UNIT 1 MANAGEMENT FUNCTIONS AND

PROCESSES: AN OVERVIEW
Structure

1.0 Introduction
I. 1 Objectives
1.2 The Systems concept
1.3 Management functions
1.3.1 Creativity .
1.3.2 Planning and controlling
1.3.3 Organising
1.3.4 Leading and motivating
1.4 Management Processes
1.4.1 Policy formulation
1.4.2 Decision-making
1.4.3 Planning process
1.4.4 Creating the structure
1.4.5 Controlling processes
1.5 Let IJs Sum Up
1.6 Check Your Progress: Possible Answers

1.O INTRODUCTION
How does one begin a course on Management of Distance Education? Of
course, from the very beginning of it. For that, one needs to know what
management is about before one begins to think about management of a
distance education system. This Unit therefore tries to take you through the
basics of management, its functions, methods and practices. Remember, this is
not a course for a business management student; all that this unit seeks to
endeavour is to acquaint you with the functions of management and its
processes. This limited objective is sought to be achieved through as simple
and straightforward a presentation as possible.

1.I OBJECTIVES
On completion of this unit, you should be able to
describe the concepts of organisational systems and their components,
identify the major functions that the management of organisations involves,
analyse the processes associated with the performance of major
management functions, and
explain the roles and responsibilities of managers in any organisation.
Educational Systems Management

1.2 THE SYSTEMS CONCEPT

As you go about the business of living, you find that you are surrounded by
organisations of different kinds, big and small, formal and informal, economic
and religious, government and private, educati-&a1 and cultural, social and
political. You belong at the same time to many of these groups, at any rate,
your life and living are largely influenced, even conditicned, by these
organisations and their work.

We know from the beginning of recorded history that even the early groups had
become complex organisations: the religions, the army, the empires, and the
merchants. Today, diverse organisations are interwoven in a complex tapestry.
You and other members of these organisations are bonded more and more
closely together, without perhaps fully realising it. Satellite communication
networks now link people through a meticulously organised system which has
its own protocol, code of conduct and patterns of interaction. All these are
outcomes of organisation, which is, in its simplest form, a structured process in
which people interact with one another for fulfilling specific objectives.

This definition of an organisation may seem very simple, but in a complex

organisation, there are countless interactions at various levels among large
numbers of people. For instance, in a university, there are students, teachers,
deans and heads, administrators and accountants, estate managers and canteen
workers. While all of them are working for the purpose of the universi~y,each
one of them is also working for the fulfilment of a personal purpose. Some of
these purposes are noble and idealistic, some very practical, some supporting
and reinforcing others, while some might be in conflict with others. But
overall, they all contribute to the purpose of the university, and therefore, each
of these purposes, and the way they are sought to be achieved, are all
organically related to the organisation of the university. It is this relationship of
several elements that constitute the structure of an organisation that we call a
system. In other words, a system is defined as the aggregate of several inter-
related components (sub-systems) which have be& put together according to a
specific scheme or plan, and in order to achieve stated objectives.

A system has the following components:

a number of parts or sub-systems which when put together in a specific
manner form the whole system;
boundaries within which each part exists;
a specific goal or goals expressed in terms of performing a task, producing
an output or providing a service, etc; and
close inter-relationship and interdependence among the diffei-entsub-
systems.
 Managemeti! Futicriotrs atrd Processes: An Overview

The interrelationship among the sub-systems can be identified in the following

terms:
theflows which exist between them, such as the flow of information,
materials, money and so on;
. the structure within which they relate to each other;
theprocedures by which the sub-systems relate to one another;
thefeedback and the control process and mechanisms which exist to ensure
that the system is moving towards the desired objectives.

In our example of the university as an organisation, there are several sub-

systems which include:
prescribing the courses, determining the curricula and setting the standards
of achievement for students;
admitting students, collecting fees, maintaining records;
recruiting teachers, training them and administering their conditions of
service;
holding examinations and certifying the performance of students;
construction and maintenance of buildings, classrooms, laboratories,
student hostels, staff houses, etc.;
buying equipment, furniture, books, stationery etc. and seeing to their
maintenance;
administering the organisation and its finances.

You will notice from the above that within the context of a university, each of
the above set of functions, or sub-systems, has no independent existence or
goals. Courses have to be prescribed to enrol students, teachers have to be
appointed to teach the students, examinations have to be held to test their
performance and award degrees, and each of these functions should inform the
other for achieving the university's goals of educating the people. In order €0
ensure that all this happens in an orderly manner, each of these functional areas
has to be structured with its roles, responsibilities and relationships with each
other clearly defined, and the methods and processes of interaction among them
specified through appropriate procedures.

Organisations, at their core, are defined by the people who constitute them.
They are therefore part of the social systems which constantly interact with
their environment. They are also known as open systems which in a larger
context are sub-systems of the environment within which they operate. The
environment itself consists of social, economic, political and legal sub-systems.
In our example of the university, you will notice how the environment
influences the determination of policies, courses, admission procedures and so
on from time to time. The national policies that guide the education system
9
Educational Systems Management

would determine the university policies with regard to admission of students

and appointment of teachers (equal opportunities, special provisions for the
disadvantaged sections, remedial programmes for the weaker students);
induction of new technologies would influence determination of course content
(cammunication technologies, computer applications); and funding regimes
would affect the scales of fees charged for different programmes.

Check Yoyr Progress 1

Identify the following statements as 'true' or 'false'

Note: Compare your answer with the one given at the end of tha'tlnit.'
i) System is defined as thq aggregate of several inter-related q ~ p o n e n t s ,
put together to achieve stated objectives. " ; &&$? .
('
ii) Environment does not influence the c o r n P o n e n t s / s u ~ s ~ r of
n san
organisation. (

1.3 MANAGEMENT FUNCTIONS

Management is about directing the energies and resources of organisations to
purposeful, coordinated and goal-oriented activities. The functions of
managers include creating, planning, organising, motivating, communicating
and controlling. These managerial functions are essentially the same regardless
of the type of the organisation, or the level of the managers in the organisation.
The Vice-Chancellor of a University, the Dean of a Faculty or the Registrar
performs these functions in the same manner as does the President of a
manufacturing company, the Marketing Manager of its products or the
Secretary of the company.

1.3.1 Creativity

Creativity involves the application of a person's mental ability and

imaginativeness to some area leading to the creation or discovery of something
new as a result. The "something new" could just be a theory, a product, a
process, a better reporting system, or an improved version of what is already
existing. The creative process is the manifestation of a fundamental ability -
that of relating previously unrelated things, the ability to look at things with a
fresh eye, and the like. Creativity in any field is stimulated by an inward
motivation to contribute, by challenging current goals and practices, by
reshaping the existing organisational climate and culture, and by the sense of
satisfaction that a person derives from hidher work.
 Management Functions and Processes: An Overview

A typical example of creativity in an organisation is the problem-solving

approach which is widely understood and accepted as a creative process. The
underlying assumption of this approach is that if you are able to define the
problem, the solution will be quick to follow. The elements involved in this
process are collecting the facts; analysing them; identifying the problem;
*
considering alternative solutions; selecting the best; and putting the selected
solution to practice.

1.3.2 Planning and controlling

In the list of management functions, planning comes at the top, and controlling
at the bottom. But the two generally go together because plans can be
effectively achieved only if there are good controls which help you measure the
achievements in what you had planned to do. In other words, good control
systems are essential elements of an effective planning process, and therefore in
the context of the management functions, the two are discussed together.

(a) Planning

From the point of view of an organisation, planning consists of setting its goals
or objectives and determining the ways in which they are going to be achieved.
Planning determines where the organisation is going and what approaches it
will adopt to get there. The purpose of planning is to coordinate the activities
within the organisation to attain the stated objectives. Unplanned activities
often tend to be sporadic, disjointed, disoriented and therefore dysfunctional.
Planning, on the other hand, brings a higher degree of rationality and order into
the organisation's working.

In the absence of planning, managers are often left to react to situations and
problems as they arise. Planning permits a manager to act with initiative and to
create situations to the organisation's advantage. It is not unusual that most
poorly managed organisations are almost totally occupied with managing cpses
one after another, engaged always in fire-fighting rather than directing their
energies and resources to the achievement of the organisation's goals. Planning
helps the management to shape the future of the organisation rather than gqt
caught up in endless operations to get over current crises. This explains a key
feature of planning which is, that planning is concerned with the future. It is
this concern with the future, which is always unknown and uncertain, that
makes planning a risky process; it also explains why several organisations do
not always engage in adequate planning.

That brings us to another key feature of planning - flexibility. Because we do

not know exactly what the future holds, it is likely that the plans will not work
out precisely the way they are expected to. It is for this reason that all good
plans always provide for review and modification. As we have noted earlier,
environmental factors are very critical to organisations' goals and strategies.
11
Educational Systems Management

Discoveries, inventions and new technologies may radically alter life styles and
consumption patterns, often forcing traditional products and services out of the
market. Those involved in their production will have to quickly rethink their '
products and strategies which would mean redefinition of goals and
reorientation of strategies. For instance, with the advent of colour television,
the manufacturers of traditional black and white TV sets had to either switch
over to the manufacture of colour TVs or move to the rural markets to sell their
traditional products where colour TVs were not so much in demand because of
their higher prices. What happens in such situations is that a revised plan is put
into effect before the old one has been completely carried out. In other words,
if and when an existing plan becomes obsolete, or its goal becomes unworthy
of pursuit, a new plan, with a new goal, is put in place. This process of
midway corrections and renewals is what makes planning a dynamic process.
If a plan does not admit of any modification, it is a bad plan. Flexibility
therefore is a significant feature o f any plan.

Check Your Progress 2

What are the key features of planning in any organisation? Answer in about
50 words.

Note: i) space is given below for your answer.

ii) Check your answer with the one given at the end of the unit.
......................................................................................................
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(b) Controlling

We have already noted that there is a close relationship between planning and
controlling. Control supports planning in two ways: first, it helps review
current goals and strategies and while doing so, draws attention to situations
that require new planning exercises; and second, it provides useful and
necessary inputs upon which new plans can be based. Controlling, as we said
earlier, comes at the end of the list of management functions because it is
concerned with : i) comparing events with plans, and (ii) making corrections
when events deviated fi-om plans. Both these concerns reflect an end-of-the-
event appraisal of all that went into the pursuit of attaining a specified goal, and
an assessment of what did indeed happen as against what was expected to
happen. If there are departures, corrections follow. Franklin G.Moore (1 964)

12
 manage men^ Functions and Processes: An Overview

described the controlling function thus: "There's many a slip between giving
work assignments to men and carrying them out. Get reports of what is being
done, compare it with what ought to be done, and do something about it if the
two aren't the same". Controlling is part of the manager'siob in which he/she
checks up on assignments, sees what is being done, compares it with what was
expected to be done, and does what is needed to correct the deviations, if any,

You will recall that we said earlier in this Section that planning and controlling
go together. In fact there is a symbiotic relationship between the two, both
supporting each other. Planning is a prerequisite for effective controlling;
without planning, there is no predetermined, explicit understanding of desired
performance, and without such understanding, controlling becomes ineffective.
Nhen managers try to control organisations which do not have adequate
planning, confusion and chaos result because pronouncements of unsatisfactory
performance, in the absence of desired performance standards agreed upon by
all concerned, would surely lead to resentment and disaffection among the
members of the organisation.

R e main purpose of accounting is to provide data to assist controlling in

business or other economic enterprises. For instance, the budgets of
organisations indicate the levels of desired performance. The accounting staff
record data from the actual operations and at regular intervals ,the summary of
these data is compared with the budgetted levels and corrective action is taken
where needed.

We shall return to the processes involved in the performance of these functions

later in this unit.

I.3.3 Organising
'Organising' is a major management function after planning, and involves :

determining the specific activities that are necessary to accomplish the

organisation's goals;
grouping these activities into a logical pattern, framework or structure;
assigning the activities to specific positions and people.

The planning process will have identified the organisation's goals and
strategies. In simple terms, the goal definition would have clearly indicated
what to do, and the strategies would have spelt out how to do it. In operational
terms these 'what' and 'how' will have to be formulated into specific sets of
activities that can then be assigned to people for implementing them. In our
example.of the University as an organisation, we have identified certain
activities (we called them sub-systems) while discussing the system concept in
the beginning of this Unit. We do not wish to repeat them here except to say
13
Educafional Systems Management

that each one of these sub-systems comprises a set of functions and activities
necessary to achieve the purpose of the University.

(a) Structuring the Organisatiorl

Having identified the activities, it is important to group them into different units
of operations to enkure efficiency. It is here that the structure of an
organisation assumes significance. Some essential features of a structured
organisation are the following :
An organisational chart which depicts the "road map" showing the structure
of authority and accountability relationships, activities and communication
channels. It indicates how the affairs of the organisation are to be planned, i
directed and controlled. .
It helps each member of the organisation understand hisfher role,
responsibilities and relationships as well as the boundaries within which
herlshewill have to operate.
1
I

It endeavours to evolve objective criteria for measurement of results in

terms of goals achieved, and facilitates communication of data and
instruction vertically and horizontally.
It represents a certain orderliness in the conduct of the affairs of an
organisation.

In structuring an organisation, certain basic principles have to be kept in mind.

For example, activities have to be grouped and assigned to appropriate
organisational units. The criteria for grouping should include:

creation of separate organisational units only if the functions proposed to be

assigned to them are logically separable;
every-unit should work towards a common objective or a major functi~n
that can be identified with the organisation;
it should be possible to justify a separate unit in terms of span of control or
reach of management (optimum number of employees ) and accountability
relationships within the unit.

One major purpose of an organisation chart is to indicate the structure of

authority, power, responsibility and accountability in the organisation. While
the chart would only show the flow of these attributes and their connecting
links, effectiveness in organisational functioning requires:
clear definition of the responsibility assigned to every person;
.
delegation of appropriate authority that matches the responsibility;
clarity about the reporting relationships and levels of authority;
consistency about reporting relationships and nature of assigned
responsibilities.
'I4
 Management Functions and Processes: An Overview

(b) Principles in Organising

We have just talked about several new concepts like authority, power,
responsibility, delegation, relationships, etc. It will be in order if we pause for a
moment and reflect on these concepts so that they can be appreciated in the
perspective of the organising function and the organisational structure.

Authority and power are often understood to be the same, but the two can be
clearly differentiated. Authority is the right to do something, while power, on
the other hand, is the ability to do something. From the organisation's point of
view, authority is the right that a manager has to ask or require a subordinate to
do something to accomplish the goals of the organisation. In exercising this
right, helshealso assumes the power to cause the subordinates do what helshe
wishes them to do, since helshe has the ability (understood as power) to reward
or punish them. There can be situations in which a manager has the authority
(right) to do something, but does not have the power (ability) to do it.

In most of our public organisations, we see that the head of the organisation has
the authority to ask people to do assigned jobs, but does not have the power
(ability) to reward the doer or punish the non-performer. This absence of
authority-power relationships often cause instability in organisations leading to
their decay and destruction.

Responsibility is'related to both authority and power. It means the obligation to

do something. In an organisation, responsibility is the duty that one has ,to
perform the function, task or assignment given to h i d e r . In that sense, every
body in an organisation has a responsibility, as without that responsibility there
is no reason for h i d e r to be in the organisation.

Delegation of authority (and power) is the process by which, in an organisation,

the senior management gives the subordinates the authority (and power) to do
certain things. When that happens, the person to whom authority is delegated
can perform all the functions, and exercise all the powers as though they are in
fact vested in hidher. In the absence of such delegation, accomplishment of
organisational goals cannot take place as the top manager has to personally
intervene in the performance of every little task. On the other hand, the
manager cannot also delegate totally all the authority for performing the
managerial functions of planning, organising, controlling, communicating, and
so on. To delegate complete authority in all these areas would mean that the
manager is abdicating hisher responsibility.

We have seen that authority and power can be delegated. But it should be
noted that there is no delegation of responsibility. When a manager delegates
hislher authority and power, helshe remains responsible for any action ( and
inaction) on the part of the persons to whom he/she delegated authority. A
supervisor's responsibility is not in the least diminished when helshe delegates
Educafional Systems Management

authority; on the contrary, it could possibly increase hisher own responsibility

as helshe is assuming the additional responsibiliiy arising from the
performance of hisiher subordinate.

That brings us to another concept, namely, accountability. It is a natural

tendency in most people to minimise the responsibility they accept. They are
also not too willing to be accountable to a higher authority. This unwillingness
is at the root of many organisational frictions and strains. A stable
organisational equilibrium requires that authority, power, responsibility and
accountability should all be balanced evenly.

1.3.4 Leading and motivating

Peter Drucker said: " ~ a n i g e m e n tis doing things right; leadership is doing the
right things". Though leadership and management often overlap, the two we
not.quite the same. Management is about accomplishing a goal efficiently;
leadership is about setting the desirable goals.

Leadership is a management style. It is the ability to inspire.people to do what

the leader wants them to do. It is inspirational and personal. It inspires
cooperation and action based on loyalty and often unquestioning obedience. A
good manager does not have to be an inspirational type. But helshe ought to
have some leadership qualities and a positive personality that wants to get
things done. Helshe should conduct himselfherself with purpose and
confidence and be result-oriented. Hislher job is to guide, direct, influence and
even demand action. A good manager is a problem solver, who is driven by the
goals set for himlher. Helshe is not just the presiding deity of a group, but is
leading a group somewhere, taking them along to attain a purpose, even as
helshe is thinking of a new goal. a new purpose, for tomorrow.

A manager need not be a charismatic person to inspire people to perform and

attain higher levels of achievement. Helshe will nevertheless have to 'get
things done through people' and see that they work efficientlj and produce
results that are beneficial to the organisation. 'Motivation' is all about this task
of getting people to do the organisational tasks efficiently and effectively.

There is a whole body of literature on behavioural theories and patterns. This is

not the place to make a comprehensive survey of these theories and principles.
For the purpose of this unit, however, we mention a few examples of how
managers motivate people.

First, there is the "carrot or stick" approach. The "carrot approach" suggests
positive motivation, also called "anxiety-reducing motivation". It offers a
person something helshe considers valuable (praise, pay rise, promotion) for
good performance. Negative motivation, called the "stick approach" uses or
threatens to use punishments (reprimands, removal, reduction in rank) for
I Management Functions and Processes: An Overview

unsatisfactory performance. This approach is also known as the reward and

punishment theory which influences behavioural patterns.

As we said earlier, an organisation is its people. No group of people can be

expected to be homogeneous in their attitudes, behaviour and outlook. For
instance, self-disciplined people do not require externally imposed discipline
for doing what is expected of them. But this tribe is a diminishing lot. The

I
L

1
central problem of motivation for the management is how to induce a group of
people, each with a distinct personality, outlook and attitude, to work together
to achieve the organisation's objectives. The organisation's objective may not
coincide with the personal objective of each member, yet each one of them has
to be convinced that attainmentof hisher objective (assured income, high
standards of living, esteem in society) will contribute to the objective of the
organisation as well. To play this motivational role, the manager has to have a
r deep understanding of the processes involved in relating individual needs to the
1 organisational objectives.

Maslow's theory of human motivation (1960) makes two important

propositions about human behaviour : (i) Man is a wanting being - he always
wants, and he wants more; and (ii) A satisfied need is not a motivator of
behaviour. ~ c c o r d i n gto Maslow, what man wants depends upon what he
already has; when one need is satisfied, another appears in its place and this
process is unending. It is only the unsatisfied need that motivates behaviour. It
is a significant lesson for managers who set about the task of motivating
people.

A vibrant, dynamic management style would seek to carry all the members of
the organisation together in achieving the organisation's objectives. The more
conventional reward and punishment, or stimulus and response, theories are
now giving way to newer styles of organisational management. Participaiory
management, team-building, decentralised structures, project work,
autonomous units are all examples of evolving management styles.

Check Your Progress 3

Identify the following statements as 'true' or 'false'.

Note : Check your answer with the one given at the end of the unit.
i) Leadership is about setting the desirable goals. (
ii) A good manager is not a problem solver. (
iii) Personal objective of each member of the organisation may not
coincide with the organisational ones. ( )
iv) Participatory management team-building, project groups, etc. are new
styles of management.
( .)
Educational Systems Management

1.4 MANAGEMENT PROCESSES

Having acquainted ourselves with the major functions involved in the
management of organisations, it is now time for us to turn to the processes
associated with the performance of some of these major functions. You will
have noticed that while explaining most of the functions, some idea has also
been given about how they are performed. We do not therefore propose in this
section to take up each of the functions and discuss in detail all the processes
and activities involved in its performance. As the purpose of this unit is
generally to acquaint you with the functions, methods and practices associated
with the management of organisations (in order to make you familiar with the
broader conferns of a distance education organisation), we shall confine
ourselves to certain major processes only.

1.4.1 Policy formulation

We have noted earlier that all organisations have well-defined goals and
objectives. You might well ask what is the need for a policy when objectives
are already defined. It is difficult to say where objectives end and policies
begin. There is a degree of overlap between the two. Even so, it would be
correct to assume that an objective is what you want to accomplish, or where
you want to go, while a policy outlines the method or practice which you will
use to get there. A policy, thus, is an enduring decision which holds good on a
continuing basis to guide the members of the organisation in doing what they
are called upon to do. What distinguishes policies from objectives is that you
first decide the objective, and then set out the method for achieving it.
Objectives are the ends; policies are the means to achieve those ends.

Policies can be long-term, medium-term or short-term. There can also be major

policies and minor policies. Policies at the level of the head of the organisation
would be stated in broad terms, their purpose is to pilot the overall working and
operations towards attaining the organisational objectives. At the second, or
executive level, policies might enter into specifics, though still broad, dealing
with activities in different departments. At the operating level, policies would
go into further details, sometimes even in the form of policy and procedure
manuals or rules and regulations.

While the broad policies generally originate from the top, most of the policies
especially at the middle and lower levels, get articulated from the experience of
dealing with day-to-day problems. When a problem first arises, you decide
how to handle it, when it comes up again and again, you establish the way of
handling it as a policy so that in the future, people at lower levels do not have
to grapple with the problem all over again; When a new problem arises, you
treat it as an exception and decide it on its merits. If the same problem comes
up repeatedly, you set a policy for it. Over a period of time, you are sure to end
 Man~gernenfFunctions and Processes: An Overview

up with a set of policies to handle every conceivable situation. That is also the
way organisations become bureaucratic structures.

What are major policies? They are the ones that govern the conduct of the core
business of the organisation. For example, a major policy statement would set
out the range of products and services that an organisation would be offering
over a reasonably long period of time. It could also set out the territorial limits
within which it would operate; the methods of distribution of its products;
centralization or decentralization of production processes; in-house production
of all associated products and services or sub-contracting them; research and
development for new products; and the list could run much longer. Suffice it to
say that these major policy statements are just as important as the objectives of
the organisation which may be the manufacture of automobiles or running a
grocery chain or providing education and training.

At another level, there could be several policies that govern the execution of
major policies. For instance, the personnel policies (recruitment, rewards,
punishments), the pricing policy, the distribution and marketing policies,
maintenance of plant and machinery and so on are just as important in the
performance of the functions of an organisation. Still lower down, there could
be minor policies on a range of issues reaching down to such trivia as who can
use the organisation's car, who gets favoured parking locations, who can travel
by air and who should travel only by road, and who should be entitled to
comfortable furniture and decent curtains.

The important point in formulating a policy is that it should have a reasonable

degree of stability while it should not become too rigid. A good policy should
be forward looking, it should be lawful and ethical and it should permit changes
as the environment changes.

The stereotyped view of a good executive is of a person who is decisive, takes

quick decisions, and almost always takes good decisions. It is not however
true that, in practice, executives are always called upon to take instant decisions
and that all their decisions reflect good judgement. A good decision is always
based on adequate information, necessary application of mind and balanced
judgement. It follows that there should be careful fact-finding, analysis,
consultation and reflection on all aspects before taking a good decision.

Taking decisions is a process, a process in which one chooses a course which

one thinks is the best. In the football field, kicking the ball with the left foot or
right foot is a reflex action, it is not a decision in which any process is involved.
However, the decision to change the design of a product, say a passenger car,
should precede a good deal of research involving market surveys, studies on
passenger comfort, fuel and machine efficiency, driving comfort, cost structure
and so on. Such decisions cannot be part of a making-up-your mind 19
Educational Systems Management

situation, but should be the culmination of a process which blends thinking,

deciding and acting. Usually, a good decision-making process should involve
the following:

It should be based on expert advice. Most situations will have a

professional or technical dimension to them. And, in most major
organisations, there would be professionals and technical whose
job it is to assemble facts, analyse them and to recommend possible sets of
alternatives.
Decision-making should be participative. This process not only brings
collective wisdom to dealing with issues, but also helps in people accepting
decisions which they helped to make. Further, a sense of participation in
decision-making contributes to the growth of a healthy environment in the
organisation.
Participative process could have a negative dimension too. ~ oevery t one
would want to be serving on all kinds of committees, not the least in
making suggestions and nearly always finding them overruled.
Most decisions are likely to be in the nature of solving problems. The
problem-solving approach implies first defining the problem, then exploring
a set of solutions and choosing the best among them. It has to be
remembered that in nearly all situations, you have several courses of action
open to you, which would also include the choice of inaction.
Every choice follows an assumption that it will work best. This assumption
is based on the awareness of the premises that are implicit in the reasoning
behind the decision, and that considerable thought has been given to those
reasons.
When a decision is taken, responsibilities should be assigned to persons to
carry it through. Decide also on the stages of implementation, and who
should do what. Carrying a decision through involves planning, delegating,
communicating and controlling.

Check Your Progress 4

What is the main difference between policies and objectives? Explain with an-
example. Answer in about 50 words.
,
Note: i) Space is given below for your answer.
ii) Check your answer with the one given at the end of the Unit.
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 Managetnenl Funclions and Processes: An Overview

1.4.3 Planning process

Planning deals with the future, and is therefore filled with uncertainty and
possible changes. It is this uncertainty that often gives an edge to the
management that can forecast well and plan its future. If you do not plan, you
will probably be "muddling through", and still get somewhere, though not
exactly where you intended to reach. If you wish to reach where you want to,
you have no choice; you have to plan.

To put it differently, 'where you want to reach' is really your objective. That is
to say that a plan must of necessity start with an objective. And, that objective
is the business of your organisation. Since we have already discussed the
nature and significance of the planning function, we shall not go over them
again here, but shall proceed to looking at the processes associated with the
performance of this function.

(a) Forecasting

Given the objectives of the organisation, a planner must take a view of the
future and decide in advance where the organisation would like to be and what
should be done to get there. This would mean two things: first, forecasting the
future, and second, planning the strategies.

Forecasting is the first step in planning, and reliable plans are based on accurate
forecasts. Accurate forecasting 1s nothing more than projecting today's trends
into the immediate and foreseeable future. For example, in an economy that is
on the road to development, the more recent trends in the rate of growth, the
pattern of distribution of income, the consumption pattern, and.areas of
continuing shortages, etc. would suggest what goods and services are likely to
be in greater demand in the near future, say, the next five years. It is possible
to predict reliably the number of the school-going children five years from now
depending upon the increase in the rate of enrolment in the last five years. If
the number can be forecast, you can proceed to forecast the number of new
schools to be opened, new teachers to be appointed, new teacher-training
facilities to be created and so on. Similarly, in the case of consumer goods, one
can make reasonably accurate forecasts about the growth in consumption, based
on current trends in income distribution, of several goods ranging from
toothpaste to television sets and cosmetics to computers.

While this sounds very easy and practicable, what about economies which are
already develqped? Well, there are established trends there also. May be, one
has to look at the changing life styles and their influence on consumption
patterns. The forecasts in such situations would be about the kind of comforts
that people are looking for, or the tastes and styles that are likely to emerge. In
such cases, the forecasts would be about improvements in products in terms of
design to suit different tastes and styles.
r 21
Educational Systems Management

Forecasts could be reliable, but they can also fail. Many economies may not be
able to sustain current levels of growth over long periods. Economic
depression and political turmoil can affect markets. New technologies may
force conventional goods and services out of even traditionally large markets.
Population policies may influence the demographic profile of the population
sometimes forcing even existing schools to close. There are uncertainties about
the future. Even so, most of these could be anticipated and allowance for such
uncertain risks could be built into the initial forecast itself.

(b) Strategic Planning

The second major process in planning is the formulation of strategies in

reaching the goals. This process, called strategic planning, should include:
information analysis, or reviewing the performance of the organisation and
the environment to relate internal strengths to external opportunities;
making the strategic choice, or determining the directions based on this
analysis that should inform the goal and time-setting exercise for the future;
within the major objectives, setting specific goals, with time targets, that
should provide a sense of direction to all managerial activities. .
An objective analysis of the current performance is an essential pre-requisite to
effective strategic planning of the hture. You need to know the capacities and
capabilities of your organisation. You need to know whether your people will
be able to deliver according to your plans. You need also to know your
resources, and how much more you can commit to new initiatives. If nearly all
the resources at your disposal are already committed, your choices on new
initiatives are limited, and so is your planning freedom.

The information analysis should take you through the collection and
interpretation of all the basic data about your organisation for an objective
assessment of the current strategy and identification of the key problems
concerning that strategy. This analysis should also include an appraisal of the
enviroilment in which the organisation operates, the likely changes in the
environment (emergence of new competitors, new customers, induction of new
technologies and other relevant aspects) and the new opportunities that it might
offer. A change in strategy, or a new strategic choice might be needed because:
the aspirations and requirements of the stakeholders in the organisation
have changed;
the environment has changed; and
the current strategy is failing to meet its objective due to poor performance.

The changes in environment which might call for a close look at the current
strategy would include:
 Management Functions and Processes: An Overview

increase or decrease in market opportunities;

opportunities or threats that induction of new technologies might offer;
overall performance of the economy (growth, stagnation or decline) leading
to distortions in the distribution pattern of income; and
changes in the social and legal systems.

Forecasting the future and determining the strategies are the two major
processes involved in planning. However, these do not complete the total
planning exercise. There are a number of other steps involved in planning.

(c) Operational Planning

Operational planning is a major step in this process. Once the broad picture of
the goals and the strategies is clear, the management proceeds to develop the
operational planning. This exercise is more specific and concerned more with
the operations of different functional areas like production, marketing, finance,
research, development, etc. The operational plans guide the managers of
departments and units within the organisation and their focus is more on the
present than the future. These plans address mainly the current problems in
operational areas, take into account the existing constraints of resources, the
existing levels of efficiency, information management, organisational culture
and so on. Because these plans deal with the present, changes or improvements
in them tend to be marginal or incremental, but consistent with the overall
strategies proposed in the strategic plans.

In short, the planning process comprises the following steps:

Perception of opportunities through needs assessment, demand forecasts,
changes in environment etc.
Establishment of goals involving the determination of the organisational
goals as well as the goals for each unit of the organisation. These should be
measurable since performance will later have to be assessed against these
standards which could be expressed in terms of costs, budgets, etc.
Appraisal of planning premises that influence performance. These premises
would largely be factors in the environment. For example, changes in
government's policies can favourably or unfavourably influence the current
plans of an organisation. Since all plans are based on a series of
assumptions about conditions that constitute the environment, it is
necessary to constantly watch the changes in the environment and review,
modify or renew the plans from t i ~ l to
i ~time. All plans must have this
flexibility built into them.
Deterinining action paths is the final step in the planning process. Once
goals have been established and strategies settled, the actual action plans in
the form of programmes and budgets are formulated. These will indicate
the allocation of responsibility for action among various units, the time- 23
 Educational Systems Management

frame for completion of different stages of accomplishment of the goals, the

interdependence among various units in completion of tasks as well as the
allocation of resources (money and personnel).
There is yet another process which goes along with that of planning. As we
said earlier, this is the process of controlling. After all, those who plan would
be interested in knowing the outcome of their efforts, whether it was successful
or not. This evaluation of the performance is a major function of management,
and we shall discuss the processes associated with it in some detail separately
in this unit.

1.4.4 Cre,atingthe structure

We discussed earlier in this unit, the major activities associated with the broad
function of organising. Designing an organisation is not just drawing a chart
and filling the boxes. A great deal of thought and imagination has to go into
that design. The objectives of the organisation would of course determine its
functions, but those functions will have several activities as their components.
Organising these components into viable and coherent groups is a major part of
the initial design of the organisation's structure.

But the design does not make the organisation. The organisation takes shape
only when its people are in place, at least the core groups that constitute the
nuclei of the organisation. How the initial groups are constituted will depend
upon several factors, including how the organisation was born. For instance, if
the new organisation is set up by an existing authority, say the Government or
a major company, it will have also settled its nucleus. We shall look at the
processes associated with the design and structure of an organisation.

(a) Recruitment and Training

The first step of course is to put the people in place. This involves recruitment,
training and promotion. Managers are not born, they are made. All
organisations, whether they are in the business of making cars or cheese, or of
exports and imports or education and training, also make managers. They
develop new managers, as old ones move up or out. This process of choosing
people and preparing them for shouldering tomorrow's responsibilities is a
major responsibility. We are confining our discussion here only to the
development of managerial personnel and are not considering the recruitment
and training of general staff.

Development of managerial capacity in the organisational context involves

selecting the right people, training and placing them, motivating them and also
retaining them. Bright young people can be selected, on the basis of their
qualifications and educational attainments and assessment of their aptitudes,
and potential through appropriate tests and interviews. This part of finding
people fresh from college is not very difficult. But the more difficult part of the
process would be the clear definition of the requirements of each job and each
 Manugement Futzctions and Processes: An Overview

position and fitting the people with each of them. This first step is very
important because a great deal of the organisational culture is evolved by the
aggregate of the attitudes of the young people inducted into the organisation.

Training is an important element in the management development process. In

recent times, training has turned into a huge industry, preparing people for
various professions and occupations. Post-employment training however will
mostly be on-the-job. It is through this training that future managers will get
varied experience, in different jobs and at different levels. Whenever new
openings come up, younger people should be encouraged to take up those
assignments, even if temporarily, only for the experience it will give them.
Today, it is very common for executives at different levels to be sent to
participate in formal training programmes including summer programmes
organised by universities and other educational institutions. Job rotation,
special assignments, assistantships, committee work, self-development and
external training programmes are all integral to the organisation's efforts in
developing its managerial competence.

(b) Performance Appraisal

Performance appraisal of managers and their advancement in organisations are

just as important as the initial recruitment and training. After all, considerable
efforts and resources go into the development of personnel for managing
organisations. It is important to ensure that this talent pool is available to the
organisation for its own growth and development. There are several factors
that motivate people. Money, security and power are as important as
recognition, status and pride. A shared sense of acceptance, loyalty and
commitment is what it takes to make a person feel that he/she belongs to the
organisation, and ~ i c e ~ v e r s aAnd
. yet, human nature being what it is, driven by
determination to attain greater heights and desire, often ambition, to make
quicker progress in financial terms as well as control of the organisation, people
perform differently and with different objectives. Regular performance
appr~isalscan be a helpful tool in this context. They could help the
management judge how well a person is doing on hislher current job, and more
importantly, assist in assessing how well helshe would do in the future both on
the current job as well in a higher position.

(c) Delegation
Delegation of authority and power, as we noted earlier, is an important
management practice. As the job grows beyond the personal capacity of a
single manager, he/she begins getting the work done through other people.
These other people become, in a sense, extensions of the original manager who
assigns work to them and gives them authority to do it. This is the process
'known as delegation. Simply put, delegation is just telling a person what you
want h i d h e r to do, and then letting himher do it. In reality, however, it
would't work in that simple way. You cannot just ask another to do something
on your behalf and then sit back and relax in the hope that helshe would 25
Educational Systents Management

produce the results. That would be taking a great risk because, in the end, it is
your responsibility to deliver. So, you have to guide the other person,
sometimes driving, sometimes coaxing, and sometimes even coercing. Telling
a person what to do is only part of the delegation process. Letting himher do it
is another part. This comprises giving the means to carry out the responsibility
which would include tools, machines, materials, personnel and not the least,
the power and authority to use all of these. The two processes should go
together to make delegation workable. In more complex organisations, power
and authority are delegated formally through detailed rules and procedures
which form part of the organisations' structures and processes.

(d) Decentralization

Decentralisation is a major process in decision-making in most organisations.

Truly speaking, centralisation and decentralisation are not areas in black and
white, it is often difficult to distinguish where one process ends and the other
begins. In reality, there is no totally 'centralised' or totally 'decentralised'
organisation because you never can make all the decisions at either the top or
the bottom. These processes therefore reflect in relative terms, how decisions
are taken, who takes them, and how the organisation owns upto these decisions.
To the extent an organisation permits more decisions at the lower levels, it can
be called a decentralised structure while the opposite reflects a centralised
structure. Which of these two structures an organisation should adopt would
depend upon its own functions, operations, their spread and the relationships
between them. Neither of them can be said to be all good and no bad; at best it
can only be some good and some bad. Centralisation overburdens executives,
delays decisions, and can lead to poor decisions as they are far removed from
the realities on the ground; decentralisation, on the other hand, while correcting
some of these shortcomings, can land you in the midst of loss of control, poor
decision by incompetent subordinates, inconsistency and drift in meeting
organisational goals and, not the least, loss of time and resources.

Check Your Progress 5

Note: i) Space is given below for your answer.

ii) Check your answer with the one given at the end of the Unit.

(a) Fill up the blanks in the following sentences.

Forecasting is the first step in ........................ , and reliable plans are based
on ................................ ............................... . Accurate forecasting is
nothing more than ............................... today's trends into the immediate
........................... that can be ........................
 Marragement Functioris and Processes: An Overview

(b) What are the major steps in the planning process ?

(c) What are the factors that determine the design and structure of an
organisation?

1.4.5 Controlling processes

You must have heard about Murphy's Law: "if anything can go wrong, it will".
Control helps you to prove Murphy wrong. But what does one actually do to
control? First of all, you plan; then you control. What you do to control is no
more than guiding things to go in the direction that you want, to reach your
goals. To put it differently, control helps you to deal with the area of difference
between good and bad performance. Good controls have a regulating effect;
they help to measure the progress towards your goal and assist you in assessing
performance vis-a-vis plans. But control is not just an instrument to watch the
progress as things happen; it is in fact a tool that helps you to intervene when
performance falls behind expectations so that remedial action can be taken.

The most common purpose of a control mechanism is to assure the

management that performance does not slide back. It has to be remembered
that control does not substitute for performance; it can only help you arrest the
fall in levels of performance when it occurs. Henry Fay01 (1949) said, "in an
undertaking, control consists in verifying whether everything occurs in
conformity with the plans adopted, the instructions issued, and the principles
established.. Its object is to point out weaknesses and errors in order to rectify
them and prevent recurrence. It operates on everything - - things. pcoplc,
actions". The responsibility for control is not confined to the top lnanagcment
only; everyone at every level who has a responsibility to perform, and to
deliver, would find controls useful and necessary. What follows are
presentations on the areas, instruments, and methods of control; and on
management information system.
Educational Systems Management

(a) The Basics

Before we proceed to Iod at the instruments of control, it would be worthwhile

to take a look at some of those areas that need control. If we know what we
need to control, it is easier to understand how to control them.
The first, of course, is performance in terms of progress towards the goal.
If the goal is time-specific, performance is reflected in the actual
achievement of the target. If, on the other hand, the goal is far too distant
like eradication of illiteracy, for example, progress would reflect stages of
accomplishment of the ultimate goal.

A second object of control is the quality of the output. All organised efforts
have an outcome. If the outcome is not worth the effort, it is a waste.
Control helps monitor the quality of the output.

Activity coordination is another area that requires control. In any

enterprise, there are several operations which require execution either in a
sequence or in parallel to one another. If these activities are not completed
as per the schedule of operations there could be idle capacity in one area,
and non-performance somewhere else.

Quality of work is an aspect that has a good deal to do with controls.

Constant monitoring of the way the work is done in the organisation can
establish the adequacy or otherwise of the skills and competence of the staff
engaged in the work as well as the tools and techniques used in doing their
work.

All activities involve utilisation of some resources, time, money, material

and personnel. It is necessary for the management to make sure that these
resources are optimally utilised, there is no wasteful expenditurt and that
-
the outputs are commensurate with the resource inputs.
(b) The Instruments

Having identified some of the key factors that require the management's
attention from the point of view of control, it is now time that we look at the
major tools that are basic to the controlling process.

To begin with, you need to know what a good performance is, and how it can
be measured. The first task therefore is the establishment of standards, or
criteria of performance. There is no magic formula by which these standards
can be set; they are functions of several variables, some of which would be
quantitative and some qualitative. If an organisational goal is eradication of
illiteracy, for example, the performance criteria can only be an approximation
of the achievement as you can never really set out a precise target, and still less
 Management Functions and Processes; An Overview

achieve it. On the other hand, lf your goal is to capture at least 50% of the
market for a particular product within a time-frame, it is possible to assess the
performance level at the end of the period by establishing the volume of your
sales relative to the totai market for that product. In establishing performance
standards, the following measures could be useful:
Productivity
Marrket share
production costs
return on investment
social benefits
The second important concern would be the actual measurement of the
performance. As we said earlier, this is a comparison between what you set out
to do, and what you actually did. Ideally, this measurement should be done on
a forward-looking basis to predict probable variations between goals and
attainments rather than as a post mortem exercise or a fault-finding effort. The
purpose of control is to apply corrections, and not just to apportion blames.

Management control is usually perceived as a feedback system. This can be

clearly seen by looking at the processes involved in a control system shown
below in Figure I :

1.
Identification Comparision o f Measurement Actual
of + actuals against t---of actual
deviations standards performance

t -,
Ana ysis
causes o f
Programme o f
corrective ,
Implementation Desired
of corrections _+ performance -
deviations action

Figure I: Feedback System in Control Process

Source: Koontz Harold (1981), "Management", Auckland, McGraw-Hill

The feedback system however assumes a time interval in the control process. It
takes time to collect the feedback, analyse it and compare the findings with the
desired performance standards. Good management needs fuhlrc directed
control which requires 01 !aining information as feedback before the event
takesplace rather than after the event. With technological advances, it is now
possible to obtain this feedback in real-time without any time lag, concurrently
with the event taking place, or through such proactive methods as field testing
or sample testing of a product. The following diagram (Fig. 2) explains how
such a control system will work.
Educational Systems Management

Desired values of Outputs

(Staqdards)

...................................._ _
...........
._.. ................... ...... .............
.....................
Feedforward
M Information --..-Corrective action
Figure 2: Comparison of Simple Feedback and Feedforward Systems
Source : Koontz Harold (198 1). "Management", Auckland, McGraw-Hill., p. 730

(d) The Methods

We should now look at some of the methods of control. The foremost of these
is control by reports. Since the top manager cannot be everywhere, and see
everything for himselflherself, helshe has necessarily to rely on a feedback of
information in the form of reports, most of which are written statements. These
reports form the backbone of control. Although reports can never be perfect in
assessing performance, if a good deal of care and attention is given to
designing the form of the reports, they can communicate a great deal about
what is going on. Some considerations that should go into the designing of
reports are:

.Reports should be relevant to the structure of the organisation, and the

responsibility assigned to each unit of the structure. They should reflect
events, acts, information and circumstances that influenced operations in
each area.
The design of the reports should be such as would help you establish the
points of control. These control points are those where a stocktaking of the
performance of an assigned responsibility is possible (Purchase
Department, Sales Department, Accounting Department, etc.).
Good reports should communicate precisely and accurately. They are not
intended to confuse and conceal.
9 The purpose of the reports is to establish the accounting of responsibility.
This means that the reports will reflect the relationship of costs and benefits
(or losses) with the exercise of responsibility by each manager or
department.
Activity costing and cost control are effective tools in monitoring the
efficiency of performance. Regular cost reports on activities of each
division can help identify areas where economy in expenditure can be
effected by reducing overheads and optimally utilising the resources.
Budgets are instruments that support thk controlling system and its
processes. They set out the money available and the money that can be
used. Most departments may not be income generating; for them the
budgets mean cost plans and cost limits. Usually, those who spend less and
 Manugement Functions and Processes: A n Overview

get the results are perceived to be better managers than those who
overspend even if their results are also as good.
Auditing is a part of control, but it is different from the processes we are
discussing as it is done by someone outside the organisation. It is not
,
normally a part of the internal management process though auditing heips
verify the accuracy of reports, their conformity with records, adherence to
procedures and observance of rules and regulations in the exercise of
i authority and power.
Performance appraisal of personnel can also be an effective method of
exercising control. These appraisal reports help identify those who are
better performers and if the organisation has a system of rewards and
incentives in place, they would be the beneficiaries. Normally, it is to be
expected that no one wants to be a poor performer.

Before we close this discussion, it is necessary to point out that controls can
also have negative consequences. Responsible people react strongly against
controls; they feel that they are not being trusted. Submission of reports for
them is an exercise of proving their commitment. This resentment can
sometimes be counterproductive for good performance. On the other hand, it is
a human tendency to explain away all failures; there can never be any shortage
of excuses for non-performance. Between these two extremes there can be a
host of situations like exaggerated presentation of achievements, concealment
of failures, overestimating budget needs and overspending to justify higher
budget allocations.

d) Management Information System (MIS)

So far, we have talked about instruments of control mostly in the context of

monitoring performance and efficiency. Organisational effectiveness, however,
demands that all management decisions are taken on the basis of adequate
information which is timely, relevant, accurate and reliable. Much of this
information would be available from the organisation's own experience in the
form of its past performance reports which we talked about earlier in the
section, but a great deal would still be needed to make major decisions which
might affect the organisation's goals, its methods and processes, and indeed its
structure itself. The sources for this information may vary; in many cases, it has
to be obtained through market surveys or research. Whatever the source, the
important point is that organisations need to put in place systems for gathering
information from internal and external sources, collating and analysing them
and presenting them in summary fonn to the management to help it take
decisions. For example, at the top level of management, such summary will
show the average earning of the organisation per employee, or the earning per
share of its capital, and so on. At the executive levels, the MIS would help
divisional managers to assess the stages of each process at a given time,
compare the progress of input-output flows within the system with the
schedules of operations, locate bottlenecks, if any, and take corrective action
31
Educational Systenls Managemen1

in time. Information management has now developed into an essential tool for
all organisations.

1.5 LET US SUM UP

In this unit, we have tried to take you through the basics of management as a
profession and its concepts and practices. We began with a study of the
anatomy of an organisation, what its component systems are, how each of these
sub-systems supports and strengthens each other, and how all of them together
make for the 'life' of the organisation, which is to attain a specific goal. We
then moved on to take a close look at the staple diet on which organisations
live, and what their 'bread and butter' tasks are. With this understanding of the
core functions of management, we proceeded to explore the methods and
practices that managements of organisations follow in the performance of their
functions. In this unit, we have not entered specifically the area of education
management; our effort was to provide a broad perspective of the issues and
concerns involved in the management of any organisation. It is our assumption
that this broad-brush treatment of the subject 'management' would have
equipped you with adequate knowledge and understanding that would enable
you to grapple with the more specific functions and processes associated with
the management of a distance education system.

1.6 CHECK YOUR PROGRESS : POSSIBLE

ANSWERS
1.

i) true, ii) false

2. The key features of planning are: i) setting goals and the strategies to
achieve those goals; ii) flexibility - good plans should have flexibility that
permits review and modification in course of plan implementation, to
accommodate the unforeseen environmental factors which influence the
goallstrategy; (tli) an effective plan always goes with controls. ,

3.

i) true, ii) false, iii) true, iv) true

4. The objective of an organisation indicates what it wants to accomplish,

while policy outlines the method or practice to accomplish the objective
set. While objective is the end-of-the-road target, policy is an enduring
decision which holds good on a continuing basis to guide the members
of the organisation in doing what they are called upon to do.
 Management Functions and Processes: An Overview

5.

(a) Planning; accurate forecasts; projecting; future; foreseen

(b) The major steps in the planning process are: perception of

opportunities, establishment of goals, appraisal of planning
p r e m i s ~and
, determining action paths.

(c) The objectives of an organisation determine its functions ad:,

activities. These functions and activities have to be grouped into
coherent sets, each set constituting a distinct area of activity.
Putting these sets together with effective flow of work and
information is at the core of an organisation's structure.