Ways to be a successful entrepreneur.

1. Entrep 9
#CTTO
MANAGEMENT FUNCTIONS OF AN
ENTREPRENEUR

2. JOHN LEXTER C.
RAMIREZ
#ALL PICTURES NOT MINE

3. WHAT IS MANAGEMENT
FUNCTIONS?
• The major functions that a manager completes can be
into different functions. Effective manager understand
how these are used to achieve organizational success. In
this lesson, we will be able to know the different functions
of management and be able to explain how can it help us
in being a successful entrepreneur.
• A good manager know how to handle his/her works and
how to master the different management functions.

4. WHAT ARE THE DIFFERENT
MANAGEMENT FUNCTIONS?
Manage
ment
Function
Planning
Organizing
Staffing
Directing/
Leading
Controlling
Coordination
Reporting
Budgeting

5. • Different experts have classified functions of management.
According to George & Jerry, “There are four fundamental
functions of management i.e. planning, organizing, actuating
and controlling”.
• According to Henry Fayol, “To manage is to forecast and
plan, to organize, to command, & to control”. Whereas
Luther Gullick has given a keyword ’POSDCORB’ where P
stands for Planning, O for Organizing, S for Staffing, D for
Directing, Co for Co-ordination, R for reporting & B for
Budgeting. But the most widely accepted are functions of
management given by KOONTZ and O’DONNEL
i.e. Planning, Organizing, Staffing, Directing and Controlling.
-Management Study Guide

6. PLANNING
• It is the basic function of management. It deals with chalking out a
future course of action & deciding in advance the most appropriate
course of actions for achievement of pre-determined goals. According
to KOONTZ, “Planning is deciding in advance” - what to do, when
to do & how to do. It bridges the gap from where we are & where
we want to be”. A plan is a future course of actions. It is an exercise
in problem solving & decision making. Planning is determination of
courses of action to achieve desired goals. Thus, planning is a
systematic thinking about ways & means for accomplishment of pre-
determined goals. Planning is necessary to ensure proper utilization of
human & non-human resources. It is all pervasive, it is an intellectual
activity and it also helps in avoiding confusion, uncertainties, risks,
wastages etc.
-Management Study Guide

7. ORGANIZING
• It is the process of bringing together physical, financial and
human resources and developing productive relationship
amongst them for achievement of organizational goals.
According to Henry Fayol, “To organize a business is to
provide it with everything useful or its functioning i.e.
raw material, tools, capital and personnel’s”. To
organize a business involves determining & providing
human and non-human resources to the organizational
structure.
-Management Study Guide

8. ORGANIZING AS A
PROCESS INVOLVES:
 Identification of activities.
 Classification of grouping of activities.
 Assignment of duties.
 Delegation of authority and creation of responsibility.
 Coordinating authority and responsibility relationships.

9. IDENTIFICATION OF
ACTIVITIES
• One of the more difficult areas of Activity Based
Costing (ABC) is the identification of activities. If ABC is
done primarily to determine the accurate cost of products
or services, activities can be identified at a high
level. However, if ABC is done as part of the process
study for a Business Process Engineering
(BPE) initiative, the activities need to be identified at a
lower level of detail. Fortunately, the BPE
methodology looks at business processes at a fine level
of detail. This is done as part of the task "Document
Business Process.“
-Toolbox

10. • First step is to determine the tasks that must be
performed to achieve the established objectives. Activities
and jobs are building blocks of any organization. The
activities to be performed depends upon the objectives,
nature and size of the enterprise.
-Vinay Prateek Bansriyar

11. THE FOLLOWING STEPS
DOCUMENT THE
BUSINESS PROCESS:
• Define the boundaries of the process,
• Identify the customers and suppliers of the process,
• Decompose the process into its component activities,
• Identify the inputs/material used by each activity,
• Identify the outputs/products produced by each activity,
• Identify the organizational unit(s) performing each activity.

12. CLASSIFICATION OF
GROUPING OF ACTIVITIES
• The various activities are the grouped into departments or
divisions according to similarity and common purpose. Such
grouping is necessary for the purpose of specialization,
coordination and control. It may be grouped on various basis
i.e. functions products, territories, customers etc. depending
on requirements.
-Vinay Prateek Bansriyar

13. ASSIGNMENT OF DUTIES
• Duties are the tasks an individual is required to perform.
One of the principles of organization you should observe
is that every duty that is be performed must be assigned
to someone. This means that the obscure or once in a
while jobs must be assigned as well as the jobs that are
done each day. When individuals are assigned jobs, they
should have a thorough knowledge of all the procedures
involved, the publication or other directives required, and
where they can obtain this type of information. Persons
who are assigned to jobs should be performed. In
addition, people should recognize that they are expected
to complete the tasks in a minimum amount of time and
yet consistently demonstrate a certain level of quality in
workmanship.
• -navyadministration

14. DELEGATION OF
AUTHORITY AND
CREATION OF
RESPONSIBILITY
• A manager alone cannot perform all the tasks assigned to
him. In order to meet the targets, the manager should
delegate authority. Delegation of Authority means division
of authority and powers downwards to the subordinate.
Delegation is about entrusting someone else to do parts
of your job. Delegation of authority can be defined as
subdivision and sub-allocation of powers to the
subordinates in order to achieve effective results.
-Management Study Guide

15. COORDINATING AUTHORITY
AND RESPONSIBILITY
RELATIONSHIPS
• In an organization, dividing work among people and
coordinating their activities towards a common objective
needs to be done efficiently. Authority and responsibility
are two of the most important components of a smooth-
functioning business.
-toppr

16. STAFFING
• It is the function of manning the organization structure
and keeping it manned. Staffing has assumed greater
importance in the recent years due to advancement of
technology, increase in size of business, complexity of
human behavior etc. The main purpose o staffing is to put
right man on right job i.e. square pegs in square holes
and round pegs in round holes. According to Kootz &
O’Donell, “Managerial function of staffing involves
manning the organization structure through proper
and effective selection, appraisal & development of
personnel to fill the roles designed un the structure”.
-Management Study Guide

17. STAFFING INVOLVES:
• Manpower Planning (estimating man power in terms of
searching, choose the person and giving the right
place).
• Recruitment, Selection & Placement.
• Training & Development.
• Remuneration.
• Performance Appraisal.
• Promotions & Transfer.

18. MANPOWER PLANNING
• Manpower Planning which is also called as Human
Resource Planning consists of putting right number of
people, right kind of people at the right place, right time,
doing the right things for which they are suited for the
achievement of goals of the organization. Human
Resource Planning has got an important place in the
arena of industrialization. Human Resource Planning has
to be a systems approach and is carried out in a set
procedure.
-Management Study Guide

19. THE PROCEDURE IS AS
FOLLOWS:
• Analyzing the current manpower inventory
• Making future manpower forecasts
• Developing employment programs
• Design training programs

20. Recruitment, Selection &
Placement
• Recruitment is a process of finding and attracting the
potential resources for filling up the vacant positions in an
organization. It sources the candidates with the abilities and
attitude, which are required for achieving the objectives of an
organization.
• Recruitment process is a process of identifying the jobs
vacancy, analyzing the job requirements, reviewing
applications, screening, shortlisting and selecting the right
candidate.
• To increase the efficiency of hiring, it is recommended that
the HR team of an organization follows the five best practices
(as shown in the following image). These five practices
ensure successful recruitment without any interruptions. In
addition, these practices also ensure consistency and
compliance in the recruitment process.
-Tutorialspoint

21. • Training and development is vital part of the human
resource development. It is assuming ever important role
in wake of the advancement of technology which has
resulted in ever increasing competition, rise in customer’s
expectation of quality and service and a subsequent need
to lower costs. It is also become more important globally
in order to prepare workers for new jobs.
-Management Study Guide
TRAINING AND
DEVELOPMENT

22. REMUNERATION
• Employee Remuneration refers to the reward or
compensation given to the employees for their work
performances. Remuneration provides basic attraction to
a employee to perform job efficiently and effectively.
Remuneration leads to employee motivation. Salaries
constitutes an important source of income for employees
and determine their standard of living. Salaries effect the
employees productivity and work performance. Thus the
amount and method of remuneration are very important
for both management and employees.
• There are mainly two types of Employee Remuneration
 Time Rate Method
 Piece Rate Method
-Management Study Guide

23. PERFORMANCE
APPRAISAL
• Performance Appraisal is the systematic evaluation of the
performance of employees and to understand the abilities
of a person for further growth and development.
Performance appraisal is generally done in systematic
ways which are as follows:
 The supervisors measure the pay of employees and
compare it with targets and plans.
 The supervisor analyses the factors behind work
performances of employees.
 The employers are in position to guide the employees for
a better performance.
-Management Study Guide

24. PROMOTION AND
TRANSFER
• A transfer is a lateral move to a vacant position in either
the employee's current department or a new department.
A transfer will not normally result in a change in
compensation.
• A promotion is a move by an employee to a vacant
position at a higher grade level either within the current
department or in a new department. Promotions generally
result in a salary increase at the time of promotion.
-Brown University

25. DIRECTING/
LEADING
• It is that part of managerial function which actuates the
organizational methods to work efficiently for
achievement of organizational purposes. It is considered
life-spark of the enterprise which sets it in motion the
action of people because planning, organizing and
staffing are the mere preparations for doing the work.
Direction is that inert-personnel aspect of management
which deals directly with influencing, guiding, supervising,
motivating sub-ordinate for the achievement of
organizational goals.
-Management Study Guide

26. DIRECTION HAS
FOLLOWING ELEMENTS:
• Supervision- implies overseeing the work of subordinates
by their superiors. It is the act of watching & directing work
& workers.
• Motivation- means inspiring, stimulating or encouraging
the sub-ordinates with zeal to work. Positive, negative,
monetary, non-monetary incentives may be used for this
purpose.
• Leadership- may be defined as a process by which
manager guides and influences the work of subordinates
in desired direction.
• Communications- is the process of passing information,
experience, opinion etc. from one person to another. It is a
bridge of understanding.
-Management Study Guide

27. GOOD SUPERVISION
ENABLES STAFF TO:
 build effective professional relationships
 develop good practice in the performance of their work
 exercise judgment and make good decisions
 improve the quality of work.

28. MOTIVATION
• Motivation is the word derived from the word ’motive’
which means needs, desires, wants or drives within the
individuals. It is the process of stimulating people to
actions to accomplish the goals. In the work goal context
the psychological factors stimulating the people’s
behavior can be -
 desire for money
 success
 recognition
 job-satisfaction
 team work, etc.
-Management Study Guide

29. LEADERSHIP
• Leadership is a process by which an executive can direct,
guide and influence the behavior and work of others towards
accomplishment of specific goals in a given situation.
Leadership is the ability of a manager to induce the
subordinates to work with confidence and zeal. Leadership is
the potential to influence behavior of others. It is also defined
as the capacity to influence a group towards the realization of
a goal. Leaders are required to develop future visions, and to
motivate the organizational members to want to achieve the
visions. According to Keith Davis, “Leadership is the ability
to persuade others to seek defined objectives
enthusiastically. It is the human factor which binds a
group together and motivates it towards goals.”
-Management Study Guide

30. COMMUNICATION
• A famous quote says - “The way we communicate with
others and with ourselves ultimately determines the
quality of our lives”
• The process of passing any information from one person
to the other person with the aid of some medium is
termed as communication.
-Management Study Guide

31. CONTROLLING
• It implies measurement of accomplishment against the
standards and correction of deviation if any to ensure
achievement of organizational goals. The purpose of
controlling is to ensure that everything occurs in
conformities with the standards. An efficient system of
control helps to predict deviations before they actually
occur. According to Theo Haimann, “Controlling is the
process of checking whether or not proper progress is
being made towards the objectives and goals and
acting if necessary, to correct any deviation”. According
to Koontz & O’Donell “Controlling is the measurement &
correction of performance activities of subordinates in
order to make sure that the enterprise objectives and
plans desired to obtain them as being accomplished”.
-Management Study Guide

32. CONTROLLING HAS
FOLLOWING STEPS:
• Establishment of standard performance.
• Measurement of actual performance.
• Comparison of actual performance with the standards
and finding out deviation if any.
• Corrective action.

33. COORDINATION
• Coordination is the function of management which
ensures that different departments and groups work in
sync. Therefore, there is unity of action among the
employees, groups, and departments.
• It also brings harmony in carrying out the different tasks
and activities to achieve the organization’s objectives
efficiently. Coordination is an important aspect of any
group effort. When an individual is working, there is no
need for coordination.
-toppr

34. REPORTING
• The reporting to management is a process of providing
information to various levels of management so as to enable
in judging the effectiveness of their responsibility centers and
become a base for taking corrective measures, if necessary.
• S.N.Maheshwari said, “Reporting to Management can be
defined as an organized method of providing each
manager with all the data and only those data which he
needs for his decisions, when he needs them and in a
form which aids his understanding and stimulates his
action”. Reporting to Management can be defined as an
organized method of providing each manager with all the
data and only those data which he needs for his decisions,
when he needs them and in a form which aids his
understanding and stimulates his action.
-accountlearning (Money Matters; All Management Articles)

35. BUDGETING
• Budgeting, when done properly, can serve as a planning
an controlling system. The company’s goals and
performance objectives are documented in financial
terms. Once formulated, these plans are used throughout
the year. Monthly performance reports compare budgeted
results with actual results. To control operations,
management can examine the performance reports and
take necessary corrective actions.
-flexstudy

36. MY REFLECTION
• About the topic; Management function is one of the
important things to be considered as a manager or even a
employee. These will help you to do your tasks
successfully as early as you can. There are different
management function and nine of these are: planning,
organizing, staffing, directing/leading, controlling,
coordination, reporting and budgeting. There are so many
ways to be a successful entrepreneur.