Tag: Functions

  • What are Levels of Management?

    What are Levels of Management?

    An enterprise may have different levels of management. Levels of management refer to a line of demarcation between various managerial positions in an enterprise. The levels of management depend upon its size, technical facilities, and the range of production. We generally come across two broad levels of management, viz. (I) administrative management (i.e., the upper level of management) and (II) operating management (i.e., the lower level of management). Administrative management is concerned with “thinking” functions such as laying down policy, planning and setting up of standards. Operative management is concerned with the “doing” function such as an implementation of policies and directing the operations to attain the objectives of the enterprise.

    But in actual practice, it is difficult to draw any clear-cut demarcation between thinking function and doing function. Because the basic/fundamental managerial functions are performed by all managers irrespective of their levels or, ranks. For instance, wage and salary director of a company may assist in fixing wages and salary structure as a member of the Board of Directors, but as head of wages and salary department, his job is to see that the decisions are implemented.

    The real significance of levels is that they explain authority relationships in an organization.

    Considering the hierarchy of authority and responsibility, one can identify three levels of management namely

    (I) Top management of a company consists of owners/shareholders, Board of Directors, its Chairman, Managing Director, or the Chief Executive, or the General Manager or Executive Committee having key officers.

    (II) Middle management of a company consists of heads of functional departments viz. Purchase Manager, Production Manager, Marketing Manager, Financial controller, etc. and Divisional and Sectional Officers working under these Functional Heads.

    (III) Lower level or operative management of a company consists of Superintendents, Foremen, Supervisors, etc.

    1) Top management: Top management is the ultimate source of authority and it lays down goals, policies and plans for the enterprise. It devotes more time on planning and coordinating functions. It is accountable to the owners of the business of the overall management. It is also described as the policy making group responsible for the overall direction and success of all company activities.

    The important functions of top management include:

    (A) To establish the objectives or goals of the enterprise.

    (B) To make policies and frame plans to attain the objectives laid.

    (C) To set up an organizational framework to conduct the operations as per plans.

    (D) To assemble the resources of money, men, materials, machines and methods to put the plans into action.

    (E) To exercise effective control of the operations.

    (F) To provide overall leadership to the enterprise.

    2) Middle management: The job of middle management is to implement the policies and plans framed by the top management. It serves as an essential link between the top management and the lower level or operative management. They are responsible for the top management for the functioning of their departments. They devote more time on the organization and motivation functions of management. They provide the guidance and the structure for a purposeful enterprise. Without them, the top management’s plans and ambitious expectations will not be fruitfully realized.

    The following are the main functions of middle management:

    (A) To interpret the policies chalked out by top management.

    (B) To prepare the organizational set up in their own departments for fulfilling the objectives implied in various business policies.

    (C) To recruit and select suitable operative and supervisory staff.

    (D) To assign activities, duties, and responsibilities for timely implementation of the plans.

    (E) To compile all the instructions and issue them to supervisor under their control.

    (F) To motivate personnel to attain higher productivity and to reward them properly.

    (G) To cooperate with the other departments for ensuring a smooth functioning of the entire organization.

    (H) To collect reports and information on performance in their departments.

    (I) To report to top management.

    (J) To make suitable recommendations to the top management for the better execution of plans and policies.

    3) Lower or operative management: It is placed at the bottom of the hierarchy of management, and actual operations are the responsibility of this level of management. It consists of foreman, supervisors, sales officers, accounts officers and so on. They are in direct touch with the rank and file or workers. Their authority and responsibility are limited. They pass on the instructions of the middle management to workers.

    They interpret and divide the plans of the management into short-range operating plans. They are also involved in the process of decision-making. They have to get the work done through the workers. They a lot various jobs to the workers, evaluate their performance and report to the middle-level management. They are more concerned with direction and control functions of management. They devote more time in the supervision of the workers.

  • Functions of Organization

    Functions of Organization

    First, you will understand What are Functions of Organizational; In order to produce and sell their product or service, most organizations will need to undertake six key functions.

    [perfectpullquote align=”right” cite=”” link=”” color=”” class=”” size=””]Design and Production,
    Finance,
    Human Resources,
    Sales and Marketing,
    Administration, and
    Research and Development.[/perfectpullquote]

    Each of the functions will need to work together so that the whole of the organization has the same aims and objectives. To achieve this communication across the various functions is the key activity. A starting point for this type of communication is the creation of a clear set of company objectives which each function is aware of. These objectives then need to be further broken down into specific objectives for each function. Regular reviews of firstly how each function is performing against its objectives and secondly how the company is performing against its overall objective should ensure that the whole company is pulling in the same direction.

    Now start What is Functions of Organization; The Following Six Types Organization Functions

    A. Determination of activities: It includes deciding and division of various activities required to achieve the objectives of an organization. The entire work is divided into various parts and again each part is sub-divided into various sub-parts. E.g. the purchase work may be divided into requisition of items, placing an order, storage etc.

    B. Grouping of activities: Identical activities are grouped under one individual or one department. The activities of sales such as canvassing, advertisements, and debt collection are grouped under sales department.

    C. Allotment of duties to specified persons: In order to ensure effective performance, the grouped activities are allotted to specified competent persons, specialized in their fields. Adequate staff members are appointed by them and are appropriately trained.

    D. The delegation of authority: Assignment of duties or allotment of duties to specified persons is followed by the delegation of authority. While delegating authority, responsibility is also fixed. E.g. the production manager may be delegated with the authority to produce the goods and fixed with the responsibility of producing the quality of goods.

    E. Defining relationship: When a group of persons is working together for a common goal, it becomes necessary to define the relationship between them in clear terms. Each person has to know as to who is his superior, from whom he has to receive orders, and to whom he is answerable. Each superior must know what authority he has and over which persons.

    F. Co-ordination of various activities: The delegated authority and responsibility should be coordinated by the chief managerial staff. There must be a separate and responsible person to see whether all the activities are going on to accomplish the objectives of the organization or not.

    Notes: Maybe You will read it; The definitions of all the seven Processes of Scientific Management; Planning, Organizing, Staffing, Directing, Coordinating, Motivating, Controlling. You will be reading this post about; What are Functions of Organization, do you read it about Organization.

  • What are the Features of Controlling Functions?

    What are the Features of Controlling Functions?

    Features of Controlling Functions; Controlling is the last function of the management process which is performed after planning, organizing, staffing and directing. On the other hand, management control means the process to be adopted in order to complete the function of controlling.

    Here are explain; What are the Features of Controlling Functions?

    Following are the characteristics of controlling functions of management

    • Controlling is an end function: A function which comes once the performances are made in-Conformities with plans.
    • It is a pervasive function: which means it is performed by managers at all levels and in all type of concerns.
    • Controlling is forward-looking: because effective control is not possible without past being controlled. Control always look to the future so that follow-up can make whenever to require.
    • Controlling is a dynamic process: since controlling requires taking reviewal methods, changes have to be made wherever possible.
    • It is related to planning: Planning and Controlling are two inseparable functions of management. Without planning, controlling is a meaningless exercise and without controlling, planning is useless. Planning presupposes controlling and controlling succeeds in planning.

    Controlling has got two basic Process of Controlling:

    • It facilitates coordination.
    • It helps with planning.

    Also, know about; What is Controlling?

    Controlling consists of verifying whether everything occurs in conformities with the plans adopted, instructions issued and principles established. Control ensures that there is effective and efficient utilization of organizational resources so as to achieve the planned goals. Controlling measures the deviation of actual performance from the standard performance discovers the causes of such deviations and helps in taking corrective actions.

    What are the Features of Controlling Functions
    What are the Features of Controlling Functions? #Pixabay.

    Lets reading Definitions about Controlling; According to Brech,

    “Controlling is a systematic exercise which is called as a process of checking actual performance against the standards or plans with a view to ensuring adequate progress and also recording such experience as is gained as a contribution to possible future needs.”

    According to Donnell,

    “Just as a navigator continually takes reading to ensure whether he is relative to a planned action, so should a business manager continually take reading to assure himself that his enterprise is on the right course.”

    According to Henry Fayol,

    “Control consists of verifying whether everything occurs in conformity with the plan adopted, the instructions issued, and the principles”.

    Important Features of Controlling:

    Features of controlling could describe in the following analytical manner:

    • The unique feature of controlling, and.
    • Other features of controlling.

    Now, explain each;

    Unique Feature of Controlling:

    The unique feature of control is that it is the “central-tendency point” in the performance of managerial functions i.e. a point where all other managerial functions come together and unite with one another. This is so because, while contemplating corrective action, sometimes it might be necessary to modify plans or effect changes in the organizational setting. At some other times, changes in the staffing procedures and practices might be thought fit by management for remedial reasons.

    While at some junctures, management might plan to effect changes in the directing techniques of leadership, supervision or motivation, to bring performance on the right track. That is to say, that the remedial action comprised in the controlling process might embrace one or more managerial functions. Hence, controlling is designated as the central tendency point, in management theory.

    Other Features of Controlling:

    Some important basic features of controlling could state as under;

    • Controlling makes for a bridge between the standards of performance and their realistic attainment.
    • Planning is the basis of controlling; in as much as, the standards of performance are laid down in plans.
    • Controlling is a pervasive management exercise. All managers, at different levels in the management hierarchy, perform this function, in relation to the work done by subordinates under their charge-ship.
    • As controlling is the last managerial function, it is true to assert that it gives a finishing or final touch to the managerial job, at a particular point of time.
    • Controlling is based on information feedback i.e. on the reports on actual performance done by operators. In specific terms, it could say that information is the guide to controlling; as without information feedback made available to management, analysis of the causes of deviations and undertaking remedial action are not possible.
    • Action is the soul of controlling. In fact, controlling would be a futile activity; if after analyzing deviations – suitable remedial action is not undertaking by management, to bring performance, in conformity with plan standards.
    • Controlling is a continuous managerial exercise. It has to undertake on a regular and continuous basis, throughout the currency of the organizational operational life.

    Significances of Controlling:

    The significances of the controlling function in an organization are as follows:

    • Accomplishing Organisational Goals: Controlling helps in comparing the actual performance with the predetermined standards, finding out deviation and taking corrective measures to ensure that the activities are performing according to plans. Thus, it helps in achieving organizational goals.
    • Judging Accuracy of Standards: An efficient control system helps in judging the accuracy of standards. It further helps in reviewing & revising the standards according to the changes in the organization and the environment.
    • Improving Employee Motivation: Employees know the standards against which their performance will be judged. Systematic evaluation of performance and consequent rewards in the form of increment, bonus, promotion, etc. motivate the employees to put in their best efforts.

    Boundaries of Controlling:

    The defects or boundaries of controlling are as following:

    • Difficulty in Setting Quantitative Standards: It becomes very difficult to compare the actual performance with the predetermined standards if these standards are not expressing in quantitative terms. This is especially so in areas of job satisfaction, human behavior and employee morale.
    • No Control on External Factors: An organization fails to have control of external factors like technological changes, competition, government policies, changes in the taste of consumers, etc.
    • Resistance from Employees: Often employees resist the control systems since they consider them as curbs on their freedom. For example, surveillance through CCTV (closed-circuit television).

  • Functions of Management by Henri Fayol

    Elements of Management by Henri Fayol

    Writer’s regarded the elements of management as the functions of management. He said that management should be viewed as a process consisting of five elements. You will Know about “14 Principles of Management by Henri Fayol” & also read “Nature and Characteristics of Management”.

    Fayol’s five Elements They are;

    • Planning.
    • Organising.
    • Commanding.
    • Coordination.
    • Controlling.

    He has regarded planning as the most important managerial function. Creation of organization structure and commanding function is necessary to execute plans. Coordination is necessary to make sure that everyone is working together, and control looks whether everything is proceeding according to the plan.

    These are Fayol’s five functions of management;

    Planning:

    Planning is looking ahead. According to Henri Fayol, drawing up a good plan of action is the hardest of the five functions of management. This requires an active participation of the entire organization. With respect to time and implementation, planning must be linked to and coordinated on different levels. Planning must take the organization’s available resources and flexibility of personnel into consideration as this will guarantee continuity.

    Organizing:

    An organization can only function well if it is well-organized. This means that there must be sufficient capital, staff, and raw materials so that the organization can run smoothly and that it can build a good working structure. The organizational structure with a good division of functions and tasks is of crucial importance. When the number of functions increases, the organization will expand both horizontally and vertically. This requires a different type of leadership. Organizing is an important function of the five functions of management.

    Commanding:

    When given orders and clear working instructions, employees will know exactly what is required of them. Return from all employees will be optimized if they are given concrete instructions with respect to the activities that must be carried out by them. Successful managers have integrity, communicate clearly and base their decisions on regular audits. They are capable of motivating a team and encouraging employees to take initiative.

    Coordination:

    When all activities are harmonized, the organization will function better. Positive influencing of employees behavior is important in this. Coordination, therefore, aims at stimulating motivation and discipline within the group dynamics. This requires clear communication and good leadership. Only through positive employee behavior management can the intended objectives be achieved.

    Controlling:

    By verifying whether everything is going according to plan, the organization knows exactly whether the activities are carried out in conformity with the plan.

    Control takes place in a four-step process:

    • Establish performance standards based on organizational objectives.
    • Measure and report on actual performance.
    • Compare results with performance and standards.
    • Take corrective or preventive measures as needed.

    Each of these steps is about solving problems in a creative manner. Finding a creative solution is often more difficult than discovering what the problem is than making choices or the decision-making process. It starts with creating an environmental analysis of the organization and it ends with evaluating the results of the implemented solution.