LECTURE 6

THE FUNCTIONS OF MANAGEMENT

Definition: Management
The art of combining the resources of the organisation with the aim of achieving the goals of
the organisation.

THE FUNCTIONS OF MANAGEMENT

1. Planning
This is the process of defining goals for future organisational performance and deciding on
the tasks and resources needed to attain them.
All managers must plan, that is, setting out steps for the attainment of future organizational
objectives. It involves formulating the policies and programmes for the firm.

2. Organizing
This involves the bringing together of the factors of production, namely, land, labour, capital
and enterprise.
Organising usually occurs after planning. Organization reduces cost, time, chaos and
conflicts. Managers must obtain all the necessary tools, machinery and personnel for each
task and arrange all tasks so that they are done in the most efficient manner.
It involves:
● Designing structure
● Assigning duties and responsibilities to departments
● Determining the workflow
● Establishing schedules
● Providing the raw materials
● Technology and the related skills needed to accomplish the goals

3. Directing
Managers must guide subordinates by giving them instructions to perform the tasks assigned.

4. Delegating

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Delegating duties involves giving others (e.g. supervisors) the authority to have specific tasks
completed through the management of others. Therefore, supervisors will ensure that workers
complete tasks assigned. Delegation reduces the workload of the manager.

5. Controlling
Managers must continually measure the activities of subordinates, ensuring that all activities
conform to plan.

6. Coordinating
Managers must bring together all the various organizational tasks so that the organization
may function harmoniously.

7. Motivating
This is process by which workers are influenced to take the right action to get the task done.
It inspires workers to give of their best.

Theories of Motivation:
1. Maslow’s Hierarchy of Needs
2. Herzberg’s Two Factor Theory
3. Douglas McGregor Theory X and Theory Y

Maslow’s Hierarchy of Needs

Maslow divided needs into higher and lower order needs.
Lower Order Needs
Physiological (Bodily, Function) needs- relates to survival and physiological maintenance
of the human being. Eg. Food, Water Shelter, Clothing.
Safety Needs – refer to desire for freedom from threatening events and surroundings. Eg
Physical safety and security, continual employment, adequate flow of income, free from fear
of illness, expenses or loss of property.
Belonging or Social need (Love and Affection Needs) - this includes the need for
friendship, affiliation and interaction from others. Human beings are social creatures and
need to feel a sense of belonging.
Higher Order Needs
Esteem needs - the need to feel self-worth and self-respect. They also want respect from
others. Eg. a good reputation, prestige, status, fame, glory, recognition. Mangers use the

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difficulty of the job and the skills required to motivate workers. Motivation can be achieved
through publicly rewarding workers and bonuses.
Self-Actualising Needs – the need to reach ones full potential. Involves including employees
in the decision making process, challenging assignments. Problem solving can help with
achieving self-actualisation.

Frederick Herzberg Two Factor Theory

Motivational factors - builds high level of satisfaction but the absence will not cause
dissatisfaction. Examples are:
- Achievement
- Recognition
- Advancement
- Pleasure in the work itself
- Responsibility

Hygiene factors – necessary to maintain a reasonable level of satisfaction. Examples are:

- Adequate salary
- Job security
- Working conditions
- Status
- Clear company policies and administration
- Good interpersonal relationships with supervisors and peers

Mc Gregor Theory X and Y

Theory X-
Manager’s view subordinates as:
● Inherently dislikes work and must be coerced into performing adequately
● Ambiguous, irresponsible, lazy and not to be trusted
● Self-centred and indifferent to achieving the organisational goals
● Having to be controlled
● Desires job security and economic rewards above all others.

Theory Y-

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They are viewed as:
● Enjoying work.
● Seeking responsibility.
● Exercising self-direction and self-control to accomplish objectives to which they are
committed.
● Not wanting to be controlled.
● Having desires to satisfy social and self-actualising needs.

Characteristics of a Good Leader

A leader is someone who has been given authority over a group of individuals. His job is to
motivate the group to achieve the goals set out for it. Leadership is therefore about
influencing or inspiring an organized group towards the accomplishment of goals. Below are
the characteristics of a good leader.
Integrity
It is important for a leader to possess this quality as it makes them trustworthy. They are
perceived as honest and therefore command the respect of their subordinates.
Good communication skills
Leaders should be able to communicate effectively with persons at all levels of the
organization. Manager must pass down directives as well as listen to workers opinions
complaints and ideas. This will foster good working relations among leader and followers.
Intelligent
This is a very important characteristic for leaders. It refers to being rational and having good
judgment when making decisions. Leaders are decision makers and therefore need to be
intelligent. This characteristic also refers to shrewdness and therefore describes someone
who is smart, perceptive and wise.
Devoted and Committed
A leader must be a role model for others. He/she should therefore believe in the goals of the
group and motivate others to achieve it. His/her continuous hard work will portray dedication
and loyalty to duty.

TYPES OF LEADERSHIP

1. Autocratic

This type of leader makes all decisions and asks members only to be obedient in following
orders. He will give detailed instructions and closely supervise subordinates.

Advantage

Time is not wasted consulting with others to reach a decision.

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Disadvantage

Workers must comply with directives given by the leader and therefore the organization will
not benefit from workers initiative and innovative ideas

2. Democratic

A democratic leader allows the participation of subordinates in decision making. The leader
asks for progress reports at intervals instead of continuous close supervision.

Advantage

Discussion between management and workers leads an improved relationship.

Disadvantage

The variety of opinions to consider may slow down the decision making process.

3. Laissez-Faire

This type of leader will give minimum directives and allow maximum freedom for workers to
make decisions about completing their tasks.

Advantage

The firm will benefit from the initiative and innovation of workers.

Disadvantage

It may lead to chaos in the organization. This type of style can only be used with persons that
are very self- motivated and disciplined.

4. Charismatic Leader
Inspires and motivates through skills and personality.

COMMUNICATION
Communication – This is the transmission or relaying of information, ideas, opinions or
understanding from a person or group to another person or group.
What is the Communication Process?
● Sender
● Message
● Receiver
● The Channel (Medium)
● Feedback

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Strategies for Effective Communication
The sender’s strategies:
● Decide what exactly is to be communicated and who the receiver will be
● Choose the most appropriate medium for the message
● Identify any possible barriers to communication and take steps to overcome these
barriers
● Decide on the most appropriate type of feedback
● Continue the process but make the necessary changes if communication fails

The receiver’s strategies:

● Try to understand the message
● Identify any possible barriers to communication and take steps to overcome these
barriers
● Send the required feedback

Methods of Communication

1. Oral – This includes all types of spoken communication:

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 Examples Advantages Disadvantages
- Direct Speech - Direct contact - More difficult to control
- Meetings - Benefits from sight - May not provide
sound and physical adequate time to think
- Seminar proximity
- There might not be any
- Interviews - Allows for instant written record.
- Speeches feedback
- More persuasive

2. Written – This includes all things that are written:

Examples Advantages Disadvantages
- Memorandum - Provides written - Can be time consuming
documentary evidence.
- Company letter eg contract. - Can be expensive
- Manuals - Can be dispatched to - Getting instant feedback
persons far away may not be possible.
- Notice board
- Suggestion box - Can be used for complex
detailed message.
- Company newsletter or
bulletin - Can confirm, explain or
clarify oral messages.
- Minutes
- Annual reports

3. Visual – This includes all things which can be seen:

Examples Advantages Disadvantages

- Bar graphs - Demonstrates through a - May be difficult to
visual stimulus. interpret by itself
- line chart
- Simplifies oral and - Requires additional
- pie chart written communication skills of comprehension
- Flow chart and interpretation.
- May require time to
interpret

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 - May be expensive.

TYPES OF COMMUNICATION
Internal Communication- Communication that occurs within the organisation.
External Communication- Communication that occurs outside of the organisation
- Telecommunications
- Advertising
- Letter post
- Registered letters – offers proof of delivery for the sender by providing a receipt
signed by the receiver.
- Insurance
- Private boxes and post office bags
- Business reply service

Formal Communication -These are official methods approved by management.

These includes meetings, announcement on notices boards, memoranda, messages over
public address systems, interviews, performance appraisals, company magazines. etc.
Informal Communication -These are unofficial methods of communication.
These include: rumours and the grapevine, secret signs and gestures as well as casual
conversation between employees.

Barriers to Communication

1. Distortion of messages e.g. rumours or the grapevine can easily distort messages.
2. Inappropriate forms of transmission e.g. a notice of a formal meeting must be conveyed in
writing and not by word of mouth. If this type of meeting is not conveyed in writing it
may seem casual and unimportant.
3. Physical barriers e.g. faulty telephone connections, defects in mechanical or electronic
equipment, and poor postal services.
4. Information overload.
5. Specialized jargon used or technical language.