Four Functions of Management
Department of Management Sciences
SYED NAJAF ALI1
SYED NAJAF ALI1
A. Motivation to Study………………………………..……………….01
B. Objectives of Study………………………………….…………..…..02
C. Organizational Overview………………………………………..….03
II. Literature Review………..………………………………………..04
A. Characteristics of Planning…………………………………..……..04
B. Characteristics of Organizing…………………………………..…..05
C. Characteristics of Leading……………………………………..……06
D. Characteristics of Controlling…………………………………..…..07
III. Analysis Approach…………………………………………………08
We are a students of BS (A&F) in a Bahria University Karachi Campus and would like to express our View regarding our report.
We would like to express our gratitude to Ma’am Farah Ameer that it would have not been possible without this kind support and help to complete this report.
We give our special thanks to Mr. Syed Muzzaffar Hussain (Dir. Fin. ; HR Manager) of ABM Data System Company, who supports us regarding the term project and we are happy for this kind of co-operation, encouragement and given us such attention and time that is very helpful.
We sincerely thankful to all my group members who are became the part of all our presentations, and taking part in a decent way. We really appreciate their work regarding projects, role plays through the whole semester.
A. Motivation to Study:
The central purpose of this article is to draw attention to ways that interpersonal trust between supervisors and employees can be fostered through activities associated with the four functions of management. Interpersonal trust has received increasing attention as an important variable for effective management and the success of organizations. Further, managers serve a critical role in promoting organizational success. Practical insights regarding activities that promote interpersonal trust within each of the four functions of management is briefly discussed. These insights are offered with the intent of encouraging a more deliberate focus on trust within the functions of management.
Keywords: Management; functions of management, management education.
B. Objective of Study:
The object of this study is to initiate a practical dialogue regarding the question of how the four core functions of management that needs to develop and implement the success of any business organization depends on it. These management functions allow an organization to handle its business strategy, tactical and operational decisions. However a manager’s primary challenge is to solve problems creativity. While drawing from a variety of academic disciplines and to help managers respond to the challenge of creative problem solving, principles of management have long been categorized into the four major functions of Planning, Organization, Leading and Controlling i.e. the P-O-L-C frameworks that are actually highly integrated when carried out in day to day realities of running an organization.
C. Organizational Overview:
Review of an Organization, whenever you feel you have to involve yourself in such business then you have to go forth. There are three types of business enterprises.
Limited Liability Company.
The basic difference between the sole proprietorship, partnership and Limited Liability Company is
In a sole proprietorship and a partnership the liability of the all business rest with the owner of the business (because the liability of the owner is UNLIMITED), because a sole proprietor is responsible for all the debts of the business, and same is the case with the partnership that the partners are liable to pay the money, if they purchase anything from the suppliers, and if they are not pay their money, so they are personally liable to pay the money.
ABM DATA SYSTEM IS A PRIVATE LIMITED COMPANY, and it is established in 1983, When the company formed so there are some founders of company that how they are going to run to their Company ,first of all define the MISSION ,VISSION of the company and then going with the Core Values of Business(Financial statement).
The “MISSION” of ABM company that it should be one of Leading IT Company of PAKISTAN and the “VISION” of ABM COMPANY that they have to provide all measures solutions to their customer that HARDWARE FACILITES, and their core values is that they always respect their customer, STAKEHOLDER and they have to care for their Employees that they provide market based Salaries to their employees, so They provide better performance with the Suppliers.
Once the MISSION and VISION has been formed, so they make ORGANIZATION CHART, and they make division to their charts that they formed Management i.e. Top management, finance department marketing department etc.
II. Literature Review
According to Lyndall Urwick,
“Planning is a mental predisposition to do things in orderly way, to think before acting and to act in the light of facts rather than guesses”
The Characteristics of Planning as shown below:
Establishment of Objectives:
Planning requires a systematic approach to set goals and objectives that should be practical, acceptable, workable and achievable.
Choice of Alternative Course of Action:
Planning is deciding best alternative among others to perform different managerial functions in order to achieve predetermined goals.
The organization may be able to get valuable suggestions, improvement in formulation as well as implementation of plans.
Planning Minimizes Uncertainties:
Planning helps in reducing uncertainties of future as it involves anticipation of future events.
Planning Encourages Innovations:
In the process of planning, managers have the opportunities of suggesting ways, means to improve performance and appraise plans effectively.
According to Louis A. Allen,
“Organization is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationship for the purpose of enabling people to work most effectively together in accomplishing objectives.”
The Characteristics of Organization as shown below:
Outline the Objective:
Born with the enterprise are its long-life objectives of profitable manufacturing and selling its products. Other objectives must be established by the administration from time to time to aid and support this main objective.
Identifying & Enumerating the Activity:
Once the Objectives has been Selected, then the Management has to clarify that how much task is involved and whose department or group is going to complete those task.
Once the Duties have been assigned according to purposes, then the department has divided the task among the members of a department.
Defining the Authority:
The responsibility and authority should be well defined among the individuals or members.
Creating Authority Responsibility:
Once the responsibility has been divided, so it`s time to decide that who will act under whom, who will be the Subordinates, what is the spam of control, what is the hierarchy of those in an organization.
According to Scholars,
“Leadership is the ability to evaluate and or forecast a long term plan or policy and influence the followers towards the achievement of the said strategy”
The characteristics of a leadership are shown below:
Trust mean that how would you believe your employees when the things goes wrong.
Leadership means what you are say you are going to do.
Perspective means your own views regarding a particular topic which helps you to set a vision and developing a plan to get there.
The focus is about that leader has to focusing the internal and external environment of an organization.
The characteristics describe that what the organization will be going to do, to achieve a certain goal.
According to Merrim Webster,
“The controlling function of management can be critical determinant of organizational success. Most authors discuss control only through feedback and adjustment processes”
The features of Controlling as shown below:
A function which comes once the performances are made in conformities of plans.
It indicates that, this type of function is performed by managers at all the levels and in all type of concern.
It indicates that, effective control is not possible without past being controlled. Controlling always looks to future so that follow-up can be made whenever required.
It indicates that, since controlling requires taking reviewable methods, changes have to be made whenever possible.
Relation with 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 Planning.
III. Analysis ApproachA. Planning
Goals and Objectives in Uncertain Conditions:
Levels of uncertainty regularly confronting managers today are so high that they need a new way to think about strategy. To cope up uncertain condition managers should identify the nature and extent of residual uncertainties, choose strategic postures, build a portfolio action and actively manage the strategy. Managers should develop a single forecast of the future that is precise enough for strategy development because it is important for one organization to achieve success. The future can be described as one of a few alternate outcomes but the analysis cannot identify which outcome will occur, although it may help establish probabilities. And once that information is known, residual uncertainty would be limited, so the incumbent would be able to build a confident business case around its strategy.
However the ABM Company is focuses on its objectives; like to enhance their products and right know they are dealing with three products i.e. EPSON, LENOVO & BIXLON; to add certain new products and new principles is our witness which is basically our goals and to increase their customers. Recently they are supplying their products to national or multi-national, functional institutions and other big organizations, so they’ll like to enhance more segments. Let’s suppose if they are not so far providing services to certain other segments of the businesses i.e. media or textile industries areas; although they are now involve more in educational business by providing multimedia projectors to IBM, CBM universities etc.
Company’s Opinion about Planning:
Planning is the major part for every company that define goals, establish strategies to attain goals and developing plans to seek forth and helps to coordinate in different activities weather in short term (Organized for a year) plans or longs term (organized for 3-5 years) plans. However every company has certain rules and objectives in their mind. Some companies wanted to become the market leader, challenger, follower in each market or certain companies go for finding certain profits, go for some products or provide quality products etc. When a company is going to increase business they have to make certain goals and objectives, then they go according to that because running the company means one have to be stable in all aspects, one have to have a good cash flow or to keep satisfy your employees ; keep profitable relation with customers and these objectives and goals make directions or positions in every segments of the company.
Failure: Sometimes it happened when the plans failed. Suppose if a company planned to open our branch somewhere but for some reasons they can’t open a branch over there1or if a company have to add some certain products into its product line but the demands of that product aren’t good enough2 or sometimes the company lose some major projects and the other company will take it3 or sometimes it happens when the supply isn’t reach to our port on time, so they aren’t able to receive goods or supply goods which they have to give to their customers4.
So the plans are been made and try to works on it to achieve that but sometimes it works or sometimes not. This is one of the thing to learn, how to make further plans. As a trading organization, company knows the requirements of the market, so they keep certain stock in hand at the time when orders obtained from customers and give them specific time to fulfill commitment to their customers.
Involvement of Employees while setting Goals:
When top management set goals, it flow down through the organization to each succeeding level to guide individual employees as they work to achieve those assigned goals because these are basically their core jobs. Although ABM Company also refers to includes their employees in organizational goals to train according to it because if the company don’t involve works in such conditions, they couldn’t be able to see the clear image of what they are chasing for. However the company doesn’t share all the future settings to their workers unless it became the need. But the training a continuous process for all the organization and company also believe in this that we provide training to our core team and they will improve themselves accordingly.
Manager as a Decision Maker:
Decisions are being taken based on the scenarios, based on the circumstances because the core things of a business in multiple. You have to take it through the consideration of various aspects. Sometimes managers have to take harsh decision or rational decision or liberal decision or sometimes intuitive decision. So it is depending upon the circumstances of a particular case. The core responsibility of the top management and the line manager is that they have to be very clearly to define every individual that, why he has been hired and what are their responsibilities and their job description. However in each organization managers at all level makes decisions weather in business consequences or choosing amount alternatives.
Let suppose in Decision Making Process of the ABM Company that as a trading organization there are some certain procedures of sales. Different companies offers to register ABM Company as pre-qualified determinants and they need certain requirements through documentation. ABM Company sees the spices of the products then ports their suppleness accordingly then purchases certain things from certain companies and then negotiate prices and sell the products. The various brands come into their platform but if they feel that it isn’t beneficial, they have to close those products and go for another one. So the decisions are been made and company tries its best to achieve that, but sometimes it works or sometimes not.
B. OrganizingOrganizational Strategies:
Organizational strategy refers to the actions of company intends to take to achieve long-term goals. ABM Company uses Focus Strategies to exploit a particular market segments i.e. less attractive to competitors, understand the dynamics of that market and the unique needs of customers and concentrates to develop low-cost or well-specified products for the market, so the consumers can afford to buy it. However company serves customers in market uniquely well; tend to build strong brand loyalty among customers.
One of the effective way is to allocate jobs among sub-ordinates, so the organizational work can be accommodate i.e. Departmentalization; having two generic ways of organizational design i.e. Organic ; Mechanistic structure. Companies have different perspectives on each that it’s all depends upon the circumstances i.e. the potential in business in the market.
However ABM Company is an Organic Organization that includes their organization with their own resources. The company faces unstable and dynamic environments so they need to quickly adopt to change accordingly and distribute information and knowledge very quickly. For example if a company make some muggers or amalgamation with another company so they face are certain difficulty and those difficulties can be cure if the organization is organic.
Managers are supposed to listen to top level management of their goals about how they have to work. So they can take the work from there sub-ordinates and those managers have to properly communicate with workers because that’s why the particular person has been appointed for the specific work. However ABM Company also divides work activity into separate job tasks which creates efficiency and increase productivity in work output. Company required managers to decide which task is going to perform by whom. When they see that some employees have got potential and have special qualities in that particular thing then they use to train them accordingly and give the authority to perform the task.
For Example: The engineer is hired to repair the printers. So the printers are being received by another person. Then they have to give that to their senior then that particular senior manager or supervisor give the printer to the engineer to repair it, so all the duties aren’t require to done by that particular engineer although this is not the duty of an engineer to deliver the printers. So if the job description is properly be defined to the employ, the conflicts will reduce to its maximum.
Level of Centralization:
Centralization and de-centralization has it is own merits and demerits in each organization. However ABM Company works in a centralized way, so that they never allow non-magical stuff to make decision because the decisions are made by the top level management and those decisions communicated with Middle Level Manager to the lower level manager who is responsible to implement those to their particulars sub-ordinates then they have to follow the commands of their managers and function it accordingly.
ABM Company have Flat Organizational Structure in which they make organizational chart and make division in those charts that formed management i.e. Top Management (CEO OR Director of an Organization), Marketing Department Heads, Sales & Marketing Department and Finance & Admin Department. However each department has different stages. In business Management Strategy, there are various develop autocratic, democratic personnel based organization where senior people used to make some plans and they try their level best to implemented to their own because they are responsible for the overall running of the organization they have got to write to implement their decision to words the bottom.
The number of employees can work under one manager. It depends on some circumstances on the efficiency & effectiveness of a manager.
For example in Support Service Division, there is one supervisor under which 22 people are working and in finance department there is one senior manager under which 4 people are working. However, it is all depends upon the requirements of job.
Teamwork is essential for every company to achieve specific goal. It is the workplace that offers the company and staffs the ability to become more familiar with each other and learn how to work together. It increases accountability, learning opportunities, ideas and support to accomplish tasks faster and more efficiently than tackling projects individually. Cooperating together on various tasks that reduce work-loads or work-pressure of all employees by enabling them to share responsibilities which influence the efficiency or speed of their output in accomplishing the task.
However ABM Company also refers teamwork that increase the potential of individual within the organization i.e. working alone on a project, teamwork affords people the opportunity to challenge the ideas of each other and come up with a compromise solution that contributes to the successful completion of the task. As a trading organization, cross-functional team also accommodate in various departments like in Sales Department there are various sales teams that they are categories by area or categories by segments of the industry. Although it’s all depends upon the requirements of organization.
Companies Opinion about Leadership:
In Companies opinion, “Leaders are not made leader are born”
The leadership quality can be acquired with the training, with the education, and it will give a good positive results. However in their personal absolute opinion leaders are being born made through training however, the possibility and probability cannot be ruled out, if you worked hard with learn things from other people.
Importance of Leadership:
Leading is very important in an organization because if they have the authority and they are responsible in an authority and they can convene their two years subordinates, so it will always provide good results.
For example, if they have to provide some reports for a particular purpose on an urgent basis then, they can call certain people and give them some responsibilities, and they have a good co-ordination amongst the people so it will give the good result, and if we don’t have coordination with the workers, so It will not be able to give good results, so they think it is a very important aspects.
In Companies opinion, they don’t thing that there might be a leadership issue, because it`s a private organization, and all the supervisor and managers are well prepared and organized and they are handling the issues with their subordinates and If sometimes any things is goes wrong and if sometimes managers feel that the employees are not working properly, so there is a proper HR department, in which the managers refers the matter in HR department and HR department look into the matter and advice to the senior as well as the Subordinates accordingly, the HR department feel that if the Subordinate is misbehaving or not working with the court of conduct, which is describe by the organization, so they can take such decision to their employee.
For satisfying the employees, we can see now a days the inflation is very high and the fast of living is very high so it is very difficult situation that employees expecting increase in their salaries so some time they are depressed, when the managers are not increase in their salary according to their work and their efforts, so it is the job of the managers to explain their job in the beginning that this is your level and if you are working as an accountant so that the specific amount will paid to you and general markets outside the organization is the same as you are getting, So it’s the better that or you have to enhance your quality or increase your skill or you have to improve or to grooming yourself, down the line you will become the senior accountant and according to this your salary will increase and approximately from this to that amount you, so managers should teach them to explain them if they work hard so the company will give what they want.
Now employees can be motivated or can expect from their organization.
1: What reasonable market based salary?
2: What good respect from the managers?
3: Where he would like to see that where he or she would be after three to five years (3-5 years)?
If managers give them this particular solutions so employee will love and efficient in their work, and if the employees don’t getting a market based salaries but if he get a prospectus from their managers after three to five years (3-5 years), So he will defiantly work with the organization.
So basically there are 3 options to the managers and if option is drop so the other option will motivate their employees, and there are other options to motivate their employees, training opportunity etc.
They’re basically some training sessions of all finance, admin, HR Department so the senior people used to call from the various segments and they use to guide to their workers if there’s some question their mind and tell them how to handle any situation like if there’s some problem with the customers. Similarly in Support Service Division, if customers have any complain if they can’t provide their products in time So the customer annoyed so we use to train our engineers how to minimized the time by tell them the exact problem. So they have to be very clear in their mind. What would be the problem or how it could be rectified and what would be the cost of it.
Skills of Management:
Interpersonal Skill is an important aspect and requires skills.
For example, if five employees are working under managers, so they should try to understand their nature, that how they are feel, because some people are very sensitive, some of them are not sensitive, that first of all you have to study the behavior of a particular employee, so you have to use INTERPERSONAL SKILLS and you have to adopt your strategies accordingly and should try your level best to listen to their employees.
So this is the responsibility of the managers to behave with subordinate accordingly, keeping in view the behavior as well as the policies because if managers focusing on motivating their employees and forgot about the goals and plans which is set by the top management, so it is not good for the organization.
Controlling is the final part within the functions of management. It is an important factor which help us to check errors, mistakes etc. So that the organizational goals is going too achieved in a desired manner.
Challenges ; Performance:
The company is facing different types of new challenges i.e. when something is new to start1, when something is about to end2, during transitions3, when times are tough4.
Every employee has some duties which were fulfill by the company requirement. For example, the duty of a finance department takes a clear view of a financial statement of a company if the problem arises so they have to inform their manager.
Basically every department has a very important role in the success of a company, to achieve these goals. So the manager has to co-ordinate with every department and to solve those issues which are arises within a department, employees, and lower staff. To evaluating this there are certain ways.
First is to check out their bank statements of their organization.
Financial statement has been compared with the budget of the organization (and comparing it with the previous years as well)
Expenses have been compared by last year.
What product we have dealing last year.
Employees working period.
So these are ways by which they evaluate their performance. Customer overview can also be preferred regarding company policies performance etc. They can also check their previous record and comparing it with the current year performance.
Issues ; Conflicts:
Being a manager of this company, it`s their responsibility to sought out those issues but unfortunately there might be some conflicts and issues arises between the group member, so it`s a bad impact on a company. To prevent these types of issues they have some plans to resolve those issues.
For example: If the conflict arises between the two employees, however the top management or general management is not involved in this type of things, so they required the line-manager, who is properly trained for such conditions. Manager have to listen the argument of each gentleman and have to review it how is on fault. Sometime manager have to take harsh decision, when the case goes towards the misconduct or misbehave then the proper appropriate action have being taken against the employee. But there should be balance between the employees and the decisions shouldn’t being based on the favoritism.
However, there are some common issues which can affect any organization:
Low attendance at meetings.
Conflict among board members.
Low participation in meetings.
High turnover of board members.
There are some measures to stay competitive in this dynamic environment. You see the people are well aware by the situation of the business being changed. There are two basic points:
First is the communication and knowledge of customer.
The other one is communication role in the environment.
Communication built very strong relation between company and the customer. The customer reviews are very important; their feedback regarding companies’ strength. There are some challenges, department is carrying, what peoples thoughts about the organization, and what they have to make on accrued basis rather than then the active approach. The business intelligence has to be improved in an organization, how the customer will be satisfied, what type of technology will be introduced. So accordingly the challenges will be well identified and properly handed. So the company can easily built their strategies
It is essential for all the managers that they have to make insights which affect the environment of an organization, and how to overcome the above issues. A complex and dynamic environment is inevitably too difficult to forecast. It is important to assess significance of what happen and what can we observed to be happening. The strategies’ in which we involve:
A clear awareness of environmental forces and ways in which they are change their decision on appropriate products and services for clearly defined market.
The effective management of sources to develop these products for the market. Understanding and being close to customers, and their perceptions of value.
A commitment of quality.
Therefore, if the companies are not thinking about their technologies, can’t survive in the market. So they have to try their level best to improve and bring innovations which are beneficial for their organization in the future.
The Result for the ABM DATA SYSTEM is about the basic review about a specific topic regarding the functions of management and we are now concluded the above functions in the following manner.
Planning helps one organization to seek forth. Without having ‘Plans’, none of the organization can’t survive in the market and see the clear image of the way to go. Planning is not just about making goals & objectives; it is about to securing the future.
ABM DATA system is about focusing of a long term strategies and One of the effective way is to allocate jobs among sub-ordinates, so the organizational work can be accommodate i.e. Departmentalization; having two generic ways of organizational design i.e. Organic & Mechanistic structure. They are using Organic Structure and they are basically focusing about it, because they are not depend on other Organization, they work their own resources and they organize according to their prescribed manner.
In Companies Opinion , there might not be any leadership issue because it`s a private organization, and all the manager have a good relationship with its subordinates and if any conflicts arises, So they have a proper HR department to solve those issues. Sometimes conflicts might be arises because of high inflation and employees are not paid according to their work and effort, so that manager has to inform its employees that if they are working according to companies policies and maintain a decorum within an organization, so they will definitely get promotion within 3-5 years.
Controlling is the final part within the function of management and it is helping us to check errors, mistakes etc.
So every department has some duties and some roles in the success of an organization, manager has to maintain a co-ordination with every department to solve the issues of a company regarding, Bank statement1 , Financial position2, expenses compare with the previous years3, employees working duration4.
These are ways by which they evaluate their performance. Customer overview can also be preferred regarding company policies performance etc. They can also check their previous record and comparing it with the current year performance.
The discussion for the ABM data system which are discuss earlier in the report, but here we are discussing about that what we have concluded, and what we found in their organization, and what we recommend them, to run their organization which might be beneficial for them in the future.
In planning, we observe their company policies regarding their product. However, they run their organization well. But they have to work on their policies for better employment and seek to increase products to spread the web of their company.
In organizing the company they have the advantage of using its organic system because in organic system its ABM personal software and they are basically the owner of their software and it is beneficial for them because they have their skill manager who has a complete knowledge about their software’s and nobody wants to hack it because they are own users.
Now, opinion about the authority in a leading, that they have a good co-ordination with their employees as well as their subordinators, So in my opinion their might be some conflicts arises between their employees regarding the increase in their salaries, So the solution for this which I recommended to overcome this issues that they have to make give some task to their employees, that who is going to complete this task with a limited time, so they will get some rewards i.e. small promotion, give chances to give such type of decision making. So this type of activity is not just motivating its employees but it will also make employees to be efficient in their work.
Now, talking about the controlling part of an organization, and according to my opinion there are some external factors which affects the organization, they are making some strategies to overcome those issues but they have to provide their customer such type of discounts to their customer and this type of activity attract their customer and it create goodwill as well.
The conclusion for the ABM DATA SYSTEM is the Complete Overview about the above functions of management and we have discussed about their organization, what we have concluded, so here we given a small review about the whole report.
Planning is something that exists at every level of the organization. Therefore to reduce uncertainty the managers have to be more efficient in developing strategies for the upcoming future that help establish possibilities while setting goals and objectives but if you fail to achieve that screwed up, explore the cause of your failure, learn from it and always keep backup. Decisions should be based on the circumstances i.e. decisions might be both; rational or intuitive. If you feel feasible to share some of companies future goals to your employees or involve them while setting goals, so that they could see the clear image of that goal of what are chasing for.
Organizing is one of the core tasks to be done i.e. the company follows focus strategies to understand self and market. As an organic organization, it is independent, works on its own potential and has the ability to adopt the changing environment.
Leading has a quality that can convenes Employees if there are some conflicts arises between the sub-ordinates or there are some different issues among the employees related to job satisfaction, salaries etc., so if a manager has a leadership quality so he will run the organization well, because according to them Leaders are not made leaders are born.
Controlling is about checking the mistakes and errors, and according to a company perspective, a manager has a co-ordination with the department and the Sub-ordinates as well. The company checks its Bank statement, financial position, employees working period and they comparing with the previous years, so that the organization goal has achieved or not.