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Project management

The four functions of management: Overview + examples

Being or becoming a manager can feel like a daunting task in today’s business world. But if you look closely, everything a manager does falls under four key functions:

Planning functions

Organizing functions

Leading functions

Controlling functions

While we can’t solve all the growing pains you face, we have some great news: No matter your industry or your level of management, you’ll perform this same set of functions. They may look different as a first-tier manager than they do as a CEO, and the problems within those functions vary endlessly.

But master each of these, and you’ll be well on your way to conquering nearly any business challenge.

A breakdown of the four functions of management

Let’s look more closely at each of the four functions — and the ways that effective managers leverage this framework to better meet their organization’s goals.

1) Planning

"Without a plan, even the most brilliant business can get lost. You need to have goals, create milestones, and have the right strategy in place to set yourself up for success." ~ Yogi Berra

Managers are responsible for the long-range vision and goals within a company. The planning function includes this vision and goal-setting along with the work of creating a plan to reach those goals. They identify business challenges, work on future-facing initiatives (such as growth plans, company goals, and business forecasting) and make decisions that move the business toward goals.

Another element of the planning phase of management is resource allocation or workload management . Typically, the manager decides which employees in the department are assigned to which projects, seeking to balance workload and maintain efficiency through this work. Managers often enlist the help of project managers ( a vital role for businesses across many industries) to determine workload and capacity. Or, in some cases where there is no formal project manager, managers may use project management tools themselves to fill this role.

Planning is essential within any organization, and it’s an important part of the management role for a few reasons. First, the rank-and-file employees are usually too busy completing tasks to step back and think strategically about the big picture. Second, people management tend to get there precisely because they have above-average decision-making, leadership, and planning skills.

Managers are typically responsible for several types of planning within an organization:

Strategic planning

The highest and most crucial level of planning looks at the long-range, big-picture view of the company. It identifies future threats and opportunities and sets long-term direction and organizational goals. Strategic planning isn’t concerned with day-to-day decisions and is looking instead at three-year plans, five-year plans, market trajectories, and similar big-picture elements.

In most organizations, top management does the bulk of the strategic planning. CEOs and other top-ranking leaders may rely on input from mid-level managers and will certainly inform them of the strategic plans, but most decisions here are made by the people in charge.

Tactical planning

Tactical planning looks at how to accomplish more midrange or short-term objectives — usually those that last a year or less. Tactical planning is more targeted than strategic planning and is informed by the strategic plan, setting a general course of action that will be fleshed out further in operational planning.

Middle managers usually complete tactical planning, taking the strategic plan and breaking down the high-level goals within it into smaller, more measurable and near-term achievable goals.

Tactical planning is more granular than strategic planning, but it still doesn’t delve into the details of day-to-day operations.

Operational planning

Operational planning, on the other hand, is all about those day-to-day operations — seeking to use the principles and strategies laid out in tactical plans to accomplish the big-picture goals in the strategic plan. Department managers, first-level leaders, and project managers often contribute to operational planning.

Weekly project team meetings are one example of operational planning in action. Project schedules, timelines, RACI charts , swimlanes, and Gantt charts are all tools used within operational planning.

2) Organizing

Next up is the organizing function, which refers to the way managers distribute resources, delegate tasks, structure departments, set staffing levels, etc. This function encompasses everything from assigning right-fit tasks to the appropriate team members to deciding how those team members relate to each other in an organizational structure .

If your company is growing rapidly, you’ll need more sales agents next year than you do this year (and more of just about every other role, too). At some point, even the structures and departments you have now will no longer make sense: you’ll need more managers to oversee those new hires, and you might need new divisions that wouldn’t have been feasible when you were smaller.

All of this takes careful organization from someone in a leadership role — which is why organizing is the second function of management.

Example of organizing functions

Managers have ongoing responsibilities to rebalance workload and even headcount as they respond to changes in the business landscape. Just 20 years ago, most marketing departments were doing little (if any) digital marketing, let alone content marketing or SEO. Today those areas comprise the majority of business for many marketing departments and agencies. And that same story plays out across numerous departments, roles, and business units.

Managers must keep jobs, job hierarchies, and resource allocation organized and appropriate for the business landscape of today — with an eye toward future needs and further changes.

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Every organization, from creative agencies to enterprise operations, needs a force to drive it forward: rallying the troops and pushing them toward a common goal. Move down through the layers of a business and you’ll find a similar need for teams, projects, departments, and any other organizational or work structure that’s in place.

This is the leading or leadership function of management — a crucial part of every manager’s job.

The leading function of management focuses on people (whether individual, teams, or groups) more than work tasks. That’s not to say that tasks don’t matter, but rather, how those people are or aren’t handling their tasks and responsibilities will influence the type of leadership response that managers ought to give.

Managers and business leaders provide both direction and inspiration to those who follow them. This can take all sorts of forms:

Instructing

Encouraging or praising

Redirecting

Demanding or commanding

Additionally, leadership includes both people management and making the tough right calls that others might miss.

There are many approaches to leadership in management, each with its own pros and cons. And it’s important to understand that there is no one right style — successful managers skillfully move between approaches, as each has its uses.

We’ll use the situational leadership model popularized by author and business coach Marshall Goldsmith , which highlights four other leadership styles: directing, coaching, supporting, and delegating.

A top-down, more authority-driven style of leadership, the director makes decisions and provides strong leadership without much, if any, input from the person or team being led. This style is useful when leading new or inexperienced teams, training new employees without a background in your industry, and potentially when forging ahead into a new market or technology (but only when the leader has experience worth trusting).

This method doesn’t work as well when the manager isn’t a powerful, experienced figure or when the people being managed have valuable input to offer.

"Each person holds so much power within themselves that needs to be let out. Sometimes they just need a little nudge, a little direction, a little support, a little coaching, and the greatest things can happen" ~ Pete Carroll

A coach comes alongside skilled contributors, guiding them as they use their skills. The coaching style of leadership is much the same, working alongside team members yet retaining authority to make the final call. Coaches also develop potential or raw talent into something better and more useful, and it works exactly the same way in business.

Coaching is highly effective for employees who have input to give or raw talent that needs refining. It’s also effective with skilled employees who need help staying on target. Just like in sports, a coach can’t be better than the sum of the players on the team. So coaching may not be the best approach for inexperienced employees or those with significant performance issues.

Supporting steps back even further than coaching. This method assumes team members know what to do and how to do it, so the manager takes a more hands-off approach. Supportive managers often step into the relational aspects of a team, helping team members work better together.

This style of leadership also comes into play when individuals grow unsteady in terms of output or performance, offering support to a person who may need a hand getting through a rough patch.

Supportive management works best with highly skilled teams that still have some issues with interpersonal relationships, consistent performance, or other metrics.

The delegating style of leadership assigns tasks to employees (delegation) and provides little more than basic oversight once assigned, freeing the leader to spend more time on high-level work — like long-term vision and goal-setting for the project.

This method is very attractive to managers because in some ways it’s the easiest and least time-consuming. However, it only works consistently well with high-performing teams and team members who don’t need directing, coaching, or support.

4) Controlling

Controlling includes all of management’s efforts to make sure the goal (established way back in the planning phase) is accomplished. It includes ongoing analysis of the plan and iterative updates to that plan as needed.

The manager’s project monitoring component (the analysis of how well the project team is adhering to the plan) may overlap slightly with project management. Not every business or project gets a dedicated project manager, either. If you’re a manager and find yourself doing more project management than you’d like, a good project management software tool can help.

Teamwork.com is a robust project management suite that managers and project leads alike can use to improve their project workflows. Take a look at Teamwork.com’s powerful Resource Management capabilities .

Examples of controlling functions

Schedule and deadline management , employee training, performance evaluations, adjustments to budgets or staffing assignments, and resource allocation are all included within the controlling function.

Lead better — stay organized with Teamwork.com

The four functions of management can be a powerful framework that helps effective leaders categorize and prioritize their tasks and responsibilities, identifying where their particular leadership skills best fit within an organization.

But even the most successful manager can struggle to stay on top of long-range plans, detailed planning processes, and the specifics of multiple concurrent projects. All of this combined is just too much information.

Teamwork.com is a powerful project management platform that helps busy managers stay organized so they can focus on leveraging their management skills, not tracking down project details.

See more of what Teamwork.com can do for your business now - get started now for free, view our comprehensive pricing plans , or book a demo today.

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TABLE OF CONTENTS

• Controlling
• Stay organized with Teamwork.com

Ben is a Senior Content Marketing Specialist at Teamwork.com. Having held content roles at agencies and SaaS companies for the past 8 years, Ben loves writing about the latest tech trends and work hacks in the agency space.

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Functions of Management – Planning, Organising, Staffing, Directing and Controlling

Management is the process of planning, organising, staffing, directing, and controlling the available resources effectively and efficiently for achieving the goals of the organisation. These interrelated elements of the management process are called functions of management. Functions of management are differentiated into two parts managerial function (i.e., planning, organising, staffing, directing, and controlling ) and operative function (i.e., production, marketing, purchasing, financing, and personnel ). Managerial functions are common to all enterprises because it does not vary from one organisation to another. For example, planning is common in all organisations. Whereas operative functions are not common, and they differ from one organisation to another. For example, production is not performed in a retail store. 

• Functions of Management

There is no universally accepted list of management functions. Different experts have classified the functions of management in different ways. Koontz and O’Donnell have given a very convenient classification of management functions that are generally accepted they are:

Controlling

Table of Content

Functions of Management – FAQs

A plan is a future series of actions decided beforehand. It specifies the objective to be achieved in the future and the steps required to achieve them . Planning is the most essential function of management . It is concerned with thinking in advance about what to do and who is going to do it . It is concerned with the certain determination of a future course of action to achieve the desired result. Planning bridges the gap between the initial point to the destination to reach . Selection of objectives, policies, and procedures are involved in planning. The essential elements of planning are decision-making and problem-solving.

For example, in Ram’s organisation, the objective is the production and sale of shoes. He has to decide quantities, variety, and colour, and then allocate resources for their purchase from different suppliers. Planning cannot avoid or stop problems, but it can anticipate them and prepare emergency plans to deal with them if and when they occur.

Also Read: Planning Process: Concept and Steps Types of Plans: Standing Plan and Single-use Plan Difference between Standing Plans and Single-Use Plans Difference between Policies and Objectives Difference between Policies and Strategy Difference between Policies and Procedures Difference between Procedures and Methods Difference between Procedures and Rules Difference between Policies and Rules Difference between Rules and Methods

Organising is the management function of allotting duties, grouping various activities, establishing authority, and allocating resources necessary to attain the specific plan . Once the plans are formulated, the organising function reviews the activities and resources needed to be applied to the plan. It resolves the activities and resources needed. Organising decides who will perform a particular task, and where and when it will be done . It affects the grouping of the necessary tasks into departments or work units so that they can be managed well. Therefore there is an organisational hierarchy so that reporting is smooth within the organisation. The efficiency of operations and the effectiveness of results can be achieved only if there is a proper organisational technique. The nature and type of organisation structure depend upon the size and nature of the enterprise.

For example, In Ram’s enterprise of shoes, there are many duties to be performed. So, he allocates the duties within the organisation forming various groups to attain the plan. He decides who will perform which task as preparation of accounts, making sales, record keeping, quality control, and inventory control are the tasks to be performed. There is an organisational hierarchy so that reporting is easy and there is a smooth flow within the enterprise.

Also Read: Types of Organisation Structure Difference between Functional Structure and Divisional Structure Formal and Informal Organisation Difference between Formal and Informal Organisation Elements and Importance of Delegation Difference between Authority, Responsibility and Accountability Centralization and Decentralization Difference between Centralization and Decentralization Difference between Delegation and Decentralization

Staffing refers to the process of hiring and developing the required personnel to fill in various positions in the organisation . It is that part of the management process, which is concerned with recruitment, selection, placement, allocation, conservation, and development of human resources. It is a very important aspect of management as it e nsures that the organisation has the right number and right kind of people, with the right qualification at the right places, at the right times and that they are performing the right thing . It is also known as the human resource function . 

For example, when Ram is hiring personnel for his enterprise, he will recruit different people for different tasks. He has to ensure that he is hiring the right people with the right qualification for the right job. For this process, Ram will need an HR manager who will be performing this task for the organisation. This will be a very important part of the management function for his organisation, as it will affect his enterprise in many ways if he selects the wrong people for the job.

Also Read: Staffing and Human Resource Management Staffing Process Sources of Recruitment (Internal and External: Meaning, Merits and Demerits) Difference between Internal Recruitment and External Recruitment Steps in Selection Process Difference between Recruitment and Selection Importance of Training and Development to Organisation and Employees Methods of Training: On-the-Job Methods and Off-the-Job Methods Difference between On-the-Job Training Methods and Off-the-Job Training Methods Difference between Training and Development Difference between Training, Development and Education

Directing is that component of the management process which ensures that the members of an organisation work efficiently and effectively for achieving the desired objective . It involves leading, influencing, instructing, guiding, and inspiring employees to perform and achieve the predetermined objectives . The two important components of directing are motivation and leadership . Communicating effectively and clearly with supervising employees at work is also a part of directing. It involves issuing orders and instructions to subordinates, overseeing people at work, and creating a work environment wherein the employees may perform to the best of their abilities. To bring out the best from the employees, a manager needs to direct them through praise and humbly criticize them.

For example, in Ram’s enterprise, the employees are having some doubts and difficulties. If the supervisor guides his subordinates and clarifies their doubts in performing a task, it will help the employees and the workers to perform the activities correctly and on time. When the employees are motivated and supervised properly, it leads the organisation toward its goal. 

Also Read: Principles and Elements of Directing Importance of Supervision Features and Importance of Motivation Process of Motivation Maslow’s Hierarchy of Needs Theory Financial and Non-Financial Incentives Difference between Financial and Non-financial Incentives Features and Importance of Leadership Types of Leadership Styles 10 Qualities of a Good Leader Difference between Leader and Manager Communication: Meaning, Definition, Features and Importance Elements of Communication Process Communication Channels | Formal and Informal Formal Communication: Meaning, Types, Merits and Demerits Informal Communication: Meaning, Networks, Merits and Demerits Barriers to Effective Communication Measures to improve Communication Effectiveness

When the plans are put into operation from directing, it becomes essential to judge regularly whether the actual results are consistent with the planned results. It monitors the organisational performance towards the fulfilment of organisational goals . It enables the manager to detect errors and defects in the course of work and to take corrective actions whenever needed . It also provides proper direction to work in conformity with the plan of action or pre-determined standards. Controlling serves the purpose of finding out deficiencies in performance and rectifying them so that the organisation can prevent their recurrence.

For example, Ram expected to sell 1,000 pairs of shoes per week. This is the standard against which his actual performance will be judged at the end of the week. If his actual performance at the end of the week falls short of the standard, reasons for the shortfall would be ascertained by his superior. Corrective actions will be taken to help the workers so that Ram’s enterprise can achieve the standard performance of 1,000 pairs of shoes in the future by controlling the deficiencies and rectifying the mistake.

Also Read: Relationship between Planning and Controlling Process of Controlling

What are the primary functions of management?

The primary functions of management are: Planning: Setting objectives and determining the best course of action to achieve them. Organizing: Arranging resources and tasks to implement the plan. Staffing: Recruiting, selecting, and training individuals for specific roles within the organization. Directing: Leading and motivating employees to work towards the organization’s goals. Controlling: Monitoring performance and making adjustments to ensure objectives are achieved.

Can you explain the interrelationship between the different functions of management?

The functions of management are highly interrelated and often overlap. For example: Planning sets the direction and objectives, which influences how organizing and staffing are carried out. Organizing ensures that resources are arranged according to the plan, impacting how directing is executed. Directing involves guiding the organized teams and resources towards the plan’s objectives. Controlling ensures that the outcomes of planning, organizing, and directing are aligned with the goals. Together, these functions create a continuous cycle that drives organizational success.

How does effective management impact organizational performance?

Effective management leads to: Efficient use of resources. High employee productivity and morale. Achievement of organizational goals. Innovation and continuous improvement. Adaptability to changes in the external environment. Overall, effective management ensures that the organization operates smoothly, meets its objectives, and remains competitive.

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Please note you do not have access to teaching notes, organizational staffing: a multilevel review, synthesis, and model.

Research in Personnel and Human Resources Management

ISBN : 978-0-76231-103-3 , eISBN : 978-1-84950-266-5

Publication date: 30 June 2004

Does staffing contribute to organizational effectiveness and sustained competitive advantage, or are many of staffing’s implications merely cross-level fallacies? This article provides a critical examination of staffing research and practice, and proposes a multilevel model of staffing that ties together micro (e.g. personnel selection), meso (e.g. team staffing), and macro (e.g. organizational strategy, Human Resources practices) theory, research, and practice. The model is both integrative and prescriptive, providing a basic organizing structure for examining staffing research within and across levels. The article begins with a review of multilevel theory, followed by a review and critique of the dominant staffing paradigms from a multilevel perspective. It is shown these single level paradigms cannot answer many of the primary questions of interest to staffing specialists. In contrast, the multilevel staffing model not only addresses these limitations, but also prompts a variety of new predictions that oftentimes run counter to prevailing wisdom. Staffing specialists are challenged to show how our science and practice contribute to better functioning organizations.

Ployhart, R.E. (2004), "ORGANIZATIONAL STAFFING: A MULTILEVEL REVIEW, SYNTHESIS, AND MODEL", Research in Personnel and Human Resources Management ( Research in Personnel and Human Resources Management, Vol. 23 ), Emerald Group Publishing Limited, Leeds, pp. 121-176. https://doi.org/10.1016/S0742-7301(04)23003-1

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The Role of a Manager Has to Change in 5 Key Ways

• Joseph Pistrui

The challenges organizations face today call for a new kind of leadership.

Management has long been associated with the five basic functions: planning, organizing, staffing, directing, and controlling. These default dimensions are sufficient when pursuing a fixed target in a stable landscape. But take away the stability of the landscape, and one needs to start thinking about the fluidity of the target. This is what’s happening today, and managers must move away from the friendly confines of these five tasks. To help organizations meet today’s challenges, managers must move from: directive to instructive, restrictive to expansive, exclusive to inclusive, repetitive to innovative, problem solving to challenging, and employer to entrepreneur.

“First, let’s fire all the managers” said Gary Hamel almost seven years ago in Harvard Business Review . “Think of the countless hours that team leaders, department heads, and vice presidents devote to supervising the work of others.”

• JP Joseph Pistrui is Professor of Entrepreneurial Management at IE Business School in Madrid. He also leads the global Nextsensing Project .
• DD Dimo Dimov is Professor of Entrepreneurship & Innovation at Bath University in the UK, and co-founder of Kinetic Thinking.

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The Four Functions of Management: How They Impact Business

Effective management enables organizational goals to be achieved. From upper management to middle management, managers are the strategic force behind business success.

Managers today have multifaceted roles. Their job is not just about mere supervision anymore.

Managers are responsible for ensuring the overall success of departments and organizations. They act as strategic thinkers, problem solvers, and leaders. According to Indeed, their duties involve a wide range of tasks from setting objectives and allocating resources to motivating workers and monitoring progress.

Managers Are Strategic Thinkers and Problem Solvers

A manager constantly analyzes market trends, identifies opportunities, and develops long-term plans to ensure the organization's growth and sustainability. By staying up to date with industry developments and understanding the competition, managers can make informed decisions that help an organization to succeed in reaching business goals.

A successful manager is expected to be an effective problem solver. Managers will encounter various daily challenges, ranging from conflicts among team members to operational inefficiencies.

It is their responsibility to identify issues, analyze their root causes, and implement appropriate solutions. As a result, managers require strong analytical skills and critical thinking; they must also collaborate with different stakeholders and suppliers.

Managers Have Effective Leadership Skills

Sound leadership demands inspiring and motivating teams to achieve their full potential.

Effective leaders create a positive work environment, encourage innovation, and create a culture of continuous learning. They adapt their leadership style to communicate objectives and expectations clearly to team members, encouraging feedback and collaboration. They also lead by example, set high standards of performance and ethics, and guide their subordinates toward success.

Leadership involves setting objectives, allocating resources, and providing organizational structure. Leaders define clear goals for their departments and ensure that budgets, manpower, and technological tools are appropriately allocated to achieve those goals. This work requires effective planning, coordination, and communication with different stakeholders, both within and outside the organization.

Managers Guide Projects to Achieve Business Goals

Monitoring progress is another critical responsibility of modern managers. They regularly use project management tools to assess the performance of their departments and teams, tracking key metrics and indicators. They identify areas for improvement, address any issues promptly, and make necessary adjustments to ensure that the organization stays on track toward achieving its objectives.

Monitoring progress also involves providing regular feedback and recognition to workers, which contributes to employee growth and motivation. By understanding the broader responsibilities associated with management, individuals can become well-rounded leaders capable of driving their organizations toward their goals.

It is essential for managers to continuously develop their skills and knowledge, staying current on industry trends and best practices. With the right mindset and a commitment to excellence, modern leaders can make a significant impact on their organizations and contribute to their long-term success.

The Four Functions of Management: A Historical Perspective

In today’s business world, there are four basic management functions that guide managers. They are:

• Controlling

To comprehend the four functions of management, we must first delve into their historical development. Henri Fayol , a pioneer in the field of management theory, initially introduced these functions in the early 20th century.

These management functions are not meant to be approached as stand-alone concepts, but rather as interrelated processes that collectively contribute to the achievement of business goals.

1. Planning Function

Proper planning is the foundation upon which all other management functions are built. Tactical planning involves setting objectives, determining the best course of action, and developing strategic plans to achieve goals.

In the past, tactical planning was often seen as a top-down process. Decisions and strategic plans were made by higher-level executives and were then handed down to lower-level employees.

But as organizations have become more complex and dynamic, planning has evolved to include input from all levels of an organization. Today, planning is a collaborative process that involves gathering information, analyzing data, and making informed decisions that align with the organization's mission and vision.

2. Organizing Function

Once the planning phase is complete, the next function of management is organizing. Organizing involves using resources in a way that allows for an efficient, effective execution of the organization's tactical plans. It also involves tasks such as:

• Creating organizational structures
• Defining roles and responsibilities
• Establishing communication channels

In the early days of management, organizing was often seen as a mechanistic process. There was a focus on hierarchical structures and strict rules and regulations.

As organizations have become more flexible, organizing has evolved. Now, concepts such as team-based structures, cross-functional collaboration, and decentralized decision-making are embraced by many organizations.

3. Leading Function

Once an organization is properly structured, the next function of management is to lead that organization. Leadership involves influencing and motivating employees to achieve the organization's goals. Understanding and adapting different leadership styles allows a manager to effectively respond to the needs of each team member needs and organizational challenges, which can contribute to motivating workers.

Previously, leadership was often seen as a trait possessed by a select few individuals. As our understanding of leadership has evolved, it is now recognized that anyone can become a leader, regardless of their position within an organization.

For example, today's leadership is not limited to the people in formal managerial roles. Leadership includes individuals at all levels of an organization from top management executives, project managers, and department managers to low-level employees.

4. Controlling Function

The final function of management is controlling. This work involves monitoring performance, comparing actual results to planned objectives, and taking corrective action when necessary. In the past, controlling was often seen as a means of maintaining strict discipline and ensuring compliance with rules and regulations.

Now organizations have become more focused on continuous improvement and adaptability. As a result, controlling has evolved to include feedback mechanisms, performance metrics, and a focus on learning and development.

Effective control systems enable a manager to identify areas for business improvement, make necessary adjustments, and ensure that employees are headed in the right direction to achieve their goals within a clearly defined time period. When needed, managers of different departments can also provide guidance to their subordinates and to new employees.

The Importance of Planning in Achieving Company Objectives

At the heart of any successful business venture lies a well-crafted plan. Planning involves setting objectives, creating Gantt charts, determining the necessary actions to take, and establishing a timeline for their attainment. By clearly defining the path to success, a manager can provide clarity and direction to teams, helping them to stay focused on the desired outcomes.

Effective planning involves considering various factors such as market conditions, internal capabilities, and available resources. During planning, it is a manager's responsibility to analyze information, forecast future trends, and make informed decisions. A well-developed plan serves as a roadmap, guiding the organization toward its goals and ensuring that resource allocation is effective.

Planning is not a one-time event, but an ongoing process. As circumstances change and new opportunities or challenges arise, managers must adapt and refine their plans accordingly. This dynamic approach to strategic planning allows organizations to stay agile and responsive in an ever-evolving business world.

Organizing: Efficiently Allocating Resources and Responsibilities

Once a strategic plan is in place, the next step is to organize what is necessary for employees to complete tasks.

Organizing involves identifying the tasks required to achieve the goals and allocating them to individuals or teams within the organization. This process ensures that each person knows their role, allowing for efficient resource allocation and the prevention of duplicate work that would be time-consuming to fix.

Effective organization requires managers to consider factors such as the skills and strengths of employees, the appropriate division of labor, and the establishment of clear reporting structures. By effectively organizing resources and responsibilities, they ensure that the necessary human capital and tools are in place to help the business run efficiently.

Organizing is not limited to internal resources but also extends to external stakeholders. Managers must establish effective relationships with suppliers, partners, and stakeholders to ensure the smooth flow of resources and information. This collaborative approach to organizing strengthens the organization and enhances its ability to achieve its objectives.

Leading: Inspiring and Guiding Teams

Leadership is at the core of every successful organization. A manager's job involves inspiring and motivating individuals within an organizational structure to work together towards a common goal. Successful supervisors possess strong leadership skills, enabling them to communicate effectively, foster a positive work environment, and inspire their teams to give their best.

Effective leadership involves not only providing visionary guidance but also supporting the development of employees. An effective leader encourages professional development, empowers employees to take ownership of their work, and fosters a culture of collaboration and innovation. By leading effectively and ensuring all employees are on the same page and producing high-quality work, managers cultivate a sense of purpose and cohesion within the organization.

Controlling: Ensuring Company Goals Are Met

Controlling involves monitoring performance, comparing it against established standards, and taking corrective actions when necessary. By implementing control mechanisms, successful managers ensure that the organization stays on track and that deviations from a business plan are identified and addressed in a timely manner.

Controlling involves various activities, such as:

• Establishing performance indicators
• Collecting and analyzing data
• Providing timely feedback to employees

Through effective controlling, managers can identify areas of improvement, celebrate successes, and ultimately ensure that key strategic goals are met. In today's business world, it may also be necessary to control the actions of teams in different time zones to ensure they adhere to a company's performance standards.

Controlling employees is not about micromanagement or stifling creativity. It is about creating an environment that allows for autonomy and accountability while ensuring alignment with organizational objectives. By striking the right balance between control and flexibility, managers enable individuals and teams to perform at their best.

Pursuing Formal Education to Enhance Management Skills

While understanding the four functions of management is useful, the complexities of modern business require managers to continually enhance their knowledge and skills so that they can perform their core responsibilities with greater ease. Pursuing formal education, such as a master of business administration (MBA), can equip aspiring managers with a clear understanding of what is needed to navigate the ever-changing business environment and achieve organizational goals.

Formal education offers students the opportunity to study various management disciplines, including strategic planning, organizational behavior, and leadership. Through case studies, group projects, and discussions, learners can gain practical knowledge and apply it to real-world scenarios.

One of the key benefits of pursuing formal education is the exposure to different management theories and frameworks. By studying various approaches to management, potential business leaders can broaden their perspectives and develop a more comprehensive understanding of the field. This expanded knowledgebase can help them make informed decisions and tackle complex challenges with confidence.

Formal education programs often offer networking opportunities, allowing students to establish connections with peers and industry experts. This exchange of ideas and experiences can further enrich their management acumen, providing valuable insights and perspectives. Collaborating with professionals from diverse backgrounds can foster creativity and innovation, as students learn from others with different backgrounds and apply cross-disciplinary approaches to problem-solving.

In addition to theoretical knowledge and networking opportunities, formal education also offers practical learning experiences. Many programs incorporate internships or consulting projects, where students can apply their skills in real-world settings. This type of hands-on experience not only enhance students’ understanding of management concepts but also provide valuable industry exposure and a chance to build a professional reputation.

Effective management is a cornerstone of organizational success. By understanding and implementing the four functions of management – the planning function, the organizing function, the leading function, and the controlling function – a manager can steer an organization toward achievement.

Through continuous learning and development, managers can adapt to evolving business dynamics and inspire their teams to reach new heights. Embracing the core responsibilities of the modern manager is key to thriving in today's fast-paced and competitive business world.

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1.5 Planning, Organizing, Leading, and Controlling

Learning objectives.

• Know the dimensions of the planning-organizing-leading-controlling (P-O-L-C) framework.
• Know the general inputs into each P-O-L-C dimension.

A manager’s primary challenge is to solve problems creatively. While drawing from a variety of academic disciplines, and to help managers respond to the challenge of creative problem solving, principles of management have long been categorized into the four major functions of planning, organizing, leading, and controlling (the P-O-L-C framework). The four functions, summarized in the P-O-L-C figure, are actually highly integrated when carried out in the day-to-day realities of running an organization. Therefore, you should not get caught up in trying to analyze and understand a complete, clear rationale for categorizing skills and practices that compose the whole of the P-O-L-C framework.

It is important to note that this framework is not without criticism. Specifically, these criticisms stem from the observation that the P-O-L-C functions might be ideal but that they do not accurately depict the day-to-day actions of actual managers (Mintzberg, 1973; Lamond, 2004). The typical day in the life of a manager at any level can be fragmented and hectic, with the constant threat of having priorities dictated by the law of the trivial many and important few (i.e., the 80/20 rule). However, the general conclusion seems to be that the P-O-L-C functions of management still provide a very useful way of classifying the activities managers engage in as they attempt to achieve organizational goals (Lamond, 2004).

Figure 1.7 The P-O-L-C Framework

Planning is the function of management that involves setting objectives and determining a course of action for achieving those objectives. Planning requires that managers be aware of environmental conditions facing their organization and forecast future conditions. It also requires that managers be good decision makers.

Planning is a process consisting of several steps. The process begins with environmental scanning which simply means that planners must be aware of the critical contingencies facing their organization in terms of economic conditions, their competitors, and their customers. Planners must then attempt to forecast future conditions. These forecasts form the basis for planning.

Planners must establish objectives, which are statements of what needs to be achieved and when. Planners must then identify alternative courses of action for achieving objectives. After evaluating the various alternatives, planners must make decisions about the best courses of action for achieving objectives. They must then formulate necessary steps and ensure effective implementation of plans. Finally, planners must constantly evaluate the success of their plans and take corrective action when necessary.

There are many different types of plans and planning.

Strategic planning involves analyzing competitive opportunities and threats, as well as the strengths and weaknesses of the organization, and then determining how to position the organization to compete effectively in their environment. Strategic planning has a long time frame, often three years or more. Strategic planning generally includes the entire organization and includes formulation of objectives. Strategic planning is often based on the organization’s mission, which is its fundamental reason for existence. An organization’s top management most often conducts strategic planning.

Tactical planning is intermediate-range (one to three years) planning that is designed to develop relatively concrete and specific means to implement the strategic plan. Middle-level managers often engage in tactical planning.

Operational planning generally assumes the existence of organization-wide or subunit goals and objectives and specifies ways to achieve them. Operational planning is short-range (less than a year) planning that is designed to develop specific action steps that support the strategic and tactical plans.

Organizing is the function of management that involves developing an organizational structure and allocating human resources to ensure the accomplishment of objectives. The structure of the organization is the framework within which effort is coordinated. The structure is usually represented by an organization chart, which provides a graphic representation of the chain of command within an organization. Decisions made about the structure of an organization are generally referred to as organizational design decisions.

Organizing also involves the design of individual jobs within the organization. Decisions must be made about the duties and responsibilities of individual jobs, as well as the manner in which the duties should be carried out. Decisions made about the nature of jobs within the organization are generally called “job design” decisions.

Organizing at the level of the organization involves deciding how best to departmentalize, or cluster, jobs into departments to coordinate effort effectively. There are many different ways to departmentalize, including organizing by function, product, geography, or customer. Many larger organizations use multiple methods of departmentalization.

Organizing at the level of a particular job involves how best to design individual jobs to most effectively use human resources. Traditionally, job design was based on principles of division of labor and specialization, which assumed that the more narrow the job content, the more proficient the individual performing the job could become. However, experience has shown that it is possible for jobs to become too narrow and specialized. For example, how would you like to screw lids on jars one day after another, as you might have done many decades ago if you worked in company that made and sold jellies and jams? When this happens, negative outcomes result, including decreased job satisfaction and organizational commitment, increased absenteeism, and turnover.

Recently, many organizations have attempted to strike a balance between the need for worker specialization and the need for workers to have jobs that entail variety and autonomy. Many jobs are now designed based on such principles as empowerment, job enrichment and teamwork . For example, HUI Manufacturing, a custom sheet metal fabricator, has done away with traditional “departments” to focus on listening and responding to customer needs. From company-wide meetings to team huddles, HUI employees know and understand their customers and how HUI might service them best (Huimfg, 2008).

Leading involves the social and informal sources of influence that you use to inspire action taken by others. If managers are effective leaders, their subordinates will be enthusiastic about exerting effort to attain organizational objectives.

The behavioral sciences have made many contributions to understanding this function of management. Personality research and studies of job attitudes provide important information as to how managers can most effectively lead subordinates. For example, this research tells us that to become effective at leading, managers must first understand their subordinates’ personalities, values, attitudes, and emotions.

Studies of motivation and motivation theory provide important information about the ways in which workers can be energized to put forth productive effort. Studies of communication provide direction as to how managers can effectively and persuasively communicate. Studies of leadership and leadership style provide information regarding questions, such as, “What makes a manager a good leader?” and “In what situations are certain leadership styles most appropriate and effective?”

Quality control ensures that the organization delivers on its promises.

International Maize and Wheat Improvement Center – Maize seed quality control at small seed company Bidasem – CC BY-NC-SA 2.0.

Controlling

Controlling involves ensuring that performance does not deviate from standards. Controlling consists of three steps, which include (1) establishing performance standards, (2) comparing actual performance against standards, and (3) taking corrective action when necessary. Performance standards are often stated in monetary terms such as revenue, costs, or profits but may also be stated in other terms, such as units produced, number of defective products, or levels of quality or customer service.

The measurement of performance can be done in several ways, depending on the performance standards, including financial statements, sales reports, production results, customer satisfaction, and formal performance appraisals. Managers at all levels engage in the managerial function of controlling to some degree.

The managerial function of controlling should not be confused with control in the behavioral or manipulative sense. This function does not imply that managers should attempt to control or to manipulate the personalities, values, attitudes, or emotions of their subordinates. Instead, this function of management concerns the manager’s role in taking necessary actions to ensure that the work-related activities of subordinates are consistent with and contributing toward the accomplishment of organizational and departmental objectives.

Effective controlling requires the existence of plans, since planning provides the necessary performance standards or objectives. Controlling also requires a clear understanding of where responsibility for deviations from standards lies. Two traditional control techniques are budget and performance audits. An audit involves an examination and verification of records and supporting documents. A budget audit provides information about where the organization is with respect to what was planned or budgeted for, whereas a performance audit might try to determine whether the figures reported are a reflection of actual performance. Although controlling is often thought of in terms of financial criteria, managers must also control production and operations processes, procedures for delivery of services, compliance with company policies, and many other activities within the organization.

The management functions of planning, organizing, leading, and controlling are widely considered to be the best means of describing the manager’s job, as well as the best way to classify accumulated knowledge about the study of management. Although there have been tremendous changes in the environment faced by managers and the tools used by managers to perform their roles, managers still perform these essential functions.

Key Takeaway

The principles of management can be distilled down to four critical functions. These functions are planning, organizing, leading, and controlling. This P-O-L-C framework provides useful guidance into what the ideal job of a manager should look like.

• What are the management functions that comprise the P-O-L-C framework?
• Are there any criticisms of this framework?
• What function does planning serve?
• What function does organizing serve?
• What function does leading serve?
• What function does controlling serve?

Huimfg.com, http://www.huimfg.com/abouthui-yourteams.aspx (accessed October 15, 2008).

Lamond, D, “A Matter of Style: Reconciling Henri and Henry,” Management Decision 42, no. 2 (2004): 330–56.

Mintzberg, H. The Nature of Managerial Work (New York: Harper & Row, 1973); D. Lamond, “A Matter of Style: Reconciling Henri and Henry,” Management Decision 42 , no. 2 (2004): 330–56.

Principles of Management Copyright © 2015 by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

• Management Functions
• Staffing Function

Staffing Function of Management

The managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal and development of the personnels to fill the roles assigned to the employers/workforce.

According to Theo Haimann, “Staffing pertains to recruitment, selection, development and compensation of subordinates.”

Nature of Staffing Function

  Related Articles

• Staffing Process
• Manpower Planning
• Obstacles in Manpower Planning
• Types of Recruitment
• Employee Selection Process

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• Staffing - Introduction
• Recruitment  versus  Selection
• Orientation and Placement
• Training of Employees
• Employee Remuneration

Functions of Management

Management in some form or another is an integral part of living and is essential wherever human efforts are to be undertaken to achieve desired objectives. The basic ingredients of management are always at play, whether we manage our lives or business.

“Management is a set of principles relating to the functions of planning, organizing, directing, and controlling, and the applications of these principles in harnessing physical, financial, human, and informational resources efficiently and effectively to achieve organizational goals”.

Management is essential for an organized life and necessary to run all types of organizations. Managing life means getting things done to achieve life’s objectives and managing an organization means getting things done with and through other people to achieve its objectives.

1. Planning 2. Organizing 3. Staffing 4. Directing 5. Controlling

But, Planning, Organizing, Staffing, Directing, and Controlling are widely recognized functions of management.

Five Functions of Management

1. planning.

Planning is future-oriented and determines an organization’s direction. It is a rational and systematic way of making decisions today that will affect the future of the company. It is a kind of organized foresight as well as corrective hindsight. It involves predicting of the future as well as attempting to control the events. It involves the ability to foresee the effects of current actions in the long run in the future.

“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”.

2. Organizing

Organizing requires a formal structure of authority and the direction and flow of such authority through which work subdivisions are defined, arranged and coordinated so that each part relates to the other part in a united and coherent manner so as to attain the prescribed objectives.

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”.

It follows, therefore, that the function of organizing is concerned with:

3. Staffing

Staffing is the function of hiring and retaining a suitable work-force for the enterprise both at managerial as well as non-managerial levels. It involves the process of recruiting , training, developing, compensating and evaluating employees and maintaining this workforce with proper incentives and motivations. Since the human element is the most vital factor in the process of management , it is important to recruit the right personnel.

This function is even more critically important since people differ in their intelligence, knowledge, skills, experience, physical condition, age and attitudes, and this complicates the function. Hence, management must understand, in addition to the technical and operational competence, the sociological and psychological structure of the workforce.

4. Directing

The communication must be open both ways so that the information can be passed on to the subordinates and the feedback received from them.

5. Controlling

The function of control consists of those activities that are undertaken to ensure that the events do not deviate from the pre-arranged plans. The activities consist of establishing standards for work performance, measuring performance and comparing it to these set standards and taking corrective actions as and when needed, to correct any deviations.

a. Establishment of standard performance.

d. Taking corrective action.

All these five functions of management are closely interrelated. However, these functions are highly indistinguishable and virtually unrecognizable on the job. It is necessary, though, to put each function separately into focus and deal with it.

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• Functions of Management – Planning, Organizing, Staffing and More

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Management is an aspect of the business that doesn’t have the same specific duties some of the other parts of the business have. While an accountant will always know quite clearly the expertise and responsibilities he or she has, a manager needs to have a much broader set of skills, with the tasks ranging depending on the business. Yet, management like all the other parts of the business have certain functions to guide the operations.

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In this guide, we’ll talk about these functions, first by looking at the definition of management and then moving on to present popular theories regarding the functions of management. You’ll also be able to read about the five functions core functions – planning, organizing, staffing, directing and controlling – and why they are important and how you can achieve them with your management.

DEFINING MANAGEMENT

To understand the functions of management, you must first examine what management is about. How do you define management?

Management is a process with a social element. It requires the efficient use of resources combined with the guidance of people in order to reach a specific organizational objective. It involves responsibility to achieve the objectives and to fulfill specific organizational purposes through economical and effective planning and regulation. It’s about taking charge and ensuring focus is placed on the things and aspects of the business that help achieve the vision and the goals.

Three key characteristics define the process of management.

• First, management is a process of continuing and related activities . Each of the functions is related to each other and the functions complement each other. It is hard to consider the functions in isolation, as management requires each activity to complement one another. When you as a manager engage in one function, you in effect also start the process of another function.
• The second core characteristic of management is about it involving and concentrating on organizational goals . Management is largely focused on achieving the key mission of the organization, its vision . Whilst there are detailed objectives it might focus on, management is mainly interested in identifying the wider organizational goals and using the different functions in order to achieve the objectives. Each function takes the organization closer to achieving its vision.
• Finally, management achieves the organizational goals by working with people and organization resources . You might use different financial resources or physical equipment as part of the process, while also directing and guiding the staff towards the objectives. The manager is in charge of supporting the people and connecting the right person with the right resources.

In essence, management is about a dynamic process, with a number of elements and activities as part of the process. The dynamic and social element of management mean the functions of management are separate from operational functions. Whilst operational functions refer to activities and processes such as marketing, finances and purchases, the management functions differ depending on the organizational level at which they take place.

The functions remain the same, yet are essentially different depending on the organizational hierarchy. A manager at the senior level will be involved in different activities than the manager at the junior level. The core concepts might be the same, but they are dynamic in manifestation. On the other hand, operational function of marketing will change according to the organization, the person in charge and the operational goals. For management functions, the objective of the specific activity remains largely the same, even though the manifestation might be different depending on the specific situation.

Management functions are the same, but the management processes people use can differ. A management style or process can depend on the organization, the manager in question, and even the objectives. You’re likely to change management style if you are directing a single person or being in control of a team. You can find out more about management styles from the introductory clip below:

THE FAMOUS THEORIES ON THE FUNCTIONS OF MANAGEMENT

Since management involves solving the problems within an organization in order to reach the desired objectives, the focus is on understanding the functions that make up the process. As experts began studying and theorizing the essence of management, different ideas and concepts regarding the functions were born.

Although the theories about the functions of management lead to rather similar results, it can be helpful to study the differences as well as the historical journey to our current understanding of the functions. Here are a few of the most influential theories and theorists, who’ve outlined their ideas about the functions of management.

Henri Fayol

Henri Fayol was the first to attempt classifying managerial activities into specific functions. The French engineer established the first principles of the classical management theory at the start of the last century. Fayol is considered the founding father of concepts such the line and staff organization. When Fayol developed his strategies and ideas, managers in organizations didn’t have any kind of formal training and therefore Fayol’s ideas were ground-breaking.

As well as setting out 14 general principles of management , Fayol also defined the five core functions of management, which are still used and which form the basis of much of the later theories. To Fayol, manages is a process, which includes forecasting, planning, organizing, commanding and controlling. These are the foundation of setting the relationship between the subordinates and the superior and the five core functions help the management to solve problems in the relationship or within the organization in a creative manner.

George R. Terry

After Fayol, many theorists have looked at the functions and crafter their own ideas, deviating only slightly from Fayol’s core functions. George R. Terry wrote a book Principles of Management in 1968 and outlined his view on the principles. Terry believed there to be four core functions, each function posing and responding to a specific question the management must solve. The question, the fundamental function and the resulting action are outlined in the below graph:

Harold Koontz and Cyril O’Donnell

In 1976, Harold Koontz and Cyril O’Donnell published an essay Management: A Systems and Contingency Analysis of Managerial Functions . They felt the previous studies have been effective in describing the functions, but believed the division should be more detailed. Koontz and O’Donnell believed there to be five key functions of management:

• Directing/Leading

Controlling

These five functions of management have become perhaps the most cited and they are explained further in the following section. Overall, the quick outlook would hopefully have highlighted the alignment of the functions of management in different management theories.

THE FIVE FUNCTIONS OF MANAGEMENT

While there are slight variations in how the functions are named and the different management theories might combine or divide certain functions into smaller chunks, the consensus points to five core functions. What do these functions entail, why are they important and how to utilize them?

The first managerial function involves planning . The function is about creating a detailed plan towards achieving a specific organizational objective. When you are planning, you are identifying the tasks, which are required to achieve the desired goals, outlining how the tasks should be performed, and identifying when and by whom they must be performed. The focus of planning is about achieving the objectives and it does require knowledge of the organization’s objectives and vision. You will need to look both at the short- and long-term success of the organization as part of the plan.

An example of planning would be a situation where you have an objective, such as increasing the sales by 20% in the following month. You will need to look at the different ways you and the team could achieve this goal. This might include things like creating a new advertisement campaign, reducing prices or speaking to customers about their shopping plans. Your role is to pick the processes that you find the most appropriate and to organize them into a logical pattern. You must also identify the timeline for these processes.

As you might realize, planning is on on-going function. Management will regularly have to plan the future tasks and adjust the plans based on the organizational situation and the achievement of previous goals. Furthermore, it requires the whole organization to work together as the different departments or team plans need to link to each other and align with the organizational objective. Henri Fayol called the function the most difficult to achieve! You need a lot of knowledge and flexibility in order to plan activities effectively.

Why is planning essential?

Why is planning important? Planning provides the organization a better sense of what it wants to achieve and how it can achieve this. You essentially have more focus when you plan for things. Think what would happen if you went into a big job interview without any planning.

You might be OK, but you wouldn’t be able to focus on the details and it might take time for you conduct your answers. But if you plan for the interview, you now exactly the points you want to make, you have enough knowledge to respond to specific questions about the company and so on.

In effect, planning ensures the proper utilization of the available resources and the ability to understand how these should be used in order to achieve the goal. In the example of the interview, the planning helps you take advantage of information on company websites, research interview questions and to then use this information to outline example answers.

A key part of planning is also the vital role it plays in reducing risks. When management plans for the tasks ahead, they are looking at the situation and detailing the possible pitfalls ahead. As with your interview, the risk of not knowing anything about the company or giving an incoherent answer is higher than if you had planned your answers a little.

How to plan?

Planning is an intellectual activity that doesn’t always require a lot of visible labor and effort, as much of it is about thinking creatively about the issues at hand. When you need to come engage in planning, you should focus on the following steps:

• Gain knowledge of the issues – You need to understand the organizational objectives, the different components they involve, and the available resources you and the team have. You also need to be knowledgeable of the topic at hand. In terms of increasing sales, you need to have an understanding of how the sales industry works and what different methods can effectively boost company sales .
• Look into the future – The function is about understanding the short- and long-term objectives the organization wants to achieve. You need to consider not just these different elements, but also be able to make predictions about the future conditions for achieving these. Perhaps you have noticed changes in customer behavior due to the downturn in the economy. When you are planning, you need to take into account these little nuances.
• Determine the objectives – Once you are aware of the organizational objective, the resources available, and the future outlook to achieving the objectives, you need to identify the specific processes and detailed goals that are required to achieve the bigger goal. You might want to create a marketing campaign to increase sales, which requires the team to conduct market research and to come up with ideas. The more detailed objectives and processes you can set, the better the plan is.
• Create flexible structures – However, your planning needs to be flexible and take into account things don’t always go according to plan. Your management plan must take into account the other departments and their specific organizational goals. Perhaps the financial team has to cut down costs for the sales team and you need to be aware of the impact this would have on your new marketing campaign.

The next function of management follows planning and it is about organizing . It’s about using the plan to bring together the physical, financial and other available resources and use them to achieve the organizational goal. If your task were to increase sales, you would look at the plan and determine how to divide the resources you have in order to put your plan in place.

The marketing campaign would be handed out the Becky and you would provide them with the financial resources available and needed to give birth to the campaign. You would also need to ensure the team has access to the customer files in order to utilize vital information. You’d then direct Danny and his team to calculate the possible reductions you can make, help them have the resources to determine which products are best to discount and so on.

You’d use the above plan and information about the resources you have or which you need, and arrange the resources to the right tasks. As the example shows, this can be about arranging the finances, ensuring the right equipment is used and appointing the personnel to the specific tasks.

Your objective as the manager is to provide your team or department the resources it needs to turn the plan into reality. The organizing function is about the overall structure of the specific managerial level. You are creating the foundations to everyday operations by organizing the resources. This function is closely linked to the hierarchy of management.

Depending on your management level, you will have different responsibilities and resources to organize. The top-level managers need to organize the teams below them, while the lower-level managers will be partly taking orders for effective organizing from the managers above. Organizing is a vital part of ensuring the company can function effectively and it concerns the day-to-day activities.

Why is organizing essential?

While it might be difficult to work without a plan, it can be impossible for an organization to function without organizing. The function is vital because it ensures there is structure to the operations. You are aware of the resources and you ensure they are used in a manner that best helps the company to achieve its targets.

In terms of finances, organizing can guarantee you don’t waste money on functions that don’t provide the right results. If you don’t organize the right persons to do the right jobs, you might damage productivity. If you know Sarah is talented in accounting, you don’t want to put her in charge of marketing. By organizing the resources, you ensure operational efficiency and structure. The company’s day doesn’t start in chaos, with people trying to figure out what they are supposed to do. Organizing puts the plan in action.

Without organizing, resources wouldn’t necessarily work towards the operational goals. While you might have the team still doing tasks, the tasks might not be the correct ones for the situation. Consider you are a manager of a team in a café. When you organize the team to perform the tasks required to boost coffee sales, you have each person working towards the goal. Jerry might be greeting customers and telling them about the new coffee flavour, while Dina and Jack are working to make the sale and the coffee as quickly as possible.

If you hadn’t organized them, you might end up with a situation where Jerry is wiping the floors (although they are clean) and Dina is working alone at the counter.

How to organize?

When done efficiently, organizing tends to follow the pattern and steps outlined below:

• Identify activities and classify them – The step is straightforward enough because you already have a plan. Your objective is to identify the different roles, processes, and activities required to achieve the objectives. These would be the roles for the team members, the different tasks each role would need to perform and the specific processes the tasks would include.
• Assign the duties and resources –Once you’ve identified the above, you would begin organizing the resources. You would assign the specific tasks for the persons you feel are the most qualified and provide the resources to the processes, which most need them.
• Delegate authority and create responsibilities –Managers shouldn’t behave like dictators. Although the power is concentrated to your as the manager, it doesn’t mean you should have all the authority. In order the get the marketing campaign working properly, you might want to ensure the person in charge of the team has the authority to make decisions. You need devolution of responsibility, as it can ensure the plan works efficiently.
• Co-ordinate authority and responsibilities –As well as delegating authority, you also need to co-ordinate it to match the overall functionality of the organization and the structure of the objectives. For example, you might want two people to share the responsibility of organizing the price reductions, with each having the ability to respond to supplier queries. Furthermore, if you have other managers above you, it’s important to co-ordinate the authority to ensure the functionality doesn’t suffer as a result of different plans.

The staffing function is an increasingly important function of management, although it is sometimes left out when the core functions are discussed. It can be seen closely related to organizing, with both focused on ensuring the resources are directed to the right processes and tasks. For staffing, the focus is on people and their labor in relation to the organizational objectives.

The function aims to ensure the organization always has the right people in the right positions and the organizational structure isn’t hindered by lack or excess of personnel. You would essentially be looking at the tasks ahead of you and determining who should do what and if you have the right manpower to achieve the objectives you want.

In terms of hitting your sales targets, you would need to analyze if the current staff is capable of performing the tasks and whether you have enough employees to ensure the integrity of the organization. You might find the marketing team to be too small and consider hiring a temporary or even full-time worker.

The reason staffing is included as a separate function and why it’s a crucial part of management is due to the changing nature of the workforce and the organization. Today’s companies are much more complex in terms of where and when they operate – companies aren’t confined between national boundaries anymore. Technology has also had a huge impact on company structures, requiring new positions and destroying others.

Whereas your car sales company might have mainly relied on face-to-face sales in the past, today you might also do business online, which would mean you need people for IT-specific roles and perhaps fewer salespersons. Management has also become more focused on the human behavioral aspect of leadership. Finding the right company fit, ensuring employees are satisfied, and guaranteeing emotional wellbeing as well as physical work safety have emphasized the importance of staffing as a function.

Why is staffing essential?

As the above showed, staffing’s importance as a core function of management has increased in the past few decades. But having the right amount of staff and the right people doing the required roles isn’t just crucial because of changing technology of enhanced focus on complex human behavior. Staffing is essential to guarantee the operational functionality of the organization.

If you don’t have the right amount of people working in your organization, you make achieving organizational goals harder. You might either be in a situation where you can’t increase the sales, as you don’t have the manpower to respond to company queries. On the other hand, you might be wasting resources by having too many employees with not enough tasks to perform. The numbers do matter.

Staffing also guarantees the staff you have is qualified to perform the tasks and that they are adequately supported in those roles. This will further deepen the organizational efficiency, since people are motivated and qualified to work towards the common objective. You can’t hire a plumber if you are hoping to fix the roof. Furthermore, even the most qualified of employees need the occasional help and support. The staffing function helps create these development opportunities.

How to staff?

According to Koontz & O’Donell, staffing “ involves manning the organisation structure through proper and effective selection, appraisal and development of personnel to fill the roles designed on the structure ”. It consists of a number of separate functions, which are:

• Manpower planning – You need to stay on top of staffing, as manpower requirements can change from season to season. Planning would see you make estimations of the number of employees you need, searching for the right kind of employees, and hiring the perfect employees to the roles in front of you.
• Recruitment, selection and placement – Another key function is the actual recruitment process, with its various steps.
• Training and development – Staffing also includes the creation of structures, which ensure the employees are always on top of the latest skills in the position and the industry. You should also consider training programs in terms of succession, as you need to ensure the next generation of managers and leaders is coming through your organization.
• Remuneration – A big part of the function is the financial aspect. Staff remuneration is key in terms of attracting the right talent without damaging the organization’s finances. If you aren’t offering a competitive remuneration package, the applicants will go to your competitors.
• Performance appraisal – You must also create structures of feedback within the organization. Feedback can play a crucial role in motivating and developing employees; with the reward structures ensuring good behavior is supported and noticed.
• Promotions and transfers of roles – Related to the above two points, promotions are essential for staffing operations. You can reward and motivate the staff by offering enough opportunities to climb up the career ladder. Creating structures for role transfers and promotions also ensure the talent and knowledge you’ve attracted doesn’t leave elsewhere.

The fourth function is known as directing , sometimes also referred to as the influencing or the leading function of management. Directing is about the actuation of the methods to work efficiently to achieve the set organizational objectives. The function goes beyond organizing the employees to their specific roles and involves ensuring they are able to perform the tasks through a variety of means. Directing in essence is looking after productivity and ensuring productivity is going up instead of decreasing.

The function delves deeper inside human interaction, making the manager motivate, communicate and inspire his or her personnel. At this stage, you are meeting and connecting with your employees to find out how the tasks are going. You would talk to them about the new marketing program, get their feedback on the project and spend time inspiring them with new ideas. The directing function is all about the day-to-day interaction between the management and the staff.

The function of directing has strong links to things such as leadership. A good manager will be able to inspire the workforce to work towards the goals not because they have to do it, but because they are driven to achieve these objectives. The manager’s role is not just about ensuring the workplace has the right resources and employees know what they are doing; it’s also important to create an environment of friendship. The manager wants to be someone who can encourage and motivate the personnel and not fear them into submission. With proper directing, you are able to set in motion the processes you’ve prepared with the above three functions.

Why is directing essential?

Directing has an important role in an organization as it helps strengthen the operational capability of the organization. It does so by ensuring the different parts of the organization are working better. Directing is a bridge between the operational needs and the human requirements of its employees. You essentially create a link between the necessity of turning in a profit, with the need of keeping employees motivated and interested. Since directing aims to improve productivity, you are strengthening how well the organisation succeeds.

Research has pointed out how important human-focused management is in today’s organization. When objectives are approached from a human perspective that aims to ensure people’s opinions are listened to, the goals are met faster than in task-oriented environments. The management’s ability to listen to the workforce, support and inspire them will boost the productivity and profitability of the organization.

If you listen to your team’s concerns and perhaps provide them inspiration with quotes, films or the occasional days out of the office, you can refresh their resolve to achieve the goal. If you just throw a blank paper in front of them and tell them to write a story, they are less likely to remain interested.

How to direct?

You can direct and lead your team by utilizing four key methods based on the findings of human behavioral studies. These are:

• Supervision – You need to oversee the work your employees are doing. The method requires watching and monitoring the performance, but also supporting and guiding the employees when things are not going as planned. You could use evaluation reports, examine the quality of work, and be present during certain parts, such as team meetings or when the person is talking to clients. In terms of support, you want to discuss the work and how it’s moving along. You also want to provide materials that can help the employee perform better.
• Communication – Directing is built around effective communication. As a manager, you need to create an environment that supports different communication methods from passing information to exchanging opinions. The important thing is to ensure these different communication channels are not just between manager and subordinate, but also between employees and different management levels.
• Motivation – As mentioned above, big part of directing is about inspiring and motivating your employees. You need them to get behind the objectives to ensure there is enthusiasm to achieve the goals. Motivating as a manager includes positive and negative feedback, provision of ideas and the opportunities to develop skills further. Directing might also have an element of monetary or non-monetary incentives, such as the introduction of bonuses.
• Leadership – Managers must essentially act more like leaders when directing the workforce. This means that you need to occasionally motivate and inspire by setting an example, instead of simply telling the subordinates what they need to do. You want to get hands on with the work and be part of the process of achieving the objectives. Although managers and leaders tend to differ, leadership skills are something a good manager should keep in mind.

The function might seem rather complex and getting it right might be harder than any of the other functions of management. You should watch the video of Jim White, professor emeritus at North Lake College, explaining directing as a function and giving his take on what he thinks are the three key elements of directing: leading, motivating and communicating.

The final function of management is controlling . The function ensures the other four functions are followed correctly and the flow of work is moving the organization towards the objectives it has set itself. As Theo Haimann has put it , 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 “.

In our example of having the objective to increase sales in a particular month, controlling would be the function that measures whether the sales are increasing and helps to correct the situation if the specified target is not getting closer. As a manager, you would examine the processes you set forward and take note whether they are enhancing your sales records. The marketing campaign’s effectiveness would be evaluated and measured. If you find the price reductions being inefficient during the process, you might consider swapping the products on sale, reduce the reduction, or abort the discount campaign altogether as inefficient.

Controlling requires you to examine the objectives in a measurable manner. You essentially need to set standards, which guarantee you know exactly what you want to achieve and what counts as success or failure. But controlling is also a function that due to the set of standards will ensure you have the ability to correct behaviors when they deviate from the standards. In essence, controlling is about quality monitoring. You are looking at the processes and ensuring they achieve the right things for the organization.

Why is controlling essential?

Controlling’s most important function is the risk-reduction ability. Since you are essentially monitoring the performance of the team and comparing it against the objectives you’ve set, you can react to problems more easily. Instead of realizing at the end of the month that you’ve missed your sales target by a huge margin, you can keep on eye on the situation during the process.

If you notice the marketing campaign, for example, is not producing any new customers or leading to increased sales, you can re-tweak it to better attract customers. With the re-tweak, you might be able to change the campaign’s attractiveness and recover the situation. This could end up guaranteeing you meet the sales target at the end of the month.

Even if you miss the target, you might not miss it by as much and you’ve at least had the chance of correcting the situation. With controlling, you are reducing the risk of failure and the impact of failing to meet your objectives. As mentioned, even if you happen to fail, you’re prepared for it and you can start analyzing the reasons behind it immediately.

In the business world, measuring performance can be the difference between the successful and the failing companies. Think about a start-up. If the management doesn’t have a set of standards to measure its performance against, they don’t have any idea what success or failure looks like. Even when they have a set of objectives and they know whether they met them or not, they don’t have anymore information to go by.

Let’s say they want to earn $100,000 in the first three months. Without standards and proper control, after three months all they know is whether they earned it or not. They won’t know the why . Was the success down to the product? Did the marketing help? How much did their social media strategy push sales? Was it all about the saving mechanisms they put in place? In the end, understanding the reasons behind success or failure will help the business perform better.

How to control?

For controlling to be effective, you need to take the four steps of this specific function of management:

• Establish standards of performance  – You first need to establish the standards of performance you are aiming for. These must be set with the organizational objectives in mind. You look at the objectives and the plan you have set, creating a set of measurements that would tell you are on the right path. For example, let’s say you want the manufacturing team to make 10 more shoes every day to boost productivity. Your first measurement would be the team creating 10 shoes, but you could include other factors to the set of standards. You might look to reduce the downtime by ensuring problems are fixed within 30 minutes and add a new person in the chain to fasten the process by 10 minutes.
• Measure the actual performance – Once you’ve set the standards and you’ve set the new processes in motion, you can start monitoring the actual performance. The monitoring process will depend on your standards and the ease of measurement. Part of the process can be performance reviews, actual quantifiable data and so on. The key is to start collecting the information from the start.
• Compare the actual performance with the expected standards – As you receive performance data, you can start comparing it with the standards you’ve set. The comparison helps you to identify the problem areas or notice patterns that are actually working more efficiently.
• Take corrective action – With the data you’ve collected and the information you have about performance, you can take any necessary corrective action. If the recovery team is not repairing the machinery quick enough, you can look deeper into it and find ways to boost the performance. On the other hand, you might notice the team is producing more shoes than you expected, which could help you revise your objectives.

FINAL THOUGHTS

Henri Fayol developed his ideas regarding the functions of management and his theory has largely shaped the current understanding of the core elements any management would have to perform. The functions are key to management in all levels, from the entry positions to higher roles of management.

Furthermore, each five functions – planning, organizing, staffing, directing and controlling – are linked to each other. In order to use one function, you typically need to follow with another or have established one beforehand. While certain theorists and experts might disagree whether there are three, four, five or six functions, the consensus agrees on the detailed representations of the above skills, processes and structures.

The question is often more about how broadly you want to define each function. If one of the functions is missing, management is operating insufficiently and the organizational efficiency might suffer. A good manager has to be able to keep an eye on all of the five functions, often at the same time, to guarantee productivity and profitability.

The functions of management are crucial to understand if you want to succeed as a manager. Knowing the above will guide you as a manager to focus on the right aspects when doing the job and give you confidence in your ability. It also helps provide more clarity in terms of the skills and characteristics you need to possess to be a good manager.

By studying the above, you have hopefully identified the areas you need to develop and gain more knowledge. While your management style might differ from someone else’s style, the above functions will be necessary in order for you to do a good job as a manager. Since management is a crucial part of any organization, emphasis and proper understanding of the above functions will boost the company’s operational efficiency and therefore, its chances of success.

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1.4 Planning, Organizing, Leading, and Controlling

Learning objectives.

• Know the dimensions of the planning-organizing-leading-controlling (P-O-L-C) framework.
• Know the general inputs into each P-O-L-C dimension.

A manager’s primary challenge is to solve problems creatively. While drawing from a variety of academic disciplines, and to help managers respond to the challenge of creative problem solving, principles of management have long been categorized into the four major functions of planning, organizing, leading, and controlling (the P-O-L-C framework). The four functions, summarized in the P-O-L-C figure, are actually highly integrated when carried out in the day-to-day realities of running an organization. Therefore, you should not get caught up in trying to analyze and understand a complete, clear rationale for categorizing skills and practices that compose the whole of the P-O-L-C framework.

It is important to note that this framework is not without criticism. Specifically, these criticisms stem from the observation that the P-O-L-C functions might be ideal but that they do not accurately depict the day-to-day actions of actual managers. H. Mintzberg, The Nature of Managerial Work (New York: Harper & Row, 1973); D. Lamond, “A Matter of Style: Reconciling Henri and Henry,” Management Decision 42 , no. 2 (2004): 330–56. The typical day in the life of a manager at any level can be fragmented and hectic, with the constant threat of having priorities dictated by the law of the trivial many and important few (i.e., the 80/20 rule). However, the general conclusion seems to be that the P-O-L-C functions of management still provide a very useful way of classifying the activities managers engage in as they attempt to achieve organizational goals. D. Lamond, “A Matter of Style: Reconciling Henri and Henry,” Management Decision 42, no. 2 (2004): 330–56.

Figure 1.7 The P-O-L-C Framework

Planning is the function of management that involves setting objectives and determining a course of action for achieving those objectives. Planning requires that managers be aware of environmental conditions facing their organization and forecast future conditions. It also requires that managers be good decision makers.

Planning is a process consisting of several steps. The process begins with environmental scanning The act of analyzing the critical external contingencies facing an organization in terms of economic conditions, competitors, and customers. which simply means that planners must be aware of the critical contingencies facing their organization in terms of economic conditions, their competitors, and their customers. Planners must then attempt to forecast future conditions. These forecasts form the basis for planning.

Planners must establish objectives, which are statements of what needs to be achieved and when. Planners must then identify alternative courses of action for achieving objectives. After evaluating the various alternatives, planners must make decisions about the best courses of action for achieving objectives. They must then formulate necessary steps and ensure effective implementation of plans. Finally, planners must constantly evaluate the success of their plans and take corrective action when necessary.

There are many different types of plans and planning.

Strategic planning The process of analyzing competitive opportunities and threats, as well as the strengths and weaknesses of the organization, and then determining how to position the organization to compete effectively in its environment. involves analyzing competitive opportunities and threats, as well as the strengths and weaknesses of the organization, and then determining how to position the organization to compete effectively in their environment. Strategic planning has a long time frame, often three years or more. Strategic planning generally includes the entire organization and includes formulation of objectives. Strategic planning is often based on the organization’s mission, which is its fundamental reason for existence. An organization’s top management most often conducts strategic planning.

Tactical planning Intermediate-range planning that is designed to develop relatively concrete and specific means to implement the strategic plan. is intermediate-range (one to three years) planning that is designed to develop relatively concrete and specific means to implement the strategic plan. Middle-level managers often engage in tactical planning.

Operational planning Assumes the existence of goals and objectives and specifies ways to achieve them. generally assumes the existence of organization-wide or subunit goals and objectives and specifies ways to achieve them. Operational planning is short-range (less than a year) planning that is designed to develop specific action steps that support the strategic and tactical plans.

Organizing is the function of management that involves developing an organizational structure and allocating human resources to ensure the accomplishment of objectives. The structure of the organization is the framework within which effort is coordinated. The structure is usually represented by an organization chart, which provides a graphic representation of the chain of command within an organization. Decisions made about the structure of an organization are generally referred to as organizational design The matching of organizational form, such as structure, reporting relationships, and information technology, with the organization’s strategy. decisions.

Organizing also involves the design of individual jobs within the organization. Decisions must be made about the duties and responsibilities of individual jobs, as well as the manner in which the duties should be carried out. Decisions made about the nature of jobs within the organization are generally called “job design” decisions.

Organizing at the level of the organization involves deciding how best to departmentalize, or cluster, jobs into departments to coordinate effort effectively. There are many different ways to departmentalize, including organizing by function, product, geography, or customer. Many larger organizations use multiple methods of departmentalization.

Organizing at the level of a particular job involves how best to design individual jobs to most effectively use human resources. Traditionally, job design The process of putting together various elements to form a job, bearing in mind organizational and individual worker requirements. was based on principles of division of labor and specialization, which assumed that the more narrow the job content, the more proficient the individual performing the job could become. However, experience has shown that it is possible for jobs to become too narrow and specialized. For example, how would you like to screw lids on jars one day after another, as you might have done many decades ago if you worked in company that made and sold jellies and jams? When this happens, negative outcomes result, including decreased job satisfaction and organizational commitment, increased absenteeism, and turnover.

Recently, many organizations have attempted to strike a balance between the need for worker specialization and the need for workers to have jobs that entail variety and autonomy. Many jobs are now designed based on such principles as empowerment, job enrichment A job redesign technique that allows workers more control over how they perform their own tasks. and teamwork Cooperative effort by the members of a group or team to achieve a common goal. . For example, HUI Manufacturing, a custom sheet metal fabricator, has done away with traditional “departments” to focus on listening and responding to customer needs. From company-wide meetings to team huddles, HUI employees know and understand their customers and how HUI might service them best. http://www.huimfg.com/abouthui-yourteams.aspx (accessed October 15, 2008).

Leading involves the social and informal sources of influence that you use to inspire action taken by others. If managers are effective leaders, their subordinates will be enthusiastic about exerting effort to attain organizational objectives.

The behavioral sciences have made many contributions to understanding this function of management. Personality research and studies of job attitudes provide important information as to how managers can most effectively lead subordinates. For example, this research tells us that to become effective at leading, managers must first understand their subordinates’ personalities, values, attitudes, and emotions.

Studies of motivation and motivation theory provide important information about the ways in which workers can be energized to put forth productive effort. Studies of communication provide direction as to how managers can effectively and persuasively communicate. Studies of leadership and leadership style provide information regarding questions, such as, “What makes a manager a good leader?” and “In what situations are certain leadership styles most appropriate and effective?”

Controlling

Controlling involves ensuring that performance does not deviate from standards. Controlling consists of three steps, which include (1) establishing performance standards, (2) comparing actual performance against standards, and (3) taking corrective action when necessary. Performance standards are often stated in monetary terms such as revenue, costs, or profits but may also be stated in other terms, such as units produced, number of defective products, or levels of quality or customer service.

The measurement of performance can be done in several ways, depending on the performance standards, including financial statements, sales reports, production results, customer satisfaction, and formal performance appraisals. Managers at all levels engage in the managerial function of controlling to some degree.

The managerial function of controlling should not be confused with control in the behavioral or manipulative sense. This function does not imply that managers should attempt to control or to manipulate the personalities, values, attitudes, or emotions of their subordinates. Instead, this function of management concerns the manager’s role in taking necessary actions to ensure that the work-related activities of subordinates are consistent with and contributing toward the accomplishment of organizational and departmental objectives.

Effective controlling requires the existence of plans, since planning provides the necessary performance standards or objectives. Controlling also requires a clear understanding of where responsibility for deviations from standards lies. Two traditional control techniques are budget and performance audits. An audit involves an examination and verification of records and supporting documents. A budget audit provides information about where the organization is with respect to what was planned or budgeted for, whereas a performance audit might try to determine whether the figures reported are a reflection of actual performance. Although controlling is often thought of in terms of financial criteria, managers must also control production and operations processes, procedures for delivery of services, compliance with company policies, and many other activities within the organization.

The management functions of planning, organizing, leading, and controlling are widely considered to be the best means of describing the manager’s job, as well as the best way to classify accumulated knowledge about the study of management. Although there have been tremendous changes in the environment faced by managers and the tools used by managers to perform their roles, managers still perform these essential functions.

Key Takeaway

The principles of management can be distilled down to four critical functions. These functions are planning, organizing, leading, and controlling. This P-O-L-C framework provides useful guidance into what the ideal job of a manager should look like.

• What are the management functions that comprise the P-O-L-C framework?
• Are there any criticisms of this framework?
• What function does planning serve?
• What function does organizing serve?
• What function does leading serve?
• What function does controlling serve?

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Functions of Management : Planning, Organizing, Staffing, Directing and Controlling

Functions of Management

Planning, Organizing, Staffing, Directing and Controlling

All the managers have to perform certain functions in an organization to get the things moving. But there is never complete agreement among experts on what functions should be included in the management process. Some classify these functions into four types, some into six or seven.

Newman and Summer recognize only four functions, namely:

• Controlling

Henry Fayol identifies five functions of management viz,

• Coordinating

Warren Haynes and Joseph Massie classify management functions into:

• Decision-making
• Communicating

Luther Gullick states seven such functions under the catch word “POSDCORB”

• P – Planning
• O – Organizing
• S – Staffing
• D – Directing
• Co – Coordinating
• R – Reporting
• B – Budgeting

Most Widely Accepted Five Managerial Function given By Koontz O’ Donnell are as follows:

Each of these functions is briefly described below:

1. Planning

Planning is the conscious determination of future course of action. This involves why an action, what an action, how to take an action and when to take an action. Thus, planning includes determination of specific objectives, determining projects and programmes, setting policies and strategies, setting rules and procedures, and preparing budgets.

Planning is a perspective of doing anything. Planning is a pervasive, continuous and never ending activity. This is done not only for the organization as a whole but for every division or department or sub-unit of the organization. it is a function, which is performed by managers at all levels, like top, middle and supervisory levels of management. Plans made by top management of the organizations whole may cover periods along as five or ten years. Also, plans made by middle or first line managers, cover such shorter periods. Such plans may be for the next days or weeks, or months etc. for example for a two-hour meeting to take place in a week.

Planning leads to more effective and faster achievements in any organization and enhances the ability of the organization to adopt to future eventualities.

2. Organizing

organizing is the process of dividing work into convenient tasks or duties, grouping of such duties in the form of positions, grouping of various positions into departments and sections, assigning duties to individual positions, and delegating authority to each position so that the work is carried out as planned. Organizing establishes working relationships among employees. Various activities are assigned to them, authority is granted to them, and they are brought in the relationship of superior and subordinate. This working relationship brings order and discipline in an organization. every employees knows who his superior is and commands his activities and who is to be commanded by him. Thus, this function creates organizational structures, involves delegation of authority, which results in a hierarchy.

Organizing function contributes to the efficiency of the organization by ensuring that all necessary activities will be performed and objectives are achieved.

3.  Staffing

staffing involves manning the various positions created by the organizing process. It includes preparing inventory of personnel available and identifying the gap between manpower required and available, identifying the sources from where people will be selected, selecting people, training and developing them, fixing financial compensation, appraising them periodically etc.

Staffing is a time consuming and complicated process. to make it easier, some processes of staffing are completed by personnel department. In doing so, it facilitates the performance of staffing function by managers in the organization. Every manager is continuously engaged in performing the staffing function. But some elementary functions like keeping inventory of personnel, advertising for jobs, calling candidates etc. are assigned to Personnel department. Similarly managers are required to appraise the performance of their subordinates. Personnel department can facilitate this function by prescribing and supplying the proforma for this appraisal so that there is uniformity in appraisal system thought the organization. Staffing function is too complicated and time-consuming. To make it convenient, some processes

4. Directing

After plans have been made and the organization has been established and staffed, the next step is to direct, influences, guide, supervise and motivate people working in the organization for the accomplishment of the pre-determined objectives. Therefore, this function is also called by various names like, Leading, Directing, Motivating, Actuating and so on. Planning, organizing and staffing are merely preparations of the work, the actual starts when managers start performing the direct functions.

Directing involves three sub-functions. They are as follows:

Communication: The process of passing the information from one person to another

Leadership : The process of guiding and influencing the work of subordinates.

Motivation : Arousing desire in the minds of workers to give their best to the enterprise.

Managers must understand the needs of their subordinates and help in satisfying them and coordinating them with organizational objectives.

5. Controlling

Controlling involves identification of actual results, comparison of actual results with expected results as set by planning process, identification of deviation between the two, if any and taking of corrective action so that actual results match with expected results. Controlling keeps a check on other functions for ensuring successful functioning management. The most notable feature is that it is forward looking. A manager cannot control the past but can avoid mistakes in the future by taking actions in the light of past experience.

All these five functions are performed by managers in small and large organizations, profit and non-profit organizations, manufacturing as well as service industries. Moreover, these functions are performed by every kind of manager and at every level of the hierarchy for instance, by the CEO, Production manager, supervisor, manager of Hockey team, Hospital administrator, Dean of a college etc. Though all managers carry out managerial functions, the time spent for each function may differ. Top-level managers spend more time in planning and organizing, whereas first-level supervisors spend more time in leading.

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The Four Functions of Management (With Examples)

• What Is A Mentor
• Mentor Traits
• Talent Management
• Performance Improvement Plan
• Performance Review Phrases
• Four Functions Of Management
• Difference Between Goals And Objectives
• How To Give Employees Feedback
• What Is An Operational Environment
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• How To Be More Confident At Work
• One-On-One Meeting
• Performance Management
• Professional Development
• The Peter Principle
• Positive Feedback
• Low Hanging Fruit
• Upskill Your Employees
• Motivation Letter

The four functions of management are generally accepted to be planning, organizing, leading, and controlling. Managers need to be able to effectively make use of each of these functions to be successful in leading their direct reports. Properly managing a team leads to higher productivity, better relationships, and trust.

Being an effective manager is complex and requires adapting to situations. If you’re wondering what the four functions of management are, then this article will delve into the four functions and how they help you to manage a team.

Key Takeaways:

Planning requires identifying challenges and formulating objectives accurately.

To lead successfully, create a shared vision, communicate effectively, and lead by example.

Understanding and mastering these four functions will allow you to lead teams that break records and stand out in the workplace.

Using the four functions will create stronger bonds between a manager and the employee and create an overall better work environment.

The four functions of management

Tips for practicing the four functions of management, the four functions of management faq, final thoughts.

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The four functions of management are often laid out as if they’re meant to be in order: plan, organize, lead, and control. Managing a project rarely goes in a straight line, meaning that your management style can get tangled up. While not being rigid is a positive thing, sometimes it’s good to return to basics so you don’t get pulled off course.

Here’s more detail on the four essential managerial tasks: planning, organizing, leading, and controlling.

Planning. Managers must navigate the decision-making process to help their team reach company goals. Effectively mapping out a strategy to tackle a project is a must for a manager, as it breaks the project down into pieces that can be completed by team members.

Effective planning involves a few important aspects:

Identify challenges. Managers need to be aware of the challenges facing their team or business and what potential solutions are available to them.

Forecast future business. To determine the proper solution to each challenge, managers must be able to forecast the future impact of each particular solution on the business.

Formulate objectives and deadlines. Once a solution to a problem is identified, a manager needs to create a game plan to apply it. This involves planning out individual steps and setting appropriate deadlines and time frames .

Reevaluation. Managers need to stay constantly alert to changing situations. If a plan requires adjustments or isn’t working at all, it’s up to managers to identify the proper direction to lead the team.

Maintain efficiency . Throughout the entire planning process, effective managers should also understand how to allocate resources and reduce waste efficiently.

Organizing. To complete projects or meet any other company goals, managers must effectively organize resources. Doing so is often a fine balancing act, as any given team will only have a limited pool of available workers, funding, and other resources to accomplish their objectives.

Creating structure. The main purpose of organizing is to create structure and a set of rules to follow. This includes assigning authority, laying the groundwork for the project, and setting expectations for employees.

Assigning tasks. A vital part of organizing a project is deciding who does what. If a task doesn’t end up being anyone’s responsibility, there’s a good chance it won’t be finished. That’s why assignments are so important: they ensure the project runs smoothly.

Allocating resources. In order to get a project done, you’ll need resources. Budgeting, equipment, technology, and office space are all necessary resources, and personnel need access to them to be able to proceed.

Determining staffing needs. As goals change, your need for staff will also change. Who gets assigned where is an aspect of this, as is whether or not you need to hire new personnel. As times change, different departments become more important, or will need to be created, and staffing needs change as a result.

Leading. Sometimes referred to as motivating or even directing, this is where managers show their leadership skills. Managers give their direct reports goals and objectives, as well as check in to make sure that they’re accomplishing their assigned tasks.

There are generally considered to be four overarching styles of leading:

Directing. If you tend to give your employees detailed assigned tasks and then leave them to it, you’re a director . That means that you give precise instructions, but aren’t very involved in how your subordinates go about completing the task.

Coaching. This is the most hands-on of the four styles. The coaching style involves detailed instructions along with a lot of follow-up and assistance. This is most often needed for new employees who are still learning or an employee that’s taking on a new task or role.

Supporting. Almost the exact opposite of directing, supporting is not giving your employees a lot of direction in their task, but offering yourself to help whenever they need it.

Delegating. This is the most hands-off of any of the leadership styles. Delegating means that you essentially cede part of your authority to a direct report. They are then completely in charge of whatever the task is, and you trust them to make decisions where needed.

Controlling. Despite the negative aspect of the word control, this is just as import an aspect of management as any other. Keeping control of the project and the employees is a requirement, in terms of maintaining authority and keeping control of the project itself.

There are two primary aspects to controlling:

Budgeting. Making alterations to the budget may become necessary as a project progresses. This can be cutting back on certain places, or going over budget in others. Sometimes money needs to be pulled from one place to another, or pieces need to be cut out entirely.

Staffing. If your staff isn’t performing properly — or you don’t have enough — then altering the dynamic is necessary. This can be hiring new people, reassigning employees, or letting them go.

Whether you’re an engineer or marketing manager , the principles behind effective management remain the same.

Follow these tips to maximize your performance:

Planning tips

Effective planners employ strategies to help them accurately identify important tasks and their priority levels and determine appropriate timelines to complete them:

Carefully assess time frames.

Before setting any concrete time frames for a major task, carefully evaluate whether the deadline is appropriate.

Casually committing to unreasonable time frames can cause major problems for a project later down the line.

If you later realize that a certain task requires more time than originally planned, then you may need to delay other dependent tasks as a result.

This translates to a massive waste of resources in multiple areas.

Some employees will be sitting idly, while others will be overworked and lose morale . Your team may suffer the consequences of delayed deadlines, and in extreme cases, entire projects will need to be abandoned.

Perform SWOT analysis. A SWOT analysis provides you with a comprehensive view of your team’s strengths, weaknesses, and potential risks.

Understanding your company’s strengths allows you to choose the right strategies for capitalizing on short-term opportunities.

Identifying weaknesses and risks are critical for improving them and setting your business on the right path for long-term growth.

Organizing tips

Effective resource coordination is a foundational requirement for any business or team’s future success. Disorganized managers result in employees being shuffled around and resource bottlenecks, which are both highly disruptive to any team’s goals.

Define and classify activities. Before assigning a single employee, clearly define the goals and duties associated with each position.

You don’t want to realize later on that although a certain employee’s job title matches the position, their experience doesn’t match what’s required in this specific case.

Many companies also fail to recognize tasks that could be easily automated , which translates to employee hours constantly wasted.

Specify reporting status/breadth of power. Even if a team or company is filled with competent employees, it’s doomed to fail if there isn’t a coherent internal structure.

Specify which roles report to which management positions, and determine the breadth of power that each supervisor holds in different departments.

Don’t be scared to alter your team’s structure. Many initially successful start-ups fail because they weren’t able to adjust to rapid growth.

As long as you’ve closely analyzed the pros and cons, don’t be scared to make necessary drastic changes to your team’s internal structure.

Leading tips

Effective leadership isn’t hard science, but there are key principles that most great leaders put into practice.

Create a shared vision. Align the success of the team with that of the individual.

Although bonuses and financial incentives are great tools, they shouldn’t be the only motivators you employ.

Try to provide training and developmental opportunities for your employees to list on their resumes and cover letters . Challenge them and make projects gratifying experiences to work through.

Establish a positive team culture where employees support each other and celebrate their progress and victories.

Lead by example. Exemplify the qualities that you want your team to have.

If team members see you tackling a difficult project with an obstacle head-on, they’ll feel compelled to put in the same amount of effort and do their part.

If you foster a positive attitude, others will react accordingly and spread that mindset around the team.

Develop strong communication skills . You need to inspire employees so that they become self-motivating.

Being a good listener and using empathy allows you to identify team members’ concerns and questions before they become problems.

Managers are responsible for ensuring that all employees understand the team’s objectives. You shouldn’t just say them and assume that everyone is on board.

Make sure that each employee knows what’s expected of them and adjust your communication methods to match the individual.

With the rise of remote work and team communications moving to platforms such as Slack , you need to adjust and make sure you’re proficient with the necessary tools.

Teams are often diverse in their personalities and backgrounds, meaning that miscommunication and conflicts will inevitably arise. You need to be able to adjudicate and resolve miscommunications in a way that’s perceived as fair by all.

Foster respect and trust. There are many ways to build respect and trust with your fellow team members.

Rather than micromanage employees, monitor their performance.

If a worker is performing poorly, then try and step in and assess how you can help them improve. If an employee is meeting performance standards, then micromanagement and constant supervision will only disrupt their activities.

Team lunches can also be a great way to get to know your coworkers and build a cohesive team dynamic.

Controlling tips

Controlling is all about making sure that objectives are met and understanding how to make appropriate adjustments when issues arise.

Set concrete quality standards.

Set concrete standards so that you can actually determine if a particular goal has been met.

This is especially important to do for project milestones. It’s bad if a team is behind schedule or underperforming, but downright disastrous if they don’t even realize it.

Concrete standards allow you and supervisors under you to identify poor performance and respond accordingly.

Monitor, but don’t micromanage. You need to develop a strategy so that managers in each department can continually monitor workers’ work quality and performance.

However, make sure that your method doesn’t micromanage and disrupt employee activities.

Prepare strategies for improving performance. You want to prepare methods for responding to poor performance and contingencies before they actually occur.

This could come in the form of training programs or resources to help employees . It could also involve alternative business procedures and processes.

What are examples of the four functions of management?

Examples of the four functions of management include planning checkpoints into a project schedule to help your team hit the end deadline, assigning tasks to team members in accordance with their skills, leading by example by assigning yourself a task and completing it well, and readjusting the team’s workload as needed throughout the project.

Planning. Incorporating checkpoints or mini-deadlines into a project to help ensure your team is going to hit their end goal on time is an example of the planning function of management. By slicing up the timeline into smaller, more manageable chunks, your team will (hopefully) be less likely to procrastinate, and you’ll be able to review their work and make adjustments along the way.

In setting up these deadlines, you’ll be identifying challenges that your team may run into along the way and creating solutions to overcome, avoid, or minimize them. You’ll also be reevaluating the project’s performance as it moves along and ensuring it’s as efficient as possible, all of which are important steps in the planning function of management.

Organizing. Organizing is the second function of management, and a large part of this is assigning tasks to your team members according to their abilities. This requires knowing what needs to be done to finish a project and understanding what each of your team members brings to the table as far as strengths, weaknesses, available time, and the assumed time it will take to complete.

Leading. The third function of management is leadership, and one of the most powerful forms of this is leading by example. Don’t just assign a bunch of tasks and then go hide in your office until the project’s done. Show your team that you’re invested in the project by taking on some tasks yourself.

That doesn’t mean micromanaging or taking over someone else’s job, but you can take on appropriate tasks such as ensuring your team has all the resources they need when they need them, setting up clear communication channels so no one is confused or frustrated, and providing support with anything else you can, even if that’s buying everyone lunch during crunch time.

Controlling. Finally, being willing to readjust the workload as the project progresses is an example of the controlling function of management. You can’t just set a project in motion and walk away: You need to keep tabs on it and make adjustments as it progresses. This often means reassigning tasks as some turn out to be more time-consuming, challenging, or unproductive than expected.

How do you describe the type of management activity with each function of management?

You can describe the type of management activity with the planning function of management as looking ahead at the goals your team needs to reach and the challenges they might encounter along the way. Then, you make a plan to get to those goals and conquer those challenges.

For the organizing function of management, you can describe it as taking stock of and managing resources in a way that allows your team to reach their goals. These resources may be physical materials and finances, but they also may be people, which means you need to be able to assess each team member’s strengths and weaknesses and train them and assign them tasks accordingly.

You can describe the leading function of management as directing and motivating your team members so that they can accomplish their goals. This involves communicating with them, motivating them, and providing them with opportunities to grow, as well as standing up for them, getting them the resources they need, and leading by example.

What are the three levels of management and their functions?

The three levels of management are administrative, executive, and supervisory. Their functions are to oversee the company’s direction, policies, and strategies, to ensure departments are functioning in accordance with that direction and those policies and strategies, and to oversee and direct the day-to-day activities of employees, respectively.

Administrative. The administrative level of management is also called the managerial or top level of management, and it comprises companies’ CEOs and boards of directors. These leaders are responsible for the big picture of the company: What its ultimate mission is and the widespread policies and practices that will allow it to get there.

Executive. The executive or middle-level management’s job is to ensure that those policies and practices are successfully put into practice in their respective departments. These managers do more day-to-day than the administrative managers do, but they’re also in charge of the big-picture success of their departments, giving them a unique set of responsibilities.

This level of management is made up of branch managers, department heads, and vice presidents, and it can often include multiple layers of managers.

Supervisory. The third level of management is the supervisory level, also referred to as the operative or lower level of management. These managers work directly with employees to ensure their work is furthering goals and strategies put into place by middle- and upper-level managers.

These managers have the most day-to-day responsibilities such as creating work schedules, assigning tasks, motivating employees, and handling workers’ mistakes or complaints. They’re the ones tasked with making sure the week’s work gets done correctly and on time so that the company can meet its overarching goals.

Why are the four functions of management important?

The four functions of management are important because they’re a way to order management’s duties and ensure that projects are done properly. Managers aren’t required to follow them to the letter, but they do offer guidelines and guardrails in terms of how to manage, as well as a roadmap to being an effective manager.

Developing your leadership skills will lead to career success, but knowing how to make decisions and execute plans is only half the battle. Understanding the key functions of your role will help keep you on track and make you a more effective leader .

For managers looking to improve employee performance and engagement, taking the time to assess your own leadership style and identify areas for improvement will help make you a more effective leader. Whether it’s planning, organizing, leading, or controlling, every manager can take steps toward better adhering to the four functions of management.

Fort Hays State University – The Four Functions of Management: An Essential Guide to Management Principles

Forbes — The Role of the Successful Manager in Four Simple Functions

Harvard Business Review — The Role of a Manager Has to Change in 5 Key Ways

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Kate is a graduate of Brigham Young University, where she completed a degree in Comparative Literature with a minor in Mathematics. She lives in the Pacific Northwest and enjoys hiking and reading.

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