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Functions of Management

The document discusses the five primary functions of management: planning, organizing, staffing, directing, and controlling. 1. Planning involves determining goals and courses of action to achieve them. Organizing is establishing organizational structures and assigning roles. Staffing deals with selecting and developing personnel. Directing includes leading, motivating, and supervising subordinates. Controlling measures performance against standards and makes corrections when needed. 2. While separating the functions provides theoretical clarity, in practice they are interrelated and overlap, with each affecting the others. The document explores each function in further detail.

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141 views5 pages

Functions of Management

The document discusses the five primary functions of management: planning, organizing, staffing, directing, and controlling. 1. Planning involves determining goals and courses of action to achieve them. Organizing is establishing organizational structures and assigning roles. Staffing deals with selecting and developing personnel. Directing includes leading, motivating, and supervising subordinates. Controlling measures performance against standards and makes corrections when needed. 2. While separating the functions provides theoretical clarity, in practice they are interrelated and overlap, with each affecting the others. The document explores each function in further detail.

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DIVINE INSTITUTE OF MANAGEMENT & STUDIES
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© © All Rights Reserved
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Functions of Management - Planning, Organizing, Staffing,

Directing & Controlling


Management has been described as a social process involving
responsibility for economical and effective planning & regulation of
operation of an enterprise in the fulfillment of given purposes. It is a
dynamic process consisting of various elements and activities. These
activities are different from operative functions like marketing, finance,
purchase etc. Rather these activities are common to each and every
manger irrespective of his level or status.

Different experts have classified functions of management. According


to George & Jerry, “There are four fundamental functions of
management i.e. planning, organizing, actuating and controlling”.

According to Henry Fayol, “To manage is to forecast and plan, to


organize, to command, & to control”. Whereas Luther Gullick has given a
keyword ’POSDCORB’ where P stands for Planning, O for Organizing, S
for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for
Budgeting.

But the most widely accepted are functions of management given by


KOONTZ and O’DONNEL
i.e. Planning, Organizing, Staffing, Directing and Controlling.

For theoretical purposes, it may be convenient to separate the function


of management but practically these functions are overlapping in nature
i.e. they are highly inseparable. Each function blends into the other &
each affects the performance of others.
1. Planning
It is the basic function of management. It deals with chalking out a
future course of action & deciding in advance the most appropriate
course of actions for achievement of pre-determined goals.
According to KOONTZ, “Planning is deciding in advance - what to
do, when to do & how to do. It bridges the gap from where we are &
where we want to be”. A plan is a future course of actions. It is an
exercise in problem solving & decision making.
Planning is determination of courses of action to achieve desired
goals. Thus, planning is a systematic thinking about ways & means
for accomplishment of pre-determined goals. Planning is necessary
to ensure proper utilization of human & non-human resources. It is all
pervasive, it is an intellectual activity and it also helps in avoiding
confusion, uncertainties, risks, wastages etc.

2. Organizing
It is the process of bringing together physical, financial and human
resources and developing productive relationship amongst them for
achievement of organizational goals.
According to Henry Fayol, “To organize a business is to provide it
with everything useful or its functioning i.e. raw material, tools, capital
and personnel’s”. To organize a business involves determining &
providing human and non-human resources to the organizational
structure. Organizing as a process involves:
o Identification of activities.
o Classification of grouping of activities.
o Assignment of duties.
o Delegation of authority and creation of responsibility.
o Coordinating authority and responsibility relationships.

3. Staffing
It is the function of manning the organization structure and keeping it
manned. Staffing has assumed greater importance in the recent
years due to advancement of technology, increase in size of
business, complexity of human behavior etc.
The main purpose of staffing is to put right man/woman on right job
i.e. square pegs in square holes and round pegs in round holes.
According to Kootz & O’Donell, “Managerial function of staffing
involves manning the organization structure through proper and
effective selection, appraisal & development of personnel to fill the
roles designed un the structure”. Staffing involves:
o Manpower Planning (estimating man power in terms of
searching, choose the person and giving the right place).
o Recruitment, Selection & Placement.
o Training & Development.
o Remuneration.
o Performance Appraisal.
o Promotions & Transfer.

4. Directing
It is that part of managerial function which actuates the
organizational methods to work efficiently for achievement of
organizational purposes. It is considered life-spark of the enterprise
which sets it in motion the action of people because planning,
organizing and staffing are the mere preparations for doing the work.
Direction is that inter-personnel aspect of management which deals
directly with influencing, guiding, supervising, motivating sub-ordinate
for the achievement of organizational goals. Direction has following
elements:
o Supervision
o Motivation
o Leadership
o Communication
Supervision- implies overseeing the work of subordinates by their
superiors. It is the act of watching & directing work & workers.
Motivation- means inspiring, stimulating or encouraging the sub-
ordinates with zeal to work. Positive, negative, monetary, non-
monetary incentives may be used for this purpose.
Leadership- may be defined as a process by which manager guides
and influences the work of subordinates in desired direction.
Communications- is the process of passing information,
experience, opinion etc from one person to another. It is a bridge of
understanding.

5. Controlling
It implies measurement of accomplishment against the standards
and correction of deviation if any to ensure achievement of
organizational goals. The purpose of controlling is to ensure that
everything occurs in conformities with the standards. An efficient
system of control helps to predict deviations before they actually
occur.
According to Theo Haimann, “Controlling is the process of checking
whether or not proper progress is being made towards the objectives
and goals and acting if necessary, to correct any deviation”.
According to Koontz & O’Donell “Controlling is the measurement &
correction of performance activities of subordinates in order to make
sure that the enterprise objectives and plans desired to obtain them
as being accomplished”. Therefore controlling has following steps:
a. Establishment of standard performance.
b. Measurement of actual performance.
c. Comparison of actual performance with the standards and finding
out deviation if any.
d. Corrective action.

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