Management
Function
Managerial Function
• Manager perform four essential Functions;
• P Planning
• O Organizing
• L Leading
• C Controlling
Planning
• A process that managers use to select the best business model
and goals for their company
• Three Stages in the planning process: Managers must
• 1. Choose which business model to pursue
• 2. Decide how to allocate the organization’s resources to pursue
the business model
• 3. Select the goals or targets that will be used to measure how
efficiently and effectively the business model is working
What’s involved in the planning function?
• Defining organizational objectives: these can be long-term or short-term.
It’s important to make sure they’re realistic and achievable.
• Strategizing: you want to come up with a plan that makes sense and will
actually work toward achieving your company goals.
• Forecasting: being aware of how much money will be coming into and
leaving your business.
• Identifying risks: businesses always deal with risks and challenges, so it’s
important to know what they are before you dive in head-first.
• Defining priorities: sometimes, there will be multiple things you need to
accomplish. It’s important to rank them so that your team knows what’s
most important.
Organizing
• A process managers use to create a company’s organizational structure.
• Organizing involves grouping people into functions according to the kinds
of job-specific tasks they perform.
• Manager also lay out the lines of authority and responsibility between
different individuals and groups and they decide how best to coordinate
across functions.
4 areas of Organizing
Roles
Responsibilities
Accountabilities and authorities
Task allocation
• Getting them right makes sure that people know what they should be
doing on a day-to-day basis, who’s responsible for certain tasks, and the
extent of their authority.
Leading
• The ability to develop a plan and motivate others to pursue it.
• Leading involves being able to articulate a clear vision for a company’s
members and motive them to pursue it.
• This requires power, influence, vision, persuasion, and communication
skills.
Controlling
• Controlling is the process of evaluating whether or not a company is
achieving its goals and taking action if it is not.
• The job of controlling comprises ascertaining criteria of performance,
computing the current performance, comparing this with organised rules
and taking remedial action where any divergence is observed.
Controlling
• The five main parts of controlling are:
• Measurement: measuring the quantitative and qualitative
factors in your business to ensure that you’re on track.
• Monitoring: monitoring processes and results of your
operations to address new problems before they become major
issues.
Controlling
• Analysis: making sense of that data to uncover opportunities
for improvement or risks that could interfere with your
company goals.
• Response: taking a proactive approach to handling issues,
including setting goals and making changes.
• Prevention: putting processes in place to make sure that
problems don’t arise in the future.
How much time a particular manager spends on any one of
them-
Depends on the manager’s position in the hierarchy.
Top Managers devote most of their time to planning and
organizing as it relates to the firm’s business model, long-
term goals, and profitability.
Lower-level managers spend more time leading and
controlling first-line managers or nonmanagerial employees
to meet those goals.
The role of the employee
• Although managers are employees they work for a company’s
owners we typically think of them as being different from
“ordinary” employees because they have decision-making
authority over the organization’s resources.
Stakeholders and Business
Ethics
• People or group of people who supply a company with its
productive resources and thereby have an interest in how the
company behaves.
Types of Company Stakeholders
Stockhold
Employe Manag
ers
es
ers
Supplier Company
s and Custom
Distribut Commun ers
ors ity,
Society,
and
Nation
The better the management,
the healthier the business