A manager’s primary challenge is to solve
problems. Four major functions at the heart of management are planning,
organizing, leading, and controlling (the P-O-L-C framework). The four
functions are highly integrated when carried out in the day-to-day realities of
running an organization. Although these functions may not accurately depict the
day-to-day actions of actual managers on any given day, the
P-O-L-C categorization of management functions continues to serve as an
effective framework for classifying the activities managers engage in as they
attempt to achieve organizational goals.
Planning
Planning
is the function of management that involves setting objectives and determining
a course of action for achieving those objectives. Planning requires that
managers be aware of environmental conditions facing their organization and
forecast future conditions. It also requires that managers be good decision
makers.
Planning is a process consisting of several steps. The process
begins with environmental scanning, where planners must be aware
of the critical contingencies and trends facing their organizations in terms of
economic conditions, their competitors, and their customers. Planners must then
attempt to forecast future conditions. These forecasts form the basis for
planning.
Planners
must establish objectives, which are statements of tangible actions that need
to be achieved, and a timeline for their completion. Planners must then
identify alternative courses of action for achieving objectives. After
evaluating the various alternatives, planners must make decisions about the best
courses of action for achieving objectives. They then formulate necessary steps
and ensure effective implementation of plans. Finally, planners must constantly
evaluate the success of their plans and take corrective action when necessary.
There
are many different types of plans and planning.
Strategic planning involves analyzing competitive opportunities and threats,
as well as the strengths and weaknesses of the organization, and then
determining how to position the organization to compete effectively in their
environment. Strategic planning has a long time frame, often three years or
more. Strategic planning generally includes the entire organization and
includes formulation of objectives. Strategic planning is often based on the
organization’s mission, which is its fundamental reason for existence. An
organization’s top management most often conducts strategic planning.
Tactical planning is intermediate-range (one to three years) planning that
is designed to develop relatively concrete and specific means to implement the
strategic plan. Middle-level managers often engage in tactical planning.
Operational planning generally assumes the existence of organization-wide or
subunit goals and objectives and specifies ways to achieve them. Operational
planning is short-range (less than a year) planning that is designed to develop
specific action steps that support the strategic and tactical plans.
Organizing
Organizing
is the function of management that involves developing an organizational
structure and allocating human resources to ensure the accomplishment of
objectives. The structure of the organization is the framework within which
effort is coordinated. The structure is usually represented by an organization
chart, which provides a graphic representation of the chain of command within
an organization. Decisions made about the structure of an organization are
generally referred to as organizational design decisions.
Organizing
also involves the design of individual jobs within the organization. Decisions
must be made about the duties and responsibilities of individual jobs, as well
as the manner in which the duties should be carried out. Decisions made about
the nature of jobs within the organization are generally called “job design”
decisions.
Organizing
at the level of the organization involves deciding how best to departmentalize,
or cluster, jobs into departments to coordinate effort effectively. There are
many different ways to departmentalize, including organizing by function,
product, geography, or customer. Many larger organizations use multiple methods
of departmentalization.
Organizing at the level of a particular job involves how best to
design individual jobs to most effectively use human resources. Traditionally, job design was based on principles of division of
labor and specialization, which assumed that the more narrow the job content,
the more proficient the individual performing the job could become. However,
experience has shown that it is possible for jobs to become too narrow and
specialized. For example, consider how much you would like to screw lids on
jars one day after another, as you might have done many decades ago if you
worked in a company that made and sold jellies and jams. When job fatigue
results from such processes, negative outcomes are often the result, including
decreased job satisfaction and organizational commitment, increased
absenteeism, turnover, and accidents.
Recently, many organizations have attempted to strike a balance
between the need for worker specialization and the need for workers to have
jobs that entail variety and autonomy. Many jobs are now designed based on such
principles as empowerment, job enrichment and teamwork. For example, HUI Manufacturing, a custom sheet
metal fabricator, has done away with traditional “departments” to focus on
listening and responding to customer needs. From company-wide meetings to team
huddles, HUI employees know and understand their customers and how HUI might
service them best. [3]
Leading
Leading
involves the social and informal sources of influence that you use to inspire
action taken by others. If managers are effective leaders, their subordinates
will be enthusiastic about exerting effort to attain organizational objectives.
Behavioral
sciences, such as psychology and sociology, have made many contributions to
understanding this function of management. Personality research and studies of
job attitudes provide important information as to how managers can most
effectively lead subordinates. For example, this research tells us that to
become effective at leading, managers must first understand their subordinates’
personalities, values, attitudes, and emotions.
Studies
of motivation and motivation theory provide important information about the
ways in which workers can be energized to put forth productive effort. Studies
of communication provide direction as to how managers can effectively and
persuasively communicate. Studies of leadership and leadership style provide
information regarding questions, such as, “What makes a manager a good leader?”
and “In what situations are certain leadership styles most appropriate and
effective?”
Controlling
Controlling involves ensuring that performance does
not deviate from standards. Controlling consists of three steps, which include
(1) establishing performance standards, (2) comparing actual performance
against standards, and (3) taking corrective action when necessary. Performance
standards are often stated in monetary terms such as revenue, costs, or profits
but may also be stated in other terms, such as units produced, number of
defective products, or levels of quality or customer service.
The measurement of performance can be achieved in
several ways, depending on the performance standards, including financial
statements, sales reports, production results, customer satisfaction, and
formal performance appraisals. Managers at all levels engage in the managerial
function of controlling to some degree.
The managerial function of controlling should not be
confused with control in the behavioral or manipulative sense. This function
does not imply that managers should attempt to control or to manipulate the
personalities, values, attitudes, or emotions of their subordinates. Instead,
this function of management concerns the manager’s role in taking necessary
actions to ensure that the work-related activities of subordinates are
consistent with and contributing toward the accomplishment of organizational
and departmental objectives.
Effective controlling requires the existence of
plans, since planning provides the necessary performance standards or objectives.
Controlling also requires a clear understanding of where responsibility for
deviations from standards lies. Two traditional control techniques are budget
and performance audits. An audit involves an examination and verification of
records and supporting documents. A budget audit provides information about
where the organization is with respect to what was planned or budgeted for,
whereas a performance audit might try to determine whether the figures reported
are a reflection of actual performance. Although controlling is often thought
of in terms of financial criteria, managers must also control production and
operations processes, procedures for delivery of services, compliance with
company policies, and many other activities within the organization.
The management functions of
planning, organizing, leading, and controlling are widely considered to be the
best means of describing the manager’s job, as well as the best way to classify
accumulated knowledge about the study of management. Although there have been
tremendous changes in the environment faced by managers and the tools used by
managers to perform their roles, managers still perform these essential
functions.
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