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Module 02 Managerial Functions

The document discusses the key managerial functions of planning, organizing, leading, and controlling. It focuses on explaining the planning and organizing functions in detail. For planning, it covers setting goals, strategies, and action plans. For organizing, it describes determining tasks and roles, establishing reporting relationships, and allocating resources through different organizational structures.

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KHADAR DAHIR
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0% found this document useful (0 votes)
28 views

Module 02 Managerial Functions

The document discusses the key managerial functions of planning, organizing, leading, and controlling. It focuses on explaining the planning and organizing functions in detail. For planning, it covers setting goals, strategies, and action plans. For organizing, it describes determining tasks and roles, establishing reporting relationships, and allocating resources through different organizational structures.

Uploaded by

KHADAR DAHIR
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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MODULE MANAGEMENT

FUNDAMENTALS
MANAGERIAL
FUNCTIONS
SAED A MOHAMED
Course Modules
Module 01: Introduction Management
Module 02: Managerial Functions
Module 03: Managerial Context
Module 04: Managing Operations
Module 05: Managing Projects
Module 06: Managing Logistics
Module 07: Managing Marketing
Module 08: Managing Finance
Module 09: Managing People
Module 10: Managing Performance
Module 11: Managing Strategies
Module 12: Managing Communications
• Studying this module should provide you with
the management knowledge needed to:
➢ explain the four primary functions of management:
planning, organizing, leading, and controlling.
➢ explore the planning function, which involves the
setting goals, developing strategies, and creating

Module action plans to achieve organizational objectives.


➢ explore the organizing function, which involves

Objectives arranging resources, allocating tasks, and


establishing relationships to facilitate goal attainment.
➢ examine the leading function of management, which
involves influencing, motivating, and guiding
employees to achieve desired outcomes.
➢ explain the controlling function, which involves
monitoring performance, comparing it with standards,
and taking corrective actions when necessary.
• Managerial functions refer to the key activities
that managers perform to achieve organizational
goals and ensure the efficient operation of a
business or an organization.
1. Planning: Setting goals, defining strategies, and
Managerial outlining the steps necessary to achieve them.
Organizing: Structuring and arranging resources,
Functions
2.
tasks, and roles to facilitate goal attainment.
3. Leading: Influencing and motivating individuals or
teams to work towards the organization's
objectives.
4. Controlling: Monitoring progress, comparing it
against predetermined standards, and taking
corrective actions when necessary.
• Planning function involves:
➢ settingorganizational goals,
➢ determining the best course of action to
achieve those goals, and
➢ developing a comprehensive strategy.
Planning • It includes defining objectives, establishing
Functions tasks, allocating resources, and creating
timelines.

• Planning helps managers anticipate future


needs and challenges and provides a
roadmap for decision-making and
resource allocation.
• Well-defined goals provide clarity, focus, and a
roadmap for achieving success.
➢ Mission: the mission statement defines the organization's
core purpose,
➢ Vision: vision statement outlines its long-term aspirations.

Planning ➢ SMART Goals: goal should be clear, quantifiable,


attainable, aligned with the organization's mission and
vision, and have a defined timeline.
Functions • Specific, Measurable, Achievable, Relevant, and Time-bound.
➢ SWOT Analysis: this assessment helps identify internal
capabilities and external factors that may influence goal
setting.
• Strengths, Weaknesses, Opportunities, And Threats
➢ KPIs: Define specific metrics or KPIs that will be used to
measure progress towards each goal.
• Key Performance Indicators (KPIs)
EXAMPLE -PLANNING FUNCTIONS
• A marketing manager working for a retail company is
responsible for planning a promotional campaign for a new
product launch.
• The manager sets the objective of increasing sales by 20%
within three months of the product launch.
• They formulate a detailed marketing plan, which includes
determining the target audience, selecting appropriate
marketing channels, allocating the budget for advertising
and promotions, and creating a timeline for executing
different marketing activities.
• Organizing involves designing the
organizational structure and allocating
resources to implement the planned
activities.
• Organizing Functions includes
Organizing ➢ determining the tasks and responsibilities of
Functions individuals or teams,
➢ establishing reporting relationships, and
➢ creating coordination mechanisms.
• Organizing ensures that the right people
are in the right positions and that
resources are allocated effectively.
• Organizational structure refers to the way
an organization is designed, including
how tasks, roles, and responsibilities are
divided, coordinated, and controlled
Organizing within the organization.

Functions • It determines the


(Structure) ➢ reporting relationships,
➢ communication channels, and
➢ overall hierarchy within the organization.

• Here are some common types of


organizational structures:
• Functional Structure:
➢ Ina functional structure, the organization is
divided into departments based on specific
functions or areas of expertise.
Organizing ➢ The design may be marketing, finance,
Functions operations, and human resources.

(Structure) ➢ Each department is headed by a manager,


and employees with similar skills and roles
are grouped together.

➢ This structure facilitates specialization and


efficiency within each functional area.
• Divisional Structure:
➢A divisional structure groups employees
based on geographic locations, specific
products, services or customer segments.
Organizing ➢ Each division operates as a separate unit
Functions with its own functions, such as marketing,
finance, and operations.
(Structure) ➢ Divisionalstructures are often used in large
organizations with diverse product lines or
multiple locations, allowing for more focused
decision-making and flexibility.
• Matrix Structure:
➢ The matrix structure combines elements of
both functional and divisional structures.

➢ Ina matrix structure, employees are assigned


Organizing to both functional departments and project
Functions teams.

(Structure) ➢ Thisallows for a dual reporting relationship,


where employees report to both their
functional manager and the project manager.

➢ Matrix structures are commonly used in


organizations that work on complex
projects or have multiple product lines.
• Flat Structure:
➢A flat structure minimizes hierarchical
levels and promotes a more decentralized
decision-making process.
Organizing ➢ There are fewer layers of management, and
Functions employees have more autonomy and
responsibility.
(Structure) ➢ This structure facilitates quick
communication, faster decision-making, and
a more collaborative work environment.
• Allocating resources effectively is crucial
for organizations to optimize their
operations and achieve their objectives.

Organizing • Resources can include


Functions ➢ financialcapital,
➢ human capital,
(Resource) ➢ equipment, technology,
➢ time, and
➢ other assets.
• Here are some key steps to consider when
allocating resources:
• Identify objectives and priorities:
➢ Determine which areas or projects are most
critical and align resource allocation decisions
accordingly.

Organizing ➢ Consider the strategic goals, customer demands,


and market conditions to prioritize resource
Functions allocation.
• Assess resource availability:
(Resource) ➢ Evaluate the resources currently available to your
organization such as: financial resources,
personnel, equipment, and other necessary
assets.
➢ Understand the capacity and limitations of each
resource to make informed allocation decisions.
• Conduct resource analysis:
➢ Analyze the resource requirements of different
projects, departments, or initiatives.
➢ Determine the specific needs and demands of each
area, including the skills and expertise required,
Organizing equipment needs, and timelines.
➢ This analysis will help you identify any resource gaps
Functions or imbalances.
• Allocate based on strategic fit:
(Resource) ➢ Allocate resources based on their strategic fit with the
objectives and priorities of your organization.
➢ Consider how each resource can contribute to
achieving the desired outcomes.
➢ Allocate resources to projects or areas that align
closely with your strategic goals and have the
potential for high impact.
• Prioritize high-impact projects:
➢ Focus your resources on projects or initiatives that
can generate the most significant value or impact.
➢ Identify key projects or areas that align with your
organization's strategic objectives and have a higher
Organizing potential return on investment.
• Balance resource distribution:
Functions ➢ Ensure a balanced distribution of resources across

(Resource) ➢
different departments or functions.
Avoid overloading certain areas while neglecting
others.
➢ Consider the resource needs of each department or
project and allocate resources in a way that supports
overall organizational effectiveness and efficiency.
EXAMPLE -ORGANIZING FUNCTIONS
• The CEO of a software development company decides to
restructure the organization to improve efficiency.
• They divide the company into different departments based on
functions such as development, quality assurance, and customer
support.
• The CEO assigns managers to each department and delegates
specific tasks and responsibilities to individual employees.
• They establish clear communication channels and reporting
hierarchies to ensure smooth coordination among different
departments.
•Leading, is the process of influencing
and motivating employees to achieve
organizational goals by
➢ guiding and directing workers,
Leading ➢ providing support,
➢ resolving conflicts, and
Functions ➢ promoting teamwork.

•Effective leadership inspires


employees, fosters a positive work
culture, and encourages high
performance.
Leader

Leading Change
Key
Followers

Elements
Elements of
Leadership

Influence Objectives
•Directing (S1):
➢ Leader provides clear instructions and
closely supervises their team members.

Leading ➢ Leaders make decisions and communicate


Functions them to their team, with little input from team
(Styles) members.

➢ Directingis used when team members are


inexperienced or when tasks require specific
guidance to ensure accuracy and efficiency.
•Coaching (S2):
➢ Leaders provide guidance, support, and
feedback to help their team members improve
their performance.
Leading
➢ Leaders listening actively, asking questions,
Functions and providing constructive criticism.
(Styles)
➢ Itis often used when team members have
some level of knowledge and experience
but still require guidance to reach their full
potential.
• Supporting (S3):
➢ Leaders provide support, encouragement, and
resources to their team members by allowing them
to make decisions and take ownership of their work.
Leading ➢ Leadersfoster a positive and empowering work
Functions environment, where team members feel trusted and
valued.
(Styles)
➢ Supporting is often used when team members have
a high level of competence and motivation,
allowing them to actively contribute to the decision-
making process.
• Delegating (S4):
➢ Leaders delegate decision-making authority to
their team members by allowing them to take
ownership and be accountable for their work.
Leading ➢ Leaders largely trust their team members by
providing support guidance, and resources when
Functions needed, to complete their assignments
independently.
(Styles) ➢ Delegating is often used when team members have
a high level of competence and experience,
➢ Its used when the leader wants to foster their
development and promote autonomy.
LEADING STYLES
HIGH
Supporting (S3) • Coaching (S2)
For people with: For people with:
• High Competence • Some Competence
• Var. Commitment (D3) • Some Commitment (D2)
BEHAVIOR
DIRECTIVE

Delegating (S4) • Directing (S1)


For people with: For people with:
• High Competence • Low Competence
LOW

• High Commitment (D4) • High Commitment (D1)

SUPPORTIVE
LOW HIGH
BEHAVIOR
EXAMPLE -LEADING FUNCTIONS
•A team leader in a manufacturing company is responsible
for leading a group of production workers.
•The team leader regularly communicates with the
employees, provides them with feedback, and motivates
them to meet production targets.
•They encourage collaboration and teamwork among the
team members, resolve any conflicts that arise, and serve
as a role model by demonstrating a strong work ethic and
positive attitude.
• Controlling involves monitoring
performance, comparing it with
established goals, and taking corrective
actions when necessary by
➢ settingperformance standards,
Controlling ➢ measuring actual performance,

Functions ➢ analyzing deviations, and


➢ implementing adjustments.
• Controlling helps managers ensure that
➢ activitiesare on track,
➢ identify areas for improvement, and
➢ maintain organizational effectiveness.
• The primary managerial controlling functions
include:
➢ Set Performance Standards: that define what is
expected in terms of quality, quantity, time, and
cost.
➢ Appraise Performance: assess actual performance
Controlling against those standards.
➢ Analyze Deviations: analyze the root causes and
Functions reasons behind them.
➢ Take Corrective Actions: change the processes,
reallocate resources, provide additional training or
support to employees, or revise goals and plans.
➢ Evaluate Outcomes: regularly evaluate the
effectiveness of the corrective actions taken and
monitor the progress towards closing performance
gaps.
EXAMPLE -CONTROLLING FUNCTIONS
• A project manager overseeing a construction project regularly
monitors the project's progress.
• They compare the actual timeline and budget with the planned
schedule and cost estimates.
• If they identify any deviations or delays, they take corrective
actions, such as reallocating resources, revising the project plan,
or implementing strategies to expedite the progress.
• The project manager ensures that the project stays on track and
meets the predefined objectives.
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