Why is a Manager Required?

In any organization managers have various functions such as marketing, production, purchase, material management, supply chain management, finance, HR, project and similar posts required by the organization. But in each case the manager should have knowledge of the functional area. He should also be familiar with budgeting expenses in his department and also spending the money allocated to him by top management. For example, a purchase manager must allocate the budget for procurement of inputs he is buying annually for the production. He should also allocate money for expenses like conveyance and all other departmental needs. Here I have assumed the manager to be a departmental head. But this will change according to the size of the organization.

A manager must also understand the people working with him and develop them suitably to give a better performance. Now I am giving the manager’s role of each function and what he must know.

I am mentioning the HR manager first, as he has to play the role of generating payroll, recruitment and training and development of the entire organization. He has to organize training internally or outsource from external agencies. Same thing regarding recruitment. He has to undertake the task internally or entrust the task to consultants outside the organization.

Let us take the case of marketing. A marketing manager must be fully aware and have knowledge of the product and services he is selling. Secondly,  it is very important for him to know about his customers and other users in the market for his organization’s products and services. He should make specific plans to increase the market share for which he has to obtain permission from the management for expenses of advertising, sales promotion and  other relevant and applicable expenses.

The marketing manager should also have an eye on his team and provide the opportunities to team members, by formal training, on –job training, and personal guidance. He should also cover the territories not covered earlier through distribution channels or deploying  sales force. Also he should keep an eye on new products or substitute products introduce by the competitors. If feasible he must also plan to introduce such products with a price advantage and usability. He should take the approval of Higher management regarding expenses and development of new products.

Next, I take up supply chain, purchase, stores and materials under materials management. First step is to develop the source and obtain trial lots after the approval of the same. Developing the source and taking them under approved vendor lists. Any big company nowadays outsource 80 per cent of the components in the Engineering Industry.

In the process industry the additives are bought and added to the main raw materials in- house. They are then processed for finished products. Any material manager normally has three managers under him. They are Purchase Manager, Store Manager and Logistic Manager. The material manager personally looks after inventory control and periodically make changes in areas of  purchase, stores and supply chain management. The material manager approves the vendors based on the spade work done by  purchase manager and the bought out items or procured ones from the approved vendors.

The store manager reporting to material manager receives the input items  form the vendor and in-house shops and stores them properly. The material received from in-house shops are finished goods which are dispatched to various destinations as per the instructions of the marketing manager. The inputs materials received from vendors are issued to various in-house shops for further processing into finished products based on the shop requisition signed by the proper authority.

The supply chain management headed by a manager or a person at a slightly lesser position reporting to the material manager organizes the transport to collect materials from various vendors and also dispatch to various destinations as required.

The production manager oversees the production and manufacturing of goods as decided by the marketing and higher management at the beginning of the fiscal year.

The project manager may be independent and directly report to the CEO of the company or all production managers. Expansion or new products are looked after by project managers.

The Finance manager is supposed to summarize all the activities i.e. incoming revenue and expenses in terms of money and is responsible for generating a proper annual report at the end if the fiscal year in concert with the company secretary (CS).

IT and ITes industries are service oriented and so the equation is different. There the manager is heading the SBU and the marketing and procurement can be a centralized operation. Each company has its own policies.

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