. Training & development
8. Objective appraisal

LIMITATIONS-MBO
1. Failure to teach MBO phillosophy to employees
2. Costly process & time consuming
3. Difficulty in setting objectives
4. Emphasis on short term objectives
5. Increased paper work
6. inflexibility
7. Resistance to change
8. Lack of training
9. Paricipation problem