THE PILLARS OF MANAGEMENT Planning Organising Leading Controlling

Planning Planning is the management task of preparing objectives, strategies and programs of action. A basic management function involving formulation of one or more detailed arrangements to optimum balance of needs or demands with the available resources.

Significance of planning Gives direction to the organization Guides entire organization towards working as a system with each sub-system knowing what is expected of them. Lowers management’s threshold to change, ie, it helps managers avoid the trap of trying to move in too many directions.

Significance of planning cont… It affords entrepreneurs the opportunity to adjust the organization to the environment instead of merely reacting to it. Helps chat the organization’s future, i.e. knowing the organization’s current position, where it ought to be headed and recognize the time to shift to a new direction.

Planning influence Human Resource planning and the entire staffing process.

Internal Limitations to planning Planning brings about rigidity - strict adherence to policies and objectives. Planning is time consuming since it is a process. Planning is based on probabilities or forecasts which are mere estimates about the future hence, full of uncertainty.

Internal limitations to planning cont... Gives a false sense of security hence everything is taken for granted. Planning can be misleading – can be used to serve individual interests rather than the interests of the organization. It is expensive - in terms of time, finance and effort (Collection, analysis and evaluation of different information).

External Limitations of Planning Change of government policies Labour Unions invoked industrial actions/labour unrest. Technological changes- modern techniques and equipment. Competitors’ policies. Natural disasters. Changes in demand and prices, ie, change in fashion, consumer tastes, income levels, demand and price falls.

The planning process Planning is an on-going procedure consisting of the following; 1. Setting objectives Analyzing and evaluating the environment Determining and evaluating alternatives Implementing the plan Controlling and evaluating results

The planning process Setting objectives This involves deciding on a target for the organization.

The planning process cont... Analyzing and evaluating the environment Managers should look at the internal and external environment of their companies so as to identify opportunities and threats as well as their strengths and weaknesses.

The planning process cont... Determining and evaluating alternatives Alternatives are courses of action available to a manager to reach a goal. Each alternative needs to be analysed to determine how best it can achieve objectives. One course of action that appears to be better than others must be selected.

The planning process cont... Implementation of the plan After selecting the best alternative, decide who will do what; assemble required resources and set deadlines then put ideas into actions.

The planning process cont... Controlling and evaluating results Once a plan has been implemented, monitor the progress that is being made, evaluate reported results and make any necessary modifications. See if the plan is making any progress.

ORGANIZING A process of arranging an organization’s structure and coordinating its managerial practices and use of resources to achieve its goals. An organizational structure is a pattern of relationships through which people under the direction of a given manager pursue common goals.

ORGANIZING cont... Organizational Structures show among other things: Positions in the organization Divisions of work activities Level of specialization Reporting relationships within an organization Link between different functions

ORGANIZING cont’... Organizational structures are determined by: Strategy People Technology Size

LEADERSHIP Leadership is the manager’s ability to influence subordinates to work towards group goals with confidence. Leadership style is the manner and approach of providing direction, implementing plans, and motivating people.

Leadership styles Autocratic/ Authoritarian This is when leaders tell their subordinates what they want to be done and how they want it accomplished. Managers believe that they know what employees want

Autocratic/ Authoritarian cont’... Usually used when; i) The leader has all the information to solve the problem ii) The leader is short on time iii)Employees are well motivated. N.B. This should however be used sparingly.

Democratic/Participative This style involves the leader and subordinates in the decision making process. It depends on mutual understanding between subordinates and managers. Managers issue orders but subordinates have the freedom to comment on those orders.

Democratic/Participative cont’... Subordinates are also given the freedom to carry out their duties but within carefully prescribed limits and procedures. In this case however, the leader maintains the final decision. Normally used when a manager has part of the information, and subordinates have other parts.

Laissez Faire / Delegative In this style, the leader allows employees to make decisions. However, the leader will still be responsible for the decisions that are made. This is used when subordinates are able to analyze the situation and determine what needs to be done and how it has to be done.

Laissez Faire / Delegative Used when; i) one fully trusts and has confidence in subordinates. ii) resources are available in excess iii) subordinates are well motivated, assuming that subordinates are motivated by high production. N.B Good leaders use all three styles, with one dominating depending on what forces are involved between subordinates, the leader, and the situation.

CONTROL It is an element of managerial task of measuring and correcting subordinates performance to achieve organizational objectives. A process of ensuring that employee behaviour and performance as well as organizational activities conform to the organization’s objectives.

Significance of control a) Helps to prevent malpractice or unprofessional conduct b) It evaluates top management efficiency in planning c) It leads to standardised actions that increase efficiency since there will be specified rules regulations and policies.

Significance of control d) t ensures that authority delegated to subordinates is effectively used. Ensures maximum utilization of resources, ie, there is no time wastages and duplication of duties where there is effective control.

It caters for the complexity and unpredictable behaviours of the organization ‘s interrelated and interdependent subsystems

Significance of control g) Human beings make mistakes, hence necessary to monitor and control performance. h) Some people cannot be trusted hence a constant check on them may be necessary.

Control cont’… Excessive control can act as a barrier to effective performance, retard motivation and inhibit creativity. Inadequate control on the other hand wastes resources and the organization may not be able to achieve its objectives. The right amount of control is situational.