What is the systematic process of making decisions about goals and activities that an organization will pursue in the future?

Functions of management are a systematic way of doing things. Management is a process to emphasize that all managers, irrespective of their aptitude or skill, engage in some inter-related functions to achieve their desired goals.

4 Functions of management are planning, organizing, leading, and controlling that managers perform to accomplish business goals efficiently.

First, managers must set a plan, organize resources according to the plan, lead employees to work towards the plan, and control everything by monitoring and measuring the plan’s effectiveness.

Management process/functions involve 4 basic activities;

1. Planning and Decision Making: Determining Courses of Action,
2. Organizing: Coordinating Activities and Resources,
3. Leading: Managing, Motivating and Directing People,
4. Controlling: Monitoring and Evaluating activities.

1. Planning and Decision Making – Determining Courses of Action

Looking ahead into the future and predicting possible trends or occurrences that are likely to influence the working situation is the most vital quality and manager’s job. Planning means setting an organization’s goals and deciding how best to achieve them.

Planning is decision-making regarding the goals and setting the future course of action from a set of alternatives to reach them.

The plan helps maintain managerial effectiveness as it works as a guide for future activities. Selecting goals as well as the paths to achieve them is what planning involves.

Planning involves selecting missions and objectives and the actions to achieve them. It requires decision-making or choosing future courses of action from among alternatives.

In short, planning means determining what the organization’s position and the situation should be in the future and decide how best to bring about that situation.

Planning helps maintain managerial effectiveness by guiding future activities.

For a manager, planning and decision-making require an ability to foresee, visualize, and look ahead purposefully.

2. Organizing – Coordinating Activities and Resources

Organizing can be defined as the process by which the established plans are moved closer to realization.

Once a manager sets goals and develops plans, his next managerial function is organizing human resources and other resources identified as necessary by the plan to reach the goal.

Organizing involves determining how activities and resources are to be assembled and coordinated.

The organization can also be defined as an intentionally formalized structure of positions or roles for people to fill in an organization.

Organizing produces a structure of relationships in an organization, and it is through these structured relationships, plans are pursued.

Organizing is part of managing, which involves establishing an intentional structure of roles for people to fill in the organization.

It is intentional in the sense of making sure that all the tasks necessary to accomplish goals are assigned to people who can do the best.

The purpose of an organizational structure is to create an environment for the best human performance.

The structure must define the task to be done. The rules so established must also be designed in light of the abilities and motivations of the people available.

Staffing is related to organizing, and it involves filling and keeping filled the positions in the organization structure.

This can be done by determining the positions to be filled, identifying the requirement of the workforce, filling the vacancies, and training employees so that the assigned tasks are accomplished effectively and efficiently.

The managerial functions of promotion, demotion, discharge, dismissal, transfer, etc.  They have also included the broad task “staffing.” staffing ensures the placement of the right person in the right position.

Organizing decides where decisions will be made, who will do what jobs and tasks, who will work for whom, and how resources will assemble.

3. Leading – Managing, Motivating, and Directing People

The third basic managerial function is leading. It is the skills of influencing people for a particular purpose or reason. Leading is considered to be the most important and challenging of all managerial activities.

Leading is influencing or prompting the organization member to work together with the interest of the organization.

Creating a positive attitude towards the work and goals among the members of the organization is called leading. It is required as it helps to serve the objective of effectiveness and efficiency by changing the behavior of the employees.

Leading involves several deferment processes and activates.

The functions of direction, motivation, communication, and coordination are considered a part of the leading processor system.

Coordinating is also essential in leading.

Most authors do not consider it a separate function of management.

Rather they regard coordinating as the essence of managership for achieving harmony among individual efforts towards accomplishing group targets.

Motivating is an essential quality for leading. Motivating is the management process of influencing people’s behavior based on knowing what cause and channel sustain human behavior in a particular committed direction.

Efficient managers need to be effective leaders.

Since leadership implies fellowship and people tend to follow those who offer a means of satisfying their own needs, hopes, and aspirations, understandably, leading involves motivation leadership styles and approaches, and communication.

4. Controlling – Monitoring and Evaluating Activities

Monitoring the organizational progress toward goal fulfillment is called controlling. Thus, monitoring progress is essential to ensure the achievement of organizational goals.

Controlling is measuring, comparing, finding deviation, and correcting the organizational activities performed to achieve the goals or objectives. Thus, controlling consists of activities like; measuring the performance, comparing with the existing standard and finding the deviations, and correcting the deviations.

Control activities generally relate to the measurement of achievement or results of actions taken to attain the goal.

Some means of controlling, like the budget for expenses, inspection records, and the record of labor hours lost, are generally familiar. Each measure also shows whether plans are working out.

If deviations persist, correction is indicated. Whenever results differ from the planned action, persons responsible are to be identified, and necessary actions must be taken to improve performance.

Thus outcomes are controlled by controlling what people do. Controlling is the last but not the least important management function process.

It is rightly said, “planning without controlling is useless.” In short, we can say the controlling enables the accomplishment of the plan.

Conclusion: Management is a process of interrelated functions.

All the management functions of its process are interrelated and cannot be skipped.

The management process designs and maintains an environment in which personnel’s, working together in groups accomplish efficiently selected aims.

All managers carry out management’s main functions: planning, organizing, staffing, leading, and controlling. But depending on the skills and position on an organizational level, the time and labor spent in each function will differ.

Planning, organizing, leading, and controlling are the 4 functions, which work as a continuous process.

Ignore?

conscious, systematic process of making decisions about goals and activities that an individual, group, work unit, organization will pursue in the future

planning leads to the ultimate

strategy, mission, vision, and goals

define Situation Analysis

planners use, within wine and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration

analyzing the situation includes

studying past events, examining current conditions, and forecasting future trends

outcome of situation analysis:

identification and diagnosis of planning assumptions, issues, and problems

generating alternative goals and plans includes

generating alternative goals that may be pursued and alternative plans for achieving those goals

target or end that management desires to reach

what does SMART stand for?

Specific - precise, employees need to know what to do to achieve goals

designed to achieve goals, not likely to be repeated in the future

ongoing activities, achieve enduring set of goals, may become more permanent policies for running an organization

specify actions to take when a company's initial plans have not worked well or events in external environment require sudden change

what is involved in Selecting Goals and Plans?

evaluating goals (identify priorities and trade-offs among the goals and plans)

what plays the most crucial role in Evaluating Goals and Plans?

narrative that describes a particular set of future conditions

crises and allows greater flexibility and responsiveness

selecting goals and plans helps firms anticipate and manage what?

Implementing Goals and Plans

Managers and employees must understand the plan, have the resources to implement it, and be motivated to do so

allowing employees to help develop a goal/plan facilitates

a better understanding of the plan, commitment, more highly motivated employees

managers and employees must _______ the plan, have the resources to _______ it, and be _______ to do so

managers and employees must understand the plan, have the resources to implement it, and be motivated to do so

link The Plan to other systems in the organization such as

Monitoring and Controlling Performance allows you to

know whether or not your plan is succeeding

effectively monitor and control your performance by

monitoring performance of work units against it's goals and plans.

what are the Levels of Planning?

Top Level, Middle Level, Front Line, Team Leaders

define Strategic Planning

set of procedures for making decisions about organization's long-term goals and strategies

who is responsible for strategic plan? what does it entail?

senior executives DO NOT _______ or _______ the entire strategic plan personally

major targets or end results relating to organization's long term goals and strategies

Strategic Managers/Top Level Managers establish

goals aimed at effectiveness (providing appropriate outputs) and efficiency (high ratio of outputs to inputs)

typical strategic goals include

pattern of actions and resource allocation designed to achieve organizations and goals

what supports the Strategy?

Tactical and Operational Planning

translates broad strategic goals/plans into specific goals/plans relevant to a particular portion of the organization (Marketing or Human Resources)

define Operational Planning

identifying the specific procedures and processes required at lower levels of the organization

consistent, mutually supportive, focused on achieving common purpose and direction

define Strategic Management

process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies

clear and concise expression of organization's basic purpose

how does one Analyze External Opportunities and Threats?

create an accurate and thorough evaluation of the competitive environment and microenvironment

major product lines and significant market segments

growth rates for the entire industry or key market segments

give examples of Industry Forces

threat of new industry entrants

define Competitor Profile

major competitors and their market shares

define Competitor Analysis

goals, strategies, strengths, and weaknesses of each competitor

define Competitor Advantages

the degree to which industry competitors have differentiated their goods and services or achieved cost leadership

level of political activity undertaken by organizations and associations in the industry

define Political Activity as it relates to Analysis of External Opportunities and Threats

current and potential social issues and effects on the industry

define Social Issues as it relates to Analysis of External Opportunities and Threats

consumer, environmental, an activist groups that try to influence the industry

define Social Interest Groups as it relates to Analysis of External Opportunities and Threats

define Macroeconomic Conditions

affect supply, demand, growth, competition, and profitability within an industry

define Technological Factors as it relates to Analysis of External Opportunities and Threats

scientific and technological methods that affect the industry, particularly recent and potential innovations

groups and individuals who affect and are affected by the achievement of an organization's mission, goals, and strategies.

give examples of stakeholders

suppliers, buyers, competitors, government, regulatory agencies, unions, employee groups, financial community, owners and shareholders, trade associations

define Environmental Analysis

provides map of stakeholders and the ways they influence the organization

define Financial Analysis

financial strengths and weaknesses (financial statements)

define Human Resources Assessment

strengths and weaknesses of all levels of managers and employees

strengths and weaknesses of major marketing activities, identifies markets, key market segments, organizations competitive position within key markets

define Operation Analysis

strengths and weaknesses of organization's manufacturing, production, or service delivering activities

inputs to a system that can enhance performance

give examples of Tangible Resources

real estate, production facilities, raw materials

give examples of Intangible Resources

company reputation, culture, technical knowledge, patents, accumulated learning and experience

resources give a company competitive advantage IF:

resources are instrumental for creating consumer value

unique skills and knowledge an organization possesses that gives it an edge over competitors

the process of assessing how well a company's basic functions and skills compare with those of another company (or set companies)

Strengths/Weaknesses - internal resources

define Corporate Strategy

the set of business, markets, and industries in which an organization competes

employed for organization that operates a singe business and competes in a single industry

define Vertical Integration

acquisition or development of new business that produce parts or components of an organization's product

define Related Diversification

used to add new businesses that produce related products or are involved in related markets and activities

define Unrelated Diversification

add new businesses that produce unrelated products or are involved in unrelated market activities

diversified business of an organization

high growth, weak competitive position business

high growth, strong competitive position

low growth business, strong competitive position

low growth, weak competitive position

can help evaluate strategy

major actions by which an organization competes in a particular industry or market

competitive advantage results from

keeping costs low and offering products that are unique and highly valued

build competitive advantage by being efficient and offering standard, no-frill product

define Differentiation Strategy

build competitive advantage by being unique in it's industry or market segment along dimensions that customers value

The process of developing and implementing new ideas.

the most effective strategy is one that...

competitors are unwilling or unable to imitate

define Functional Strategies

implemented by each functional area of the organization's business strategy

major functional areas of a business include

production, human resources, marketing, research and development, finance, and distribution.

which aspects of a company must support the Strategy?

organization structure, technology, human resources, employee rewards systems, information systems, organization culture, and leadership style

senior executives still may oversee the implementation process, but are

placing much greater responsibility and authority in the hands of others

define Strategic Control System

designed to support managers in evaluating the organization's progress regarding its strategy and, when discrepancies exist, taking corrective action.

state that exists when decision makers have accurate and comprehensive information

the state that exists when decision makers have insufficient information

the stat that exists when the probability of success is less than 100% and losses can occur

risk and uncertainty are linked with

a decision realizing the best possible outcome

choosing an option that is acceptable, although not necessarily the best or perfect

achieving the best possible balance among several goals

what is a Psychological Bias?

biases that interfere with objective rationality

define Illusion of Control

people's belief that they can influence events, even when they have no control over what will happen

a decision bias influenced by the way in which a problem or decision alternative is phrased or presented.

define Discounting the Future

a bias weighting short-term costs and benefits more heavily than longer-term costs and benefits

a phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus

a condition that occurs when a decision-making group loses sight of its original goal and a new, less important goal emerges

a person who has the ob of criticizing ideas to ensure that their downsides are fully explored

a structured debate comparing two conflicting courses of action

process in which group members generate as many ideas about a problem as they can