Management Functions

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Management in all business areas and organizational activities are the acts of getting people together to accomplish desired goals and objectives efficiently and effectively. Management comprises planning , organizing , staffing , leading or directing, and controlling anorganization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources , financial resources, technological resources, and natural resources . Because organizations can be viewed as systems , management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. This view opens the opportunity to 'manage' oneself, a pre-requisite to attempting to manage others Management can also refer to the person or people who perform the act(s) of management. Contents [hide ] 1 History o 1.1 Theoretical scope o 1.2 Nature of managerial work 2 Historical development o 2.1 Early writing 2.1.1 Sun Tzu's The Art of War 2.1.2 Niccolò Machiavelli's The Prince 2.1.3 Adam Smith's The Wealth of Nations o 2.2 19th century o 2.3 20th century o 2.4 21st century 3 Management topics o 3.1 Basic functions of management

Transcript of Management Functions

Page 1: Management Functions

Management in all business areas and organizational activities are the acts of getting people

together to accomplish desired goals and objectives efficiently and effectively. Management

comprises planning, organizing, staffing, leading or directing, and controlling anorganization (a

group of one or more people or entities) or effort for the purpose of accomplishing a

goal. Resourcing encompasses the deployment and manipulation of human

resources, financial resources, technological resources, and natural resources.

Because organizations can be viewed as systems, management can also be defined as human

action, including design, to facilitate the production of useful outcomes from a system. This view

opens the opportunity to 'manage' oneself, a pre-requisite to attempting to manage others

Management can also refer to the person or people who perform the act(s) of management.

Contents

 [hide]

1 History

o 1.1 Theoretical scope

o 1.2 Nature of managerial work

2 Historical development

o 2.1 Early writing

2.1.1 Sun Tzu's The Art of War

2.1.2 Niccolò Machiavelli's The Prince

2.1.3 Adam Smith's The Wealth of Nations

o 2.2 19th century

o 2.3 20th century

o 2.4 21st century

3 Management topics

o 3.1 Basic functions of management

o 3.2 Formation of the business policy

3.2.1 How to implement policies and strategies

3.2.2 Where policies and strategies fit into the planning process

o 3.3 Multi-divisional management hierarchy

4 Areas and categories and implementations of management

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5 See also

6 References

7 External links

[edit]History

The verb manage comes from the Italian maneggiare (to handle — especially tools), which in

turn derives from the Latin manus (hand). The French word mesnagement (later ménagement)

influenced the development in meaning of the English word management in the 17th and 18th

centuries.[1]

Some definitions of management are:

Organization and coordination of the activities of an enterprise in accordance with certain

policies and in achievement of clearly defined objectives. Management is often included as a

factor of production along with machines, materials, and money. According to the

management guru Peter Drucker (1909–2005), the basic task of a management is

twofold: marketing and innovation.

Directors and managers who have the power and responsibility to make decisions to manage

an enterprise. As a discipline, management comprises the interlocking functions of

formulating corporate policy and organizing, planning, controlling, and directing the firm's

resources to achieve the policy's objectives. The size of management can range from one

person in a small firm to hundreds or thousands of managers in multinational companies. In

large firms the board of directors formulates the policy which is implemented by the chief

executive officer.[edit]Theoretical scope

Mary Parker Follett (1868–1933), who wrote on the topic in the early twentieth century, defined

management as "the art of getting things done through people". She also described management

as philosophy.[2] One can also think of management functionally, as the action of measuring a

quantity on a regular basis and of adjusting some initial plan; or as the actions taken to reach

one's intended goal. This applies even in situations where planning does not take place. From this

perspective, Frenchman Henri Fayol [3]  considers management to consist of seven functions:

Some people, however, find this definition, while useful, far too narrow. The phrase

"management is what managers do" occurs widely, suggesting the difficulty of defining

management, the shifting nature of definitions, and the connection of managerial practices with

the existence of a managerial cadre or class.

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One habit of thought regards management as equivalent to "business administration" and thus

excludes management in places outsidecommerce, as for example in charities and in the public

sector. More realistically, however, every organization must manage its work, people, processes,

technology, etc. in order to maximize its effectiveness. Nonetheless, many people refer to

university departments which teach management as "business schools." Some institutions (such

as the Harvard Business School) use that name while others (such as the Yale School of

Management) employ the more inclusive term "management."

English speakers may also use the term "management" or "the management" as a collective word

describing the managers of an organization, for example of a corporation. Historically this use of

the term was often contrasted with the term "Labor" referring to those being managed.

[edit]Nature of managerial work

In for-profit work, management has as its primary function the satisfaction of a range

of stakeholders. This typically involves making a profit (for the shareholders), creating valued

products at a reasonable cost (for customers), and providing rewarding employment

opportunities (for employees). In nonprofit management, add the importance of keeping the faith

of donors. In most models of management/governance, shareholders vote for the board of

directors, and the board then hires senior management. Some organizations have experimented

with other methods (such as employee-voting models) of selecting or reviewing managers; but

this occurs only very rarely.

In the public sector of countries constituted as representative democracies, voters elect

politicians to public office. Such politicians hire many managers and administrators, and in some

countries like the United States political appointees lose their jobs on the election of a new

president/governor/mayor.

[edit]Historical development

Difficulties arise in tracing the history of management. Some see it (by definition) as a late

modern (in the sense of late modernity) conceptualization. On those terms it cannot have a pre-

modern history, only harbingers (such as stewards). Others, however, detect management-like-

thought back to Sumerian traders and to the builders of the pyramids of ancient Egypt. Slave-

owners through the centuries faced the problems of exploiting/motivating a dependent but

sometimes unenthusiastic or recalcitrant workforce, but many pre-industrialenterprises, given

their small scale, did not feel compelled to face the issues of management systematically.

However, innovations such as the spread of Arabic numerals (5th to 15th centuries) and the

codification of double-entry book-keeping (1494) provided tools for management assessment,

planning and control.

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Given the scale of most commercial operations and the lack of mechanized record-keeping and

recording before the industrial revolution, it made sense for most owners of enterprises in those

times to carry out management functions by and for themselves. But with growing size and

complexity of organizations, the split between owners (individuals, industrial dynasties or groups

of shareholders) and day-to-day managers (independent specialists in planning and control)

gradually became more common.

[edit]Early writing

While management has been present for millennia, several writers have created a background of

works that assisted in modern management theories.[4]

[edit]Sun Tzu's The Art of War

Written by Chinese general Sun Tzu in the 6th century BC, The Art of War is a military strategy

book that, for managerial purposes, recommends being aware of and acting on strengths and

weaknesses of both a manager's organization and a foe's.[4]

[edit]Niccolò Machiavelli's The Prince

Believing that people were motivated by self-interest, Niccolò Machiavelli wrote The Prince in

1513 as advice for the leadership of Florence, Italy.[5] Machiavelli recommended that leaders use

fear—but not hatred—to maintain control.

[edit]Adam Smith's The Wealth of Nations

Written in 1776 by Adam Smith, a Scottish moral philosopher, The Wealth of Nations aims for

efficient organization of work throughSpecialization of labor.[5] Smith described how changes in

processes could boost productivity in the manufacture of pins. While individuals could produce

200 pins per day, Smith analyzed the steps involved in manufacture and, with 10 specialists,

enabled production of 48,000 pins per day.[5]

[edit]19th century

Classical economists such as Adam Smith (1723–1790) and John Stuart Mill (1806–1873)

provided a theoretical background to resource-allocation, production, and pricing issues. About

the same time, innovators like Eli Whitney (1765–1825), James Watt (1736–1819), andMatthew

Boulton (1728–1809) developed elements of technical production such

as standardization, quality-control procedures, cost-accounting, interchangeability of parts,

and work-planning. Many of these aspects of management existed in the pre-1861 slave-based

sector of the US economy. That environment saw 4 million people, as the contemporary usages

had it, "managed" in profitable quasi-mass production.

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By the late 19th century, marginal economists Alfred Marshall (1842–1924), Léon

Walras (1834–1910), and others introduced a new layer of complexity to the theoretical

underpinnings of management. Joseph Wharton offered the first tertiary-level course in

management in 1881.

[edit]20th century

By about 1900 one finds managers trying to place their theories on what they regarded as a

thoroughly scientific basis (see scientism for perceived limitations of this belief). Examples

include Henry R. Towne's Science of management in the 1890s, Frederick Winslow Taylor'sThe

Principles of Scientific Management (1911), Frank and Lillian Gilbreth's Applied motion

study (1917), and Henry L. Gantt's charts (1910s). J. Duncan wrote the

first college management textbook in 1911. In 1912 Yoichi

Ueno introduced Taylorism to Japan and became first management consultant of the "Japanese-

management style". His son Ichiro Ueno pioneered Japanese quality assurance.

The first comprehensive theories of management appeared around 1920. The Harvard Business

School invented the Master of Business Administration degree (MBA) in 1921. People

like Henri Fayol (1841–1925) and Alexander Church described the various branches of

management and their inter-relationships. In the early 20th century, people like Ordway Tead

(1891–1973), Walter Scott and J. Mooney applied the principles of psychology to management,

while other writers, such as Elton Mayo (1880–1949), Mary Parker Follett (1868–1933),Chester

Barnard (1886–1961), Max Weber (1864–1920), Rensis Likert (1903–1981), and Chris

Argyris (1923 - ) approached the phenomenon of management from a sociological perspective.

Peter Drucker (1909–2005) wrote one of the earliest books on applied management: Concept of

the Corporation (published in 1946). It resulted from Alfred Sloan (chairman of General

Motors until 1956) commissioning a study of the organisation. Drucker went on to write 39

books, many in the same vein.

H. Dodge, Ronald Fisher (1890–1962), and Thornton C. Fry introduced statistical techniques

into management-studies. In the 1940s, Patrick Blackett combined these statistical theories

with microeconomic theory and gave birth to the science of operations research. Operations

research, sometimes known as "management science" (but distinct from Taylor's scientific

management), attempts to take a scientificapproach to solving management problems,

particularly in the areas of logistics and operations.

Some of the more recent developments include the Theory of Constraints, management by

objectives, reengineering, Six Sigma and variousinformation-technology-driven theories such

as agile software development, as well as group management theories such as Cog's Ladder.

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As the general recognition of managers as a class solidified during the 20th century and gave

perceived practitioners of the art/science of management a certain amount of prestige, so the way

opened for popularised systems of management ideas to peddle their wares. In this context

many management fads may have had more to do with pop psychology than with scientific

theories of management.

Towards the end of the 20th century, business management came to consist of six separate

branches, namely:

Human resource  management

Operations management  or production management

Strategic management

Marketing management

Financial management

Information technology management  responsible for management information systems[edit]21st century

In the 21st century observers find it increasingly difficult to subdivide management into

functional categories in this way. More and more processes simultaneously involve several

categories. Instead, one tends to think in terms of the various processes, tasks, and objects

subject to management.

Branches of management theory also exist relating to nonprofits and to government: such

as public administration, public management, and educational management. Further,

management programs related to civil-society organizations have also spawned programs

in nonprofit management and social entrepreneurship.

Note that many of the assumptions made by management have come under attack from business

ethics viewpoints, critical management studies, and anti-corporate activism.

As one consequence, workplace democracy has become both more common, and more

advocated, in some places distributing all management functions among the workers, each of

whom takes on a portion of the work. However, these models predate any current political issue,

and may occur more naturally than does a command hierarchy. All management to some degree

embraces democratic principles in that in the long term workers must give majority support to

management; otherwise they leave to find other work, or go on strike. Despite the move toward

workplace democracy, command-and-control organization structures remain commonplace and

the de facto organization structure. Indeed, the entrenched nature of command-and-control can

be seen in the way that recent layoffs have been conducted with management ranks affected far

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less than employees at the lower levels of organizations. In some cases, management has even

rewarded itself with bonuses when lower level employees have been laid off.[6]

[edit]Management topics

[edit]Basic functions of management

Management operates through various functions, often classified as planning, organizing,

leading/directing, and controlling/monitoring.

Planning: Deciding what needs to happen in the future (today, next week, next month, next

year, over the next 5 years, etc.) and generating plans for action.

Organizing: (Implementation) making optimum use of the resources required to enable the

successful carrying out of plans.

Staffing: Job Analyzing, recruitment, and hiring individuals for appropriate jobs.

Leading/Directing: Determining what needs to be done in a situation and getting people to

do it.

Controlling/Monitoring: Checking progress against plans.

Motivation : Motivation is also a kind of basic function of management, because without

motivation, employees cannot work effectively. If motivation doesn't takes place in an

organization, then employees may not contribute to the other functions (which are usually set

by top level management).[edit]Formation of the business policy

The mission of the business is the most obvious purpose—which may be, for example, to

make soap.

The vision of the business reflects its aspirations and specifies its intended direction or future

destination.

The objectives of the business refers to the ends or activity at which a certain task is aimed.

The business's policy is a guide that stipulates rules, regulations and objectives, and may be

used in the managers' decision-making. It must be flexible and easily interpreted and

understood by all employees.

The business's strategy refers to the coordinated plan of action that it is going to take, as well

as the resources that it will use, to realize its vision and long-term objectives. It is a guideline

to managers, stipulating how they ought to allocate and utilize the factors of production to the

business's advantage. Initially, it could help the managers decide on what type of business

they want to form.[edit]How to implement policies and strategies

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All policies and strategies must be discussed with all managerial personnel and staff.

Managers must understand where and how they can implement their policies and strategies.

A plan of action must be devised for each department.

Policies and strategies must be reviewed regularly.

Contingency plans must be devised in case the environment changes.

Assessments of progress ought to be carried out regularly by top-level managers.

A good environment and team spirit is required within the business.

The missions, objectives, strengths and weaknesses of each department must be analysed to

determine their roles in achieving the business's mission.

The forecasting method develops a reliable picture of the business's future environment.

A planning unit must be created to ensure that all plans are consistent and that policies and

strategies are aimed at achieving the same mission and objectives.

All policies must be discussed with all managerial personnel and staff that is required in the

execution of any departmental policy.

Organizational change is strategically achieved through the implementation of the eight-step

plan of action established by John P. Kotter: Increase urgency, get the vision right,

communicate the buy-in, empower action, create short-term wins, don't let up, and make

change stick.

[7]

[edit]Where policies and strategies fit into the planning process

They give mid- and lower-level managers a good idea of the future plans for each department

in an organization.

A framework is created whereby plans and decisions are made.

Mid- and lower-level management may add their own plans to the business's strategic ones.[edit]Multi-divisional management hierarchy

The management of a large organization may have about five levels:

1. Senior management  (or "top management" or "upper management")

2. Middle management

3. Low-level management, such as supervisors or team-leaders

4. Foreman

5. Rank and FileTop-level management

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Require an extensive knowledge of management roles and skills.

They have to be very aware of external factors such as markets.

Their decisions are generally of a long-term nature

Their decisions are made using analytic, directive, conceptual and/or behavioral/participative

processes

They are responsible for strategic decisions.

They have to chalk out the plan and see that plan may be effective in the future.

They are executive in nature.Middle management

Mid-level managers have a specialized understanding of certain managerial tasks.

They are responsible for carrying out the decisions made by top-level management.

finance,marketing etc are comes under middle level managementLower management

This level of management ensures that the decisions and plans taken by the other two are

carried out.

Lower-level managers' decisions are generally short-term ones.Foreman / lead hand

They are people who have direct supervision over the working force in office factory, sales

field or other workgroup or areas of activity.Rank and File

The responsibilities of the persons belonging to this group are even more restricted and more

specific than those of the foreman

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Management functions

There are many different activities that mangers perform into a few conceptual categories that are now called as management function. There are six management functions, they are. Ø Planning Ø Organizing Ø Coordinating Ø Staffing Ø Directing Ø Controlling

PlanningIn this function it establishes goals and objectives to pursue during a future period. The planning function spans all levels of management. Top managers are involved in strategic planning that sets board, long-range goals for an organization. These goals become the basis for short-range, annual operational planning; during which top and middle managers determine specific departmental objectives that will help the organization makes progress toward the broader, long-range goals.

OrganizingIn this function it typically follows planning and reflects how the organization tries to accomplish its goals and objectives. In relation to the structure of a company, organizing involves the assignment of tasks, the grouping of tasks into departments and the allocation of resources to departments. Organizing also involves establishing the flow of authority and communication between position and levels within the organization. Top manager performs these activities. Like wise middle manager and supervisors organize the tasks to create positions within their departments. Job analysis and job design activities are organizing function.

CoordinatingIn this function coordinating refers to management activities related to achieving an efficient use of resources to attain the organization's goals and objectives.

StaffingIn this function staffing refers to the fundamental cycle of human resources activities, determining human resource needs, and recruiting, selecting, hiring, training, and developing staff members.

DirectingIn this function directing is also referred to as leading, it involves influencing division, departments, and individual staff members to accomplish the organization's goals and objectives.

ControllingIn this function manager performing the controlling management function translate organizational goals and objectives into performance standards for divisions, department and

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individual position. Controlling also involves assessing actual performance against standards to determine whether the organization is on target to reach its goals and taking corrective actions as necessary. Managers practicing the evaluative component of controlling assess how well the organization has achieved its objectives. 

Major Functions of Management (and areas of knowledge and skills in each)

Major Function -- PlanningMajor Function -- Organizing Major Function -- Leading Major Function -- Coordinating/Controlling

Nonprofit-Specific Areas of Knowledge and Skills

Nonprofit-Specific Skills

General Resources

Various Other Perspectives

About the Following Categorization of Skills and Practices

Areas of skills and practices are categorized according to the four major functions of management, including planning, organizing, leading and coordinating. Introductory texts in management often organize their topics according to the same or similar categorization.

However, the four functions are actually highly integrated when carried out in the day-to-day realities of running an organization. Therefore, the reader should not get caught up in trying to closely analyze and understand complete, clear rationale for the categorization of the skills and practices.

In addition, various experts would disagree on what skills and practices should be required for basic, entry level management. However, those listed below typically occur in workshops and seminars focused on entry-level management skills.

Managing Yourself

(Also see the section About the Following Categorization of Skills and Practices included above.)

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Basics

Basics for New Managers and Supervisors to Management Themselves

Also Consider

Emotional Intelligence (managing your emotions)Organizing Yourself (this subtopic is in "Personal Productivity")Time ManagementWork-Life BalanceCareer Development (resumes, networking, interviewing, etc.)Leading Yourself (career & and personal development, personal productivity & wellness)

Basic, Entry-Level Management Skills in Organizations

Various experts would disagree on what skills and practices should be required for basic, entry level management. However, those listed below typically occur in workshops and seminars focused on entry-level management skills. (Also see the section About the Following Categorization of Skills and Practicesincluded above.)

Basics

Decision MakingDelegatingPlanning -- Basic ProcessProblem SolvingMeeting Management

Also see:

Core Competencies for Leading (problem solving, decision making, planning and influencing)

Also Consider

Basic Guide to Management and Supervision

Major Function: Planning

Simply put, planning is selecting priorities and results (goals, objectives, etc.) and how those results will achieved. Planning typically includes identifying goals, objectives, methods, resources needed to carry out methods, responsibilities and dates for completion of tasks. Examples of planning are strategic planning, business planning, project planning, staffing

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planning, advertising and promotions planning, etc. (Also see the section About the Following Categorization of Skills and Practices included above.)

Basics

Decision Making -- selecting the best course of actionPlanning -- Basics (establishing goals and how they will be reached)Problem Solving (analyzing alternatives and selecting a course of action)

Various Kinds of Plans

major types of planning:- business planning- basics- management by objectives- program planning- project planning- strategic planning (vision, mission, etc.)

various other types of planning:- - - advertising and promotions planning- - - disaster planning- - - career planning- - - communications plan (external)- - - communications plan (internal)

various other types of planning (cont.)- - - computer system planning- - - feasibility for new business or program- - - fundraising planning (nonprofit)- - - fundraising (for-profits)- - - leadership development planning- - - management development planning- - - marketing planning- - - performance planning (generic)- - - performance improvement plans (generic)- - - program planning- - - research design planning- - - staffing planning- - - supervisoral development planning- - - training and development planning

Major Function: Organizing

Simply put, organizing is allocating and configuring resources to accomplish the preferred goals and objectives establishing during the planning processes. (Also see the section About the Following Categorization of Skills and Practices included above.)

Various Kinds of Organizing

Organizing Yourself (your office, files, etc.)Organizing / Designing Tasks, Jobs or RolesOrganizing StaffOrganizing Various Types of GroupsOrganizing Communities (typically a nonprofit goal)

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Organizing a New Business (whether for-profit or nonprofit)Guidelines to Reorganize a Current Organization

Human Resources Management

BenefitsCompensationStaffing (planning, specifying, sourcing, selecting, etc.)Training and Development

Facilities

Computers, Internet and WebFacilities Management

Major Function: Leading

Simply put, leading is establishing direction and influencing people to follow that direction. (Also see the section About the Following Categorization of Skills and Practices included above.)

Basics

Core Competencies for Leading (problem solving, decision making, planning and influencing)

Leading Yourself

Leading Yourself (career & and personal development, personal productivity & wellness)

Leading Other Individuals

Leading Individuals (setting goals, methods of influence, building trust, managing conflict, etc.)

Leading Groups and Organizations

Leading Groups (facilitation, meeting management, group problem solving, managing conflict, etc.)Leading Organizations (strategic analysis, strategic direction, org'l communications, etc.)

Major Function: Coordinating/Controlling Resources and Processes

Simply put, coordinating is monitoring and adjusting resources and processes to achieve goals and objectives in a highly effective and efficient fashion. (Also see the section About the Following Categorization of Skills and Practices included above.)

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Feedback Mechanisms

Evaluations (many kinds)

Financial Management

Finances (For-Profit)Finances (Nonprofit)

Groups

Group Performance Management

Legal and Taxation Compliance

Employee Laws, Issues, Topics, etc. Taxation

Operations

Operations Management

Organizational Performance

Organizational Performance Management (balanced scorecard, TQM, etc.)

Personnel

Employee Laws, Topics and Issues (understanding major laws and regulations)Employee Performance Management (setting goals, feedback, performance reviews, etc.)Ethics Management in the Workplace (ensuring highly ethical standards and behaviors)Personnel Polices (ensuring compliance to legal and organizational rules and regulations)Supervision (personnel policies, employee performance management, training, etc.)

Processes

Quality Management (quality control, benchmarking, continuous improvement, etc.)

Risk, Safety and Liabilities

Crisis ManagementEmployee Wellness Programs (diversity management, safety, ergonomics, etc.)InsuranceRisk Management

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Nonprofit-Specific Areas of Skills and Practices

The following areas of skills and practices are somewhat unique to the needs of a nonprofit management and governance.

Fundraising and Grantwriting (nonprofit)Governance (Boards of Directors)Nonprofit Budgeting and AccountingNonprofit Program Development and EvaluationPublic Policy (Nonprofit Area)Volunteer Programs (typically a nonprofit concern)

Links to Various Other Perspectives

Numerous Articles With Suggestions

Various Suggestions for Knowledge and Skills Needed by Management

Managerial Skills

Role of Managers under Different Styles of ManagementSix Important Managerial Skills for Successful LeadershipDefinition of Management

Various Perspectives

Guide to Management ResourcesISPSO Paper: Gabriel - The Hubris of ManagementFunctional Areas of a BusinessThe Power of Words in Business and Management

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

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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:

Identification of activities.

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Classification of grouping of activities. Assignment of duties. Delegation of authority and creation of responsibility. 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 o 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 un the structure”. Staffing involves:

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

Recruitment, selection & placement. Training & development. Remuneration. Performance appraisal. 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:

Supervision Motivation Leadership 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.

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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.