Management functions of entrepreneur

Lecture method

1. MANAGEMENT FUNCTIONS OF ENTREPRENEUR -emmardHermosura-

2. Planning - the most basic management function that tells you where to go and how to get there. It is like preparing a blueprint of what is to be done, when, how, and by whom it should be done.

3. Classification of Plans: Standing plans. These plans are used repeatedly and cover policies, procedures, and rules.

4. Single-used or single-purpose plans. These plans are essentially one-shot or non repetitious. This is used within a relatively short period of time, they comprise programs, projects, and budgets.

5. Another way to classify plans is according to whether they are short , (to be from a day to a year), intermediate range plans (to be from a few months to three years); and long-range plans (to be up to 25 years

6. Steps Involved in the Strategic Planning Formulate organization objectives. This serve as the basis where the efforts and services will be used.

7. Steps Involved in the Strategic Planning Analyze present resources. This refers to the availability of money, staff, machines, materials, space and time to help you realize your plans

8. Steps Involved in the Strategic Planning Determine alternative courses of action. Reduce number of alternatives. Remove those do not look promising, and retain those sound ones for further analysis.

9. Steps Involved in the Strategic Planning Examine the alternatives. You need to do some statistical and quantitative analysis of factors involved in each alternative.

10. Steps Involved in the Strategic Planning Select the best course of action. Choosing alternative most likely to be effective in achieving your objectives.

11. Steps Involved in the Strategic Planning Develop support plans. Smaller plans aims to establish coordination among other levels of the organization so that the enterprise goal can be easily achieve.

12. Steps Involved in the Strategic Planning Implement the plan. Plans only come into reality when it is implemented. In implementing the plans, it require the exercise of other management functions, such as organizing, staffing, directing, and controlling.

13. Organizing - involves identifying the specific activities necessary to achieve the enterprise goals, clustering the activities into departments or job positions, and designating the personnel to head and compose each department.

14. EXAMPLES OF ORGANIZATION DIAGRAM A. LINE ORGANIZATION The manager has direct command over workers who accomplish the tasks. Below is an example of a line organization

15. B. LINE AND STAFF ORGANIZATION Any activities that a line officer can not do are delegated to a staff officer to render these services.

16. C. FUNCTIONAL STAFF ORGANIZATION In this setup, the worker has more than one immediate superior or as many as the types of activities assigned to him.

17. STAFFING -This process involves proper and effective selection, appraisal and development of personnel to do the jobs and fulfill the roles in the structure.

18. Asses your workload. The officers manning the operating units can determine what exactly they are responsible for

19. Study jobs in the company. This refers to the process of determining the duties, responsibilities of each job.

20. Examine your present personnel. Assess the skills, strengths, weaknesses, and potentials

21. Design an improvement plan. If you find out that there is a problem in quantity or quality of skills among your present personnel, you may adopt any of the following solutions:

22. a) If your workers are not enough, consider recruiting from inside or outside the organization. b) If your workers do not posses s the required skills, you may resort to training and development.

23. Directing -involves putting your plans into effect. How to influence your subordinates who have distinct needs and a unique personality, to contribute to the attainment of the firm’s objectives is the principal concern of directing.

24. Directing includes the following; Motivation is the process of encouraging the subordinates to act in a desired manner.

25. Directing includes the following; Leadership is the ability of an individual to persuade the subordinates to follow.

26. a. Conceptual skills refer to the mental capacity of an individual to grasp the relationship of different parts into an integrated whole. They need these skills in planning, and analyzing.

27. b. Human relation skills is the ability to deal effectively with people

28. c. Technical skills incorporate the capabilities to perform the mechanics of a certain job which the operative employees perform, like producing goods that the company manufactures.

29. controlling - The function of controlling is to make sure that what is done in the enterprise conforms to what has been planned.

30. The two main activities involved here are comparing actual performance with desired performance and making necessary connections where there is deviation from the plans.

31. Steps in the controlling process

32. A. Establish standards. Standards are sets of measurements against which you can evaluate actual results.

33. Three common types of standards:  Physical standards include quantity of products or services, number of customers or clients, and quantity of clients or services.

34. Three common types of standards:  Monetary standards are indicated in terms of peso values and include labor cost, selling cost, material cost, sales revenue, and gross profit.

35. Three common types of standards:  Time standards refer to the speed with which job should be done or the deadlines for their completion.

36. B. Set performance measurements. It is also necessary to determine how often should you measure performance, who will do the measurement, and what form will the measurement take.

37. C. Measure actual performance. This step can be easy for you if the standards are spelled out clearly and if what your personnel are doing can be determined clearly.

38. D. Compare performance with standards and analyze deviations Data about actual performance can be meaningless unless they are compared with desired performance.

39. Then you should analyze the reasons for the failure to meet the standards so that you can deal with the roots of the performance problems.

40. Depending on the nature of the shortfalls in performance, you may correct these shortfalls by resorting to any of the following remedies.

41. a) Revising your plans b) Modifying your goals c) Reassigning workers d) Clarifying duties and responsibilities e) Hiring additional staff f) Firing problems workers g) Stronger leadership

42. Controls can be classified as either organizational or operational. Organizational controls are those that measure the over all performance of the organization. Operational controls evaluate day to day activities and spot areas where you may need to take corrective actions.

43. CHARACTERISTICS OF EFFECTIVE CONTROLLING a) They control the proper activities. People will naturally be conscious about meeting standards if they are aware that those activities will be monitored.

44. CHARACTERISTICS OF EFFECTIVE CONTROLLING b) Control should be timely. “A stitch in time saves nine” a popular saying goes. Control must report deviation in time to enable you to deal with the problem before it is too late.

45. CHARACTERISTICS OF EFFECTIVE CONTROLLING c) Controls should be cost effective. Controlling entails costs. But are all these practical and economical?

46. CHARACTERISTICS OF EFFECTIVE CONTROLLING d) Controls must be accurate. Control measures must be accurate to have a good basis for corrective actions.

47. CHARACTERISTICS OF EFFECTIVE CONTROLLING e) Controls must be accepted. It is important that your people understand the purpose and benefits of control so that they will not feel that you have installed controls just because you don’t trust your men.

48. THANK YOU AND GOD BLESS! -SIR EMONG1228-