Managerial Functions


There are four basic managerial functions are planning, organizing, lending, and controlling. By applying these functions to the various organizational resources—human, financial, physical, and information—the organization achieves different levels of effectiveness and efficiency.

  • Planning: The first managerial function is the process of determining the organization’s desired future position and deciding how best to get there.
  • Organizing: It is the process of designing jobs, grouping jobs into manageable units, and establishing patterns of authority among jobs and groups of jobs. This process designs the basic structure of the organization.
  • Leading: It is the third managerial function, is the process of getting members of the organization to work together toward the organization’s goal. Major components of leading include motivating employees, managing group dynamics, and leadership per se, all of which are closely related to major areas of organizational behavior.
  • Controlling: It is the process of monitoring and correcting the actions of the organization and its people to keep them headed toward their goals.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Strategic Management


Strategic management is the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives. It comprises nine critical tasks:

  1. Formulate the company’s mission, including broad statements about its purpose, philosophy, and goals.
  2. Conduct an analysis that reflects the company’s internal conditions and capabilities.
  3. Assess the company’s external environment, including both the competitive and the general contextual factors.
  4. Analyze the company’s options by matching its resources with the external environment.
  5. Identify the most desirable options by evaluating each option in light of the company’s mission.
  6. Select a set of long-term objectives and grand strategies that will achieve the most desirable options.
  7. Develop annual objectives and short-term strategies that are compatible with the selected set of long-term objectives and grand strategies.
  8. Implement the strategic choices by means of budgeted resource allocations in which the matching of tasks, people, structures, technologies, and reward systems is emphasized.
  9. Evaluate the success of the strategic process as an input for future decision-making.

As these nine tasks indicate, strategic management involves the planning, directing, organizing, and controlling of a company’s strategy-related decisions and actions.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Context Connotation of Organizing


Organizing is the means by which management blends human and material resources through the design of a formal structure of tasks and authority. It involves classifying and dividing work into manageable units by:

  1. Determining specific work activities necessary to accomplish the organizational objectives;
  2. Grouping work activities into a logical pattern or structure, and
  3. Assigning the activities to specific positions and people.

Included in the organizing function are the important steps of staffing the organization with competent employees who are capable of performing the necessary activities, and assigning authority and responsibility to these individuals.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Organizing


Rarely are individuals in an organization able to achieve common goals without some form of structure. Organizing is the structuring of resources and activities to accomplish objectives in an efficient and effective manner. Managers organize by reviewing plans and determining what activities are necessary to implement them; then, they divide the work into small units and assign it to specific individuals, groups, or departments. As companies reorganize for greater efficiency, more often than not, they are organizing work into teams to handle core processes such as new product development instead of organizing around traditional departments such as marketing and production.

Organizing is important for several reasons. It helps create synergy, whereby the effect of a whole system equals more than that of its parts. It also establishes lines of authority, improves communication, helps avoid the duplication of resources, and can improve competitiveness by speeding up decision making.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Role of Control in Management Process


Control is the task of ensuring that activities are providing the desired results. In its most general sense, controlling means setting a target, measuring performance, and taking corrective action as required. The goal of control system is to have no unpleasant surprises in the future.

Sometimes being out of control doesn’t have especially serious consequences, as when your dry cleaner is “only” an hour late in finding your freshly cleaned blouse. Often, though, the consequences are more severe. Upon assuming responsibility for a unit, managers decide “where are we going” (Planning), who will do what (Organizing), and how to motivate their troops (Leading).

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

The Manager’s Job of HRM


There are certain basic functions all managers perform. They are planning, organizing, staffing, leading, and controlling. In total, they represent what managers call the management process. Some of the specific activities involved in each function include:

  • Planning. Establishing goals and standards; developing rules and procedures; developing plans and forecasting.
  • Organizing. Giving each subordinate a specific task; establishing departments; delegating authority to subordinates; establishing channels of authority and communication; coordinating the work of subordinates.
  • Staffing. Determining what type of people should be hired; recruiting prospective employees; selecting employees; setting performance standards; compensating employees; evaluating performance; counselling employees; training and developing employees.
  • Leading. Getting others to get the job done; maintaining morale; motivating subordinates.
  • Controlling. Setting standards such as sales quotas, quality standards, or production levels; checking to see how actual performance compares with these standards; taking corrective action as needed.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Picking up on Lower Transaction Costs


Suppose a firm was pondering whether to integrate vertically into supplier activities or to keep buying supplies from the open market. One important factor is the decision would be the cost of each option. If the firm was buying the supplies from the market, it would have to search for the best price, best quality, and best on-time delivery, negotiate and sign a contract, and make sure that the terms of the contract are enforced. All these activities have costs associated with them—transaction costs. If the firm decided to integrate vertically, it would have to establish a value chain for the activities. It would hire, train, organize, motivate, and lead employees who carry out the activities of the supplier value chain internally—all of which also costs money. The firm would integrate vertically if its costs of organizing transactions internally are lower than those of doing so externally. That would depend on four things: asset specificity, uncertainty, the frequency of transactions, and whether the supplier is opportunistic. Asset specificity refers to how idiosyncratic an asset in the relationship becomes as it (the relationship) develops.

 

All else being equal, the higher the asset specificity, uncertainty, and frequency of transactions, the higher the transaction costs of market transactions, and the more the manufacturer should think about vertical integration.

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com