Federal TVET Institute

Department of TVET Leadership &

Management

Course: TVET Management

Code: VPD 204
 MANAGEMENT FUNCTIONS
 PLANNING
Planning is the management of the organization's
future in an uncertain environment.

It is the process of setting objectives and determining

the steps needed to attain them.

Planning is important for several reasons:

 It provides direction for an organization by specifying objectives
 It reduces risk and uncertainty of the future
 It allows organizational members to concentrate on common
organization's objective
 It provides criteria for decision making
 It provides basis for control or it facilitates control
 Types of Plans

 Plan can be classified in to different types based on

various criteria (basis): repetitiveness, time
dimension and scope or breadth dimension.

A. Classification of plans based on repetitiveness

I. Single use plans

 Program
 Project-
 Budget
 Cont…
II. Standing Plans
Standing plans are type of plans which can be used
again and again once they made.
 They remain useful for long period in dealing with repetitive
situations.
They include: policies, procedure, and rules.
 Policy- is a general statement designed to guide employees'
actions in recurring situations.
 It establishes broad limits, provides direction, but permits some
initiative and discretion on the part of the supervisor. Thus,
policies are guidelines.
 Policies are guidelines to decision making.
 Policies establish abroad framework with in which managers
at different levels make decisions.
 are general guide to thinking and action
 Cont…

Policies are important for an organization as they:

 provide guidance to decision making
 Channels all decisions toward the attainment of objectives.
 Ensure consistency and uniformity in decision making.
Procedures are sequences of steps or activities involved
in making decisions or performing other tasks.
 A procedure is a sequence of steps or operations describing how to
carry out an activity and usually involves a group.
 It is more specific than a policy and establishes a customary way of
handling a recurring activity.
Rules; are on-going specific plans influencing human
behavior or conducts at work place.
 A rule is an established guide for conduct. Rules include definite things
to do and not to do.
B. Classification of plans based on time dimension

I. Long range plans

 Long range plans are those plans which have longer time
horizon; they are concerned with distant future than immediate
future.
 The time may range from 5 to 10 years based on the size and the
type of organizations.
II. Intermediate plans
 Intermediate range plans are those plans with a time horizon between
one and five years.
 They range between long and short-term plans.

III. Short range plans

Short range plans are those plans with time dimension it
is not possible to have aright time horizon guide line.
 C. Classification of plans based on scope
(Breadth)
 Strategic plans
 It is the process of developing and analyzing the organization's
mission, overall goals, general strategies, and allocating resources
 Produces fundamental decisions and actions that shape and guide
what an organization is, what it does, and why it does it.
 Top level managers engage chiefly in strategic planning or long
range planning.
 They answer such questions as:
 What is the purpose of this organization?
 What does this organization have to do in the future to remain competitive?
 Top level managers clarify the mission of the organization and set its
goals.
 The output needed by top management for long range planning is
summary reports about finances, operations, and the external
environment.
 Cont….
Tactical plans
 Tactical planning is the process of developing action plans
through which strategies are executed.
 It is the process of making detailed decisions about
what to do, who will do it, and how to do it.
 Top level managers set very general, long-term goals that require
more than one year to achieve.
 Examples of long-term goals include long-term growth,
improved customer service, and increased profitability.
 Generally, Tactical plans:
 Performed by middle level managers
 Have shorter time frame, more detail and narrower scope than strategic
plans
 Guide submits of an organization

 Cont…
 Operational plans:
Operational planning is the process of setting
short-run objectives and determining in advance how
they will be accomplished.

 To sum up, Operational plans:

 Are first line managers' tools for exciting daily, weekly, and
monthly activities.
 Performed by operational level managers.

 Are Specific and more detail than others.

 Steps of planning

Step-1 Establishing objectives

Step 2. Environmental Analysis and
forecasting.
Step 3. Determining alternative course of
Action
Step 4. Evaluating the alternatives
Step 5. Select the best alternatives
Step 6. Implementing the plan
Step 7. Controlling and evaluating the results
 Factors affecting planning

 Environmental condition
 Time
 Resource availability
 Skill and attitude of manager
 Collection and analyzing of data
 Tents

Vision,
Mission,
Values,,
Goals,
 Objectives, and
 Strategy
Organizing

Organizing is the process of identifying and grouping

tasks to be performed, assigning responsibilities and
delegating authority and establishing relationships
for the purpose of enabling workers to work most
effectively together in the accomplishments of
objectives.
Organizing…Cont’d
Organization Chart/structure/Organogram:
Organization Chart- is graphic illustration of the

organization’s management hierarchy and

departments and their working relationships.

 Each box indicates position within the organization

and each line indicates reporting relationships and

lines of communication.
Organizing…Cont’d

Organizational chart remains useful because it

provides different important information

regarding:
Who reports to whom- that is chain of command.

Span of control - how many subordinates does a

manager have.
Channels of formal communication shown by solid

lines that connect each job(box).

Organizing…Cont’d
Bases of departmentalization - how organization is

departmentalized by function, customer, or product,

geographical etc.
Activities in each position - The labels in boxes

describe each individual’s activities.

Organizing…Cont’d

The hierarchy of decision making - where the

decision maker for a problem is located.
Authority relationships - solid connections
between boxes illustrate line authority, Zigzag lines
show staff authority, and broken line show functional
authority.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Authority and power

Authority: - is the formal and legitimate right of a

manager to make decisions, give orders, allocate

resources, and the right to command.
Types of authority:

i. Line authority

ii. Staff authority

iii. Functional authority

 Responsibility and Accountability
 Responsibility is the obligation to do assigned tasks. The individual

employee is responsible for being proficient at his or her job.

 Thus, responsibility is an integral part of a supervisor's authority.

 Accountability is answering for the result of one's actions or

omissions.
 It is the reckoning, wherein one answers for his or her actions and
accepts the consequences, good or bad.

 Accountability establishes reasons, motives and importance for

actions in the eyes of managers and employees alike.

Power
Power is ability to exert influence in the organization

or it is the ability to exert influence in the

organization beyond authority, which is derived from
position.
 Power…Cont’d

Sources power can be:

(i)Legitimate or position power – The power

possessed by manager and derived from the
positions they occupy in the formal organization.
This position power is broader than the ability to

reward and punish, as members need to accept the

authority of the position.
Power…Cont’d

(ii) Reward power- The power that comes from the

ability to promise or grant rewards.

(iii) Coercive power – is a power which enables

managers to force individuals to attain their work
assignments or to punish those workers who failed to
attain their job assignments.
Power…Cont’d

(iv) Referent (charismatic) power –refers to a person

who has desirable resources or personal traits.

(v)Expert Power- is power derived from an

individual’s knowledge and expertise.

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Delegation, Centralization & Decentralization
Delegation is the process of assigning authority and

creating obligation to accomplish objectives.

It is the downward transfer of formal authority from

one person to another.

Delegation…Cont’d

Centralization is a philosophy of management

that focuses on systematical retaining of authority

in the hand of higher level managers.
It is the degree to which decision-making is

concentrated in top management's hands.

Delegation…Cont’d

Decentralization is a philosophy of management

that focuses on systematical delegation of authority

through out the organization to middle and lower
level managers.
It is the extent to which decision-making authority is

pushed down the organization structure and shared

with many lower-level employees. >>>>>>>>>>>>>>
 3. STAFFING

 Staffing is concerned with determining and obtaining the proper

kind of personnel both in quality and quantity.

 It specifically deals with:

 The determination of human resource requirements both in quality
and quantity in:
 Manpower Planning (estimating man power in terms of searching,
choose the person and giving the right place).
 Recruitment, Selection, Reference & Placement.
 Induction
 Training & Development.
 Remuneration.
 Performance Appraisal.
 Promotions & Transfer.
 Separation
 .
 Steps of selection process

1. Screening of Applications
2 Selection tests
. These tests may be classified as follows: -
 Achievement test - It is also called performance test or trade
test. Achievement is concerned with what one has accomplished.
 The achievement tests are conducted to measure how well the
candidates know the things.
 For example, a typing test may measure the typing performance of a
typist in terms of speed, accuracy and efficiency.
 Intelligence test - Intelligence test tries to measure the level of
intelligence of a candidate.
 This test generally includes verbal comprehension, word fluency,
memory, and inductive, reasoning, number facility.
 Intelligence test is designed on the basis of age groups.
 Cont….

 Personality test – dimensions of personality such as interpersonal

competence, dominance-submission, and extroversion.
Introversion, self-confidence, leadership ability, patience, ambition
are measured through personality tests.


 Aptitude test – These tests are designed to assess the special

aptitudes of the applicants such as clerical aptitude, mechanical
aptitude, mathematical aptitude manual dexterity, abilities and
skills.

 Interest test – interest test is conducted to discover a person’s area

of interest and to identify the kind of jobs that will satisfy him/her

3. Interview-Subjective criteria
 Performance Appraisal

 Is used to determine the extent to which an employee is performing

the job effectively. Performance is said to be a result of employee’s
effort, abilities, and role

 Objectives of performance appraisal include:

 To provide information towards strengths an weaknesses of employees in
their job performance;
 To provide data for management for judging future job assignments,
promotions and compensation;
 To help better allocation of resources;
 To provide information to help maintain an equitable and competitive
pay structure;
 To supply general information on training needs for the organization or
department;
 To improve motivation by increased understanding of goals, the means
of attaining those goals and the rewards associated with achievement;
 To improve performance by developing strengths and dealing with
weaknesses; and others.
 Cont…

Appraisal Method: there are different methods of

carrying out performance appraisal which include:-
 Forced distribution method,
 The essay method
 The critical incident method and
 Graphic rating scale
 Who does the appraisal? Although in the vast majority
of the cases the immediate supervisors do the appraisal, an
organization can use different appraisers.
This could be:
 The immediate supervisor of the employee
 Group appraisal /Peer appraisal
 Self appraisal
 Employee Relations

 An employee relation is one important area of human

resource management.

 It is mainly concerned with the relationships existing

between employers and employees.

 Three basic elements of employee relations are :-

 A. collective bargaining,
 B. grievance handling, and
 C. disciplinary procedures.
 Cont…
 Separation

 The final operative function of staffing is separation of the

employee from the organization in order to return him or her
to society.

 The three main processes of separation are;

 (1) the retirement of older employees

 (2) the layoff or release of qualified younger employees no longer needed

by the organization

 (3) the discharge of employees who do not meet the organizations

expectations.

 All of these are important and sometimes traumatic events for both the
employee and the management of the organization.
4. Directing
Directing is said to be a process in which the managers

lead, instruct, guide, coach, supervise and oversee the

performance of the workers to achieve predetermined
goals.

 It is said to be the heart of management process.

It initiates action and it is from here actual work starts.

Importance of Directing
 Initiates actions
 Integrates efforts
 Motivates workers/employees
 Provides stability
 Enables to cope with the changes
 Helps in efficient utilization of resources
Elements of Directing:
 Supervision,
 Motivation,
 Leadership, and
 Communication.
 5. CONTROLLING
Controlling is making sure that something happen the way it
was planned to happen.

 Planning and controlling are virtually inseparable functions.

 Controlling is directly related to planning.

The functions of management cycle - planning, organizing,

directing, and controlling.

Controlling has following steps:

 Establishment of standard performance.
 Measurement of actual performance.
 Comparison of actual performance with the standards and finding out
deviation if any.
 Taking Corrective action
 Types of control
a) Pre control: control that takes place before work is
performed is called pre control, or feed-forward control
 Managers using this type of control create policies, procedures, and
rules aimed at eliminating behavior that will cause undesirable work
results.

b) Concurrent control: this refers to the control that takes

place as work is being performed.

c) Feedback Control: this refers to the control that

concentrates on the past organizational history
 Managers exercising this type of control are attempting to take
corrective action by looking at organizational history over a specified
time period.
 6. DECISION MAKING

 DM is the process of selecting an alternative course of action that

will solve a problem.

 The first decision is whether or not to take corrective action.

 DM process includes:-


I. Identifying the problem
 II. Identify the limiting or critical factors
 III. Develop alternative solutions.
 IV. Analyze the alternatives.
 V. Select the best alternative solutions.
 VI. Implement the chosen alternative.
 VII. Establish a control and evaluation system
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