2. FUNCTION OF MANGEMENT
A person who holds a management position inside an organization is
required to think strategically and conceptually in order to achieve
Management has to carry out different functions in order to accomplish
The major function that a manager completes can be categorized into five
different functions namely planning , organizing , staffing , leading , and
Deciding in advance :
What to do
How to do
When to do
Who is going to do it
Bridges a gap between where we are today and where we want to reach.
Sets the goal of an organization.
It is the basic function of management. It deals with chalking out a future course of
action & deciding in advance the most appropriate course of actions for achievement
of pre-determined goals.
It is an exercise in problem solving & decision making. Planning is determination of
courses of action to achieve desired goals.
Thus, planning is a systematic thinking about ways & means for accomplishment of
pre-determined goals. Planning is necessary to ensure proper utilization of human &
non-human resources. It is all pervasive, it is an intellectual activity and it also helps in
avoiding confusion, uncertainties
It is the process of bringing together physical, financial and human
resources and developing productive relationship amongst them for
achievement of organizational goals.
According to Henry Fayor, “To organize a business is to provide it with
everything useful or its functioning i.e. raw material, tools, capital and
personnel’s”. To organize a business involves determining & providing
human and non-human resources to the organizational structure.
Establishing the framework of working:
How many units or sub-units or departments are needed.
How many posts or designations are needed in each department.
How to distribute authority and responsibility among employees
Once these decisions are taken, organizational structure gets set up.
Organizing as a process involves:
Identification of activities.
Classification of grouping of activities.
Assignment of duties.
Delegation of authority and creation of responsibility.
Coordinating authority and responsibility relationships.
• Recruiting, selecting, appointing the employees, assigning duties,
maintaining cordial relationship and taking care of grievances of
• Training and Development of employees, deciding their
remuneration, promotion and increments.
• Evaluating their performance.
It is the function of manning the organization structure and keeping it
manned. Staffing has assumed greater importance in the recent years due
to advancement of technology, increase in size of business, complexity of
human behavior etc. The main purpose o staffing is to put right man on
right job i.e. square pegs in square holes and round pegs in round holes.
Manpower Planning (estimating man power in terms of searching, choose the
person and giving the right place).
Recruitment, selection & placement.
Training & development.
Promotions & transfer.
Giving direction or instruction to employees to get the job done.
Leadership qualities are required.
Motivating employees by providing monetory and non-monetory
Communicating with them at regular intervals.
13. DIRECTINGIt is that part of managerial function which actuates the organizational
methods to work efficiently for achievement of organizational purposes.
It is considered life-spark of the enterprise which sets it in motion the
action of people because planning, organizing and staffing are the mere
preparations for doing the work. Direction is that inert-personnel aspect
of management which deals directly with influencing, guiding,
supervising, motivating sub-ordinate for the achievement of
14. Supervision- implies overseeing the work of subordinates by their
superiors. It is the act of watching & directing work & workers.
Motivation- means inspiring, stimulating or encouraging the sub-
ordinates with zeal to work. Positive, negative, monetary, non-
monetary incentives may be used for this purpose.
Leadership- may be defined as a process by which manager guides
and influences the work of subordinates in desired direction.
Communications- is the process of passing information, experience,
opinion etc from one person to another. It is a bridge of
It implies measurement of accomplishment against the standards and
correction of deviation if any to ensure achievement of organizational goals.
The purpose of controlling is to ensure that everything occurs in
conformities with the standards.
An efficient system of control helps to predict deviations before they
actually occur. According to Theo Haimann, “Controlling is the process of
checking whether or not proper progress is being made towards the
objectives and goals and acting if necessary, to correct any deviation”.
Therefore controlling has following steps:
Establishment of standard performance.
Measurement of actual performance.
Comparison of actual performance with the standards and finding
out deviation if any.
18. Types of organizing structure
To achieve the goals, organization has to take necessary actions which
can convert goals into result. Necessary action includes assignment of
authority and responsibilities, groping of people and allocation of resources.
This process is termed as organizing.
1) Based on relationship, organization classified into two types:
19. 1.Formal organization
This is one which refers to a structure of well-defined jobs each
person has authority and responsibilities.
This kind of organization is an arbitrary set up in which each person is
responsible for his performance.
It is based on the rule ‘chain of command’.
20. 2. Informal organization
A network developed based on personal and social relationship between
the employees within the formal set up is called informal organization.
Informal organization develop relationships which are developed on likes,
It emerges from the formal organization and it is not based on any rules
21. 2) Based on hierarchy structure, organization classified into three types:
Matrix organization(Line and Staff organization)
• A hierarchy organization is an structure where every entities in
organization is subordinate to a single other entity.
22. 1.Line organization
• In line organization, the authority flows from top to bottom.
• So this organization is also known as scalar organization which means
scalar chain of command is a part and parcel of administrative
• The line of command flows on an even basis without any gaps in
communication and co-ordination.
24. 2.Staff organization
In this type, top positions are acquired by the person having specialities
in performing a particular function throughout the enterprise.
For example, production manager has to deal with only production and
26. 3. Line and Staff organization
Line and staff organization is combination of line and staff
organization. In this type, specialized and supportive activities are
attached to a line command by appointing the staff supervisors and
staff specialist .
The power command always remain with the line executives and
staff supervisors guide, advice and counsel the line executives.
28. As shown in diagram, the highest authority is president who controls all
the functional heads.
Separate doctor of products is appointed who look after the products
through line authority.
All functional heads carry out their functions for each types of products.
30. What is span of control?
• span of control is a span of supervision which shows the
number of can be effectively handled and controlled by a
• There are two types of span: 1.Narrow and 2.wide.
31. Narrow span
• According to narrow span, the manager
supervises a selected number of employees at
• it is the difficult to get effective co-ordination.
• Also, due to this kind of span of control,
number of managers are increases and hence
the overall costing of the company increases.
32. Wide span
• According to wide span, the manager supervises and
control effectively a large group of persons at one time.
• it is the easy to get effective co-ordination ,better
• Also, due to this kind of span of control, number of
managers required are few, so overall cost is law.
34. 1. Managerial abilities
• When managers are capable, qualified and experienced,
wide span control is always helpful to control more
number of employees.
35. 2.Competence of subordinates
• Where the subordinates are capable and competent and
understanding levels are proper, the subordinates tend to
very frequently visit the superiors for solving their
problems. In such cases, the manager can handle large
number of employees. Hence, wide span is suitable.
36. 3. Nature of work
• If the work is of repetitive nature, wide span of
supervision is more helpful. On the other hand, if work
requires mental skill or craftsmanship, tight control and
supervision is required in which narrow span is more
37. 4. Delegation of authority
• When the work is delegated to lower levels in an
efficient and proper way, confusions are less and
congeniality of the environment can be maintained. In
such cases wide span of control is suitable and the
supervisors can manage and control large number of
sub-ordinates at one time.
38. 5. Economic Consideration
• Economic considerations also determines the span of
control. As we know that small span of control requires
more economic resources and vice versa. So, when
there is problem of economic conditions, wide span of
control is adopted. Economic Consideration
Once the jobs are allocated to individual member of the organization, then it is very
important to group them in logical way. It is very essential process of creating
department in the organization. The process of creating department is known as
Departmentalization is done by two basis;
1. On the basis of Function
2. On the basis of Divisions
41. Functional departmentalization
According to functions to be carried out, functional activities are
developed and based on the functional departmentalization is carried out.
Mostly in all organization functional departmentalization is adopted.
42. Division Departmentalization
Organization can structure itself into departments in the following ways:
43. Functional departmentalization
In functional departmentalization, department are segregated on The
basis of functional performed. For example production ,finance
,marketing, human and resource etc.
major functions of the organization and departments are formed
accordingly. Hence all activities,
Which are directly or indirectly connected with respective functional are
grouped together to make a respective department.
45. Process departmentalization
In process departmentalization, departments are segregated on the basis
of their role in a production process. For example, process
departmentalization in a textile mill have spinning department ,weaving
department, dyeing department ,printing department ,etc.
Here ,all activities ,which are directly or indirectly related with spinning
are grouped together to make a spinning department
46. This departmentalization delivers high level of efficient work but on
the other hand this type on departmentalization is not possible to
adopt for all type of product
47. Product departmentalization
In product departmentalization, department are segregated on the basis of
type of product producer by the company.
Here every individual department is responsible for producing and selling
the type of product assigned to them.
In automobile manufacturing company, department like a two-wheeler
department , three-wheeler department , four-wheeler department ,heavy
motors department ,etc. exist which manufacture vehicles such as motorcycle
(bike),auto-rickshaws, car, buses and trucks, receptivity. Here inside an
Company all activities which are directly or indirectly related to car
manufacturing are grouped together and assigned to four-wheeler or
49. Geographic Departmentalization
In Geographic Departmentalization, separate department are made on the basis of
company’s location through branches or offices established at different zone or place in the
For example, a large company may globally through its different zonal departments
established on a country basis. Each part or area have different zonal departments
established on a country basis. Each part or area have different requirement or interests.
Marketing a product in western USA may have different requirement than marketing
the same product in southeast Asia. Market are is broken up into sales territories like
northern, southern, west, east .
the salesman appointed for each territory report to their regional or territorial manager.
These manager again report to the sales manager who manager who is head of the sales
51. Customer Departmentalization
In Customer Departmentalization, department are segregated on the basis
of types or group of customers to be handle or dealt with.
For example, customer can be classified under type of such as
,international or foreign customers, island or domestic customers, bulk
purchasing or wholesales customers, retail customer, etc .
Each group of customer’s need different tactics and strategies to handle
them better .hence an appropriate customer departmentalization serves this
53. Time Departmentalization
In Time Departmentalization, department are segregated on the basis of
shift of work.
For example, departments can be made based on the night shift ,morning or
regular shift, evening shift, etc. this method of Departmentalization is
generally seen among those organizations who render 24-hours emergency
and/or essential public services for 365 days a year .
Example of such organizations include, hospitals, hotel, airport, police,
security, and so on.