TWO TYPES OF FUNCTIONS, MANAGEMENT

FUNCTIONS PERFORMED BY A MANAGER

• A MANAGER “MANAGES’’ SOMETHING. THEREFORE, HE

MUST UNDERSTAND WHAT MANAGING MEANS.

• TWO TYPES OF FUNCTIONS IN A COMPANY :-

(A) MANAGEMENT OR MANAGERIAL FUNCTIONS

AND
(B) BUSINESS OR OPERATIONAL FUNCTIONS.
 CLASSIFICATION OF FUNCTIONS
• SITUATION ANALYSIS
• PLANNING:-
-SETTING OBJECTIVES
-ESTABLISHING STRATEGIES & TACTICS
-DETERMINING RESOURCES
A) MANAGERIAL FUNCTIONS -DECIDING MONITORING
MECHANISM
• ORGANIZING & IMPLEMENTING
• LEADING, DIRECTING,
MONITORING,EVALUATING,
CONTROLLING & MOTIVATING
• TAKING ACTIONS

• R&D
• PRODUCTION AND QUALITY CONTROL
B) BUSINESS FUNCTIONS
• MARKETING AND SALES
• FINANCE / ACCOUNTS
• PURCHASING
• HUMAN RESOURCE MANAGEMENT
• LEGAL AFFAIRS
FUNCTIONS PERFORMED BY A MANAGER

• MANAGING “SOMETHING” MEANS :-

A MANAGER MANAGING SOMETHING BY PERFORMING
MANAGERIAL FUNCTIONS AND NOT BY DOING THE JOB
OF A SUBORDINATE BY THE MANAGER HIMSELF.

• IN PRACTICE, MANY MANAGERS, UNCONSCIOUSLY

MANAGE SOMETHING BY ROUTINELY DOING THE JOB
OF A SUBORDINATE THEMSELVES.

FOR EXAMPLE ,
A FM MANAGING A SALES PERSON BY OFTEN MAKING
SALES CALLS HIMSELF, IS NOT MANAGING A SALES
PERSON. HE IS DOING THE JOB OF A SALES PERSON.
 BUSINESS AND MANAGEMENT
FUNCTIONS
• BOTH FUNCTIONS ARE ESSENTIAL FOR
CO’S AND FOR A MANAGER`S SUCCESS.
MUST BE GOOD AT BOTH.
E.G: A SM MUST BE GOOD AT MANAGING
VARIOUS ASPECTS OF PERSONAL
SELLING AND ALSO, A FAIRLY GOOD
SALESMAN
• MOVES UP, OPERATIONAL WORK
DECREASES BUT MANAGERIAL WORK
INCREASES.
 BUSINESS FUNCTIONS
VS
MANAGEMENT FUNCTIONS

0% 100%
BUSINESS / OPERATIONAL

MANAGMENT
FUNCTIONS

FUNCTIONS
100% 0%

SALES PERSON DIRECTOR

FM RSM NSM/MM
BUSINESS AND MANAGEMENT FUNCTIONS
• ON FIRST MANAGERIAL PROMOTION, AN
EMPLOYEE KNOWS LITTLE ABOUT MANAGEMENT
FUNCTIONS; THUS, HE CONTINUES DOING
OPERATIONAL WORK AND NEGLECTS HIS
MANAGERIAL WORK, UNLESS HE IS GIVEN
TRAINING ON MANAGEMENT

• MANAGERS ARE NOT “BORN. LIKE ENGINEERS

AND ACCOUNTANTS, THEY CAN BE TRAINED.

• AT THE FIRST LEVEL OF MANAGEMENT,

MANAGERS OR SUPERVISORS PREFERABLY
MUST HAVE SOME OPERATIONAL WORK.
INITIAL FORMAL MANAGEMENT TRAINING

• GENERALLY IT IS NOT GIVEN UNTIL SEVERAL

MONTHS, EVEN YEARS, AFTER A PERSON IS
PROMOTED TO A MANAGERIAL POSITION.

• SINK OR SWIM APPROACH IS STILL PREVALENT.

 FIRST TIME MANAGERS
OR
NEW MANAGERS

• THEY HAVE A NEW ROLE

• THEY MUST LEAVE THE OLD JOB BEHIND
• THEY MUST LEARN AND PERFORM NEW
RESPONSIBILITIES WHICH GO WITH THE NEW JOB.
• THEY MUST LEARN TO USE AUTHORITY WITHIN
THEIR AREA OF RESPOSIBILITY
• THEY ARE ACCOUNTABLE FOR THE
PERFORMANCE OF THEIR SUBORDINATES
 RESPONSIBILITY

TASK(S) TO BE DONE BY A PERSON IN

ORDER TO ACHIEVE COMPANY
OBJECTIVES.
 AUTHORITY

OFFICIAL RIGHT TO MAKE DECISIONS

AND TELL OTHERS WHAT TO DO. IT
RESIDES IN THE POSITION AND NOT IN
A PERSON.
 ACCOUNTABILITY

ENSURING THAT THE PERSON, WHO IS

SUPPOSED TO PERFORM A CERTAIN
TASK (RESPONSIBILITY), DOES
ACTUALLY PERFORM THE TASK
CORRECTLY

• IT CANNOT BE DELEGATED
 WHAT IS MANAGEMENT
• A CONSCIOUS PROCESS OF WORKING WITH HUMAN
AND NON-HUMAN RESOURCES, * EFFECTIVELY AND
EFFICIENTLY, TO ACHIEVE COMPANY’S COMMERCIAL
AND FINANCIAL OBJECTIVES.

• MAIN ELEMENTS OF MANAGEMENT

A) CONSCIOUS PROCESS
B) WORKING WITH AND THROUGH PEOPLE
C) EFFECTIVE AND EFFICIENT USE OF RESOURCES
D) ACHIEVING COMPANY GOALS / OBJECTIVES.

 MACHINES(TECNOLOGY), MONEY, MATERIALS,

METHODS,PRODUCTS, TIME ETC. USED AS INPUTS
TO PRODUCE OUTPUTS.
OVERALL MANAGEMENT PROCESS

INPUTS

PROCESS

OUTPUTS
 THE MANAGEMENT PROCESS
FIVE PHASES OF MANAGEMENT
1) SITUATION ANALYSIS
GATHERING, STUDYING
AND ANALYING FACTS
ABOUT PAST & PRESENT.
MAKING CONCLUSIONS
AND PREDICTING THEIR
EFFECTS ON FUTURE

2) PLANNING
5) TAKING ACTIONS
• SETTING OBJECTIVES OR
GOALS,
• MAKING STRATEGIES /
TACTICS
• DETERMING RESOURCES
4) LEADING, DIRECTING, • DECIDING MONITORING
MONITORING,EVALUATING, MECHANISM
CONTROLLING, MOTIVATING

3) ORGANIZING AND IMPLEMENTING

ORGANIZATIONAL STRUCTURE, STAFFING, GIVING
RESPONSIBILITIES, EMPOWERING, TRAINING,
 MANAGEMENT

• NEEDED IN ALL COMPANIES, IN ALL FUNCTIONS

AND AT ALL LEVELS.
• MOST OF MANAGEMENT IS COMMON SENSE BUT
FOR MANY, IT IS DIFFICULT.
• MANAGEMENT CAN BE LEARNT THROUGH
BUSINESS COURSES OR THROUGH EXPERIENCE.
• COURSES MAKE LEARNING FAST.
 MANAGEMENT

EFFECTIVE AND EFFICIENT MANAGEMENT IS

PROBABLY THE MAIN RESOURCE OF MDCs

AND
IT IS THE MOST NEEDED RESOURCE OF LDCs

( Peter Drucker )