1. The Four Functions of Management - POLC 👔

Planning → Organizing → Leading → Controlling

The management cycle that drives organizational success

1. Planning 📋

Setting goals and determining actions

• Define vision and mission
• Set SMART goals
• Develop strategies
• Create action plans

2. Organizing 📁

Arranging resources and tasks

• Design organizational structure
• Allocate resources
• Assign responsibilities
• Establish reporting relationships

3. Leading 🎯

Influencing and motivating people

• Communicate effectively
• Motivate employees
• Resolve conflicts
• Build teams

4. Controlling 📊

Monitoring and correcting performance

• Set performance standards
• Measure actual performance
• Compare with standards
• Take corrective action

2. Levels and Skills of Management 🏢

Different management levels require different skill sets.

Level	Examples	Primary Skill	Focus
Top Management	CEO, President, VP	Conceptual	Strategic planning
Middle Management	Department Heads, Managers	Human/Interpersonal	Tactical planning
First-Line Management	Supervisors, Team Leaders	Technical	Operational planning

Three Essential Management Skills:

• Technical Skills: Specific knowledge and expertise (accounting, programming, etc.)
• Human/Interpersonal Skills: Ability to work with and motivate people
• Conceptual Skills: Ability to see the big picture and think strategically

3. SWOT Analysis - Strategic Planning Tool 📊

SWOT helps organizations understand their strategic position before making decisions.

INTERNAL FACTORS

S - Strengths (+)

Internal advantages

Brand reputation, skilled workforce, patents

W - Weaknesses (-)

Internal disadvantages

Limited budget, outdated tech, high turnover

EXTERNAL FACTORS

O - Opportunities (+)

External favorable conditions

New markets, technology trends, partnerships

T - Threats (-)

External challenges

Competition, regulations, economic downturn

📌 SWOT Strategies:

• SO Strategy: Use Strengths to capitalize on Opportunities
• WO Strategy: Overcome Weaknesses by pursuing Opportunities
• ST Strategy: Use Strengths to minimize Threats
• WT Strategy: Minimize Weaknesses and avoid Threats

4. Organizational Structures 🏗️

How an organization arranges its people and jobs to accomplish work.

Functional Structure

Grouped by similar functions (Marketing, Finance, HR)

+ Specialization, efficiency

- Silos, slow communication

Divisional Structure

Grouped by product, geography, or customer

+ Flexibility, accountability

- Duplication of resources

Matrix Structure

Dual reporting (functional + project)

+ Flexibility, resource sharing

- Confusing authority, conflicts

Flat Structure

Few management levels, wide span

+ Fast decisions, empowerment

- Manager overload

Key Structure Terms:

• Span of Control: Number of subordinates a manager supervises
• Chain of Command: Line of authority from top to bottom
• Centralization: Decision-making at top levels
• Decentralization: Decision-making distributed to lower levels

5. Leadership Styles and Theories 🎖️

Different situations call for different leadership approaches.

Style	Description	Best For
Autocratic	Leader makes all decisions	Crisis, new employees
Democratic	Leader involves team in decisions	Experienced teams, complex problems
Laissez-faire	Minimal supervision, full autonomy	Expert professionals, creative work
Transformational	Inspires and motivates change	Organizational change
Transactional	Rewards/punishments based on performance	Routine tasks, clear goals

6. Motivation Theories 🎯

Understanding what drives people to perform is essential for managers.

Maslow's Hierarchy of Needs

Five levels (bottom to top):

Physiological: Food, water, shelter (salary for basics)
Safety: Security, stability (job security)
Social: Belonging, relationships (teamwork)
Esteem: Recognition, respect (promotions)
Self-Actualization: Reaching potential (challenging work)

Herzberg's Two-Factor Theory

Hygiene Factors (Prevent dissatisfaction)

Salary, working conditions, job security, company policies

Motivators (Create satisfaction)

Achievement, recognition, growth, responsibility

McGregor's Theory X and Theory Y

Theory X (Pessimistic)

Workers are lazy, need control and coercion

Theory Y (Optimistic)

Workers are self-motivated, seek responsibility

7. Decision Making Process 🤔

Rational Decision-Making Steps:

Identify the Problem: Clearly define what needs to be solved
Gather Information: Collect relevant data and facts
Generate Alternatives: Brainstorm possible solutions
Evaluate Alternatives: Analyze pros and cons of each
Select the Best Alternative: Choose the optimal solution
Implement the Decision: Put the plan into action
Evaluate the Results: Monitor and adjust as needed

Types of Decisions:

• Programmed: Routine, repetitive decisions (following procedures)
• Non-programmed: Unique, complex decisions (new situations)
• Strategic: Long-term, organization-wide impact
• Operational: Day-to-day decisions

📝 Practice Questions

1. What does POLC stand for in management?

Show Answer

Planning, Organizing, Leading, Controlling - the four functions of management

2. In SWOT analysis, which factors are internal to the organization?

Show Answer

Strengths and Weaknesses (S and W) are internal factors

3. Which leadership style involves minimal supervision and gives full autonomy?

Show Answer

Laissez-faire leadership

4. According to Maslow, what is the highest level of needs?

Show Answer

Self-Actualization - reaching one's full potential