Functions of Management

Functions of Management
Management is a process of
achieving organizational goals by
engaging in four major functions of
planning, organizing, leading and
controlling
 • Planning Organizing
• A thinking process to work out • Determine what tasks to be done.
objectives to be achieved for a given • Effective assignment of resources
time frame. • How the tasks are to be grouped?
• Develop strategies inline with the • Who will implement & coordinate
objectives and business plan of the tasks?
organization. • Who reports to whom?
• It defines who will do what, how, • Logical & efficient work flow of the
where, when and with which organization
resources.

Management
Functions
Monitoring & Controlling Leading
• The measuring of performance in all • Involves motivating subordinates.
pre-determined objectives, • Selecting effective ways of
determining reasons for deviation communication across all tiers
and taking appropriate actions, /levels.
where necessary. • Resolving conflicts, effective
• It provides ways to ensure that the decision making, directing and
organization moves towards guiding the actions of others with the
achieving the objectives. intention of achieving objectives.
Functions of Management
Functions of Management
(2. Organizing)
 Organizing
• Organizing is a process of allocating and arranging work and resources
so that plans can be carried out successfully by the appropriate people.
• Organizational efficiency is achieved by proper partition and distribution
of work, as well as by a suitable arrangement of the interrelated groups
of people participating in a work that is subject to time constraints,
resource limitation and business priorities.
• A clear organizational structure is worked out from top to bottom;
– CEO to junior most manager, teams, groups, departments, etc
– define job description / director of duties of each managerial position,
– working relationship within and outside each work center,
– and allocation of resources for attaining the objectives of the company.
 Purpose of Organizing
– Establishing organizational hierarchy and span of control
– Ensuring that important work gets done
– Providing continuity of workflow
– Forming the basis for wage and salary administration
– Delegation of responsibility and accountability
– Facilitating communication within & across groups and departments
– Promoting growth and diversification in skills
– Encouraging teamwork by minimizing personality conflicts and
reporting problems
– Allocation of requisite resources
– Stimulating creativity
 Activities of Organizing
Specific activities related to Organizing function are;
1. Organize one’s own place for productivity
2. Develop organizational structure
3. Delegation and accountability
4. Establishing working relationships
5. Allocating resources
 Activities of Organizing
(1. Organize one’s own place for productivity)
• How well the office of a typical manager is organized? A
simple test will answer this.
• How much time it takes to find a phone number?
• How much time it takes to find a important piece of
information, paper or file when one’s superior calls?
• Surveys indicate that a typical manager spends five weeks
time in a year looking for lost information / items.
• It is essential that manager’s office / workplace is
organized well with respect to time, paper and space
• Besides workplace, daily routine also needs to be
organized well for one to be efficient and effective
 Activities of Organizing
(2. Developing Organizational Structure)
• Development of organizational structure would ensure that important
works related to key objectives of the organization are performed.

• It divides the organization into small functional groups for proper

functioning.

• It would establish clear line of hierarchy within & outside the

functional group; distinguishing executive, managerial and technical
functions.

• It would help in eliminating or minimizing overlap and duplication of

responsibilities, resources and work flow.

• Logical grouping of activities would help the managers to utilize

available talents, encourage mutual support, coordinate work and
management activities, provide relevant focus, assign appropriate
resources and engage in rational DM process.
Developing Organizational Structure
• Organizations adopt one or more of the following
organizational structure.
1. Functional Organization
2. Discipline based Organization
3. Product/Region based Organization
4. Matrix Organization
5. Team Organization
6. Network / weblike Organization
 Functional Organization
• It is very commonly used organizational structure which establishes
specific departments for functioning of an organization

Advantages Disadvantages
• Hierarchy of skills can be • Centralization
developed and maintained • Delay in DM due to barriers
• Specialization to achieve higher created by the departmental ego
level of excellence • Communication loss
• Simplifies coordination • Limited employee growth
 Organization of PAC BOARD

CHAIRMAN PAC BOARD

MD AVDI
SSO & SECY
Project Azm

Member Member Member Member Ministerial

Commercial Finance Coordination Member Private
Technical

MD ARF MD MRF MD AMF MD APF

13
 AMF ORGANIZATION
MANAGING
DIRECTOR

Director
Technical Director Admin Director Security CMES
Services

Director
Director Quality Director Budget PRINCIPAL PACIT
Procurement &
& Accts
Stores AMF

DMD LA DMD JF-17

DIR Commercial
DIR UAV PROJ DIR Infra dev CE JF-17 PP&C DIR JF-17 PPO DIR HRD
PROJ

CE CHIEF Test
CE PROD CE PP&C CE PPG CE STRU B-UP CE A/C PROD CE PROD SUPP
TECHNOLOGY Pilot
 LA GROUP ORGANIZATION
DMD LA

CTP/FSO CE Prod (LA) CE Tech (LA) CE PP&C Dir Comm Proj Dir UAV

DD Parts
DCE Prod Dev DCE PP&C Mnfr
DCE MSK Assy

DCE Tech Mgmt DD DD DD

DCE MIS S&M RSAF Gemini DD Assy
Mnfr
DCE Supp Shops
DCE Indg

DCE GRP
 Disciplined based Organization

Universities, laboratories, and R&D firms are organized as per the

specific disciplines for focus and allowing them to excel in research
and typical other activities they pursue.
Product / region based Organization
 Matrix Organization

• Some companies utilize matrix organization as a short term arrangement

for specific projects and tasks involving both functional group employees
and project managers.
• Project Managers are assigned by the top management with responsibility
of accomplishing certain project and are assigned with resources and
management support
 Matrix Organization
• Project managers delegates task to
the functional manager who in-turns
assign it to a employee working under
him.
• In other case, Project Manager borrow
employees from functional groups to
perform the task for a certain time
 Functional group members return
back after completion of project
work
Advantages Disadvantages
• Project manager focus on • Dual reporting of employee
schedule and cost • When employee is assigned to
• Functional manager focus multiple projects, it may cause
on expertise & quality friction between Project manager
• Develops teamwork and and functional manager vis-a-vis job
wide exposure priority, performance, quality, --
 Team Organization

• A team is composed of members who are on loan from their

respective functional departments and thus assigned to work
full time for the team leader
• It eliminates dual reporting and work prioritization problems of
matrix organization
 Network / Weblike Organization
• Bigger enterprises who think globally
and act locally, include a chain of local
suppliers’ inherent technical and non-
technical skills and capabilities as a
part of their corporate strength
• Such companies form alliances, create
business networks and establish
supply chains with regional companies
to manufacture, assemble, market,
deliver and service products for specific
regional markets

• At the nodes of such networks are knowledge workers/

managers who manages relationship with others (suppliers,
customers, other partners, functional groups within the
organization itself, etc).
• Such organizations are also called chaos organization.
 Cross Functional Teams
• A cross-functional team is a group of people with different
expertise working toward a common goal.
• It includes people from manufacturing, design, testing, HR,
finance, marketing, operations, procurement, etc. Members
get full support for their departments.
• Members may also come from outside an organization; in
particular, from suppliers, key customers, or consultants.
• Cross-functional teams often function as self-directed
teams assigned to a specific task which calls for the input
and expertise of numerous departments.
• The aim is to bring up an optimum product, service or
solution to a problem within shortest time, lowest cost,
satisfying all constraints and meeting all requirements
 Cross Functional Teams
• Assigning a task to a team composed of multi-disciplinary
individuals increases level of creativity, mutual trust &
establishes common opinion.
• Each member offers an alternative perspective to the
problem and potential solution to the task.
• CFT promote innovation through a creative collaboration
process, innovation being a leading competitive advantage
• CFTs are generally set up to
– Generate recommendations, such as strategy to introduce new
technological change in a product, enter a specific market, or solve
a specific customer related problem
– Make or do things
– Run things efficiently
 Cross Functional Teams
• The success of a CFT depends on certain factors, without
which a team will always be struggling.
– Highly motivated team members
– Teams hold accountability to accomplish the mission
– Open-minded team members
– Management support to the team
– No conflicting personal goals
– Clear priorities or direction
– Adequate vertical – horizontal – peer communication
 Benefits of CFTs
1. Gain a better insight.
– When project managers put together people who are experts in different
subjects, it will bring out new perspectives / insights to the team.
– With each team member bringing their skills and knowledge to the table, the
work will progress and bring solutions quicker.
2. Engaged employees.
– Employee engagement makes a big difference to the overall productivity of
the organization.
– Therefore, shifting to team-oriented structures can boost team bonding and
improving workplace dynamics.
3. Spurring innovative ideas.
– Creativity is a group process and CFT is a great way to create and pool
creative ideas together to gain edge from their competitors.
– When different minds of diverse skills & knowledge are brought together,
they think outside of the box to bring substantially better results.
– When people think in new ways, it helps them make smart / well calculated
risks and spur innovation and creativity.
 Benefits of CFTs
4. Exercising communication skills.
– Effective communication is a cornerstone of any team for successful
projects.
– Clear and concise communication encourages sharing of ideas
among the members of CFT and between CFTs.
5. Developing management skills.
– Managing a team of cross discipline experts doesn’t come naturally
to everyone, it should be polished by learning through experiences.
– When CFT is put together, one’s management skills are put to the
test, helping to develop and enhance the management skills.
6. Benefit from diversity.
– As it involves people from different areas, they understand each
other’s efforts and take advantage of their knowledge.
– Team members start sharing common goals and foster
understanding.
 Activities of Organizing
(3. Delegation)
• After a specific organizational hierarchy is established, the next step is
to work out written responsibility / directory of duties matrix, delegate
requisite authority and establish upward directed accountability needed
to achieve organizational objectives.
• The benefits of delegation are;
– Insight on one’s deliverables, expectation & role in the organization
– Distributes the work load and economize the work flow
– Clearly defines chain of command
– Improve quality and quantity of work performed
– Relieves senior manager for pursuing more important duties or gaining
more time for management work
– Make engineering manager knowledgeable about employee capabilities
– Grooms and prepare lower level managers to take charge in absence of
senior manager
– Develops leadership qualities
Delegation of Responsibility & Accountability

Example : Show complete directory of Duties set of an

aeronautical organization
 Delegation Matrix
Delegation requires skill and practice. Senior manager must be very clear
as what should be delegated and what should not be delegated.

Employee
can 1 3
cannot 2 4
cannot can

Engineering Manager

1 -- Employee
2 -- Neither (Engineering Manager, if it is must be done)
3 -- Employee
4 -- Engineering Manager
 Delegation Matrix
• Engineering Manger should not delegate following
problems or activities down below.
– Planning – creating plans within larger plans / objectives
– Resolving morale problems in a group
– Reconciling differences and conflicts
– Coaching and developing employees
– Reviewing performance of employees
– Completing confidential assignments / work given by the
superiors
 Guidelines for Effective Delegation
• Explain importance of assignment & check on his understanding & confidence
• Set goals, timelines or deadline. A list of short term goals is better than one
long term objective.
• Be reasonable. Goal setting should commensurate with employee capabilities
and resources provided.
• Make goals / targets a little challenging for employee growth & job satisfaction.
• Give employee leverage in selecting the method, unless the procedure has
already been specified
• Trust the employee and assign responsibilities that go with the job description.
• Provide commensurate authority and DM space and let employee accept
responsibility for his / her good or poor work (Engineering Manager remains
accountable to his superior for the delegated job)
• Review the performance of the employee periodically to put the job standard on
track. Give recognition for the good job
• Do not rush and take over in case of problems. Look for arranging more
training and time allocation, as required and if opportunity available.

Do not expect or want perfection, unless work requires so.

 Guidelines for Effective Delegation
• Overcome barriers in delegating responsibility
– Psychological --- fear or worry due to technical obsolescence of a
manager, very competent sub-ordinate, or shying off due to
competitive environment, etc
– Organizational --- organizational structure not well defined, unclear
responsibilities, obscure working relationship
– Lack of leadership abilities in oneself --
 Activities of Organizing
(4. Establishing working relationships)
• Establishing good working relationship between engineering manager
and employees, and between different groups within the organization is
fundamental.
– require considerable considerate behavior & empathy from the SENIORS
• It requires understanding of employee role within the organization and
manager’s conflict resolution abilities.
• For a specific project involving
persons of multiple departments,
the need for defining roles and
responsibilities is important for
avoiding conflicts and achieving
organizational objectives efficiently
and effectively.
 Activities of Organizing
(4. Establishing working relationships)
• Conflict arising is natural when different people interact, each
working in his domain of work, but pursuing common objective.
– Nature of conflict could be technical, operational, assignment of
responsibilities, emotional, political, ----

• Conflict resolution is a must at all tiers, inter and intra level, with
openness and fairness.
• In some occasions, conflicts may be resolved by dominance,
compromise, collaboration, etc.
• Effective resolution of a conflict promotes mutual respect and
trust, nurturing common interests to achieve success, focusing
on commitment to tasks, etc.
 Informal Organizations
• Beside the formal organizational structure which is set up to
define chain of command / hierarchy to achieve work
efficiency, there always exist informal organizations in
every set up. A few examples can be;
– Social. Employees having common interests, shared values and
beliefs
– Status. Employee tend to be drawn towards persons well known for
their technical skills, abilities, experience, networking abilities,
charisma, peer recognition,---
– Location. People tend to flow / move towards critical offices
• Informal organizations help in creating additional bonding
between the employees, encourages employee
participation, increases job satisfaction, etc.
 5. Allocating Resources
• Assessment and provision of appropriate resources is fundamental to
the organizing function of management
• Resources are anything required to perform designated tasks
 Humans (skilled, semi-skilled, interns, non-skilled), infra structure
(workshop space, office, workshop, machines, technology, etc),
money, time, etc
• Resource allocation should be just, fair and proportional to the work
required
• Appropriate relocation of resources during work to meet the ends,
targets, changing strategy, etc

No matter how good manager plans and organizes the work place,
provided resources become always less due to unpredicted
reasons, and therefore require continuous readjustment to
meet the target work / plan.
Quantitative Tools for
Management
 (Kepner-Tregoe DM & Analysis tool)

• This method is useful in a team environment where members

may argue needlessly for a specific option without spelling out
decision criteria
• This method forces decision makers to spell out all necessary
criteria and to assign weight factors to all sufficiency criteria
before making a decision.
• Chosen criteria must represent a mutually exclusive set of
criteria.
• By ranking options against each of the defined criteria, all
options are properly evaluated in a rational, equitable and
comprehensive manner.
 (Kepner-Tregoe DM tool – case study)

Bashir, manager of the test division, called Jamil, the group head of mechanical
testing, in his office and told him that there is a new opening for a manager of
product development position in the company. Product Development Division
has recommended him (Jamil) for the new opening and it is also agreed to by
the senior management. Jamil accepted the offering as it being a promotion to
a higher managerial position.
Bashir asked Jamil to name his successor from the three section heads working
under him in the mechanical testing group.
– Daud is the most experience, but he is quiet and does not communicate well. He
may have difficulty is selling testing services to others.
– Yasin is competent, but has made hasty decisions costing heavily to the group.
– Nasir is ambitious and aggressive, but has poor interpersonal skills.
• What are the choices?? Bring someone from outside or promote one of the
three employees.
• No suitable candidate with requisite work/technical experience could be
found from outside.
 (Kepner-Tregoe DM tool – case study)

• They decided to use Kepner-Tregoe method to come up with suitable

choice.
• They decided a necessary and sufficiency criteria and assigned relative
weighted factors (1-10).

Making a criteria for selection / appointment

Criteria Weight Factor

Minimum work/technical experience (10 years) R
Related Job Experience 10
Communication skills 8
DM abilities 6
Interpersonal skills 6
Total weighted score
 (Kepner-Tregoe DM tool – case study)

• They decided to use Kepner-Tregoe method to come up with suitable

choice.
• They decided a necessary and sufficiency criteria and assigned relative
weighted factors.

Making a criteria for selection / appointment

Criteria Weight Factor Daud Yasin Nasir
Minimum work/technical experience (10 years) R OK OK OK
Related Job Experience 10 10 8 6
Communication skills 8 5 10 10
DM abilities 6 10 5 10
Interpersonal skills 6 10 10 5
Total weighted score 260 250 230

Daud came out to be the winner.

 (Kepner-Tregoe DM tool – case study)
Selection / appointmentfor the post
Criteria Weight Factor Daud Yasin Nasir
Minimum work/technical experience (10 years) R OK OK OK
Related Job Experience 10 10 8 6
Communication skills 8 5 10 10
DM abilities 6 10 5 10
Interpersonal skills 6 10 10 5
Total weighted score 260 250 230
Bashir and Jamil discussed it further and made an refinement in the criteria by
considering a probability of improvement in the relative score of the identified
weakness one-year after the promotion of the individual.
Refining the criteria for selection / appointment for the post
Score without improving Probability of correcting Adjusted total score
shortcomings shortcomings
Daud 260 80 292 (=260+0.8x8x5)
Yasin 250 90 277 (=250+0.9x6x5)
Nasir 230 60 248 (=230+0.6x6x5)

Daud came out to be the winner again.