Financial management: Financial management seeks to ensure the right amount and type of funds to business It comprises the following activities: Estimating the volume of funds required Selecting the appropriate source of funds Raising the required funds at the right time Proper utilization and allocation of raised funds Administration of earnings Thus, Financial Management involves the planning, organizing and controlling of the financial resources.

Human resource management: HRM involves planning, organizing and controlling the procurement, development, compensation, maintenance and integration of human resources of an organization. It consists of the following activities: Human resource planning recruitments and selection training and development Performance appraisal

Compensation, Promotions Transfers, Employee welfare services, and Personnel records management Research, etc.

Information management Manages the information technology for the company. Others, Which could encompass many other areas depending on the type of business.

MANAGERIAL ROLES

Managerial roles

INTERPERSONAL ROLES 1. Figurehead role The interpersonal roles are relations with other people arising from the manager’s status and authority. 1. Figurehead role Managers as symbolic and ceremonial Represents the organization in matters of formality Example: signing of documents, participation as a social necessity, and being available for people who insist on access to the ‘top’.

2. Leader role Is among the most significant of roles and it permeates all activities of a manager. By virtue of the authority vested in the manager there is a responsibility for staffing, for the motivation and for guidance of subordinates.

3. Liaison role Involves the manager in horizontal relationships with individuals and groups outside their own unit, or outside the organization. An important part of the manager’s job is the linking between the organization and the environment

Informational roles The informational roles relate to the sources and communication of information arising from the manager’s interpersonal roles. 1. Monitor role Seeking and receiving information. This information enables the manager to develop an understanding of the work of the organization and its environment. May be received from internal or external sources, and may be formal or informal.

2. Disseminator role Transmitting external information through the liaison role into the organization, and internal information through leader role between the subordinates. The manager is the nerve center of information. If the manager feels unable, or chooses not, to pass on information this can present difficulties for delegation.

3. Spokesperson role Formal authority in transmitting information to people outside the unit, such as The board of directors or other superiors, and The general public such as suppliers, customers, government departments and the press.

DECISIONAL ROLES Involve the making of strategic organizational decisions on the basis of the manager’s status and authority, and access to information. 1. Entrepreneurial role Initiate and plan change through exploiting opportunities or solving problems, and taking action to improve the existing situation. The manager may play a major part, personally, in seeking improvement, or may delegate responsibility to subordinates.

2. Disturbance handler role Involves the manager in reacting to involuntary situations and unpredictable events. When an unexpected disturbance occurs the manager must take action to correct the situation.

3. Resource allocator role Involves the manager in using formal authority to decide where effort will be expended, and making choices on the allocation of resources such as money, time, materials and staff. The manager decides the programming of work and maintains control by authorizing important decisions before implementation.

4. Negotiator role Is participation in negotiation activity with other individuals or organizations, for example a new agreement with a trade union. Because of the manager’s authority, credibility, access to information, and responsibility for resource allocation, negotiation is an important part of the job.

CONCLUSION: Managers required to have powers to perform these managerial roles effectively and efficiently.

What are the sources and types of power for managers to discharge these roles?

WHAT IS POWER?

Is the capacity to influence others behavior. Is used as a means for achieving goals Person A has power over person B to the extent A can get B to do something that B would otherwise not do. A's power over b depends on how much b needs what a controls. Power represents capability while influence is the exercise of that capability

Where do powers come from Where do powers come from? Important structural sources of power include knowledge, resources, decision making and networks

KNOWLEDGE AS POWER: Organizations are information processors that must use knowledge to produce goods and services. Intellectual capital represents the knowledge, know-how, and competency that exist in the organization which can provide an organization with a competitive edge in the marketplace.

CONTROL OF RESOURCES AS POWER: Organizations need a variety of resources, including money, human resources, equipment, materials, and customers to survive. The importance of specific resources to an organization's success and the difficulty in obtaining them vary from situation to situation

DECISION MAKING AS POWER: The decision making process in an organization creates more or less power differences among individuals or groups. Managers exercise considerable power in an organization simply because of their decision making ability.

NETWORKS AS POWER: The existence of structural and situational power depends not only on access to information, resources and decision making, but also on the ability to get cooperation in carrying out tasks. Managers and individuals that have connecting links with other individuals and managers, in the organization and beyond, will be more powerful than those who don't.

TYPES OF POWERS

LEGITIMATE POWER: Refers to the ability to influence others because of the position one holds in the organization. It is also called authority, or the right to command. Characteristics of organizational authority are: It is invested in a person's position. It is accepted by subordinates. Authority is used vertically; flows from the top down.

COERCIVE POWER: It is he power to punish. It is based on fear of punishment. It can come from legitimate power.

REWARD POWER: Based on a person's ability to reward a follower for compliance. It occurs when someone possesses a resource that another person wants and will exchange that resource for certain behavior. It supports legitimate power.

Expert Power This is based on a person's own experiences, superior skills and knowledge; or more precisely it is based on the followers’ perceptions of the leader’s competence – generally this has to be demonstrated.

REFERENT POWER Refers to the ability of a person to influence others because of the follower's loyalty, respect, friendship, admiration, affection, desire to gain approval from, or desire to be associated with the person.

Part II Management Functions

There are four key functions that managers perform There are four key functions that managers perform. Managers must make plans for the company. They must organize workers and resources. They must also lead and direct the actions of employees. Finally, managers must constantly check on the progress of plans, employees and other goals

Planning

The Planning Process Determining firm’s goals Developing strategy for achieving goals Designing tactical and operational plans for implementing the strategy

Mission A statement of the basic purpose that makes an organization different from others. Strategic planning The process of establishing an organization’s major goals and objectives and allocating the resources to achieve them.

Establishing Goals and Objectives Goal An end result an organization is expected to achieve over a one- to ten-year period. Set at every level of organization Must be consistent among levels Optimization = balancing process Objective A specific statement detailing what the organization intends to accomplish over a shorter period of time.

Plan Strategic plan Tactical plans Is an outline of the actions by which an organization intends to accomplish its goals and objectives. It can be: Strategic plan Is an organization’s broadest plan, developed as a guide for major policy setting and decision making. Tactical plans Is a smaller-scale plan developed to implement a strategy

Operational plan Is a type of plan designed to implement tactical plans.

Contingency plan Is a plan that outlines alternative courses of action that may be taken if an organization’s other plans are disrupted or become ineffective.