functional management is the most common type of organizational management

8/7/2019 Functional management is the most common type of organizational management

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Functional managementis the most common type of organizational

management. The organization is grouped by areas of specialty within different

functional areas (e.g., finance, marketing, and engineering). Some refer to a

functional area as a "silo." Communication generally occurs within a single

department. If information or project work is needed from another department, a

request is transmitted up to the department head, who communicates the request to

the other department head. Otherwise, communication stays within the department.

Team members complete project work in addition to normal department work.

Universality of management

Universality of management refers to the transferability of its principle, techniques,

functions and skills from one time, place or job to another. All these management

practices are equally practicable and applicable everywhere in the world

irrespective of the nature of the job, differences in customs, habits and social laws.

Managerial functions and techniques can be practiced in every organized effort.

Whether it is a business, shop, industry, government office, educational, social,

profitable or non-profitable organization, management principles, functions and

techniques are profitably and productively applied. A successful manager of a

company or a field can be equally successful in the other. That is why a manger of

a company can be safely transferred from one department, company or area to


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another. In Pakistan it is a routine practice of transferring bureaucrats from one

department, institution to another with quite different work.

Universality of management can be judged from the fact that an army general can

efficiently hold a position of a company or a country, although the nature of

technical work is quite different in both places ; but the principles of performing

the jobs are same

According to Fayol and Urwick, management has some principles, like unity of

command or division of work which can be ignored nowhere. Universality never

means that one particular job should be performed by every manager. But it means

that all jobs have principles in common that must be followed by every type of

manager.

Defining MBO

A careful study of the above definitions bring out the following features of MBO.


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1. Management by Objectives is a philosophy or a system, and not merely

technique.

2. It emphasizes participative goal setting.

3. It clearly defines each individual responsibilities in terms of results.

4. If focuses attention on what must be accomplished (goals0 rather than on

how it is to be accomplished.

5. It converts objective needs into personal goals at every level in the

organization.

6. It establishes standards or yardsticks (goals ) as operation guides and also as

basis of performance evaluation.

7. It is a system intentionally directed toward effective and efficient attainment

of organizational and personal goals.

8. MBO process (or management by Objective cycle or key elements of

management by Objectives or minimum requirements of management b y

objectives.

There are four important and essential steps or elements in the management by

Objectives process as follows :


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Setting Objectives.

Goal-setting or objective setting is a multistage process. It starts with the

examining of the current stat3e of affaires, level of efficiency, threats, and

opportunities. Then the key result areas are identified, such as product markets,

improved services, lowered costs, work simplification, employee motivation,

profitability innovation and social responsibility. The performance of these areas is

critical for organization in the sense that failure in these areas may result in failure

of the organization. And this is why they are known as key result areas. Peter

says, objectives are important in every area where performance and results directly

affect the survival and prosperity of business.

Thereafter interacting or joint goal setting takes place. Subordinates are actively

involved in formulating goals at every level in the organization such goals are

finished with reference to the overall objectives of the organization. Care is taken

to establish goals that are measurable and contribute to the element also. Such

goals may be long rang, medium rang, or short range. Further, resources

availability also becomes an important consideration in goal setting. There is

always need to decide priorities among the different objectives keeping in view the


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environment within which business operates as well as possible further changes in

it.

Developing Action Plans.

Set objectives must be translated into action plans. It requires assignment of

specific responsibilities to different departments, division, and individuals. It also

requires allocation of necessary resources needed to perform the assigned

responsibilities. Time dimensions are also to be decided in order that targets are

reached without any unwarranted delays.

Periodic Review or Monitoring The Progress.

After setting objectives and developing action plans, it is necessary to establish a

proper monitoring system with a view to regularly keeping the activities. He

progress is monitored without day path leading to the ultimate objective. It is

ensured that the deviations found, if any, are thoroughly discussed and immediate

corrective actions are taken to set them right on the course. Such a regular

monitoring and periodic review not only provide feedback which is essential for

completion of work in time. But also motivates the managers accountable for


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performance. Periodic review and monitoring are done at departmental level

generally.

Performance appraisal.

This is the last phase of MBO program that evaluates performance annually. The

annual review or appraisal is comprehensive and is done at the organization level.

The actual annual results are evaluated against the set objectives. Such assessment

is also used for determining targets for next year, for modification in standards

(goals0 if needed, and for taking corrective actions in order to avoid deviations

form predetermined objectives.

Features and characteristics of Management

1. PLANNING (To know about the purpose and destination. How to get

the desire purpose and why should be clear, which is called

planning. It is done by the top management but at each

level of management some part of planning / involved.


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2. ORGANIZATION (To adopt the process and structure about the

planning in a better way by people is called organizing. It

is arrangement of peoples and resources to achieve the desired goals.

3. Controlling (to ensure about all the above factors are going properly

and the desired goals are achieving if there is any error is found, the

controlling is operated with some extend.)

4. LEADER SHIP There is important quality of successful manager

which is combination of by birth and child hood. Education as well as

technical skills The managers should be leadership skilled which

enhance in quality by various kinds as Personality neat & clean

career, good knowledge telling and writing power , decision power ,

public dealing , problem solving approach, leading attitude in a mind,

but friendly and brother attitude in practice , use of resources

effective, minimize the waste.

1- SOCIAL MANAGEMENT

In any organization the main objection is to minimize the profit

in spite of other values. But the real organization need to


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3-MANAGEMENT AS CULTURE

A the single person have its own personality through which he is

appreciated or rejected or known similarly the personality of

organization is management culture. How the organization

behavior impression and imagine called the management

culture e.g good / neat and clean clean organization versus poor

/ dirty and lose organization.

4- INSTITUTIONAL LEVEL OF MANAGEMENT

In an organization when proper rules directives discipline,

authorizes and responsibilities are given then the management comes on

institutional level where the management goes through hard

and fast rule and managed very perfect and result oriented.


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5-COMMITTEE MANAGEMENT

The committee is ------ for some special task within specific time period and

special powers. The management of committee exercise such

type of special powers authorities and hierarchy is called committee

management. This management has special and temporary title of name

power and facilities which automatically finished by the completion of task.

6-PRODUCTION MANAGEMENT

This type of management is involve in a production based organizations

where \organization object is maximize the output. This mean a certain

technical skills of management are required which use to maximize the

production and minimize the waste , so the kind of management do in this

way called production management.

7- SALES MANAGEMENT

Sales Management is a part of broader filed of marketing or we can say that

it is part of the field of management which concerns its self with the


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managerial aspects of marketing. Major parts of SALES

MANAGEMENT.

1. Functions of Sales management

2. Planning and execution

3. Planning consists or research and evaluation of

organization goals or targets.

4. Execution deals with assignment and __________ of work force

and made good communication classification of sales

management.

Management sale and service personal.

8 -FINANCIAL MANAGEMENT


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The role of finance is very important in an organization so to

resolve the financial matters effectively by the management.

Important factors of financial management.

1. Interest Role

2. Planning Difficulties

3. Demand of Capital

4. business and individual in with

5. Accounting Problem

6. Time & risk management

7. Cash flow v/s earning

8. The capital market

9. Primary & Secondary market

Financial management may help to serve and secure the

interest of organization in field of finance.


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MANAGEMENT INBORN OR ACQUIRED ABILITY

Neither management nor leadership skills are inborn but acquired.

Management is about planning, controlling and putting appropriate

structures in place. Leadership is anticipating and coping with change and

people, and adopting a visionary stance. More change requires more

leadership.

IMPORTANCE OF MANAGEMENT

Supervisors and managers must not only have vocational, technical

knowledge about their specialised field of operation in the organisation, but

also knowledge about management functions and principles. The work

component of any job rests on two pillars, namely technical work and

management work.

The importance of management education, management development and

management training cannot be over emphasised. Whether the knowledge

about management principles is obtained through formal study programs

at Universities or internally through on the job training or through external

seminars or programs, it is of the utmost importance for any person in any

job in life; even for the self-employed, entrepreneurs, Kings, Presidents of

Countries, the richest people in life and even the lowest level of jobs.


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Any information management course must also include the principles of

performance management, as performance management is about

measuring all five the elements in different ways, which are to be managed.

In order to manage those five elements, detailed information will be needed

to plan, organise, control, lead and to take corrective actions in the

workplace.

Top Management members must be able to plan, organise, control and lead

the organisation and departments with a focus on understanding and

influencing the environment, setting the strategy and gaining commitment,

planning, implementing and monitoring strategies and evaluating and

improving performance. They must therefore have high capabilities with

regard to human relations inwards and outwards, strategic planning, team

building, leadership, negotiation and performance management.

Middle Management members must be able to plan, organise, control and

lead departments and sections with a focus on assistance upwards for

application of scientific methods and assistance downwards for application

of scientific methods. They must have the same capabilities as Senior

Managers as well as Supervisory Managers and also be good at interviewing

techniques, goal achievement, conflict handling tactics and project

management.


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Supervisory Management members must be able to plan, organise, control

and lead sections, units and individuals with a focus on operations, finance,

people, information and time.

Definition of Planning as a management function:

Planning for all levels is about forecasting, developing objectives,

programming, scheduling, budgeting, developing policies and developing

procedures. Forecasting, in turn, is about looking ahead for needs and

opportunities. Developing objectives is about determining results to be

achieved. Programming is about establishing the sequence of work steps.

Scheduling is about establishing a time sequence for work steps. Budgeting

is about allocating resources for achievement of objectives. Developing

policies is about documenting standing decisions for recurring situations.

Developing procedures is about standardisation of work, which must be

done uniformly.


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Definition of Organising as a management function:

Organising for all levels is about developing organisation structures,

delegating and developing relationships. Developing organisation

structures, in turn, is about grouping of work among people for

effectiveness. Delegating is about downloading of responsibility, authority

and accountability to lower levels. Developing relationships is about

creating conditions for co-operative efforts of people.

Definition of Controlling as a management function:

Controlling for all levels is about setting of standards, performance

measurement, performance evaluation and performance correction. Setting

of standards, in turn, is about establishing criteria for evaluation of work

results. Performance measurement is about recording and reporting of

work results obtained. Performance evaluation is about analysing,

interpreting and determining the worth of results. Correction of

performance is about rectifying and improving work results.

Definition of Leading as a management function:

Leading or directive leadership for all levels is about decision-making,

communicating, motivating, selection of people and developing of people.

Decision-making, in turn, is about reaching conclusions and judgements for

action. Communicating is about creating understanding among people.


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Motivating is about inspiring, encouraging and impelling people for action.

Selection of people is about choosing people for positions and

advancement. Developing of people is about improving knowledge,

attitudes and skills.

Continuous education:

No single degree or program can give you all the management knowledge

you may need. It is a question of never-ending continuous education,

whereby you constantly take stock of your present knowledge base and

compare it to what is needed in order to identify the shortcomings. You

must then try to attend those courses, which can fill the gap in your

knowledge base.

Lack of management skills:

A general lack of management skills in employees can be detrimental to any

organisation. Lack of management skills can lead to poor decisions,

disheartening of employees, lower productivity, lower profits and in the end

also be responsible for increase in poverty and increase in the

unemployment rate. Good examples of the results of too little management

skills can be seen in the poor performance of the new South African


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Government Departments and Semi-Government Organisations, where

mismanagement and corruption are rife.

Earning your license as Professional Manager:

You can earn your license as Professional Manager by learning all the

management skills and applying it to augment your knowledge base

through practical experience.


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The Five Functions of Management

Creative Problem Solving

Plannin

g

Organizin

g

Staffin

g

Directin

g

Controllin

g

A manager who happens to manage a farm or horticultural

business.

A manager challenged to make efficient use of resources.

A manager challenged with getting things done through

people.

A manager who has opportunity to use of all the tools of

management that any other manager uses.

A manager who has a way of life like any other manager.

Management Excel is about changing people not about changing businesses. We

change people by helping them improve their management skills. Our expectation

is that with these tools, they are then likely to change their businesses.
http://www.ag.ohio-state.edu/~mgtexcel/CPS.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Planning.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Planning.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Organize.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Organize.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Staffing.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Staffing.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Direct.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Direct.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Control.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Control.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Planning.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Planning.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Organize.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Organize.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Staffing.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Staffing.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Direct.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Direct.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Control.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Control.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/CPS.html


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Management

In Management Excel, we start with an assumption of the universality of

management. Management is management. Management is generic. Management

principles are general rather than specific to a type of firm or organization.

However, management is universal only if the manager has become familiar with

the specific situation in which it is applied. Production technology, customer

characteristics and the culture of the industry are examples of specifics that

managers need to learn to be effective in applying their generic management skills.

A definition:

Management is creative problem solving. This creative problem solving is

accomplished through four functions of management: planning, organizing,

leading and controlling. The intended result is the use of an organization's

resources in a way that accomplishes its mission and objectives.

In Management Excel, this standard definition is modified to align more closely

with our teaching objectives and to communicate more clearly the content of the

organizing function. Organizing is divided into organizing and staffing so that the

importance of staffing in small businesses receives emphasis along side organizing.

In the management literature, directing and leading are used interchangeably.

(Note figure of Management Excel wheel)


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Planningis the ongoing process of developing the business' mission and

objectives and determining how they will be accomplished. Planning includes both

the broadest view of the organization, e.g., its mission, and the narrowest, e.g., a

tactic for accomplishing a specific goal.

Organizingis establishing the internal organizational structure of the organization.

The focus is on division, coordination, and control of tasks and the flow of

information within the organization. It is in this function that managers distribute

authority to job holders.

Staffingis filling and keeping filled with qualified people all positions in the

business. Recruiting, hiring, training, evaluating and compensating are the specific

activities included in the function. In the family business, staffing includes all paid

and unpaid positions held by family members including the owner/operators.

Directingis influencing people's behavior through motivation, communication,

group dynamics, leadership and discipline. The purpose of directing is to channel

the behavior of all personnel to accomplish the organization's mission and

objectives while simultaneously helping them accomplish their own career

objectives.

Controllingis a four-step process of establishing performance standards based on

the firm's objectives, measuring and reporting actual performance, comparing the

two, and taking corrective or preventive action as necessary.
http://www.ag.ohio-state.edu/~mgtexcel/Planning.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Organize.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Staffing.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Direct.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Control.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Planning.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Organize.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Staffing.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Direct.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Control.html


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Each of these functions involves creative problem solving. Creative problem

solving is broader than problem finding, choice making or decision making. It

extends from analysis of the environment within which the business is functioning

to evaluation of the outcomes from the alternative implemented.

An Important Qualification to Success

Management success is gained through accomplishment of mission and objectives.

Managers fail when they do not accomplish mission and objectives. Success and

failure are tied directly to the reasons for being in business, i.e., mission and

objectives. However, accomplishing mission and objectives is not sufficient.

Success requires both effectiveness and efficiency. Managers who accomplish their

mission and objectives are said to be effective. Efficiency describes the

relationship between the amount of resources used (input) and the extent to which

objectives were accomplished (output). If the cost of accomplishing an objective is

prohibitive, then the objective is not realistic in the context of the firm's resources.

Additional planning is necessary.

Management Skills

Management Excel concentrates on building management skills. There are three

basic management skills: technical, human and conceptual. A technical skill is the

ability to use tools, techniques, and specialized knowledge to carry out a method,


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process, or procedure. Much of the technology that farmers know and can use so

well comes under this management skill. Human skills are used to build positive

interpersonal relationships, solve human relations problems, build acceptance of

one's co-workers, and relate to them in a way that their behavior is consistent with

the needs of the organization. Conceptual skills involve the ability to see the

organization as a whole and to solve problems in a way that benefits the entire

organization. Analytical, creative and intuitive talents make up the manager's

conceptual skills.

Introductory Management Excel programs (Managing for Success) pay little

attention to technical skills. Most managers in attendance have developed these

skills far beyond their human and conceptual skills. In some advanced

Management Excel programs, e.g., animal nutrition and financial management, the

emphasis is on integration of technical, human and conceptual skills rather than on

a more traditional technical approach.

The relative importance of conceptual, human and technical skills changes as a

person progresses from lower, to middle, to top management. Although all three

management skills are important at all three levels of management, conceptual

skills become relatively more important at the top level of management. The

consistently high level of importance of human skills helps us understand why

people problems are so often cited as a core cause of business failure.


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functional management is the most common type of organizational management

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