STRATEGIC MANAGEMENT TOPIC

FUNCTIONS OF MANAGEMENT
Prepared by: Mr. Emmanuel J. Bacud, CSE-Prof

MANAGEMENT
Management denotes a social control toward a particular task.
Social control- putting order to the labor force
-controlling risk by strategizing the
available labor force
-sustaining the organizations vitality

The functions of management

consists of five basic activities
namely:
-Planning

-Organizing

-Motivating

-Staffing

-Controlling

II.) IN-DEPTH DISCUSSION ON THE FUNCTIONS OF MANAGEMENT:

A.) PLANNING
In reality, Planning is the task that managers neglect most. However, Planning, in management concept, is considered to be an
up-front investment in success. Planning is the essential bridge between the present and the future that increases the likelihood of
achieving the desired results. Planning makes a firm to attain maximum effect at a given effort. Planning also helps a firm to account
relevant factors and focus on critical ones. Planning enables a firm to identify precisely what is to be achieved and to detail
precisely the who, what, where, when, why and how needed to achieve desired objectives. Therefore, Planning is the cornerstone
of effective strategy formulation.
In an organization, everyone can develop synergy through planning. Synergy exists when everyone pulls together as a team (in
Political Science=> deliberative democracy) that knows what it wants to achieve. Synergy is the 2+2=5 effect. Synergy can result to
powerful competitive advantage of a firm.
END OF PLANNING: TO CREATE A STRATEGIC PLAN (A COMPANYS GAME PLAN)

REFLECT: PLANS ARE LESS IMPORTANT THAN PLANNING

-Dale McConkey
B.) ORGANIZING
The fundamental purpose of organizing is to achieve coordinated efforts by defining tasks and authority relationships. Organizing
means determining WHO DOES WHAT and WHO REPORTS TO WHOM.
The organizing function of management can be viewed as consisting of three sequential activities such as; 1.) breaking down tasks
into jobs (work specialization), 2.) combining jobs to form department (departmentalization) and 3.) delegating authority (delegation).
Work specialization- involves the development of job descriptions and job specifications
 Departmentalization- results to organizational structure, span of control and chain of command. Common forms of
departmentalization include functional, divisional, strategic business unit and matrix.
Delegation- matching available labor force to a particular job. Maxim: YOU CAN TELL HOW GOOD THE MANAGER IS BY
OBSERVING HOW THE DEPARTMENT FUNCTIONS WHEN THE MANAGER ISNT THERE.

C.) MOTIVATING
Motivating is a process of influencing people to achieve specific objectives. The organizing function of management includes four
major components namely; leadership, group dynamics, communication and organizational change.
LEADERSHIP- According to Drucker, Leadership is lifting of a persons vision to higher sights, the raising of persons performance
to higher standard, building of a persons personality beyond its normal limitations.
- leading-the-ship behavior; one who can lead other to attain something by maximizing everyones competencies
GROUP DYNAMICS- play major role in the employee morale and satisfaction. It can be understood by considering informal
coalitions formed within the organization in implementing certain policies.
COMMUNICATION- the major component of motivating.
ORGANIZATIONAL CHANGE- refers to the flexibility of the organization by tapping its labor force in shifting organizational goals.
(adept in adopting) and the how of resource allocation as well as the how of organizational goals.

D.) STAFFING
The staffing function of management is also known as personnel management or human resource management that includes
activities such as recruiting, interviewing, testing, selecting, orienting, training, developing, caring for, evaluating, rewarding, disciplining,
promoting, transferring, demoting and dismissing of an employees as well as managing union relations.

TRIVIA: International companies such as FORD MOTORS and EXXON MOBIL screen and interview spouse and children of an
employee before assigning to overseas position while the 3M Corporation introduces children to peers in the targeted country for the
employee and offers spouse with educational benefits. WHY DO YOU THINK SO?

E.) CONTROLLING
The controlling function of management includes all activities undertaken to ensure that actual operations conform with the
planned operations. All managers in an organization have controlling responsibilities such as conducting performance evaluations and
taking necessary action to alleviate inefficiencies. Controlling consists of four basic steps namely:
1.) Establishing performance standards.
2.) Measuring individual and organizational performance
3.) Comparing actual performance to planned performance standards
4.) Taking corrective actions.

III.) THE NATURE OF STRATEGIC MANAGEMENT

Strategic Management is the art and science of formulating, implementing and evaluating cross-functional decisions that enable an
organization to achieve its objectives.
MAXIM: IN GOD WE TRUST, ALL OTHERS BRING DATA
- Edward Deming
Synthesis: Strategic Management is an objective, logical and systemic approach for making major decisions in an
organization. It attempts to utilize both qualitative and quantitative data in formulating decisions for the stability and betterment of an
organization.

Pillars of Strategic Management:

1.) Integrating Management
2.) Marketing
3.) Finance/Accounting
4.) Production and Operations
5.) Research and Development
6.) Information System
END OF STRATEGIC MANAGEMENT: ORGANIZATIONAL SUCCESS

Assignment: -2007-2009 Financial Crisis and its Impact to Multinational Firms

-Strategies Made by the Affected Firms to Survive the Crisis *max. of 3 long bond paper, Arial-11 1-inch all side
-Reflection/ Conclusion/Suggestion to Philippine Firms if Another crisis would happen
 Time: 60 mins. LONG QUIZ IN STRATEGIC MANAGEMENT Date: __________

ID NO: ____________ Class No:___ NAME: ___________________________________________________ Score: ________

Name of School: ________________________________________________ Course: __________________________________
Age: ________________________________ Signature:_________________ Contact Number:___________________________

ID NUMBER: ________________ CLASS NUMBER: ________ NAME INITIALS (GN.MN.LN): ___________ SCORE: ________

I.) MATCHING TYPE. Match column A with column B and column B with Column C and Column C with Column D and Column D with Column E.
Your answer in each space provided must be a combination of letters. (Pointing system: 5-points, 2 points or 0)
E.g. F B A 4 1. Long-term goal
A B C D E
_______1. Management A. Technology & Access Q. Putting order H.Computer networks Z. Strategizing labor force
_______2. Information System B. Goal of S. Management R. Electronic database I.Aims profit 1. Alleviating inefficiencies
_______3. Marketing C. Conformity with plans S. Economic act J.Noble act 2. Promoting employees
_______4. Org. Success D. Risk control T. Leading-the-ship K. Training people 3. Policy Recommendation
_______5. Leadership E. Cross-functional decision U. Up-front Investment L. Control through people 4. Art of Suppressing enemies
_______6. Communication F. Sender & receiver V. Power relations M. Synergy 5. Communicare
_______7. Art of War G. Military strategy W. Shaping behavior O. Systemic approach 6. Drucker
_______8. Research H. Systematic inquiry X. Firms victory P. Making standards 7. Triumph of the Organization
_______9. Staffing I. Crisis augmentation Y. Corrective acts Q. Sequential 8. Increasing economic network
_______10. Motivating J. Managing your people Z. Avoiding harsh impact R. Positive feedback 9. Information World
_______11. Organizing K. Influencing others A. Major decisions S. War techniques 10. Strategists
_______12. Controlling L. Coordinated efforts B. Interactive process T. Administration 11. Pointing out good outputs
_______13. Planning M. Cornerstone C. Sun-Tzu U. IMRAD 12. Delegation
_______14. S. Management N. Guiding others D. Survey Questionnaire W. Two-way 13. Powerful advantage
_______15. Social Control O. Who needs the product? E. Human Resource X.Company success 14.Research & Development
P. Having social control F. Unity and Justice Y. Managers 15. Vacuum effect
II.) TRUE OR FALSE.
A.) All of the following statements are FALSE EXCEPT ONE. Please check the true statement. (10 points)
1.) In planning, the organization had already achieved its success.
2.) Organizing stipulates authority, coordination and evaluation of personnels.
3.) Skillful leaders or managers do not let a strategy inhibits creative counter-movement.
4.) Not all firms have strategies.
5.) Strategic management is not that highly interactive process as compared with controlling.
6.) Unplanned strategies only affects individual performances within an organization
7.) To plan is to augment the impacts of uncertainty in an organization
8.) Motivating is making employees better part of the labor force by assigning them in a particular department.
9.) Organizational success is strategic management.
10.) Strategic management is the vital element of strategic planning.

B.) All of the following statements are TRUE EXCEPT ONE. Please check the false statement (10 points)
1.) Planning enables a firm to conserve its own resources.
2.) The process of planning must involve managers and employees.
3.) A manager is also an employee in an organization.
4.) Democratic behavior of the leader results to positive attitudes of the employee but low productivity of an organization.
5.) In group dynamics, it is very highly important that the strategist identify the nature and behavior of a certain coalition.
6.) Human resource management is a tricky task among international companies.
7.) Strategic management ensures the perfection of the entire organizational process.
8.) Two-way communication system is vital for an organization.
9.) Taking corrective actions falls under staffing function of management.
C.) Defend that the following statement is TRUE. (5 points)
In a firm, a speedy victory is the main object of strategic planning.
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III.) ANALOGY. Complete the given analogy by supplying the required concept. (2 points each item)
1. GOOD DEPARTMENT: GOOD ________________
2. SOCIAL CONTROL : PUTTING ORDER TO LABOR FORCE as _________________________: PUTTING ORDER BY LAWS
3. DATA REQUIRED FOR GOOD MANAGEMENT: _____________________________ & ___________________________
4. SUBSTANTIVE EVALUATION: _____________________ as ______________________ : EXTERNAL
5. ________________________: JOB SPECIFICATION as ____________________________: ORGANIZATIONAL STRUCTURE
IV.) ODD-ONE OUT. Encircle the concept that is not belonged to the group. (10 points)
1. Corrective actions Performance standards Comparing outcomes Synergistic effect
2. Up-front investment Integrating Management Synergy Plans
3. Research & Development Marketing Information System Organizational Success
4. 2+2=5 effect Powerful advantage Collaboration Factionalism
5. Organizational stability Organizational progress Organizational development Organizational studies
6. MA Development Management MA Public Management MA Organizational Studies MA Sociology
7. Managers Strategist Decision-makers Company workers
8. Sun-Tzu Machiavelli Adam Smith Chaucer
9. Rewarding Disciplining Transferring Financing
10. COMPANY PLAN COMPANY DECISION-BLUEPRINT STRATEGIC PLAN COMPANY PROFIT

V.) CASE STUDY. Read and analyze the following case-study provided. Answer the following essay question briefly and precisely.
Breakdown of points: 3 points for grammar and organization of ideas and 5 points for the content and weight of propositions indicated.

1.) Justify the following proposition using the case. YOUR

COMPETITIVE ADVANTAGE IS NOT ANYMORE AN
ADVANTAGE WHEN IT IS ALREADY AVAILABLE TO OTHER. 8 points
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2.) What do you think is the most essential contributory factor as to the strong sales growth in spite of recessionary conditions worldwide?
8 points
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3.) Under the concept of controlling function of management, would you consider the slogan BEWARE OF CHEAPER COFFEE.
IT COMES WITH A PRICE as a corrective action of STARBUCKS to McDonalds 4 Bucks is a DUMB? 8 points
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4.) Speculate on the following using the previous discussion.
IMAGINE THAT YOU ARE A McDONALD Franchise Manager in Baguio City, how will you deal with the rivals such as
JOLLIBEE and MANG INASAL in your city to sustain the organizational stability and vitality of the company? 10 points
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5.) Critique one McDonald branch located in your community in terms of ORGANIZING, STAFFING, & CONTROLLING. 10 points.
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