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1 Management Bacom2a

The primary functions of management are planning, organizing, leading, and controlling. [1] Planning involves setting goals and determining how to achieve them through strategic and tactical plans. [2] Organizing is deciding how to structure an organization to implement plans by assigning roles and allocating resources. [3] Leading inspires people to support plans through communication, building commitment, and encouraging performance.

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Lhymore Balinto
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138 views48 pages

1 Management Bacom2a

The primary functions of management are planning, organizing, leading, and controlling. [1] Planning involves setting goals and determining how to achieve them through strategic and tactical plans. [2] Organizing is deciding how to structure an organization to implement plans by assigning roles and allocating resources. [3] Leading inspires people to support plans through communication, building commitment, and encouraging performance.

Uploaded by

Lhymore Balinto
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Primary Functions of Management

LEARNING OUTCOMES
• Explain the primary functions of management.
• Differentiate between the planning, organizing,
leading, and controlling functions of management.
The key functions in the management process are connected, but not always linear.
Planning means defining performance goals for the
organization and determining what actions and resources
are needed to achieve the goals. Through planning,
management defines what the future of the organization
should be and how to get there.

• Strategic plans are long-term and affect the entire


organization. A strategic plan bridges the gap between
what an organization is and what it will become.
• Tactical plans translate strategic plans into specific
actions that need to be implemented by departments
throughout the organization. The tactical plan defines
what has to be done, who will do it, and the resources
needed to do it.
Example:

For instance, ThyssenKrupp AG decided to become an


elevator manufacturing and servicing company because
of increased competition from Chinese steel. The
management of the company set a goal of deriving the
majority of its revenue from elevator-related activities. To
do this, the management team made plans to create
partnerships or take over existing elevator companies.
The team devised plans to develop new human resources
and to acquire other material resources. The company
also had to divest existing steel-related resources to raise
capital for the new initiative. This example is a long-term
strategic plan that will take years to complete and require
many changes along the way. But it starts by defining a
goal and a preliminary path to achieve it.
Organizing

Once plans are made, decisions must be made


about how to best implement the plans.
The organizing function involves deciding how the
organization will be structured (by departments, matrix
teams, job responsibilities, etc.).
Organizing involves assigning authority and
responsibility to various departments, allocating
resources across the organization, and defining how the
activities of groups and individuals will be coordinated.
In the case of ThyssenKrupp AG, the management had to
determine how to support two very different sets of
activities if it were to achieve its long-term goal.

Management needed to continue steel production


activities to provide continuity of funds as the emphasis
gradually shifted to elevator production.

It also had to develop new skills and resources to build


the company’s elevator capabilities. A new organizational
structure was needed that could support both business
activities as one was downsized and the other built up.
Leading
Nearly everything that is accomplished in an organization is done by people. The best
planning and organizing will not be effective if the people in the organization are not willing to
support the plan.
Leaders use knowledge, character, and charisma to generate enthusiasm and inspire
effort to achieve goals. Managers must also lead by communicating goals throughout the
organization, by building commitment to a common vision, by creating shared values and
culture, and by encouraging high performance.
Managers can use the power of reward and punishment to make people support plans
and goals. Leaders inspire people to support plans, creating belief and commitment. Leadership
and management skills are not the same, but they can and do appear in the most effective
people.
It is very difficult to motivate people when plans involve radical change, particularly if
they include downsizing and layoffs.
Many people are naturally resistant to change. When the change means loss of jobs or
status, people will be very resistant.
At ThyssenKrupp, the labor unions vehemently opposed
the shift from steel production to elevator
manufacturing.

Although the people involved in the new business


functions were excited by the plans, people involved with
steel production felt abandoned and demotivated.

Management would have been wise to get union support


for its vision of the company’s new future.
Controlling
There is a well-known military saying that says no battle
plan survives contact with the enemy. This implies that
planning is necessary for making preparations, but when
it’s time to implement the plan, everything will not go as
planned. Unexpected things will happen. Observing and
responding to what actually happens is called controlling.

Controlling is the process of monitoring activities,


measuring performance, comparing results to objectives,
and making modifications and corrections when needed.
This is often described as a feedback loop, as shown in the
illustration of a product design feedback loop.
Controlling may be the most
important of the four management
functions.

It provides the information that


keeps the corporate goal on track.

By controlling their organizations,


managers keep informed of what is
happening; what is working and
what isn’t; and what needs to be
continued, improved, or changed.
Product design feedback loop
ThyssenKrupp had little experience in elevator
manufacturing when it was making plans. It was
developing new products and processes and entering
new markets. The management knew it could not
anticipate all the difficulties it would encounter. Close
monitoring as the plan progressed allowed the company
to make changes and state-of-the-art innovations that
have resulted in a very successful transition.
Who Directs Each Function?

Although these functions have been introduced in a particular order, it should be


apparent that the different activities happen at the same time in any one
organization. The control function ensures that new plans must be created.
Leaders often step up as needed when a crisis or unexpected bump demands
immediate action. All managers perform all of these functions at different times,
although a manager’s position or level in the organization will affect how much
of his or her time is spent planning as opposed to leading or to controlling.
https://courses.lumenlearning.com/suny-
principlesmanagement/chapter/primary-functions-of-
management/

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