CHARACTER FORMATION 2- LEADERSHIP, DECISION-MAKING,

MANAGEMENT AND ADMINISTRATION

CHAPTER 3:
TOS: Apply fundamental functions of Management: Planning, Organizing, Leading,
Staffing, and Controlling; Roles of Managers within the Organization; Decisional,
interpersonal, and informational; Effective Management of Organizational Resources.

I: Fundamental Functions of Management

Different authors offer different names for the same functions of management:
➢ Henri Fayol identifies five functions of management viz, planning, organizing, commanding,
coordinating, and controlling.
➢ Koontz and O’Donnell divide the management functions into planning, organizing, staffing,
directing, and controlling.
➢ Warren Haynes and Joseph Massie classify management functions into decision-making,
planning, organizing, staffing, directing, controlling, and communicating.
➢ Luther Gulick, states seven such functions under the catchword “POSDCoRB” which stand
for:
• P – Planning
• O – Organizing
• S – Staffing
• D – Directing
• Co – Coordinating
• R – Reporting
• B – Budgeting
➢ As per managers are concerned, the following five functions are essential. They are Planning,
Organizing, Staffing, Directing, and Controlling. In addition to the above five functions, the two
functions such as Innovations and representation are also necessary for managers.

Management Process
For managerial purposes, the following five functions are very essential for managers. They are
planning, organizing, staffing, directing, and controlling.
1. Planning. Planning is the function that determines in advance what should be done.
• It is looking ahead and preparing for the future. It is a process of deciding the business
objectives and charting out the methods of attaining those objectives. In other words, it
is the determination of what is to be done, how and where it is to be done, who is to do
it, and how results are to be evaluated.
• This is done not only for the organization as a whole but for every division or department
or sub-unit of the organization. It is a function, which is performed by managers at all
levels, like top, middle and supervisory levels of management. Plans made by top
management of the organizations whole may cover periods as long as five or ten years.
• Also, plans made by middle- or first-line managers, cover such shorter periods. Such
plans may be for the next days or weeks, or months, etc. for example, for a two-hour
meeting to take place in a week.
• Following are the sub functions of planning: forecasting, decision making, strategic
formulation, policy-making, programming, scheduling, budgeting, problem solving,
innovation and research activities.

2. Organizing. It refers to coordinating human resources with other resources such as materials,
machine, money etc.
• Once managers have established objectives and developed plans to achieve them, they
must design and develop a human organization that will be able to carry out those plans
successfully.
• According to Allen, this organization refers to the “Structure which results from
identifying and grouping work, defining and delegating responsibility and authority, and
establishing relationships.”
• According to Amitai Etzioni, “An organization is a social unit or human grouping,
deliberately structured for the purpose of attaining specific goals”.

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 • The process of organizing involves the followings:
a. Identifying the activities necessary to achieve the objectives.
b. Grouping activities into various departments.
c. Assigning duties or tasks to appropriate individuals.
d. Delegating necessary authority to individuals and fixing responsibilities for
results.
e. Defining authority and responsibility relationship among individuals.
• Sub-functions of organizing functions are as follows:
o Functionalization
o Divisionalization
o Departmentation
o Delegation
o Decentralization
o Activity analysis
o Task allocation.

3. Staffing. Staffing may also be considered an important function involved in building the human
organization.
• In staffing, the manager attempts to find the right person for each job. Staffing fixes
a manager’s responsibility to recruit and to make certain that there is enough
manpower available to fill the various positions needed in the organization.
• Staffing involves the selection and training of future managers and a suitable system
of compensation. Staffing obviously cannot be done once and for all, since people
are continually leaving, getting fired, retiring and dying. Often too, the changes in the
organization create new positions, and these must be filled.
• According to Koontz and O’Donnell, “The managerial function of staffing involves
manning the organizational structure through proper and effective selection,
appraisal and development of personnel to fill the roles designed into the structure”.
• Staffing function has the following sub functions:
o manpower planning
o recruitment
o selection
o training and development
o placement
o compensation
o promotion
o appraisal etc.

4. Directing. After plans have been made and the organization has been established and staffed,
the next step is to move towards its defined objectives.
• This function can be called by various names: ‘Leading’, ‘Directing’, ‘Motivating’,
‘Actuating’, and so on. But whatever the name used to identify it, in carrying out this
function the manager explains to his people what they have to do and helps them do it
to the best of their ability.
• Directing thus involves three sub-functions. They are as follows:
a. Communication is the process of passing information and understanding from one
person to another.
b. Leadership is the process by which a manager guides and influences the work of
his subordinates.
c. Motivation means arousing desire in the minds of workers to give their best to the
enterprise. It is the act of stimulating or inspiring workers. If the workers of an
enterprise are properly motivated, they will pull their weight effectively, give their
loyalty to the enterprise, and carry out their task effectively.
o Two broad categories of motivation are financial and non-financial.
- Financial motivation takes the form of salary, bonus, profit sharing, etc.,
- Non-financial motivation takes the form of job security, opportunity of
advancement, recognition, praise, etc.

5. Controlling. The manager must ensure that everything occurs in conformity with the plans
adopted, the instructions issued and the principles established.
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 • Three elements are involved in the controlling function.
1. Establishing standards of performance.
2. Measuring current performance and comparing it against the established standards.
3. Taking action to correct any performance that does not meet those standards. In the
absence of sound control, there is no guarantee that the objectives, which have been
set, will be realized. The management may go on committing mistakes without knowing
them. Control compels events to conform to plans.
• Controlling function has the following sub-functions. They are
a. Fixation of standards,
b. Recording,
c. Measurement,
d. Reporting,
e. Corrective action.

II: Categories of Managerial Roles

What is a Managerial Role?

Managerial roles are behaviors adopted to perform various management functions,
like leading and planning, organizing, strategizing, and solving problems. Within an
organization, managers of different levels have different responsibilities that may overlap.

3 Basic Categories of Managerial Roles

1. Interpersonal Roles
• This category includes the roles that concern interactions with people working inside
and outside the organization. The majority of managers’ time is spent on
interpersonal communication through which things get done.
• The managerial roles in this category are figurehead, leader, and liaison.
2. Informational Roles
• The informational category involves creating, receiving, or sharing information with
coworkers. The manager collects information from sources both inside and outside
the organization, processes it, and delivers it to those who need it.
• The managerial roles in this category are monitor, disseminator, and
spokesperson.
3. Decisional Roles
• Interpersonal roles are about dealing with people, and informational ones are about
dealing with knowledge. Decisional roles are about action. By communicating with
people and using information, managers make decisions that lead the organization
to its goals.
• The managerial roles in this category are entrepreneur, disturbance-handler,
resource-allocator, and negotiator.

Ten (10) Managerial Roles According to Henry Mintzberg

1. Interpersonal Roles

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 • Figurehead – this role requires performing social, ceremonial, and legal
responsibilities
- These are symbolic duties that are legal or social in nature.
- It represents the organization in a social event to promote the
company.
• Leader – this role is the most pivotal as it shows to which extent a manager’s
potential is realized.
- includes all aspects of being a good leader. This involves building a
team, coaching the members, motivating them, and developing
strong relationships.
• Liaison – includes developing and maintaining a network outside the office for
information and assistance.
- Managers in the liaison role develop and maintain internal and
external relationships.
- They are a connection link that bridges the gap between employees
of different levels to ensure work is done smoothly. Liaisons transfer
knowledge through different members of the organization, up and
down the chain of command, and can also involve their business
contacts from outside the company.

2. Informational Roles
• Monitor – includes seeking information regarding the issues that are affecting the
organization. Also, this includes internal as well as external information.
- They gather internal and external sources, trying to identify problems
and opportunities for growth, like seeking customer feedback and
monitoring industry trends to meet the standard and stay on track.
• Disseminator – On receiving any important information from internal or external
sources, the same needs to be disseminated or transmitted within the organization.
• Spokesperson – includes representing the organization and providing information
about the organization to outsiders.
- A manager speaks on behalf of the company in a conference,
meetings and other event.

3. Decisional Roles
• Entrepreneur – involves all aspects associated with acting as an initiator, designer,
and also an encourager of innovation and change.
- Entrepreneurs create conditions for change since innovation and
change are needed for a company to stay competitive.
• Disturbance handler – taking corrective action when the organization faces
unexpected difficulties which are important in nature.
- He may solve issues as they arise like breaking a contract or conflict
among the members of the team.
• Resource Allocator – being responsible for the optimum allocation
of resources like time, equipment, funds, and also human resources, etc.
- distributes project workload across people or members.
• Negotiator – includes representing the organization in negotiations that affect the
manager’s scope of responsibility.

The Five (5) Minds of a Manager

1. Reflective Mindset
• Function: Reflect
• Target: Manage the Self
• Managers must be able to understand the situation. They should explain it, using
both their personal experience and analyzing the current environment.
2. Action Mindset
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 • Function: Act
• Target: Manage the Change
• Directed by visions, managers need to focus their people’s effort to actually move
to their goal.
• Action and reflection are two basic characteristics that form the basis of
management. They go in pair, supplementing each other. Action without
reflection – which is, decisions without considering options – is not smart.
Reflection without action is passiveness.
3. Collaborative mindset
• Function: Collaborate
• Target: Manage the Relationships
• To achieve results, a manager must communicate with people. It’s important to
remember that people are not just assets that can be traded. They have
relationships, and basically, a leader manages these relationships, not people
themselves.
4. Worldly Mindset
• Function: Have Knowledge and Experience
• Target: Manage the Context
• The term “worldly” to the term “globalization”. While globalization means things
are perceived from a distance, a worldly view takes into account cultures and
habits. This way, managing from a worldly perspective means taking into account
social, economic, and geographical factors.
5. Analytical Mindset
• Function: Analyze
• Target: Manage the Organization
• Managers are surrounded by things of different categories – physical assets,
structures, systems, and techniques. It requires an analytical approach to
problem-solving. This means managers will have to use both quantitative and
qualitative data to make decisions.

III: Effective Management of Organizational Resources

The impact of effective resource management in an organization can never be
underestimated. It is one major source of organizational stability.
This is also another important component that contributes to organizational
performance. Assets include both physical and intellectual property that belongs to an
organization. A company can maximize output by ensuring that its assets are properly catered
in terms of servicing and even patents for its intellectual property.

What is Resource Management?

Resource Management is the management discipline of efficiently and effectively
deploying and managing resources to achieve our organizational goals. Resources can take
the form of financial capital, human capital & talent, production resources & raw materials,
inventory, technology, business capabilities, networks & ecosystems, real estate, natural
resources, and so forth.

Three Main Resources of an Organization

1. Human Resources
• Human resources are a key resource in any organization. As such, the motivation
of the employees in an organization is essential in improving productivity hence
results.
• Employee motivation can be achieved by giving good remuneration, medical
allowances, and bonuses. It is fundamentally established that employees embrace
a company that caters to their well-being as people. A mutual and cordial
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 relationship between the employer and the employee translates into better
performance.
• Further, proper resource planning in an organization greatly contributes to the
productivity of human resources.
• Therefore, investment in a policy framework that outlines a working plan for the
employees would ease their frustrations.
2. Time Resources
• Time and human resources are the most crucial resources in contemporary times.
• Time is an infinite resource. If not properly managed in an organization, it can have
a negative impact on both employer's and employee's productivity.
• Organizations should ensure that workers are well-equipped to manage their duties
timely.
3. Financial Resources
• An organization can also establish a proper plan to manage its financial resources.
For example, budgets are established, funding gaps are identified and costs are
tracked and documented. With this, the company can assign resources to the
resilience activities and the rest can be invested to improve the organization's
revenue.

Types of Key Resources

1. People: Human resources are the backbone of any organization. This includes the
talent, skills, and expertise of the employees. People are critical for innovation, problem-
solving, and delivering high-quality services or products.
2. Technology: Technological resources include software, hardware, and other digital
tools that facilitate business operations. Advanced technology can provide a
competitive edge by improving efficiency, enabling innovation, and enhancing customer
experiences.
3. Equipment: Physical resources such as machinery, tools, and facilities are essential
for the production and delivery of goods and services. The quality and reliability of
equipment directly impact the business’s operational efficiency.
4. Information: Data and knowledge are invaluable resources. Access to accurate and
timely information helps in decision-making, understanding market trends, and
responding to customer needs effectively.
5. Channels: Distribution channels, whether physical or digital, are critical for reaching
customers. Effective management of these channels ensures that products and
services are delivered efficiently and meet customer expectations.
6. Partnerships and Alliances: Strategic partnerships and alliances can enhance a
business’s capabilities. These relationships can provide access to new markets,
technologies, or expertise that the business may not possess internally.
7. Brand: A strong brand is a powerful asset. It represents the business’s reputation and
can significantly influence customer loyalty and trust. Investing in brand development
can differentiate a business from its competitors.

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