 MANAGEMENT FUNCTIONS

CLASSIFICATION OF MANAGEMENT FUNCTIONS

• Managerial
functions

 MANAGEMENT FUNCTIONS

• Operative
functions
 CLASSIFICATION OF MANAGEMENT FUNCTIONS

Managerial functions
a) Planning
b) Organising
a) Staffing
b) Directing
 MANAGEMENT FUNCTIONS c) controlling

Operational functions
a) Production
b) Marketing
c) purchasing
d) Financing
e) Personnel
 CLASSIFICATION OF MANAGEMENT FUNCTIONS

 According to Luther Gullick gave the Key word;

 P........................Planning
 O......................organising
 D......................Directing
 S......................Staffing
 C0............coordinating
 R.......................Reporting
 B......................Budgeting
 Management Process
MANAGEMENT PROCESS

STAFFING PLANNING

DIRECTING ORGANISING
 MANAGARIAL FUNCTIONS AND SUBFUNCTIONS

 PLANNING ...Forecasting, decision making ,strategy, formulation

policy-Making,programming,scheduling,budgeting
problem solving,innovation,investigation and Research
. ORGANISING...Functionalisation,divisionalisation,departments,
Decentralisation,activity,analysis,task,span of
management, task allocation
STAFFING...... Manpower planning,Recruitment,selection,training,
placement,compensation,promotion,appraisal
DIRECTING......Supervision,motivation,communication,leadership
actionCONTROLLING Fixation of standards,recording,measurement
reporting,corrective
 Planning
 Planning is deciding in advance what is to be
done in the future
 “According to koontz and O ‘Donnell defines
planning is deciding in advance what to do, how
to do it, when to do it and who is to do it.
Planning bridges the gap from where we are to
where we want to go. It makes it possible for
things to occur which would not otherwise
happen”
 Features of planning
 Planning seeks to achieve certain objectives.
 Planning is oriented towards the future.
 Planning is a mental exercise
 Planning involves choices from alternatives
 Planning is the basics for all other functions.
 It is a continuous function
 It is pervading.
 Planning is directed towards efficiency.
 Steps in planning
 Collecting information about past
 Defining objectives
 Developing planning premises
 Discovering alternative cources of action.
 Evaluating alternatives.
 Choosing the best alternatives
 Defining subsidiary plans
 Periodic revision and review of plans.
 Advantages of planning

 It focuses attention on desired objectives

 It helps to minimise risk
 It improve efficiency
 It avoid confusions
 It encourage innovation and creativity
 It enables co operation and group work
 It serves as the basis of control.
 Limitations of planning
 Lack of accurate information
 Time consuming
 Expensive
 Rigidity due to strict compliance with plans
 Unwillingness to people change
 External limitations (political )
 How we overcome the limitations?

 Top management support

 Better forecasting
 Developing clear-cut objectives
 Participation of employees in planning
 Sound communication
 Overcoming resistance to change
 Scientific planning
 Well balanced keeping plans.
 Organising
 According to Henri fayol “To organise a business
means to provide it with everything useful to its
functioning-raw materials,tools,capital and
personnel”
 Steps in organising
 Identifying the activities required for achieving
objectives.
 Classifying these activities in to convenient groups
 Assigning the group of activities to appropriate
persons.
 Delegating authority and fixing responsibilities.
 Coordinating Authority Responsibility relationship
throughout the enterprise.
 Importance of organising
 Sound organisation facilitate growth and diversification
 Optimum use of human resources by matching work with
talent
 Maintain good harmonious structure in the office
 Group activity is equivalent to social structure of
organisation
 It is a mechanism of management to direct ,controls and
coordinates the activities of enterprise.
 Staffing
 It is concerned with the Human resources
of the enterprise.
 It is concerned with
acquiring,developing,utilising,and
maintaining human resources.
 It is a process of matching jobs with
individuals to ensure right man for the right
job.
 Directing

 It is concerned with the execution of plans

through organised action.

 It is also known as commanding or

actuating
PRODUCTION PLANNING AND
CONTROL
 PRODUCTION PLANNING
Meaning:-
Production planning involves management decisions on the
resources that the firm will require for its manufacturing operations
and the selection of these resources to produce the desired goods at
the appropriate time and at the least possible cost.

Definition:-
"The planning of industrial operations involves four
considerations, namely, what work shall be done, how the work
shall be done and lastly, when the work shall be done - kimball
and kimball
 OBJECTIVES OF PRODUCTION
PLANNING
1.To determine the requirements of men, material and equipment.
2.Arranging production schedules according to the needs of
marketing demand.
3.Arranging various inputs at a right time and in right quantity.
4.Making most economical use of various inputs.
5.To achieve coordination among various departments relating
to production.
6.To make all arrangements to remove possible obstacles in the
way of smooth production.
7.To achieve economy in production cost and time.
8.To operate plant at planned level of efficiency.
9.Making efforts to achieve production targets in time.
10.Providing for adequate stocks for meeting contingencies.
 PRODUCTION CONTROL
Meaning:-
Production control guides and directs flow of production so that
products are manufactured in a best way and conform to a
planned schedule and are of the right quality.Control facilitates
the task of manufacturing and see that every theme goes as per
the plan.
Definition:-
"Production control refers to ensuring that all which occurs is in
accordance with the rules established and instructions issued.“
-HENRY FAYOL
 OBJECTIVES OF PRODUCTION
CONTROL
1.To implement production plans by issuing orders
to those who are supposed to implement them.
2.To ensure that various inputs like men, machine,
materials etc. are available in the required quantity
and quality.
3.Making efforts to adhere to the production schedules.
4.To ensure that goods are produced according to the
prescribed standards and quality norms.
5.To undertake the best and most economic production
policies.
6.To introduce a proper system of quality control.
7.To ensure rapid turnover of production and minimizing
of inventories of raw materials and finished products.
 PRODUCTION PLANNING AND
CONTROL
Meaning:-
Production planning and control is concerned with directing
production along the lines set by the planning department.

Definition:-
"Production planning and control is the co-ordination of series of
functions according to a plan which will economically utilize
the plant facilities and regulate the orderly movement of goods
through the entire manufacturing cycle from the procurement
of all materials to the shipping of finished goods at a
predetermined rate."
-CHARLES A. KOEPKE
 CHARACTERISTICS OF
PRODUCTION PLANNING AND CONTROL

1. It is the planning and control of manufacturing process

in an enterprise.
2.Questions like-what is to be manufactured? when it is tobe
manufactured? etc.
3.All types of inputs like materials,men,machines are
efficiently used for maintaining efficiency of manufacturing
process.
4.Various factors of production are integrated to use them
efficiently and economically.
5.The manufacturing process is organised in such a way
that none of the work centres is either overworked or
under worked.
6.The work is regulated from the first stage of procuring
raw materials to the stage of finished goods.
 Need/Importance of Production Planning and
Control

For Increasing Production:- The main purpose of production

planning, function is to arrange various inputs like men, materials
and machines and integrating them for making their best use.
When various factors of production are economically used then
production will certainly go up. Efforts are made to avoid
production stoppages for want of various inputs. A production
control Programme will minimize the idleness of men and
machines.

For Co-coordinating Plant Activity: - Production planning

helps in controlling plant activities. Production targets are set on
the basis of sales forecasts. The raw materials, men and equipment
are arranged by keeping in view production plans. Different
production activities are adjusted as per the plans. If production is
carried out in a number of processes then their activities are
synchronized for smooth working.
 For Cost Control: - It helps in controlling various costs. In the
absence of a proper production plan, the idleness of men, material
and equipment may not be noticed. Whenever performance is
below standards then corrective measures are taken to rectify it. A
properly planned system of production will help in controlling
costs by not only making full utilization of various inputs but also
by increasing output and lowering overhead expenses per unit.

 For Rationalisation of Production Activities: - An

important objective of production planning and control is also to
regulate the flow of various inputs into the production system for
running it smoothly. The system is planned in such a way that
everything is done automatically. The supply of materials and men
follows the demand for goods. The quality standards are followed
in routine and sub-standard products are discarded in the
processes. The process of entering of raw materials and converting
them into finished
 5. Consumers: - The consumer is ensured good
quality goods. The process will help in raising
quality standards of products. The supply of goods
is also prompt and consumer has not to wait for
them.Production schedules are prepared by
keeping in mind the requirements of consumers.
The supplies are regulated for meeting the
demand for goods. The increase in production
also helps the consumer in getting sufficient
supply of goods.
Limitations of production planning and control

1. Based on Assumptions: - Production planning and control is based on

certain assumptions. In case the assumptions prove correct then the
planning and control will go smoothly, otherwise it may not. The
assumptions generally are about plant capacity, orders, availability
of raw materials and power etc. if these assumptions go wrong then
the process of planning and control will go weak.

2. Rigidity: - Under production planning and control the things are pre-decided and
fixed. There is rigidity in the behavior of employees and it may not help in
smoothening the flow of work.

3. Difficult for Small Firms: - This process is time consuming and small firms
may not be able to make use of production planning and control.

4. Costly: - It is a costly device as its implementation requires separate persons to

perform the functions of planning, dispatching, expediting etc. Small firms cannot
use the services of specialists due to cost factor.
5. Dependence on External Factors: - The external factors
sometimes reduce the effectiveness of production planning and
control. The factors like natural calamities, change in technology,
change in fashion, breakdown of power, government controls etc.
limit the use of production planning and control.

Techniques or Elements of Production Planning and

Control
The following are the techniques of production planning
and control:
A. Planning B.Routing
C. Scheduling D. Dispatching
E. Follow-up and Expediting F. Inspection
Planning

 It is the first element of production planning and control. Planning is given

an important role in every business. A separate department is set up for this
work. Planning is deciding in advance what is to done in future. Control
devices are also decided in advance so that all activities are carried on
properly. An organizational set up is created to prepare plans and policies.
Various charts, manuals and production budgets are also prepared. If
production planning is defective then control will also be defective.
Planning provides a sound base for control.

Routing

 It is determining the exact path or routing which will be followed in

production. The stages from which goods are to pass are decided after a
proper thought. Routing may be compared to a train journey for reaching a
particular place. If a passenger is to reach Delhi from Ambala Cantt then
he has the option of going via Panipat and via Saharanpur. Both the routes
will take him to Delhi. The question is – which route will be economical in
time and money? The passenger will decide the route only after taking into
consideration various factors affecting his journey. Similar is the case with
production routing. It is the selection of the path from where each unit has
to pass before reaching the final stage. The path must have the best and
cheapest sequence of operations.
 Routing Procedure:-
 Deciding what part to be made or purchased: - The
product is thoroughly analyzed to find out which parts are required for it.
The second decision is taken regarding the production or purchase of
various components. Some components may be manufactured by the firm
and others may be procured from the market. During slack periods most of
the components may be manufactured by the firm but when industrial
activity is at its peak then supplies from outside may be contracted.

 Determining Materials Required: - The analysis of the

product will enable us to know the type of materials required for producing
various components. The right type of quality, quantity, and time when
needed should also be decided in advance.
 Determining Manufacturing Operations and
Sequences: - The manufacturing operations and their sequences
can be determined from technical experience and layout of machines.
A sound and economical operation is selected for manufacturing
various components.

 Determining of Lot Sizes: - A decision has to be taken

about the number of units to be produced in one lot. If production is
carried on the basis of orders then size of the lot depends upon the
quantity ordered plus some units for possible rejections during the
process.
 Determining of Scrap Factors: - There may be
some scrap during the course of manufacture. The finished
products are generally less then the units introduced at the
beginning. The scrap during manufacturing should be
anticipated so that routing is facilitated. If products pass
through three processes and a normal scrap is 5% of input at
every stage then it will be easy to anticipate the units entering
various processes and arrange equipments, and manpower
 Analysis of Cost of the Product: - The
determination of cost of products may be the duty of
department but still production department makes records
of direct materials, labour, direct and indirect expenses.
These estimates are greatly useful to costing department
also.

 Preparation of Production Control Forms: -

The carrying out of routing will be facilitated if forms are prepared to
collect information for control purpose. The requirements are: job
cards, inspection cards, move tickets, labour cards, tool tickets, etc.
 SCHEDULING
 Scheduling is the determining of time and date
when each operation is to be commenced and
completed. it includes the scheduling of materials,
machines and all other requisites of production.
 Scheduling means" fitting specific jobs into a
general time table so that order may be
manufactured in accordance with contracted
liability or in mass production, so that each
component may arrive at and enter into assembly in
the order and as is required."
 -ALFORD AND BEATY
 Types of schedules
 Master scheduling: Scheduling starts with the master
schedule. this schedule is prepared by keeping in view the order or
likely sales order in near future. Master scheduling is the break up
of production requirements. This may be prepared for a week, a
fortnight, a month etc. No definite pattern may be suggested for
master schedules because these may differ from industry to industry.
 Operation scheduling: Manufacturing or operation
scheduling is used where production process is continuous. when
same product is produced repeatedly or comparatively small number
of products are required then operation schedules are useful. the
name and number of the product and the quantity to be produced in
a given time are required to prepare a manufacturing schedule.
 Detail operation scheduling: It indicated the time required
to perform each and every detailed operations of a given machine or
process.
 DESPATCHING
 The term dispatching refers to the process of
actually ordering the work to be done. It involves
putting the plan into effect by issuing orders. it is
concerned with starting the process and operation
on the basis of route sheets and schedule charts.
 "Dispatches put production in effect by releasing
and guiding manufacturing order in the sequence
previously determined by route sheets and
schedule.”
 PROCEDURE:
 1.Moving of materials from process to process.
 2.Assigning of work to machines.
 3.Issuing of tools to production departments.
 4.Issuing of job orders.
 5.Recording of time taken.
 6.Ensuring necessary changes.
 7.Having proper liaison with routing
 IMPORTANT DOCUMENTS
1.Material requisitions
2.work order
3.control sheet
4.Internal delivery note
5.Tool and gauge ticket
 FOLLOW UP AND EXPDITING
Follow up or expediting is that branch of
production control procedure which regulates
the progress of materials and part through
the production process".
PROCEDURE:
1.Progress should be checked
2.Causes of differences should be ascertained
3.Helping in removing the deviations
4.Report with departments supplying materials.
 INSPECTION
 Inspection is also an important function of
control. the purpose of inspection is to see
whether the products manufactured are of
requisite quality or not. It is carried on at
various levels of production process so that
pre-determined standards of quality are
achieved. Inspection is undertaken both of
products and inputs.
 Motion and Time Study
 Motion and time study can reduce and control costs, improve working
conditions and environment, and motivate people.

 The basic purpose is to improve the work and to reduce waste.

1. Motion analysis techniques

2. Time study techniques
3. Uses of time standards.

 Manufacturing management and engineering students are being prepared

to design work stations, develop efficient and effective work methods,
establish time standards, balance assembly lines, estimate labor costs,
develop effective tooling, select proper equipment, and layout
manufacturing facilities.

 However, the most important thing is to learn how to train production

workers in these skills and techniques so they can become motion and
time conscious.
 Motion study offers a great potential for savings in any area of
human effort. We can reduce the cost by combining elements of
one task with elements of another.
 Motion study uses the principles of motion economy to develop
work stations that are friendly to the human body and efficient in
their operation.
 Motion study must consider the operator’s safety
 Time study can reduce cost significantly well. Time standards are
goals to strive for. In organizations that operate without time
standards, 60% performance is typical.
 When time standards are set, performance improves to an average
of 85%. This is a 42% increase in performance:

85 % - 60 %
------------------ = 42% performance increase.
60%
 Motion and time study is considered to be the backbone of industrial engineering,
industrial technology, and industrial management programs because the
information that time studies generate affects so many other areas, including the
following:
1. Cost estimating
2. Production and inventory control
3. Plant layout
4. Materials and processes
5. Quality
6. Safety
 Motion study comes first before the setting of time standards. Motion study is a
detailed analysis of the work method in an effort to improve it.
 Motion studies are used to
1. Develop the best work method.
2. Develop motion consciousness on the part of all employees.
3. Develop economical and efficient tools, fixtures, & production aids.
4. Assist in the selection of new machines and equipment.
5. Train new employees in the preferred method.
6. Reduce effort and cost.
Work measurement
 Introduction
 Work measurement is the application of techniques designed
to establish the time for a qualified worker to carry out
specified jobs at a defined level of performance.
 We have seen how total time to manufacture a product is
increased by:
 adding undesirable features to product,
 bad operation of the processes, and
 ineffective time added because of worker and management.

 All this leads to decreased productivity.

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 Work measurement is the application of techniques designed
to establish the time for a qualified worker to carry out
specified jobs at a defined level of performance.
 We have seen how total time to manufacture a product is
increased by:
 adding undesirable features to product,
 bad operation of the processes, and
 ineffective time added because of worker and management.

 All this leads to decreased productivity.

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 Time study

A WM technique for
1. Recording the times and rates of working for the elements
of a specified job carried out under specified conditions,
2. Analyzing the data so as to obtain the time necessary for
carrying out the job at a defined level of performance.

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 Selecting a job for time study
 The job in question is a new one not previously carried out.
 A change in material or method of working has been made and
a new time standard is required.
 A complaint has been received about the time standard for an
operation.
 A particular operation appears to be “bottleneck” holding up the
subsequent operations and possibly previous operations.
 Standard times are required prior to the introduction of an
incentive scheme.

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 Steps in making a time study

 Obtaining and recording all the information about the job,

the operator and the surrounding conditions, which is likely
to affect the carrying out of the work.
 Recording a complete description of the method, breaking
down the operation into “elements.”
 Examining the detailed breakdown to ensure that the most
effective method and motions are being used.
 Measuring and recording the time taken by the operator to
perform each “element” of the operation.

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50
 Steps in making a time study

 At the same time assessing the effective speed of the

working of the operative in relation to the observer’s concept
of the rate corresponding to standard rating.
 Extending the observed times to “basic times.”
 Determining the allowances to be made over and above the
basic time for operation.
 Determining the “standard time” for the operation.

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