Everything you need to know about the functions of a manager. Management is a creative process which integrates and uses various available resources effectively to accomplish certain goals. For which, an individual is responsible to develop ideas and get things done through others.
The concerned individual is designated as manager, any person who performs the functions of planning, organisation, staffing, directing and controlling for the accomplishment of pre-determined organisation goals is called as manager.
The smooth functioning of a business unit depends on the performance of the manager. If a manager has adequate skill, he can discharge his duties effectively.
Most managerial functions can be classified into one of the following categories:– 1. Planning 2. Organizing 3. Leading 4. Controlling.
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Some of the functions performed by a human resource manager are:-
A. Managerial Functions:- 1. Planning 2. Organising 4. Direction 5. Controlling. B. Operative Functions:- 1. Employment 2. Development 3. Compensation 4. Maintenance 5. Motivation 6. Personnel Records 7. Industrial Relations 8. Separation. C. Advisory Functions.
Some of the functions of a finance manager are:-
1. Funds Requirement Decision 2. Financing Decision 3. Investment Decision 4. Dividend Decision 5. Valuation Decisions.
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Some of the functions of a sales manager are:-
1. Hiring 2. Training 3. Evaluating Training Results 4. Coaching 5. Motivating 6. Changing Trends in Sales Incentives 7. Setting Targets and Tracking Results 8. Recognizing and Rewarding Performance 9. Providing Leads and Sales Support 10. Organizing the Sales Efforts 11. Conducting Sales Meetings.
Some of the functions of an international manager are:- 1. Planning 2. Organizing 3. Staffing 4. Directing 5. Controlling.
Some of the functions of a marketing manager are:- 1. Integrated Marketing 2. Determining Objectives 3. Product Policy 4. Proper Planning 5. Selling 6. Service.
Functions Performed by a Manager, HR Manager, Finance Manager, Sales Manager, International Manager and Marketing Manager
Functions of Managers – Classified as Planning, Organizing, Leading and Controlling
Most managerial functions can be classified into one of the following categories:
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1. Planning
2. Organizing
3. Leading
4. Controlling
Function # 1. Planning:
The planning function represents the preparation of a firm for future business conditions. As the first step in the planning process, the firm establishes its mission statement, which describes its primary goal.
For example, here is the mission statement of Bristol-Myers Squibb:
“The mission of Bristol-Myers Squibb is to extend and enhance human life by providing the highest quality health and personal care products.”
Most mission statements are general, like that of Bristol-Myers Squibb. The mission of General Motors is to be the world’s leader in transportation products, and the mission of Ford Motor Company is to be the world’s leading consumer company providing automotive products and services.
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a. Strategic Plan:
The strategic plan identifies the firm’s main business focus over a long-term period. The strategic plan is more detailed than the mission statement and describes in general terms how the firm’s mission is to be achieved.
For example, if a firm’s mission is to produce quality computer products, its strategic plan might specify the particular computer products to be produced and the manner in which they will be sold (retail outlets, Internet, etc.).
The strategic plan typically includes goals and strategies that can be used to satisfy the firm’s mission. For example, a recent annual report of Bristol-Myers Squibb listed the following among its main goals and strategies.
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“Leadership in each product category and in each geographic market in which we compete. We aim to achieve number one or number two position with increasing market shares.”
“Superior customer satisfaction by providing the highest quality products and services to our customers. We will strive to be rated number one or two with continuous improvement as rated by our customers.”
“Superior steady shareholder returns, as measured by a number one or two competitive position in economic performance within our industry.'”
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“An organization which is committed to winning through teamwork, empowerment, customer focus, and open communications.”
“Our mission and goals will be achieved by adhering to the following core strategies:
(a) Achieve unit growth fueled internally by new products, geographic expansion, and marketing innovation, and externally through acquisition, joint venture and licensing agreements.
(b) Dedicate ourselves to being recognized as the best in research and development across our businesses…..
(c) Achieve continuous improvement in our cost structure…
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(d) Attract, develop, motivate, and retain people of the highest caliber. The company’s reporting, reward and recognition systems will be built around attainment of the goals identified above.”
Once a firm specifies its mission, it can develop plans to achieve that mission.
A firm’s mission can change over time. When eBay was created, its mission was to create an online auction system that would allow buyers and sellers to interact to purchase and sell products.
As eBay became increasingly popular, it expanded its system to include several foreign countries, and it established a more ambitious mission—to serve buyers and sellers anywhere who wish to buy or sell practically anything.
b. Tactical Planning:
High-level and middle managers also engage in tactical planning, or smaller-scale plans (over one or two years) that are consistent with the firm’s strategic (long-term) plan. Tactical planning normally focuses on a short-term period, such as the next year or so.
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To develop their tactical plan, managers of AT&T and other firms assess economic conditions, the general demand for various products, the level of competition among firms producing those products, and changes in technology.
They use their vision to capitalize on opportunities in which they have some advantages over other firms in the industry. If a firm’s strategic plan is to increase its market share by 20 percent, its tactical plans may focus on increasing sales in specific regions that have less competition. As time passes, additional tactical planning will be conducted in accordance with the strategic plan.
c. Operational Planning:
Another form of planning, called operational planning, establishes the methods to be used in the near future (such as the next year) to achieve the tactical plans. Continuing our example of a firm whose tactical plan is to increase sales, the operational plan may specify the means by which the firm can increase sales.
That is, the operational plan may specify an increase in the amount of funds allocated to advertising and the hiring of additional salespeople.
The goals of operational planning are somewhat dependent on the firm’s long-term goals. For example, a firm’s top managers may establish a goal of 12 percent annual growth in sales over the next several years.
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The firm’s salespeople may be asked to strive for a 1 percent increase in total sales per month during the upcoming year. Their month-to-month goals are structured from the long-term goals established by top management.
When firms engage in operational planning, they must abide by their policies, or guidelines for how tasks should be completed. For example, a policy on the hiring of employees may require that a specific process be followed. Policies enforced by firms ensure that all employees conduct specific tasks in a similar manner. The policies are intended to prevent employees from conducting tasks in a manner that is inefficient, dangerous, or illegal.
Most policies contain procedures, or steps necessary to implement a policy. For example, a policy for hiring may specify that an ad is to be placed in the local newspaper for so many days and that the criteria for the job must be disclosed in the ad.
These procedures are intended to prevent abuses, such as a manager hiring a friend or relative who is not really qualified for the job. Without procedures, managers could make decisions that conflict with the company’s goals.
As another example, a firm may implement procedures for air travel to ensure that employees use airlines that have relatively low prices and that they fly second class. These procedures are intended to prevent managers from incurring excessive travel expenses.
d. Contingency Planning:
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Some of a firm’s plans may not be finalized until specific business conditions are known. For this reason, firms use contingency planning; that is, they develop alternative plans for various possible business conditions. The plan to be implemented is contingent on the business conditions that occur.
For example, a firm that produces sports equipment may plan to boost its production of rollerblades in response to recent demand. At the same time, however, it may develop an alternative plan for using its resources to produce other equipment instead of rollerblades if demand declines.
It may also develop a plan for increasing its production if the demand for its rollerblades is much higher than expected.
The September 11 crisis prompted many firms to develop a contingency plan in the event of a future crisis. Some firms established backup production plans in case their normal facilities are not functioning properly.
Other firms have identified backup office space that can be used if their normal offices are destroyed or otherwise are unusable. Many firms have also attempted to back up their information files and store them at an alternative location.
Relationships among Planning Functions:
The relationships among the planning functions are shown in Exhibit 7.4. Notice how the tactical plan is dependent on the strategic plan and the operational plan is based on the tactical plan. The contingency plan offers alternatives to consider instead of the operational plan in specific situations (such as higher or lower demand for the product than anticipated).
To fully understand how these plans fit together, assume that your firm produces men’s shirts and that your strategic plan specifies goals of expanding into related products. In this case, your tactical plan may focus on producing one other product along with men’s shirts, such as women’s shirts.
The operational plan will specify the changes in the firm’s operations that are necessary to produce and sell women’s shirts.
Specifically, the plan will determine how much more fabric must be purchased each month, how the women’s shirts will be priced, and where they will be sold. A contingency plan can also be prepared in the event that excessive competition develops in the market for women’s shirts. If this occurs, the contingency plan may be to expand into different products, such as men’s pants.
Function # 2. Organizing:
The organizing function involves the organization of employees and other resources in a manner that is consistent with the firm’s goals. Once a firm’s goals are established (from the planning function), resources are obtained and organized to achieve those goals. For example, employees of DaimlerChrysler are organized among assembly lines to produce cars or trucks in a manner consistent with the company’s goals.
The organizing function occurs continuously throughout the life of the firm. This function is especially important for firms that frequently restructure their operations. Organizational changes such as the creation of a new position or the promotion of an employee occur frequently. These changes may even necessitate revisions of job assignments of employees whose job positions have not changed.
To illustrate the importance of the organizing function, consider a construction company that builds homes. The general contractor assigns tasks to the employees. From the laying of the foundation to painting, most tasks must be completed in a particular order. Since all tasks cannot be completed easily.
Managers who allow much employee feedback may prevent conflicts between management and employees, or even conflicts among employees. To the extent that the leading function can enhance the performance of employees, it will enhance the performance of the firm.
For managers to be effective leaders, they need to have initiative, which is the willingness to take action. Managers who have all other skills but lack initiative may not be very effective. Some managers who recognize the need to make changes are unwilling to take action because making changes takes more effort than leaving the situation as is, and change may upset some employees.
For example, consider a manager who recognizes that the firm’s expenses could be reduced, without any adverse effect on the firm, by eliminating a particular department. Nevertheless, this manager may refrain from suggesting any action because it might upset some employees. Managers are more likely to initiate change if they are directly rewarded for suggesting any changes that enhance the firm’s value.
Leadership Styles:
Although all managers have their own leadership styles, styles can be classified generally as autocratic, free-rein, or participative. Managers who use an autocratic leadership style retain full authority for decision making; employees have little or no input.
For example, if managers believe that one of their manufacturing plants will continue to incur losses, they may decide to close the plant without asking for input from the plant’s workers.
Autocratic managers may believe that employees cannot offer input that would contribute to a given decision. Employees are instructed to carry out tasks as ordered by autocratic leaders and are discouraged from being creative. In general, employees who desire responsibility are likely to become dissatisfied with such a management style.
Managers who use a free-rein (also called “laissez-faire”) management style delegate much authority to employees. This style is the opposite extreme from the autocratic style. Free-rein managers communicate goals to employees but allow the employees to choose how to complete the objectives.
For example, managers may inform workers in a manufacturing plant that the plant’s performance must be improved and then allow the workers to implement an improvement strategy. Employees working under a free-rein management style are expected to manage and motivate themselves daily.
In the participative (also called democratic) leadership style, the leaders accept some employee input but usually use their authority to make decisions. This style requires frequent communication between managers and employees. Managers who use a participative management style allow employees to express their opinions but do not pressure employees to make major decisions.
For example, managers of a General Motors plant may consider the ideas of assembly-line workers on how to improve the plant’s performance, but the managers will make the final decisions.
The optimal leadership style varies with the situation and with employees’ experience and personalities. The free-rein style may be appropriate if employees are highly independent, creative, and motivated.
An autocratic style may be most effective for managing employees with low skill levels or high turnover rates. Participative management is effective when employees can offer a different perspective because of their closer attention to daily tasks.
Within a given firm, all three leadership styles may be used. For example, the top management of General Motors may use autocratic leadership to determine the types of automobiles (large versus small cars, luxury versus economy cars, and so on) to design in the future.
These plans are made without much employee input because the top managers can rely on recent surveys of consumer preferences along with their own vision of what types of cars will be in demand in the future.
Once top management identifies the types of automobiles to produce, a participative leadership style may be used to design each type of car. That is, top management may establish general design guidelines for a particular type of car to be produced (such as specifying a small economy car) and ask employees for their suggestions on developing this type of car.
These employees have experience on specific assembly-line operations and can offer useful input based on various production or quality problems they experienced with other cars. The top managers will make the final decisions after receiving the engineers’ proposed designs, which are based on input from numerous employees.
This example reflects a participative style simultaneously, the contractor has workers working on different homes. In this way, employees can apply their respective specialties (such as painting, electrical, and so on) to whatever homes are at the proper stage of construction.
Function # 3. Leading:
The leading function is the process of influencing the habits of others to achieve a common goal. It may include the communication of job assignments to employees and possibly the methods of completing those assignments. It may also include serving as a role model for employees. The leading should be conducted in a manner that is consistent with the firm’s strategic plan.
The leading function involves not only instructions on how to complete a task but also incentives to complete it correctly and quickly. Some forms of leading may help motivate employees. One method is to delegate authority by assigning employees more responsibility. Increased responsibility can encourage employees to take more pride in their jobs and raise their self-esteem.
If employees are more actively involved in the production process and allowed to express their concerns, problems can be resolved more because managers use their authority to decide on the particular type of product to be produced but solicit input from many employees.
After the design of a specific car is completed, managers use a free-rein style for some parts of the production process. For example, a group of employees may be assigned to a set of assembly-line tasks.
They may be allowed to assign the specific tasks among themselves. They may also be allowed to rotate their specific jobs to avoid boredom. This example reflects the free-rein style because the employees are allowed to choose how to achieve the firm’s objectives.
Function # 4. Controlling:
The controlling function involves the monitoring and evaluation of tasks. To evaluate tasks, managers should measure performance in comparison with the standards and expectations they set. That is, the controlling function assesses whether the plans set within the planning function are achieved.
Standards can be applied to production volume and cost, sales volume, profits, and several other variables used to measure a firm’s performance. The controlling function allows for continual evaluation so that the firm can ensure that it is following the course intended to achieve its strategic plan.
The strategic plan of Bristol-Myers Squibb states that its reward systems will be based on standards set by the goals identified within that plan.
Some standards such as profits are general and apply to all departments of a firm. Thus, no single department is likely to be entirely accountable if the firm’s profits are not sufficient. Other standards focus on a particular operation of the firm.
For example, production volume, production cost per unit, and inventory level standards can be used to monitor production. A specified volume of sales can be used as a standard to monitor the effectiveness of marketing strategies.
The main reason for setting standards is to detect and correct deficiencies. When deficiencies are detected, managers must take corrective action. For example, if labor and equipment repair expenses are too high, the firm will attempt to identify the reason for the high costs so that it can prevent them in the future.
If a firm finds that its sales volume is below standards, its managers will determine whether to revise the existing marketing strategies or penalize those employees who are responsible for the deficiency.
Deficiencies that are detected early may be more easily corrected. By identifying deficiencies that must be corrected, the controlling function can help to improve a firm’s performance.
In some cases, the standards rather than the strategies need to be corrected. For example, a particular advertising strategy to boost automobile sales may fail when interest rates are high because consumers are unwilling to borrow money to purchase automobiles at those interest rates. The failure to reach a specified sales level may be due to the high interest rates rather than a poor advertising strategy.
a. Control by Investors:
Corporate governance involves the oversight or governance of corporate management. High-level managers are indirectly controlled by the corporate governance process. Investors of publicly traded firms try to ensure that the managers make effective decisions that will maximize the firm’s performance and value.
Investors have some influence over management because they can complain to the board of directors or to executives if the managers are making poor decisions. The board and executives are especially concerned about satisfying institutional investors that hold large amounts of the firm’s shares because if those investors sell all their holdings of the firm’s shares, a pronounced decline in the stock’s price could occur.
In some cases, the institutional investors form a group so that they will have greater influence on the firm’s management. Institutional Shareholder Services (ISS), Inc., is a firm that organizes institutional shareholders to push for a common cause.
When ISS receives feedback from institutional investors about a particular firm, it organizes a conference call with high-ranking executives of the firm and allows investors to listen in on the call.
Unlike earnings conference calls, which are controlled by the firm, the conference call is run by ISS, which asks questions that focus on the institutional shareholders’ concerns about the firm’s management.
Typical questions asked by ISS include:
(i) Why is your chief executive officer (CEO) also the chairman of the board?
(ii) Why is your executive compensation much higher than the industry norm?
(iii) What is your process for nominating new board members? Transcripts of the conference call are available within 48 hours after the call.
b. Control of Reporting:
Another objective of the controlling process is to ensure accurate reporting within the firm. Investors of publicly traded firms attempt to have some control over a firm’s management by reviewing the financial statements that the firm releases on a quarterly basis. In recent years, some publicly traded firms used reporting procedures that intentionally exaggerated the firm’s revenue or profit over a particular time period.
Such inaccurate reporting may mislead investors who are trying to monitor a firm’s management by causing the management to look better than it actually is. Consequently, investors may overestimate the value of the firm and therefore pay too much for its stock. In addition, executives who hold the firm’s stock may be able to sell it for a high price to investors who were misinformed about the firm’s profits.
The Sarbanes-Oxley Act (SOX) was enacted in 2002 in an effort to prevent such reporting abuses. It requires firms to implement a system that allows their level of productivity and profitability to easily be monitored. The system must be designed to detect reporting discrepancies so that a firm’s reported financial performance can easily be checked on a periodic basis.
In general, the financial performance is based on the firm’s revenue and expenses. Most firms use software programs that can verify their information about revenue and expenses and determine whether the financial reporting is consistent with the information provided by various departments within the firm.
Integration of Management Functions:
To illustrate how the four different functions of management are integrated, consider a firm that makes children’s toys and decides to restructure its operations. Because of low sales, the top managers create a new strategic plan to discontinue production of plastic toys and to begin producing computer games. This planning function will require the use of the other management functions.
The organizing function is needed to reorganize the firm’s production process so that it can produce computer games. The leading function is needed to provide employees with instructions on how to produce the computer games. The controlling function is needed to determine whether the production process established to produce computer games is efficient and whether the sales of computer games are as high as forecasted.
In a small business, the owner may frequently perform all the management functions. For example, an owner of a small business may revise the strategic plan (planning function), reorganize the firm’s production facility (organizing function), assign new tasks to the employees (leading function), and then assess whether all these revisions lead to acceptable results (controlling function).
Use of Technology and Software to Improve Management Functions:
Technology facilitates the integration of management functions. The planning function may easily involve input from various managers through an online network. Once specific plans are set, they can be immediately communicated to managers at all offices or plants. Next, the managers decide how to achieve the plans that have been established.
Then they perform the leading function by offering instructions to their employees. They may provide some general instructions online and other instructions on a more personal level. Finally, an online network can be used to conduct the controlling function.
As employees perform their duties, their managers are informed of the amount of output produced, and they relay the information to the top managers who initially established the plans. If the operations are not working according to the plan, this will be detected within the controlling function. Under these circumstances, either the operations or the plan can be modified.
Software to Improve Management Functions:
Recently, computer software packages have been developed to help managers conduct their functions more effectively.
This software supports a wide range of activities, including the following:
(i) Personnel Hiring Software for screening job applicants, based upon psychological principles, can be used to assess attitudes and potential fit with the company. Software of this type has long been used at a number of well-known companies, such as Mrs. Field’s Cookies.
(ii) Personnel Evaluation:
Reviewing and evaluating personnel has long been a sensitive task that is dreaded by many managers. Software is avail-able that helps managers in constructing and writing reviews, as well as recording employee progress toward goals.
Such software can help managers get through the review process and can be extremely valuable in documenting poor performance leading to an employee termination. Such documentation can be extremely valuable if the terminated employee sues his or her former employer.
(iii) General Management:
A wide range of software is available to assist managers in day-to-day management activities. Calendar and scheduling software can be used for appointments and for time management. Personnel software can form the basis of a personnel system, keeping track of assorted information such as vacation usage, medical benefits, pension contributions, and so forth.
In addition, some versions of personnel software provide managers with templates for creating complete personnel manuals. Contact management software can help sales personnel keep track of customer calls.
Financial software can aid managers in making reasonable projections of future business. A wide range of software supports specific activities, such as creating presentations and business planning.
(iv) Negotiating:
A number of software packages have been developed that employ psychological models to help managers devise negotiating strategies for various situations. The software design is based on the principle that different negotiating styles should be employed when dealing with different types of individuals.
(v) Decision Making:
A growing number of software packages are designed to help managers make decisions more rationally. Using tested decision-making techniques, they force managers to identify and prioritize alternatives in such a way that they can be ranked in an internally consistent fashion.
(vi) Creativity:
Some software is designed to stimulate managerial creativity. Such packages employ techniques drawn from brainstorming research and may also employ question-and-answer sessions designed to inspire managers with new ideas.
Although it is unlikely that software will ever substitute for managerial experience, managers are increasingly using software to supplement their own management techniques.
Functions of a Manager
Management is a creative process which integrates and uses various available resources effectively to accomplish certain goals. For which, an individual is responsible to develop ideas and get things done through others. The concerned individual is designated as manager, any person who performs the functions of planning, organisation, staffing, directing and controlling for the accomplishment of pre-determined organisation goals is called as manager.
Manager is not actually doing the work but guide others to do things correctly. In other words, manager has not build factory uses or installs machines and operates them or sell goods in the market.
A growing tendency in business requires professionally qualified persons. The reason is that manager should direct the efforts of others at lower levels of an organisation. The primary job of a manager is the management of people.
According to Peter F. Drucker, “Every job should be designed as an integrated set of operations which are varied enough to reduce boredom. The workers should be given a sufficient measure of freedom to organise and control their work environment. It is the duty of every manager to educate, train and develop people below him so that they may use their potentialities and abilities to perform the work allotted to them. He has also helped them in satisfying their needs and aspirations through incentives and other things. For getting best contribution from the people working under him, he must provide them with proper environment. A manager must create a climate which brings in and maintain satisfaction and discipline among the people.” Hence, the job of manage is very difficult one and requires some significant qualities to get the possible results. The manager should have the capacity and capabilities to meet the challenges of his job.
Functions of a Manager – For Smooth Functioning of a Business Unit
The smooth functioning of a business unit depends on the performance of the manager. If a manager has adequate skill, he can discharge his duties effectively.
Generally, the following functions are performed by a manager:
1. Planning the work – Planning involves deciding the course of action well in advance. The manager can decide the procedure to be followed in order achieve the objectives of an organisation. Planning the work is a rational activity.
2. Taking decisions – Manager has to take a lot of decisions with regard to the assignment of work to every worker and delegation of authority to do a job. A wise decision can be taken by an efficient manager. Quality of decision is based on the intelligence of the manager.
3. Delegating authority – Manager should delegate authority whenever a project or work is assigned to others. Nobody can do anything without authority. So, the manager has to delegate authority on need basis.
4. Solving the problems – Sub-ordinates bring problems before the manager. The manager has to solve the problems instead of salving the problems quickly. Finding solution to a problem will prevent cropping up such problems in future.
5. Co-ordination – The tasks or activities of the sub-ordinates are co-ordinated for quick execution of a work. Increased productivity is to be achieved through effective co-ordination. Overall organisational objectives could be achieved only by the process of co-ordination of various individual efforts.
6. Stimulating workers – The workers have to be motivated to do their work. Workers will be idle in the absence of motivation. Motivation could be done by money or kind. The Manager has to choose between the two depending on the situation.
7. Setting target – Target is to be fixed by the manager section wise. Setting of target indicates the workers the extent of contribution made by them in the overall performance. Target is fixed on the basis of the main objectives of an organisation.
8. Guiding sub-ordinates – Even though the manager is a boss to his sub-ordinates, he can guide the sub-ordinates in the performance of their work. The Manager is acting as a friend at this stage. The guidance of the manager is indispensible a tonic to sub-ordinates.
9. Arranging the facilities – Availing the facilities in the working place is imperative for effective performance of any work. So, the manager has to arrange the required facilities. Besides, the manager has to watch over the utilisation of the facilities.
10. Control the deviations – The Manager has to control the workers if there is any difference between standards of performance and actual performance. The control ensures the right performance. The exercise of control is in the hands of the manager.
Functions of a Human Resource Manager – Managerial, Operative and Advisory Functions
Basically, there are two categories of functions involved in personnel management. These are managerial and operative. The managerial functions are concerned with planning, organizing, directing and controlling personnel. The operative functions of management are concerned with selection, training, placement etc. of staff.
Following are the functions of a Human Resource Manager:
The Human Resource Manager being a member of the management must perform the basic managerial functions of planning, organising, directing and controlling in relation to his department.
These functions are briefly discussed below:
(a) Planning is the foremost managerial function so substantial portion of managers time should be devoted to planning.
(b) For a personnel manager, planning means to determine in advance about personnel programme that will contribute to the goals established for the enterprise i.e. anticipating vacancies, planning job requirements and descriptions and determining the source of recruitment.
ii. Organising:
(a) After determining the objectives and plans for an enterprise, the personnel manager has to establish an organization to carry them out.
(b) This function involves:
(i) Grouping of personnel activities.
(ii) Assignment of different activities to different individuals.
(iii) Delegation of authority to carry them out.
(iv) Provision for co-ordination of activities performed by different individuals.
iii. Direction:
(a) It involves encouraging people to work willingly and effectively. The personnel manager must inculcate in the workers a keen appreciation of enterprise policies.
(b) It involves career planning, salary planning and administration, ensuring employee morale, developing cordial industrial relations and provision of safety requirements and welfare of employees.
(a) It is concerned with regulation of activities in accordance with the personnel plans.
(b) It involves observation and comparison of results with the targets and correction of deviations that have occurred and helps in evaluating the performance of personnel department in discharging the various operative responsibilities.
The personnel department performs the following operative functions:
i. Employment (Procurement Function):
This function is basically concerned with the employment of right kind and right number of persons in order to achieve the objectives of the organization. The function basically involves manpower planning, recruitment, selection, placement, promotion, transfer and other related issues.
ii. Development:
Training and development of employees is another important operative function of personnel management. It is basically concerned with arranging various programmes in order to improve knowledge, skills and abilities of employees for achieving their better performance on job.
Training and development programmes basically are designed to improve employee’s efficiency on the job, orientation to achieve and improve decision making abilities etc. Personnel department should arrange training for new as well as for old employees to update their knowledge and thus helps to improve their efficiency.
iii. Compensation:
This function deals with the determination of adequate and equitable remuneration of the people in the organisation for their contribution to the organizational goals. The basic component of compensation programmes includes job evaluation, wage policies, wage systems, incentives and terms of employment.
iv. Maintenance:
Working conditions influence the motivation and morale of the employees. Maintenance function includes various health and safety measures for employees on work in the organization. It also covers various welfare measures such as canteen, education of employees’ children and insurance, rest rooms, recreational facilities.
v. Motivation:
Employees work in the organization for the satisfaction of their needs. HRM function not only includes putting right men on right job, but it also comprises of motivational programmes, i.e., incentive plans to be framed for further participation and employment of employees in a concern. Thus, financial and non-financial rewards should be designed to motivate the employees.
vi. Personnel Records:
Personnel department maintains the records of the employees’ training, achievements, transfer, promotion, etc. It also preserves many other records relating to the absenteeism and labour turnover, personnel programmes and policies of the organization.
vii. Industrial Relations:
The personnel manager is responsible for maintaining good and healthy industrial relations. He should always try to reconcile the interest of personnel with that of the organization. In case of any disputes, the personnel manager can do joint consultation, negotiation with trade unions and collective bargaining.
viii. Separation:
The first function of personnel management deals with the employment whereas the last relates with the separation. The organization should ensure the provision of retirement benefits to the employees whose
Personnel / Human resource manager has specialized education and training in managing human relations.
He offers his advice to:
i. Top Management:
Personnel manager advises the top management to formulate and evaluate personnel programmes, policies and procedures so that good human relations can be maintained.
ii. Departmental Heads:
Personnel manager also provide suggestions to the heads of various departments regarding manpower planning, job analysis and design, recruitment and selection, placement, training, performance appraisal, etc.
Functions of a Finance Manager – Funds Requirement, Financing, Investment, Dividend and Valuation Decisions
A finance manager is expected to perform the following main functions:
1. Funds Requirement Decision:
This is the most important function performed by the finance manager. A business requires funds for its operations. Funds may be required for short term or for long term. Financial management helps in estimation of funds required both for short-term as well as long-term. It does the important task of striking a balance between short-term and long-term requirements. A careful estimate has to be made about the total funds required for both the fixed and working capital requirements.
This is an important decision for the finance manager. It is concerned with determination of the quantum of finance, the amount that can be raised from each source and the cost and other consequences involved. After making the finance forecasting and planning, the next step will be to acquire funds.
The finance executive must find out the various sources available for acquiring funds. These sources may be long-term or short-term. The various long-term sources are issue of shares, debentures, long-term loans from financial institutions, etc. The various short-term sources are bank credit i.e., short-term loans, cash credit, overdraft facilities, discounting of bills of exchange, trade credit, factoring, lease finance, etc.
Investment decision refers to planning the deployment of available capital for the purpose of maximization the long-term profitability of the firm. This comprises decisions relating to investment in both fixed assets and current assets. The finance manager has to evaluate different capital investment proposals and select the best keeping in view the overall objective of the enterprise.
It is the firm’s decision to invest its current funds most efficiently in long-term activities in anticipation of flow of future benefits over a series of year. Capital budgeting decisions are the most crucial and critical business decisions because the success or failure of a concern based on these decisions.
The dividend decision involves the determination of the percentage of profits earned by the enterprise, which is to be paid to the shareholders and the percentage of profits that should be retained as retained earnings. Dividend is the portion of earnings of a firm which is distributed among the shareholders. A firm may distribute only a part of or a certain percentage of profit among its shareholders.
Dividend policy is the determination of the division of earnings between payments to shareholders and retained earnings. The establishment of dividend policy is another important function of finance manager. Every firm needs to have a clear dividend policy. Formulation of a proper dividend policy is also the major concern of the finance executive.
In a globalised world, one hears about a number of mergers, acquisitions and consolidations that take place every day. They have become one of the modes of expansion and diversification. It also can help a firm in improving its financial position. Valuation of a corporate entity is at the very base of a decision involving mergers, acquisitions and consolidations. The top management of a company may not have the adequate knowledge and experience to make valuations of a corporate entity.
Such valuation decisions also are made under analysis of vast amounts of financial data which involves good financial knowledge and expertise. Such decisions have long term repercussions on a firm’s financial position. The top management relies on the finance executive for corporate valuations. A finance manager must assist the top management in making accurate valuations. This decision is a very crucial decision because the future expansion and diversification is based on this decision.
Inter-Relationship and Inter-Dependence between the Financial Decisions of a Firm:
Although there are different kinds of financial decisions to be made by a company engaged in the proper management of its finance, the basic objective behind all these decisions is the same, which is the maximization of the wealth of the shareholders. All the financial decisions of a firm are inter-related, inter-dependent and they influence one another.
The amount and time of availability of funds depends on the funds requirement decision. The decision to invest cannot be taken without having necessary finance for undertaking the investment in the proposal. The financing decision influences and is also influenced by the dividend decision. Valuation decision is influenced by the investment decision and the dividend decision.
Valuation decisions may impact a firm’s funds requirement decision, its financing decision, its investment decision and its dividend decision. So an efficient financial management never makes these decisions in isolation without considering the effect of one decision on another and with due consideration whether the implementation of the decision results in the maximization of the wealth of the shareholders.
So an efficient financial management always:
i. Takes the optimal joint decision by evaluating each of the decisions involved in relation to its effect on shareholder’s wealth.
ii. Considers the joint impact of these decisions on the market value of the company’s shares.
Functions of a Sales Manager – Hiring, Training, Evaluating Training Results, Coaching, Motivating, Changing Trends in Sales Incentives and a Few Others
Sales executives at different levels of an organization’s hierarchy are to undertake different activities and functions so that proper marketing efforts can be ensured.
The sale people at the lower levels are generally concerned with executing the various plans and activities that have been devised by the sales executives at the higher level and one such executive concerned with the sales department of any organization is the sales manager.
It is the function of the sales manager of any sales team to ensure that proper workforce is recruited for the selling activity apart from keeping them motivated and inspire them to achieve targets on a consistent basis.
We will now look at some of the prominent functions of the sales manager in any sales organization:
1. Hiring:
It is the function of the sales manager to first understand the basic traits required to sell a particular product of an organization and accordingly scout for people who can be the potential sales people of the company. Any hiring activity done by the sales manager should aim at establishing a symbiotic relationship with the organization.
2. Training:
Once the suitable manpower is recruited, they are to be trained on the company culture and the products that are to be sold. The recruited work force need to briefed about the features and the associated benefits so that they are equipped in terms of product knowledge and are able to handle customer queries and complaints convincingly.
3. Evaluating Training Results:
After the training is over, it is the function of the sales manager to see to it that the newly recruited work force have correctly understood the content of the training program. This can be evaluated by way of written test or having some mock sales call where they are presented situations where they are to apply the tricks of the trade taught during the training program.
4. Coaching:
It is something which is a bit different from the initial training activity. Over here, mentoring takes place on a consistent basis so that the sales executives do not feel left out or uncared for. Continuous up gradation of product knowledge is required more so if the product happens to be a sophisticated one that is continuously evolving.
5. Motivating:
In any sales job, there are instances when executives or rather the front line sales executives feel depressed when targets are not achieved or they face the wrath of the customer. It is the function of the sales manager that his team members are always charged up and never short of confidence. It is to be seen that they stay motivated and are optimistic about achieving the targets given to them.
6. Changing Trends in Sales Incentives:
Sales as a profession has undergone significant evolution over the years in the way it is approached and executed and hence the incentive pattern is also required to be changed so that the sales force feel that they are getting what they deserve.
Sales managers need to evaluate the pattern of disbursing incentives so that no one in team feel deprived and it constantly pushes them to work as a team and challenge newer frontiers in terms of targets.
7. Setting Targets and Tracking Results:
This happens to be one of the most crucial function of the sales manager. The targets are to be set keeping the individual strengths and weaknesses in mind so that the team as a whole is found to perform and there is not wide disparities existing in the capabilities and results obtained by individual executives within a sales team. Proper tracking mechanisms have to be implemented so that the targets achieved by individuals within a group can be correctly analyzed.
8. Recognizing and Rewarding Performance:
The tracking of results will reveal certain performance measures in which a manger will find that there will be high performers and there will be some who will not be performing quite well.
The manager needs to identify the top performers within a group and reward them suitably so that not just they are motivated to achieve more in the subsequent month but this activity inspires the others in the group to achieve more in the coming months.
9. Providing Leads and Sales Support:
Apart from the reward and recognition programs, sales managers are often found to motivate their staff members by providing leads and other forms of sales support. This ensures that the sales staff feels that their boss is concerned about the performance of his executives and he is trying from his end to help them out and aiding the process of creation of new sales pipelines.
10. Organizing the Sales Efforts:
The sales department of any organization has a number of activities to be performed and proper organizing and coordination is required so that optimal performance is secured. Activities related to dealing with the channel members or promoting to the channel members or promoting to the customers are all needed to be organized properly.
11. Conducting Sales Meetings:
Another crucial and almost a regular function of the sales manager in most organizations where the daily performance of the sales force is evaluated and certain feedback given. Also certain specific problems are listened to and solutions offered.
Functions of an International Manager – Planning, Organizing, Staffing, Directing and Controlling
Following are the functions performed by international manager:
1. Planning:
The first stage of international planning is to decide how to do business globally: whether to export, to enter into licensing agreements or joint ventures, or to operate as a multinational corporation with facilities in a foreign country. To develop forecasts, goals, and plans for international activities, the manager must monitor environments very closely.
While planning; factors such as political instability, currency instability, competition from Governments, pressures from Governments, patent and trademark protection, and intense competition should be taken into consideration.
2. Organizing:
International businesses must be organized so that they can adapt to cultural and environmental differences and thus be responsive to foreign customers, employees, and suppliers. As an organization extends its operations internationally, it needs to adapt its structure.
When the organization increases its international focus, it goes through the following three phases of structural change:
(a) Pre-International Stage:
The first strategy used to introduce a product to a foreign market is to find a way to export the product. In this stage, the firm adds an export manager as part of the marketing department and finds foreign partners.
(b) International Division Stage:
Enforcement of host country laws, trade restrictions, and competition may prove cost disadvantage to firm. When a company decides to defend and expand its foreign market position by establishing marketing or production operations in one or more host countries, it establishes a separate international division.
(c) Global Structure Stage:
A company is ready to move when it meet the following criteria i.e. the international market is as important as the domestic market; senior officials in the company possess both foreign and domestic experience; As foreign operations become more important to the bottom line, decision making becomes more centralized at corporate headquarters.
The hiring and development of employees must be done very carefully. Management must be familiar with the country’s national labour laws. It must decide how many managers and personnel to be hired for the business.
Managers involved in international business come across many factors that are different from those of the domestically -oriented firm. Cultural differences, employee attitudes toward work, language barriers make the directing function more difficult for the international manager.
To minimize problems arising from cultural differences, organizations are training managers so that managers can interact with employees who have different educational and cultural background and value system.
Geographic dispersion and distance, language barriers, and legal restrictions complicate the controlling function. Meetings, reporting, and inspections are typically part of the international control system. Controlling operations is a crucial function for multinational managers.
Functions of a Marketing Manager – Integrated Marketing, Determining Objectives, Product Policy, Proper Planning, Selling and Service
Under the total marketing concept the objective is to manage the business in such a way as to make and sell what the customer wants at a reasonable price that he is willing to pay and with product characteristics that he wants in the product.
These products should be made available when and where the customer wants them to be made obtainable. In short all aspects of the business must be consumer oriented. The marketing manager must perform all such functions which are necessary to this objective.
A systematic marketing management requires the crystalizing of the company’s overall objectives and determining consistent marketing objectives.
The following are considered the basic functions of a marketing manager:
(i) Integrated Marketing:
The marketing manager has to take decisions in various elements of the marketing mix in an integrated way. The customer does not pay attention only to the price of a product but there are other factors also which affect his decision to purchase a particular product.
He is influenced by the firm’s advertising and promotional strategy and the convenience of the distribution arranged from the customer’s view point.
The marketing manager has to keep his company’s interests in mind. He tries to reduce the cost of marketing the products while at the sometime winning the goodwill of the customers. He also strives to maximise the sales and profits for his company. The task is pretty difficult and requires constant control and evaluation resulting in improvements in planning of the marketing strategy.
The marketing manager coordinates the activities of all the departments in a productive unit. The production department, finance departments etc. adjust their policies on the direction and suggestion of the marketing executive. His task is therefore very important.
Under integrated marketing some of the important activities of the marketing management are as follows:
(a) Collection of necessary information regarding marketing.
(b) Analysing the data and draw conclusions.
(c) Product development.
(d) Search and development of new marketing techniques.
(e) To check out detailed marketing programme.
(f) To implement that marketing programme.
(g) To coordinate between the wants of the customers and their satisfaction.
(ii) Determining Objectives:
The marketing objectives should be broad enough and should be based on situational analysis, i.e., the position in which the company is operating and the nature of its customers. It is in the light of the overall company objectives that the overall marketing objectives have to be fixed.
The chief executive must know in specific terms whether he wants a return on investment of say 12 per cent after taxes or whether his company wants to be a price leader. He must also crystalize the product objectives, pricing objectives distribution strategy objectives and his promotional objectives. All these objectives should be integrated and directed towards his overall marketing objectives.
(iii) Product Policy:
The marketing executive should be very clear in his mind as to the type of customers for whom his products are intended. His product policy objectives must be in terms of customer orientation and are in conformity of the overall marketing objectives.
(iv) Proper Planning:
Planning is deciding in the present what to do in the future. All firms carry out some sort of planning. The marketing manager has to plan how the objectives that have been determined be implemented.
For proper planning the marketing manager has to perform the following tasks:
a. Marketing research, forecasting the demand and developing the marketing activities.
b. Determining product line strategy and planning for product diversification.
c. Planning sales policies and their implementation.
d. Planning the long term marketing programme.
e. Co-ordinating the activities of production, finance and service departments.
(v) Selling:
The marketing executive performs the following functions in regard to selling:
a. To direct the sales manager to regulate sales.
b. To organise sales territories and to fix their sales quota.
c. To select and train personnel for the sales department and organise sales.
d. To organise and develop distribution channels.
e. To advertise and organise sales promotion and public relations.
(vi) Service:
After-sales service is regarded as an essential part of modern marketing management. In fact all the functions of the management are integrated and it is realised that the company policies and operations should be customer oriented. The maximum satisfaction of the consumers should be the primary concern of marketing.
Customer’s satisfaction should be considered to the first motto. The complaints and the suggestions of the customers would be promptly attended to by the marketing management division.
We can summaries the functions of a marketing manager thus:
(a) To work with top management and set the marketing policies;
(b) To supervise the co-ordinate various activities;
(c) To find out new markets;
(d) To evaluate the product;
(e) Development of new products;
(f) To select the channels and methods of Distribution;
(g) To formulation, coordinate and supervise the marketing programme;
(h) To study economic and political conditions in context to their influences on the sale of the products.
Functions of a Manager – 5 Basic Functions: Planning, Organizing, Staffing, Leading, Influencing and Controlling
Managers are known by the work they do, the functions they perform. According to the functional approach, originated by Henry Fayol, in every organization managers perform certain basic functions in order to achieve results. These functions may be broadly classified into five categories – planning, organizing, staffing, leading, and controlling. Managers perform these functions within the limits established by the external environment and must consider the interests of such diverse groups as government, employees, unions, customers, shareholders, competitors, and the public.
A brief discussion of the five basic functions is presented here:
1. Planning:
Planning is the process of making decisions about the future. It is the process of determining enterprise objectives and selecting future courses of actions necessary for their accomplishment. Planning can also be referred to as the process of deciding in advance what is to be done, when and where it is to be done, how it is to be done and by whom it is to be done.
Planning provides direction to enterprise activities. It helps managers cope with change and enables them to measure progress toward the objectives so that corrective action can be taken if the pace of progress is not satisfactory. Planning is a fundamental function of management and all other functions of management are influenced by the planning process.
2. Organizing:
Organizing is concerned with the arrangement of an organization’s resources, i.e., people, materials, technology, and finance, in order to achieve enterprise objectives. It involves decisions about the division of work, allocation of authority, and responsibility, and the coordination of tasks. The function increases in importance as a firm grows.
A structure is created to cope with problems created by growth. Through this formal structure, the various work activities are defined, classified, arranged, and coordinated. Thus, organizing refers to certain dynamic aspects – What tasks are to be done? Who is to do them? How the tasks are to be grouped? Who is to report to whom? Where the decisions have to be made?
3. Staffing:
A manager’s greatest responsibility is to select, direct, develop, and evaluate the people of the organization. People are the source of all productive effort in organizations and, hence, need to be nurtured carefully. Staffing is the function of employing suitable persons for the enterprise. It may be defined as an activity where people are recruited, selected, trained, developed, motivated, and compensated for manning the various positions. It includes not only the movement of individuals into an organization, but also their movement through (promotion, job rotation, transfer) and out (termination, retirement) of the organization. Staffing involves selection of the right man for the right job.
It has four important elements:
i. Recruitment may be defined as the process of attracting the maximum number of applications for a particular job
ii. Selection is the process of screening the candidates and choosing the best ones out of them
iii. Training involves imparting the necessary knowledge and skills required for the performance of a particular job
iv. Compensation is the price paid to the workers for the services rendered to the organization.
4. Leading and Influencing:
Leading is stimulating people to become high performers. It includes motivating and communicating with employees, individually, and in groups. Influencing may be defined as guiding the activities of organization members in appropriate directions. An appropriate direction is any direction that helps the organization move toward goal attainment. The ultimate purpose of influencing is to enhance productivity. The leading and influencing function typically had a number of different labels and is being studied under various heads over the years.
Let’s look into these closely:
i. Direction and Supervision:
The function of guiding and supervising the activities of the subordinates is known as directing. According to Dale, direction is telling people what to do, and seeing that they do it to the best of their ability. Acquiring physical and human assets and suitably placing them on jobs will not suffice; what is more important is that the people must be directed towards organizational goals. Supervision is seeing the subordinates do their work and do it as directed. It also involves overseeing employees at work.
ii. Leadership:
Leadership is the process of influencing the actions of a person or a group to attain desired objectives. A manager has to get the work done with and through people. The success of an organization depends upon the quality of leadership shown by its managers.
iii. Motivation:
Motivation is the work a manager performs to inspire, encourage, and impel people to take required action. It is the process of stimulating people to take the desired courses of action. In order to motivate employees, a manager must provide a congenial working atmosphere coupled with attractive incentives.
iv. Communication:
Communication is the transfer of information and understanding from one person to another. It is a way of reaching others with ideas, facts, and thoughts. Significantly, communication always involves two people – a sender and a receiver. Effective communication is important in organizations because managers can accomplish very little without it.
5. Controlling:
The objective of controlling is to ensure that actions contribute to goal accomplishment. It helps in keeping the organizational activities on the right path and aligned with plans and goals. In controlling, performances are observed, measured, and compared with what had been planned. If the measured performance is found wanting, the manager must find the reasons for the same and take corrective actions.
If the performance is found to be adequate, some planning decisions must be made, altering the original plans. If the controlling function is to be effective, it must be preceded by proper planning. Thus, controlling includes four things – (i) setting standards of performance; (ii) measuring actual performance; (iii) comparing actual performance against the standard; and (iv) taking corrective actions to ensure goal accomplishment.