Video Transcript: 5 Functions of Management

hello everybody. Welcome back. My name is Michael Greene. We're going to  continue talking about the five functions of management. And the first video, the  introduction of management. We touched on some of these concepts, but in this  video, we're going to kind of dive into them a little bit more and discuss them at  a greater level. So first thing we want to talk about is the manager's job and how they're organized around the five functions. So again, the five functions of  management, planning, organizing, staffing, leading, controlling, we talked about those again in the first video, but in this video, we really want to talk about them  individually, expand on those points so that we can have a better idea of what  they are. Fundamentally, managers determine what needs to be done, who will  do it, and what resources will be needed, like we spoke about in the first video,  resource allocation is so critical to maintaining an optimal and efficient, effective  organization and making sure that those operations are staying in tune with  developing and implementing and then also making sure that we are achieving  the company organizational goals and objectives. The resources of an  organization include the people, its money, facilities, equipment and materials.  These resources are all critical to having an efficient, effective organization,  making sure that we're competing in the market and that we are continuing to  take market share from the competition. And through these five functions of  management, we'll be able to make sure that we are competitive in our  marketplace and that we're able to take market share, and that will continue to  grow the organization. Staffing, again, staffing is critical to implementing our  objectives and our goals and our strategies, to making sure we have an  effective, efficient organization that is optimizing and maximizing our profit  potential, right? Because, at the end of the day, the senior management, they  want to have an opportunity to maximize shareholder wealth. As they do this,  they're going to be able to have more people invest into their company, and then they can grow operations and expand which is better for everybody else, the  more 0that a company or an organization can expand, the more opportunities  it's going to have for people that are already working for it internally, promotions, pay raises, etc. So staffing is a key critical component to the five functions of  management. As we develop our staff, as we train our staff, we will continue to  be better managers. As our staff continues to grow and get better, we will be  more effective in our communication, because they are going to know the  directives and be able to implement them more effectively, and as that happens,  we'll have better opportunity to maximize shareholder equity. Leading is another  critical component. All five of these are equally critical, but leading in staffing to  me, as well as organizing, planning, they're all critical, but really leading your  people is very critical for a manager to make sure that they are undertaking the  leadership responsibility with the right responsibility, and making sure that they  are implementing the plans, taking care of the people, taking care of the  consumer, effectively negotiating with our clients, etc. Now controlling, 

controlling we will, as effective managers, have our pulse, our hand on the pulse of the organization at all times through the data and the collection and the  interpretation of that data, and know where our weaknesses are, know where  our strengths are. Know how we can adjust and fix our strategy and make sure  that we are developing more efficient, effective systems and operations as time  goes on. So let's go back to planning. The first step for managers to develop a  plan, we need to know what our resources are, who our people are, how we can spread out our resources, and how we can make sure that we are putting  ourselves in a position to be able to be effective, efficient managers in turn have  an effective, efficient operation, which in turn is going to Allow for growth  organization wide. So planning is a process concerned with defining goals for  the company's future direction, determining the missions and resources to  achieve those targets, to meet those objectives. Managers may develop plans  such as business plan or marketing plan. So as we develop our business plan,  we're going to know what are. Our profit objectives here, as managers, we need  to know how many labors, how much, how many labor hours can we have?  What are our costs for materials? How can we allocate those resources  effectively and efficiently to make sure that we get the job done, but we're  getting done more with less. So in the planning stage, this is where you're  coming up with those ideas. You're structuring your plan, then you're going to be able to move into the next phase, which is organizing that plan. So now that we  have, okay, I know I'm going to need X amount of labor hours here. I know I'm  going to need X amount of raw materials here. So now I've planned this, right? I  know the materials and resources and labor that I need now I'm going to  organize those materials and that labor and those resources to be able to  effectively and efficiently come up with a plan that will be able to be  implemented simply by our employees. So through the organization function,  from the plan to organizing, we'll be able to accomplish those tasks and those  goals and objectives. Once we get the Organize, organizing the planning in  place, once the plan is in place, the next management decision is how to  organize and teach how to organize each type of resource to make sure the  plan can be accomplished. So we've got to make sure that it's able to be simply  done. Right? We don't want to over complicate the process for our staff and our  frontline managers, because if it's difficult for them to implement, and it's difficult  for us to teach them how to implement it. It's not going to be effective and  efficient. So we need to make sure that we organize each type of resource to  make sure the plan can be accomplished. So I know when I was growing up, we used to have this method, and I'm sure it's still around, right the kiss method.  Keep it simple, stupid. That's just kind of the way I was always brought up to  remember, hey, keep it simple. Don't worry about making it more complex and  more difficult, because the more complex and more difficult that you make a  plan and you try to organize that plan, the more that can go wrong. So let's 

simplify it down for people to make it more effective and efficient, so that  processes can flow smoothly. And so when the plans do or when problems do  arise, we're able to put in a plan quickly and cure that wrong processes of  process of determining the activities to be performed, such as assigning  managerial authority and employee responsibility. So on the internal frontline  staff, there's also a hierarchy, right? You need to have an assistant manager.  You need to have a team lead. You have a floor supervisor, somebody that can  help on the floor making sure that things are running smoothly and operating  efficiently. And then they can come back and talk to the line manager, who then  can communicate with the middle manager, who then can communicate with the senior manager to make sure that all phases of the operation are going well.  Organizing is a function by which the concern is able to define the role,  positions, the jobs related and the coordination between authority and  responsibility. So we need to make sure that we classify the role differentiation I  know as a supervisor, as a manager in the past, I really wanted to make sure  there was a line that frontline staff or line managers couldn't cross, as far as  fraternizing with the manager, there needs to be a sense of authority from the  manager, and therefore the person with authority, the manager in the  organization, can delegate out the responsibility and then also assign authority.  So it's very important to understand that this keeping the authority structure in  place is critical to being able to plan, organize and implement staffing, staffing,  staffing, critical, critical, critical, right. We want to make sure that the staffing is  done properly, the right fit and the right job. So that makes our job as managers  much easier. So we want to hire for fit. We want to hire the right person for the  right job and put them in that position, and then give them the tool that they  need to be able to succeed. So hiring the right person right we want to recruit  the right people. We want to know. We want to gear our recruitment towards the  type of people that when we want to bring into our organization. So through that  recruitment process, we get applications. So then, as managers, we have to  thumb through those applications, and we have to look for the highest qualified,  best fit people for that. Job. So anybody can have a good resume, right? But the people that we want to hire are the people that I look for are strong people,  interpersonally, high character, people that are going to be willing to offer  themselves to the organization, to a degree, to be able to do a good job and be  committed and be ready to work. So the selection process is a big feeling out  process, the interview process, you might go through several interviews. I know  I've been through several interview processes where I've been on two or three  different interviews. So that part is so critical to fine tuning who we want to bring  on to staff. Now, once we recruit and we select and we make an offer, and they  sign the offer, we bring them in, what's the best place for them? What facility,  what office, what landscape, what environment do we want them to be in? So  the placement piece is crucial too, because you want to make sure that the right 

personalities are fitting, the chemistry is good, and that we can ultimately,  efficiently and effectively maximize our output through the staffing process. Now  the next part of staffing is once we've hired the person, right, we place them  where we want them to be. Now the training begins, the education begins, no  matter if you are a senior VP at a multinational bank or if you are a housekeeper at a hotel, training never stops. Okay, you have got to continue to get better in  your industry, in your field, so that you can compete with the competition and  continue to make take market share from the competition, and we do that by  investing into our employees, letting them become who they are, and in turn,  they'll develop that entrepreneurial spirit that we want them all to have, even if  you're a frontline manager, even if you're a frontline staff member, the training  piece allows you to gain ownership into that developing the sweat sweat equity  that you need to make sure that we are prepared and ready to take advantage  of the opportunities that the market puts out. Leading as a manager, this is one  of our most critical components as you are, the face and the voice of the  organization in front of whoever you're in front of, whether it's your own  employees or your customers or your clients, you need to make sure that you  are the one that has control of the situation, that you're the expert in your field,  that you're able to give them the best choices that are going to give everybody  the best results. So a process of supervising, directing and communicating with  subordinates to achieve organizational objectives. So simply put, you are the  one that is directing the flow of work. You are the one that is directing the flow of  operations. You are the one that is communicating from the top down to the front line staff, to the line manager, right you're the one that is making sure that all of  those objectives are clearly, concisely communicated, and that they're easily  understood, and then they can be put into practice just as easily. So leading  influences the human behavior response, right? You want to make sure that  your people are all in with you. You want to make sure that you are leading from  the front, that they can see that you are the clear, visible leader of the  organization, and that people can follow you. You want people to follow you. You want people to be like, Hey, this is the guy that I can follow, because I know he  gets results, and I want to do what he asked me to do, because we're all in this  together. You want to make people feel integrated. You want people to be a part  of the team. You want to be the one that cheerleads them, but you also want to  be the one that disciplines them. You want to be the end all be all in your  organization when it comes to all things operations, so that we can be effective  and efficient in all phases of our operation. So being a strong leader is one of  the most critical components of a manager, right? So I think that leading, if  you're a strong leader, you're going to plan strong, you're going to organize  strong you're going to hire strong people, right? So being a leader and a natural  entrepreneur is really going to help you succeed in any managerial undertaking  that you might have controlling involves establishing standards of performance, 

measuring current performance, comparing with established standards, and  taking corrective action. Any business that you're in, any company organization,  they're going to have specified metrics. They're going to have variable  measurements of performance. So once we collect that data, quarter over  quarter, month over month, week over week, day to day, however you want to  do it, you can compare and contrast metrics, find out where you're falling short.  Find out we're using too much resources. Find out that we are staffing too much  labor. Find out if we are meeting profitability metrics. Whatever it is, through the  measurement of these metrics, we're able to find out how we're actually  performing on a quantifiable scale, or we can see the data. It's tangible. I see  that these are the results. Now we can compare them however you want to  compare them, and now we know how to best adjust our strategy. So controlling  helps to ensure everything is done according to pre determined goals. So we  use the controlling mechanism as a safety to make sure that we're always  performing at an optimal level. So these are the five functions of management. I  hope that you are able to kind of have a more concise, clear picture what it is to  be a strong manager, to be a strong leader, and to know these five phases, how  they're integrated together and how we can continue to create a strong  organization