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Unit 1: Introduction to Management




                 certain coalitions  within a company. They  often draw  upon such relationships to win  Notes
                 support for their proposals and decisions.
            4.   Managers are diplomats: Managers serve as official representatives of their work units at
                 organisational meetings. They may represent the entire organisation as well as a particular
                 unit in dealing with external groups (clients, customers, government officials, etc.).
            5.   Managers are symbols: Managers are symbols of corporate success or failure. They get
                 applause when they succeed and get depreciated and attacked when they fail. In short,
                 they represent corporate as well as employee aspirations. They are shown the door when
                 these aspirations do not materialise.

            Managers, obviously, are there to utilise corporate resources in the best possible way.
            More popular and widely accepted is the classification given by Henry Fayol. According to him,
            the managerial functions may be broadly classified into five categories: planning, organising,
            directing,  staffing  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. For
            theoretical purposes, it may be convenient to separate the management functions and study
            them independently but practically speaking, they defy such categorisations. They are highly
            inseparable.
            Each function blends into the other and each can be performed in any order or sequence, not
            necessarily in the order shown above, but tend to be performed (normally) in the planning,
            organising, leading and controlling sequence. A brief discussion of the five basic functions is
            presented under:

                               Figure 1.3:  Henry Fayol—Functions  of a  Manager

                                    Planning
                                                             Commanding


                             Organising


                                                              Controlling

                                    Coordinating

            1.   Planning: Planning is the process of making decisions about future. It is the process of
                 determining enterprise objectives and selecting future  courses of actions necessary for
                 their accomplishment. It is 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. Planning provides direction
                 to enterprise activities. It helps managers cope with change. It enables managers to measure
                 progress toward the objectives so that corrective action can be taken if progress is not
                 satisfactory. Planning is a fundamental function of management and all other functions of
                 management are influenced by the planning process.

            2.   Organising:  Organising  is  concerned  with  the  arrangement  of  an  organisation’s
                 resources  – 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




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