Functions of Management Study Notes

Lesson summary

Managerial functions are time specific, institution specific and country specific; the management functions of the industrial revolution differ from those of later centuries, and this chapter explains the functions of the 20th century and after. Management functions are called the managerial process, a 24 hours non stop process for attaining objectives again and again. The chapter opens with Thirukkural couplet 517: after considering that a man can accomplish a task by certain means, leave the duty with him.

A. Main functions

Function	Key points from the lesson
1. Planning	Primary function; nothing can be performed without it. Deciding in advance what shall be done, where, how and who shall do it. Proverbs: 'Think before you act', 'Look before you leap'. Example: writing a book starts with planning.
2. Organising	Establishing harmonious relationships among members and creating a network of relationships. Work is assigned to employees who get authority and are made accountable.
3. Staffing	Selection and placement of competent personnel; right persons in the right jobs. Includes selection, training, promotion, retirement, performance appraisal and adequate remuneration. Success of an enterprise depends on it.
4. Directing	Motivating, leading, guiding and communicating with subordinates on an ongoing basis. Employees kept informed by circulars, instruction manuals, newsletters, notice-boards, meetings and participative mechanisms.
5. Motivating	Goals are achieved with the help of motivation. Increases speed of performance and develops willingness; done by a resourceful leader. Workers expect favourable conditions, fair treatment, monetary or non-monetary incentives, effective communication and a gentleman approach.
6. Controlling	Evaluates performance for increments and promotions, identifies under performers, arranges remedial training and synchronises actual performance with predetermined standards.
7. Co-ordination	Synchronisation, unification or integration of the actions of all individuals for the common objectives. Included in every managerial function. Its difficulty depends on, and increases with, the size of the organisation.

Passing the buck

To shift or reassign the blame or responsibility for something to another person, group or thing. 'The buck stops here' means taking the responsibility oneself.

B. Subsidiary functions

Innovation: preparing personnel and the organisation to face changes in the business world; new material, new products, new production techniques, new package, new design and cost reduction. Consumers are satisfied through innovation.
Representation: the manager acts as the company's representative with customers, suppliers, government officials, banks, financial institutions and trade unions.
Decision-making: every employee takes many decisions every day; it helps the smooth functioning of an organisation.
Communication: transmission of human thoughts, views or opinions from one person to another; tells workers what, where, how and when; regulates jobs and co-ordinates activities.

Scholars have their own classification of functions; some add functions and some delete others.

Generation Z motivators

Flexible schedule; skip annual performance review; tech centred workplace.
Plan for in-person interaction; more structure and direction; re-evaluate formal education.
A plan for professional growth; clear expectations; make them feel valued; be transparent.

Functions of Management - Study Notes

Lesson summary

A. Main functions

Passing the buck

B. Subsidiary functions

Generation Z motivators

More for this chapter

More chapters in Commerce