1. 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’

2. 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

3. 1. Planning
Planning is the management process of deciding on the organisation’s goals and setting out the means of achieving them.

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

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

6. 1. SWOT Analysis This is analysing the situation the business is in
Strengths - Something the business owns or does well (excellent staff).
Weaknesses - Something the business does badly or lacks (not enough money).
Opportunities - Something in the outside world that the business can avail of (new countries join EU).
Threats - Something outside the business which can prevent it from succeeding (competition)

7. Types of Plan Mission Statement Strategic Plan Tactical Plan
Operational Plan

8. Mission Statement
This is the fundamental objective and philosophy of the business.
“The Adidas Group strives to be the global leader in the sporting goods industry with sports brands built on a passion for sports and a sporting lifestyle”.

9. Strategic Plan
This is the Major plan for the entire business

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

11. Operational Plan
Projecting future sales and ensuring that the correct quantity of goods is available to meet the market demand. This is short term planning e.g. weekly sales budgets.

12. 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.

13. Principles of Planning (SMART)
a) Specific All plans must be based on clear and precise objectives and the methods of achievement. E.g. Identify the goals of management for the firm. b) Measurable It must be possible to measure reasonably accurately the success of the plan. c)Achievable Objectives must be achievable i.e. not too high or not too low. d)Relevant Plan must be relevant to the needs of the organisation e)Timed A timescale gives focus. It must be possibe to achieve an objective in the time frame. Progress should be checked regularly against the time frame.

14. f)Flexible
The plan must be flexible enough to allow for unexpected changes where necessary.
g)Control Procedures
The plan should include control procedures, so that performance can be checked against standards.
h)Communication
There must be proper communication with those involved in operating the plan.

15. 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.

16. 2013 Question 4
Discuss the importance of the management activity of planning for EducaPrint Ltd.
Answer:
Definition: Planning is the management process of deciding on the organisation’s goals and setting out the means of achieving them; it involves the putting in place of strategies that allow you to achieve the stated goals and objectives.
Planning ensures that EducaPrint Ltd considers its future and how it will achieve continued success.
Planning gives EducaPrint Ltd purpose and direction and reduces risk and uncertainty.

17. SWOT analysis is an initial step in the planning process
SWOT analysis is an initial step in the planning process. The aim of EducaPrint Ltd is to play to its strengths and opportunities while seeking to minimise the impact of weaknesses and threats.
Mission Statement: This is a visionary statement outlining who the business is, what the business does and where the business is going e.g. EducaPrint Ltd is a business publishing schoolbooks and eBooks in Ireland. The mission statement would give an insight to the stakeholders into the core values and culture of EducaPrint Ltd.
Strategic Planning: This is long term planning covering a period of five years or more. It is usually drawn up by senior management and it outlines how the long-term goals of the firm are to be achieved e.g. EducaPrint Ltd may decide to expand its successful business model into the UK publishing market.

18. Tactical Planning: This is short-term planning which breaks the strategic plan into shorter more manageable periods. It deals with the ‘now’ part of the plan. It is usually drawn up by middle management e.g. EducaPrint Ltd might attempt to target a new group of customers next year.
Contingency Planning: This is back-up planning to cope with emergencies/ unforeseen events and unexpected circumstances. Contingency plans benefit EducaPrint Ltd by preventing disruptions to business and thereby preventing loss of profits and possible business collapse e.g. EducaPrint Ltd may have alternative suppliers of paper available for its traditional print books.

19. 2. Organising Definition Organisational Structures Organisation charts
Functional
Product
Geographic
Matrix
Organisation charts
Chain of command
Span of control
Delayering
Advantages of Organising

20. Organising
Organising means bringing people and resources together in an effective way to achieve a common objective.
It involves:
(i)Coordination – which is ensuring that all the staff of an organisation are working together to achieve the goals of the business; and
(ii)Delegation – which is the passing on of authority or power and responsibility of certain tasks to subordinates.

21. To organise a business managers must identify work to be done and establish an organisation structure, delegate and establish a clear chain of command

22. Organisational Structures
Organisational structures identify the different departments in an organisation and sets out who answers to whom within and organisation.

23. 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.

24. 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

25. Functional Organisational Structure
Arranging the business according to what each section or department does
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

26. Benefits?
Answer this question!

27. Product Organisational Structure
Organising according to the different products made

28. Benefits?
Answer this question!

29. Geographical Organisational Structure
Divides organisation according to
the geographical markets it services

30. Benefits?

31. Matrix Organisational Structure
Combination of functional and product structure. Groups from different functions or departments are formed into teams to deliver a product or service to customers.

32. Matrix Organisational Structure

33. Benefits?

34. Organisation Charts
Chain of command – shows the direction in which orders are passed down from the top to the bottom, and how feedback is sent back up.

35. Organisation Charts
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

38. Factors affecting Span of Control
Geographical location
Technology
Capability of workers
Similarity of task

39. Delayering
Delayering is a reduction in the number of levels in an organisation's hierarchy.
Delayering does not necessarily involve stripping out jobs and cutting overheads. But it does usually mean increasing the average span of control of senior managers within the organisation. This can, in effect, chop the number of layers without removing a single name from the payroll.

40. Benefits of Delayering
De-layering can offer a number of advantages to business:
It offers opportunities for delegation, empowerment and motivation as the number of managers is reduced and more authority is given to shop-floor workers
It can improve communication within the business as messages have to pass through fewer levels of hierarchy
It can reduce costs as fewer employees are required and employing middle managers can be expensive
It can encourage innovation
It brings managers into close contact with the business’ customers

41. Disadvantages of Delayering
The disadvantages of de-layering are:
Senior managers have to deal with a wider span of control and an increased workload. This may cause stress.
Managers' jobs may be lost through redundancies and this may lead to industrial relations problems.
Control becomes more difficult as the span of control increase.

42. Advantages of Organising
Clarity in Working Relationship:
Organising clarifies the working relations among employees. It specifies who is to report to whom. Therefore, communication becomes effective. It also helps in fixing accountability.
Optimum Utilisation of Resources:
Under the process of organising the entire work is divided into various small activities. There is no possibility of any activity being left out or any unnecessary duplicating any job. Consequently, there is optimum utilisation of all the available resources (e.g., material, machine, financial, human resource, etc.) in the organisation.
Adaptation to Change:
This becomes possible only because of the fact that there is a clear chain of authority for the manager’s right from the top to the lower level.

43. Effective Administration:
The process of organising makes a clear mention of each and every activity of every manager and also of their extent of authority.
Development of Personnel:
Under the process of organising, delegation of authority is practiced. It provides opportunities of taking decisions to the subordinates. By taking advantage of this situation, they try to find out the latest techniques and implement them. Consequently, it helps them to grow and develop.
Expansion and Growth:
The process of organising allows the employees the freedom to take decisions which helps them to grow. They are always ready to face new challenges. This situation can help in the development of the enterprise. This helps in increasing the earning capacity of the enterprise which in turn helps its development.

44. 3. Controlling Definition Principles/Steps of Control
Areas of Control in Business
Stock
Quality
Credit
Costs
Staff
Budgetary
Advantages of Controlling

45. Controlling
Controlling is a management activity that involves measuring the performance of the business to make sure the stated goals are being achieved and taking appropriate action if there are deviations i.e. if the goals are not achieved.
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?

46. Steps of control 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.

47. 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

48. 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.

49. 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.

50. 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.

51. Quality Control
This involves making sure that the quality of a business’s products meets the expectations of consumers.
The first step is to reach the required standard through quality planning, i.e purchasing quality materials, training staff well, using quality equipment.
Product Inspection – quality control inspector
Quality Circles – small group of employees tasked with spoting problems and coming up with solutions.
Quality Standards:
The quality mark
ISO 9000 series
Total Quality Management (TQM)

52. Credit Control
The aim of credit control is to make sure all customers (debtors) pay their bills on time. This ensures the business can pay its bills on time (creditors).
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.

53. Credit Control
1. The business vets all customers to see if they can be trusted with credit accounts. They ask for a reference.
2. The business sets a maximum credit limit and credit period for customers.
3. The Business sends an invoice to all credit customers stating amount owed and due dates.
4. if customers do not pay on time a reminder letter is sent, credit may be withdrawn and possible court action may be taken to retrieve debts.

54. 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.

55. Advantages of control
Controlling Activities makes sure the business achieves its goals and that plans are successful.
Controlling reduces businesses costs.
Controlling helps improve the businesses cash flow.
Controlling increases sales and profits
Controlling improves employees performance and productivity

56. 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”
Discuss