Chapter Managerial Functions

2 AnOverview

CHAPTER OUTLINE

2.1 Inter-Relationship of Managerial Functions

2.2 Managerial and Operative Functions
2.3 Managerial Functions and Managerial Levels
2.4 Brief Description of Managerial Functions
2.5 Roles of a Manager
2.6 Levels of Management
2.7 Skills of a Managers
2.8 Managerial Competencies

In the previous chapter, management was defined as a process. The process of

consists of several inter-related activities. These activities or elements are known as management
the functions
of management. A function is an activity that can be identified and clearly
distinguished from
other activities. There is no universally acceptable classification of managerial
Different authorities on the subject have given different classification of functionsfunctions.
which a
manager has to perform. They have given different names of the same functions of management.
Henry Fayol described them as forecasting, planning, organising, commanding, coordinating
and controlling. Lawrence Appley puts planning, executing and controlling. R.C. Davis identifies
planning, organising and controlling. According to him, command and coordination facilitate
control and should, therefore, be considered a part of it. E.F.L. Brech includes
planning,
motivating, coordinating and controlling among management functions. Louis Allen describes
planning, coordinating, motivating, communicating and organising. George Terry mentions
planning, organising, actuating and controlling. J.L. Massie states desision-making, organising,
slaffing planning, controlling, communicating and directing. Lyndall Urwick divides
management
2.2 Management: Principles and Applications

into forecasting. planning, organising, commanding and coordination, investigation, research.

communication and control. According to James Lundy. management is a task of planning.
coordinating, motivating and controlling the efforts of others towards a specific objective.
Ernest Dale has identified planning, organising, staffing, directing, controlling. innovation and
representation. Newman and Summers put them as planning, organising, leading and controlling.
Luther Gullick has given a catchword 'POSDCORB' which stands for initials of planning.
organising. staffing. directing, coordinating, reporting and budgeting. Some writers have also
mentioned decision-making, executing, actuating, etc. as the functions of management.
Thus, there is a confusion regarding the functions of management. According to Koontz and
o'Donnell, "The most useful method of classifying managerial functions is to group them
around the activities ofplanning, organising, staffing. directing and controlling. It is not possible
in practice toslice allmanagement functions neatly into these categories,since the functions
tend to coalesce. However, this classification is ahelpful and realistic tool for analysis and
understanding."
The various functions mentioned by different experts may be classified into these five categories
as follows:

Table 2.1 AClassificationof Managerial Functions

Function Sub-function

Planning Forecasting. decision -making, establishing objectives, policy-making,

programming, scheduling, budgeting, strategy formulation, problem
solving, setting procedures, innovation, research, investigation, etc.
Organising Functionalisation, divisionalisation, departmentation, assignment of
duties, delegation of authority, decentralisation, activity grouping, task
allocation, etc.
Staffing Manpower planning, recruitmnet, selection, orientation, training.
development, placement, compensation, integration, maintenance, ctc.
Directing or Execution or implementation of plans, guiding, counselling, supervision
Commanding or or overseeing, motivationor activating, communication, leadership, etc.
Actuating
Setting standards, recording, measurement, reporting, review or appraisal
Controlling or evaluation, corrective action, etc.

2.1 INTER-RELATIONSHIP OF MANAGERIAL FUNCTIONS

In practice, it is not always possible to separate clearly the various functions of management
from one another. The different functions are so intertwined with each other that none of them
can be performed without the others. Every function contains elements of other functions. As
manager develops plans. he is also involved in organising to carry out the plans and the
I. Principles of Management. pp. 47-48.
 ManagerialFunctions-An Overviey
2.3
methods of' control. Planning provides standards for control, organising hclps to determine who
should take corective action and directing sets the tone for the level of achievement, organisation
structure must provide for cllective direction and control. Each function blends into the other
and provides input for the other functions. Thus, the management process (sum total of
managerial functions) is a composileand circular process as shown in Figure 2.1.
Planning

Controlling Organising
Management
Process

Dirèecting Staffing

Fig. 2.1:TheManagement Process

The process of management is continuous. Plans beget subordinate plans, old plans have to be
moditied and new ones have to be developed. Logically, planning precedes other functions but
in reality a manager performs various functions simultaneously. Therefore, it is impracticable
to insist on aparticular sequence of management functions. The management process may
start from any point not necessarily from planning and end at any point. Moreover, at the same
time several functions may be performed simultaneously.
Many writers point out that planning, organising and controlling are the basic or organic functions
while staffing and direction are subsidiary or inorganic functions. But execution of plarns requires
direction of human behaviour. Stafling has become an important function due to growing
significance of human resources. Managerial functions may be grouped into two categories
viz (i) Preparatary functions or management in preparation consisting of planning,organizing
and stafling: and (ii)Executive functions or management in action which includes directing
and controlling. Managerial functions are universal in nature. They have to be performed
irespective of the sizeand nature of the organisation or the level of management. They are
essential in all types of organised endeavour.
Dale has mentioned innovation and representation as functions of management. Innovation
implies creative thinking. It involves any new system, procedure. technique, method, etc. that
contributes towards better accomplishment of objectives. Management is a creative task and
managers are supposed to devclop new designs, methods, techniques, new products and process
1.e., to find new and better ways of doing things. Rcally speaking, innovation is a part of
planning. Planning for change is an clement ofmanagerial planning, Amanager prepares plans
improvement.
not only to adjust his organisation to changing environment but to crcate change for
Planning is continuously seeking new and better ways of doing things. Representation has
 Management: Principles and Applicalions
2,4
executive who acts as the spokesman of
been cited as a separate function keeping in mind the represents a firm to various
his company to influence the external environment. A manager
and support needed for its survjval
elements of the society and negotiates to acquire resources association, financial institutions
For example, a manager deals with trade union, tradesocial responsibilities of business Io
govemment, consumer organisations, etc. to fulfill the
of authority. Moreover
fact. representation is a combination of communication and exercise
formally. Non-executives alsa
every manager does not have the right to represent his firm
influence the corporate image.
FUNCTIONS
2.2 MANAGERIAL AND OPERATIVE
Managerial functions should be differentiated from the operative functions of busines.
Operative functions include production, marketing. financing, personnel. etc. Operative functions
are also known as the functional areas of business. Operative or organic functions differ in a
according to the nature and size of business. For instance, there is no production function
retailstore. On the other hand, managerial functions are essential in all organisations irrespective
of their nature and size. Every operative function of business requires planning, organising,
staffing. directing and controlling. Each manager in charge of a functional area performs all
managerial functions.
The relationship between various functions of management may be described by an analogy.
If management is a human body. planning constitutes its brain. organisation is its nervous
system, direction makes up the respiratory organ, and control stands for the eyes.
Table 2.2 Managerial and Operative Functions
Managerial Functions Operative Functions

Planning Purchasing
Organising 2 Financing
3. Staffing 3. Personnel
4 Directing 4 Production
5. Controlling Marketing
2.3 MANAGERIAL FUNCTIONS AND MANAGERIAL LEVELS
Though the managerial functions are necessary at all levels of organisation, the relative
significance of different functions may not be the same at all levels of management. The tine
spent on various functions differs from one level to another. In general. planning and
are more significant at higher levels of management. Lower level executives organising
spend comparatively
a greater part of their time on direction and controlling functions. A middle level
manager is
likely to divide his time more evenly among the different functions. At higher levels. planning is
long term and strategic while at lower levels it tends to be short term and operational planning.
The mix of managerail functions at different levels of management is shown in
Figure 2.2.
Managerial Functions-An Overvier 2.5

Top
Planning Organising Dirccting Controlling Managemcnt

Planning Organising Dirccting Controlling Middle

Management

Operating
Planning/ Organising Directing Controlling Management

Fig. 2.2: Proportion of Managerial Functions at Different Levels

2.4 BRIEF DESCRIPTION OF DIFFERENT FUNCTIONS OF

MANAGEMENT

Planning
Planning is the most basic or primary function of management. It precedes other functions
because a manager plans before he acts. Planning involves determining the objectives and
selecting courses of action that will lead to the achievement of predetermined objectives. It
implies looking ahead and deciding in advance what is to be done. when and where it is to be
done, how and by whom it is to be done. It involves thinking before acting i.e., anticipating
problems and developing their solution. According to Henry Fayol, "planning means to assess
the future and make provision for it". Planning is a mental process requiring the use of intellectual
faculties. foresight and sound judgment. It consists of forecasting, decision making and
deliberation.Aplan is a predetermined future (projected) course of action. It is today's design
for tomorrow and an outline of steps to be taken in future.
Planning provides answers to the following questions:
() What actions are necessary to achieve the desired objectives;
(ii) Why are these actions necessary;
(iii) Who is responsible for these actions;
(iv) Where will these actions take place:
(v) When willthese actions take place, and
(vi) How will these actions take place.
The planning process consists of (a) determination of objectives, (b) forecasting or anticipating
the future. (c) decision making i.e. choosing a course of action from available altermatives,
(a) tormulation of policies, programmes, budgets, schedules, etc. to achieve the objectives,
(e) laying down of procedures and standards of performance. Planning may be long term or
Short term. Planning is a pervasive function and managers at all levels have to prepare plans.
2.6 Mungemet: Prineiples und
Planning is always goal-oriented and it involves choice among alternative courses of aei.
Applications
Planning is lso acontinuous or on-going process. Plunning enables us to do things n
orderly and efticient manner. It is helptul in more ellective achievement of goals. Planpi
enables an organisation to lace uncertainty and change. Itcorelates the organisation with i
future. Planning is a prerequisite to every cfleetive action.
Organising
Once plans are formulated. the nest step is that of orgmising. Organising is the proccss of
establishing harmonious authority-responsibility relationships among the members of the
enterprise. The netvwork of authority-responsibility relaionships is known as orgunisation
structure. Such a structure serves as the framework within which people can work together
eflectively for the accomplishment of common objectives.Organising is an important clement
of management because it is through organising that a manager brings together the material
and human resources required for the achievement of' desired goals. According to Fayol "lo
organise a business is to provide it with everything usctul to its functioning-raw materials,
tools. capital and personnel." According to Oliver Sheldon "orgunisationis theprocess of so
combining the work which individuals and groups have to perform with the tacilities necessary
for its execution that the duties so performed provide the best
channels for the eflicient,
systematic, positive and coordinated application of available ctlorts." A sound organisation
helps to avoid duplication of work and overlapping of eflort. However, an organisation structure
is not an end in itself. It should, therefore, be designcd to fit into the
needs and objcetives of the
particular enterprise.
The process of organising consists of the following steps:
(a) detemining and defining the activities required for the
goals: achievement of orgunisational
(b) grouping the activities into logical and convenient units;
(c) assigning the duties and activities to specilic
positions and people:
(d) delegating authority to these positions and
people:
(e) fixing responsibility for performance: and
() coordinating horizontal and vertical
relationships throughout the organisation.
Thus. organising is the process by which the structure and
allocation of jobs are deternincd.
Staffing
Staffing is the process of filling all positions in the
personnel. According to Koontz and O'Donnell, "statling organisation with adequate and qualiticd
recruitment, selection, compensating. training, promotiontheandexecutive lunction
is involving
managers". Stafing consists of manpower planning, recruitment, retirement o' subordinate
compensation. promotion and maintenance of managerial personnel. It selection, involves
training.
finding the
right person for the right job, having him in the right placc, doing the right
The objective of stafing function is to obtain competent employees and tojob at the right time.
provide the climate
tions Manugerial Functions-An Overview 2.7
ction
in an which will be most conducive tosuperiorperformance. Staffing is the responsibility of every
manager. Unless the manager fulfills his function ofseeing that aconstant stream ofsubordinate
ning
h its managers is reenuited. selected. trained, developed and promoted, he is not fulfilling one of his
most crucial duties.

Eficient staffing helps to avoid under-utilisation of personnel as wel as shortages of personnel.

It is helpful in discovering talented people and developing them to move up the corporate
2ss of ladder. Every organisation is concermed about the quality of its manpower, especially its
Df the managers. Managerial talent is the most valuable asset of' an organisation and therefore, staffing
sation is one of the most important functions of managenment. In the absence of competent managers
eether andoperatives, an organisation is a mere skeleton that has no life and no fruitful activity. An
ement important body of knowledge and experience has been developed in the area of staffing.
aterial Stafting is an ongoing activity of managers.
olto Staffing function is difficult as it deals with the human factor where completely objective
erials, judgement is not always possible. Staffing is the cornerstone of management because no
5 of so
manager can be effective without the right approach to the staffing job. Human beings are the
essary most important asset of an organisation. Therefore, efficient procurement, development,
icient. maintenance and utilisation ofhuman resources, particularly, managers is indispensable for the
sation successful working of every organisation.
ucture
In big organisations there is a separate personnel department. But this department provides expert
of the advice andassistance in staffingtoline managers. Every manager is actively involved in the selection,
raining and appraisal ofhis subordinates. StafYing is significant to every manager because il provides
competent personnel for efficient working of his unit and it ensures ateam of competent successors
ational to hím. There fore. staffing can be described as a pervasive or essential function of management.
Staffing is a continuous process because the work force of an enterprise is subject to constant
change. Changes in the organisation create newjobs and these must be filled.
Saffing function has become important with growing size of organisation, technological
advancements and recognition of the human factor in industry; staffing is more than mere acquisition
of personnel. It is "concermed with the placement, growth and development of all those members
of the organisation whose function is to get things done through the efforts of other individuals."
Safingis an executive function which involves the recruitment, selection, training, promotion
and appraisal of subordinate managers. Staffing is sometimes differentiated from personnel
mined. management which is concerned with non-managers, i.e., workers, salesmen, clerks, etc.

Directing
ualified Planning. organising and staffing prepare the enterprise for work. But no results can be attained
volving Unless the plans are implemented. Direction initiates action and puts the organisation into
rdinate motion. It is. there fore. the life spark of an enterprise. Direction consists of guiding, supervising
and motivating the subordinates towards the achievement of planned goals. It implies moving
aining. to action. It is the process by which actual performance of subordinates is guided towards
Jing the
httime.
climate 1. Theo Haimann: Professional Management, p. 29.
 Management: Principles and Application.
common goals. According to Terry, directing means moving to action and supplying stimulatin.
power to group of persons. In the words of Massie, "directing concerns the total manner :
which a manager influences the actions ol' subordinates. It is the final action of a manacer i
getting others to act afler all preparations have been completed". Dircction deals wit
interpersonal relations. lt is the catalyst that makes things happen. It converts plans in
perfomance. Itis the `doing or implementing phase' of management.
Supervision. communication. motivation and leadership are the important elements ofdirection
(a) Supervision: Supervision impliescxpert oversceing of subordinates at work in order to
guide and regulate their cfforts. Every manager has to supervise the work of his
subordinates to sec that they do their work as desired. Supervision is one importan
clement of the process of directing. But supervision is particularly important at the
operating level of management. The supervisor is in direct personal contact with the
workers and he acts as the link between workers and management. He
the policies, plans and orders of management to the workers. He communicates
also brings workers
grievances, suggestions and appeals to the notice of management. Effective supervision
is essential for the accomplishment of desired
goals. The purpose of supervision is to
ensure that subordinates perform their tasks according to prescribed procedures and as
efficiently as possible.
(b) Communication: Communication involves
to create mutual understanding. It is a exchange of ideas and information in order
2
systematic process of telling, listening and A
understanding. Amanager has to explain the plans and orders to his subordinates and to
understand their problems. He must develop a sound two-way communication system
th
so as to be always in touch with his
subordinates.Sound communication fosters mutual
understanding and coordination among different units of the organisation.
(c) Motivation: Motivation implies
inspiring the subordinates to work with zeal and
Noadministrative action can succeed confidence.
their best efforts to the common task.unless the subordinates are motivated to contribute
In
In order to activate and 1.
to work in the desired actuate his subordinates
manner, a manager has to make use of
Various financial and non-financial appropriate incentives.
Motivation is a continuous processincentives are available to a manager for this
of understanding and purpose.
(d) Leadership: Leadership is the satisfying human needs.
process of guiding and influencing 2
accomplishment of desiredgoals. It
personal goals. Aperson can be an involves the integration subordinates for the
a good leader. It is effective manager whenoforganisational interests with
he possesses the qualities o 3
through leadership that a manager can build up
among his subordinates. In order to guide his subordinates in the confidence and zeal
should adopt an appropriate style of desired direction. a manager
leadership. The
determines the level of motivation. Leadership is always pattern and quality of leadersh1p Inf
Controlling related to a particular situation. 1.N

Controlling is the process of ensuring that the organisation is

andthat progress is being made towards the moving in the desired direction
achievement goals. It involves monitoring ol
of
 Iknageral Funtions-An Overview 2.9

Nerormunce (o minimisc the gap between planned

an ongoing process. The control function reveals performancesoand actual performance. It is
bottlenccks that suitable action may be
Laken in time.Control is a primary lunction of management and it is
all levels of organisation. The need for control arises because performed by managers at
planning and pcrformance are
ngver perfect: orders may be misunderslood, objectives may be shifted and rules
violated. Control is forward-looking as nothing can be done to correct what has may be
already
happened. To be ctlective, a control system should be prompt. positive, self-regulating
econnomical. It should be casy to understand and simple to operate. It must be flexible and
should retlect the organisationalpatten. Besides reporting deviations promptly. it must and
corrective action. assure
The processofcontrolling involves the following steps:
(a) establishing standards for measuring work performance:
(b) mcasurement of actual performance and comparing it with the standards;
c) finding variances between the two and the reasons thereof: and
(d) taking corrective or remedial action for correcting deviations so as to ensure
attainment
of objectives.
2.5 ROLES OF A MANAGER
A manager has to play several roles. Henry Mintzberg has identified ten roles and divided
them into three categories (Table 2.3).
Table 2.3 Roles of a Manager

Roke Description Example

Interpersonal Roles:
1. Figure head As the symbolic head of his Receiving official visitors.
organisation, a manager must perform xelcoming new recruits, signing
routine duties of a social or ceremonial letters to retiring employees,
nature. This role is associated mainly attending subordinates' weddi
with senior managers. ngs, taking clients to lunch, etc.
2. Leader
Hiring. training. guiding and motivating Virtually all managerial activities
subordinates. involving subordinates.
3. Liaison
Building and maintaining external Keeping in touch with local
relationships or outside contacts to community, suppliers, clients,
obtain favours and information. etc.

Informational Roles:
J. Monitor
Seeks and receives information to Reading periodicals and reports.
develop thorough understanding of observational tours, questioning
organisation and environment. Emerges subordinates, mail.
as a nervecentre of information.
 Almewn: Priwiples nd.
2.10

I'rnsits infomatlon toother nenbers

Applicatlm
Fomalreports, menOs and phone
2Disseninator
of the orgunisation. culls to other manapers regardiny
ctivitles in the orguni-saton
local community. keepiny
superiors intorned.

3.Spokesperson Transoits inlomation to outsiders on Conversation with suppliers and

pluns, polivies and actions of the customers, specches to locat
orgunisation, Represents the orpanisa groups.
lion.
Decisional Roles:
1.Entrepreneur lnitiates and supervises design und Realigning subordinates' job,
eNecution of projects lor improvenent new products or promotional
in the orgunisation. idcas.

*. Disturbce handler Reyposible lor corective uetion when Resolving conllicts, reucting loa
the organisation uces unexpeeted bankrupt cuslomer, dealing with
crisis. lstrike.
3. Resoure alloçator Allocates human, muuterialand nonetury Approving budgets, confirming
resourees, business schedules.
4. Negotialor Represents the organisution in Bargaining with thetrade union,
bargaining und other major negotiuting lreight rates, contract
negotiations. with supplicr, deal with a
consulting firm

2.6 LEVELS OF MANAGEMENT

In an organisation there xis0s achain ofconmandor scaler chain (rom the ultimate authority
to the lowestrank. This chain is made up of'superior-subordinate relationships. Vurious managers
are linked with one another through the vcrtical chain. This chain or hicrurchy or
management
consists of series of' managerial positions called 'levels of management'. The level of
management determines the authority and status of managers. Thus, the term level of
management' refers to u line of' demarcation betwcen various management positions in an
organisation. There is no fixed number of' management levels. The number of managerial
levels depends upon the size and complexity of' the organisation. "As a to

larger und more complex, there is a natural tendency lor the clhain of command company becomes
Even though thecompany makes no cflort to limit span of'control to any given to engthen.
is un cxtensive growth there comes a time when number. ifthere
command various levels huve to be split up
at
and another layer of supervision is inserted".!"
(
In practice, it is olten dillicult to slice management
hierarchy into specilic levels because
various layers of authority constitute an integrated pyramid. (
However, the diflerent levels ol
management muy be classificd into four calegories as shown in Fig. 1.3.
(
1. Emest Date: (Organisation, p. 142.
 Managerial Functions-An Orerview
2.11

Top
Board Management
Chief
Executive

Upper
Departmental Middlc
Divisional
Heads Management

Superintendent
Branch Middle
Managers Management
Foremen Operating
Supervisors Management

Fig. 2.3: Levels of Management

() Top Management
(iü) Intemediate or upper middle management
(iüi) Middle management, and
(iv) Supervisory or operating management.
Top Management
lop management of acompany consists of the board of directors and chief executives. Chief
executive may be an individual or a committee. It is known by different names, e.g., managing
director. general manager, president, chairman-cum-managing director, etc. Top management
is the ultimate source of management authority and it is accountable for overall management
to the shareholders of the company. The main functions of top management are as follows:
() to analyse, evaluate and deal with the external environmental forces;
) tomaster
establish overall long-term goals, strategy and policies of the company including the
budget to allocate resources;
(tii) to create an organisational framework consisting ofauthorityresponsibility relationships;
(v) to appoint departmental and other key executives;
() to provide overall leadership to the company;
() to represent the company to the outside world, e.g., trade associations, government,
trade unions, etc.;
 2.12 Alanagement: Principles and
(vi) tocxercise overall review and control on the company's operations; and Applications
(ri) to coordinate the activities and efforts of different departments.
Thus, top management of a conpany is the policy-making group responsible for the over.l
direction and success of allcompany activities. It stands at the head of the organisatios
gives purpose and direction to the activities of an organisation.
Intermediate Management
Internediate or upper middle management comprises of
works manager. marketing manager, personnel manager,departmental
or divisional heads, e o
these functionalmanagers is responsible for the efficient finance manager, etc. Each one of
functioning of his owndepartment or
functional area in accordance with the basic objectives and policies laid down by
management. Intermediate management is largely concerned with the day-to-day the ton
of respective departments. Its job is to administration
implement plans
manner so that enterprise objectives may be achieved. and execute policies in a coordinated
with priorities and specific results. At upper middle Intermediate managers are concermed
management, departmental operational
plans are established and targets of achievement are laid
the usual functions of management in respect down. Departmental heads exercise
issue instructions. assemble the required oftheir own departments. They plan operations.
resources, design operating policies and operating
routines. evaluate results of their respective
departments, progranmme efforts and control the
work of people in the departments. They interpret the
prepare departmental organisational setup, select suitablepolicies framed by top management.
personnel and collect information. They are responsible forsupervising
the
personnel, motivate the
placed at their disposal. They translate the objectives and efficient utilisation of resources
specific decisions and actions. They are more strategies of the organisation into
than the external environment of the enterprise. concerned with the internal management rather
performance. Thus, this group is responsible for departmental
Middle Management
This level of management consists of deputy
as plant manager, area sales manager or heads of departments and sectional officers such
purchase officer, etc. These executivesbranch manager, office manager, chief accountant.
serve as a means of coordination between
management and operating management. According to Marry C. Niles, they top
the difficulties of their superiors in often share in
ariving at decisions and they
efforts oftheirsubordinates to carry out policies. They necessarily take part in the
downwards: they also take problems, difficulties, and transmit
orders, decisions and guidance
suggestions upward. The lines ol
communication meet in them". They are involved less in physical
work and meetings than the operating activity and more in pape
managers. While top management is concerned with
conceptual thinking middle management deals with operations.
The middle management usually performs the
following functions:
1. To interpret and explain the
policies framed by top management.
 AMonugerial Fnctions-An Ovenicw 2.13

. Tocompile and issuc detailed instructions rcgarding opcrations.

3. To nmaintain close contacts with operating results so as to cvaluate performance.
4. To participate in operating decisions.
5. lo cooperate among themsclves so as to integratc or coordinate various parts of a
divisionor adepartment.
6. Tomotivate supervisory personnel to work for organisational goals.
1. To devclop and train supervisory and operative personncl.
Supervisory Operating Management
Supervisory mnagement is the lowvest level ofmanagement. It consists of plant supcrintendent.
senior foremen and front line spervisors, sales officcr, accounts officer. ctc. They are
concerned with technical routine and day-to-day problems. They maintain personal contacts
withoperatives. It involves management of rank and file and is directly concerned with the
mechanics of jobs. Operating managers are expected to get work done from the staff under
their control. They lead an active, hectic, often interrupted work life, spending most of their
time communicating and caring for problems of the moment. They are the only managers who
do not manage other managers. They are caught between labour and management. According
to Davis. supervisory management "refers to grades of executive leadership whose work has
to do largely with personal oversight and direction of operative employees". The operating
managers plan. implement policy, organise, instruct and guide personnel and control performance.
They serve as the link between management and workers. Their authority and responsibility is
limited but the quality of workmanship and the quantity of output depends on their eficiency
and effectivencess. They are responsible for directly managing operatives and resources.
The functions of supervisory management are as follows:
1. Toplan day-to-day performance within the goals laid down by higher authorities.
2. To assign jobsto workers and to make arrangements for their training and development.
3. To supervise and control workers and to maintain personal contact with chargehands.
4. To arrange materials and tools and to maintain machinery.
5. To advise and assist workers by explaining work procedures, solving their problems.
etc.

6. To maintain discipline, morale and good human relations among workers.

bf 7. To report feedback information and workers' problems which cannot be solved at the
er supervisory level.
th

I. RC. Davis: The Fundamentals of Top Management. p.

l145.
2.14 Management: Principles and Application:
2.7 SKILLS OF AMANAGER
In modern business. the job of a manager has become very complex. Different types of
skills are required to manage effectively a large organisation in a dynamic environment
These skills of a manager have been classified into three categories. namely technical
human and conceptual skills.'
1. Technical skill: Technical skillrefers to the ability and knowledge in using the lools
equipment. processes. techniques and procedures involved in performing specific tasks
These skills require specialised knowledge and proficiency in the mechanics of a
particular job. Ability in programming and operating a computer is. for instance. a
technical skill. Managers need technical skill to guide and train subordinates. They
cannot manage the activities of their subordinates if they do not know how the johs
are donc. People with technical skills are recognised as experts at what
they do.
There are two things a manager should understand about technical skills. In the first
place. he must know which skills should be employed in his
be familiar enough with their potentiality to ask discerning particularofenterprise and
questions histechnical
advisers. Secondly. a manager must understand both the role of each skillemploved
and the inter-relationships between the skills. The nature of technical skill is
The manager should have developed some expertise in the work being done. twofold.
there are skills involved in the work being done. Secondly.
2. Humnanskill: Human skill consists of the ability to
work effectively with. understand
and motivate other people both as individuals and as
members of a
required to win cooperation of others and to build effective workgroup. teams.
Such a skill is
Such skills
require a sense of feeling for others and capacity to look at things
view. Human skills are reflected in the vay a from other point of
manager perceives his superiors.
subordinates and peers. Aperson with human skills is sufficiently sensitive to the needs
and motivations of others in his organisation so that
and outcome of various courses of action. he can judge the possible reaction to
With human skills, managers can resolve T
intra and inter group conflicts. An awarencess of the
be part of a manager's orientation and such skils importance of human skills should
career. While technical skills involve mastery of should be developed throughout the hi
skills are concerned with understanding of inanimate obËects or things`. human m
'people'. C
3. Conceptual skill: Conceptual skill
and the inter-relationships between comprises the ability to see the
its parts. This skill refers to thewhole organisation lo
the enterprise as a whole or to consider a ability tovisualise in

situation in its totality. These skills involve m

understanding abstract ideas, constructing models and relationships. and TH
consequences of planned actions. Conceptual skill is the mental ability to coordinate anticipating W
integrate all of the organisation's interests and activities. It involves the and is
manager's abiliy int
1. Robert L. Katz: *Skills of an Effective Administrator". Harvard Th
1955 and Sept.-Oct., 1974
Business Review. January -Februar)
 Managerial Functions-An Oheniw 2.15

to see the onganisation as awhole and to understand how its parts depend on cach other.
Italso involves the manager's ability to understand how a change in any given part can
aftect the whole organisation. Such skills help the manager to conceptualise the
environment, to analyse the forces working in a situation and to take a broad and
farsighted view of the organisation. Conceptual skill also includes the competence to
understand aproblem in all itsaspects and to use original thinking in solving the problem.
Such competence is necessary for rational decision-making. Amanager needs cnough
conceptual skillto recognise how the various factors in a given situation are inter-related
sothat the actions taken willbe in the best interests of the total organisation.
Thus, technical skilldeals with jobs. human skillwith persons and conceptual skillwith
ideas. These three types of skills are interrelated and they are required by all managers.
But the proportion or relative significance of these skills varies with the level of
management as shown in Fig. 2.4.
Top Management Conceptual
skill

Human
Middle Management skill

First Line Technical

skill
Supervision

Total Managerial Job

Fig. 2.4: Managerial Skills at Various Levels
Technical skills are most important at the supervisory or operating level where aclose
understanding of job techniques is necessary to guide workers. As one moves up the management
hierarchy. technical skills become less important. Higher level managers deal with subordinate
managers and specialised technical knowledge is comparatively less important for them.
Conceptual skills are most important for top management which is responsible for formulating
long-range plans. making broad policy decisions, and relating the total business enterprise to its
industry and the economy. Thus, the relative importance of conceptual skills increases as we
move to higher levels of management. Human skills are important at all levels of management.
This shouldbe self-evident as management is the process of gettingthings done through and
Withpeople. At every level managers interact and work with people. Probably, the human skill
15 the most important at the lowest level, where the greatest number of superior-subordinate
interactions take place.
Thus, all the three skills are cssentialto effective management, but their relative importance to
aspecific manager depends on hisor her rank in theorganisation.
2.16 Management: Principles and Application Ma
Managenment skills are transferable from one enterprise to another and from one occupation to jder
tho:
the other. Aretired army oflicer can make an eflective manager because of the translerabiliy
nature ot
of managerial skills. Managerial skills are transferable because of the universal was

dev
managerial tasks. Managers in industry are often called upon to serve in government no
because they know government but because they know management and can perform
US
cffectively by making good use of people who have technical knowledge. Asuccessful manape
should be an all purpose manager. a man of all organisations. Thi
the
However. there are limitations in the transferability of skills from business to non-busines Am
situations. Human and conceptual skills may be easily transferable but the competence and lear
experience in one organisation are no guarantee of success in managing another organisation. cha
For instance. most of our civil servants have failcd to manage efficiently the public sector
Thi
undertakings. In the words of the Estiates Committee, "the administrative services do nog mar
constitute a satisfactory source of recruitment of staff for the management of commercial
on c
enterprises of government."
0s a
2.8 MANAGERIAL COMPETENCIES Soci
While skills are important for managerS, another terim which has become relevant in management Whi
mea
literature is managerial 'competencies. The term competence was first brought to focus by
DavidMc Clelland in 1973 in his paper, Testing for competence rather than intelligence'. In cate

this paper he reasons that intelligence tests are not sufficient to evaluate the for F
capabilities of
manager. Competence is what distinguishes a successful manager from an average one. per
Competencies may include combination of personality traits, skills. knowledge etc. thus, expl
competencies are a broader concept than skills. Further, the competencies can be developed 1
in people making them more effective in their jobs.
2.
Though researchers agree on the importance of
competencies in managers, there are different
approaches to define and understand what constitutes competencies. Two major
to understanding the concept of
managerial competencies are the United Kingdomapproaches
approach
3.
(work-oriented) and the US Approach (worker-oriented). The latter is more
popular. 4
United Kingdom Approach or the Work
-oriented Approach to Competency
This approach was propagated by the UK's
approach focuses on the behavioural aspect of Management Charter Initiative in 1988. This
competency. The aim was to raise the standard
ofmanagement professionals. Under this approach, S.
patterns that help the employee toperform tasks andcompetency is defined as a set of behavior
led by employers. Every qualification is based upon a functions effectively. The initiative was
from that series of
"occupational standards'" derived
occupation's *key role". These were considered benchmarks of best
of standards were developed for mänagers at practice. A sel
various levels. These standard could be used t0
appraise and train managers. This approach identifies the outcomes
it is performed adequately. It was expected from a job when 2
anticipated that a restructuring of assessment,
outputs (workplace performance) rather than inputs to
measure
(knowledge, periods of apprenticeshíp
attendance on courses)would have far-reaching results
3

This approach is criticized because

 Vunagerial Functions-An (Overviey
aions 2.17
identification of work activitiesesdoes not sufliciently indicatethe
ion to altribules required to urther, it
those activities efliciently. It was faced criticism for its'one si. cfits all' appronch.aceonplih
abiurelityof seen by many as simply increasing the paperwork without any benefit in tems ofuaperal
devclepment. These standards were withdrawn in 2015.
erlorm LS Approach or the Worker-oriented Approach or Input Appronch to Competencies
anager This is the popular approach to understanding managerial copctencies. The proponcnts of
nnch include David McClelland and Richard Boyatzis who were supported by thc
usiness American Management Association. The aim was to design aprogram where nmanapers could
nce and
isation lkam competencics. Both the authors were of the opinion that "compctence is an underlyiny
Csectot churateristic causallyrelated to superior perlormance."(1Boyazis, 1982:MeClclland, 1973 ),
Tis anoroach is also known as the worker oricnted approach or the input approach to
do no
mercial nagement competency. Boyalzis built on McClelland's rescarch on competencies and focused
on charasteristics of managers which are related to effective perfornance. Thus, compctency
isa capability or ability arnd includes motives. traits, skills, attitudes, aspect of sclf-imape or
sxial role. or abody of knowledge which the manager uses to complete the joh successdully.
2geme Wue different rescarchers use diflerent frameworks and competencies, we diseuss apopular
focus b mTe given by Boyatzis. Boyatzis identifies a number of competencics which were
Ence'. I
teeorizzd into six clusters. Three clusters were considered ihreshold competencies (required
ilities of ixpeíoming he job properiy )and the other three clusters distinguish outstanding manugerial
performance from averuge performance. The competency model given by Boyatzis' is
zpined below:
etc. tinus
eveiopei 1. Epertise and experience: This is a threshold level of conpctency.
2. Knowledze: This is a threshold level competency and includes declarative, procedural.
differe fncional and mezcognitive knowledge.
proeche: 3. Basic cognitive competency: This is also a threshold competency. It includes an
2pproact 3Ment of basic cognitivecompetencies, such as rnemory and deductive reasoning,
4. Cognitive intelligence competencies: These are required for outstanding
perlormance.
Th; include aspects such as sysiems thinking and patterm recognition. This refers lo
irking or 2nalyzing information and situations which helps in effective or supcrior
982. T
Stand
fbehz.ir 5. Emctional intelligencecompetencies: These also help in distinguishiny
inl itelligence inciudes self-awreness andself-management perlorimance.
iatise compelerIcics, Such
derir
cice.a 2,2 ? 1 LThe ConMs AModel for Effetive Perforrrance, Wiley, New Yuri.
be sed::
ajob h t umpz raher than fur intelligene. American P:ychologrt,
C nhe 214 ctur. Juurnal of Manayernsnt Decloptent.
ed becz
 8
Almogemwnt: lriciples nd Ayplictons
as emotional self-wareness nd emotional sell-control. It is an ability to recopnize
understand, and use cmotional information about oneself which helps in betet
perfornmance.
6. Social intelligece competencies: This cluster is also part of the distinguishiny
outslanding managerial perlormance group. t includes social awareness and
relationship management competencies, such us empathy and teamwork. I is the
ability to recognize,understund and ISC emotional infornation about others and usine
it for superior work perfornance.
Significance of Conmpetencies Franework
Competencies are a versatile tool tounderstunding what makes some managersnnore successBul
than others. The cmotional, social, and cognitive intelligence competencies help in linking
personality to action andjob perlormance. Various conpctency lrameworks help in identilying
what conpetencies should be focused on and are instrumental in human resource developnment
applications like reruitment andsection. Further. competencics can be developed. Thus. gap%
in managerial compelencies can be identified and filled through training and developmmen
progrunns. Competencies also help in perlormance appraisal and feedback. Thus, competencies
help in altaining high quality work and making the managers more eflective.
The need to continuously improve organisational performance has never been greater than in
today's complex and dynamic environment. Ensuring proper lormulation and implementation
of strategies is vital for the managers. Managerial competencies are in focus because thy
can help in recruiting and training managers who are capable of' dealing with the
complex
environment. Anumber of modern enterprises are adopting competcncy models as cssential
management technologies to enhance their competitiveness.

TEST QUESTIONS

1. "Munagement is simply the process of decision-making and control over the

Iunan beings for the cxpress purpose of attaining pre-determincd goals". In theaction of
light of
this statement, discussthe various functions which constitute the
process of'management.
2. Give ugenerally accepted classilication of managerial lunctions and
function in brief. deseribe cven
3. *lo manage is to forccust and plan, to orgunisc, to command, to coordinate and t0
control". Discuss.
4. Discuss the nature andsignilicance of' stalling lunction of management. Doyou think
stafling is the most important lunction of'management?
 2.19

s. Ixplain the interdependenee letween the various funetions of manugement.

6 Describe the relative sipnificance of manayerial finetions at ditferent levels of
anagemet

7. Discss tlhe tuwtion tlat topether constitute the prOcess of' management.
N Iow willyoclassily the leves ol manapement? Brielly cxpluin the lunctions of diflerent
Icveh of nanagement.
"Managcment in1plies the skill in gelting thins done". In light ofthis statement explain
the manayenal skillk required at various levels.
J0 "A manager perlorns ultiple roles". Comment
1 Explain managerial roles as identilied by Mintzberg.
1: A
conpclency is defined as acapability or ability'.Comment cxplaining the concept of
compctencies.
3. What du you understand by tlhe tem 'managerial compctencies'? Explain the UK and
US approaches to competence. Which is more popular?
14. Wite short notes on:
(a) Functions of amanger
(b) Levels of management
(c) Managerial skills
(d) Roles of a manager
(e) Managerialcompetencies

PRACTICAL EXERCISES

1. ROLE PLAY - GROUP ACTIVITY

Iron the class studcnts can assume the following roles:

" Manaying Director

" Production Manager
" luman Resourcc Manager

Marketing Manager
Factory Supervisor
Sales Persons
 2.20 Management: Principles and Applications
You are the employees of XYZ Ltd. Assume that your organisation wants to launch a new
product. Through role play discuss the skill set needed and functions to be performed by each
student in his given role for launching this product.
2. CASE STUDY: A DAY IN THE LIFE OFA BANK MANAGER
Please open the link below and read the particulars of the case.
https://www.ed.ac.uk/files/imports/fileManager/bank%20manager%20%28hbos%29.pdf
Based on the above case answer the following questions:
1. What functions are performed by the bank manager?
2. In reference to Mintzberg's roles, what roles are assumed by the manager in
the above case?