Functions of management

🔹 System Approach of Planning

The System Approach of Planning divides the planning process into 4 Phases:

1. Objectives – Clearly defined goals or targets that the organization intends to achieve.
2. Policies – General guidelines that govern decision-making.
3. Plans – Specific actions to achieve objectives within a defined timeframe.
4. Procedures – Detailed, step-by-step instructions for recurring activities.

🔸 Types of Planning;

Contingency Planning; It involves preparing for future uncertainties or unexpected changes by identifying potential problems and developing alternative solutions in advance.

• Prepares the organization for unexpected events.
• Also called “What-if planning”.
• g. Backup power plan in case of system failure.

 Managerial Planning (Micro-Level Planning); Focuses on integrating and managing resources (men, materials, money, machines) efficiently to meet the organization’s objectives at the unit or department level.

Decision Making – Core of Planning

Decision-making is the central activity of planning and refers to selecting the best course of action among alternatives.

• The ability to make quick and sound decisions is termed Social Insight.
• Delegation: The vesting of decision-making authority in a subordinate by a superior.

Steps in Decision-Making Process

1. Recognizing the problem
2. Analyzing the problem
3. Generating alternatives
4. Evaluating alternatives
5. Choosing the best alternative
6. Implementing and verifying the decision

Types of Decision-Making

Organizing; “Establishing an intentional structure of roles for individuals in an organization” — (SRF 2017)

🔹 Principles of Organizing (by Marshall)

1. Unity of Command – One subordinate should receive orders from one superior only.
2. Scalar Chain – Line of authority from top to bottom.
3. Span of Control – Number of subordinates a manager can effectively supervise.
   🔹 Wide span is more effective with clear policies and experienced personnel.

Delegation of Authority

• Conferring authority from superior to subordinate to carry out assigned duties effectively.
• Assigning responsibility + granting authority = Accountability
• Leads to empowerment, specialization, and efficiency

Staffing; “Staffing is the process of selecting, developing, and maintaining personnel to fulfill organizational goals.”

🔹 Activities Under Staffing

1. Recruitment
2. Promotion
3. Separation

Steps in Staffing:

📌 Note: Staffing bridges the gap between Organizing and Controlling.

• Recruitment Process

1. Identify vacancy
2. Prepare job description
3. Advertise vacancy
4. Manage response
5. Shortlist applications
6. Arrange interviews
7. Conduct interviews and make selection

• c) Selection; Choosing individuals with the right qualifications and aptitude.
• d) Training and Development (ARS Mains 2016); Enhancing employees’ skills and preparing them for greater responsibilities.
• e) Placement; Assigning the right person to the right job at the right time.
• f) Promotion; Movement within the organization to higher responsibilities and authority.
• g) Performance Appraisal; Systematic evaluation of an employee’s performance and potential for growth.

 Staffing supports leading and controlling and is closely linked with organizing.

Directing; “Directing involves guiding, supervising, motivating, and leading subordinates to achieve organizational goals.”

Directing is the heart of management functions.

🔹 Elements of Directing

1. Leadership
2. Motivation
3. Supervision
4. Communication

Coordinating; “The process of harmonizing the activities and efforts of different departments and individuals toward a common goal.”

It involves integration and synchronization to avoid conflicts and duplication of work.

Reporting; “Keeping higher authorities and subordinates informed through records, research, and inspection.”

• Reporting helps in controlling and tracking progress.
• It is an integral part of budgetary and extension programs.

💰 Budgeting; “The formulation of plans for a given future period in numerical terms.”

Definition of Budget: A statement of expected results expressed in monetary or numerical terms for a specific period.

Budgeting as a Planning Tool; It is the principal instrument of planning, enabling resource allocation based on past and future projections.

🔹 Types of Budgeting Approaches:

Summary Table: Core Management Functions and Key Aspects