What are the Functions of Management?
MANAGEMENT
"Management is simply the process of decision making and control over the action of human beings for the express purpose of attaining pre-determined goals”.
FUNCTIONS OF MANAGEMENT
Regardless of the type of the industry, the functions involved in an organization, or the organizational level at which one functions; every manager has to perform certain basic managerial functions.
KOONTZ AND O’DONNELL explained five functions of management. They have become widely accepted functions of management everywhere. They are:-
PLANNING
Planning is deciding in advance what is to be done. When it is to be done. How it is to be done. It is basically concern with the selection of goals to be achieved and determining the effective course of action from among the various alternatives. This involves forecasting. Establishing targets, developing the policies and programming and scheduling the action. Procedure, etc. thus, planning requires decisions to be made on what should be done. How it should be done. Who will do it? Where it will be done. And why it is to be done. The essential part of planning consists of setting goals and performing activities.
DEFINITION: “planning bridges the gap from where we are to where we want to go. It makes it possible for things to occur which would not otherwise happen”.
TYPES OF PLANNING
CORPORATE PLANNING
Planning at the top level also known as corporate level which covers the entire organizational activities. Long term objectives it is also used as synonymous to long term planning or strategic planning.
STRATEGIC PLANNING
It sets long term direction of organizations in which it wants to proceed is external to the environment, time period 3-5 years, and formulated at the top level of management.
OPERATIONAL PLANNING
It is also known as tactical planning or short planning usually covers 1 year. It basically includes day to day operations. Its focuses on internal organizations and formulated at a middle and lower level of management.
RELATED TOPIC: TECHNIQUES OF DECISION MAKING IN MANAGEMENT
IMPORTANCE AND PURPOSE OF PLANNING
PLANNING PROVIDE DIRECTION:
Planning provides a clear sense of direction and purpose of activities of an organization.
PLANING MINIMIZES RISK AND UNCERTAINTY:
In fast-changing organizations, planning based on hard facts and data helps the manager to reduce risk and uncertainties.
PLANNING ENSURES CO-ORDINATION:
Planning helps to establish co-ordinated efforts from various divisions, departments, and people.
PLANNING LEADS TO ECONOMY:
Planning helps accomplish an optimal utilization of physical and human resources, leading towards cost reduction, higher efficiency, and productivity which lead to a better economy.
PLANNING FACILITATES DECISION-MAKING:
Planning helps in providing guidelines and thus facilitate decision-making.
PLANNING REDUCES OVERLAPPING AND WASTAGE OF EFFORTS:
Planning avoids duplication of efforts, and overlapping of tasks and responsibilities, reducing wastage.
PLANNING ENCOURAGES INNOVATION AND CREATIVITY:
Planning helps to remain competitive. Innovation and creativity are like ‘trump card’ in a competitive world.
PLANNING FACILITIES CONTROL:
Control is key to the success of any organization, and in order to control there has to be a plan.
ORGANIZING
Division of work into functions and sub-functions, grouping of activities that are closely related in their nature, assigning of duties and responsibilities to the employees and finally delegation of authority and power to each employee or the group to discharge their duties accordingly are the processes come under the function of management organizing.
DEFINITION: “organizing is the process of identifying and grouping of the works to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most efficiently”.
NATURE OF ORGANIZING
GROUP OF PERSONS:
An organization is a group of people working together for the achievement of common objectives. The group may be large or small. An organization is a system of cooperative relationships between two or more persons.
COMMON OBJECTIVES:
Every organization has a common objective distinct from the personal objectives of the members. The common goals are the basis of cooperation among the members. The objectives of the organization are usually are made explicit.
DIVISION OF WORK:
An organization comes into existence when the total task is divided into the members of the group. Division of work is necessary not only because one individual cannot do all the work but specialization results in efficiency and effectiveness.
COOPERATIVE EFFORTS:
The members of an organization are willing to help each other for the achievement of desired goals. Cooperative relationships are stabilized both vertically and horizontally among different units of the organization.
COMMUNICATION:
People who form an organization communicate with each other in order to integrate or coordinate their efforts. The structure must be such that people can perform together efficiently.
CENTRAL AUTHORITY:
In any organization, there is a central directing authority which controls the concerted efforts of the group. The chain of authority- responsibility relationships is known as the chain of command.
RULES AND REGULATION:
For the orderly and systematic working of the members, rules and regulations are laid down and enforced by the central authority.
THE DYNAMIC ELEMENT:
An organization is not a mere mechanical structure but a living organism arising out of the sentiments, attitudes, and behavior of people. The people are the material of construction that holds the structure together and gives it vitality.
ALSO READ: MANAGEMENT BY OBJECTIVES (MBO)
STAFFING
Staffing is concerned with employing people for the various activities to be performed. The objective of staffing is to ensure that suitable people have been appointed for different positions. It includes the functions of recruitment, training and development. Placement and remuneration. And performance appraisal of the employees.
DEFINITION: “staffing is the function by which managers build an organization through recruitment, selection, and development of individuals as capable employees”
DIRECTING
Directing is nothing but guiding and leading the people in an organization. It is not just giving instructions by a superior to the sub-ordinates but also is a process of supervising, guiding, and motivating the latter to achieve the organizational goals.
DEFINITION: “activating deals with the steps a manager takes to get sub-ordinates and others to carry out plans”.
CONTROLLING
It is the process that ensures whether the resources are obtained and used efficiently in achieving the organizational objectives.
DEFINITION: “controlling is determining what is being accomplished – that is, evaluating performance and, if necessary, applying corrective measures so that performance takes place according to plans”.
