MANAGEMENT

Lecture 2 - The POLC Framework

POLC Background

What is a business
Managers in Businesses
How managers use POLC
Organisational Structure
 What Do Businesses Look Like?

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 The major functions of managers are

standard across industries
 Corporate
 Retail
 Restaurant
 Every business has managers and they all use
POLC.
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 How do businesses work?
Customer to Manager
 To understand management you need to change your
perspective.
 You are used to being customers, think about it from the OTHER side.

 When you walk into a restaurant you see this:

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 You need to be able to see the business side…

 Where are the managers?
 When you look behind the
counter, what do you see?
 One person giving
instructions, and other people
following those instructions.
 They are trying to get things
done through people. www.restaurantmagazine.com

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Managers Need People
 One person is not able to do everything required in a
business. For example in a restaurant one person cannot:
 Take orders
 Cook food
 Clean dishes
 Welcome customers
 Take money
 Serve customers

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Business Structure – Organisation Chart
A business is divided into different
departments, or specialised areas of CEO/President
business operation.

Kitchen Service Customer

Manager Manager Manager

Kitchen Team 1 Kitchen Team 2 Service Team 1 Service Team 2 Customer Team Customer Team
Manager Manager Manager Manager 1 Manager 2 Manager

Staff Member Staff Member Staff Member Staff Member Staff Member Staff Member

Staff Member Staff Member Staff Member Staff Member Staff Member Staff Member

These are called levels of management.

 Inside a Business
Looking at the front of a business is like looking at a car. You
need to look below the surface to understand how it works.

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 What makes a car move

forward?
 How is it controlled?
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Inside a Manager?
 Just like with the car. We need to look within a manager to find
the activities they do to make their business run.
Planning Organising

Leading
Controlling

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 These activities are divided into the functions of Planning,

Organising, Leading and Controlling
POLC in Management
 POLC helps to classify the activities managers do, as
they attempt to achieve organizational goals.
 They do this in every industry, at every level of
management.
 We call these, the principles of management.

In reality, these are highly

integrated (connected).

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 Functions Together
 Each of the functions of POLC operate together:
• Managers create a plan
Plan

• Organise according to the plan

Organise

• Lead others to fulfil the plan

Lead

• Control the activities to remain on track for the goal

Control
POLC in the Management Course

Planning
Organising
Leading
Controlling
The POLC Framework
 The POLC framework originally developed by Henry Fayol,
a French Industrialist in 1916.
 He developed 14 Principles of Management.
 The functions were condensed to four and
used to manage resources.
 Resources
 Humans Resources (Labour)
 Raw Material (Capital & Natural Resources)
 Financial Resources
 Technological Information
Key Management Functions
 Planning- setting the goals and objectives for the
organisation and determining a course of action to
achieve these objectives.
POLC - Planning
 Planning: Objectives/aims What the company will accomplish

 Defining goals for future organisational performance and

deciding on the tasks and use of resources needed to attain
them. The goals Assets including: Money, people, Achieve
time, etc

Setting Goals – SMART goals

Prioritisation of tasks
Action Planning
Key Management Functions
 Organising – developing a structure for the organisation
and allocating human resources to achieve the
organisational objectives
 POLC – Organising
 Organising Specialised areas of the
business.

 Assigning tasks, grouping of tasks into departments and

Give/set
allocating resources to departments.
 Teamwork

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 Decision making

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Key Management Functions
 Leading – directing and motivating employees to
achieve the organisational objectives.
POLC - Leading
 Leading To have an effect on Reason for acting a
behaviour certain way

 Involves the use of influence to motivate employees to

achieve the organisational goal/s.
 Motivational Theories
 Maslow's Hierarchy of needs
 Mc Gregors Theory X and Y
Employees’
Motivation

 Leadership Styles
Leadership
 Autocratic Styles
 Management Theories
 Democratic
 Scientific Management
 Lassie Faire Management
Theories  Behavioural
Management
POLC - Controlling
Check/keep track
 Controlling
 Monitoring employees’ activities, keeping the organisation on track
towards its goals, and making corrections as needed.
 Controlling Steps:
 Set a standard or target
 Measure performance through observations and setting
benchmarks
 Identify and investigate deviations from the target
 Make changes where necessary

Note: Controlling is not covered in detail in this course

 Planning

Strategic Planning
Tactical Planning
Operational Planning
Effects on Planning
Planning
 Planning is defining goals for future
organisations’ performance and deciding on
the tasks and resources needed to achieve
them.
 Three levels of planning:
 Strategic
 Tactical
 Operational
Levels of Planning
 Strategic Planning
 Long term planning is 2 – 5 years or more.
 Uses a framework of
 Vision – ideal future state, provides guidance and
inspiration 理理想的未来状态，提供指导和灵感
 Mission – Purpose of the organisation

 Undertaken by senior management 由⾼高级管理理层负责

 High Risk
 Examples
 Change in organisational structure
 New investment opportunities
 This is the vision
for the company
Basis for the long
term 2-5 year
plan.

This the big idea, now senior managers have to plan

towards that goal over the next 2-5 years.
Levels of Planning
Why Strategic Planning?
 Sets long term direction.
 Foundation of operational planning
 Stimulates change
 Explains the business vision to other people.
 Basis for accountability
 Framework for decision making
Levels of Planning
 Tactical Planning
 1-2 year period
 Implement the Strategic Plan
 Undertaken by Middle Management 中层管理理⼈人员执⾏行行

 Flows from above

 Different departments will implement

 Examples
 Develop a new product
 Marketing Plans
Levels of Planning
 Operational Planning
(Short term, daily to six monthly)
 Front line managers ⼀一线经理理
 Simple and routine
 Examples
Daily production quotas
Timetable in schools
Daily tasks
What can affect the planning process?
When we think about planning we have to think about
which variables could affect our plans.
This reflects our understanding of what we can control as
managers and our ability to adapt and change to different
circumstances.
Comprehension Quiz
1. UNICEF is a non-governmental and philanthropic organisation which improves
individuals’ social wellbeing. It is a…
a. Private entity
b. Public entity
c. Charitable entity
d. Commercial organisation

2. “Our manager, Jill, always oversees our work performance and makes
amendments to our schedule when necessary.”

This is an example of…

a. Planning
b. Organising
c. Leading
d. Controlling

3. Define ‘private organisation’ and provide an example to clarify your explanation.

Comprehension Quiz
4. Which of the following is true about Management principles?
a. Leading is about motivating others to reach organisational goals.
b. Deciding on a budget is an example of organising.
c. An organisation’s mission statement might need to be amended after the controlling stage.
d. A and C

5. “Our school has introduced a new device to keep a record of students’ attendance. This has required all educators to
undergo training for the next 5 months. In addition, a new UNSW high school project is being proposed and implemented
which affects our organisation for the next 4 years.”

This is an example of:

a. Strategic- Operational planning
b. Tactical- Strategic planning
c. Operational- Strategic planning
d. Structural- Strategic planning

6. Jerry made cookies but he used salt instead of sugar. Therefore, he could not eat them.

Which of the following is correct about the above statements?

a. What Jerry did was effective.
b. What Jerry did was mindful.
c. What Jerry did was not effective.
d. What Jerry did was efficient.