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UNIT:1FUNCTIONS OF MANAGEMENTBy : Mr. Nilesh KumbharMr. N R Kumbhar (DYPCET)

What We Will Learn Planning – Objectives, Steps in Planning, elements of planning, Organizing – Process of Organizing, importance and principle oforganizing, depart mentation, Span of control. Staffing – Nature, Purpose, Scope, Human resource management,Policies, Recruitment procedure, training and development, appraisalmethods. Directing – Leadership style, Communication process, Barriers, remedies,Motivation, importance Herzberg’s theory, Maslow’s theory, McGregor’stheory Controlling–Process, Requirement for control managementMr. N R Kumbhar (DYPCET)

What is Planning? Planning means looking ahead and chalking out future courses ofaction to be followed. It is a systematic activity which determines when, how and who is goingto perform a specific job.Mr. N R Kumbhar (DYPCET)

Well Plan is half Done▪ Therefore planning takes intoconsideration available &prospective human and physicalresources of the organization soas to get effective co-ordination,contribution & perfectadjustment.Mr. N R Kumbhar (DYPCET)

Planning is Bridging the Gap According to Koontz & O’Donell, “Planning is deciding in advancewhat to do, how to do and who is to do it. Planning bridges the gap between where we are to, where we wantto go. It makes possible things to occur which would not otherwiseoccur”.Mr. N R Kumbhar (DYPCET)

How Planning Should be… Goal orientation Specificity Accuracy Comprehensiveness Flexibility Objectivity Simplicity Communicability ImplementableMr. N R Kumbhar (DYPCET)

Types of PlanningMr. N R Kumbhar (DYPCET)

Operational Planning This level of planning occurs at the lower level, as it revolves aroundthe basic details of how any specific goal or objective can beaccomplished using available resources. Operational planning is generally done for finding the right marketingplans, best-suited production methods, different organizationalfacilities, etc.Mr. N R Kumbhar (DYPCET)

Tactical Plan It occurs at the middle level. Tactical planning is responsible for doingplanning through which the mission of an organization can beaccomplished. At the level of planning, decisions related to services or products thatshould be added, pricing, facilities, systems, size of capital investments,etc are made.Mr. N R Kumbhar (DYPCET)

Strategic Plan This level of planning occurs at the top-most level where topmanagement tries to accomplish long-term goals by using availableresources. Strategic planning revolves around making a mission for the entireorganization, finding out all the financial requirements, allocation ofresources, ensuring authority relations in the organization, etc.Mr. N R Kumbhar (DYPCET)

Characteristics of PlanningMr. N R Kumbhar (DYPCET)

Importance of Planning14Improve Future Performance Minimizes risk and UncertaintyMr. N R Kumbhar (DYPCET)

Importance of PlanningFuture Opportunities and Threats Sets Out Standards for ControllingMr. N R Kumbhar (DYPCET)

Importance of PlanningFacilitates the Coordination of Activities Direction for ActionMr. N R Kumbhar (DYPCET)

Steps involved in PlanningAnalyzingOpportunitiesSetting Objective DevelopingPremisesIdentifyAlternativesEvaluateAlternativesSelectAlternativesImplement ActionPlanReviewImplemented PlanModify if Required/ ContinueMr. N R Kumbhar (DYPCET)

Analyzing OpportunitiesMr. N R Kumbhar (DYPCET)

Setting ObjectiveMr. N R Kumbhar (DYPCET)

Developing PremisesInternal PremisesExternal Premises Mr. N R Kumbhar (DYPCET)

Identify AlternativesMr. N R Kumbhar (DYPCET)

Evaluate & Selection of AlternativeMr. N R Kumbhar (DYPCET)

Implement Action PlanMr. N R Kumbhar (DYPCET)

Review Implemented PlanMr. N R Kumbhar (DYPCET)

Modify if Required / ContinueMr. N R Kumbhar (DYPCET)

Benefits of Planning❑ Provides direction❑ Reduces uncertainty❑ Facilitates decision-making❑ Ensures efficient use of resources❑ Encourages innovation❑ Sets standards for control❑ Improves coordination❑ Increases organizational effectiveness❑ Motivates employees❑ Helps in coping with changeMr. N R Kumbhar (DYPCET)

What is Organizing Function? The organizing function of management involves establishing astructure and coordinating resources to effectively implement plansand achieve organizational goals. It follows planning and focuses on creating an organized frameworkfor operations. This includes defining roles, allocating resources, and establishingworkflows to ensure smooth and efficient executionMr. N R Kumbhar (DYPCET)

Steps in Organizing Identification of activitiesAll the activities which have to be performed in a concern have to beidentified first. Departmentally organizing the activitiesIn this step, the manager tries to combine and group similar and relatedactivities into units or departments. This organization of dividing thewhole concern into independent units Defining Roles and Responsibilities:Mr. N R Kumbhar (DYPCET)

Steps in OrganizingIdentification of activities organizing the activitiesMr. N R Kumbhar (DYPCET)

Defining Roles and Responsibilities Establishing OrganizationalStructureMr. N R Kumbhar (DYPCET)

Allocating Resources: Delegating Authority andResponsibilityMr. N R Kumbhar (DYPCET)

Why Organizing is Important❑Clarifies roles and responsibilities❑Facilitates specialization and efficiency❑Ensures proper utilization of resources❑Improves communication and coordination❑Provides a framework for management functions❑Helps in adapting to environmental changes❑Reduces duplication of effortMr. N R Kumbhar (DYPCET)

Departmentation (Departmentalization)❑ By Functions❑ By Product❑ By Geography❑ By Process/Equipment❑ By Customer❑ By ProjectsMr. N R Kumbhar (DYPCET)

Staffing – Function of Management Nature of Staffing A managerial function like planning, organizing, directing,controlling. Concerned with acquiring, developing & maintaining humanresources. Continuous and universal in all organizations. People-centered, ensuring right person at the right job.Mr. N R Kumbhar (DYPCET)

Purpose of Staffing To build a competent workforce. To ensure effective utilization of manpower. To improve employee motivation & satisfaction. To achieve organizational objectives through people.Mr. N R Kumbhar (DYPCET)

Scope of Staffing Manpower Planning (forecasting future needs). Recruitment & Selection (finding and hiring right people). Training & Development (improving skills). Performance Appraisal (measuring effectiveness). Compensation & Benefits (rewarding fairly). Employee Retention & Welfare.Mr. N R Kumbhar (DYPCET)

Staffing & Human Resource Management (HRM) Staffing is the operational function of HRM. HRM provides the policies, tools, and framework for staffing. Covers acquisition, development, motivation, and maintenance ofworkforce.Mr. N R Kumbhar (DYPCET)

Staffing Policies Guidelines for recruitment, promotion, transfers, compensation. Based on fairness, merit, and transparency. Ensure consistency & equal treatment of employees.Mr. N R Kumbhar (DYPCET)

Recruitment Procedure Manpower Planning (identify vacancies). Job Analysis & Job Description. Advertisement/Inviting Applications. Screening & Shortlisting. Selection (tests, interview, medical check). Appointment & Orientation.Mr. N R Kumbhar (DYPCET)

Training & Development Induction/Orientation Training. On-the-Job Training (practical learning). Off-the-Job Training (workshops, classroom). Skill Development for future roles. Enhances productivity, adaptability & innovation.Mr. N R Kumbhar (DYPCET)

Appraisal Methods Traditional: Confidential Reports, Ranking, Rating Scales. Modern: 360° Feedback, MOB (Management by Objectives) , BARS(Behaviorally Anchored Rating Scale): Used for promotion, rewards, transfers, training needsMr. N R Kumbhar (DYPCET)

DIRECTINGMr. N R Kumbhar (DYPCET)

Qualities of LeaderMr. N R Kumbhar (DYPCET)

How to Chose Leadership StyleMr. N R Kumbhar (DYPCET)

Leadership StylesMr. N R Kumbhar (DYPCET)

❑Manager retains power (classical approach)❑Manager is decision-making authority❑Manager does not consult employees for input❑Subordinates expected to obey orders without explanations❑Motivation provided through structured rewards and punishmentsNotice that the description of Autocratic Leaders use the term,managers. Autocratic Leadership fits nicely in to the ideas ofmanagement where it is expected that subordinate obedience resultsfrom orders and expectations set by the leaderMr. N R Kumbhar (DYPCET)

Visionary leadership is a leadership style where anindividual is able to see and communicate a vision of thefuture to others who will help turn it into reality. You mightalso hear this style referred to as transformationalleadership, where the leader quite literally transforms ateam or an organization to match their vision.❑Goal-oriented❑Big picture thinker❑Problem solver❑Innovator mindset❑Emotional intelligenceMr. N R Kumbhar (DYPCET)

Affiliative leadership is a style of leadership that focusescompletely on people and relationships. It relates to the act offorming social and emotional bonds with each member of a team.Adopting a people-first approach can help in creating andsustaining a peaceful workplace environment.❑Prioritizing Co-Workers❑Constructive Feedback Loops❑Participative Dialogue❑A Strong Moral Compass❑Emotional IntelligenceMr. N R Kumbhar (DYPCET)

The democratic leadership style is defined by collaboration,shared decision making and the equal distribution of power.❑ Managers surround themselves with people who have different points ofview and who can offer varied perspectives.❑ They are not afraid to be challenged or to be wrong.❑ Employees are encouraged to speak up in team meetings and share theirideas.❑ Leaders have an open-door policy where employees can approach themfor advice and voice concerns.❑ Meetings are treated more like group discussions.❑ Open communication is encouraged and a safe environment for sharingthoughts is created.Mr. N R Kumbhar (DYPCET)

In this style, the leader sets a high-performance benchmark. He orshe is obsessive about doing things better and faster and expectsthe same from others.Pacesetting leadership doesn’t work for everyone, but it can beparticularly beneficial if workloads are high.If there’s a lot to be done, and it needs to be done quickly, that goalis more likely to be achieved using this leadership model.However, it is important to note that, in order to be successful, boththe pacesetting leader and their team need to be highly skilled.Mr. N R Kumbhar (DYPCET)

Coaching leadership is a style that involves recognizing teammembers' strengths, weaknesses and motivations to help eachindividual improve.❑ Encourages two-way communication and collaboration❑ Involves lots of constructive feedback❑ Facilitates the personal and professional development of individuals❑ Focuses on being supportive, not judgmental❑ Creates opportunities for growth and creative thinkingMr. N R Kumbhar (DYPCET)

HERZBERG’STHEORYBy : Mr. Nilesh KumbharMr. N R Kumbhar (DYPCET)

Herzberg’s TheoryHygieneFactorMotivationFactorIts presence motivateemployee for betterwork.Gives satisfaction toemployeeIts presence may notmotivate employee forbetter work but isabsence willdemotivate employee.Presence may notgive satisfaction butabsence will givedissatisfactionMr. N R Kumbhar (DYPCET)

Poor hygienefactors leadsto employee'sdissatisfactiontoward job,hence lessproductivityGoodMotivationfactorsimproves thejobsatisfaction ofemployee,henceimprovesproductivityMr. N R Kumbhar (DYPCET)

MASLOW’STHEORYMr. N R Kumbhar (DYPCET)

❑ In order to better understand what motivates human beings,Maslow proposed that human needs can be organized into ahierarchy.❑ This hierarchy ranges from more concrete needs such as food andwater to abstract concepts such as self-fulfillment.❑ According to Maslow, when a lower need is met, the next need onthe hierarchy becomes our focus of attention.What it is?Mr. N R Kumbhar (DYPCET)

If your employees need wages to live, thengive them wages enough to live on.If you don’t pay employees enough to put aroof over their head, then don’t expect themto care too much about keeping your balancesheet in a positive place.PhysiologicalMr. N R Kumbhar (DYPCET)

❑ Your employees don’t feel like their job orfuture is secure then this adds untold amountsof undue stress and can cause losses inproductivity, morale, and overallprofitability.❑ If you have managers who make youremployees feel this way – change theirbehavior, or change the manager.SafetyMr. N R Kumbhar (DYPCET)

Social / Love / BelongingCreate and promote a strong team-oriented culture and inclusionaryefforts.Make workplace feel like homeMr. N R Kumbhar (DYPCET)

Esteem❑ This is the need where employee recognitionbecomes important.❑ Recognizing your employees publicly, or through anemployee recognition incentive program, lets themknow that they are doing well, their contributionsmatter, and they’re viewed as valuable by thecompany.Mr. N R Kumbhar (DYPCET)

Self Actualization❑When you provide the tools, the education, theenvironment, and the stability, the employees canprovide this and realize their potential.❑When they reach this level of engagement, theyinspire others around them and perform optimally– which is best for businessMr. N R Kumbhar (DYPCET)

MCGREGOR’STHEORYMr. N R Kumbhar (DYPCET)

Why ? Drawing on Maslow's hierarchy of needs, McGregor argues that aneed, once satisfied, no longer motivates. The company uses monetary rewards and benefits to satisfyemployees' lower-level needs. Once those needs have been satisfied, the motivation disappearsMr. N R Kumbhar (DYPCET)

Theory X and YMr. N R Kumbhar (DYPCET)

Represent Negative human behavior Represent Positive human behaviorHuman BehaviorPeople dislike the work & try to avoidthe workPeople like the work & do as naturalplayLiking of WorkPeople need direction from superiorsPeople train to self and directthemselves if committed to objectiveDirectionX YMr. N R Kumbhar (DYPCET)

They avoid responsibility They accept responsibilityResponsibilityIt is assumed people are less creative People are creativeCreativityThey resist to change They are ready to changeChangeMoney is only motivation but for shortperiodNot only money but other factorsMotivationMr. N R Kumbhar (DYPCET)

Communication Process The communication is a dynamic process that begins with theconceptualizing of ideas by the sender who then transmits the messagethrough a channel to the receiver, who in turn gives the feedback in theform of some message or signal within the given time frame.Mr. N R Kumbhar (DYPCET)

ProcessMr. N R Kumbhar (DYPCET)

7C’s of CommunicationMr. N R Kumbhar (DYPCET)

CONTROLLINGMr. N R Kumbhar (DYPCET)

What is mean by Controlling? Control is a primary goal-oriented function of management in anorganisation. It is a process of comparing the actual performance with the setstandards of the company to ensure that activities are performedaccording to the plans and if not then taking corrective actionMr. N R Kumbhar (DYPCET)

Objectives of Controlling To identify the actual progress of the work in the company. To facilitate R&D department to improve efficiency. To facilitate coordination in the organization. To measure the actual performance with the set standard. To calculate the actual quantity and quality of the product. To eliminate wastage of resources. To meet the deadline of the projects.Mr. N R Kumbhar (DYPCET)

Characteristics of Controlling Controlling is an end function Controlling is a pervasive function Controlling is backward as well as forward looking Controlling is a dynamic process Controlling is related with PlanningMr. N R Kumbhar (DYPCET)

Process of ControllingMr. N R Kumbhar (DYPCET)

Establishing standards This means setting up of the target which needs to beachieved to meet organisational goals eventually. Standards indicate the criteria of performance Control standards are categorized as quantitative andqualitative standards. Quantitative standards are expressed in terms of money. Qualitative standards, on the other hand, includesintangible items. Mr. N R Kumbhar (DYPCET)

Measurement of actual performance Deviations are found out by comparing standardperformance with the actual performance.Performance levels are sometimes easy tomeasure and sometimes difficult. Measurement oftangible standards is easy as it can be expressedin units, cost, money terms, etc. Performance of amanager cannot be measured in quantities.Mr. N R Kumbhar (DYPCET)

Comparison of Actual with Standard Performance By comparing the actual with standard, deviations are identified. Manager has to find out whether the deviation is positive or negativeor whether the actual performance is in conformity with the plannedperformance. The managers have to exercise control by exception.Mr. N R Kumbhar (DYPCET)

Corrective Actions if necessary Once the causes and extent of deviations are known, the manager hasto detect those errors and take remedial measures for it. There aretwo alternatives as follows: Taking corrective measures for deviations which have occurred In the end, if the actual performance is not in conformity with plans, thetargets are revised.Mr. N R Kumbhar (DYPCET)

Types of ControlMr. N R Kumbhar (DYPCET)

Important Questions1. Define Planning and Explain Different steps involved in Planning2. List various elements of Planning.3. Write a note on Span of Control4. What are different types of depart-mentation? Explain Functional Type indetail.5. Write a note on HRM.6. What is Staffing? Explain process of staffing.7. What are different types of leadership? Explanin any one in detail.8. Write a note on Herzberg’s theory9. Write a note on Maslow’s theory10. McGregor’s theory11. Explain different barriers of communication.12. What is controlling? Explain Process of Controlling.Mr. N R Kumbhar (DYPCET)

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Unit 2: Functions of Management (POSDC.)