Management Activities Unit 3 – Chapter 8 ‘The tragedy in life doesn’t lie in not reaching your goal. The tragedy lies in having no goals to reach’

Management Activities Managers at all levels of an organisation will need to engage in certain activities. These are referred to as management activities and consist of: Planning Organising Controlling

Planning Planning is the process of deciding on the organisations goals and setting out the means of achieving them.

Steps involved in planning Analyse the present situation using the SWOT analysis. Set Objectives. Devise Strategies. Implement the plan.

SWOT Analysis Conduct a one page SWOT analysis on a business of your choice.

Types of Plan Mission Statement Strategic Plan Tactical Plan

Mission Statement This is the fundamental objective and philosophy of the business.

Strategic Plan This is the Major plan for the entire business

Tactical Plan This is a short-term (less than a year) plan for one section of the business. Generally written by middle management.

Class Work Using Coláiste Einde as an example, come up with the Mission Statement of the school. What Strategic plan for the school does the Board of Management and Principal have? What Tactical plan (if any) do teachers in your opinion have? Do you have your own long-term and short-term plans? Think of Maslows Hierarchy.

Principles of Planning All plans must be based on definite agreed objectives. E.g. Identify the goals of management for the firm. The plan must be precise and easy to understand. It must be possible to achieve the plan. It must be sensible and realistic. The plan must be flexible enough to allow for unexpected changes where necessary. The plan should include control procedures, so that performance can be checked against standards. There must be proper communication with those involved in operating the plan.

Benefits of planning When planning, weaknesses become apparent and steps can be taken to remedy them. If all management and staff are given an input, the final plan will have everyone's support. Planning helps to create a positive thinking amongst the employees. They are willing to accept change, which leads to greater efficiency. The existence of a business plan will streamline the operation of a business, as well as being necessary to raise capital. If plans are accurate, sales and profits should be on target with projections.

Organising Organising involves ensuring that there is a clear structure within the firm to facilitate the smooth running of the business.

Reasons for organisational structure To identify all the tasks that have to be done. To ensure that the necessary financial and human resources are made available to carry out the tasks. To ensure that the firm is efficiently run.

What an organisation chart shows: Senior managers Middle managers Junior or supervisory managers Areas of responsibility The chain of command Span of control Line position Staff position

Industrial relations Manager Functional Structure Managing Director Board of Directors Marketing Manager Advertising Manager Staff Finance Manager Accountant Bookkeeper Production Manager Supervisors Technicians HR Manager Industrial relations Manager Admin Staff Sales Manager Regional Manager Sales Rep

Ways to Structure a Business By function: arranging the business according to what each section or department does By product or activity: organising according to the different products made By area: geographical or regional structure

Span of Control Span of control refers to the number and range of people who report to any one person “In the hierarchical business organization of some time in the past it was not uncommon to see average spans of 1 to 4 or even less. That is, one manager supervised four employees on average. In the 1980s corporate leaders flattened many organizational structures causing average spans to move closer to 1 to 10. That was made possible primarily by the development of inexpensive information technology.” - Wikipedia

Factors affecting Span of Control Geographical location Technology Capability of workers Similarity of task Dunbars number

Controlling Controlling is a management activity that involves measuring performances to make sure the required standards are being reached. This ensures that the firm will stay on course to achieve the objectives set out in its plans. How do you control your own targets?

Process of controlling Set out clear objectives Identify targets and standards that are to be achieved. Monitor and measure performance regularly. Compare actual performance with the objectives that were set. Take corrective action if not achieving objectives. Revise plans to ensure adequate resources are available to achieve targets.

Enterprise controls Controls should be found in the following areas of business. Finance Profits must be checked and the cash flow of the firm must be monitored Production Output levels, quality and wastage must be monitored Marketing Cost of sales, level of credit to customers and number of complaints must be monitored Human resources A firm with a high level of turnover or a high level of absenteeism should investigate the reasons for such problems Stocks A firm should have a policy on stock levels and any deviation should be brought to the attention of the purchasing manager

Types of Controls used in Business Stock control Quality Control This is to ensure that stock levels are adequate to meet the needs of customers. The degree of excellence that meets the customers requirements on all issues except price.

Types of Controls used in Business Credit control Financial control The aim of credit control is to make sure customers pay their bills on time and eliminate bad debts. To control the budget of the company for a specific period.

Stock Control Stock control is a system to ensure that a firm carries sufficient stocks at all times to meet customers needs. The most economical level for a business is called the optimum level of stock. Businesses should have a maximum and minimum level of stock. Re-order level is the level at which new orders should be placed. Just-In-Time (JIT) manufacturing is having the materials in stock just before they are required. E.g. car manufacturing.

Quality Control This involves making sure that the quality of a business’s products meets the expectations of consumers. The first step is to determine the quality standard required by the customer. The second step is to reach the required standard through quality planning, i.e purchasing quality materials, training staff well, using quality equipment. Quality standards: The quality mark ISO 9000 series Total Quality Management (TQM)

Credit Control Credit control is a term applied to the means employed by a firm for controlling the amount of credit it allows. Sell now – Pay later; selling goods now but agree a payment date in the future. Credit control means monitoring which customers are given credit and for how long and ensuring they pay in time. Bad debts refer to customers who bought on credit but are now unable to pay what they owe, possibly because they have gone into liquidation.

Financial control Financial control is used to monitor the financial affairs of the business to ensure it has sufficient finance to pay its bills. It can be achieved by using: Cashflow budgets Ratio analysis Cost control – to ensure the costs do not rise beyond planned levels. Break even point analysis – to identify the sales break-even point.

Class Assignment “Management is an operational process which involves analysing the essential managerial functions of planning, organisation, staffing, directing and controlling, which should be directed by a highly skilled and qualified professional” Or “Management is utilising resources to maximise results” Do you agree with either of these statements? Discuss 400 word essay due 26th January, typed or emailed.