Q.1 “Today managers need to perform various functions”: Elaborate the statement Managers create and maintain an internal environment, commonly called the organization, sothat others can work efficiently in it. A manager’s job consists of planning, organizing, directing,and controlling the resources of the organization. These resources include people, jobs or positions, technology, facilities and equipment, materials and supplies, information, and money.Managers work in a dynamic environment and must anticipate and adapt to challenges.The manager looks after more than one function.
Therefore, managerial practices usedsuccessfully in big firms cannot be blindly used in small-scale units. Basic managerial functionsin large and small business are the same. But the manner in which these functions should becarried out can be different.Managing starts with planning. A manager with a definite and well defined plan has morechances of success than another who tries to start an enterprise without planning. According toKillen” planning is the process of deciding in advance what is to be done‚who is to do it‚how it isto be done and when it is to be done’’. Planning involves thinking and decision and is, therefore,called a logical process. Planning is a continuous process as changes in plans have to be madefrom time to time to take care of changing environment. Many a times, a vague approach isadapted to planning in a small firm.
There is a false impression that small firms areuncomplicated and do not require planning. The small-scale manager does not want to engagehis employees in the planning process due to the desire to keep the secrets with him. Personalaccountability for results, lack of expert staff and not having planning skills are other major obstacles to planning in small firms. The owner or manager of a small enterprise is too involvedin day-to-day operation to try planning before commencing actual operation. But they need pre-planning most because small firms have limited resources to conquer their upcoming problemand cannot afford to finance losses that can take place while adjusting to unanticipatedhappenings/changes.An manager needs an enterprise which can achieve the business objectives.
During thefunction of organizing he leads human resources to successful completion of the project,arranging the functions and activities into different levels in the organization structure, thusfacilitating the assignments of personnel according to their capabilities, skills and motivation.According to Peter F. Drucker the process of organizing consists of three steps – activitiesanalysis, decisions analysis and relation analysis.(i). Activities Analysis: It consists of the following:a) Determining the main functions for achieving the objectives of the firm.b) Various sub-functions in each major function.c) Amount of work in each major function and its sub-function.d) The position required to perform the activities.(ii) Decisions Analysis: It consists of the following:a) Choosing the basis of departmentalization so that functions could be grouped intospecialized units. Generally, functional departmentation is appropriate for small-scaleunits. Customers, Products and territories are other important base of departmentalization.b) Choosing the type of organization structure so that departments are incorporated into aformal structure.
MBA Sem-IManagement Process and Organizational Behavior Subject code MB0022 (iii) Relations Analysis: The authority, responsibility and accountability of every position and itsrelationship with other positions are clearly defined. Various positions are manned with personshaving the necessary education, training, experience and other qualifications.To obtain best possible benefit from each employee it is necessary to delegate functions as far-down in the organization as possible. Owners of small firms are often reluctant to delegatingauthority to their employees even though they expect them to do all functions allocated to themthat require authority. For effective completion of tasks, it is necessary that responsibilityaccompanies the necessary authority.
In directing a manager has to supervise, guide, lead and motivate people so that they canachieve set targets of performance. In the process of directing his subordinates, a manager ensures that the employees fulfill their tasks according to the set plans. Directing is theexecutive function of management because it is concerned with the execution of plan andpolicies.
Directing commences organized action and sets the whole organizational machineryinto action. It is, therefore, the life giving function of an organization. This is the area where themastery of the art and science of management is put to test. An manager’s leadership styledetermines the work atmosphere and culture of the organization. Above all, he must motivateemployees by setting a good example, setting practical targets of performance and providingsatisfactory monetary and non- monetary benefits.In directing a manager has to perform the following tasks:(a) Issuing orders and instructions(b) Supervising workers(c) Motivating i.e. inspiring to work efficiently for set objectives(d) Communicating with employees regarding plans and their implementation.(e) Leadership or influencing the actions or employees.
Controlling is the process of ensuring that the organization is moving in the desired directionand that progress is being made to wards the achievement of goals.The answer to a profitable organization is the skill of the owner or manager to controloperations. He has to establish standards of performance, procedures, goals and budgets. Withthese guides, he supervises job progress, workers performance and the financial condition of the business. The controlling function of the owner manager includes:Setting of standards: – Control presumes the existence of standards against which actual resultsare to be evaluated. Standards can not control on their own but they are the targets againstwhich actual performance can be measured.
Therefore they should be set clearly andaccurately. They should be precise, adequate, and feasible.Measurement of actual performance: – The actual performance is measured and evaluated incomparison with the set standards. Preferably measurement should be such that variation maybe identified in advance of occurrence and prevented by suitable action. Where work involved isof quantitative nature measurement of performance is not difficult. But when the work is notquantifiable measurement becomes difficult. Periodical reports test checks and audits arehelpful in precise measurement of performance.
MBA Sem-IManagement Process and Organizational Behavior Subject code MB0022 Analysis of variances: – Comparison of actual performance with standards will reveal variation.Variations are analysed to identify their cause and their impact on the organization. Correctiveaction can be possible only where the causes of the problem spots have been identified.Clarification may be called for sudden variation.Taking corrective action: – Control means action on the basis of measurement and evaluation of results. Wherever possible self- determining device should be used for bringing back actualresults in line with the standards. Standards should be revised wherever necessary. Other stepsto prevent deviations can be re-organization, improvements in staffing and directions etc. Thereal meaning of control lies in the commencement and follow-up of remedial action. At thisstages control unites with planning.