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Functions of Management

Functions of Management
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Functions of Management

Functions of Management
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Functions Of Management:

Function # 1. Planning:

Planning helps in determining the course of action to be adopted for achieving


various organizational objectives. It is a decision in advance, i.e. what to do,
when to do, how to do and who will do a particular job. Planning is a process
which involves ‘thinking before doing.’

Planning is related with the mental state of a manager. He thinks before


undertaking a work. Other functions of management such as organising,
staffing directing, coordinating and controlling are also undertaken after
planning function is complete.

As per Terry, “Planning is the selecting relating of facts the making as


well as using of assumptions regarding the future in the visualisation
and formulations of proposed activities believed necessary to achieve
desired results.”

Planning is a process of looking ahead. The primary objective of planning is to


achieve better results. It involves the decision regarding organizational
objectives and developing policies, procedures, programmes, budgets and
strategies. Planning is a continuous process that works at all levels of
management.
A detailed planning is done in the beginning but the actual performance is
reviewed and suitable changes are incorporated in plans when actual
execution is done. Plans may be of many types, such as short range plans,
medium range plans, standing plans, single use plans, strategic plans,
administrative and operational plans.

The process of planning involves a number of steps:

(i) Collecting information

(ii) Laying down objectives,

(iii) Developing premises

(iv) Examining alternative courses of action

(v) Evaluation of working

(vi) Reviewing imitations of the system and

(vii) Implementation of plans for achieving the targets.

Function # 2. Organising:

Every business enterprise requires the services of a number of people to look


after its different aspects. The management decides the goals to be achieved
by its manpower.
The energy of every individual is channelized to achieve the enterprise
objectives. The function of organising is to arrange, co-ordinate, direct and
control the activities of all factors of production i.e., men, materials, machines
and money in order to achieve the targets of the enterprise/unit.

According to Louis A. Allen, “the process of identifying and grouping work


to be done, defining and delegating responsibility and authority and
establishing relationships for the purpose of enabling people to work
most effectively together in accomplishing objectives.”

The process of organization involves the following steps:

(i) Identification of the work to be performed.

(ii) To group the work of similar nature.

(iii) To assign these groups of activities or work to individuals.

(iv) To delegate authority and fix responsibility at various levels.

(v) To co-ordinate these authority-responsibility relationships of various


activities.

The character and type of organization depends upon the size and nature of
the enterprise. Though there are many types of organizations but generally
three types of organizations discussed earlier under sub-heading 8.2 are
generally used.
In the line organization authority flows vertically form the top of the hierarchy
to the bottom. Under functional organization the work is divided into different
departments. Each department deals in one type of work and it specialises in
one work only.

A workman has to work under many superiors who have specialization in


different functions. Line and staff organization provides for specialists with line
executives. It is a combination of line and functional form of organization.

Function # 3. Staffing:

The function involves recruitment in the positions created by organization


process. It is related with human resources of an organization. According to
Koontz and O’ Donnel, staffing is filling, and keeping filled positions in the
organization structure through defining work force, requirements, appraising,
selecting, compensating and training.

Thus, staffing consists of the following:

i. Manpower planning,

ii. Recruitment, selection and training of manpower;

iii. Placement of Manpower in requisite position,

iv. Development, promotion, transfer and appraisal of manpower and

v. Determination of employee remuneration and incentives.


Every manager in an organization has to perform the staffing function in one
form or the other, in order to get things done through others. But it is definitely
a difficult managerial function as it relates to human beings whose behaviour
and actions cannot be predicted, and that is why it has become a distinct and
specialised branch of management.

Function # 4. Direction:

Directing is concerned with carrying out the desired plans related with targets
of the organization. It initiates organised and planned action and ensures
effective performance by subordinates towards the accomplishment of group
activities. Direction is called management in action.

After planning, organising and staffing, the manager has to show way and
supervise his juniors. According to Massie, Directing concerns the total way in
which a manager influences the actions of subordinates.” It is the final action
of a manager in getting others to act after all preparations have been
completed.

Directing is a continuous function and is performed at all levels of


management. The main activities involved in direction may be:

(i) Leadership:

A manager has to issue orders and instructions and guide plus provide
professional advice to his subordinates in their work with a view to improve
their performance and achieve enterprise objectives.
Leadership is ‘the process by which an manager imaginatively directs and
influences the work of others in choosing and attaining specified targets by
mediating between the individual and organization in such a way that both will
get maximum satisfaction.

Leadership is the ability to generate confidence and zeal among workers and
to create an urge in them, to be led. To be a successful leader, a manager
must possess the qualities of foresightedness, drive, initiative and self-
confidence. Different situations may require different types of leadership, i.e.
autocratic leadership and democratic leadership.

(ii) Communication:

Communication constitutes a very important function of management. It is


considered as the number one problem of management, today. It is an
established fact that managers spend 85 to 95 percent of their working time in
communicating with others. Process of communicating is the action by which
the behaviour of the subordinate is judged, modified and change is effected in
their actions if required.

The word communication has been derived from the Latin word, ‘communis’
which means ‘common’ Thus communication means sharing of ideas in
common.

The essence of communication is related with in receiver and the sender so


as to enable them understands a particular message. It refers to the exchange
to ideas, feelings, emotions and knowledge and information between two or
more persons. Nothing happens in management till communication is allowed.

Communication is a two-way process as it involves both information and


understanding Communication is said to be formal when it follows the formal
channels provided in the organization structure, it is informal communication,
when it does not follow the formal channels. Communication tows downward
from a superior to his subordinates and upward from subordinates to their
superiors.

Communication is essential at all levels of management for taking decisions


and planning. It increases managerial capacity and facilitates control.

(iii) Motivation:

The term motivation is derived from the word ‘motive’ which means a
requirement or emotion which encourages an individual into action. Motivation
is the psychological process of creating urge among the subordinates to work
or behave in the desired manner.

It is a very important function of management. The importance of motivation


can be realised from the fact that performance of a worker depends upon his
ability to work and the motivation created in him.

There are many strategies adopted by managers for increasing the motivation
of their subordinates. Thus a manager has to provide some personal incentive
to the subordinates to motivate persuade and inspire them for contributing
their best effort towards the achievement of enterprise goals.
The incentives to be provided may be financial, such as increase in wages, or
non-financial, like better working conditions job security, recognition, etc.

(iv) Supervision:

Supervision is another important element of directing function of management.


After issuing instructions, the manager has to see that the given instructions
are carried out. Supervision refers to ensure maximum utilisation of input
resources, to get the required and directed work done and to correct the
subordinates whenever they proceed wrong.

Though supervision is performed at all levels of management, the major


responsibility for supervision lies with the first line of management. Sound
organizational set up, effective delegation, human approach, effective
communication techniques and management make supervision effective.

Function # 5. Co-Ordination:

Co-ordination is regarded as the most important functions of management. It


is essential to channelize the activities of various individuals in the
organization for the achievement of common objectives. It is left to the
management to see that the work of different segments is going according to
predetermined goals and corrective measures have to be taken if there is any
deviation.

From the set targets co-ordination creates a team spirit and helps in achieving
goals through collective efforts. It may be termed as the orderly arrangement
of group effort to provide unity of action m the per-suit of common objectives.
Co-ordination can be classified under the two categories:

(i) Vertical and horizontal co-ordination, and

(ii) Internal and external co-ordination.

Whereas vertical co-ordination is the co-ordination between different levels of


management, whereas the term horizontal co-ordination is used when co-
ordination has to be achieved between departments of the same level of
authority and power Co-ordination is internal when it is between different
sections of the same enterprise or industrial unit and external when it is
required with people or experts outside the organization to the enterprise.

Co-ordination is regarded as the very essence of management as a manager


has to perform all the other functions of management, i.e., planning
organising, staffing, directing and controlling.

Function # 6. Control:

Control can be considered as “determining what is being accomplished, i.e.,


evaluating the performance if, necessary, applying corrective measures so
that the performance takes place according to planned

Control is essential for achieving objectives of an enterprise. The planning of


various activities does not ensure automatic implementation of policies.
Control is the process which enables management to get its policies
implemented and take corrective actions if performance is against the pre-
determined targets and standards.
Planning is the beginning of the management process, controlling may be
considered the final stage of the technique. If planning in is looking ahead,
controlling is looking back. Control is not possible without planning and
planning is meaningless without control so the two are closely related with
each other.

Control is a live function and executives at various levels of management


continuously assess the performance of their subordinates. The main function
of control is to see that the performance is able to meet the desired results. A
control system, to be effective, must conform to the nature of activity report
deviations if any promptly, reflect organization structure, assure corrective
action and be economical.

The process of controlling involves the following steps:

(i) Establishing or setting standards of performance.

(ii) Measuring actual performance of the enterprise.

(iii) Comparing the actual performance with the standard set.

(iv) Finding deviations, if any, and

(v) Taking corrective action if required.

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