Functions of Management

Managerial Functions: Various management scholars studied different organizations at different

times; they identified the functions of management in their own ways. Henry Fayol, the father of
functional or administrative management remarked: ―To manage is to forecast and plan, to
organize, to command, to coordinate and to control‖ Thus, Fayol classified management functions
into five categories as follows:

(i) to forecast and plan,

(ii) to organize,

(iii) to command or to give orders,

(iv) to co-ordinate, and

(v) to control

Luther Gullick offered a list of administrative functions under the catchword “PODSCORB‖. Each
alphabet of this keyword ―PODSCORB‖ stands for the following activities: P for Planning, O for
Organization, D for Directing, S for Staffing, Co for Coordinating, R for Reporting, and B for
Budgeting.

According to Koontz and „O‟ Donnell, ―The most useful method of classifying managerial activities
is to group them around the functions of planning, organizing, staffing, directing, and controlling. ―
They think that coordination is not a separate function but is the essence of management. Thus, for
the sake of analysis of their management process, we can classify the management functions into
the following categories:
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.

Planning involves the following steps.

(i) Determination of objectives;

(ii) Forecasting;

(iii) Formulation of policies and programmes;

(iv) Preparation of schedules

Planning is a process of seeking answer to some of the following particular questions:

(i) What is to be done?

(ii) Why it is to be done?

(iii) How the work will be done?

(iv) Who will do the work?

(v) When the work will be done?

(vi) Where the work will be done?

Planning pervades at all the levels of organization. But the scope of planning is not the same at
each level of organization. Higher the level of organization, the broader the scope of planning.
Planning may be long term and short term.

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:

1. Identification of activities.

2. Classification of grouping of activities.

3. Assignment of duties.
4. Delegation of authority and creation of responsibility.

5. Coordinating authority and responsibility relationships.

24

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 behaviour etc. The main purpose of staffing is to put right
man 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 the
structure. Staffing involves:

1. Manpower Planning (estimating man power in terms of searching, choose the person and
giving the right place).

2. Recruitment, selection & placement.

3. Training & development.

4. Remuneration.

5. Performance appraisal.

6. 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 inert-personnel aspect of management which
deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of
organizational goals. Direction has following elements:

1. Supervision

2. Motivation

3. Leadership

4. 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.