2. FUNCTION OF MANAGEMENT (I)Defining Management What is Management? Management Levels Management Skills (II)Functions of Management PlanningOrganizingStaffing Co- ordinating LeadingControlling OUTLINE

3. (I)Defining Management A) What is Management? á Effectiveness: doing the right things under the right circumstances The process of getting activities done efficiently and effectively with and through other people á Process: refers to the primary activities engaged in by managers þ planning, organizing, staffing, co-ordinating, leading, controlling & decision making á Efficiency: the relationship between inputs and outputs (minimize resources)

4. B) Management Level Top Management Middle Management First-line Management Top Management: making decision and setting policies that affect all aspects of the organization Middle management: formulate strategies, communicate First-line management: monitor front-line operations

5. C) Management Skills Technical skills: knowledge of and proficiency in a certain specialized field Top Management Middle Management First-line Management Conceptual skills Human skills Technical skills Conceptual skills: ability to think and to conceptualize about abstract situation Human relation skills: ability to work well with other people

6. (II)Functions of Management PlanningOrganizingStaffingCo-ordinatingLeadingControlling Decision- making “SMART” objectives: Specific, Measurable, Achievable, Realistic & Time-based A) Planning the process of defining an organization’s objectives and how it will achieve them

7. A) Planning 1. Purposes of Planning Clarify the purpose of the organization Give direction to the organization Establish coordinated effort Reduce uncertainty by anticipating changes Reduce overlapping and wasteful activities Clarify the consequences of action

8. A) Planning 2. Types of Plan BREADTH Strategic plan: an overall plan that apply to the entire organization and covers a long period of time Tactical plan: a more specific and detailed plan made by middle managers Operational plan: a detailed plan that specify how the overall objectives are to be achieved

9. TIME FRAME · Long term plan: plan that extend beyond five years · Short term plan: plan that cover less than one year A) Planning 2. Types of Plan

10. A) Planning 2. Types of Plan SPECIFICITY · Directional plan: flexible plan that set out general guidelines · Specific plan: plan that are clearly defined and leave no room for interpretation

11. A) Planning 2. Types of Plan FREQUENCY OF USE · Single-use plan: · a one-time plan · specifically designed to meet the needs of a unique situation · in response to non-programmed decisions Standing plan: · ongoing plan · created in response to programmed decisions

12. 3. Steps in the planning process Forecast the future environment Establish goals & objectives Select the best alternatives Design alternative ways of achieving objectives Implement & monitor the plan, making adjustment when necessary

13. MISSION What is our fundamental reason for being? GOAL What do we want to achieve? STRATEGY What are the major means by which we hope to achieve our goals? OBJECTIVE How are we going to achieve our goals specifically? 4. Some Terminologies

14. B) Organizing, Staffing & Co-ordinating PlanningOrganizingStaffing Co- ordinating LeadingControlling Decision- making Organizing: the process of breaking down the work into smaller pieces and designing a structure to facilitate the completion of work Staffing: the personnel management process in which qualified candidates are recruited to fill the position in organizations Coordinating: the process of integrating the work of separate department to achieve unity of effort

15. C) Leading PlanningOrganizingStaffingCo-ordinatingLeadingControlling Decision- making â The process of influencing subordinates to behave in a way that can contribute to the accomplishment of the organizational objectives task-oriented: plan and define work; monitor results; assign responsibilities employee-oriented: respect; warmth; mutual trust; sensitivity â Leadership

16. C) Leading â 3 Types of Leader Autocratic leader : makes all the decision and does not concern about the subordinates (task-oriented) Democratic leader: makes decisions with subordinates or based on their suggestions (employee-oriented) Free-rein leader: allows subordinates to have full autonomy in decision-making without giving any directions to them

17. C) Leading Comparison of Autocratic, Democratic and Free-rein Leaders

18. The process of monitoring activities to ensure they are being accomplished as planned and of correcting any significant deviations D) Control PlanningOrganizingStaffingCo-ordinatingLeadingControlling Decision- making Importance of Control þ to make sure organizational goals are met þ To reduce the reluctance to delegate þ To provide information and feedback on the performance of subordinates

19. Compare actual performance with standard ObjectivesStandard Measure actual performance Do nothing Is standard being attained? Is variance acceptable? Is standard acceptable? Review standard Do nothing Identify cause of variation Correct performance Yes No Control Process

20. Qualities of an Effective Control System R Accuracy R Timeliness R Economy R Flexibility R Understandability R Reasonable criteria R Strategic placement R Multiple criteria R Corrective action R Emphasis on the exception

21. E) Decision-making â typically described as “choosing among alternatives” â a comprehensive view: as a set of 8 steps that include: Identifying a problem Identifying decision criteria Allocating weights of criteria Developing alternatives Analyzing alternatives Selecting an alternatives Implementing the alternative Evaluating the decision effectiveness

22. E) Decision-making 1. Types of Decision Programmed/routine decision : a repetitive decision that can be handled by a routine approach Non-programmed/ non-routine decision : an unique decision that requires a custom-made solution Programmed decisions Non-programmed decisions Ill-illustrated Well-illustrated Top Lower Level in organization Type of problem

23. 1. Factors affecting the decision-making process E) Decision-making R Types of decision R Management style (autocratic, democratic or free-rein) R Availability of resources R Time factor