Subject: Principles of Business

Section 2: Internal Organizational Environment

Sub-topic: Functions of Management

 Objectives

1. Define the concept Management

2. Describe the SMART acronym manager use to
aid them with planning.
3. Outline the functions of management
4. Discuss the functions of management.
 Key Terms
Manager- A manager is a leader who is expected to
organize people, resources and finances by setting up
systems and procedures in a logical and efficient way.

Business management- this involves a set of task that help

organisations to make the best use of their financial,
human, natural and human-made resources.
 What is
Management?

Management is the process of combining all the resources of an

organisation (human and non human ), in an effort to achieve
the various goals of the organisation.
 Introduction

A manager is responsible for directing and/or controlling part or all of an

organisation. Management involves different levels of seniority, from senior
and middle managers down to junior and trainee managers.

All organization need good managers. Good managers help to make other
employees more productive than they would have been without them. A
poorly managed organization is unlikely to meet its aims and objectives.
Managers include:
♣ Company directors ♣ Team leaders
♣ Supervisors ♣ Heads of departments
♣ Head chef in a restaurant
♣ Chief surgeon or nurse ♣ Chief constable
What are the functions of
Management
 Planning
This is the process of establishing short-term and long-term goals
and objectives and deciding on the tasks and resources needed to
achieve these goals.
The process of planning involves setting out steps for the
attainment of future organizational objectives; this includes:
formulating policies and programmes
Designing procedures
Budgets
Rules
The SMART acronym is
often used by management to
help create sensible and
meaningful goals. These
goals help ensure that the
business can measure its
performance accurately.
 Specific Measurable
Both long term and short This means setting out clear,
term goals set for the quantifiable criteria for measuring
business should be the progress towards each goal,
and assessing when each one has
detailed, direct, clear and been reached.
meaningful.
At this point the manager should
When? Where? Why? be able to provide answer for the
Who? What? Which? following questions:
1. How much?
Questions must be able to 2. How many?
answer from a specific 3. How will I know when goal is
accomplished?
goal.
 Relevant
Goals should depicted a
Attainable sensible and practical
Goals should be possible idea of what can be
within the given time achieved. Objective set
period and the tools and should be appropriate to
resources are at your both employees and
disposal to attain it. management as well as
their job role and
functions.
 Time-based
Goals have a clear define timeline including a start date and a
deadline to create urgency. Setting an end point for the goal
give employees a clear target to achieve.
 Organising
This involves bringing together all the necessary resources of the
factors of production, namely, land, labour, capital and enterprise
and combining them effectively to achieve the goals of the
company. This means management must:
assigning clear duties and responsibilities to the varied
departments.
establishing work schedules,
allocating the necessary resources to the respective
departments.
 ensuring that the lines of authority or the chain of command are very

clear so that employees are certain as to what their tasks are and to
whom they are to report.
The Organizing process involves:
1. Identifying the tasks that must be performed and grouping them
whenever necessary
2. Deciding who will undertake each tasks
3. Assigning these tasks to the personnel while delegating their
authority and responsibility.
4. Coordinating individuals to perform the necessary activities
5. Making sure that things are done on time and in an ordered way.
 Directing
Directing involves assigning task to employees, and
ensuring that these are clear, achievable and in line with
the overall goals of the organisation.

This means management must guide subordinates by giving them

instructions to perform the tasks assigned for the achievement of
organizational goals
 Controlling
The performance of employees needs to be monitored against the standards
of performance that have been set.
This helps managers determine whether the organisation is on target to
achieve its overall goals and objectives.
If actual performance does not measure up to the desired level of
performance, then management is required to use that information to take
the necessary steps to address the problem. (e.g. allocating more resources

to tasks).
 Steps in controlling

Establishment of standard performance.

Measurement of actual performance.
Comparison of actual performance with the standards and finding
out deviation if any.
Corrective action
 Coordinating

Managers must bring together all the factors of production and the
departments of the business function as an integrated or
interdependent unit- working together towards the attainment of
overall organizational goals.
 Delegating
Delegating involves sharing the workload
across the organisation from top management
down to middle and junior managers,
supervisors and floor employees.

Some measure of responsibility and authority

may be given to individuals at lower-level or
subordinate positions within the organisation
 Motivating
It is important to create an environment in which employees feel enthusiastic
about their jobs and therefore accomplish their assigned task to the highest
standard possible.

Providing employees with good working conditions, attractive salaries or

bonus, recognition through award scheme, and opportunities for promotion
and career development are some of the ways organisation can motivate
staff.
These rewards inspires workers to give of their best
 Research
1. What is Management?
2. What is the Acronym used by managers to aid
them with the creation of meaningful goals
when planning?
3. State what each letter of the Acronym
‘SMART’ represent.
4. Briefly explain the elements of the acronym “
SMART”
5. List the functions of management
6. Explain each functions of management outline
at question 6.
 wrire the management function in column B that best corresponds with the management
activities in column A.

COLUMN A: Management Activities COLUMN A:

management function
Rewarding employees for excellent job performance.
Developing long-term and short-term goals for the firm.
Ensuring all departments work together.
Ensuring that all the factors of production are available to
departments.
Ensuring that all employees performance matches the desired
standard.
Assigning authority and responsibility across the organisation