Module II
MANAGERIAL FUNCTIONS
1. Planning
• Definition: Planning involves setting objectives and determining the best course of action to
achieve them.
• Key Activities:
• Setting goals
• Developing strategies
• Forecasting future conditions
• Resource allocation
[Link] (Directing)
• Definition: Leading entails motivating, guiding, and influencing employees to work toward
the organization's goals.
• Key Activities:
• Motivating employees
• Communicating goals and expectations
• Leading teams and individuals
• Managing conflict
Tactical Plans
• Definition: Shorter-term, more specific plans that help implement parts of the strategic plan.
• Purpose: To translate strategic objectives into actionable tasks for departments or units.
• Time Frame: 1-3 years.
Operational Plans
• Definition: Highly detailed plans used to guide day-to-day operations and activities.
• Purpose: To ensure that the organization runs smoothly in the short term.
Single-Use Plans
• Definition: Plans developed for one-time projects or unique events.
• Purpose: To achieve specific objectives within a defined time frame.
• Time Frame: Varies based on project duration; typically short to medium term.
Standing Plans
• Definition: Ongoing plans that provide guidance for repeatedly occurring situations.
• Purpose: To streamline processes and ensure consistency across similar situations.
Management by Objectives (MBO) is a strategic management approach where managers and
employees work together to set, monitor, and achieve specific objectives. The key idea behind MBO
is aligning individual goals with organizational objectives, fostering collaboration, and ensuring that
everyone is working toward the same outcomes.
Contemporary Issues in Planning
Rapid Environmental Changes
Goal Misalignment
Difficulty in Measuring Some Goals
Overemphasis on Objectives
Designing an organizational structure involves creating a framework that defines how activities such
as task allocation, coordination, and supervision are directed toward the achievement of
organizational goals.
Key Considerations in Designing Organizational Structure
Organizational Goals and Strategy
Size of the Organization
Technology and Work Processes
External Environment
Employee Roles and Skills
Steps in Designing an Organizational Structure
Define Objectives and Goals
Determine Key Activities and Functions
Group Tasks into Departments
Establish Reporting Relationships (Hierarchy)
Span of Control
Centralization vs. Decentralization
Types of Organizational Structures
Functional Structure
Divisional Structure
Matrix Structure
Flat Structure
Current Trends in Organizational Design
Agile Organizations
Remote and Hybrid Work Models
Decentralization
Digital Transformation
Departmentalisation
Departmentalization is the process of dividing an organization into different departments, each with
specific responsibilities and functions. This structure helps streamline operations, improve efficiency,
and define clear roles within the organization.
Cross-Functional Teams
Cross-functional teams are groups of people from different departments or functional areas within
an organization who come together to work on a specific project or task.
Holacracy
Holacracy is an organizational design that distributes decision-making authority throughout the
organization rather than concentrating it at the top. It replaces traditional hierarchies with self-
organizing teams or "circles."
Cellular Structure
A cellular structure is based on the concept of self-contained units or "cells" that function
autonomously but are linked to the larger organization.
HRM Process
Human Resource Planning:
Recruitment:
Selection:
Onboarding:
Training and Development
Performance Management
Compensation and Benefits:
Employee Relations:
Succession Planning:
Termination:
Contingency Theories of Leadership
Contingency theories of leadership propose that the effectiveness of a leader is contingent upon
various external and internal factors, rather than being solely dependent on the leader’s traits or
behaviors.
Hersey-Blanchard Situational Leadership Theory
• This theory emphasizes the importance of adapting leadership styles based on the readiness
level of followers.
• The model identifies four leadership styles: telling, selling, participating, and delegating.
Path-Goal Theory
• Developed by Robert House, this theory posits that leaders can enhance follower
performance and satisfaction by clarifying the paths to achieving goals and providing the
necessary support.
Leader-Member Exchange (LMX) Theory
• LMX theory focuses on the quality of the relationships between leaders and followers,
emphasizing that leaders develop unique relationships with each team member.
Contemporary Views of Leadership
Transformational Leadership
Servant Leadership:
Authentic Leadership:
Adaptive Leadership:
Distributed Leadership:
Control Process and tools for Measuring Organizational Performance
Benchmarking-
It helps identify areas for improvement and set realistic performance targets.
MIS (Management Information Systems)
MIS provide real-time data and reports on various aspects of organizational performance, facilitating
timely decision-making.
Contemporary Issues in Control
Remote Work and Digital Transformation:
Agility and Flexibility
Data Analytics and Big Data:
Emphasis on Employee Engagement
Corporate Social Responsibility (CSR) and Sustainability
Diversity, Equity, and Inclusion (DEI):
Risk Management