Management describes as a social approach that involves responsibility for economical and effective planning and system of actions of an organization in the fulfillment of given goals or objectives.
It is an on-going approach to various components and activities. These activities are different from effective functions such as marketing, sales, and finance, etc. Different well-known experts have classified these activities in functions of management.
The functions of management depend on the type of business or organization a manager work for. All managers perform the five major functions such as planning, organizing, staffing, directing, and controlling which are given by KOONTZ and O’DONNEL.
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. Controlling brakes into three separate functions (co-ordination, reporting, and budgeting). But the most widely accepted are functions of management given ex-Planning, Organizing, Staffing, Directing, and Controlling.
For conceptual clarity, you should understand the function of management separately, but in reality, these functions blend into the other. Each function affects the performance of others.
In this article, we will see the primary functions of management and their value in gaining organizational goals.
So, let’s drive in.
5 Functions of Management Process
Before taking any action, one has to decide what the work will be performed and where and how it has to be performed. You have to clear this three questions what, where, and how will be performed to plan for the organizational goals.
Peter Drucker has given a definition of planning which as:
“Planning is the continuous process of making present entrepreneurial decisions systematically and with best possible knowledge of their futurity, organizing systematically the efforts needed to carry out these decisions and measuring the results of these decisions against the expectations through organized and systematic feedback”.
Planning is long-visionary and describes an organization’s direction. It is a systematic way of making decisions today that will affect the future of the company.
Planning helps to clear the objectives timely and smoothly. It involves choosing objectives and strategies for achieving them.
It is performed by various levels of managers of an organization because planning may either be for the whole company or for any department thereof.
There are some types of planning:
- Strategic planning
- Tactical planning
- Operational planning
Importance of Planning:
Planning increases the possibility of success of a company. All companies would like to be successful with goodwill, higher profit in the competitive market. Planning makes it easier.
Now let’s understand the importance of planning to the organization.
1. Increase efficiency: Planning helps to overcome the distraction which increases wastage of time and avoids the reputation of activities.
2. Proper direction: If you direct an organization then you have given the proper information, appropriate instructions, and guideline to the employees. It clears three basic questions, what, how, and when to do.
3. Reduces business-related threads: Planning helps to take necessary precautions to avoid future risks or threads.
4. Encourages creativity and innovation.
5. Helps in decision making.
6. Achieve objectives etc.
7. Deciding in advance what to do, how to do, who has to do, when to do and where to do.
8. Planning bridges the gap from where we are now to where we want is in future.
After planning the next vital function of management is organizing. Organization entangles the fission of activates among staff and employees whose actions must be helped to crack the appointed goals of the enterprise and to implement the pre-planned strategies.
It is the backbone of managerial system of an organization.
Louis Allen has defined organizing as follows:
“Organising is the process of identifying and grouping the work to be performed defining and delegating responsibility and authority, and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.”
The basic concept of organizing is the path in which the activities of a group of people is prepared and divided among the individual group member and how resources will assemble.
The main purpose of organizing is helped to build an atmosphere for the best human performance.
Importance of Organizing:
These points reveal the important role on organizing of an organization.
1. Coordinates and Communicates: Organizing creates a good relationship between the enterprise and employees which helps to accomplish the company’s objectives.
2. Growth and Diversification: It helps to grow and expand the whole organization and also helps to undertake more activities.
3. Optimum use of resource and technological innovations: It commands to the optimum use of all material, finance, human capital. It is too flexible and provides a perfect scope acceptance of new innovative technology.
4. Determination of activities required to achieve goals.
5. Grouping these activities into department.
6. Assigning such groups of activities to managers.
7. Forming delegation of authority.
Steve Jobs says that the first 10 people of the company make a business successful.
According to a successful businessman, staffing is one of the most important and hardest process in the functions of management.
It is important to fill the company with the right person because it creates the whole environment of an organization.
If you start a start-up, later you are not doing everything of it. So you have to think about filling the right person for the right place in the staffing phase. All levels of managers have accountable for staffing or hiring.
It trades with the human capital of an organization.
According to Koontz and O’Donnell,
“Staffing involves manning the organization structure through proper and effective selection appraisal and development of personal to fill the roles designed into the structure.”
It determines filling the positions, identifying the needs of manpower, and training employees because the assigned activities are completed timely and smoothly.
Staffing has some sub-managerial functions such as promotion, dismissal, discharge, transfer, other leaves, etc.
Importance of Staffing:
Staffing is focused on human resources. It is very important because managers are not doing everything; they are only directing the workers but the main work is done by the staffs and employees of an organization.
1. Finding the right person for the right place: It discovers a talented and efficient person for the right place of an enterprise.
2. Helps in training, and developing a new skill: It develops the workers’ productivity, and efficiency by training and developing new skills for present and future jobs.
3. Maintains Harmony: Staffing helps to maintain organizational harmony. It gives everyone an equal chance for better promotion, a placement which helps to get peace and harmony.
4. Selecting the personnel.
5. Creating new positions.
6. Apprising the staff and planning their growth and promotions etc.
Directing begins with organized actions and motivating people to work-force. It is giving out orders, instructions, directing, and motivating the sub-ordinates to fulfill them.
Directing is the inner perspective of management functions which involves presently guiding, supervising, and motiving the people for the accomplishment of pre-planned incentives.
According to Koontz and O’donnell,
“Direction is the interpersonal aspect of managing by which subordinates are led to understand and contribute effectively and efficiently to the attainment of enterprise objectives.”
Planning, organizing, staffing help to prepare for taking actions, but the implementation of the work in the practical world depends on directing functions.
The managers are mentoring the actions of employees, and if something is wrong then they give directions through planned objectives and also the current situations to achieve the desired actions and results.
Importance of Directing:
Directing is one of the most tangle functions of management. You are a master in directing after a long experience. It has many benefits to a company which are –
1. Motivating the workers: Presently directing helps to guide, supervise, and motivate the people for the accomplishment of pre-planned incentives.
2. Creating a work environment: It creates an atmosphere of knowing where people work with their maximum capacity to complete the organizational goals.
3. Mentoring the actions of employees.
All other functions of management can’t be accomplished without performance control. It helps to achieve against the value of dislocation, and achievement of organizational goals.
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.”
It ensures the perfect utilization of the factors of production (land, labor, and capital) which helps to achieves the pre-planned goals and objectives. It has two primary purposes: (1) simplify coordination, (2) support in planning.
Importance of Controlling:
A proper controlling system helps to accomplish organizational goals effectively and efficiently. This has a lot of importance to an enterprise.
1. Foundation of future action: Controlling clears the foundation of future action.
2. Make discipline and order: Discipline is the only way to achieve and sustain success. Controlling makes organization discipline.
3. Establishing standards of performance.
4. Measuring performance and comparing with established standards.
5. Taking necessary corrective action to meet the set standards.
All these five key functions of management are closely correlative. But depending on the types and stage on an organizational level, the time and labor spent in each function will vary.
What did you think of this? Do I miss something? Come on! Let us know if you want to add something to the list.
Functions of Management FAQ:
At the basic fundamental level, management is an order that forms of a set of five general functions: Planning, Organizing, Staffing, Directing, and Controlling.
Controlling may be the most important of the five management functions. Its system helps to accomplish organizational goals effectively and efficiently.